Concept Paper on Digital Bihar Revolution

The last three decade have been a transformational period for the global economy, riding atechnological and digital revolution that is reshaping people’s needs and redefining society in all itsdimensions – social and economic. Many people like to think that humankind is at the dawn of a newera, that of an age of enlightened communication. Visions abound on how breakthroughs in digitaltechnology will change the way we live, work, do business, and interact. It is widely believed that the socalled information age will bring radical change and improvement, and countries all over the world arebusy with constructing the necessary infrastructure, the "information superhighways," in order to meetthe challenges of the information society of the twenty-first century.

Although the innovations in digital technology are impressive, we must not forget that technology initself is not a determinant of change, only a facilitator. As with any other technology, it is the socialcontext within which these new technologies are introduced and, more importantly, implemented, thatdetermines their usage and impact. Accordingly, we are not hopelessly caught in a wave of historicalchange; we are the ones bringing it about. The information revolution has much less to do with bits andbytes, than it has to do with the realities and aspirations of everyday people.

Given the tools available, it is up to us to determine what type of change will take place and whom it willaffect. Are we actually building an all-inclusive "global information society" or a stratified world ofinformation-rich and information-poor? Who will have access to the information society, and who willbe left behind? Will only the young, wealthy, educated, computer proficient, and English speakingqualify as members of this new society, and if so, where does this leave the remaining majority of theworld population? How can information technology address the many problems the world faces today, aworld characterized by widening gaps between rich and poor, inequality, war, and social disruption? Arewe actually moving towards a new Renaissance era of enlightenment, or is it likely that we will continueon our current path of marginalization and social disintegration. Are existing disparities being redressed,or are they just reinforced, this time with the addition of information haves and have-nots?

Globalization and information technology are two powerful forces that have transformed society. Unlikethe agrarian and industrial age when transfer of knowledge and adoption of new technology occurred ata slow pace, the current era of knowledge has not only blurred geographical and communicationboundaries, but has also speeded up the adoption of new knowledge, technologies and innovationsacross nations. It has democratized access to information which is now available to anyone who hasaccess to a mobile phone. Today, a country is not distinguished purely by its level of development butalso by its ability to be adaptable to new emerging technological trends.

Information and communication technology (ICT) is like an accelerator for economics, with thegovernment at the helm expected to steer the country on a high growth trajectory. At the same time,while technology has provided advantages in terms of enhancing productivity and improving access toinformation, it has also created a deep divide between economies that are knowledge-ready and thosethat are not. Countries that adopt ICT are increasingly capable of offering better economicopportunities, increasing prosperity and improving the socio-political life of their citizens.

In this new age, the expectations of citizens from the government have increased in terms oftransparency, quicker delivery of public services and cutting red tape to support entrepreneurship andgrowth in the economy.

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It is widely believed that the digital revolution holds many promises for developing countries, allowingthem to leapfrog through stages of development and catch up with more developed countries. The ideaof joining the global information society is pursued vigorously worldwide, not the least by commercialinterests. Appropriate measures to be taken are increasingly on the political agendas at international,regional, and national levels and more international development efforts aim at introducing newinformation technologies in less-developed parts of the world.

The underlying technological determinism of the above-noted assumptions is, however, highlyquestionable, and calls for closer scrutiny and analysis. When these technologies are put into thecurrent social context, the picture immediately becomes far more complex and "technological fixes ofwhatever nature are nothing but a drop of water in the sea of reality." After all, it was not long ago thatthe Green Revolution was heralded as the solution to world hunger, yet the implementation of thesenew technologies exacerbated the plight of many of the world's rural poor, largely due to a lack ofpolitical will and the contradictory interests of economic forces. In the application of today’s newtechnologies the stakes are even higher, and we must remain on our guard at all times, if we are toavoid falling into the same trap.

When taking a closer look at the actual reality of the Third World, one is impelled to be cautious aboutthe possibilities of radical improvement offered by new information technologies. The many obstaclesfaced indicate that the investments necessary to catch up with rapidly accelerating technologicalinnovations are enormous. In light of the vast problems developing countries already struggle with, newpriorities and strategies would be needed. If the goal is to serve the population at large, such prioritiesand strategies must be based on realistic assessments and well-thought-out considerations of existingneeds and resources.

In most developing countries, telecommunications infrastructure has long been low on the agenda, andother development goals have received higher priority. As a result, the telecommunicationsinfrastructure is often seriously underdeveloped, and the cost of using it is generally more expensive indeveloping countries than in developed ones. The correlation between wealth and telephone lines isexemplified by the average number of telephone lines per 100 inhabitants being a mere 1.5 in theworld's poorest countries, as opposed to 52 in the richest ones (ITU, 1995). In addition to a lack oftelephone lines, many developing countries also lack sufficient electricity supplies, especially in rural andremote areas. Unless these problems of basic infrastructure can solved in an imaginative andsustainable way, there is little point in maintaining any illusion about the widespread application of theInternet in developing countries.

Another important issue to be considered is the need for human resource development. Since almosthalf the adult population in the least-developed countries are illiterate, this will take a great deal oftime, effort, and above all commitment on behalf of governments and people concerned. Developingcountries will need to train their populations in usage and maintenance, as well as development,because, unless the South can develop its own necessary expertise, the existing dependency on theNorth will continue. Indeed, if the South is to be an active participant in the global information society,technology transfer will need to focus on much more than the South buying products, expertise, andservicing from the North. The technical know-how itself must be obtained through information sharing.

The very nature of the Internet offers many venues for the improvement of people's lives. However, it isimportant to assess what those needs are if they are to be accurately addressed. Disadvantaged peoplestruggle with basic day-to-day problems of poor health, the lack of education, and the difficulty ofmaking ends meet. According to the UNDP Human Development Report of 1996, only 50 percent of thepopulation in the least developed countries have access to health services, and only 38 percent haveaccess to safe water. Indeed, an estimated 1.3 billion people live in absolute poverty, with an income of

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only one U.S. dollar per day, and the number keeps growing. These people are not very likely to havePCs and Internet connection, and even so--they cannot eat information, nor does it keep them warm.How can the Internet reach out to these people and help them in their daily struggle?

Though how these figures has changed in the dynamic changing world after 18 years but how long andtill what extent is questionable!

If the Internet is to become a tool for serving the poor, access by weaker social groups must be assured.This does not necessarily mean individual access. Lack of technical know-how and equipment arefundamental obstacles to Internet access in poor countries and will continue to be so in the foreseeablefuture. Most people in the Third World will never be able to afford their own PCs, and many countrieswill not be able to invest in the infrastructure or training required. Although the idea of individualconnectivity should be abandoned as an unrealistic goal, alternatives should be explored so as not toreinforce an elite group of information haves.

Therefore, rather than focusing on individual access, we should explore the more socially beneficialcommunity-based access, which is itself an ambitious goal. In fact, in Europe this is how wider access tothe Internet is pursued, and a number of countries are establishing public access points at communitycenters and public libraries. Similar initiatives are taking place in a number of developing countriesthrough, for example, local post offices or commercially run cybercafés. It is also noteworthy thatinnovative approaches combine modern information technologies with more traditional means ofsharing information. In some cases, e-mail messages are printed out and distributed to the recipients,the Internet thus reaching people who may never even have seen a computer.

Bihar’s development potential is immense, with opportunities in several areas. Communication andaccess to knowledge have grown significantly over the last few years, giving rise to aspirations forgrowth and development among its people. At the present development juncture, a clear, well-plannedvision for developing an e-governance platform for the state can leapfrog Bihar to an elevated level ofsustainable economic growth. Bihar has already taken several steps in this direction and strengtheningthese initiatives can have significant economic benefits.

This chapter looks at the experience of economies globally as well as among Indian states in putting inplace electronic platforms to enhance the quality of public service delivery and increase participation ofvarious economic constituents in the governance process. Lessons from these experiences can helpBihar create a transparent and conducive environment for businesses to flourish in the state, spurringeconomic growth and providing opportunities for the people of Bihar.

Advantages of Bihar in recent past:

Fastest growing state in India – At 11.95 per cent, Bihar’s growth was the highest among all India statesduring the 11th Five-Year plan.

Fifth largest mobile subscriber base – With 62.6 million mobile subscribers in May 2014, Bihar

has the fifth-largest mobile subscriber base among Indian states.

Fastest per capita income growth – Bihar has topped in per capita income growth, registering a CAGR

of 7.87 per cent in per capita net state domestic product at factor cost constant (2004-05) prices from

2004-05 to 2013-14.

Leader in the production of fruits and vegetables – Bihar is the largest producer of vegetables and

the second-largest producer of fruits in India.

Strong agriculture sector – Bihar is one of the strongest agricultural states, with very high productivity.

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The population employed in agriculture in Bihar is estimated to be 74 per cent, much higher than

the nationalaverage.

State Vision

Economic Snapshot at a Glance:

Economic Snapshot – GSDP

In 2013-14, Bihar‟s GSDP at current prices was US$ 61.1 billion.

The state‟s GSDP rose at a CAGR of 18.9* per cent between 2004-05 and 2013-14.

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Economic Snapshot – Per capita GSDP

Bihar’s per capita GSDP increased from US$ 195.8 in 2004- 05 to US$ 604.8 in 2013-14.

The per capita GSDP increased at a CAGR of 17.1* per cent between 2004-05 and

2013-14.

Economic Snapshot – NSDP

In 2013-14, the NSDP of Bihar was US$ 56.1 billion.

Average NSDP growth rate between 2004-05 and 2013-14 was about 19.1* per cent.

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Economic Snapshot – Per capita NSDP

Bihar’s per capita NSDP increased from US$ 176.6 in 2004- 05 to US$ 555.1 in 2013-14. Robust secondary and tertiary sectors helped Bihar Increase its average per capita NSDP at a CAGR of around 17.4* per cent between 2004-

05 and 2013-14.

Economic Snapshot – Investments

In 2013-14, total outstanding investments in Bihar were US$ 55.9 billion.

The electricity sector accounted for the largest share of outstanding investments at

around 59.6 per cent, followed by the services sector at 34.4 per cent and the irrigation

sector at 3.1 per cent.

Between April 2008 and September 2013, 1,362 investment proposals with a total

investment of more than US$ 56.54 billion were approved by the SIPB. Of the total

proposals approved, 189 have started operation and the remaining are at different

stages of implementation.

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In 2013-14 (until September 2013), SIPB had approved 255 proposals that are expected

to strengthen the base of medium scale industries in the state.

The above data shown above shows a growth and improvement from the recent past which is a

positive sign for the state but still the state lack in making digital presence as compared to states like

Maharastra, Andra Pradesh, Telangana, West Bengal, Punjab, UP, Goa, Rajasthan, Gujrat, Karnataka

and Kerala.

State which witness the 5th largest mobile subscriber base has least web or digital presence compared

to other states. This may be due to misconception or lack of awareness of digital interface like website

and some myth for not making website.

Physical Infrastructure - Telecom

According to Telecom Regulatory Authority of India (TRAI), Bihar had nearly 61.6 million^

wireless subscribers and 381,591 wire-line subscribers as of March 2014

The tele-density in the state was 46.10 per cent as of March 2014

The state had 9,064 post offices as of June 2014

At 61.6 million, Bihar had the fifth largest wireless subscriber base among all Indian

states as of March 2014

As of December 2011, the state had 62,389 public call offices, 1,197 telephone

exchanges and 97,603 broadband subscribers

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Year No of proposals approved by SIPB

2008-09 173

2009-10 127

2010-11 161

2011-12 263

2012-13 417

2013-14* 255

Source: Telecom Regulatory Authority of India Department of Telecommunications, Annual Report 2012-13,Ministry of Communications & Information Technology

*As of December 2011, ^including Jharkhand

The winds of change are sweeping the Indian industry; some states are witnessing the digital

revolution In India whereas some are being left aside due to poor awareness of the impact of

digitalization.

The Internet is being applied and can help in numerous ways in specific sectors of Bihar. It helps inexploring the untouched Bihar to the global audience. Only thing that is needed is the web presence ofthose works for the betterment and upliftment of Bihar’s society for its rapid growth and progress. Thefollowing examples illustrate what can be achieved and issues to consider:

Example: health

In the health sector, telemedicine provides a number of advantages for doctors and other medical staff.In the Third World, in particular, access to appropriate expertise for an accurate diagnosis and thetreatment of illnesses is often difficult to obtain. While this is particularly true in rural and remote areas,it applies to many urban areas as well. Computerized networks facilitate access to accurate and up-to-date information, enable long-distance training and consultation, and improve the administration of thehealth sector. Online initiatives addressing health and medicine promote networking among hospitalsand health professionals worldwide and provide updates on current medical research.

On the other hand, many health problems in the Third World don't require high-tech solutions. During arecent conference on "Africa and New Information Technologies," a participant pointed out that manyof her patients could be cured by such simple remedies as access to clean water. In fact, the lack ofclean water and poor hygiene continue to be the biggest health challenges in today's world; only half ofthe world population has access to safe water. Moreover, although information and education can raisepeople's awareness of the problems stemming from poor hygiene and unsafe water, information initself is an insufficient remedy if people lack the means to implement what they learn.

Some key points of health infrastructure in Bihar

As of 2013, Bihar had 11,559 health centres in various categories, including 533 PHCs, 1,330 APHCs and 9,696 SCs.

As of 2013, there were 36 district hospitals, 71 referral hospitals and 63 sub-divisional hospitals in the state.

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Telecom infrastructure (May 2014)

Wireline subscribers^ 381,183

Broadband subscribers 97,603*

Telephone exchanges 1,197*

Tele-density (per 100 population)^ 46.8

Public Call Offices 62,389*

On an average, the state has 112 health centres for a population of one million.

In 2013-14, total budgeted expenditure for health services in the state was US$ 556.9 million.

AIIMS Patna is one of the six AIIMS established in the country under the PMSSY toprovide sophisticated healthcare services. There will be a medical college offeringundergraduate, postgraduate and doctoral courses.

Example: education

The very origin of the Internet is strongly linked to education, as it was in universities and researchinstitutes that electronic networks were initially developed. Such networks have since evolved from thesharing of research findings among scientists and scholars to access to libraries, schools, and universitiesworldwide. Not only can one find interesting reference material and valuable resources, but increasinglyone can also download books and journals, the Internet thus providing a wealth of knowledge at onesfinger tips. The Internet also enables alternative teaching methods through virtual classrooms and long-distance education, thus allowing more people to receive education.

While the Internet is in many ways a gateway to the world of learning, the state of education in today'sworld leaves a lot to desire. Illiteracy rates are still high in many parts of the world. While governmentsworldwide are scrambling to construct information superhighways, few of them seem equally willing toinvest in more traditional learning methods. All over the world, both in rich and poor countries,educational systems are deteriorating. More and more often, one finds that schools are poorlyequipped, classes are overcrowded, and teachers are poorly trained, underpaid, and overworked. With afew notable exceptions, it appears that education is one of the first sectors turned to when savings needto be made in the national budget. Yet it makes little sense to invest in information superhighways whilecutting down on one of its prerequisites, namely, solid and adequate education for all.

Some key points of education in Bihar

The state has a literacy rate of 61.8 per cent, as per the provisional data of Census 2011.

Male literacy rate is 71.2 per cent and female literacy rate is 51.5 per cent.

The total number of students enrolled in primary and upper primary (up to class VIII) schools

rose to 20.7 million in 2011-12 from 17.7 million in 2007-08, with an annual growth rate of 5.0

per cent. Gender parity is progressing, with the rate of enrolment of girls increasing at a faster

rate than that of the boys.

The state‟s budgeted expenditure on education has increased from US$ 3 billion in 2013-14 to

US$ 4.1 billion in 2014-15. The central government has provided US$ 303.7 million for setting

up of six institutions similar to AIIMS, of which, one is established in Patna, Bihar.

The prestigious IIT was established in Patna in August 2008. The institute offers B.Tech

programmes in three disciplines: Computer Science and Engineering, Electrical Engineering,

and Mechanical Engineering. PhD programmes are offered in Engineering, Science and

Humanities and Social Sciences.

Education infrastructure (2012)

• Universities: 20

• Research institutions: 15

• Government colleges: 273

• Engineering/technical colleges: 10

• Medical colleges: 10

• Local body colleges/other colleges: 542

• Teacher training colleges: 35

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Example: political processes

The ease with which information can be published and disseminated on the Internet allows for moredemocratic and participatory political structures. For many years computerized networks have beenused to share information on important events, and given today's world of increasing global integrationit would appear impossible to stop such information flows. For instance, Chinese students, bothoverseas and within China itself, were able to communicate through e-mail before, during, and after the1989 Tiananmen crackdown in Beijing, thus defying heavy government censorship and ensuring a freeflow of information. It is also true that the very fact that information is processed, stored, andtransmitted in digital form allows for greater surveillance. After all, digital transmissions leave digitaltrails. Although the creativity that is found among users of the Internet can curb such trailingenterprises, the issues of privacy and personal integrity require further and fuller consideration.

The political concerns of governments will continue to influence the future expansion of the Internet,both in the developed and the developing world. Because of the ease with which information can travelthrough electronic networks, the Internet is banned or considerably curtailed in many countries. Thepolitical concerns underlying these measures are in fact related to some of the inherent contradictionsof the modern world order, namely the transnational flows of people, goods, and information incontrast to political administration within the boundaries of nation states. The Internet can serve as apowerful medium for the achievement of social identification, an important aspect of any society.Indeed, in the past more complex social forms have enabled, and in turn been enabled by, increasinglysophisticated communicative tools. While modern media, such as television, can be used to promotenational unity, these tools are at times also used for the very opposite purpose-creating socialdisruption, for example, through racial propaganda.

Countries need to protect their sovereignty and nations have the right to deny content perceived asoffensive or undesirable. However, although content can be controlled within a country's borders, theglobal nature of the Internet makes it difficult to achieve full control. Moreover, the views of thedecision makers do not always reflect those of the population at large.

Virtual worlds, cultural gaps

If the Internet is to be a truly multicultural medium, people in the Third World should be encouraged toactively use the Internet and to express themselves not only in their own language but also in their ownframe of reference. The fact that only an estimated 5 percent to 10 percent of the content on the

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• Other educational institutions: 252

Reputed Technical Institute in Bihar

• Indian Institute of Technology, Patna

• National Institute of Technology, Patna

• National Institute of Fashion Technology, Patna

Reputed Medical Institute in Bihar

• Indira Gandhi Institute of Medical Sciences, Patna

• Jawaharlal Nehru Medical College, Bhagalpur

• Patna Medical College, Patna

Internet is of Asian origin, while the Asian population represents almost half of the world's population,indicates how far the Internet is from truly being culturally diverse. Moreover, it will be important toimprove the telecommunications infrastructure between countries in the Third World and promoteintraregional communication. In many ways the existing infrastructure reflects interests of globalpowers, connections to the United States or Europe usually being much better than betweenneighbouring countries.

The sociocultural aspects of the Internet are not restricted to the domains of language and contentalone. The Internet symbolizes a specific way of communicating, which is influenced by a number ofvariables.

The Internet way, or more correctly, ways, of communicating are in many aspects different fromtraditional means of interacting both in the developed and the developing world, although the contrastis probably sharper with regard to the latter. First, the Internet usually offers a highly individualizedmeans of communicating, as opposed to more collective forms. A traditional village gathering seemsvery far removed from the communicative practices prevalent on the Net. Second, the interaction iscomputer mediated as opposed to face-to-face, shaped by the technical tools used. These tools are inmany ways restrictive when compared to the richness of face-to-face interaction, although they alsoallow for new creative forms of interaction.

Key Industries in Bihar

Bihar‟s natural resources and policy incentives support the agro-based sector. Agro-based

industry and petroleum products (primarily Barauni oil refinery) account for around 85.0 per

cent of the state’s total industrial output.

In 2012, the SIPB approved 12 large-scale units. Britannia Industries, Ramco Industries and

Hindustan Petroleum are some of the promoters whose units were granted approval. During

2012-13, four additional large-scale units were approved by SIPB.

Medium and small scale industries, and micro and artisan enterprises play a major role in

terms of generating employment. As on September 2013, Bihar had 194,953 permanent

registered units with a total investment of US$ 366.5 million, providing employment to 0.64

million workers.

In 2012-13, a total of 3,753 new units under the MSME sector were registered. A majority of the industries are located in Patna, Magadh, Tirhut and Munger. Bhagalpur,

Purnea and Darbhanga are the other major industrial centres.

Industries at a glance

Food and beverages

Rubber and plastics

Transport equipment

Chemicals

Tobacco

Textiles

Leather

Paper, printing & publishing

Mines & minerals

Dairy

Tea

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Sugar

Tourism

Health

It is nevertheless to say that Progress in an economy or the qualitative measure of this development isbased on the web presence. Economic development usually refers to the adoption of new technologies,transition from agriculture-based to industry-based economy, and general improvement in livingstandards. The proper web presence and SEO of the industry based in Bihar help in reaching the massaudience and make it more competitive in the economy driven market. It also helps the state inprospering and put it in the race among the fastest developing state.

Myth of Digital Presence

Normally people escape saying that developing and adopting the digital presence incurred x amount which is not budget friendly for many of us.

The facto – Normally the website development cost and maintenance incurred not more than Rs. 2000for displaying their product/service online which is as less as Rs. 5.50 p/d approx..

It can’t cater the target audience

The facto – With the proper designing and optimization of specific keywords and SEO, it can be listed inthe Google ranking and it helps to reach the audience seeking similar need.

It can’t help in promoting the territory

The facto – Making web presence not only helps in building and promoting goods/services but make itmore competitive for the global visitors to explore the area.

With IT firms harnessing the power of technology to promote their offerings, place like Bihar which hasrich history and birth place of many great epic people like Aryabhatt, Ashoka, Chanakya, Chandragupta;has embarked their presence in History and to the world. Even the Ashoka Chinha becomes the NationalEmblem of India which was adopted from Bihar itself. Our cultural diversity is the common heritage ofhumanity. It is a source of renewal of ideas and societies, through which we open up to others and craftnew ways of thinking. This diversity provides opportunities for peace and sustainable development butthis can be attainable in modern days through the proper web presence. This can be attainable througha concept called – “Make or Buy”. Buy concept can be attainable by paying the cost for making webpresence to the multinational conglomerates or big- short companies who normally operates in bigmetros.

In this Buy concept, it is easier to procure the resource from the global audience by payingdirectly to them but our stratification will have major gap which result to deformation and gap ineconomical development of the state. This results to under estimation of our own potential which leadsto brain drain from the state.

Make concept not only help the emerging company from within the state to get its establishedand flourish, in the meanwhile it is comparatively economical to get it procured from within the state.First it will create a positive vive among the investor from outside the state and country to pumpinvestment, growth in infrastructure development, help in attaining double digit growth which will be

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bench marked if the assistance and support is given to small industries like us and nevertheless it willhelp in reducing brain drain.

If we check the corporate world across nation, many top profile people either in IT or incorporate world has Bihar connection. They moved outside due to lack of opportunity in enriching andholistic development of themselves.

Thus it is clear that the current distribution of access to the Internet and visual interface throughwebsite needs to be redressed, especially with regard to the developing Bihar to give it a double digitgrowth in GDP. Furthermore, appropriate tools and applications need to be developed so that allmembers of all societies can benefit from the digital revolution.

The paper submitted is a joint effort of Dr. Rajesh Kumar (expertise area: International Business) & Mr.Amit Kumar (expertise area: Management Thinker and Economic guru) and can approach by email -digitalbiharmovement@gmail.com who holds a key postion in IT and Web Development Company.Reader can participate in the movement of making Bihar into Digital Bihar. It’s a movement to makeBihar noticeable in the field of IT which is major turbulent in the development of the state.

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