rural information, knowledge and business services – challenges and opportunities s. janakiram,...
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Rural information, knowledge and business services – challenges and opportunities
S. Janakiram, Champion, ICT for Rural Development, E-development and Sustainable Agricultural Systems, Knowledge and Institutions Thematic GroupsParmesh Shah, Lead Rural Development Specialist, SASRD World Bank
The views and opinions expressed in this presentation are the author’s own and should not be attributed to the World Bank, its management, its Board of Directors or the countries they represent.
OverviewVision Two case studies
Russia – Rural information, knowledge and servicesIndia – Rural Kiosks in Andhra Pradesh
Global trendsFramework for development of rural information, knowledge and business services
Key principlesImplementation steps
Moving forward …What we hope to see in the years ahead?
The Vision…………..Inter-connected rural information, knowledge and business service centers within and between countries…
Tailored to meet the multi-sectoral and multi-disciplinary information needs of the rural populationProviding
• Free and • Fee based information, knowledge and business
services – To ensure sustainability
Using a variety of Information and Communication Technologies (ICT’s)
Two case studies…
Russia – Rural Information and knowledge servicesIndia – Rural kiosks in Andhra Pradesh
First case study
Russia – Rural Information and knowledge services *
*Carried out as part of a Bank financed project: "Agricultural Reform Implementation Support (ARIS) Project, May 31, 1994. Report Number 12710-RU
ContextObjectiveApproach TakenResults AchievedLessons Learned
Context:’92-’93
Initial Conditions
State-controlled information systems—to meet centralized planning requirementsLack of free access to information to those desiring to be informed and make their own decisionsHigh literacy rate in the world, but lack of knowledge of how to function in a market economyAvailability of basic communication infrastructure
Objective
To enable the free flow of information and knowledge to improve decision making of different types of emerging public and private rural enterprises and institutions during the transition to a market economy
Approach taken
Four M Modular approach for rural information and knowledge services*
Modular approach using Multi media to develop Multi-disciplinary information and knowledge services from Multiple sources to Multiple users with built in user needs assessment and feedback mechanisms
*More information is available in the following link to the case study on Russia - Rural information and knowledge system http://topics.developmentgateway.org/edevelopment/rc/filedownload.do~itemId=1033905
Also accessible in Google search using keywords “rural information and knowledge services”
Client Information
Needs Assessment
Multiusers:
The First M
Multiusers
Private Farms Collective/State Farms Government
Agro Industries Consumers
Priorities of Information for emerging private farm structures
Legal and financial informationMethods of processing agricultural productsAgricultural mechanization and technologiesVeterinary-related information
Multisource: The Second M
Multidisciplinary:
The Third M
Information
Sources
Rural Information and Knowledge Development
Multisource
MultidisciplinaryInformation Development for Client & Media (Business, Market, Technical, Legal, Environmental)
Management, organization
Govt. Agencies
Universities
Agricultural Institutions
Russian Research
Academies
Input Suppliers
Local/Foreign
Data Banks
Foreign Sources
International Research
Institutes
Multimedia:
The Fourth M
Rural Information and Knowledge Dissemination—Using Multimedia
Print Radio Video Computer TV
Exhibitions & Fairs
FEED- BACKFROM USERS
Information Development for Client & Media (Business, Market, Technical, Legal, Environmental)
Information
Sources
Govt. Agencies
Universities
Russian Research Academies
Agricultural Institutions
Input Suppliers
Foreign Sources
International ResearchInstitutes
Local/Foreign Data Banks
Client Information
Needs Assessment
Print Radio Video Computer TV Exhibitions
& Fairs
Multimedia
Multiusers
Private Farms Collective/State Farms Government Agro Industries Consumers
Rural Information and Knowledge Services
Feedback Feedback
Multisource
Multidisciplinary
Press Video Center
Information
Sources
MOA Depts
Universities
Russian Research Academies
Agricultural Institutions
Foreign Univ.
Int’l Libraries
International ResearchInstitutes
Local/Foreign Data Banks
Client Information
Needs Assessment
Print Radio Video Computer TV
Multimedia
Multiusers
Federal MOA Departments
Oblast-MOA Departments
Institutes
Ministry of Agriculture: Multi-media Press Video Center
Feedback Feedback
Multisource
Multidisciplinary
AgriculturalProducers
Results
Results achieved…at User LevelMoving towards…
Attitudinal changes in new ways of doing business by different users• Transforming state farm “workers” to “private farmers”
Increased awareness among users to make informed business decisions and understanding of the rewards and risks of a market economy
• Using timely agricultural price information to make production and marketing decisions – resulting in crop diversification, efficient use of resources and meeting consumer demands rather than dictated by state quotas and fixed prices
• Maximize profitCreation of democratic structures and new alliances
• Formation of interest groups• Producer organizations• Citizen’s advocacy groups
Transparency, increased accountability of public resources• Government programs • Disclosure of Government expenditures
Stimulating competition among traders, reducing inter-regional price disparities and taking advantage of international market opportunities
Results achieved .. Information infrastructure development
Creation of distributed computing environment connecting 30 oblasts (states) and over 300 raions (districts) across the Russian Federation providing agriculture and market information
• Website (www.aris.ru) – provides weekly and bi-weekly producer, wholesale and retail prices oof up to 150 agricultural products by grades and quality
• Sections on price information, markets and agricultural information is the most frequently visited
• Was among the top three state web-sites among all the economic sectors in the Russian Federation
A modern multi-media press video center using digital technology in the Agricultural Ministry
• Has capability that matches or exceeds that found in most agricultural communication/extension systems anywhere in the world
• Carries out daily broadcast program “own land” in Radio Russia and by commercial broadcasting station “Free Russia” covering 90% of the Russian territory and majority of CIS countries
• Production of video films from different parts of the world on various aspects of agricultural production, marketing, businesses, privatization, etc
• Production and transmission by Russian TV – Rural News Program which is carried out by regional state TV and broadcasting companies
Results achieved.. Institutional developmentA well developed Federal Training Center in Timiryazev Agricultural Academy
• Introduction of new curriculum on agricultural extension • Retraining of agricultural professionals to suit a market
oriented economy• Trains specialists in various aspects of agriculture at the
federal and regional levels – who in turn provide training for farmers and rural enterprises
• Carries out distance learning programs in various aspects of farm re-organization, management, technologies, restructuring, etc.
Establishment of Farmer information and Advisory Services (FIAS centers)
• Operational in 27 Oblasts (States) and 148 Raions (Districts)
• Over 750 specialists trained in the provision of advisory services suitable for a market oriented agricultural economy
• Replicated the establishment of FIAS centers in additional 35 Oblasts outside the project area
How much did this cost?
CostTotal investment and operating cost between 1995-2000• $32 million
Financing:Government of Russian Federation• $11 million
World Bank • $21 million
Lessons Learned
•Involvement of as many public and private institutions as possible for information development and dissemination Such as:
- Dept of Science and technology, Information, advisory services in the Ministry of Agriculture- Agricultural Universities at the federal and state levels- Research Academies- Nongovernmental organizations- Local community organizations- Public and private media organizations
•Build on local culture, customs and media – incorporate local mechanisms into information and knowledge transfer project activities Examples :
- Annual agricultural exhibitions/fairs- Harvest festivals- Local TV and radio programs- Local newspapers, periodicals, magazines
•Flexibility and scalability in technology hardwareIncorporate internationally accepted hardware and software standards into information network design and communication Examples:
- Distributed computing environment- Open Software- Effective use of available communication facilities and bandwidth
•Provide adequate operations support – for day to day operations Examples:
- Office supplies- Communication expenses- Local transport- Incorporate performance based incentives for project staff
•Expect limited cost recovery during transition years – takes time to move from Free to Fee based services Such as:
- Recovery of partial operating costs- Provide information and knowledge as a free public good, especially in transition and least developed economies
Case Study…
India: Rural Kiosks in Andhra Pradesh
Overview
ContextVision and objectivesCriteriaServices renderedEconomics and viabilityOutcomesLessons learnt
Context..Strong leadership at the Andhra Pradesh Government level with a vision to bring access to Government services to the citizens
at minimum cost and increase transparency
A large State wide Self-Help Group and Village Organization Network of the poor with own savings and Commercial Bank linkagesBuilds on successful franchise model (E-Sewa) in urban areasInformation Technology
Rapidly developing information infrastructure – aimed at providing connectivity characterized by Declining costs – Fiber optic technology introduced in a large scale
Private sector given a bigger role in delivery of Government services through franchisesProposed 8600 kiosks through two large private sector operators
Rural Kiosk - visionIs a center which would provide:
Government to Citizen Services (G2C)Government to Business Services (G2B)Business to Business Services (B2B)Business to Citizen Services (B2C)Citizen to Citizen Services (C2C)To provide opportunities for Government Departments, Public and Private Service providers, SHG entrepreneurs to create and manage services addressed to the rural citizens and markets and operate franchises
Objectives To provide the population living in the village access to information needed for empowerment and development
To give the marginal farmers information on markets, productivity tools, best practices, and other needed information to move up the value chain
To bring domestic and global markets closer to those making products and artisans making handicrafts
To serve as a hub of information for employment opportunities
To build the infrastructure and achieve statewide networked economy
To provide localized content and interface to meet the needs of various degrees of literacy levels
Developing a fully e-literate state with at least one member of each family acquiring proficiency in computers
Elements of Knowledge Based Enterprises at Village and Peri-Urban Levels
Information Based Services (land records, crop forecasts)Family Based Services (rural emergency 911 response service, postal service)E-Governance Services (government records and services)E-Commerce Services (financial transactions, delivery of goods)Venture Capital and Know How (setting up mini enterprise, providing start-up funds)Educational services (distance learning, computer education)E-Health – telemedicine
Criteria for setting up a Rural Kiosk
Owned and managed by Mandal Samakhya and operated by self help groupsAvailability of powerTelephone connectivityEasily accessible Proximity to a bank
Mandal
Village KioskCable TV Headend
Internet Gateway
SWITCH
CATV Transmitter
1 Gbps Ring
District HQ
Village Houses
100 Mbps
Central WAN Server/Portal VOIP Telephony
Switch & Gateway
Aerial OF Cable
Mandal
Optical Fibre CableBuried Cable
District HQ
District HQ
10 Gbps Ring
BTS
GSM Operator
State HQ
BSC
Bank
Hospital
SWITCH
CATV Transmitter
SWITCH
CATV Transmitter
Mandal
Village KioskCable TV Headend
Internet Gateway
SWITCH
CATV Transmitter
SWITCH
CATV Transmitter
1 Gbps Ring
District HQDistrict HQ
Village Houses
100 Mbps
Central WAN Server/Portal VOIP Telephony
Switch & Gateway
Aerial OF Cable
Mandal
Optical Fibre CableBuried Cable
Optical Fibre CableBuried Cable
District HQDistrict HQ
District HQDistrict HQ
10 Gbps Ring
BTS
GSM Operator
State HQ
BSC
Bank
Hospital
SWITCH
CATV Transmitter
SWITCH
CATV Transmitter
SWITCH
CATV Transmitter
SWITCH
CATV Transmitter
Services offered in Rural KiosksGovernment Services
Electricity bill collectionTelephone bill collectionLand Records CertificatesDeath, Birth, Income CertificatesRTO, Commercial Tax and other tax collectionNon-Judiciary/Postal StampsInformation Services
• Government programs/schemes
Promotion and awareness programs
Health – Education –Employment
Computer EducationTele-MedicineSale of various application formsResults and marks Placement servicesInsurance Premium Collection and new insurance policiesDistance EducationMatrimonial Services
Computer education in rural kiosk
Services offered by Rural Kiosks
Private and Other ServicesSelf Help Group AccountingInformation Services
• Market Information Money TransferCourier and Cargo ServicesSale of Bank Products
• ICICI personal loans, etc.Sale of HLL’s I-Shakti ProductsMobile phone handsets and activation cardsSale of various retail products
Economics and Viability of a Kiosk(in Rupees)
Grade
No. of Kiosks
Population (No. of households)
Franchise cost
Other Costs
Total cost/ kiosk
Total Inv. Cr.
Expected net Profit/month to Entrepreneur After 1 Yr
A 140 > 1800 1,86,000 61,000 247,000 3.45 18,000 B 425 Between
1400 to 1800 1,86,000 61,000 247,000 10.50 13,000
C 1101 Between 1000 to 1400
1,25,000 50,750 175,750 19.35 8,000
D - < 1000 1,25,000 50,750 175,750 7,000 TOTAL
1,666 33.3
Exchange Rate: US$1.00 = Rs. 44.00
Income received from Rural Kiosk operations
Income levels in Rural Kiosks
3
13 12
502468
101214
Less thanRs.2000
BetweenRs.2000-
4000
BetweenRs.4000-
7000
AboveRs.7000
Income level
Nu
mb
er
of
rura
l Kio
sk
s
OutcomesIt has proved to be a “boon” to Rural citizensCitizens
Better services to citizensComputer Literacy for citizensHuman Development in rural areas
RAJiv Kiosk operatorsChange in Income generation activity from traditional dairy employment to IT based servicesEmpowerment of womenSelf sustainability
Lessons learntBetter services to Rural citizens
Saves timeSaves money
Transactions are synchronized at central level and operations of kiosks are monitored
Financial perspectiveOperations perspective
Self-sustainability of SHG group is criticalSelection of Kiosk operators is criticalJurisdiction of Panchayats vis-à-vis Kiosks
ChallengesSelf-sustainability
Less no. of transactions per serviceHence, more number of services is required
Entrepreneurial skillsWomen office bearersNetwork connectivityTechnical and Business HandholdingFinancial reconciliation on daily basisMonitoring on daily basis
New partnerships envisaged
Tie ups with Microsoft, ITC and Byraju Foundation (Satyam) for increasing the range of services Radiant Technologies is a revenue sharing partner ( 25%) provides maintenance and service delivery support and is developing tie ups with ICICI Bank, Rural Naukri. com, Aptech ( computer education) and Nokia Program works with bankable SHGs and encures Bank financing and SGSY linkages
Way Ahead
MoU signed with eGovServices to establish Kiosk Support Center
PPP modelSustainability of systemIncorporate standard business practices
More servicesTelemedicineSatellite based kiosksProperty Transactions
THREE GLOBAL TRENDS IN RURAL INFORMATION, KNOWLEDGE AND SERVICES
First trendChanging information, knowledge and business needs .. From simple to complex
More holistic information, knowledge & services – multisectoral and multidisciplinary in nature are being demanded by the population..
from A….ZAgriculture – AIDS - Advisory ServicesBusiness – Biology – Bills - BankingCulture – Credit - CapitalDebt - DataEducation – Employment - Entitlements – Empowerment - Entertainment – Environment - ExtensionFoods – Forestry – Finance – Farming - FeesGovernment services - Genetics - GMO’sHealth – HoroscopeIndustry – InformationJob Opportunities - JusticeKnowledgeLand titles – Laws – LicensesMarket – Microfinance – Manufacturing - MatrimonyNutritionPermits – ProcurementRegistrationSocial benefits – Social Security Technology – Trade – Transport – Tourism – Tax – TicketsUtilities Weather – Wisdom
Zoology
Second trend…Changing Information and Communication Technologies – from single to integrated systems
PrintRadioTelephoneFilmsAudioTelevisionVideoComputerInternetGISRFIDOther…
Multimedia information, knowledge, & business centers
providingMulti-sectoral – Multi-disciplinary content
From Multiple sources
To serveMultiple usersWith feed-back
mechanisms
Essential elements
Enabling policy environment to promote access in rural areas – pricing, competition, regulatory env., etc
Incentives for retaining skilled people and private sector involvement
Relevant Content in local language
Telecommunication infrastructure
Institutional linkages and capacity building
Existing tools
Present… future
Integrated ICT systems
Emerging Trends
Third Trend….International investment in ICT’s shifting from manufacturing to service activities
• Marketed services become a larger share of economic activity
– Because of ..– greater domestic de-regulation– competition– trade liberalization
• Outsourcing
Information and Communication Technologies – ICT’s
Are tools that help build human network, increase public awareness and provide access to information, knowledge and services for the use of peopleConsists of a range of communication media and devices
• Print - Internet• Telephone - Remote Sensing• Fax - GIS• Radio - RFID• Television - and technologies on the drawing boards…• Video• Audio• Computer
Definition of ICT
Key Principles…. Need to place more emphasis on…
I: Information - needs assessment, indigenous knowledge, intellectual property rights, freedom of information, developing relevant institutions and to make it as another BASIC NEED
C: Improving Communication, Content, Connectivity, Capacity building, Culture of sharing information – to bring about Change in attitudes, behavior and more efficient ways of doing business and delivery of services
T: Build on existing “traditional” technologies along with “modern” technologies – to bring increased Transparency and gain public Trust
How to design rural information, knowledge and business services ?- implementation steps
Mechanisms for Content Development and Partnership arrangements with Users
Sources
Partners
NGO’s
Academic Institutions
Government institutions
Private sector
Internet
Multi-national Cos
International Institutions
Diaspora
UserInformationKnowledge Capacity
Needs Assessment
Print Radio Video Computer/Internet TV Exhibitions
& Fairs
Multiple – Communication channels
Multiple Users
Rural Households Entrepreneurs Government Schools Hospitals
Framework for Rural Information, Knowledge and Business Services
Feedback Feedback
Multiple-sources-partners
Multiple-disciplines-sectorscontent
Replicability
Modular nature of the approach takenLends itself to the design of the least cost and most appropriate ways for developing and disseminating rural information and knowledge services
To address the user needs of the rural population – using a range media - from traditional and tested radio, print and television dissemination mechanisms to modern high technologies using high speed computers and internet.
Scalability
Builds on Available Information Technology InfrastructureCapacity in existing institutions involved with provision of information, knowledge and business services and training
Implementation Steps..Step One: Participatory diagnostic information and knowledge needs and capacity assessment of a variety of end users in rural areas
to define and prioritize needsassess both the demand and nature of information, local problems, constraints, and the expectations of the various users from rural information, knowledge and business servicesstrengths and weaknesses of existing communication systems
Step Two: Development of appropriate content and partnerships to meet end user needs
Public, private, academic, non-governmental institutions, etcPublicly available content from the World Wide Web and adapted to meet the needs of the rural population
Step Three: Dissemination of content and development of partnership linkages using a variety of information communication technologies
Such as TV, radio, telephone, video, CD ROM, print, E-mail, fax, internet, teleconferencing, etc.
Step Four: Ongoing feedback for monitoring and evaluation
Content improvement, media selection, cost recovery mechanisms, assessing changing demands and creating demand for new types of information, knowledge and business opportunities by different types of end-users, evaluating impact of investments in ICT aimed at poverty reduction
What we hope to see in the years ahead…
Emphasis on both institutional and IT infrastructure in country assistance strategies
Development of information and knowledge based enterprises
Value added E-services using the vast network of community organizations and micro-enterprises
Protection of Intellectual Property Rights of the poor – and indigenous knowledge as a marketable asset
Development of information and knowledge markets at the local level
Increased role of public sector to provide ICT connectivity to central nodes in rural areas to stimulate private sector involvement and to provide value added demand driven services
More robust evaluation methodologies to evaluate impacts of investments in ICT aimed at poverty reduction
What we hope to see in the years ahead…realization of the vision…
Establishment of inter-connected rural information, knowledge and business centers within and between countries providing a range of services:
Tailored to meet the multi-sectoral and multi-disciplinary information needs of local rural populationProviding
• Free and • Fee based information, knowledge and business
services
Using a variety of ICT’s
Many thanks for your attention
Questions, Comments, Suggestions are most welcome..