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ICT Use in Rural India: Innovations Bridge the Digital
Chasm
Subhash BhatnagareGovernment Advisor, World Bank
Indian Institute of Management, [email protected]
Presentation Outline
ICT and development- India’s prioritiesDemonstrated potential from pilotsKey role for creativity and innovationChallenges in scaling up, replicationA strategy for sustainable scale up
ICT and Development:Indian Experience
The success of India’s software and services sectorExports of $15 billion, employing a million people
Deploying ICTs in the enterprise sector for internal efficiency, external relationships and competitivenesseGovernment- enhancing transparency and efficiency in delivery of services to all clients
A five year $ 4 billion program to implement 22 projects ICT for development, empowerment -the weakest link
Greater possibility of realization of economic potential for the poorUse of new technologies for democratic decision-making, effective governance and lifelong learning
Key Challenge is to Help the PoorProvide hope for a better future for all sections of the society and create TRUST in Government
Uneven access to ICTs across and within countries for rural/urban; gender;economic strata –Digital Divide
Ensuring that ICT expansion does not create further inequality like in the USA
1979 income of richest 20% = 9 * income of poorest 20%
1997 income of richest 20% = 15 * income of poorest 20%
Lack of basic literacy and ICT literacyLanguage and cultural barriers in integrating new technologies within work processes and life experiences
Development info
projects, programs,
schemes & feedback
Procurement
of ProduceSupply of
inputs
Supply of
consumer
produce &
services
Knowledge & info
useful for
economic activities
Entertainment &
info for social needs
Issue of Certificates
and Licenses
Delivery of health &
educational services
Education, training to
enhance employm
ent &
economic o
pportunity
Access to MarketsRural Citizen
Globally Demonstrated Opportunities
Education: World Links, Akshaya (Kerala), Sub Titles on TVHealth: Webhealthcenter.com,Virtual Delivery Room, Association of Uganda Women Medical Doctors, Sri Lanka, MIS in AP,SA, nLogue-Arvind HospitalEconomic Opportunities: eChaupal, GPS by fisherman, Kyrgyz Style crafts, Tortas Peru, Tara HaatE-Government: Bhoomi, eSeva, Drishtee, Bahia (Brazil)Inclusion:Women Information and Communication Technology (WICT) in Kenya, Women’sNet in South Africa Advocacy and Empowerment:Modemmujer, women activists’ e-mail network in Mexico, Santa Rosa Association of Female Mussel Pickers (Esmeraldas), Urban Ecuador
ITC’s eChoupal
, February 26-27, 2004
eChoupal Infrastructure and ServicesInternet kiosk in the house of a trained farmer (Sanchalak)within walking distance of target farmersWarehousing hub managed by the erstwhile middleman, within tractorable distance of target farmersCustomised knowledge on farm and risk managementBetter supply chain for ITC for farm inputs --lower transaction costs, better value through traceabilityRelevant real-time information results in higher income
Commodity prices, local weather, news, customized knowledge despite heterogeneity, reduced transaction costs
Direct marketing channel for farm produceScreened 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 a range of agri commodities (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 pricesPower of scale to the small farmer
nLogue Example: Ulagapitchampatti
Spray recommended by agricultural collegeSaving of Rs 140,000 ($3000) for the farmersCost of information Rs 20 ($0.42)
Before treatment
After treatment
nLogue Example-Tele-medicine
Bridging the Digital Divide
NGOs and grass root organizations that catalyze and mange the community building process
Applications that draw a large clientele that pays for the service, ensuring economic viability of the kiosk
Content that empowers rural citizens and enables formation of communities
Technology that makes rural access inexpensive and robust
Innovations and Creativity: Key to Success
Making a market despite many missing linksCreative 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 constraintsAdapting business models to local contextsRole of network orhestrators
Challenges in Replication and Scale UpPoor telecom access and infrastructure in rural areas--high installation and maintenance costsEntrepreneurial capacity of the rural community-great acumen, but needs plenty of training Management capability to execute complex business models and to manage scaleUnderstanding the agricultural value chain and rural society to figure out the value addition of Information TechnologyA large number of pilots, most are economically unviable. Limited revenue generating potentialReluctant 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 services that are valued. 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.
Successful experiments begin with a few core services where value can be monetized. Over time other services are included toadd value.
Enablers of Innovation in ICT Use
Political will Technology infrastructureFunding and enabling policy environmentHuman capacityPartnershipsCreativity, entrepreneurship and managementAwareness in citizens
Technology
InnovationProcessPeople
Funds
Role of Government/Private Sector/NGOs and Donors
Size of VillagesBig Small
High
Economic potential
Low
Funding Strategies for Rural ICT Projects
Innovation requiresInitiativeRisk takingTolerance for failure
Therefore need for a venture fund to support projects in rural ICT
Social e-Applications Venture Rollout Fund at a Glance
Social e-Applications Rollout Venture Fund at a Glance
Thank you
