Transcript Strategy for Digital Inclusion: Lessons from Developing World Subhash Bhatnagar

Strategy for Digital Inclusion:
Lessons from Developing World
Subhash Bhatnagar
As part of the Capacity Building Workshop under the Joint Economic Research
Program (JERP)
This session will focus on strategies for digital
inclusion. Traditionally e-government applications
have served urban areas. A variety of
infrastructure and other problems prevent rural
areas from benefiting from access to ICTs.
A number of pilots in in different countries in
which rural areas were impacted in some way
through information technology will be described.
Some examples of large scale use of ICT in rural
India would also be discussed, as these examples
may provide a template for Kazakhstan.
Challenges in scaling up will be identified and a
few approaches that are likely to be successful
would be discussed.
Presentation Outline
• Development goals and Information Society
• Demonstrated potential from pilots in many
countries
• Few examples of large scale use: Bhoomi,
eChaupal, nLogue, Akshaya and milk collection
centers
• Key role for creativity and innovation
• Challenges in scaling up, replication
Information Society and
Development Goals
• More freedom and greater possibility of selfrealization for individuals
• Comparative advantage for countries based on
application of knowledge, NOT cheap labor
• Empowering the poor
• Building scientific and technical capacity in society
• Use of new technologies for democratic decisionmaking, effective governance and lifelong learning
Issue of
Certificates
and
Licenses
Rural Citizen
Where can
ICT help?
Delivery of
health &
educational
services
Access to
Markets
Globally Demonstrated
Opportunities
• Education: World Links, Akshaya (Kerala), Sub Titles on TV
• Health: Webhealthcenter.com,Virtual Delivery Room, Sri
Lanka, MIS in AP,SA, nLogue-Arvind Hospital
• Economic Opportunities: eChaupal, GPS by fisherman,
Kyrgyz Style crafts, Tortas Peru, Tara Haat, Drishtee, NDDB
• E-Government: Bhoomi, eSeva, Drishtee, Bahia (Brazil),
Gyandoot, Lokvani
• Inclusion: Women Information and Communication
Technology (WICT) Kenya, Women’s Net in South Africa
• Advocacy and Empowerment: Modemmujer, women
activists’ e-mail network in Mexico, Association of Female
Mussel Pickers (Esmeraldas), Urban Ecuador
Land Record Computerization
• 20 million records, 6.7 mln farmers, 9000 villages.
VAs issued RTCs and processed mutation in earlier
system
• RTC issue took 3-30 days and a bribe of Rs 1002000. Mutation can take up to 2 years (30 days)
• 180 centers where RTCs are issued on-line for a fee
of Rs 15. Mutation request filed on line
• 5.2 million users, Rs. 80 mln fee goes to dept.
• Investment of Rs 180 million
• Operational expenses: Rs 40 million at 5 million
Further Enhancements
• Linking of Kaveri to Bhoomi: Data sent daily as XML files. Mutations
are initiated automatically on FIFO.
• Integrated mutation process : Earlier new survey number assigned by
survey department to purchaser post mutation. Now 2000 licensed
surveyors issue a pre mutation sketch. Now survey unit of Bhoomi
assigns new survey number.
• Provision of scanned maps as part of Bhoomi
• Crop updation using Tele Centres: Pilot at 50 centres. Web enabled for
citizens to verify records on Internet.
• Setting up of State Data Centre : connected to all taluks by VSAT links.
Centralized management to distribute new application software.
• Issue of land records from 800 Tele Centres : thru a private agency
which can down load land records from State data center with 2
dimensional bar code embedding digital signature for distribution to
the citizens.
2002 Report Card on Bhoomi
A Survey of 240 users/nonusers from 12 kiosks in 2002 :
• Ease of Use: 78% of users who had used both systems found
Bhoomi simpler; 66% used Bhoomi without help Vs 28% in
manual
• Complexity of Procedures: 80% did not have to meet any one
other than at kiosk. In manual, 19% met one officer and 61%
met 2-4 officials
• Errors in documents: Bhoomi 8% Vs manual 64%
• Rectification of errors: Sought correction: 93 % Vs 49%, Timely
response: 50% Vs 4%
• Cost of service: 84% one visit to Bhoomi center at Taluk HQ
• Corruption: 66% paid bribes very often Vs 3% in Bhoomi
• Staff behavior: Bhoomi Good (84%) Vs manual Average (63%)
2006 Report Card on Bhoomi
Survey of 240 users of Bhoomi and manual system in 2006 has
revealed:
• 0.5 trips saved per transaction, 34 minutes of waiting time saved
per transaction.
• 19% fewer people paid bribes, Rs 66 million/ year bribes saved
• 80 % prefer BHOOMI over the manual system
• Improvement of 1.6 (rating of manual system 2.86 and rating of
Bhoomi 4.46) on a 5 point scale over the manual system in a
composite score where each project was rated on 16 attributes of
a service delivery system.
• Improvement of 0.85 on a 5 point scale over the manual system
in the service quality score.
ITC’s eChoupal
eChoupal Infrastructure and
Services
• Internet kiosk in the house of a trained farmer within
walking distance of target farmers
• Warehousing hub managed by the erstwhile middleman,
within tractorable distance of target farmers
• Customised knowledge on farm and risk management
• Better supply chain for ITC for farm inputs --lower
transaction costs, better value through traceability
• Relevant real-time information results in higher income
– Commodity prices, local weather, news, customized
knowledge despite heterogeneity, reduced transaction
costs
• Direct marketing channel for farm produce
– Screened for quality, demand aggregation for competitive
prices and efficient logistics
eChoupal Scale, Scope and Plans
• 3,500 eChoupals in 5 states of India covering 21,000
villages, servicing 2.0 million farmers, sourcing oilseeds,
grains, coffee, aquaculture
• Marketing a variety of goods and services (agri-inputs,
consumer goods, insurance, market research)
• 2003-04 transactions US$ 100 million
• Plan for 20,000 Choupals in 15 states covering 100,000
villages, servicing 25 million farmers by 2010 with projected
transactions of US$ 2.5 billion
• Higher incomes through-better yields and prices
• Power of scale to the small farmer
nLogue Example: Help to Farmers
• Spray recommended by
agricultural college
• Saving of Rs 140,000
($3000) for the farmers
• Cost of information Rs 20
($0.42)
Before
treatment
After
treatment
nLogue Example -Tele-medicine
Computerized Milk Collection
Centers in India
Akshaya Telecentre Project, Kerala
•
•
•
•
630 centres by early 2003
e-literacy – subsidized by village council
Strong grassroots campaigning
500,000 people trained by Dec 2003
Indicators of Success
• 100% family e-literacy achieved
• Provided livelihood to entrepreneurs
• Project accepted by local community as ‘legitimate
Technology that
makes rural access
inexpensive and
robust
Applications that
draw a large
clientele that pays
for the service,
ensuring economic
viability of the kiosk
Bridging the
Digital Divide
Content that
empowers rural
citizens and
enables formation
of communities
NGOs and grass
root organizations
that catalyze and
mange the
community
building process
Innovations and Creativity:
Key to Success
• Making a market despite many missing links
• Creative use of technology in places or for a
purpose not originally intended.
• Organizational design- coming together of partners
with specific value proposition, incentives and rules
to cooperate.
• Combining emerging and traditional technologies to
overcome constraints
• Adapting business models to local contexts
• Role of network orchestrators
Enablers of Innovation in ICT Use
• Political will
• Technology infrastructure
Technology
• Funding and enabling
policy environment
Innovation • Human capacity
People
Process • Partnerships
• Creativity,
Funds
entrepreneurship and
management
• Awareness in citizens
Challenges in Replication and
Scale Up
• Poor infrastructure in rural areas--high installation and
maintenance costs
• Entrepreneurial capacity of the rural community-great
acumen, but needs plenty of training
• Management capability to execute complex business
models and to manage scale
• Understanding economic value chain in rural society to
figure out the value addition of ICT
• A large number of pilots, most are economically
unviable. Limited revenue generating potential
• Reluctant donors-lack of evidence of macro impact and
experience of failed projects
Successful Scaling Up Requires:
• Success is likely in organisations with financial resources,
leadership, strong project management and ability to discover
valued services. Three models have emerged:
– Large private/public/cooperative sector companies
operating in rural markets may be able to derive sufficient
value by improving business processes. to make such
centers viable and scalable.
– Government services that are valuable can charge a user
fee for electronic delivery through privately owned
telecenters.
– Intermediary organizations partner with providers of
valued service as well as rural entrepreneurs who create
access points to orchestrate the operations of a large
network of kiosks.
Role of Government/Private
Sector/NGOs and Donors
Size of Villages
Big
High
Economic
potential
Low
Small
Survey of 2000 Respondents
Citizens Favor More e-Government
The Knowledge Society
Mean
SD
E-gov makes an impact on the knowledge of society
4.03
0.73
E-gov makes an impact on the literacy level of society
3.97
0.82
Enhances citizens convenience in availing govennmet services
4.14
0.73
Reduces corruption in delivery of public services
3.98
0.89
Increases accountability & transparency of government
4.03
0.79
E-gov has helped to improve the image of government
4.12
0.80
Government should make more investment on E-gov
4.12
0.82
More govt department/ public agencies should be computerised
4.13
0.83
Computerization of government departments is a waste of resources
3.85
0.96
Money spent in e-gov should be used for other government activities
2.96
1.17
Building schools, roads, dispensaries is more useful than E-gov projects
3.22
1.14
E-gov services puts the poor at disadvantage
3.73
0.92
E-gov services benefits only the rich and influential
3.74
0.98
E-gov services benefits only the urban people
3.50
1.01
Rural citizens benefit greatly from e-Government services
3.30
1.20
Rural and urban poverty level have changed
3.22
1.08
Improvement in Governance
More investment in e-Government
Investments in Development Schemes versus e-Government
Digital Inclusion
Enabling Policy Framework
•
•
•
•
•
•
•
Policies to encourage competition in telecom sector
Incentives to enhance rural telecom access
Promote appropriate mix of ICTs
Right to information
Promote eGovernment
Scale up successful rural access projects
Involve NGOs and grass root organizations in
creation and diffusion
• Protection of IP: Balance between public and
private domain.