Abstract There is a strong case for free software (also known as open source or libre software) being deployed widely in developing countries. This paper describes three reasons in particular: free software is a skills enabling platform; it is far cheaper; and it is more adaptable to local needs. The free software development community provides an environment of intensive interactive skills development at little explicit cost, which is particularly useful for local development of skills, especially in economically disadvantaged regions. Meanwhile, the controversy over total costs of ownership (TCO) of free vs. proprietary software is not applicable to developing countries and other regions with low labour costs, where the TCO advantage lies with free software, and the share of licence fees in TCO is much higher than in (richer) high labour cost countries. The note concludes with a table comparing license fees for proprietary software against GDP per capita for 176 countries. Contents Free software communities — a platform for skills development Informal apprenticeships — Employers benefit, but don't pay the cost But do we all want to program? Building local ICT competencies Total cost of ownership and low labour costs Conclusion http://www.firstmonday.org/issues/issue8_12/ghosh/ Editorial history Paper received 25 November 2003; accepted 28 November 2003; revised 7 May 2004. Contents Index Copyright (c)2003, First Monday Copyright (c)2003, Rishab Aiyer Ghosh Licence fees and GDP per capita: The case for open source in developing countries by Rishab Aiyer Ghosh First Monday, volume 8, number 12 (December 2003), URL: http://firstmonday.org/issues/issue8_12/ghosh/index.html -- Frederick Noronha Journalist http://fn.goa-india.org E: fred@xxxxxxxxxxxxxxx or fredericknoronha@xxxxxxxxx P: +91-832-2409490 M: +91-9970157402 Yahoo: fredericknoronha Skype: fredericknoronha GTalk: fredericknoronha 784, Sonarbhat, Near Lourdes Convent, Saligao 403511 Goa India