Source: UNDP (1999), Human Development Report 1999, p. 30.

Transport and Communications Costs Indexes, 1920-1990

Transport and communications costs have considerably declined during the 20th century, notably with technological improvements and through the application of economies of scale. In 1960, maritime transport costs were a third of their 1920 level. Air transportation costs have followed a similar trend, but over a much shorter time lapse. Air transportation boomed after the WWII with the application of significant technological improvements (such as the jet engine) and the design a better aircrafts. Telecommunications are however the sector where costs have decreased the most. In 1990, an international phone call was on average at 1 to 5% of its 1940 cost. With fiber optic cables and decreased costs for satellite use, telecommunications are accessible throughout the world. The current mass diffusion of cell phones is likely to further decrease costs. Another significant wave innovation involves information technologies, as indicated by the excessively rapid decrease of computer costs since their initial introduction (mainframes) in the 1960s.