Transcript Presentation in Mumbai - India

ICT Applications for Rural Development:
Examples, Enablers, Success Factors
Natasha Beschorner
June 5, 2007
1
Outline
 How can ICT contribute to rural
economic development?
 Examples, Cases
 Critical Success Factors and enabling
environment
 Key questions: roles of government,
development partners
2
How can ICT contribute to rural economic development?
 Provides access to information benefiting
rural producers and supply chains
• e.g. Market price information, weather, supply chain
information (e.g. transport and fuel availability), news,
 Facilitates access to services
• Financial services, access to credit, funds transfer, savings
• Land registration, land use planning/administration
 Facilitates access to markets
• E-commerce-direct to customer
• E-commerce-portals, virtual communities
 Facilitates access to other public services for rural
populations (health, education, government)
3
ICT Tools
•
•
•
•
Mobile phone (voice, text/SMS)
Internet via PC
Internet via mobile phone/PDA
Broadcast media (now via TV, radio; in
medium-term via mobile phone and
Internet as a result of convergence)
4
M-Banking
 Transfer of credit (airtime) via mobile
phone/SMS
 Deposits, savings, loans, payroll, remittance
payments, purchases (in participating retail
outles), bill payments
 Partnership between mobile operator,
financial institution; financial regulator
5
M-Banking: Examples 1
 G-cash, SmartMoney
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Globe, Smart
(Philippines)
Wizzit-MTN (S.
Africa)
Celpay (Zambia)
Safaricom M-Pesa
(Kenya)
NTT DoCoMo (Japan)
6
M-Banking: potential benefits
 To consumers:
• Reduces travel time and costs (to travel to Bank branch). In Papua New
Guinea, teachers may travel 2-3 days by rough road or boat to
withdraw salaries
• Reduced transaction costs for remittances (1% cash-out for G-cash,
compared to higher rates from Western Union)
• Reduced opportunities for fraud, counterfeit and theft by providing a
secure electronic mode for transferring funds (as opposed to, for
example, travelling long distances to transfer cash);
 To service providers:
• Reduced direct costs for delivering savings and credit products;
• Reduced errors and increased transparency in the transfer and
recording of loan disbursements and payments and savings deposits;
• Easier record keeping on each client through computerization of
transactions through mobile phones, thus making it easier for financial
institutions to tailor products and services for segments within their
large pool of small customers.
7
M-Banking: Key Enablers
 Telecom infrastructure (mobile): reliable,
affordable, extensive penetration in rural
areas, and good network quality
• Linked to overall telecoms market environment
(competition, effective regulation)
 Technology: bandwidth, security issues
 Literacy (“SMS culture”)
 Financial sector regulation: consumer
protection, risk management, anti moneylaundering
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Market Price Information
 Formal or informal transmission of price and other




information between markets and producers
Production and dissemination of market intelligence
Can be top-down (govt, private sector) or bottom-up
(private sector, individual)
Reduces price instability and intermediation costs
for producers
Expands market opportunities
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Examples—Market Information 1
 Manobi (Senegal,
Uganda, S. Africa).
Producer price
information via
SMS. Recently also
emergency rescue
capability (using
GPS).
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Examples: Market Information-2
 Sri Lanka: Govi Gnana (Farmer Knowledge)-







developed by govt
Philippines: B2B Price Now (Internet)
Ghana TradeNet (Internet)
Warana (India)
Senegal: Manobi (mobile phone, PDA)
Bangladesh: Grameen Village Phone (mobile)
India: eChoupal (Internet)
India: Kerala fishermen (mobile phone)
11
Examples—online extension service
Technical Assistance/Extension Service through Videoconferencing
Because India is a land of many languages, a purely text based system of advice online (as Chile’s
Redsercotec) would be impractical. Instead, n-logue’s provision of technical advice using ICTs uses a low
bandwidth videoconferencing application developed by IIT Madras and commercialized by Oops (www.oopsindia.com/), as well as through the exchange of highly compacted videoclips.
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Market Price Information: Key Enablers
 Affordable, reliable telecoms
infrastructure:
• Mobile telephony
• Internet (via PC or mobile/GPRS, 3G)
 Content management: information
quality, relevance, timely updates
 HR: capacity to deliver services
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Examples: Land Information Systems

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
Cadastral information
Land use planning, GIS
Environmental management
Tax collection
Disaster management
Property registration
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Examples: Land Information Systems

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India: Bhoomi land records computerization
Guatemala land administration
Panama: digital registry
India, Gyandoot
Thailand: computerised land regisation
Vietnam: Bac Ninh LIS
Philippines: LAMP, LARES
15
Land Information: Key Enablers
 Infrastructure: affordable, reliable,
access to Internet
• Rural broadband
 Institutional and legal reforms: business process change, incentives
 Institutional coordination (registration,
land valuation, mapping, taxation)
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Key Questions
 How well connected are rural populations, and what
policy changes are needed to improve rural connectivity?
 How can high-value information applications be
mobilized and scaled-up to improve rural productivity,
livelihoods and living standards ?
 How much capacity building is required for rural areas to
create a society of producers of local knowledge and of
users of that knowledge?
 How can government efforts to promote rural
development – in various forms – and to develop rural
infrastructure be more closely integrated, conceptually,
institutionally and in practice?
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Rural ICT Applications: CSFs
 Low-cost, reliable communications infrastructure,
available in rural areas:
• Mobile phone networks
• Broadband
• Private investment
 Supportive and effective legal/regulatory framework
• Competitive telecoms markets
• Effective regulation: consumer protection, tariffs, spectrum,
interconnection
• Universal Service/Access policies (stimulating rural access)
 ICT skills:
• information systems management, content development, training
at village level (users, operators)
 Broader institutional development
18
Telecoms Infrastructure Trends
 Rapidly increasing access to mobile,
particularly in urban areas, but increasingly
in rural as urban markets saturate
 Lower costs of coverage
 New technologies and convergence (mobile
Internet, GPRS, 3G, IPTV)
 Next wave: rural broadband (investment in
fibre-optic backbones)
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Access to Telecommunications
Basic ICT Indicators in Selected EAP Countries, 2004, 2005
IDA Countries
Lower
Upper
Middl
e
Inco
me
Lao PDR
Cambodia
PNG
Vietnam
Middl
e
Inco
me
Indonesia
Philippines
China
Thailand
Adult literacy (%)
68.7
73.6
57.3
90.3
90.4
92.6
90.9
92.6
Telephones/100
1.27
0.26
1.21
18.81
5.73
4.16
26.63
10.95
Teledensity in largest city
27867
21000
..
..
2613600
2811144
8895000
3211195
Mobile phones/100
10.77
56.26
0.69
11.39
21.06
39.5
29.9
42.98
PCs/100
1.69
0.26
6.36
1.26
1.36
4.46
4.08
5.83
Internet users/100
0.42
0.28
2.95
12.72
7.18
5.32
8.44
11.03
18
30
..
1.68
10.77
9.81
..
..
..
..
..
13.8
3.1
6.1
5.1
3.9
379
339
607
502
904
1088
1323
2356
Internet cost/month (US$)
ICT as % GDP
GDP per capita (US$)
Source: International Telecommunication Union, World Bank
20
Selected Indicators, East Asia
% Illiteracy
> 15 yrs
Population
Peak
GNI per
capita
(2005)
Cellular
subscribers
per 100
people (2005)
%
Prepaid
(2005)
Mobile Cellular tariffs US$
(August 2006)
Per minute local call
Total
(millions
2006)
%
<= 19
%
Rur
al
Male
Cambodia
14.4
59.8
80
15
36
77.7
380
7.5
57.9
0.12
0.11
0.03
Indonesia
225.5
47.2
52
6
13
52.4
1,280
21.1
92.6
0.11
0.09
0.01
Lao P.D.R.
6.1
62.2
79
23
39
74.1
440
10.8
97.2
0.17
0.14
0.04
Malaysia
25.8
51.6
33
9
15
9.3
4,960
75.2
85.0
0.10
0.10
0.01
Myanmar
51.0
n.d.
69
6
14
n.d.
n.d.
0.3
n.d.
n.d.
n.d.
n.d.
Philippines
84.5
54.6
37
7
7
47.5
1,300
41.3
92.0
0.13
0.13
0.02
Singapore
4.4
28.9
0
3
11
n.d.
27,490
100.8
36.7
0.14
0.14
0.03
Thailand
64.8
37.8
68
5
9
25.1
2,750
43.0
51.8
0.05
0.05
0.08
TimorLeste
1.0
n.d.
74
n.d.
n.d.
n.d.
750
n.d.
n.d.
n.d.
n.d.
n.d.
Viet Nam
85.3
48.3
74
6
13
n.d.
629
11.4
80.5
0.15
0.15
0.02
Female
Peak
off-peak
SMS
21
Telecoms access in the Pacific
(% of population)
Fixed
Mobile
Internet*
(mostly dial-up; some
broadband wireless
or WiFi “in cities;
limited DSL)
PNG
Timor-Leste
1.0
<0.5
2.0
0.5
2.0
<0.5
Solomon Is.
Samoa
Fiji
1.0
10.5
13.3
1.3
35.0
28.0
<0.5
4.0
8.0
3.2
8.0
3.5
Vanuatu
22
The Access Problem
Household penetration (per 100)
120
100
80
Capital / High-income users
60
Capital / High-income users
Other urban areas / middle-income users
40
Country
20
Country
Other urban areas / middle-income users
Rural areas / Low-income users
Rural areas / Low-income users
0
0
800
2000
4000
8500
15000
30000
Per-capita GDP (PPP)
23
Addressing the supply gap
 Policies and programs to facilitate
access to telecommunications in rural
areas
• e.g. universal service policies
• Universal service funds
• Broadband
 PPPs for investment
 PPPs for service provision
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Extending Access to Rural Areas
 Need for increased, mainly private, investment in
communications infrastructure and services
 Market liberalization: phase out monopolies and introduce
competition, especially in mobile, Internet
 Effective and transparent regulation, in particular greater
balance between capacity of operators (high) and governments
(low)
•
•
•
Fair prices
Competitive behaviour
Good governance
 Rural access: ensuring service to commercially unviable areas
(many of these)
 Reducing costs of international bandwidth (regional
infrastructure-sharing? Satellite vs cable?)
25
ICT Skills Issues
 ICT-skills needs:
• Curriculum relevance
• Academic-industry partnerships
 User skills:
• Content development
• Maintenance
• Daily use
26
M-Banking: Role of Govt
 Stimulate greater competition in both
telecommunications and banking services.
• Stimulate greater participation from private capital.
 Support an expansion in rural telephony through
smart subsidies to help private entrepreneurs
develop rural infrastructure.
 Develop a suitable financial regulatory framework
for m-banking services.
• Central Bank authorities need to develop a framework that
protects consumers from undue risks, fraud or crime and ensures
that service providers adopt adequate risk management measures;
while at the same time facilitates and encourages innovation in
financial service development, in particular to better serve rural
communities.
27
M-Banking: Role of Development Partners
 Equity investment (IFC)
 Encourage involvement of local operators and
commercial banks in the development of their own mbanking service platforms
 Advise financial regulators on regulatory
requirements
 TA, training, workshops and seed financing and
sponsorship of partnerships between
telecommunications operators, rural banks and central
bank officials, can help extend the mobile financial
services frontier to rural areas
28
Market Info Services-role of govt
 Promoting low cost access to mobile phones appear
to be the best way to empower farmers with the
ability to gather market price information from
trusted sources that are relevant to their particular
needs and to reduce intermediation costs and price
variability.
 There is a role for both Government and donors in
helping to develop rural telephony, as well as
increasing Internet connectivity to expand farmer
access to opportunities to establish new contacts
through email and search for market intelligence
information in the Web.
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Market Info Services: role of devel. partners
 Integrating infrastructure and applications development
support.e.g. Guatemala: Rural Economic Development
Program (World Bank 2006) supports telecommunications
development (50% of total funding), together with
agricultural marketing and trade (25%), general
transportation (25%); and general agriculture, fishing and
forestry (5%).
 Indonesia’s Farmers’ empowerment through agricultural
technology and information project is an example that
combines support to the country’s extension service with the
delivery, via the Internet and mobile phones, of market
intelligence and technical services, and is expected to foster
greater interaction between extension agents, researchers,
farmers and traders.
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Land: role of govt and development partners
 A long term program made up of adaptable program loans – as in
Thailand, Lao P.D.R., the Philippines, Honduras and El Salvador could help expand land administration services and gradually develop
land information systems.
 Avoid focusing too much on sophisticated portals that provide online
land administration services. Many such portals have been set up only
after a long institutional development struggle, the reengineering of
procedures and significant legislative changes.
 To increase understanding among decision-makers and project
planners, studies, workshops and exchanges of staff on land
information systems approaches, specialized land information systems
topics and Internet service requirements could be very productive.
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Multiple responses at different levels
User
Domain
Operator &
Service
Provider
Domains
Vendors &
retailers
Access Devices
Service &
Content
providers
Content, Services, Applications,
Customer Care
Demand aggregation,
e-government programs,
e-gov outsourcing
Retail
operators
Access Networks – Last Mile
Universal Service Funds
and Output-Based Aid
Broadband Backbone Networks
PPPs and Open Access
Model, e.g. Andra
Pradesh
Carrier’s
carrier
Passive
Infrastructure
Provider
Domain
Passive
Infrastructure
Providers (e.g.
Wireless Tower
Companies)
Ducts, Masts, Poles,
Co-location Sites,
Dark Fibre
Telecenters, Micro-finance
schemes, e.g. Grameen
Open Access and OBA
being explored
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Further Issues for Discussion
 Roles of public, private sectors,
development partners
 More holistic view of “rural ICT”:
infrastructure, HR, value-added
applications.
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