Strategy for Digital Inclusion: Lessons from Developing World

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Strategy for Digital Inclusion Lessons from
Developing World

• Subhash Bhatnagar

As part of the Capacity Building Workshop under
the Joint Economic Research Program (JERP)
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• 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.

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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

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Information Society and Development Goals

• More freedom and greater possibility of
  self-realization 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
  decision-making, effective governance and
  lifelong learning

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Issue of Certificates and Licenses
Supply of inputs
Procurement of Produce
Supply of consumer produce services
Development info projects, programs, schemes
feedback
Rural Citizen Where can ICT help?
Access to Markets
Knowledge info useful for economic activities
Education, training to enhance employment
economic opportunity
Entertainment info for social needs
Delivery of health educational services
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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, Womens Net in South
  Africa
• Advocacy and Empowerment Modemmujer, women
  activists e-mail network in Mexico, Association
  of Female Mussel Pickers (Esmeraldas), Urban
  Ecuador

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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
  100-2000. 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

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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.

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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)

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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.

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ITCs eChoupal
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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

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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

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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
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nLogue Example -Tele-medicine
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Computerized Milk Collection Centers in India
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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

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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
NGOs and grass root organizations that catalyze
and mange the community building process
Bridging the Digital Divide
Content that empowers rural citizens and enables
formation of communities
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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

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Enablers of Innovation in ICT Use

• Political will
• Technology infrastructure
• Funding and enabling policy environment
• Human capacity
• Partnerships
• Creativity, entrepreneurship and management
• Awareness in citizens

Technology
Innovation Process
People
Funds
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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

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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.

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Role of Government/Private Sector/NGOs and Donors
Size of Villages
Big
Small
High
Economic potential
Low
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Survey of 2000 RespondentsCitizens 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
Improvement in Governance    
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
More investment in e-Government    
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
Investments in Development Schemes versus e-Government    
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
Digital Inclusion    
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
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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.