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 Groups

Parmesh Shah, Lead Rural Development Specialist, SASRD World Bank

The views and opinions expressed in this presentation are the authors own and should not be attributed to the World Bank, its management, its Board of Directors or the countries they represent.

Overview
Vision Two case studies
Russia Rural information, knowledge and services India Rural Kiosks in Andhra Pradesh

Global trends Framework for development of rural information, knowledge and business services
Key principles Implementation 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 multidisciplinary information needs of the rural population Providing

Free and Fee based information, knowledge and business services

To ensure sustainability

Using a variety of Information and Communication Technologies (ICTs)

Two case studies

Russia Rural Information and knowledge services India 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

Context Objective Approach Taken Results Achieved Lessons Learned

Context:92-93

Initial Conditions
State-controlled information systems to meet centralized planning requirements Lack of free access to information to those desiring to be informed and make their own decisions High literacy rate in the world, but lack of knowledge of how to function in a market economy Availability 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 information Methods of processing agricultural products Agricultural mechanization and technologies Veterinary-related information

Multisource: The Second M Multidisciplinary: The Third M

Rural Information and Knowledge Development

Russian Research Academies International Research Institutes

Agricultural Institutions

Foreign Sources

Multisource
Universities

Information Sources
Local/Foreign

Data Banks
Govt. Agencies Input Suppliers

Information Development for Client & Media

Multidisciplinary

(Business, Market, Technical, Legal, Environmental) Management, organization

Multimedia: The Fourth M

Rural Information and Knowledge Dissemination Using Multimedia

Print

Radio

Video

Computer

TV

Exhibitions & Fairs

FEED- BACK FROM USERS

Rural Information and Knowledge Services

Feedback
Client Information Needs Assessment
Russian Research Academies Agricultural Institutions Universities International Research Institutes

Feedback

Multisource

Information Sources

Foreign Sources
Local/Foreign Data Banks Input Suppliers

Govt. Agencies

Multidisciplinary Multimedia

Information Development for Client & Media

(Business, Market, Technical, Legal, Environmental)

Print

Radio

Video

Computer

TV

Exhibitions & Fairs

Multiusers

Private Farms

Collective/State Farms

Government

Agro Industries

Consumers

Ministry of Agriculture: Multi-media Press Video Center

Feedback
Client Information Needs Assessment
Russian Research Academies Agricultural Institutions Universities International Research Institutes

Feedback

Multisource

Information Sources

Intl Libraries Local/Foreign Data Banks Foreign Univ.

MOA Depts

Multidisciplinary Multimedia

Press Video Center

Print

Radio

Video

Computer

TV

Multiusers
Federal MOA Departments Oblast-MOA Departments Agricultural Producers Institutes

Results

Results achievedat User Level

Moving towards
Attitudinal changes in new ways of doing business by different users
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 profit Formation of interest groups Producer organizations Citizens advocacy groups Transforming state farm workers to private farmers

Creation of democratic structures and new alliances

Transparency, increased accountability of public resources Stimulating competition among traders, reducing inter-regional price disparities and taking advantage of international market opportunities
Government programs Disclosure of Government expenditures

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 development

A 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. 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

Establishment of Farmer information and Advisory Services (FIAS centers)

How much did this cost?

Cost
Total 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 hardware Incorporate 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 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 Provide adequate operations support for day to day operations Examples: - Office supplies - Communication expenses - Local transport - Incorporate performance based incentives for project staff

Case Study
India: Rural Kiosks in Andhra Pradesh

Overview
Context Vision and objectives Criteria Services rendered Economics and viability Outcomes Lessons learnt

Context..
Strong leadership at the Andhra Pradesh Government level with a vision to bring access to Government services to the citizens A large State wide Self-Help Group and Village Organization Network of the poor with own savings and Commercial Bank linkages Builds on successful franchise model (E-Sewa) in urban areas Information Technology
at minimum cost and increase transparency

Private sector given a bigger role in delivery of Government services through franchises Proposed 8600 kiosks through two large private sector operators

Rapidly developing information infrastructure aimed at providing connectivity characterized by Declining costs Fiber optic technology introduced in a large scale

Rural Kiosk - vision

Is 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 groups Availability of power Telephone connectivity Easily accessible Proximity to a bank

Mandal District HQ 1 Gbps Ring District HQ District HQ 10 Gbps Ring

Internet Gateway
CATV Transmitter

SWITCH

Mandal
CATV Transmitter

BSC
CATV Transmitter

SWITCH

State HQ

Optical Fibre Cable

Buried Cable Hospital

SWITCH

Aerial OF Cable

100 Mbps Village Kiosk BTS

Cable TV Headend Central WAN Server/Portal VOIP Telephony Switch & Gateway GSM Operator

Bank

Village Houses

Services offered in Rural Kiosks

Government Services
Electricity bill collection Telephone bill collection Land Records Certificates Death, Birth, Income Certificates RTO, Commercial Tax and other tax collection Non-Judiciary/Postal Stamps Information Services Promotion and awareness programs
Government programs/schemes

Health Education Employment

Computer Education Tele-Medicine Sale of various application forms Results and marks Placement services Insurance Premium Collection and new insurance policies Distance Education Matrimonial Services

Computer education in rural kiosk

Services offered by Rural Kiosks

Private and Other Services
Self Help Group Accounting Information Services
Market Information

Money Transfer Courier and Cargo Services Sale of Bank Products

ICICI personal loans, etc.

Sale of HLLs I-Shakti Products Mobile phone handsets and activation cards Sale of various retail products

Economics and Viability of a Kiosk

(in Rupees)

Grad e

No. of Kiosks

Population (No. households)

of

Franchise cost

Other Costs

Total cost/ kiosk

Total Inv. Cr.

Expected net Profit/month to Entrepreneur After 1 Yr

A B C

140 425 1101

D TO 1,666 TAL

> 1800 Between 1400 to 1800 Between 1000 to 1400 < 1000

1,86,000 1,86,000 1,25,000 1,25,000

61,000 61,000 50,750 50,750

247,000 247,000 175,750 175,750

3.45 10.50 19.35

18,000 13,000 8,000 7,000

33.3

Exchange Rate: US$1.00 = Rs. 44.00

Income received from Rural Kiosk operations

Income levels in Rural Kiosks
Number of rural Kiosks
14 12 10 8 6 4 2 0

13 3 Less than Rs.2000 Between Rs.20004000

12 5 Between Rs.40007000 Above Rs.7000

Income level

Outcomes
It has proved to be a boon to Rural citizens Citizens
Better services to citizens Computer Literacy for citizens Human Development in rural areas

RAJiv Kiosk operators

Change in Income generation activity from traditional dairy employment to IT based services Empowerment of women Self sustainability

Lessons learnt
Better services to Rural citizens
Saves time Saves money

Transactions are synchronized at central level and operations of kiosks are monitored
Financial perspective Operations perspective

Self-sustainability of SHG group is critical Selection of Kiosk operators is critical Jurisdiction of Panchayats vis--vis Kiosks

Challenges
Self-sustainability
Less no. of transactions per service Hence, more number of services is required

Entrepreneurial skills Women office bearers Network connectivity Technical and Business Handholding Financial reconciliation on daily basis Monitoring 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 model Sustainability of system Incorporate standard business practices

More services
Telemedicine Satellite based kiosks Property Transactions

THREE GLOBAL TRENDS IN RURAL INFORMATION, KNOWLEDGE AND SERVICES

First trend Changing 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.Z

Agriculture AIDS - Advisory Services

Business Biology Bills - Banking Culture Credit - Capital Debt - Data Education Employment - Entitlements Empowerment - Entertainment Environment - Extension Foods Forestry Finance Farming - Fees Government services - Genetics - GMOs Health Horoscope Industry Information Job Opportunities - Justice Knowledge Land titles Laws Licenses Market Microfinance Manufacturing - Matrimony Nutrition Permits Procurement Registration Social benefits Social Security Technology Trade Transport Tourism Tax Tickets Utilities Weather Wisdom

Zoology

Second trend Changing Information and Communication Technologies from single to integrated systems

Emerging Trends Present future

Existing tools
Print Radio Telephone Films Audio Television Video Computer Internet GIS RFID Other

Integrated ICT systems

Essential elements

Multimedia information, knowledge, & business centers providing Multi-sectoral Multidisciplinary content From Multiple sources To serve Multiple users With feed-back mechanisms

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

Third Trend.
International investment in ICTs 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

Definition of ICT
Information and Communication Technologies ICTs
Are tools that help build human network, increase public awareness and provide access to information, knowledge and services for the use of people Consists of a range of communication media and devices
Print Telephone Fax Radio Television Video Audio Computer Internet Remote Sensing GIS RFID and technologies on the drawing boards

Key Principles. Need to place more emphasis on I: Information - needs assessment, indigenous knowledge,
C: Improving Communication, Content, Connectivity,
intellectual property rights, freedom of information, developing relevant institutions and to make it as another BASIC NEED 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

Framework for Rural Information, Knowledge and Business Services

Feedback
User Information Knowledge Capacity Needs Assessment
Government institutions International Institutions

Feedback

Multiple-sources
-partners

Private sector

Sources Partners

Multi-national Cos
Diaspora

Academic Institutions

NGOs

Internet Mechanisms for Content Development and Partnership arrangements with Users

Multiple-disciplines
-sectors content

Multiple Communication channels

Exhibitions & Fairs

Print

Radio

Video

Computer/Internet

TV

Multiple Users

Rural Households

Entrepreneurs

Government

Schools

Hospitals

Replicability
Modular nature of the approach taken Lends 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 Infrastructure Capacity 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 needs assess both the demand and nature of information, local problems, constraints, and the expectations of the various users from rural information, knowledge and business services strengths 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, etc Publicly 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 aheadrealization 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 multidisciplinary information needs of local rural population Providing
Free and Fee based information, knowledge and business services

Using a variety of ICTs

Many thanks for your attention

Questions, Comments, Suggestions are most welcome..
Sjanakiram@worldbank.org pshah@worldbank.org