ICT IN AGRICULTURE Updated Edition e-SOURCEBOOK ICT IN AGRICULTURE Connecting Smallholders to Knowledge, Networks, and Institutions Updated Edition KWPF KOREA-WORLD BANK PARTNERSHIP FACILITY © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 20 19 18 17 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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ICT IN AGR IC ULTUR E C O NT E NT S V TABLE OF CONTENTS OVERVIEW OF ICT IN AGRICULTURE: OPPORTUNITIES, ACCESS, AND CROSSCUTTING THEMES Module 1 Introduction: ICT in Agricultural Development. . . . . . . . . . . . . . . . . . . . . 3 Module 2 Making ICT Infrastructure, Appliances, and Services More Accessible and Affordable in Rural Areas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Topic Note 2.1: Making ICT Affordable in Rural Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Topic Note 2.2: Public Innovations in Universal Access to Telecommunications. . . . . . . . . . . . . . . . . . 29 Passive Infrastructure Sharing in Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Turkey’s Oligopolistic Infrastructure Sharing Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Dabba’s Experience with Unlicensed Wireless Services in South Africa . . . . . . . . . . . . . . . . . . . 32 Bhutan’s Community Information Centers Adapt to the Geographical and Consumer Context. . . . . . . . 34 Topic Note 2.3: Mobile Money Moves to Rural Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 M-PESA’s Pioneering Money Transfer Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Zain Zap Promotes Borderless Mobile Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Pakistan’s Tameer Microfinance Bank for the Economically Active Poor . . . . . . . . . . . . . . . . . . . 39 Txteagle Taps a Vast, Underused Workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Topic Note 2.4: Delivering Content for Mobile Agricultural Services . . . . . . . . . . . . . . . . . . . . . . . . 43 First-Mover Advantage Benefits Reuters Market Light . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Long Experience in Farm Communities Benefits IFFCO Kisan Sanchar Limited . . . . . . . . . . . . . . . 44 Farmer’s Friend Offers Information on Demand, One Query at a Time . . . . . . . . . . . . . . . . . . . . 45 Module 3 Anytime, Anywhere: Mobile Devices and Services and Their Impact on Agriculture and Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Topic Note 3.1: Key Benefits and Challenges Related to Mobile Phones and Agricultural Livelihoods . . . . . . 52 Weather Forecasting Reduces Agricultural Risk in Turkey. . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Mobile Phones Are the Heart of Esoko’s Virtual Marketplace . . . . . . . . . . . . . . . . . . . . . . . . 59 Topic Note 3.2: Two Typologies and General Principles for Using Mobile Phones in Agricultural Projects. . . . . 61 Mobile Service Gives Local and Global Edge to Chilean Farmers . . . . . . . . . . . . . . . . . . . . . . . 65 For Reuters Market Light, the Wider Network of People Matters . . . . . . . . . . . . . . . . . . . . . . 66 Nokia Life Tools Uses Simple Technologies to Deliver New Functionality . . . . . . . . . . . . . . . . . . 68 Module 4 Extending the Benefits—Gender-Equitable, ICT-Enabled Agricultural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Topic Note 4.1: Mobile Finance and Gender in Rural Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Designing Mobile Finance Products for Rural Women in Zimbabwe . . . . . . . . . . . . . . . . . . . . . 86 Topic Note 4.2: Mobile Learning, Gender, and Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Dimitra Clubs: Rural Communities Learn and Mobilize for Change with Participatory Communication Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Participatory Community Video Highlights Local Agriculture-Nutrition Links and Best Practices for Health . . . . 92 Talking Books Deliver Valuable Advice, No Reading Required . . . . . . . . . . . . . . . . . . . . . . . . . 93 I C T I N AG R I C U LT U RE VI C ONTENTS ENHANCING PRODUCTIVITY ON THE FARM Module 5 Increasing Crop, Livestock, and Fishery Productivity Through ICT . . . . . . . . . . 99 Topic Note 5.1: Achieving Good Farming Practices through Improved Soil, Nutrient, and Land Management . . . 105 Seeing-Is-Believing Project Improves Precision Farming . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Improving Nitrogen Fertilization in Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Monitoring Livestock to Prevent Pasture Damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Topic Note 5.2: Preventing Yield Losses through Proper Planning and Early Warning Systems . . . . . . . . . . 117 Radio Frequency Identification to Prevent and Treat Cattle Disease in Botswana . . . . . . . . . . . . . . 122 Digital Orthophoto Quads Form a Database for the Dominican Republic . . . . . . . . . . . . . . . . . . . 123 Using Landsat to Assess Irrigation Systems in Mali. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Module 6 ICTs, Digital Tools, and Agricultural Knowledge and Information Systems . . . . . 127 Topic Note 6.1: ICT, Digital Tools, and Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Fujitsu “Akisai” Cloud Initiative for the Food and Agricultural Industries and Research . . . . . . . . . . . 142 KAINet Kenya Knowledge Network Anchored in Partnerships and Collaboration . . . . . . . . . . . . . . . 142 Topic Note 6.2: ICT, Digital Tools, and Extension and Advisory Services . . . . . . . . . . . . . . . . . . . . . . 143 E-Extension with a Business Orientation in Jamaica’s Rural Agricultural Development Authority (RADA) . . . 152 Videos on Rice Seed Production Bring Multiple Benefits to Bangladeshi Women . . . . . . . . . . . . . . 153 Participatory Video and Internet Complement Extension in India . . . . . . . . . . . . . . . . . . . . . . . 154 Topic Note 6.3: ICT, Digital Tools, and E-Learning and Education in Agriculture . . . . . . . . . . . . . . . . . . 155 Lifelong Learning for Farmers in Tamil Nadu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Innovative E-Learning for Farmers through Collaboration and Multimodal Outreach . . . . . . . . . . . . . 160 Module 7 Broadening Smallholders’ Access to financial Services through ICT . . . . . . . . 165 Topic Note 7.1: The Use of ICT-enabled Financial Services in the Rural Sector . . . . . . . . . . . . . . . . . . 169 Linking Conditional Cash Transfers and Rural Finance in Brazil . . . . . . . . . . . . . . . . . . . . . . . . 173 RFID Facilitates Insurance and Credit for India’s Livestock Producers . . . . . . . . . . . . . . . . . . . . 175 Topic Note 7.2: Policy Strategies and Regulatory Issues for ICT-enabled Rural Financial Services . . . . . . . . 177 Kenya’s DrumNet Links Farmers, Markets, and Financial Service Providers . . . . . . . . . . . . . . . . . 178 A Common Platform Delivers Financial Services to Rural India . . . . . . . . . . . . . . . . . . . . . . . . 181 Module 8 Farmer Organizations Work Better With ICT . . . . . . . . . . . . . . . . . . . . . 187 Topic Note 8.1: Finding Better Markets and Sharing Technical Information . . . . . . . . . . . . . . . . . . . . 193 Zambia’s National Farmer Organization Develops a Text-Based Service . . . . . . . . . . . . . . . . . . . 201 The Sounong Search Engine for Farmer Organizations in China . . . . . . . . . . . . . . . . . . . . . . . 202 Field Data Collection Tool for Certified Farmer Groups in Sustainable Agriculture . . . . . . . . . . . . . . 204 Topic Note 8.2: Dairy Cooperatives Lead the Way with Computerized Systems to Improve Accounting, Administration, and Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 IT Tools for India’s Dairy Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 CoopWorks Dairy and Coffee, Open Source Software Launched in Kenya . . . . . . . . . . . . . . . . . . 210 ICT Improves Marketing and Governance for a Malian Cooperative . . . . . . . . . . . . . . . . . . . . . 212 Topic Note 8.3: Giving Farmers a Voice and Sharing Information . . . . . . . . . . . . . . . . . . . . . . . . . 213 Community Listeners’ Clubs Empower Social Networks in Rural Niger . . . . . . . . . . . . . . . . . . . 216 Through Social Media, a Women’s Producer Network in Caribbean Small Island States Improves Its Communication Capacity, Outreach, and Knowledge Management . . . . . . . . . . . . . . . . . . . 217 The Case of the Pan-African Farmers’ Organization (PAFO) . . . . . . . . . . . . . . . . . . . . . . . . . . 218 ICT IN AGR IC ULTUR E C O NT E NT S V II ASSESSING MARKETS AND VALUE CHAINS Module 9 Strengthening Agricultural Market Access with ICT . . . . . . . . . . . . . . . . . 225 Module 10 ICT Applications for Agricultural Risk Management . . . . . . . . . . . . . . . . 257 Topic Note 10.1: ICT Applications for Mitigating Agricultural Risk . . . . . . . . . . . . . . . . . . . . . . . . . 262 Through mKRISHI, Farmers Translate Information into Action to Mitigate Risk . . . . . . . . . . . . . . . . 266 Topic Note 10.2: ICT Applications to Transfer Agricultural Risk . . . . . . . . . . . . . . . . . . . . . . . . . . 268 ICT Enables Innovative Index-Based Livestock Insurance in Kenya . . . . . . . . . . . . . . . . . . . . . . 270 Kilimo Salama Delivers Index-Based Input Insurance in Kenya through ICT. . . . . . . . . . . . . . . . . . 272 Topic Note 10.3: ICT Applications for Coping with Agricultural Risk . . . . . . . . . . . . . . . . . . . . . . . . 273 Electronic Vouchers Are a Targeted, Traceable Lifeline for Zambian Farmers . . . . . . . . . . . . . . . . 275 Community Knowledge Workers in Uganda Link Farmers and Experts to Cope with Risk . . . . . . . . . . 277 Module 11 Global Markets, Global Challenges: Improving Food Safety and Traceability while Empowering Smallholders through ICT. . . . . . . . . . . . . . . . . . . . . . . . . . 283 Topic Note 11.1: The Importance of Standard Setting and Compliance . . . . . . . . . . . . . . . . . . . . . . 296 Mango Traceability System Links Malian Smallholders and Exporters to Global Consumers . . . . . . . . . 299 Topic Note 11.2: Traceability Technologies, Solutions, and Applications . . . . . . . . . . . . . . . . . . . . . . 300 ShellCatch in Chile Guarantees Origin of the Catch from Artisanal Fishers and Divers . . . . . . . . . . . . 304 IMPROVING PUBLIC SERVICE PROVISION Module 12 Strengthening Rural Governance, Institutions, and Citizen Participation Using ICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 Topic Note 12.1: Public Agencies and the Provision of E-Government. . . . . . . . . . . . . . . . . . . . . . . 316 Building Public Service Provision through Internet Applications. . . . . . . . . . . . . . . . . . . . . . . . 319 Agricultural and Rural Information through Ministerial Websites . . . . . . . . . . . . . . . . . . . . . . . 321 Using Biometrics to Provide Rural Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 E-Government to Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 E-Government to Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 Topic Note 12.2: Civil Society and the Provision of E-services . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 Providing ‘Hubs’ for ICT Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 E-Learning through the Web and SMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 Collecting Data to Protect Local Knowledge and Ecosystems . . . . . . . . . . . . . . . . . . . . . . . . 331 Topic Note 12.3: Increasing Citizen Participation through E-democracy . . . . . . . . . . . . . . . . . . . . . . 332 Information Kiosks in India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333 Virtual Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334 Government Responsiveness through Citizen Participation in Digitized Political Processes . . . . . . . . . 334 Digital Media Forums in Developing Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Module 13 ICT for Land Administration and Management . . . . . . . . . . . . . . . . . . . 341 Topic Note 13.1: Supporting Land Markets with ICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 ICT-Based Property Value Estimate Information Services . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 European Land Information Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 I C T I N AG R I C U LT U RE VIII C ONTENTS Topic Note 13.2: ICT Support for Land Management, Planning, Development, and Control . . . . . . . . . . . . 356 E-Planning Portal in Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Virtual Landscape Theatre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Topic Note 13.3: ICT Support for Land Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 Sweden’s Large-Scale Land Consolidation Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358 Turkey Land Consolidation Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359 Topic Note 13.4: ICT Support FOR Good Governance in Land Administration . . . . . . . . . . . . . . . . . . . 360 ICT and the Land Governance Assessment Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Improving Public Access to Land Administration Services in Indonesia. . . . . . . . . . . . . . . . . . . . 361 Topic Note 13.5: Public sector Information Policy Supporting Effective ICT-based Information Services . . . . . 362 A Policy Framework to Support the Lao PDR’s National Land and Natural Resource Information System . . . 363 Vietnam’s One-Stop Shop for E-Government Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 Topic Note 13.6: Sustainable Funding of ICT in Land Administration. . . . . . . . . . . . . . . . . . . . . . . . 364 ICT-Derived Efficiencies in the Kyrgyz Republic Benefit Land Office Staff . . . . . . . . . . . . . . . . . . 366 The Philippines: A Public-Private Approach to ICT Financing and Risk Sharing . . . . . . . . . . . . . . . . 366 Topic Note 13.7: Designing Scalable and Interoperable Land Information Infrastructures . . . . . . . . . . . . . 366 Combining Open Source Solutions with Open Geospatial Consortium Standards . . . . . . . . . . . . . . 367 The Kyrgyz Republic’s Open Source Strategy and GIS Solutions . . . . . . . . . . . . . . . . . . . . . . . 368 Social Tenure Domain Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 Module 14 Using ICT to Improve Forest Governance . . . . . . . . . . . . . . . . . . . . . . 371 Topic Note 14.1: Pillar 1—Transparency, Accountability, and Public Participation . . . . . . . . . . . . . . . . . 380 Participatory Mapping in Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 The Central Vigilance Commission Website in India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 PoiMapper in Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 Topic Note 14.2: Pillar 2—Quality of Forest Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388 Fire Alert Systems Integrating Remote Sensing and GIS . . . . . . . . . . . . . . . . . . . . . . . . . . . 392 Kenya: Solving Human/Elephant Conflicts with Mobile Technology . . . . . . . . . . . . . . . . . . . . . . 392 Topic Note 14.3: Pillar 3—Coherence of Forest Legislation and THE Rule of Law . . . . . . . . . . . . . . . . . 393 Ghana’s National Wood Tracking System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396 Liberia: LiberFor Chain of Custody. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 Topic Note 14.4: Pillar 4—Economic Efficiency, Equity, and Incentives . . . . . . . . . . . . . . . . . . . . . . 398 RFID Chips for Efficient Wood Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 Module 15 Using ICT for Remote Sensing, Crowdsourcing, and Big Data to Unlock the Potential of Agricultural Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . 401 Topic Note 15.1: Remote Sensing for Sustainable Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . 407 Using Multispectral Satellite Images and Energy Surface Balance Models to Calculate Crop and Water Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411 Topic Note 15.2: Crowdsourcing and Crowdmapping: The Power of Volunteers . . . . . . . . . . . . . . . . . 412 Crowdsourcing Supplier Data via Mobile Phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 Combining Gaming and Crowdsourcing to Identify and Monitor Cropland . . . . . . . . . . . . . . . . . . 417 ICT IN AGR IC ULTUR E C O NT E NT S IX Topic Note 15.3: Big Data for Analytics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418 Generating Open Access, Spatially Explicit Data Sets, and Analyses for More Productive Farming and Better Livelihoods in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424 The ILSI Crop Composition Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426 Using Big Data to Provide Localized Weather and Agronomic Information to Producers . . . . . . . . . . . 426 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 I C T I N AG R I C U LT U RE X FIGUR ES LIST OF FIGURES Figure 1.1. Percentage of the World’s Population Covered by a Mobile Cellular Signal . . . . . . . . . . . . . . . . . . . 6 Figure 1.2. African Undersea Cables, Those Working and Those in Development . . . . . . . . . . . . . . . . . . . . . 7 Figure 1.3. Global ICT Development, 2000–10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 2.1. Access to ICT Infrastructure, Appliances, in Services and the Access Rainbow. . . . . . . . . . . . . . . . 17 Figure 2.2. Access to ICT by Level of Development, Based on the ICT Development Index . . . . . . . . . . . . . . . 18 Figure 2.3. ICT Price Subbaskets by Level of Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Figure 2.4. Telecommunications, IT, and Media Industry Convergence . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Figure 3.1. Global Mobile Cellular Subscriptions, Total and per 100 Inhabitants, 2000–10 . . . . . . . . . . . . . . . . 50 Figure 3.2. Information Search Cost by Stage of Farming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Figure 4.1. Mobile Phone Ownership in Low- and Middle-Income Countries . . . . . . . . . . . . . . . . . . . . . . . 73 Figure 4.2. Women Predominate among Illiterate Adults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Figure 5.1. Defining the Relationship Between Types of ICT and Yield Technologies . . . . . . . . . . . . . . . . . . . 102 Figure 5.2. Organic Carbon, Share in Subsoils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Figure 5.3. Wireless Sensor Network (WSN), Distributed Collection Architecture . . . . . . . . . . . . . . . . . . . . 112 Figure 5.4. Akvasmart Doppler Pellet Sensor Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Figure 5.5. Precision Farming through Satellite Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Figure 6.1. Knowledge Sharing and Collaboration Tools in the Research Cycle . . . . . . . . . . . . . . . . . . . . . . 134 Figure 7.1. Smallholder Farmers Are the Largest Group of Working-Age Poor . . . . . . . . . . . . . . . . . . . . . . 165 Figure 7.2. Low Access to Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Figure 7.3. Low Utilization of Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Figure 7.4. Access Is Worse for Farmers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Figure 7.5. Commercial Banks Are Main Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Figure 7.6. ICT and the Rural Finance Ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Figure 7.7. Channels for Financial Inclusion for Bolsa Família Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . 174 Figure 7.8. Benefits to Stakeholders in DrumNet’s Sunflower Supply Chain Partnerships . . . . . . . . . . . . . . . . 179 Figure 7.9. Flow of Goods, Information, and Money in DrumNet’s Sunflower Supply Chain Partnerships . . . . . . . . 180 Figure 7.10. Other Types of ICT Used by Financial Inclusion Network and Operations . . . . . . . . . . . . . . . . . . . 182 Figure 7.11. Cost Structure of Microfinance Institutions (MFIs) in India . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Figure 7.12. Financiers of Financial Inclusion Network and Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 Figure 8.1. Conceptual Technological Framework for the SOUNONG Search Engine . . . . . . . . . . . . . . . . . . . 203 Figure 9.1. Percentage of Farmers in India Relying on a Given Information Source . . . . . . . . . . . . . . . . . . . . 227 Figure 9.2. Farmers’ Differing Information Priorities and Sources of Market Information in Indonesia, India, and Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Figure 9.3. Commercial Farmers’ Information Needs and Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 Figure 9.4. Market Information Affects Farmers’ Profits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Figure 9.5. ICT Input for Marketing along the Agricultural Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Figure 10.1. Ownership of Radios and Mobile Phones in Ghana, Kenya, and Zambia, 2010 . . . . . . . . . . . . . . . . 264 ICT IN AGR IC ULTUR E FI G U R E S XI Figure 10.2. The mKRISHI Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 Figure 10.3. Value and Quantity of Electronic Voucher Transactions in Zambia, 2010. . . . . . . . . . . . . . . . . . . . 277 Figure 11.1. Coffee: Attributes of Interest and Depth of Traceability . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 Figure 11.2. Mobile Technology as a Key Enabler of Information Counterflow from Farmers to Markets . . . . . . . . . 289 Figure 11.3. Soybean Traceability System in Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 Figure 11.4. Scottish Borders TAG Cattle Tracing System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 Figure 11.5. Incentives for Investment in Traceability Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 Figure 11.6. Peanut Corporation of America Recall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295 Figure 11.7. Fresh Food Trace Web Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Figure 11.8. ICT Enables Information Flow from Farmers to Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Figure 11.9. Embayment Management and Shellfish Traceability in Chile . . . . . . . . . . . . . . . . . . . . . . . . . 304 Figure 12.1. Relationships Between Key Stakeholders in the Agrarian Sector . . . . . . . . . . . . . . . . . . . . . . . 313 Figure 12.2. Singular Infrastructure versus Centralized Infrastructure in India . . . . . . . . . . . . . . . . . . . . . . . 320 Figure 13.1. Benefits of Good Land Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Figure 13.2. Evolution of ICT in Land Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Figure 13.3. Sustainable Development Needs Both Urban and Rural Inputs . . . . . . . . . . . . . . . . . . . . . . . . 353 Figure 13.4. Influences on the Land Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354 Figure 13.5. A Property Information Service in the United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 Figure 13.6. Example of E-Planning Portal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 Figure 13.7. Parcels Before and After Land Consolidation with New Irrigation Network . . . . . . . . . . . . . . . . . . 359 Figure 15.1. Example of a Big Data Analytics Ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 Figure 15.2. Life Cycle of Digital Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419 Figure 15.3. Big Data Maturity Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423 I C T I N AG R I C U LT U RE XI I IM AGES LIST OF IMAGES Image 1.1. Soil Data Can Be Collected and Disseminated Using Various Types of ICT . . . . . . . . . . . . . . . . . . . 5 Image 1.2. Google Map of Kampala, Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Image 1.3. Public-Private Partnerships Often Lead to More Sustainable Services for Rural People. . . . . . . . . . . . . 9 Image 1.4. Determining Levels of Inclusiveness Is a Critical Factor in ICT Interventions . . . . . . . . . . . . . . . . . 11 Image 1.5. A Collaborative Effort Among Many Actors Is Important for ICT in Agriculture . . . . . . . . . . . . . . . . 12 Image 2.1. Cell Services in Rural South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Image 2.2. Ghana’s Telecommunications Infrastructure Expands the Use of Mobile Money . . . . . . . . . . . . . . . 36 Image 2.3. Girl Uses Phone in Community Meeting in India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Image 3.1. Mobile Phones Can Help Fishermen Sell Their Catch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Image 3.2. Other Challenges, Like Inadequate Transportation, Affect Mobile Phone Success . . . . . . . . . . . . . . 64 Image 3.3. The Reuters Market Light Interface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Image 3.4. The Agriculture Package in Nokia Life Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Image 4.1. Population of Unconnected Women in Low- and Middle-Income Countries. . . . . . . . . . . . . . . . . . 73 Image 5.1. Nitrogen-Sensor Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Image 5.2. WSN Can Help Monitor the Quality of Pastures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Image 5.3. Farmers Learn to Use Images of Their Farms to Improve Productivity and Resource Management . . . . . 115 Image 5.4. Infrared Sensor Technology Increases the Cost-Efficiency of Nitrogen Fertilizer Applications in the Yaqui Valley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Image 5.5. Mobile Applications Help to Monitor and Protect Fishers . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Image 5.6. Satellite Image of Vegetation Changes from 1998 to 2004 (Red Indicates Decreasing Vegetation and Green Indicates an Increase) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Image 5.7. Two Examples of Digital Orthophoto Quads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Image 6.1. Specialized Knowledge on Farm Practices Can Result in Profitable Enterprise . . . . . . . . . . . . . . . . 129 Image 6.2. ICT must be Complemented by Other Inputs, Such as Improved Seedlings . . . . . . . . . . . . . . . . . 131 Image 6.3. Accessing Private Sector Research Could Have Wide Impacts on Poor Agriculture. . . . . . . . . . . . . . 140 Image 6.4. Matching ICT to the Diverse Needs of Farmers Is Critical . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Image 6.5. Timely Advisory Services Improve the Effectiveness of Other Technologies . . . . . . . . . . . . . . . . . 145 Image 6.6. New Technologies Have Allowed for More Innovative Radio Programs . . . . . . . . . . . . . . . . . . . . 148 Image 6.7. Farmer-Led Documentation Processes Can Use Digital Tools in Place of Paper. . . . . . . . . . . . . . . . 150 Image 6.8. Women Who Saw Instructional Videos Produced Healthier Seeds, Earned More, and Gained Confidence in Seeking and Sharing New Information . . . . . . . . . . . . . . . . . . . . . . . . . 154 Image 6.9. Increased Household Rice Stocks in a Video Village in Northwestern Bangladesh . . . . . . . . . . . . . . 154 Image 6.10. E-Learning Creates Opportunities for Rural Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Image 6.11. Women Use Mobile Phones to Learn Better Goat Production Techniques . . . . . . . . . . . . . . . . . . 159 Image 7.1. RFID Can Be Used to Track Cattle and Manage Herds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Image 8.1. Women’s Cooperative Processing Shea Butter in Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Image 8.2. ICT Programs Like SOUNONG Help Cooperatives Identify Livestock Disease . . . . . . . . . . . . . . . . 203 ICT IN AGR IC ULTUR E I M AG E S X III Image 8.3. Many Enablers Are Needed to Ensure Cooperatives Function . . . . . . . . . . . . . . . . . . . . . . 207 Image 8.4. Clara Moita, Broadcaster with Radio 5 in Arusha, Tanzania . . . . . . . . . . . . . . . . . . . . . . . . 214 Image 9.1. Market Information Tools Used by Smallholder Farmers . . . . . . . . . . . . . . . . . . . . . . . . . 239 Image 9.2. Schematic Presentation of TruTrade Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Image 9.3. Billboard for Zero-Cost EAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 Image 9.4. Timely and Efficient Data Collection by Farmforce Frees Time for Farmer Training . . . . . . . . . . . . 251 Image 9.5. Steps of the Farmbook Business Support Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Image 10.1. Unexpected Changes in Climate Contribute to Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 Image 10.2. The mKRISHI Interface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 Image 10.3. Pastoralism in Africa Is a Critical Means to Rural Livelihoods . . . . . . . . . . . . . . . . . . . . . . 271 Image 10.4. Normalized Difference Vegetation Index, Marsabit District, Kenya, February 2010 . . . . . . . . . . . 272 Image 10.5. Weather Station in Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 Image 10.6. Map of Flood Reports, Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 Image 10.7. Transactions Using Mobile Phones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 Image 10.8. Community Knowledge Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 Image 11.1. Mango Growers in Mali Use Mobile Devices to Log Traceability Data . . . . . . . . . . . . . . . . . . 299 Image 12.1. Online Access to Public Data, Such as the Ghana Living Standards Surveys, Can Stimulate Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Image 12.2. Biometric Identification Can Replace Traditional Forms of Identification . . . . . . . . . . . . . . . . . 323 Image 12.3. One-Stop Shops Using ICT Can Increase Efficiencies in SME Start-Ups . . . . . . . . . . . . . . . . . 325 Image 12.4. mLab in East Africa Assists Agricultural Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . . . 329 Image 12.5. CyberTracker Gives Users Icon and Word Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 Image 12.6. Rural Kiosks Can Lead to Information Sharing Between Agrarian Communities . . . . . . . . . . . . . 333 image 12.7. ICT Can Support Well Water Infrastructure Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . 336 Image 13.1. Women Use GIS Instruments to Map Land and Measure Soil Qualities . . . . . . . . . . . . . . . . . 350 Image 13.2. LARASITA: A Mobile Land Office in Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362 Image 14.1. Scanning Barcodes in Forests Enhances Forest Management . . . . . . . . . . . . . . . . . . . . . . 372 Image 14.2. Long-Term Investments Are Critical to Scaling Up Interventions . . . . . . . . . . . . . . . . . . . . . 378 Image 14.3. User-Friendly Tools Allow Local Participation in Forest Mapping . . . . . . . . . . . . . . . . . . . . . 385 Image 14.4. POIMapping in Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388 Image 14.5. Satellite Imagery Can Map Levels of Vegetation, Forest Cover, and Forest Degradation . . . . . . . . . 390 Image 14.6. Tracking through Barcodes, RFID, GPS, and Other Technologies Improves the Chain of Custody . . . . 396 Image 14.7. Online Timber Sales in the UK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 Image 15.1. Different Spectral Bands for Satellite Imagery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408 Image 15.2. Examples of Low- and High-Resolution Pimapping Data . . . . . . . . . . . . . . . . . . . . . . . . . 411 Image 15.3. Screenshot of Cropland Capture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 Image B15.10.1. HarvestChoice’s Mappr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 Image B15.10.2. HarvestChoice’s grid-based multi-disciplinary indicator database (CELL5M) . . . . . . . . . . . . . . . 425 Image 15.4. Screenshot of aWhere’s Online Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428 I C T I N AG R I C U LT U RE XI V TA B LES LIST OF TABLES Table 1.1. Themes Treated in Sourcebook Modules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Table 2.1. Characteristics of Universal Access and Universal Service . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Table 2.2. Key Enabling Factors for Innovations in Rural ICT Provision in Nigeria, Turkey, South Africa, and Bhutan . . . . 35 Table 2.3. Lessons Learned from Rural ICT Provision in Nigeria, Turkey, South Africa, and Bhutan . . . . . . . . . . . 35 Table 2.4. Key Enabling Factors for Innovations in Mobile Financial and Income Services Worldwide . . . . . . . . . . 42 Table 2.5. Lessons Learned from Mobile Financial and Income Services in Rural Areas . . . . . . . . . . . . . . . . 42 Table 2.6. Key Enabling Factors for Delivering Agricultural Information to Farmers in India and Uganda. . . . . . . . . 46 Table 2.7. Lessons Learned in Delivering Agricultural Information to Farmers in India and Uganda . . . . . . . . . . . 47 Table 3.1. The Impact of Mobile-Based Livelihood Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Table 3.2. Various Roles for Mobile Phones in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Table 6.1. Objectives and Achievements of ICT to Support RADA Extension Services . . . . . . . . . . . . . . . . . 153 Table 8.1. Specific Types of ICT Discussed in This Module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 Table 9.1. Summary of ICT’s Impact on Farmers’ Prices and Incomes, Traders’ Margins, and Prices to Consumers. . . . 228 Table 9.2. Current and Future Roles of ICT in Agricultural Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . 229 Table 9.3. Agricultural Interventions Made through e-Choupal Kiosks and Their Effects . . . . . . . . . . . . . . . . . 235 Table 9.4. Information Priorities of Farmers Using Mobile Phone in India . . . . . . . . . . . . . . . . . . . . . . . . 241 Table 9.5. TruTrade Transactions and Payments to White Sorghum Producers, Uganda, 2015/16. . . . . . . . . . . . . 243 Table 10.1. Farmers’ Information Needs in Relation to the Crop Cycle and Market . . . . . . . . . . . . . . . . . . . . 260 Table 11.1. Examples of Food Safety Outbreaks, 1971–2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 Table 11.2. Traceability Systems Adopted in Developing Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 Table 11.3. Examples of Food Traceability–Related Regulations and Standards, with Particular Application in Food Safety and Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 Table 11.4. Traceability Applications in Agriculture and Agrifood Systems . . . . . . . . . . . . . . . . . . . . . . . . . 300 Table 12.1. Examples of ICT in E-Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 Table 12.2. E-Government Stages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 Table 12.3. ICT-Enabled Agriculture Interventions and Their Impact on Rural Governance . . . . . . . . . . . . . . . . 318 Table 12.4. Comparing Costs for Electronic Toll Collection, India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 Table 13.1. Where Registering Property Is Easy and Where It Is Not . . . . . . . . . . . . . . . . . . . . . . . . . . . 346 Table 14.1. Pillars of Forest Governance and ICT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376 Table 14.2. Summary of Field Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 IC T IN AGR IC ULTUR E B OX E S XV LIST OF BOXES Box 1.1. Globalizing Food Markets and New Challenges for Smallholder Farmers . . . . . . . . . . . . . . . . . . . . 4 Box 2.1. The Risks of Picking Winners in the Rapidly Evolving IT Industry . . . . . . . . . . . . . . . . . . . . . . . 19 Box 2.2. Singapore’s Simplified Licenses Encourage Innovative, Cost-Effective ICT Infrastructure . . . . . . . . . . 20 Box 2.3. Balancing Quality and Service in Reaching Rural Areas: Fixed-Line versus Wireless Backhaul. . . . . . . . . . . . . 23 Box 2.4. Chile’s ICT Policies for Connectivity and Economic Growth . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Box 2.5. Lessons from South Africa’s Experience in Migrating to Digital Television . . . . . . . . . . . . . . . . . . 25 Box 2.6. CDMA450 Technology Connects Rural Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Box 2.7. Mobile Phones with Features Attract Rural Users in China and Beyond . . . . . . . . . . . . . . . . . . . 27 Box 2.8. MXit Blends Entertainments and Practical Content in South Africa . . . . . . . . . . . . . . . . . . . . . . 28 Box 2.9. India Exemplifies Evolution in the Public Provision of Low-Cost Devices . . . . . . . . . . . . . . . . . . . 30 Box 3.1. What Is a Mobile Application? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Box 3.2. Mobile Phones Enable Kerala Fishers to Identify Better Markets . . . . . . . . . . . . . . . . . . . . . . . 53 Box 3.3. One Device, Many Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Box 3.4. Mobile Phones, Agriculture, and Gender. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Box 3.5. An Esoko Transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Box 3.6. Kilimo Salama Demonstrates the Convergence of Mobile Phones and Sophisticated Mobile Services . . . . 63 Box 4.1. Seven Critical Factors for the Success of ICT in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Box 4.2. The Gender Divide in Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Box 4.3. Remote Control for Irrigation Alleviates Time and Mobility Constraints . . . . . . . . . . . . . . . . . . . . 74 Box 4.4. A Step-by-Step Guide to Introducing ICT-Based Solutions with a Gender Focus on Agricultural Projects . . . 77 Box 4.5. Esoko’s Mobile Market Information Service Reaches Farmers in 16 African Countries, but Finds a Gender Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Box 4.6. Women Advancing Agriculture Promotes Equal Access to Information through Voice Messaging . . . . . . 81 Box 4.7. Mobile Finance Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Box 4.8. Evidence of Positive impacts of Mobile Financial Services on Women’s Finance and Business Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Box 4.9. Positive Impacts from M-Pesa in East Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Box 4.10. Mobile Learning Expands Women’s Livestock Rearing and Business Skills . . . . . . . . . . . . . . . . . . 88 Box 4.11. Mobile Learning in Local Languages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Box 4.12. Videos Easily Adapt to Local Audiences to Build Women’s Knowledge of Maternal and Child Nutrition . . . 89 Box 4.13. Adapting Mobile Phone Use to Sociocultural Norms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Box 4.14. Women and the Web Alliance—Training That Empowers Women and Girls Online. . . . . . . . . . . . . . 91 Box 4.15. An Open Course on Digital and Mobile Learning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Box 5.1. The Food Security Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Box 5.2. Gender in Agricultural Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Box 5.3. Using Remote Sensors and Similar Tools to Measure Soil Properties . . . . . . . . . . . . . . . . . . . . . 106 Box 5.4. Collecting African Soil Data over Time to Understand Soil Degradation Trends . . . . . . . . . . . . . . . . 107 I C T I N AG R I C U LT U RE XV I B OX ES Box 5.5. Rewarding Farmers for Carbon Sequestration in Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Box 5.6. Web-Based GIS for Paddy Precision Farming, Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Box 5.7. Crowdsourcing Prevents Cassava Losses in Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Box 5.8. Modeling India’s Groundnut Yield through Climate Information . . . . . . . . . . . . . . . . . . . . . . . . 119 Box 6.1. Cloud Computing Improves Open Access and Open Data in Agriculture while Integrating New Technologies for New Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 Box 6.2. Agricultural Research Center Facilitates Open Access and Global Platform for Sharing Knowledge . . . . . 129 Box 6.3. Key Elements of ICT Systems for Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Box 6.4. ICT Engages Stakeholders in Formulating an Ambitious Research Program . . . . . . . . . . . . . . . . . 133 Box 6.5. Rural Tanzanians Update Researchers on Spreading Cassava Diseases . . . . . . . . . . . . . . . . . . . . 133 Box 6.6. Open Applications for Mobile Digital Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Box 6.7. Dataverse: An Open Application for Storing and Analyzing Data. . . . . . . . . . . . . . . . . . . . . . . . 137 Box 6.8. Reference Management Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Box 6.9. Driving Developing-Country Access to Research Results: CIARDRING . . . . . . . . . . . . . . . . . . . . 140 Box 6.10. AgriProfiles, a Global Search Portal of Profiles of Experts and Organizations . . . . . . . . . . . . . . . . . 140 Box 6.11. Interactive Radio Programs Perform Governance Roles and Services . . . . . . . . . . . . . . . . . . . . . 147 Box 6.12. Access Agriculture’s Web and Social Media Platforms for Sharing Training Videos . . . . . . . . . . . . . . 148 Box 6.13. Mobile Phones as Tools for Farmer Surveys and Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . 152 Box 7.1. Farmers Require Four Kinds of Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Box 7.2. ICT Increases the Availability of Rural Finance in South Africa . . . . . . . . . . . . . . . . . . . . . . . . 171 Box 7.3. In Rural Kenya and South Africa, ICT Applications Reduce the Cost of Financial Services . . . . . . . . . . 171 Box 7.4. Increased Operational Efficiency in Africa through ICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 Box 7.5. Financial Service Providers in the United States and Mozambique Use ICT to Improve Risk Management . . . 172 Box 7.6. Using ICT to Identify Financial Service Clients in Africa and South Asia . . . . . . . . . . . . . . . . . . . . 173 Box 8.1. Factors That Can Hamper Women’s Uptake of ICT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 Box 8.2. The Market-Led, User-Owned ICT4Ag-Enabled Information Service (MUIIS), Uganda . . . . . . . . . . . . 194 Box 8.3. Using ICT to Access Market Information: Agricultural Commodity Exchange for Africa (ACE), Malawi . . . . 195 Box 8.4. Farmerline’s Voice Messaging Service Empowers Female Smallholders in Northern Ghana . . . . . . . . . 196 Box 8.5. India’s IKSL: Potential to Reach a Vast Farmer Base with Interactive Ago-Advisory Services . . . . . . . . . 196 Box 8.6. Chile’s Coopeumo and the Mobile Information Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Box 8.7. The e-Granary Platform of the Eastern Africa Farmers Federation. . . . . . . . . . . . . . . . . . . . . . . 197 Box 8.8. A Checklist of Considerations for Designing an Effective, Sustainable, ICT-Based Project to Support Farmer Organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Box 8.9. Considerations for Effectively, Sustainably Computerizing Farmer Organizations and Cooperatives . . . . . 208 Box 8.10. What Is ERP?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Box 8.11. Considerations for Effectively, Sustainably Enabling Farmers to Share Information and Gain a Greater Voice in the Agricultural Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 Box 10.1. Reuters Market Light Disseminates Early Warnings to Mitigate Risk . . . . . . . . . . . . . . . . . . . . . 263 Box 10.2. How Does Insurance Work? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 Box 10.3. What Is Index Insurance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 Box 10.4. Commodity Futures Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 Box 10.5. Information Services Used by Community Knowledge Workers in Uganda . . . . . . . . . . . . . . . . . . 278 Box 13.1. Outcomes of Automating Land Registration in Andhra Pradesh . . . . . . . . . . . . . . . . . . . . . . . . 352 Box 13.2. Augmented Reality in Real Estate Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 Box 13.3. Reducing Corruption in Land Offices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 ICT IN AGR IC ULTUR E B OX E S X V II Box 13.4. Creative Commons Supports Open Government Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . 363 Box 14.1. The Building Blocks of Forest Governance and Their Principal Components . . . . . . . . . . . . . . . . . 373 Box 14.2. Vietnam: Management Information System for the Forestry Sector . . . . . . . . . . . . . . . . . . . . . 374 Box 14.3. Website of the Forestry Commission, United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 Box 14.4. Advocacy and Awareness Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381 Box 14.5. Uganda—Environment Alert: Civil Society Organizations Use ICT in Advocacy Campaigns . . . . . . . . . . 382 Box 14.6. How Can Community Radio Benefit Forest Governance? . . . . . . . . . . . . . . . . . . . . . . . . . . . 383 Box 14.7. Public Participation and Crowdsourcing of Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 Box 14.8. Citizen-Powered Urban Forest Map of San Francisco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 Box 14.9. MESTA: Participatory Forest Management Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 Box 14.10. UNODC’s “Go” Family of Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 Box 15.1. The Intersection of Remote Sensing, Crowdsourcing, and Big Data . . . . . . . . . . . . . . . . . . . . . 402 Box 15.2. Visualizing Data Sets for Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 Box 15.3. Separating the Hype from Reality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Box 15.4. Monitoring and Evaluating Investments in Remote Sensing, Crowdsourcing, and Big Data for Analytics . . . 406 Box 15.5. Key Terms Used in This Module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407 Box 15.6. The Future of Drones for Smallholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408 Box 15.7. Advances in Remote Sensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Box 15.8. Big Data for Agriculture in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420 Box 15.9. Suggestions for Unleashing the Power of Data for Agriculture . . . . . . . . . . . . . . . . . . . . . . . . 422 Box 15.10. Aggregating and Visualizing Data in Mappr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 I C T I N AG R I C U LT U RE XVIII FOR EWOR D FOREWORD While many societies are transforming through migration to cities, most poor people still live in rural areas and depend largely on agriculture for their livelihood. We have a historic opportunity to reduce poverty and boost shared prosperity while transforming the global food and agriculture sector. Today’s fast-evolving information and communication technology (ICT) represents a tremendous opportunity for rural populations to improve productivity, to enhance food and nutrition security, to access markets, and to find employment opportunities in a revitalized sector. However, realizing this promise requires a long-term commitment to mobilizing timely and relevant resources and expertise, particularly in the face of climate change and food price fluctuations. For this reason, we are pleased to share an updated publication of the popular ICT in Agriculture e-Sourcebook, first launched in 2011. This resource is designed to support practitioners, decision makers, and development partners who work at the intersection of ICT and agriculture. In this revised e-Sourcebook you will find updated modules on ICT in the work of producer organiza- tions; in research, extension and innovation; and in value chains and markets. The module on gender as a crosscutting theme has also been updated, and a new module on Big Data has been added. Our hope is that the updated ICT in Agriculture e-Sourcebook will continue to be a practical guide in understanding current trends, implementing appropriate interventions, and evaluating the impact of ICT interventions in agricultural programs. The publication marries cutting-edge expert knowledge in ICT with empirical knowledge on a wide range of agriculture topics, from governance to supply chain management. The original e-Sourcebook was an endeavor carried out by InfoDev and the Agriculture and Rural Development Department of the World Bank. The update of the ICT in Agriculture e-Sourcebook was led by the World Bank Group’s Food and Agriculture Global Practice, with significant contributions from external partners and experts. This effort was funded jointly by the Government of Finland, the Korea¬--World Bank Partnership Facility, and the World Bank Group. We are grateful for their contributions and we look forward to continuing work that assists countries in meeting their Sustainable Development Goals. Juergen Voegele Senior Director Food and Agriculture Global Practice The World Bank Group ICT IN AGR IC ULTUR E AC K N OW L E D G E ME NT S X IX GLOSSARY ACKNOWLEDGEMENTS The ICT in Agriculture e-Sourcebook, Updated Edition, is made possible by a number of key individuals, donors and partner organizations. The original ICT in Agriculture e-Sourcebook was published in 2011, and financed by the Ministry for Foreign Affairs of Finland under the Finland / infoDev / Nokia program on Creating Sustainable Businesses in the Knowledge Economy, whose generous contributions and ideas served as a foundation for its production. The updated edition was managed by a core team led by Eija Pehu (World Bank Group) and Tim Kelly (infoDev), which included Cory Belden (World Bank), Kevin Donovan (infoDev), Terhi Elisa Havimo (World Bank Group), and Aira Htenas (World Bank Group). In 2016, four of the original modules (namely, Module 4: Extending the benefits: Gender-equitable, ICT-enabled agricultural development, Module 6: ICTs, Digital Tools, and Agricultural Knowledge and Information Systems (new title), Module 8: Farmer organizations work better with ICT, and Module 9: Strengthening agricultural market access and Value Chains with ICT) were updated, and a new module was written (Module 15: Using ICTs for Remote Sensing, Crowdsourcing, and Big Data to Unlock the Potential of Agricultural Data). The Korea–World Bank Partnership Facility generously supported this updated edition. We thank the following authors and contributors of the revised modules; the authors were Alice van der Elstraeten (FAO), Shane Hamill (Consultant), Jeehye Kim (World Bank Group), David Nielson (World Bank Group), Worlali Senyo (Consultant), Sophie Treinen (FAO), and Josh Woodard (FHI 360). The contributing authors include Benjamin Kwasi Addom (CTA), Mechteld Andriessen (eLEAF), Pietro Aldobrandini (FAO), Courtney Cohen (aWhere), Cindy Cox (IFPRI), Steffen Fritz (IIASA), Drew Johnson (TechnoServe), Jawoo Koo (IFPRI), Morven McLean (ILSI Research Foundation), Christiane Monsieur (FAO), Clare Pedrick (FAO), Gerard Sylvester (FAO); Linda See (IIASA), Tarah Speck (aWhere), and Tobias Sturn (IIASA). The updated e-Sourcebook was refined and improved by a large number of peer reviewers, whose work we grate- fully recognize. Those reviewers include Benjamin Kwasi Addom (CTA), Lyudmila Bujoreanu (World Bank Group), Vikas Choudhary (World Bank Group), Terhi Elisa Havimo (World Bank Group), Sophia Huyer (CIAT-CCAFS), Pekka Jämsén (AgroBIG), Timothy Kelly (World Bank Group), Holger Kray (World Bank Group), Trevor Monroe (World Bank Group), David Nielson (World Bank Group), Judith Payne (USAID), Eija Pehu (World Bank Group), David Spielman (IFPRI) and Sanna-Liisa Taivalmaa (World Bank Group). Very special thanks also goes to our editor, Kelly Cassaday (consultant). The team is grateful to Susan Graham and Jewel McFadden who led the publication process, as well as to the organizations and individuals who contributed photos and other media. This publication benefited from collaboration with the “Innovations in Big Data Analytics” program in the Global Operations Knowledge Management department of the World Bank. The big data program works with teams across the World Bank Group to accelerate the use of big data innovation for development effectiveness. I C T I N AG R I C U LT U RE XX AC K NOWLE D GEM ENTS Acknowledgements for authors, contributors, and reviewers of the original modules of the Sourcebook, published in 2011 Acknowledgement is due to members of the Steering Committee for the Creating Sustainable Businesses in the Knowledge Economy program, including Pertti Ikonen (Nokia) and Amb. Markku Kauppinen (Ministry for Foreign Affairs, Finland), Ilkka Lakaniemi (Nokia), Valerie D’Costa (infoDev) and Janamitra Devan (World Bank Group), Ilari Lindy (World Bank Group), Philippe Dongier (World Bank Group), and Riikka Rajalahti (World Bank Group). We would also like to recognize and thank the original authors of each module, who contributed their expertise and knowl- edge to this project. These authors include Henry Bagazonzya (World Bank Group), Peter Ballantyne (International Livestock Research Institute), Michael Barrett (University of Cambridge), Cory Belden (World Bank Group), Regina Birner (University of Hohenheim), Riccardo del Castello (FAO), Tuukka Castrén (World Bank Group), Vikas Choudhary (World Bank Group), Grahame Dixie (World Bank Group), Kevin Donovan (infoDev), Philip Edge (consultant), Tina George (World Bank Group), May Hani (FAO), Julie Harrod (consultant), Pekka Jamsen (AgriCord), Teemu Jantunen (FM-International Oy FINNMAP), Nithya Jayaraman (consultant), Ajit Maru (Global Forum on Agriculture Research [GFAR]), Suvranil Majumdar (World Bank Group), Cristina Manfre (Cultural Practice, LLC), Robin McLaren (Know Edge Ltd), Kerry McNamara (American University), Estibalitz Morras (FAO), Karin Nichterlein (FAO), Eija Pehu (World Bank), Madhavi Pillai (World Bank), Enrica Porcari (Consultative Group on International Agriculture Research [CGIAR]), Luz Diaz Rios (World Bank Group), Stephen Rudgard (FAO), Zaid Safdar (World Bank), Soham Sen (World Bank Group), Mira Slavova (International Food Policy Research Institute [IFPRI]), Lara Srivastava (Webster University), Victoria Stanley (World Bank), and Sophie Treinen (FAO). The e-Sourcebook was refined and improved by a large number of peer reviewers, whose work is gratefully recognized. These reviewers include Gavin Adlington (World Bank Group), Maria Amelina (World Bank Group), Simon Batchelor (Gamos Ltd), Brian Bedard (World Bank Group), Deepak Bhatia (World Bank Group), Fritz Brugger (Syngenta Foundation), Mark Cackler (World Bank Group), Tuukka Castrén (World Bank Group), Maria Collion (World Bank Group), Kristin Davis (Global Forum on Research and Advisory Services), Grahame Dixie (World Bank Group), Kevin Donavan (infoDev), Fionna Douglas, (World Bank Group), Shaun Ferris (Catholic Relief Services), Alexander Flor (University of the Phillippines), Steve Froggett (United States Department of Agriculture), Aparajita Goyal (World Bank Group), Guillaume Gruere (IFPRI), Willem Heemskerk (Royal Tropical Institute), Peter Jaegar (ACCORD), Teemu Jantunen (FM-International Oy FINNMAP), Mercy Karanja (Gates Foundation), Renate Kloeppinger (World Bank Group), Donald Larson (World Bank), Ilari Lindy (World Bank Group), Calvin Miller (FAO), Ken Lohento (Technical Centre for Agricultural and Rural Cooperation (CTA)), Bart Minten (IFPRI), Jorge A. Muñoz (World Bank), Clare O’Farrell (FAO), Rodo Ortiz (World Bank), Kevin Painting (CTA), Andrea Pape-Christiansen (World Bank Group), Judith Payne (US Agency for International Development (USAID)), Eija Pehu (World Bank), Karl Prince (Iceni Mobile), Riikka Rajalahti (World Bank), Eva Rathgeber (consultant), Lal Rattan (Ohio State University), Mike Robson (FAO), Deborah Rubin (Cultural Practice, LLC), Sandra Sargent (World Bank Group), Andrew Shepard (FAO), and William Zijp (consultant). Very special thanks also goes to our editorial support team, which included Kelly Cassaday (consultant) and Mike Donaldson (consultant). The team is grateful to Kaisa Antikainen (World Bank Group) who led the publication process, as well as to the organizations and individuals who contributed photos and other media. Finally, we would like to thank Kimberly and Ritesh Sanan (both of the World Bank Group) who provided substantial techni- cal web expertise. The team is also grateful to the organizers of infoDev’s 4th Global Forum on Innovation & Technology Entrepreneurship, where the e-Sourcebook was featured and previewed, on May 31, 2011 in Helsinki, Finland. IC T IN AGR IC ULTUR E AC R O N Y MS A N D A BBRE VIAT IONS XXI ACRONYMS AND ABBREVIATIONS 2G, 3G, 4G second-, third-, and fourth-generation [developments in mobile wireless technology] ACDI/VICA Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance AGRIS International System for Agricultural Science and Technology AIS agricultural innovation system B2B business-to-business BSE bovine spongiform encephalopathy C Celsius CaFAN Caribbean Farmers Network CARENAS Communication and Training Centre for Natural Resources Management and Sustainable Agriculture CGIAR Consultative Group on International Agricultural Research CIAT Centro Internacional de Agricultura Tropical (International Center for Tropical Agriculture) CIC community information center (Bhutan) CIMMYT Centro Internacional de Mejoramiento de Maíz y Trigo (International Maize and Wheat Improvement Center) CKW community knowledge worker DIT Department of Information Technology (Bhutan) DFID Department for International Development (UK) DNE Dairy Network Enterprise DOQ digital orthophoto quad e- electronic EAFF Eastern Africa Farmers Federation EAP East Asia and Pacific EARS Environmental Analysis and Remote Sensing ECA Europe and Central Asia ERP enterprise resource planning EU European Union FAPRI Food and Agricultural Policy Research Institute FEPASSI Fédération Provinciale des Professionnels Agricoles de la Sissili (Federation of Agricultural Producers of Sissili Province) FINO Financial Inclusion Network and Operations G2P government-to-person (cash transfer) GAP good agricultural practice Gbps gigabit per second GDP gross domestic product Ghz gigahertz GigE gigabit Ethernet GIS geographical information systems I C T I N AG R I C U LT U RE XXI I ACR ONY MS A ND A BB R EV IATIONS GLN global location number GM genetically modified GNSS global navigation satellite systems GPRS general packet radio service GPS global positioning system GSM Global System for Mobile Communications GTIN global trade item number HACCP hazard analysis and critical control point HIC high-income countries IBLI index-based livestock insurance ICRISAT International Crops Research Institute for the Semi-Arid Tropics ICT information and communication technology ICTs information and communication technologies IDI ICT Development Index IFAD International Fund for Agricultural Development IFC International Finance Corporation IFFCO Indian Farmer’s Fertilizer Cooperative Limited IFMR Institute for Financial Management and Research (India) IFPRI International Food Policy Research Institute IICD International Institute for Communication and Development IITA International Institute of Tropical Agriculture IKSL IFFCO Kisan Sanchar Limited ILRI International Livestock Research Institute IP Internet Protocol IPS Innovative Practice Summary IRRI International Rice Research Institute IT information technology ITU International Telecommunications Union LAC Latin America and Caribbean Lao PDR Lao People’s Democratic Republic LiDAR light detection and ranging m- mobile Mbps megabit per second MENA Middle East and North Africa MFI microfinance institution Mhz megahertz MNO mobile network operator NAIP National Agricultural Innovation Project (India) NARO National Agricultural Research Organisation (Uganda) NGN next-generation network NGO non-governmental organization NSDI national spatial data infrastructure OECD Organisation for Economic Co-operation and Development ICT IN AGR IC ULTUR E AC R O N Y MS A N D A BBRE VIAT IONS X X III OS operating system PDA personal digital assistant PIN personal identification number PKGFS Pudhuaaru Kshetriya Gramin Financial Services PSTNs public switched digital telecommunication networks RFID radio-frequency identification RML Reuters Market Light Rs rupees SA South Asia SCM supply-chain management SDI spatial data infrastructure SIM subscriber identification module SMS short messaging service SSA Sub-Saharan Africa U Sh Uganda shillings UA universal access [to communication networks for ICTs] UA/USFs univeral access/universal service funds UK United Kingdom UNECE United Nations Economic Commission for Europe US universal service [from communication networks for ICTs] USA United States VANS value added network services VAT value-added tax VHRI very high resolution image VoIP Voice over Internet Protocol VSAT very small aperture terminal WFP World Food Programme WG-DSM International Working Group on Digital Soil Mapping WHO World Health Organization WiMAX Worldwide Interoperability for Microwave Access Y Yuan ZNFU Zambia National Farmers Union I C T I N AG R I C U LT U RE SECTION 1 Overview of ICT in Agriculture: Opportunities, Access, and Crosscutting Themes S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 3 Module 1 INTRODUCTION: ICT IN AGRICULTURAL DEVELOPMENT KERRY MCNAMARA (American University), CORY BELDEN (World Bank), TIM KELLY (Infodev, World Bank Group), EIJA PEHU (World Bank), and KEVIN DONOVAN (Infodev, World Bank Group) INFORMATION AND COMMUNICATION the most promise for pro-poor economic growth. In fact, agri- TECHNOLOGY: FINDING A PLACE IN THE culture is around four times more effective at raising incomes AGRICULTURE SECTOR among the poor than other sectors (World Bank 2008). No Information and communication have always mattered in less important, improved agriculture also has a direct impact agriculture. Ever since people have grown crops, raised live- on hunger and malnutrition, decreasing the occurrence of stock, and caught fish, they have sought information from famine, child stunting, and maternal infirmity. one another. What is the most effective planting strategy on steep slopes? Where can I buy the improved seed or feed this Given these challenges, the arrival of information and com- year? How can I acquire a land title? Who is paying the high- munication technology (ICT) is well timed. The benefits of est price at the market? How can I participate in the govern- the Green Revolution greatly improved agricultural produc- ment’s credit program? Producers rarely find it easy to obtain tivity. However, there is a demonstrable need for a new answers to such questions, even if similar ones arise sea- revolution that will bring lower prices for consumers (through son after season. Farmers in a village may have planted the reduced waste and more-efficient supply chain manage- “same” crop for centuries; but over time, weather patterns ment), contribute to “smart” agriculture, and incentivize and soil conditions change and epidemics of pests and dis- farmers (for example, through higher income) to increase eases come and go. Updated information allows farmers to their production. Public and private sector actors have long cope with and even benefit from these changes. Providing been searching for effective solutions to address both the such knowledge can be challenging, however, because the long- and short-term challenges in agriculture, including how highly localized nature of agriculture means that information to answer the abundant information needs of farmers. ICT is must be tailored specifically to distinct conditions. one of these solutions, and has recently unleashed incred- ible potential to improve agriculture in developing countries Agriculture is facing new and severe challenges in its own specifically. Technology has taken an enormous leap beyond right (see box 1.1). With rising food prices that have pushed the costly, bulky, energy-consuming equipment once avail- over 40 million people into poverty since 2010, more effective able to the very few to store and analyze agricultural and interventions are essential in agriculture (World Bank 2011). scientific data. With the booming mobile, wireless, and The growing global population, expected to hit 9 billion by Internet industries, ICT has found a foothold even in poor 2050, has heightened the demand for food and placed pres- smallholder farms and in their activities. The ability of ICT sure on already-fragile resources. Feeding that population will to bring refreshed momentum to agriculture appears even require a 70 percent increase in food production (FAO 2009). more compelling in light of rising investments in agricultural research, the private sector’s strong interest in the develop- Filling the stomachs of the growing population is only one rea- ment and spread of ICT, and the upsurge of organizations son agriculture is critical to global stability and development. committed to the agricultural development agenda. It is also critical because one of the most effective ways of reducing poverty is to invest in and make improvements in But what exactly is ICT? And can it really be useful and cost- the agricultural sector. Even after years of industrialization effective for poor farmers with restricted access to capital, and growth in services, agriculture still accounts for one-third electricity, and infrastructure? First, ICT includes any device, of the gross domestic product (GDP) and three-quarters tool, or application that permits the exchange or collection of of employment in Sub-Saharan Africa. Over 40 percent of data through interaction or transmission. ICT is an umbrella the labor force in countries with per capita incomes in the term that includes anything ranging from radio to satellite imag- range of US$400–1,800 works in agriculture (World Bank ery to mobile phones or electronic money transfers. Second, 2008). Because agriculture accounts for the vast majority of these and other types of ICT have gained traction even in the poor’s livelihood activities, it is also the sector that holds impoverished regions. The increases in their affordability, I C T I N AG R I C U LT U RE 4 MOD ULE 1 — INTROD UC TION: IC T IN AGRICULTURA L D EVELOPM ENT accessibility, and adaptability have resulted in their use, even and adapt to weather conditions) can now be answered faster, within rural homesteads relying on agriculture. New, small with greater ease and increased accuracy. Many of the ques- devices (such as multifunctional mobile phones and nano- tions can also be answered with a dialogue—where farmers, technology for food safety), infrastructure (such as mobile experts, and government can select the best solutions based telecommunications networks and cloud computing facilities), on diverse expertise and experience. and especially applications (for example, those that transfer money or track an item moving through a global supply chain) The types of ICT-enabled services that are useful for improv- have proliferated. Many of the questions asked by farmers ing the capacity and livelihoods of poor smallholders are (including questions on how to increase yields, access markets, growing quickly. One of the best examples of these services BOX 1.1. Globalizing Food Markets and New Challenges for Smallholder Farmers Understanding and addressing global agriculture developments—both advantageous and not—are critical to improving smallholder livelihoods, in which ICT can play a major role. The continued increase in globalization and integration of food markets has intensified competition and efficacy in the agriculture sector, and has brought unique opportunities to include more smallholders in supply chains. Yet in the same vein, agriculture faces a range of modern and serious challenges, particularly in developing countries exposed to price shocks, climate change, and continued deficiencies in infrastructure in rural areas. When commodity prices rise quickly and steeply, they precipitate concerns about food insecurity, widespread poverty, and conflict—more so in countries that import high volumes of staple foods. Globalized food markets also increase the risk that some countries and many smallholders will remain marginalized from the expanding and more profitable agricul- tural value chains (such as premium foods, which have seen an increase in demand due to an expanding middle class) that rely on technical sophistication to ensure speed, scale, and customization. Climate change has also played an acute role in keeping smallholders in the underbelly of value chains. Farmers can no longer rely on timeworn coping strategies when all of their familiar benchmarks for making agricultural decisions— the timing of rains for planting and pasture, the probability of frost, the duration of dry intervals that spare crops from disease—are increasingly less reliable. Severe and unexpected weather is shrinking already-limited yields and promoting migration from rural areas and rural jobs. Weather-related events leave developing-country governments, which lack the resources and the private sector investment to provide risk management instruments, to cope with major crop failures and the displaced victims only after the fact. It is in the context of globalizing agriculture where the need for information becomes most vivid. Smallholders, who still provide a significant portion of the world’s food, need information to advance their work just as much as industrial-scale producers. Comparing the two types of farmers—industrial and small-scale—exemplifies the latter’s disadvantages. Wealthy industrial producers can use the Internet, phone, weather forecasts, other digital tools, and technologies as simple as vehicles and infrastructure as basic as electricity to glean information on prices, markets, varieties, production techniques, services, storage, or processing; but smallholders remain dependent primarily on word of mouth, previous experience, and local leadership. The smallholder disadvantage does not stop there. Financial and insurance services are often out of reach and poorly understood. Key intermediaries like producer organizations and rural institutions (including local government) could help alleviate the disadvantage, but in many places, the former are just emerging and the latter are inefficient and nontranspar- ent. Both require a variety of technical and financial support to grow and become inclusive and effective. Many of these challenges and others can be addressed by using ICT effectively. Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 5 IMAGE 1.1. Soil Data Can Be Collected and so that they can prepare for weather-related events. In Disseminated Using Various Types of ICT resource-constrained environments especially, providers use satellites or remote sensors (to gather temperature data), the Internet (to store large amounts of data), and mobile phones (to disseminate temperature information to remote farmers cheaply)—to prevent crop losses and miti- gate the effects of natural adversities. Other, more-specialized applications, such as software used for supply chain or financial management, are also becom- ing more relevant in smallholder farming. Simple accounting software has allowed cooperatives to manage production, aggregation, and sales with increased accuracy. The Malian Coprokazan, involved in shea butter production, began using solar-powered computers with keyboards adapted to the local language to file members’ records electronically. Along with electronic administration, the coop plans to invest in global positioning system (GPS) technology to obtain certifications and use cameras and video as training materials to raise the quality of production. From 2006 to 2010 alone, the coop’s membership grew from 400 to 1,000 producers (http://www .coprokazan.org/). These examples represent only a minute subset of the information and communication services that can be provided to the agricultural sector through increasingly Source: Neil Palmer, CIAT. affordable and accessible ICT. Hundreds of agriculture- specific applications are now emerging and are showing great promise for smallholders, as illustrated in the more than 200 project-based case studies and examples in this is the use of mobile phones as a platform for exchanging Sourcebook. In order to exploit the possibilities, countries information through short messaging services (SMS). Reuters have two tasks: Market Light, for example, services over 200,000 smallholder subscribers in 10 different states in India for a cost of US$1.50 (A) To empower poor farmers with information and per month. The farmers receive four to five messages per day communication assets and services that will increase on prices, commodities, and advisory services from a database their productivity and incomes as well as protect their with information on 150 crops and more than 1,000 markets. food security and livelihoods, and Preliminary evidence suggests that collectively, the service may have generated US$2–3 billion in income for farmers (B) to harness ICT effectively to compete in complex, (Mehra 2010), while over 50 percent of them have reduced rapidly changing global markets (avoiding falling their spending on agriculture inputs.1 behind the technology curve). ICT-enabled services often use multiple technologies to Accomplishing these tasks requires the implementation provide information (image 1.1). This model is being used of a complex set of policy, investment, innovation, and to provide rural farmers with localized (nonurban) forecasts capacity-building measures, in concert with beneficiaries and other partners, which will encourage the growth of locally appropriate, affordable, and sustainable ICT infra- structure, tools, applications, and services for the rural 1 See Topic Note 9.4 in Module 9. economy. I C T I N AG R I C U LT U RE 6 MOD ULE 1 — INTROD UC TION: IC T IN AGRICULTURA L D EVELOPM ENT Of particular importance, ICT is not an end to agricultural more accurately, subscriber identity module (SIM) cards— development. The excitement generated by ICT as it spreads were expected to be in use worldwide (Wireless Intelligence throughout developing countries has often masked the fact 2011). Mobile phone penetration in the developing world that its contributions to agriculture are both rapidly evolving now exceeds two subscriptions for every three people, and poorly understood. It is too early to have a clear idea, driven by expanding networks in Asia and in Africa. The abil- supported by rigorous analysis, of how ICT supports agricul- ity to purchase a low-cost mobile phone is complemented tural development, and under what conditions. While there by the expansion of telecommunications infrastructure; is credible evidence of a positive impact, questions remain most countries now have more than 90 percent of their about how to make these innovations replicable, scalable, population served by a cell phone signal, including coverage and sustainable for a larger and more diverse population. A in rural areas (see figure 1.1). This rapid expansion results central goal of this Sourcebook is to analyze and disseminate from enabling regulations that ensure competition in the evidence of ICT’s impact on agricultural development and telecommunications sector as well as from high demand for rural poverty reduction, exploring opportunities for long-term mobile phone subscriptions. and expansive efforts. The reach and affordability of broadband Internet is also improving dramatically—though somewhat more slowly—in THE WAY FORWARD: UNDERSTANDING THE WHY developing regions. In 2010, the number of Internet users AND THE HOW surpassed 2 billion and over half of these users are now in Each module in this Sourcebook discusses the key chal- developing countries. Internet connectivity around the world lenges, enablers, and lessons related to using ICT in a spe- has grown exponentially since 2000, by over 480 percent cific subsector of agriculture. These are derived from a range (Internet World Statistics, 2011).The price of bandwidth has of experiences, and summarize the knowledge gained dur- continued to drop as well, driving down the costs of extend- ing pilot projects and wider initiatives. While different in type ing connections to isolated communities. In Sub-Saharan of intervention and approach, a string of themes emerges Africa, which lags other regions in ICT accessibility, a recent from the modules. These themes—namely, the why and surge of investments in international undersea cables and how of using ICT in agricultural development—demonstrate inland infrastructure to complete those connections is mak- the great potential of ICT and help to clarify the way forward. ing ICT services substantially more accessible and affordable across Africa (figure 1.2). By 2010, 12.3 terabits per second of backbone capacity were operational in Africa, up from The Why: Drivers of ICT in Agriculture less than 1 gigabit per second at the start of the decade Five main trends have been the key drivers of the use of (TeleGeography 2011). ICT in agriculture, particularly for poor producers: (1) low-cost and pervasive connectivity, (2) adaptable and more affordable Telecenters or other community-based facilities can provide tools, (3) advances in data storage and exchange, (4) innova- Internet access in locations where broadband is too expensive tive business models and partnerships, and (5) the democra- tization of information, including the open access movement and social media. These drivers are expected to continue FIGURE 1.1. Percentage of the World’s Population shaping the prospects for using ICT effectively in developing- Covered by a Mobile Cellular Signal country agriculture. 2003 2009 Low-Cost and Pervasive Connectivity The pervasiveness of connectivity—to mobile phones, the 10% not covered Internet, and other wireless devices—is due to a number of fac- tors, including decreases in costs, increases in competition, and 39% not covered 61% expansion of last-mile infrastructure. Several trends, working in covered tandem, are making ICT devices and services more affordable 90% covered in ways that also extend access to small-scale producers. Mobile phones are in the vanguard of ICT use in agriculture. By the end of 2011, over 6 billion mobile phone subscriptions—or Source: International Telecommunications Union. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 7 FIGURE 1.2. African Undersea Cables, Those Working and Those in Development This map was produced by the Map Design Unit of The World Bank. IBRD 38933 The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank ESTONIA NOVEMBER 2011 Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. Mediterranean Undersea Cables RUSSIAN FEDERATION RUSSIAN LATVIA 320 gigabits DENMARK FED. Atlas Offshore Active UNITED LITHUANIA KINGDOM THE 1280 gigabits IRELAND NETH. BELARUS SAS-1 Active GERMANY POLAND Highbridge Bude BELGIUM 3840 gigabits LUX. CZECH REP. UKRAINE SEA-ME-WE 4 Active SLOVAK REP. Penmarc'h FRANCE AUSTRIA HUNGARY MOLDOVA 3840 gigabits SWITZ. SLOVENIA ROMANIA I-ME-WE Active CROATIA BOSNIA SERBIA Marseille Monaco Vigo ITALY & HERZ.KOSOVO BULGARIA 3840 gigabits MONTENEGRO FYR KYRGYZ REP. PORTUGAL SPAIN ALBANIA MACEDONIA EIG Active Lisbon Seixal MONACO Palermo TURKEY TURKMENISTAN Sesimbra Chipiona Catania GREECE TAJIKISTAN Portimão Annaba Bizerte CHINA Gibraltar (UK) CYPRUS SYRIAN Asilah ARAB REP. TUNISIA LEBANON Tripoli ISLAMIC REP. Casablanca OF IRAN AFGHANISTAN Tripoli IRAQ ISRAEL West Bank MOROCCO Alexandria and Gaza KUWAIT Cairo Suez JORDAN PAKISTAN Buena Vista BAHRAIN ALGERIA NEPAL Alta Vista QATAR LIBYA ARAB REP. Former Fujairah Spanish OF EGYPT Karachi Sahara SAUDI U.A.E. ARABIA Muscat Jeddah INDIA MAURITANIA Port Sudan OMAN Mumbai Nouakchott CAPE VERDE MALI NIGER Praia SUDAN ERITREA REP. OF YEMEN Dakar To SENEGAL CHAD Malaysia, Banjul Chennai Thailand, BURKINA Singapore THE GAMBIA Bissau FASO Djibouti DJIBOUTI GUINEA BENIN Kochi Conakry NIGERIA GUINEA-BISSAU TOGO SIERRA LEONE CÔTE GHANA ETHIOPIA SRI Freetown D’IVOIRE Cotonou Lagos CENTRAL SOUTH LANKA Lomé Colombo Monrovia Abidjan Accra CAMEROON AFRICAN REP. SUDAN LIBERIA Limbé SOMALIA Douala Kribi MALDIVES To Bata Mogadishu UGANDA Penang Santana Libreville CONGO GABON KENYA DEM. REP. RWANDA EQU. GUINEA OF SEYCHELLES SÃO TOMÉ AND Pointe-Noire CONGO BURUNDI Mombasa Victoria To PRÍNCIPE Fortaleza, Muanda TANZANIA Brazil Dar Es Salaam Cacuaco Luanda COMOROS Moroni ANGOLA Kaouéni MALAWI West Coast ZAMBIA Mayotte (Fr.) 340 gigabits SAT3/SAFE Active MOZAMBIQUE Toamasina 1920 gigabits ZIMBABWE Terre- MAURITIUS Rouge MaIN OnE Active NAMIBIA MADAGASCAR Savanne Saint-Paul 2500 gigabits BOTSWANA Réunion Swakopmund GLO-1 Active Toliary (Fr.) East Coast 320 gigabits 5120 gigabits Maputo SEAS Q3 2012 SWAZILAND WACS Q4 2011 1280 gigabits SOUTH Mtunzini TEAMs Active AFRICA LESOTHO 5120 gigabits 1280 gigabits Seacom Active ACE Q3 2012 Yzerfontein Melkbosstrand Cape Town 1280 gigabits Lion2 Q2 2012 12800 gigabits 1300 gigabits Lion Active SAex Q2 2013 4720 gigabits EASSy Active Source: Adapted from Steve Song, http://manypossibilities.net and TeleGeography. for individuals to use on their own. Internet access is also Adaptable and More Affordable Tools expected to increase through the continued rollout of third- and The proliferation of adaptable and more affordable tech- fourth-generation (3G and 4G) mobile networks that greatly nologies and devices has also increased ICT’s relevance to improve the capacity for carrying data. Smartphones, such smallholder agriculture. Innovation has steadily reduced the as iPhones, which include 3G mobile services with remote purchase price of phones, laptops, scientific instruments, and Internet connection, will increase access to information even specialized software. Agricultural innovation in developed to poor farmers. The International Telecommunication Union countries has become more applicable to developing-country (2010) reports that at the end of 2010, 143 countries offered needs. The intuitive design of many technologies and their commercial 3G services, providing at least 256 kilobits per sec- capacity to convey information visually or audibly make them ond of bandwidth and supplying voice and data simultaneously useful for people with limited formal education or exposure (figure 1.3 shows the slow, but increasing, rate of uptake for to technology. mobile broadband) and other ICT tools. I C T I N AG R I C U LT U RE 8 MOD ULE 1 — INTROD UC TION: IC T IN AGRICULTURA L D EVELOPM ENT FIGURE 1.3. Global ICT Development, 2000–10 100 90 Mobile cellular telephone subscriptions Internet users 80 Fixed telephone lines 70 Per 100 inhabitants Active mobile broadband subscriptions 60 Fixed (wired) broadband subscriptions 50 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: International Telecommunications Union’s World Telecommunication / ICT Indicators database. Mobile-based applications are also becoming more suitable who are most likely to benefit from using e-vouchers to for poor and isolated communities, especially though feature purchase fertilizer). phones. Drawing on simple, available technologies such as SMS, service providers can offer mobile banking, other trans- Advances in Data Storage and Exchange actional services (selling inputs, for example), and information Greatly increased data storage capacity and the ability to services (market price alerts). Other publicly and privately access data remotely and share it easily have improved the provided services, such as extension and advisory services, use of ICT in agriculture. Sharing knowledge and exchanging are delivered over mobiles, which are increasingly not just data have created opportunities to involve more stakehold- “phones” but are actually multifunctional wireless devices. ers in agricultural research—involvement facilitated by an Geospatial information is also becoming easier to access and use as mapping tools, such as Microsoft Earth or Google Maps (image 1.2), bring geographical data information to IMAGE 1.2. Google Map of Kampala, Uganda nonspecialist users. Scientists and development organiza- tions have created substantial sets of georeferenced data on population, poverty, transportation, and any number of other public goods and variables through more afford- able, usable geographic information systems available on standard PCs and mobile devices using Web-based tools. Satellite images and similar representations have improved exponentially in quality and detail. These tools and remote sensors use less energy and require less human attention than in previous years. The capacity to overlay geospatial information with climate and socioeconomic data opens many options for analyzing biophysical trends (such as ero- sion or the movement of pathogens), making projections (about the effects of climate change or the best location of wholesale markets in relation to transportation infrastruc- ture), and selecting particular groups to test new technolo- gies or farming practices (for instance, identifying farmers Source: Google Maps. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 9 improved e-learning environment and networking capacity. because they often lead to increased efficiency and revenue Advances in data storage and sharing have improved the abil- as well as extensions to client bases like isolated farmers. ity to exchange information—for instance, between depart- ments and levels of government—and avoid costs associ- New forms of business incubation and knowledge brokering ated with data transmission charges. are also contributing to ICT in agriculture. The private sector has a keen interest in investing in firms that come out of Improvements in data storage and sharing have underlying such incubation schemes, speculating on the ability of an causes. The capacity of hard drives and the speed of micro- innovative idea to expand into a highly profitable enterprise. processors have continued to rise, making it dramatically Incubators identify additional investors and other suitable cheaper to store data. Cloud computing offers access to partners, including technical experts. In many instances, numerous shared computing resources through the Internet, they develop enterprises through which private and public including sharable tools, applications, and intelligently linked providers of agricultural services collaborate to deliver prod- content and data. These advances address some of the ucts more efficiently to farmers; in developing, sharing, and information and communication constraints of agricultural capitalizing on innovations for agricultural development, they research institutions, government offices, cooperatives, almost always use ICT and often develop new ICT tools. and development organizations. Benefits of enhanced data capacity range from more accurate targeting of agricultural IMAGE 1.3. Public-Private Partnerships Often Lead to development programs to better preparation for handling More Sustainable Services for Rural People surpluses or scarcities at the farm level. New Business Models and Public-Private Partnerships The development and use of many types of ICT originated in the public sector but were quickly dominated by the private sector when their profit potential became clear. The public sector maintains great interest in ICT as a means of provid- ing better public services that affect agriculture (for instance, land registration, forest management, and agricultural exten- sion services), as well as for connecting with citizens and managing internal affairs. Private sector involvement in some of these efforts has enhanced ICT’s access, affordability, and adaptability for development. Unlike other development strategies, which often struggle to survive or be scaled up Source: Nokia. because the public sector cannot fund them, development strategies featuring ICT have benefited from growing private Knowledge brokering, whereby a private enterprise provides sector interest and public demand (image 1.3). information for a fee (for example, farmers obtain market, ICT’s entrepreneurial nature attracts new partnerships and price, crop, and weather information via their mobile phones), forms of investment. Mobile phone applications, software is also gaining traction. This business model reduces the design, local language customization, and remote transac- burden on the public sector while increasing the abilities of tion services represent only a fraction of the opportunities brokers and farmers to profit from information sharing. for continued innovation. Private companies that have invested in technology and applications are often inter- Democratization of Information, the Open Access ested in working with the public sector to provide their Movement, and Social Media products and services to smallholders. Mobile network The democratization of information and science facilitated by operators, for example, can invest by providing large text ICT is also contributing to agriculture and rural development packages at a lower price, collecting premiums, distributing more broadly. Vast quantities of information held by institu- payments, or participating in extending networks to rural tions and individuals are becoming visible, publicly accessi- areas. Commercial enterprises such as processors, input ble, and reusable through the open access movement. Many suppliers, and exporters are also motivated to invest in ICT governments and organizations—such as the World Bank, I C T I N AG R I C U LT U RE 10 MOD ULE 1 — INTROD UC TION: IC T IN AGRICULTURA L D EVELOPM ENT the Food and Agriculture Organization, and the Consultative Concentrate on the Demand, Not on the Technology Group on International Agricultural Research—are aiming to The versatility and near-constant innovation that characterize make data, such as national surveys and research findings, ICT can be a distraction: They can cause interventions to focus publicly available. These actions have not only improved more on the technology than on the priorities of the intended transparency and accountability but have also invited the clients and the trade-offs imposed by resource-constrained public, private, and research sectors to participate in solv- environments. It is important to begin any ICT-in-agriculture ing long-term economic and social problems, including those intervention by focusing on the need that the intervention is involving agriculture. purposed to address—not the need for ICT—but the need for better and more timely market information, better access The expansion of open access software also enables grass- to financial services, timely and appropriate crop and disease roots community organizations to share knowledge with one management advice, stronger links to agricultural value another. Social media, once used purely for entertainment, chains, and so forth. In some cases, ICT will not be an effec- has great potential to be used for knowledge sharing and tive means to meet these needs at all. collaboration, even in agriculture. Although penetration of the most popular social medium, Facebook, was estimated at Years of agricultural development experience show that proj- just 3 percent in Africa and almost 4 percent in Asia in 2010, ects that involve new technologies require farmers’ engage- compared to 10.3 percent (over half a billion users) globally ment, right from the start. Interventions that make meager (Internet World Statistics 2011), recent geopolitical events efforts to involve farmers in planning and design result in low highlight the effectiveness of social media for sharing infor- uptake, trust, and interest. The same is true for programs mation and motivating collective action—two key features of or strategies involving ICT for development. A weak focus agriculture development. on farmers’ needs at the expense of ICT will ignore ancillary needs for investment in human capacity, community partici- Finally, crowdsourcing—in which scientists, governments, pation, or infrastructure. and development organizations request feedback from farm- ers and consumers through devices like mobile phones—is Use Appropriate Technologies also facilitating agriculture development. Farmers can use The attractiveness of the newest types of ICT can lead to a SMS to send critical local agricultural information like inci- preference for the latest technologies at the expense of older dences of pests or crop yields that was previously difficult to technologies (such as radio), yet the newest, most elaborate, obtain without expensive surveys by researchers. Using the or most innovative technology is not automatically the most digital tools available, consumers can also provide informa- appropriate one. Moreover, an innovative mix of technologies tion related to changing consumption patterns and tastes to (for instance, radio programs with a call-in or SMS facility for private enterprise. feedback) can be the most cost-effective solution. A well- reasoned assessment of the trade-offs between the added The How: Lessons Learned So Far cost of a technology or service and benefits relative to other A number of key lessons related to ICT-in-agriculture poli- options (technological and other) is important. cies and projects were gleaned during the research for this The wide coverage of mobile devices reduces but does not e-sourcebook. Using ICT to achieve agricultural develop- eliminate these trade-offs. In considering the appropriate- ment goals requires supplementary investments, resources, ness of technology, assessing the human capital available for and strategies. Flexible but strongly supportive policies and developing and disseminating the ICT device or application is regulations, complementary investments in physical infra- critical. The more complex the technology, the more training structure, support for men and women farmers of different and (qualified) extension support it will require. In environ- age groups, technological appropriateness, and enabling ments where infrastructure is not conducive to a particular environments for innovation and new businesses will instrument, other means should be used. determine the long-term impact and sustainability of these efforts. These lessons are not conclusive—much remains Finally, it is important to recognize that these newer technol- to be learned—but they serve as sound considerations as ogies do not automatically replace the more traditional forms investments are made in future interventions. of communication, knowledge sharing, and collective action ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 11 that have evolved within a given community or region. In family income can prevent women from owning or even using designing ICT interventions, it is necessary to research and phones. However, the growing availability and lower cost of understand local information and communication practices, mobile phones, as well as other contributing factors, have the barriers to ICT-enabled empowerment, and the priority infor- potential to meet women’s agricultural needs (image 1.4). mation and communication needs of end users. Using con- ventional information and communication tools to address IMAGE 1.4. Determining Levels of Inclusiveness Is a the needs of those who cannot access the ICT because of Critical Factor in ICT Interventions limitations related to literacy, isolation, and social norms is often required. Focus on Affordable Access and Use, Not Ownership In designing ICT-in-agriculture interventions, it is vital to bear in mind that “access” refers not only to the physical proxim- ity and accessibility of ICT infrastructure, tools, and services but also to their affordability, use, and usage models that are appropriate for the local physical, environmental, and cultural constraints. The specific mix of individual-user and shared- use/public-access models that is most appropriate and locally sustainable will vary depending on local needs and resources, and will change over time as devices and services diversify further and become even more affordable. As the costs of Source: Nokia. ICT ownership have come down, the affordability and acces- sibility divide has improved, especially for individual user Social access issues extend beyond gender. A full under- services. However, it also may be that in some cases, learn- standing of the local, national, and regional agricultural ing is better facilitated through shared access than individual economy is important for ensuring that ICT interventions do access facilities. not restrict poor producers’ participation to the low end of agricultural value chains, as other technologies have done. Actual use of the technology should also be monitored, ICT in itself does not guarantee full participation by all social as a supplied technology does not necessarily imply that groups. Efforts to be inclusive must focus on the full range it is being used for economic means. Many times, mobile of capacities and resources that small-scale producers will phones and other devices function strictly as a tool for basic need to benefit from an intervention. Questions of social communication or entertainment. This is often a result of access should be raised consistently when using ICT to participants’ low exposure to ideas or methods on how ICT improve rural livelihoods. Do sociocultural norms or divi- can be used to achieve agriculture or other economic goals. sions prevent certain groups from using the technology? Will better-off groups benefit more than poor groups? Will Be Aware of Differential Effects, Including Gender floods of entertainment and spurious information dilute the and Social Differences in Access and Use knowledge needed for sustainable agricultural and rural Under certain conditions, ICT interventions can worsen development? Broad-based rural development depends on rather than alleviate underlying economic, social, and political monitoring and evaluating outcomes and making adjust- inequalities, including those between women and men. Rural ments along the way. women face significant disadvantages in accessing informa- tion and communication assets and services. Many of the Create an Enabling Environment for Innovation in fixed-location ICT projects designed to enhance rural access Infrastructure Investment, Business Models, Services, to information assets and services were or are owned or man- and Applications aged by men. Cultural attitudes and women’s multiple roles Effective design and consistent, transparent implementation and heavy domestic responsibilities often exclude them from of appropriate policies and regulations guiding a country’s these services. The same attitudes and lack of control over investment in and provision of ICT infrastructure, tools, and I C T I N AG R I C U LT U RE 12 MOD ULE 1 — INTROD UC TION: IC T IN AGRICULTURA L D EVELOPM ENT services is key to enabling ICT interventions. In creating a Promote Leadership and Find Champions supportive environment for ICT innovation and service provi- Last, but not certainly not least, ICT interventions require sion, effective policies and regulations in a number of other leadership. Champions are needed to push projects for- key areas are equally important, such as public and private ward in the development agenda and make them visible financing of infrastructure, the business environment, sup- and interesting to the stakeholders—farmers, businesses, port for innovation, and intellectual property. ICT-in-agriculture and others—that need them. These leaders must operate at interventions require a strong, but flexible, regulatory envi- the national level, where budgetary and strategic decisions ronment; the policy environment is further strengthened by are made. They must also operate at local levels, modeling incentives for the private sector to make investments. the effective use of a technology and building farmers’ trust in its efficacy. Leaders build public confidence in an interven- Develop Sustainable Business and Investment Models tion. Uptake is typically low if confidence in the chosen ICT through Partnerships and its potential impact are minimal. Leaders are needed for Public-private partnerships are now considered essential to the long haul, as interventions that require new infrastructure the long-term viability of most interventions that use ICT or policy and institutional reforms take years to complete. in agriculture. The public sector in developing countries particularly may need guidance in providing technological USING THIS E-SOURCEBOOK services; a lack of human and financial resources as well as the overwhelming needs of the agrarian population weaken The 2011 ICT for Agriculture e-Sourcebook was devel- its ability to provide widespread services of acceptable oped jointly by the World Bank’s Agricultural and Rural quality. Development Sector and infoDev, and benefited from generous funding from the Government of Finland under With private investment, public service provision can be the Finland/infoDev/Nokia program Creating Sustainable more sustainable. Other partnerships also appear important Businesses in the Knowledge Economy. The updated edition to sustainability (image 1.5). Technical experts with experi- was developed jointly with the Bank’s Food and Agriculture ence in various subsectors; information technology (IT) Global Practice and infoDev, and benefited from the gener- teams for technological maintenance, design, and trouble- ous support of the Korea-World Bank Partnership Facility, shooting; multilevel policy makers; and farmers and farmers’ as well as collaboration with the “Innovations in Big Data organizations that can provide local know-how, are also often Analytics” program in the Global Operations Knowledge all needed in one way or another. Management department of the World Bank. It is designed to sup- IMAGE 1.5. A Collaborative Effort Among Many Actors Is Important for port practitioners and policy makers ICT in Agriculture in taking maximum advantage of ICT’s potential for improving agri- cultural productivity and smallholder incomes, strengthening agricultural markets and institutions, improv- ing agricultural services, and build- ing developing-country linkages to regional and global agricultural value chains. It focuses primarily on how ICT can assist small-scale producers and the intermediate institutions that serve them, yet it also looks at how to link smallholders to ICT-enabled improvements in larger-scale farm- ing, markets, and agribusiness to stimulate the broader rural economy. The Sourcebook provides users with Source: Neil Palmer, CIAT. a fairly comprehensive overview of ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 13 TABLE 1.1. Themes Treated in Sourcebook Modules OPPORTUNITIES, ACCESS, AND ENHANCING PRODUCTIVITY ACCESSING MARKETS IMPROVING PUBLIC SERVICE CROSSCUTTING THEMES ON THE FARM AND VALUE CHAINS PROVISION Access and affordability Increasing productivity Market and price information Rural governance Mobile applications Agriculture innovation systems Supply chain management Land administration Gender and ICT services Rural finance Risk management Forest governance Farmer organizations Traceability and food safety current and upcoming ICT-in-agriculture applications and how At the beginning of each module, an “In this Module” box they might improve agricultural interventions or strategies. briefly describes the content in the module, including the The Sourcebook is not a primary research product; nor does overview, Topic Notes, and innovative practice summaries. it claim to be the definitive treatment of a sector that is evolv- The innovative practice summaries are bulleted underneath ing so rapidly. Its modules are intended to serve as a practi- the description of the Topic Note, and can be viewed directly cal resource for development professionals seeking a better by clicking on the title. Many of the tools, examples, and understanding of the opportunities and existing applications projects discussed also include links to websites and other offered by ICT as tools for agricultural development. useful resources. Overall, each module seeks to provide guidance through real Given the still-limited evidence on how to implement ICT- examples for development practitioners in the following areas: in-agriculture initiatives, the World Bank plans to further ƒ Providing a landscape of existing ICT applications that develop its operational practices and country-specific techni- assesses applications in their local context. cal assistance as evidence and analysis accumulate. ƒ Understanding current trends in ICT as they pertain to agriculture and the contributions that ICT can REFERENCES AND FURTHER READING make to enhance agricultural strategies and their International Telecommunications Union. 2010. International implementation. Telecommunications Union’s World Telecommunication / ICT ƒ Designing, implementing, and evaluating appropri- Indicators database. http://www.itu.int/ITU-D/ict/statistics/, accessed September 5, 2011. ate and sustainable ICT components of agricultural projects. Internet World Statistics. 2011. Facebook Users in the World. June 2011. http://www.internetworldstats.com/facebook.htm, ƒ Building effective partnerships—public and private—to accessed September 15, 2011. promote ICT access and innovation for agriculture. Mehra, A. 2010. “Small Technologies Fuel Big Results in the ƒ Including ICT in policy dialogue and planning with Developing World.” Huffington Post, September 13, 2010. http:// country counterparts on agricultural and rural develop- www.huffingtonpost.com/amit-mehra/small-technologiesfuel ment goals and priorities. -b_b_715274.html, accessed September 2011. TeleGeography. 2011. http://www.telegeography.com/, accessed To facilitate learning, the Sourcebook is split into this introduc- September 23, 2011. tory module plus 14 modules focusing on specific aspects UNFAO. 2009. How to Feed the World 2050. http://www.fao.org of the agricultural sector in relation to ICT (table 1.1). Each /fileadmin/templates/wsfs/docs/expert_paper/How_to_Feed_the module provides: _World_in_2050.pdf, accessed September 6, 2011. ƒ An overview of how ICT is used in each focus area, Wireless Intelligence. 2011. Global Mobile Connections to Surpass along with the current trends; 6 Billion by Year-End. https://www.wirelessintelligence.com ƒ The challenges, lessons, and key enablers for using /analysis/pdf/2011-09-08-global-mobile-connections-to-surpass-6 -billion-by-year-end.pdf, accessed September 15, 2011. ICT; ƒ A number of Topic Notes that address subjects related World Bank. 2008. World Development Report 2008: Agriculture in Development. http://siteresources.worldbank.org/INTWDR2008 to each focus area, pinpointing how ICT can be used /Resources/2795087-1192111580172/WDROver2008-ENG.pdf, to meet specific objectives; and accessed September 10, 2011. ƒ Innovative practice summaries (IPS) and other ———. 2011. Food Price Watch. February. http://siteresources examples that demonstrate success and failure in . worldbank.org/INTPREMNET/Resources/Food_Price_Watch interventions. _Feb_2011_Final_Version.pdf, accessed September 4, 2011. I C T I N AG R I C U LT U RE S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 15 Module 2 MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS MICHAEL BARRETT (University of Cambridge) and MIRA SLAVOVA (International Food Policy Research Institute) IN THIS MODULE Overview. What is “accessible” and “affordable” information and communication technology (ICT)? What general policy strat- egies, infrastructure, technology, and business models mediate ICT’s accessibility and affordability? Partnerships between organizations with different specialties, capacities, and profit motives are key to improving access and affordability. The task of regulation policy is to keep pace with technological developments and reduce inequalities within countries while maintain- ing sound business reasoning within the telecommunications sector. Policy interventions must consider ICT and its users as a socio-technical system through which equitable access to ICT translates into sustainable benefits for rural residents. Topic Note 2.1: Making ICT Affordable in Rural Areas. In developing countries, infrastructure, appliances, and services influence the delivery of affordable ICT. What wired and wireless infrastructure can improve domestic backbone and “last mile” connectivity in rural areas? What trade-offs exist between quality and quantity of service? What devices appear most adaptable to the needs of rural users? Finally, how can services benefit from synergies among network infrastruc- ture, connectivity modalities, access devices, and content? Topic Note 2.2: Public Innovations in Universal Access to Telecommunications. It is within the domain of govern- ment to provide innovative methods for access to ICT in rural areas. Public agencies help develop infrastructure where incentives for private investment are insufficient; public policy encourages demand for telecommunications through such mechanisms as universal access/universal service funds or support for low-cost devices.  Passive Infrastructure Sharing in Nigeria  Turkey’s Oligopolistic Infrastructure-Sharing Model  Dabba’s Experience with Unlicensed Wireless Services in South Africa  Bhutan’s Community Information Centers Adapt to the Geographical and Consumer Context Topic Note 2.3: Mobile Money Moves to Rural Areas. In developing economies worldwide, companies deliver financial services and new sources of income outside of conventional bank branches, through mobile phones and nonbank retail agents. Mobile financial and income-generating services cost little and operate on all handsets, making them advanta- geous on a large scale, even in more remote rural areas.  M-PESA’s Pioneering Money Transfer Service  Zain Zap Promotes Borderless Mobile Commerce  Pakistan’s Tameer Microfinance Bank for the Economically Active Poor  Txteagle Taps a Vast, Underused Workforce Topic Note 2.4: Delivering Content for Mobile Agricultural Services. New services offer critical information for farm- ers to improve their livelihoods. The technical aspects of delivering content and services that rural users value are influ- enced by the partners engaged in providing the service, the regulatory environment, business model, and the networks, infrastructure, and devices available.  First-Mover Advantage Benefits Reuters Market Light  Long Experience in Farm Communities Benefits Indian Farmer’s Fertilizer Cooperative Limited (IFFCO) Kisan Sanchar Limited  Farmer’s Friend Offers Information on Demand, One Query at a Time I C T I N AG R I C U LT U RE 16 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS OVERVIEW the mobile microfinance industry to grow. Topic Note 2.4 explores ICT has a demonstrably positive effect on income growth in efforts to build on expanding mobile networks in rural areas to developing and developed countries (Röller and Waverman deliver value-added livelihood services to farmers (primarily infor- 2001; Waverman, Meschi, and Fuss 2005). In rural areas, ICT mation to reduce agricultural losses and increase income). can raise incomes by increasing agricultural productivity (Lio and Liu 2006) and introducing income channels other than “Access” in Relation to Two Broad Concepts in traditional farm jobs. Current limited evidence from individual Telecommunications Policy: Universal Access and farmers and fishers in India supports the conclusion that ICT Universal Service improves incomes and quality of life among the rural poor (Goyal Within telecommunication policy, “access” can be under- 2010; Jensen 2007). The idea that wider access to and use of stood in relation to two broad concepts: universal service and ICT throughout a country will reduce inequalities in income universal access (Gasmi and Virto 2005). “Universal service”1 and quality of life between rural and urban residents is com- (US) is a policy objective primarily used in developed countries. pelling. Despite the scarcity of evidence to support this notion It focuses on upgrading and extending communication net- (Forestier, Grace, and Kenny 2002), it underlies widespread works so that a minimum level of service is delivered to indi- policy initiatives to ensure equitable access to ICT in all areas. vidual households, even in the least accessible areas. US objectives are generally pursued by imposing universal Creating affordable ICT services in rural areas is a complex service obligations on network operators. “Universal access,”2 challenge. In these areas, the “last mile” of telecommunica- a policy objective more typical for developing countries, seeks tions infrastructure is provided at a very high cost that may to expand the geographic access to ICT for the population at not be justified by the resulting use and effects of the tele- large, and often for the very first time. UA obligations provide communications network. Affordable access to ICT in rural for a minimum coverage, especially of remote communities, areas can be frustrated at the supply as well as the demand thereby allowing all citizens to “use the service, regardless of ends of the service-provision chain. To supply ICT and related location, gender, disabilities, and other personal characteris- services in rural areas, the main challenge is the high level of tics” (Dymond et al. 2010). Table 2.1 outlines the characteris- capital and operating expenses incurred by service provid- tics of universal access and universal service in terms of their ers. On the demand side, rural adoption of ICT in developing availability, accessibility, and affordability. countries is curtailed by low availability of complementary public services, such as electricity and education, and by the In designing policy interventions to promote equitable access relative scarcity of locally relevant content. to ICT, the technology and its users must be considered as forming a socio-technical system through which improved ICT Recognizing the equity implications of access to ICT, govern- access translates into improved rural livelihoods and sustain- ments have adopted regulatory policies to enable the rollout of able benefits for rural residents. Many authors have considered ICT infrastructure and the supply of services in rural areas, and access to ICT holistically, with an aim of understanding different they have addressed low rural demand by introducing locally aspects of how access is enabled or impeded, including techno- relevant content in the form of e-government and e-agriculture logical, socioeconomic, and cultural aspects.3 This module uses services. The task of regulation policy has been to keep pace the Access Rainbow Framework (Clement and Shade 2000), with technological developments while maintaining licens- ing policies geared toward equity; in other words, to reduce 1 “Universal service (US) describes when every individual or inequalities within countries while maintaining sound business household can have service, using it privately, either at home or increasingly carried with the individual through wireless devices. reasoning within the telecommunications sector. For some services, a goal of full US would be too ambitious at present in a developing country, because the services must be This module describes what is meant by “accessible” and affordable as well as available. Goals may relate to the proportion “affordable” ICT and discusses the more general policy strate- of the population that can afford private service (i.e., subscriber penetration targets)” (Dymond et al. 2010). gies that influence rural access to ICT. Topic Note 2.1 is a rela- 2 “Universal access (UA) describes when everyone can access the tively technical review of the infrastructure, networks, devices, service somewhere, at a public place, thus also called public, and services for delivering ICT affordably in rural areas. Topic community or shared access. . . . In general there would be at least one point of access per settlement over a certain popula- Note 2.2 considers the role of public innovation in achieving uni- tion size” (Dymond et al. 2010). versal access to infrastructure and appliances. The compounded 3 For example, Benkler (2006) focuses on technological aspects access problem, consisting of limited rural access to ICT and and proposes a model of access consisting of a content layer, a service layer, a network layer (physical transportation and logi- limited rural access to financial services, is discussed in Topic cal transmission), and a device layer (logical device operating Note 2.3. The discussion focuses on business models that enable system, OS, and physical machinery). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 17 TABLE 2.1. Characteristics of Universal Access and Universal Service ASPECT UNIVERSAL ACCESS UNIVERSAL SERVICE Availability Focused coverage Blanket coverage Public access (e.g., at a pay phone or telecenter) Private service on demand Free emergency calls Free emergency calls Accessibility Walking distance, convenient locations and hours Simple and speedy subscription Inclusively designed premises (e.g., for wheelchair users); inclusively Inclusively designed terminals and services (e.g., for blind or deaf designed terminals or available assistance (e.g., for the blind or deaf) people) Assistance from an attendant Assistance through the terminal (e.g., by making calls or viewing help pages for the Web) Adequate quality of service (e.g., having few failed call attempts) Reasonable quality of service (e.g., having few dropped calls) Affordability Options of cash and card payment Cost of average monthly usage is a small percentage of monthly GNI per capita Options of cash and card payment Options of cash, card, and electronic payment Payment per use (e.g., for a single call or message or an hour of Flat rate, bundles of services, or low monthly subscription fee Internet access) Source: Dymond et al. 2010. FIGURE 2.1. Access to ICT Infrastructure, Appliances, in Services and the Access Rainbow Governance Literacy/social facilitation Access to services Service/access provision Content/services Software tools Access to appliances Devices Carriage facilities Access to infrastructure Source: Authors, following Clement and Shade 2000. depicted in figure 2.1, to understand access to ICT. The Access consisting of installed network capacity, network connectiv- Rainbow Framework demonstrates the multifaceted nature ity, and interoperability standards. In this module, this layer is of access to ICT and captures the socio-technical architecture interpreted as access to ICT infrastructure. Access to ICT appli- instrumental to it. The framework goes beyond a mechanical ances is captured by the physical layer of ICT hardware devices understanding of ICT access by including enablers of ICT such and the logical layer of software tools on these devices. With as locally relevant content, ICT literacy, proximal ICT use,4 and its twofold (hardware and software) nature, access to ICT appli- social mechanisms for governing ICT use. ances links the supply of ICT infrastructure with the provision of services targeted at end users. Access to ICT services is The Access Rainbow provides a framework for discuss- a more amorphous concept, consisting of: (1) the ready avail- ing access to ICT infrastructure, appliances, and services. ability of content (resources), fulfilling users’ roles as citizens, The “carriage facilities” layer is a physical technology layer producers, and consumers; (2) the ready availability (to those who are not experts in the technology) of network access and 4 ICT use intermediated by skilled users in the rural community. appropriate support services through commercial vendors; I C T I N AG R I C U LT U RE 18 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS (3) the availability of formal and informal learning facilities FIGURE 2.3. ICT Price Subbaskets by Level for developing network literacy; and (4) the ready availability of Development of channels through which individual users can participate in 2009 decisions about telecommunications services, their social 250 Developed Developing inclusiveness, and the public accountability of their provision. countries countries 200 190 In considering interventions to improve access to ICT, practi- PPP$ tioners must consider the complexity of access to ICT infra- 150 structure, appliances, and services. It is important to locate the access layer within which an intervention is anchored 100 and to assess how it relates to contingent aspects of access. 50 For public policy makers, a comprehensive understanding 28 21 16 18 15 of the processes determining ICT access is best achieved 0 within a holistic framework, but policy makers may also Fixed Mobile Fixed find some value in quantifying ICT access within countries telephone cellular broadband Source: ITU 2010. and drawing comparisons across countries. To measure the Note: PPP$ = GNI per capita in current international dollars, obtained using digital divide between countries and assess countries’ ICT purchasing power parity (PPP) conversion factors. development potential, the International Telecommunication Union (ITU) introduced the ICT Development Index (IDI) as an indicator of countries’ level of ICT development. The IDI “Affordability” as a Function of Pricing and Business Model measures access by considering ICT readiness and five addi- An affordable universal service is one in which the “cost of tional indicators: fixed telephony, mobile telephony, interna- average monthly usage is a small percentage of monthly gross tional Internet bandwidth, households with computers, and national income (GNI) per capita” (Dymond et al. 2010). As a households with the Internet (ITU 2010). Figure 2.2 shows concept, affordability is easier to measure than access. As a that in recent years (2002–08) developing countries have measure of affordability, ITU uses the ICT price basket, which exhibited considerably greater access values than developed includes price indicators for fixed telephones, mobile phones, countries, largely owing to explosive growth in mobile tele- and fixed broadband service (ITU 2010).5 Figure 2.3 clearly communications in developing countries. shows that by this measure, fixed-line broadband was the single most expensive and least affordable service in develop- FIGURE 2.2. Access to ICT by Level of Development, ing countries as of 2009. In using this means of assessing Based on the ICT Development Index affordability, however, it is vital to determine if the contents of the price basket are relevant to the access problem at 7 hand (for example, Topic Note 2.1 questions whether in some 6 contexts the affordability of fixed-line broadband infrastructure Access subindex value merits concern). 5 2002 2007 2008 The Access Rainbow Framework (introduced in the “Access 4 CAGR 2002–08 Concept” section) helps in understanding issues of afford- 5.8% 3 ability and sustainability, because it represents the layered system of interdependencies within which technology diffu- 2 sion, business development, and regulatory policies occur. 1 CAGR 2002–08 9.4% 0 5 The fixed telephone subbasket captures the average monthly Developed countries Developing countries cost of a basic, local, fixed residential telephone service. The Source: ITU 2010. mobile cellular subbasket represents low monthly mobile usage, Note: For each year, the figures use the simple average value of the ICT namely 25 outgoing calls per month (on-net, off-net, and to a Development Index (IDI) access subindex over all developed or developing countries. The compound annual growth rate (CAGR) of the IDI access fixed line, and for peak, off-peak, and weekend periods) plus subindex is computed by the formula (Pv / P0)(1/n) − 1, where Pv = present 30 SMS messages. The fixed broadband subbasket represents value, P0 = beginning value, and n = number of periods. The result is a typical monthly offer based on a 256 kilobit connection and a multiplied by 100 to obtain a percentage. minimum of 1 gigabyte of data. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 19 For example, the ICT layer carrying the highest value proposi- and upper bounds on the number of subscribers, which tion for end users is the content/service layer.6 The frame- skewed the viability of fixed-line rollouts by private conces- work makes it possible to consider the financial viability of all sion holders. contingent layers (network capacity, availability of appliances, customer support, and so on) and how they may affect the In addition to competition, technological neutrality is another value derived from the content/service layer. leading regulatory policy principle for ensuring the affordabil- ity of ICT. Technological neutrality is the principle of refraining From a regulatory standpoint, the Rainbow approach cap- from specifying technology requirements within telecom- tures the significance of the separation between layers, most munications licenses. Historically, specifying technology prominently the separation between the carriage and the requirements was a means of stimulating domestic equip- content layers. Focusing regulatory efforts within layers and ment manufacturing, but technological neutrality is advisable enabling competition within and between layers is central within the present rapidly evolving IT industry, because regu- to achieving quality end-user services at affordable prices. latory decisions on technology selection can be risky (box 2.1 From a regulatory policy perspective, the layered structure presents an example from the Republic of Korea). illustrates the trend in policy to enable competition among technologies delivering comparable functionality by follow- BOX 2.1. The Risks of Picking Winners in the Rapidly ing the principles of competition, technological neutrality, and Evolving IT Industry licensing flexibility. In the Republic of Korea, the licensing of new technologies Ensuring competition within each of the layers is a long- arguably led to market growth for domestic equipment standing policy priority, especially where economies of scale manufacturers such as Samsung and LG, yet this strat- are conducive to monopolistic market structure.7 Market lib- egy may prove more risky in the IT domain. Government eralization and free entry give incumbents incentives to pur- support for WiBro, a Korean version of mobile WiMAX sue a higher quality of service. For example, starting in 1992 (a telecommunications protocol that provides fixed and Thailand sought to break up the Communication Authority of mobile Internet access), has since been viewed as mis- Thailand’s monopoly over international gateway services by guided. By the end of 2008, WiBro had attracted only introducing concessions to private companies under build- 170,000 customers for Korea Telecom and SK Telecom transfer-operate agreements. The entry of the private sector combined, a fraction of the government’s expected alongside state-owned enterprises, such as the Telephone 1.4 million subscribers. Within the Korean market, LTEa Organization of Thailand, led to a remarkable expansion of mobile broadband services were emerging as a more subscriptions for both fixed and mobile services. Yet the level viable alternative to WiBro, and both Korea Telecom and and the degree of competition in the fixed line and mobile SK Telecom announced plans to launch commercial LTE subsectors varied considerably because of the number of services at the expense of languishing WiBro services. concessions and their terms and conditions (Nikomborirak Source: Author, based on Kim 2009a, 2009b. and Cheevasittiyanon 2008). Competition in the mobile mar- (a) Long Term Evolution (LTE) is a preliminary mobile communication ket yielded improved connectivity and affordability, while the standard, formally submitted as a candidate 4G system to ITU-T in late 2009. Commitment to LTE among mobile network operators has been fixed-line subsector stagnated. growing steadily. The lesson is that the welfare benefits of market liberaliza- tion are achieved by implementing complementary policies on competition that enable market pricing and restrict preda- Because no specific technology standards are designated, tory pricing by incumbents facing new entrants throughout technological neutrality widens the scope for competition the structural layers of the ICT sector. In Thailand, fixed-line within each layer of the Access Rainbow. Competing opera- concessions were restricted by stipulated fixed-call rates tors choose the technology standards that allow them to deliver services cost effectively. The regulatory policy drift 6 Layer number 4 in figure 2.1. toward technological neutrality is supported by technology 7 International Internet gateways and local-loop or “last mile” developments that lead to increased standards of interoper- fixed networks are examples. Local-loop networks are the fixed ability (see Rossotto et al. 2010). networks that deliver connectivity from the local exchange to the homes of end users. Because of the high cost of entry in devel- oping these networks, this segment is conducive to a monopo- The main policy lever for assuring market competition and listic market structure. technological neutrality is flexible licensing policies and the I C T I N AG R I C U LT U RE 20 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS enforcement of flexible spectrum rights. Strict licenses and KEY CHALLENGES AND ENABLERS spectrum rights can be counterproductive if they restrict ser- The challenges and enablers related to making ICT more vices that can be provided or technologies used to provide widely and affordably available to rural people in developing services (for example, WiMAX licenses have been issued countries are discussed in the sections that follow. Particular limiting service provision to fixed broadband, to the exclu- attention is given to the kinds of partnerships, regulations, sion of mobile broadband). In addition to limiting technologi- and policies needed to reach this goal. cal possibilities, restricted licenses and spectrum rights can also reduce the bidding incentives in spectrum auctions. Partnerships Technology flexibility can be achieved within each of the Considering the multilayered nature of the problem of ensur- interconnected layers of the ICT system through unified ing affordable rural access to infrastructure, devices, and licenses and simplified licenses (Rossotto et al. 2010). Box services, partnerships between organizations with different 2.2 describes Singapore’s experience with facilities-based specialties, capacities, and profit motives appear to be a key and service-based operating licenses. way to improve access and affordability. Partnerships serv- ing as critical mechanisms for improving rural ICT access BOX 2.2. Singapore’s Simplified Licenses Encourage can take the form of partnerships within the public sector, Innovative, Cost-Effective ICT Infrastructure negotiated public-private partnerships, private agreements between stakeholders in the telecommunications sector, By ensuring that the installation and operation of any net- or informal understandings between service providers and work infrastructure in Singapore is covered by a license, the stakeholders at the community level. Infocomm Development Authority of Singapore ensures Enabling such partnerships and maintaining them remains the development of innovative and cost-effective infra- a key government role. For example, the public sector structure. Simplified licenses are issued to facilities-based played a considerable role within the M-PESA collaborative operators (FBOs) and services-based operators (SBOs) of partnership (see IPS “M-PESA’s Pioneering Money-Transfer telecommunications networks. FBOs include companies Service,” in Topic Note 2.3). This role involved financially deploying submarine cables to improve international con- supporting the collaboration between mobile network opera- nectivity infrastructure, companies rolling out fiber-optic tors (MNOs) during software development. In Bhutan, part- cables to improve domestic backhaul connectivity, and nerships between departments within government were companies setting up broadband Internet Protocol (IP) or instrumental in rolling out community information centers infrared networks. Wireless networks making demands in remote areas (see IPS “Community Information Centers: on scarce spectrum resources are licensed separately and Bhutan,” in Topic Note 2.2). subject to comparative selection or auctioning. The opera- tions of FBOs effectively remain within the carriage layer, A variety of motives engender private partnerships that but FBOs have the flexibility to deploy and/or operate any improve rural access to infrastructure and services. For form of telecommunication networks, systems, and/or example, in the infrastructure-sharing arrangements dis- facilities on a technologically neutral basis. cussed in Topic Note 2.2, explicit agreements were enacted SBOs remain within the service/access provision layer, to share passive infrastructure costs and implement 3G but they have full flexibility to choose their technology. technology. Agreements between commercial and nonprofit Individual SBO licenses are intended for companies partners also make a compelling case for the significance of that plan on leasing international connectivity capacities partnerships in implementing projects to deliver improved installed by FBOs. Individual SBO licenses cover services rural access to ICT. For example, the Farmer’s Friend service such as international simple resale, public Internet could be implemented only through collaboration incorporat- access services, and store-and-forward value-added ing Grameen Foundation’s understanding of the nonprofit services. SBO class licenses cover store-and-retrieve sector, Google’s technology expertise, MTN’s network cov- value-added network services, Internet-based tele- erage, and the local agricultural knowledge of the Busoga phony, the resale of public switched telecommunication Rural Open Source Development Initiative. services, and other services. Source: Halewood 2010. Regulation and Policy Challenges Note: One result of this clear, flexible approach to ICT development is Singapore’s extensive e-governance system, described in Module 12. Although ICT’s evolution in developing countries has far to go, it has moved significantly forward in the past decade. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 21 The rapid expansion of mobile phone networks and market with pure data transmission regulations (UNCTAD 2010). uptake of Global System for Mobile Communication (GSM) In terms of competition, policies fostering the effective man- technologies8 following liberalization and deregulation are agement of competitive markets, interconnection regimes, the most frequently cited examples of this evolution. and mobile termination rates can provide incentives to invest in quality of service, differentiation, and innovation. Informed and effective regulation is necessary for creating an enabling environment that will maximize entrepreneurs’ With the increasing adoption of ICT and growing prominence abilities to expand market offerings and minimize the nega- of ICT-enabled services in consumers’ lives in develop- tive effects of competition on consumers. Barriers such as a ing countries, it is worth emphasizing the significance of monopoly operator and excessive licensing regimes in some consumer protection regulation for ensuring the effective contexts (for example, requiring local community networks to governance of multilayered ICT access. Recurrent problems have licenses) can negatively affect business potential. At the include gaps between advertised “headline” broadband other end of the spectrum, a supportive fiscal and financial envi- access speeds and what subscribers actually experience, ronment and entrepreneurs’ access to financial services can lack of transparency in the pricing of mobile voice and data enable and increase the number of socially oriented services. services, lack of effective mobile number portability, and excessive SMS pricing. Consumer-focused regulations Significant regulatory issues in the telecommunications sec- should also target improvements in the legibility and ease tor include taxes, licensing, liberalization, and competition of comprehension of transactions, made possible through policies. Taxes on communication services strongly influence improved ICT access. Consumer protection can pursue such ICT’s affordability in Africa, for example, given the low aver- goals through measures for mobile phone number registra- age incomes. Import duties on IT equipment, value- added tion, identity verification, confidentiality, and privacy. taxes (VAT) (ranging from 5 to 23 percent) on goods and services, and excise taxes on communications services all Finally, the advent of financial services implemented on mobile raise prices, discouraging use. Excessive licensing can also phones makes it essential to create an environment that inte- stifle the delivery of various content-based ICT services. grates financial regulation and telecommunication regulations. Regulations of content broadcasting should be synchronized These services are discussed in greater detail in Topic Note 2.3. Topic Note 2.1: MAKING ICT AFFORDABLE IN RURAL AREAS TRENDS AND ISSUES Convergence (as the name implies) blurs the distinctions “Fixed-mobile convergence” is the increasingly seamless between the domains of Internet service providers, cable connectivity among wired and wireless networks, devices, television media companies, fixed-line telecommunication and applications, which permits users to send and receive companies, and operators of mobile telephony networks data regardless of device and location. Convergence is the (figure 2.4).9 With this context in mind, the discussion that result of converting content formats (text, images, audio, follows examines how technology trends in infrastructure, video), devices for creating and communicating this content, appliances, and services can influence the delivery of afford- and telecommunications infrastructure to digital standards. able ICT in developing countries. Device convergence allows devices to support different functionalities and different network access technologies. INFRASTRUCTURE Service convergence means that end users are able to What are the current wired and wireless options to improve receive comparable services via different devices and tech- domestic backbone and “last mile” connectivity? As noted, nologies for accessing networks. Network convergence wired telecommunications infrastructure tends to reach rural means that a single network is able to carry voice and data areas in the wake of complementary rural access infrastruc- formats and can support access by different technologies. ture such as roads and electricity and the expansion of public 8 GSM standards for 2G cellular networks serve an estimated 9 Offers that span three out of these four services have become 80 percent of the global mobile market, according to the GSM known as “triple play” offers. (Sunderland 2007) points to such association (http://www.gsm.org/). offers in Cape Verde and the Caribbean. I C T I N AG R I C U LT U RE 22 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS FIGURE 2.4. Telecommunications, IT, and Media Industry Convergence mobile networks fibre optical networks mobile data Mobile TV circuit switched package switched voice data global networks FMIC managed network & ICT World Telecom Industry application services VoIP Collaborative Internet computing client-server web-services technology Triple/Quadruple main frames desk top computing (PC) enterprise integration Play mini computers advanced planning systems ERP, CRM, SCM & business intelligence Home IT Industry packaged software automation media centre IP TV gaming Narrow digital audio & video digital photography casting radio, television & print electronic publishing optical storage Video on (CD/DVD) digital broadcasting demand Media Industry incl. Consumer Electronics flat screen technology 1970 1980 1990 2000 2010 Source: Caneval Ventures, “ICT and Media Industry” (http://www.caneval.com/vision/ictmediaindustry.html, accessed July 2011). services such as education. The lag between the arrival of In considering how best to develop affordable telecommu- complementary infrastructure and public services and the nications infrastructure in developing countries, all three establishment of wired ICT infrastructure in rural areas can connectivity segments of the network need to be taken be considerable, but the introduction of wireless, especially into account: (1) the international and domestic connectiv- mobile, infrastructure is bound neither by the presence of ity that makes up the network’s backbone capacity, (2) the roads nor by access to the electricity grid. domestic backhaul connectivity that enables the intermedi- ate links, and (3) the local loop or “last mile” connectivity that Rural infrastructure development needs to be considered in serves end-user access at the edges of the network. (Each light of the different opportunities offered by wired and wire- of these networks segments is discussed in greater detail less technologies and the fixed-mobile convergence occurring in “Domestic backbone and rural backhaul connectivity” and throughout the ICT sector. Sunderland (2007) notes that fixed- “local loop or ‘last mile’ connectivity.”) The expansion of mobile convergence differs in developing countries, where backhaul connectivity and the provision of “last mile” con- fixed-line teledensity is low, from that in developed countries. nectivity pose particular challenges to extending ICT to rural As a result, convergence in developing countries largely areas in an affordable way (box 2.3). amounts to convergence in the delivery of Internet access and voice telephony services over wireless networks. For example, Wireless infrastructure may be an economical option, but it in rural Africa, where the teledensity of fixed networks is low has certain cost constraints. Buys et al. (2009) show that the and their rollout can be prohibitively expensive, fixed-mobile probability of the presence of mobile tower base stations is convergence enables the use of wireless “last mile” infrastruc- positively correlated with the potential demand (population ture, while the backhaul traffic is carried on fixed fiber-optic density, per capita income), as well as with the absence of cables because of their high capacity. In small-island develop- factors that increase operational and capital expenditures, ing countries, fixed-mobile convergence allows for international such as elevation, slopes, lack of all-weather roads, unreli- connectivity via satellite rather than undersea cable. able power supplies, and even insecurity. (See IPS “Passive Infrastructure Sharing in Nigeria,” in Topic Note 2.2.) Telecommunications networks comprise a hierarchy of links that connect users at the “edge” of a network to its “core,” At the carriage level, network convergence is associated with also called the “backbone” (the high-capacity links between the transformation from circuit-based public switched digital switches on the network). The backhaul portion of a network telecommunication networks (PSTNs) to packet-switched consists of the intermediate links between subnetworks at networks using the Internet Protocol (IP) and known as next- the users’ end and the core network. generation networks (NGNs). Both PSTNs and NGNs are ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 23 BOX 2.3. Balancing Quality and Service in Reaching Rural and delay can mar the quality of the connection. A comparison Areas: Fixed-Line versus Wireless Backhaul between traditional fixed-line telephone services and voice over IP (VoIP) clearly demonstrates the difference between Even though wireless is accepted as an economical the two types of networks. NGNs completely separate the option for delivering “last mile” connectivity, backhaul packet-switched transportation (connectivity) layer and the traffic is usually carried via fiber-optic networks because service layer, enabling any available fixed-line carriage infra- of their high capacity. Connectivity is often limited by structure to be used efficiently for any service. the limited penetration of the fixed-line backhaul that supports it. The delivery of connectivity to rural areas Domestic Backbone and Rural Backhaul Connectivity lacking fixed-line backhaul involves balancing concerns about ICT access, connection quality, and the expendi- As end users’ demand for additional bandwidth grows, insuf- tures and delays entailed in rolling out fixed lines and ficient domestic backbone can pose a considerable challenge supporting infrastructure. The benefits of wireless back- to the rollout of fixed-line broadband services. In the mobile haul technology are worth considering in such cases. sector, insufficient backhaul capacity is becoming a limitation, particularly with the increase of rural 3G data use. Government Wireless backhaul is increasingly recognized as an interventions in support of rural backhaul solutions have option for combating the expenditures involved in pro- included the introduction of public-private funding mechanisms viding fixed-line rural connectivity. Wireless network (as in Korea and Chile; see box 2.4), construction subsidies backhaul solutions can take the form of point-to-point or (as in Canada), and the rollout of fiber-optic networks connect- point-to-multipoint wireless Ethernet bridges or wireless ing public institutions (Rossotto et al. 2010). Complementary mesh networks. They can use licensed or unlicensed regulations can be used to ensure competitive conditions in microwave links (see Unlicensed Wireless Use). With the provision of domestic backbone and rural backhaul. The throughput from as low as 10 Mbps up to GigE full policy tools for supporting domestic backbone rollout and rural duplex (with gigabit wireless), a licensed microwave backhaul connectivity include infrastructure sharing,10 func- link or wireless bridge can provide sufficient capacity for tional separation,11 and cross-ownership restrictions, allowing many rural applications. Because it is compatible with for interplatform competition12 (Dartey 2009). mobile phone standards (GSM, CDMA), the WiMAX standard offers opportunities for rolling out affordable wireless rural backhaul. Advocates of the technology are Local Loop or “Last Mile” Connectivity optimistic about its potential for linking wireless fixed- The delivery of network access in the “last mile” is the most location base stations to the core network. costly and challenging element of rural deployments. The Source: Authors. technology options for delivering wired local loop broadband Note: Mbps = megabits per second; GigE = Gigabit Ethernet; GSM = Global System for Mobile Communication; CMDA = Code Division Mul- connectivity include the rollout of xDSL,13 cable, and fiber to tiple Access (CDMA) 2000, a wireless air interface standard; WiMAX = the home infrastructure. Wireless options include the rollout Worldwide Interoperability for Microwave Access. of mobile (2G, 3G, 4G),14 wireless broadband (WiMAX, Wi-Fi, made up of telephone lines, fiber-optic cables, microwave 10 “Infrastructure sharing” is a mechanism for reducing capital expenditures and operating expenditures. Passive infrastructure transmission links, mobile networks, communications satel- sharing consists of colocating competitors. Active infrastructure lites, and undersea telephone cables. sharing consists of sharing the network base station controllers, both circuit-switched and packet-oriented domains, mobile ser- vices switching center, GPRS support node, and so on. The difference between the two kinds of networks lies in 11 In “functional separation,” an incumbent operator is required to their switching mechanisms. Under circuit switching, the establish separate divisions for managing fixed-line services and providing wholesale services to retail competitors. connection is established on a predetermined, dedicated, 12 Cross-ownership restrictions prevent operators, such as tele- and exclusive communication path for the whole length of phony operators, from controlling competitive network infrastruc- the communication session. Consequently, PSTN connectiv- ture, such as cable television networks. For example, restrictions may be placed on the simultaneous control of telephony and ity is costly. In packet-switching protocols, such as IP, the cable television network infrastructures in a specified area. communicated data are broken into sequentially numbered 13 xDSL refers to all digital subscriber line (DSL) technologies. packets, each of which is transmitted to the destination via 14 2G mobile wireless has basic functionality: voice and short mes- saging service (SMS); 3G has advanced functionality: general an independent path, and then the packets are reassembled. packet radio service; and 4G has broadband functionality: long- In packet-switching, the potential for congestion, packet loss, term evolution (LTE). I C T I N AG R I C U LT U RE 24 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS BOX 2.4. Chile’s ICT Policies for Connectivity and WLAN),15 and satellite very small aperture terminal (VSAT) Economic Growth infrastructure. Within cell-based (mobile) wireless standards, all users connect to a single base station, and the transmis- Chile regards ICT policies as important tools for increas- sion bandwidth has to be shared among all users in the cell’s ing the nation’s economic growth. The government has coverage area. introduced policies addressing both the supply of and demand for ICT. These policies go beyond infrastructure Within a short range, wireless broadband transmission is to include programs for e-literacy, e-government, and possible at relatively high data rates—from hundreds of ICT diffusion. megabits (Mbps) to a few gigabits (Gbps)—but services of such high quality are not foreseeable for existing mobile Chilean ICT policies consistently distinguish between standards. Conversely, mobile technologies have the advan- the domains of the private and public sectors and rely tage of reliability within a greater access range. Point-to- primarily on market forces to dictate the development multipoint solutions, combining VSAT terminals with wireless of the telecommunications sector. For example, the broadband local access, are increasingly viable and promis- broadband market in Chile has high levels of interplat- ing. Unlike cell-based connectivity, satellite connectivity does form competition: Multiple operators offer compet- not distribute the available bandwidth among users; instead, ing broadband services through different networks. each user is connected independently, so satellite solutions Government involvement is limited to cases where mar- can offer a better quality of service. Yet the low density of ket forces alone fail to provide incentives for growth in wired infrastructure, combined with limited domestic fiber the sector. Starting in 2002, for example, government backbones in developing countries, makes wireless a practi- investments focused on improving the connectivity of cal option for connectivity in rural areas, despite the limita- rural schools, developing fiber backbone infrastructure, tions imposed on users by sharing capacity. and training people in remote areas in computer skills. In 2008, the government embarked on a more ambi- As this discussion implies, finding the network solution tious project to extend at least 1 megabit per second that can ensure affordable ICT in rural areas can be an inno- connectivity to 92 percent of the population and inten- vative, challenging, and exhausting process. The choice sify ICT use in agriculture and tourism. Candidates for depends largely on the availability of technology, of rural delivering this project were selected through a reverse backhaul, and of complementary infrastructure. It also auction. The Chilean government participated by offer- depends on the flexibility and responsiveness of the regu- ing a subsidy of US$70 million and the spectrum in the latory framework to the prevailing technology constraints 3.5 gigahertz band. and opportunities. The Chilean Universal Access / Universal Service Fund Polices related to the development of rural wireless infra- has been praised for its accomplishments. Between structure require careful study of the trade-offs between 1994 and 2002, by providing public pay phones to more affordability and usability. Policy makers must determine than 6,000 rural locations, the fund reduced the frac- where the value lies (in terms of use) in developing the infra- tion of the population living without access to basic structure. Regulatory policy must consider the trade-offs voice communication from 15 percent to 1 percent. between reach, speed, frequency, and transmission. For The subsidies required to achieve this goal cost less example, the choice to use technology with low transmis- than 0.3 percent of the telecommunications sector’s sion power can lead, on the one hand, to a great increase in revenue over the same period. The opportunity for the available bandwidth per user; but on the other hand, it existing and new operators to use the subsidized pay may require a direct line of sight between the antenna and phone infrastructure to provide individual telephone the user. Consequently, the number of access points needed lines and value-added services (voice mail, Internet to cover a fixed area, and therefore the required capital access, and so on) was one key to commercial suc- expenditures, will rise considerably. cess. An interconnection rate with access charges capable of surpassing 40 percent of rural operating rev- enues was the other key to success. 15 WiMAX (worldwide interoperability for microwave access); Wi-Fi Sources: Mulas 2010; Wellenius 2002. (wirelessly connecting electronic device); WLAN (wireless local area network). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 25 Several key technology parameters should be considered in BOX 2.5. Lessons from South Africa’s Experience in decisions about the expansion of rural connectivity and the Migrating to Digital Television choice of technological delivery mechanism. They include the availability of spectrum frequencies, number of base stations South Africa developed a digital migration strategy needed to cover an area of specific size given a fixed operat- to stimulate growth in its electronics manufactur- ing frequency, achievable connection speed, data transmis- ing sector. The strategy featured a digital switch-on sion rates, and downlink and uplink speeds. date in 2008 and an analog switch-off date at the end of 2011. The reduced costs of simultaneous analog Given the complexity of such decisions, the role of the regula- and digital broadcasting (€750 million for three years) tory environment should be to expand the set of viable tech- were considered a strong advantage of the ambi- nology options. Flexibility in allowing licensed and unlicensed tious, three-year migration plan. Other expected costs use of operational frequencies can be advisable. Wellenius included €800 million for the digital rollout, as well (2002) describes how Chile identified cost-effective solutions as €2.5–3.5 billion for subsidies to local manufactur- to reduce the gap between urban and remote areas in access ers producing digital set-top boxes. In early 2011, the to basic communications technology. South African minister of communications announced that the switch from analog would be postponed until The “digital dividend” has been widely hailed as the solu- December 31, 2013. Observers have raised questions tion to urban-rural inequities in digital ICT access. The “digi- about the practicality of the plans and even the post- tal dividend” is the reassignment of operational frequencies poned date. The lesson is that the certain costs of that become available following the switch from analog to switchover plans need to be balanced against their digital television broadcasting. The Geneva 2006 Agreement uncertain benefits, including the uncertain demand sets June 17, 2015, as the final date for protecting currently for the released telecommunications spectrum and assigned analog television transmission frequencies. The for additional digital TV services. digital dividend spectrum is found between 200 megahertz Sources: Author, based on Pham 2009; Armstrong and Collins (MHz) and 1 gigahertz (GHz). It offers a combination of 2011; and Government of South Africa, “Statement by Minister of Communications,” January 14, 2011 (http://www.doc.gov.za transmission capacity and distance coverage conducive to /index.php?option=com_content&view=article&id=478:statement the extension of wireless broadband infrastructure in rural -by-the-honorable-minister-of-communications-mr-radhakrishna-l -padayachie-roy-on-progress-made-with-regards-to-the-digital-migration areas. Using this spectrum, a few stations can transmit with -process&catid=88:press-releases, accessed July 2011). high power, thereby providing Internet coverage to large rural areas where population is low and demand sparse. The advantage is the low capital expenditure required; the downside is the low bandwidth available to individual users. used for this purpose in Kazakhstan; see box 2.6). CDMA450 The process is accepted as inevitable, however, and it pro- is a cellular technology based on the CDMA2000 standard, vides opportunities for efficient spectrum management in with an operating frequency of 450 MHz. The technology rural areas. uses the same air interface as CDMA2000 but operates at a lower frequency and is able to offer the same basket of How to reassign digital dividend frequencies efficiently high-speed voice and data connectivity over a greater range, remains open to debate. Some advocate the reassignment thereby implying lower capital expenses. In rural settings, of analog transmission frequencies to MNOs, without impos- CDMA450 has a range of up to 50 kilometers. Owing to a ing a requirement that rural infrastructure investments be process known as “cell breathing,” however, such ranges tied to urban infrastructure investments (Picot et al. 2010). are not achievable under cell loads approaching cell capac- Others propose allocating the digital dividend frequencies to ity. CDMA450 appears to be best suited to mixed urban-rural short-range communications. Countries’ experiences with deployments, in which urban deployments are capacity- the crossover to digital television have varied and remain dif- centric and rural deployments are coverage-centric. Another ficult to evaluate, as the process is still unfolding (box 2.5 has disadvantage of CDMA450 is the large antenna required to an example from South Africa). allow the extended coverage for meeting low rural demand. The major limitation of CDMA450 solutions is the scarcity Some observers (Nedevschi et al. 2010) have considered of mobile devices that can use the 450 MHz frequency (the CDMA450 a solution to rural connectivity problems (it is majority operate at 900–1800 MHz. I C T I N AG R I C U LT U RE 26 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS BOX 2.6. CDMA450 Technology Connects Rural smartphones and Netbook appliances). Conversely, bulkier Kazakhstan stationary devices such as the desktop computer have evolved functionalities traditionally associated with more Kazakhtelecom, the biggest telecommunications opera- portable devices, such as VoIP telephony and on-demand tor in Kazakhstan, introduced CDMA450 technology in radio and TV broadcasts. rural areas in the north. The CDMA450 base stations cover 25–35 kilometers and can serve up to 1,000 sub- Among rural users in developing countries, the trend is to scribers. The project, which began in 2008, had installed move from mobile phones with basic voice and text mes- 399 base stations by 2010, providing connectivity to sage capabilities to feature phones. Feature phones are low- approximately 1,800 rural settlements. The project end phones that access various media formats in addition intended to roll out 900 base stations throughout the to offering basic voice and SMS functionality, capturing the country by 2013, enabling voice and Internet access ser- functionalities of multiple ICT devices that are also available as vices at speeds up to 3.1 Mbps. stand-alone appliances. Rural consumers prefer the combined Sources: Author, based on “Implementation of CDMA-450 in North devices because of their affordability. Features appreciated by Kazakhstan,” August 5, 2009, Cellular News (http://www.cellular consumers in developing countries include the digital camera, -news.com/story/38960.php, accessed July 2011); and “Base Stations WLL CDMA Cover About 80% of Rural Settlements in Kyzylorda voice recorder, flashlight, radio, and MP3 player. Bluetooth and Oblast,” Kazakhtelecom press release (http://www.telecom.kz/?muin= general packet radio service (GPRS) are the most widely avail- 1240831664&mchapter=1272548824&lang=eng&n_date=2010-04 -29&act=archive, accessed July 2011). able connectivity options, in addition to GSM. Chinese mobile phone manufacturers tend to be at the forefront of making devices that are particularly affordable and attuned to the APPLIANCES needs of rural users in developing countries (box 2.7). From a user’s perspective, device convergence has two main The demand for features tends to vary depending on the avail- aspects. First, users can access content in different formats ability of complementary rural services. For example, radio is a (audio, data, location data, pictures, maps, text) and with dif- feature very commonly targeted at the rural market, owing to ferent dynamic properties,16 produced by different authors, the traditional significance of radio broadcasting in rural areas. on the same device. Second, users can take advantage of Nonetheless, the choice of radio devices by rural residents is different options (radio, GSM, Wi-Fi, Bluetooth, satellite) for largely determined by the availability of electricity. The radio accessing that content. feature of mobile phones tends to consume the device’s battery fairly fast. Rural residents off the electricity grid find The evolution of appliances in the mobile phone market illus- this feature uneconomical, because the costs of recharging trates these two trends. The discussion that follows focuses services provided by local entrepreneurs are not negligible. on portable devices that support multiple functionalities or Rural residents at locations off the electricity grid in Ghana multiple connectivity options, because they are vast majority report paying 0.50 cedis per charging, comparable to the price of ICT appliances available in the world today. for 1 kilogram of plantains or oranges.17 In agricultural areas such as northern Ghana, solar-powered and windup charging Portable devices, including but not limited to mobile phones, devices have durability and maintenance issues (although they are starting to give users dual (or multiple) mode flexibility. appear useful elsewhere; see IPS “Long Experience in Farm For example, dual connectivity (Wi-Fi/GSM and Bluetooth/ Communities Benefits IFFCO,” in Topic Note 2.4).18 By com- GSM) enables mobile phones to conduct both VoIP and parison, traditional, battery-powered, dedicated radio receiv- standard mobile calls. Dedicated telephone devices are ers appear to be a more affordable choice. able to process VoIP phone calls using Session Initiation Protocol, as well as regular phone calls using analog signals. Gains in processing power allow functions with higher tech- nology requirements to work on smaller devices (high-end SERVICES Services entail much more than access to hardware; they 16 Such as “online” and “offline” content; “online” content is encompass affordable access to locally relevant rural content communicated but not recorded or reusable (such as a radio broadcast),whereas “offline” content is recorded and reusable, once it has been communicated (such as audio podcasts, SMS 17 See Esoko (http://www.esoko.com). messages, or voice mail). 18 Details available from the authors. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 27 BOX 2.7. Mobile Phones with Features Attract Rural Users in China and Beyond Chinese mobile phone producers are concentrated in the city of Shenzhen, Guangdong Province. They, as well as their products, have become known as shanzhai.a At least two innovative features associated with shanzhai devices have wider relevance to rural consumers’ use of, and preferences for, devices in developing countries. The first feature is that they allow users to store multiple (physical) SIM cards within the device, which allows them to switch between carriers without having to reboot the device. This feature responds to the price sensitivity of rural con- sumers in developing countries, who switch between carriers to take advantage of preferential termination rates for the carrier of their calling destination. Because the choice of mobile network operator can be limited in rural areas, consum- ers have strong incentives to take advantage of cost-saving opportunities when they exist. This demand-driven innova- tion has made no inroads into the products of popular mobile phone manufacturers, which are reluctant to undermine the business models of mobile network operators worldwide. Consumers who cannot purchase these devices can achieve the same results through street-level hack services offering software to configure from 6 to 16 SIM card identities on one physical SIM card, enabling users of unlocked mobile phones to switch conveniently among carriers. A second feature of devices from Chinese mobile phone manufacturers (relevant to convergence in the “infocom” sec- tor) is the addition of analog television reception. This feature is found in phones with large LCD screens like those of smartphones. The features in these devices illustrate ways that the global mobile phone industry could choose to respond to the demands and constraints of rural consumers—but has not. The preference of rural consumers in developing countries for access to television over radio is well established but constrained by poor access to the electricity grid. Unlike dedicated radio receivers, television sets have not evolved to operate on dry cell battery power alone, and mobile phone devices with analog television functionality are the exclusive option for rural populations. Given that television remains an effec- tive means of delivering agricultural extension messages, the lack of support for these and other innovative features introduced by Chinese phone manufacturers represents a missed opportunity in rural communication. Sources: Authors; Chipchase 2010; Abbey-Mensah 2001. (a) Shanzhai signifies Chinese imitation and pirated brands and goods, particularly electronics (http://en.wikipedia.org/wiki/Shanzhai, accessed July 2011). through connectivity providers, content creators and dissemi- use time, quantity of data transferred, or communications dis- nators, information intermediaries, social facilitators, informa- tance covered. Such models increasingly are replaced by more tion literacy educators, and the governance channels steering flexible subscription models and models centered on realized the performance of these services.19 Concerns with rural interactions and transactions, paid for via micropayments. In content have traditionally been alien to public policies aimed at developing countries, where consumers are more price sensi- universal service and universal access, but the convergence of tive and less willing to pay, the trend toward micropayments the mass media and telecommunications sector, as well as the poses a considerable challenge to content and value-added rise of the information society, make such concerns increas- service providers. The challenge is compounded by the mar- ingly prominent and crucial to unleashing a virtuous cycle of ICT ginal success of government and donor efforts to provide adoption and use in rural areas. The delivery of content-based content-driven rural services in developing countries. agricultural services is discussed in Topic Note 2.4. Traditionally, rural information services focused on provid- The service layer reflects the synergies (or lack thereof) ing broadcasting (“push”) content, such as rural radio pro- among network infrastructure, connectivity modalities, access gramming, but the ubiquity of mobile devices enables the devices, and content. The dynamics of the worldwide content sourcing and sharing (“pull”) of rural content. The presence marketplace point to the dying out of traditional communica- of mobile technology as an authoring tool in rural areas pres- tions business models, which centered on tariffs anchored in ents an untapped opportunity to engage rural users in author- ing content, thereby increasing the demand for existing rural 19 See the earlier discussion of the layered nature of access infrastructure. Mobile devices, in combination with broad- (“Access Concept”) and the Access Rainbow Framework. casting technologies such as radio, enable rural residents to I C T I N AG R I C U LT U RE 28 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS participate in public discourse and influence decision making. cannot afford their own phones or are not permitted to use In reviewing communication and media needs at the com- the personal phones of family members (Burrell 2010). The munity level in Ghana, (Dartey 2009) points out that call-in sharing and collaborative use of personal mobile phones can radio programs have become widely popular. Such programs enhance social ties but may also cement social inequalities. allow Ghanaians to express their opinions on issues of local concern. Another trend to be noted is the divergence in focus and targets of local (especially rural) demand-driven information The provision of rural ICT-based services in developing services relative to supply-driven services. Content-focused countries has a few discernible characteristics. One recur- service innovations tend to respond to local needs within the rent characteristic in successful business models is found entertainment, social networking, game, and music domains. at the literacy / social facilitation level of the Access Rainbow If managed carefully, such services can be legitimate drivers Framework. Successful business models manage to lever- of ICT use for demand-driven services in education, public age social networks and social value (UNDP 2008). Engaging awareness, health, and agriculture. Introducing immediately rural residents as individuals rather than as beneficiaries popular content is a way to attract and retain users. Once the appears to be essential in delivering a worthwhile value prop- user base is established, there is room for introducing more osition. Allowing rural residents to be trainers, to facilitate practical content, such as mobile banking (box 2.8). access to content, and to provide local support and mainte- nance appears to be a successful business strategy for the delivery of rural services (image 2.1). BOX 2.8. MXit Blends Entertainments and Practical Content in South Africa IMAGE 2.1. Cell Services in Rural South Africa Founded in 2003, MXit is a pioneering mobile media and social networking company based in South Africa. Initially, community issues and causes formed a strong focus for the networking it facilitated. Subsequently, it has expanded to cover entertainment (music downloads, mul- tiplayer games, TV polls), dating, classifieds, education, counseling (drugs, youth helpline), and mobile banking. The primary MXit product is software allowing mobile users to use instant messaging to participate in com- munity forums on different topics. The software can be installed for free, and there is no subscription and no charge for messaging. By using IP-based (GPRS, 3G) connectivity, MXit allows instant messaging at a cost Source: John Hogg, World Bank. per character hundreds of times smaller than the cost of an equivalent SMS message. These costs are cov- ered by revenues from advertising (wallpapers, promo- Even though the diffusion of personal mobile phones has tions, brand portals) and content sales (skinz, music, eroded the business logic behind well-documented models classifieds). such as the Grameen Village Phone (an owner-operated GSM Sources: Chigona et al. 2009; Prows 2009; Ramachandran 2009. payphone) (Futch and McIntosh 2009), the significance of social value remains a key building block of business models aimed at delivering rural ICT-based services. As pricing plans have changed over the past few years, the mobile payphone Currently, prepaid subscription models appear to be the has become less profitable as a business asset. Even so, standard operational mode for providing services in devel- the impersonal nature of mobile payphones is instrumental oping-country markets. Yet, as Topic Note 2.4 indicates, this to addressing concerns related to equal access. From the strategy may be impractical for rural content providers, given standpoint of public service provision, equal access to public the risks involved in subscription renewal and the high fixed phones continues to be significant, especially for women who costs of generating relevant rural content. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 29 Topic Note 2.2: PUBLIC INNOVATIONS IN UNIVERSAL ACCESS TO TELECOMMUNICATIONS TRENDS AND ISSUES Broadening Mandate of Universal Access / Universal With technology moving toward fixed-mobile convergence, Service Funds the provision of minimum services (other than telephony) The main vehicles for improving access to ICT in rural areas have and public access to ICT devices has fallen within the man- been the univeral access / universal service funds (UA/USFs) date of universal service regulations. This note examines established in the 1990s. The funds originally offered an opportu- the public sector’s changing and recently expanding role nity for funding and access to ICT solutions in underserved areas in providing affordable access to ICT infrastructure, appli- (Hudson 2010). Dedicated at first to increasing the penetration ances, and services, including the growing use of universal of landline telephone services, the funds now support mobile access / universal service funds. network development and Internet services in most countries.20 In some countries, such as Ghana and Mongolia, funds are Changing Role of the Public Sector disbursed to aid the provision of rural public access telephony Public involvement in the telecommunications sector evolved and Internet facilities. Although the expansion of mobile in a nonlinear way (Gómez-Barroso and Feijóo 2010). An early networks has reduced the urgency of public access to voice monopolistic stage after the Second World War was suc- telephony, arguments based on gender inequality and per- ceeded by a series of crises in the 1970s as services came ceptions of social obligation still favor the provision of public to be considered a “public matter” demanding closer govern- access (Burrell 2010). In allocating UA/USF funds to services ment involvement. In the 1980s, the public sector started other than voice telephony, some governments specify addi- giving way to the private sector, which was considered better tional criteria, such as the nearby presence of public-access equipped to deliver value and efficiency. facilities (telecenters, libraries, Internet cafes, and so on). The public sector’s current role in telecommunications can be Since cost-effective technologies for delivering rural access described as promoting the information society. Governments to ICT are evolving constantly, it is essential that UA/USFs do act as facilitators and enablers of universal access to telecom- not limit their technological scope and maintain technological munications, and the public sector has reemerged as an active neutrality. It is advisable for UA/USFs’ tender requirements to participant in the sector. In both developed and developing specify coverage, bandwidth, quality of service, target price, countries, public agencies are regarded as partners in funding and so on—but not technology. Rural areas where the profit- infrastructure in areas where the incentives for private invest- ability of telecommunications services is low can be of lim- ment are insufficient; they are also regarded as partners by vir- ited commercial interest to telecommunications companies. tue of their role in encouraging demand for telecommunications. Consequently, the UA/USF levy can run the risk of becoming In developing countries, local governments and international a simple direct tax on the operator, and a strategic approach development partners actively facilitate access to ICT at all lev- is needed to deliver ICT services and “unlock” the potential els (infrastructure, appliances, and services). of UA/USFs (especially in Africa) (UNCTAD 2010). It is within the domain of local government and public admin- istration to provide innovative methods for access to ICT in Public Support for Low-Cost Devices rural areas. Effective partnerships and public support are Unlike public support for the provision of infrastructure, pub- capable of overcoming obstacles at different access layers. lic support for the provision of low-cost devices has experi- Until recently, the public sector was not considered an inves- enced considerable criticism. The most prominent instance tor in telecommunications, but under the increasing pres- sure of the recent international financial crisis, governments 20 The objectives of UA/USFs can be at very different stages of development and maturity. Hudson (2010) reviews key lessons looked to ICT as fiscally sound investments relative to other related to UA/USFs’ management, professional capacity, size public stimulus options. Investments in broadband and next- of funding, and expanding mandate. Stern, Townsend, and Ste- generation networks are proving to work as countercyclical phens (2006) recommend the accelerated, simplified, and diver- sified use of UA/USFs. UNCTAD (2010) discusses in detail the tools for creating jobs and as building blocks of long-term challenges and opportunities for financing ICT in rural areas of economic recovery (Qiang 2010). developing countries through UA/USFs. I C T I N AG R I C U LT U RE 30 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS BOX 2.9. India Exemplifies Evolution in the Public infrastructure sharing is distinguished from “active infrastruc- Provision of Low-Cost Devices ture sharing,” which can involve the shared use of electronic infrastructure such as network components (for example, India’s union minister for human resource development access node switches), radio transmission equipment, and announced that the government would continue to sup- core network software systems (Ghosh, Aggarwal, and port development of a low-cost device with computing Marwaha 2009). Although active infrastructure sharing can and communication capabilities. The cost of the tablet raise concerns among mobile network operators, passive device, commonly known as the “Sakshat” (“before infrastructure sharing has become established as a reliable your eyes”), currently stands at US$35, but it is pro- mobile network expansion strategy, particularly for expen- jected to decline to US$10 through continuing research sive rural sites with high transmission and power costs. and development cooperation with private manufactur- ers. The government is committed to first provide the Nigeria has been named one of the telecommunications technology to 110 million schoolchildren. markets with the most promising potential for growth. Even so, the National Communications Commission has identi- The Indian program clearly demonstrates how the fied several issues as detrimental to this growth, including scope of public initiatives providing access to low-cost poor public power supply, poor security, and high operational devices has evolved, largely as a result of the compre- costs (Onuzuruike 2009). Gupta and Sullivan (2010) found hensive approach of the One Laptop per Child project. unreliable electricity and insecurity to be the main challenges Government initiatives aimed at the development of to operating mobile networks. These challenges were much low-cost technology devices include the active participa- more prominent in Nigeria compared to other West African tion of technology development partners (for example, countries with more reliable access to the electricity grid the Indian Institute of Technology Rajasthan) as well as (such as Ghana, Cameroon, and Côte d’Ivoire). Gupta and further development and investment in communication Sullivan (2010) calculated that costs of fuel for generators, layers other than the appliance itself. The Indian Ministry including a minimum of 20 percent of fuel lost to theft, for Human Resource Development is simultaneously amounted to 60–90 percent of the costs of running net- tackling the problems of device/hardware affordability work sites in Nigeria. Base station costs in Nigeria add up and content creation by ensuring that electronic con- to US$200,000–250,000, 3.5 times higher than in India (US$ tent for the devices is generated under the National 60,000–70,000). Some of these limitations are at last being Programme on Technology Enhanced Learning. overcome through passive infrastructure sharing. Sources: Author, based on “India to Unveil £ 7 Laptop,” The Guardian, February 2, 2009 (http://www.guardian.co.uk/world/2009/feb/02 /india-computer-cheapest, accessed July 2011); “India Unveils World’s Helios Towers Nigeria (http://www.heliostowers.com Cheapest Laptop,” The Guardian, July 23, 2010 (http://www.guardian.co /homepage) significantly decreases the impact of such issues. .uk/world/2010/jul/23/india-unveils-cheapest-laptop, accessed July 2011); “Low Cost Access-Cum-Computing Device Unveiled by Shri Kapil Sibal,” In 2005 Helios Towers became Africa’s first independent The Hindu, July 23, 2010 (http://www.thehindu.com/news/resources /article529944.ece, accessed July 2011). mobile tower company, enabling wireless network operators to share infrastructure. The organization buys nonelectronic infrastructure at the cell site from telecommunications provid- ers, such as towers and power supplies, or develops new infra- was government involvement in the One Laptop per Child structure where none exists. Telecommunications companies project (Burke 2006; Hollow 2009; Kleine and Unwin 2009). rent space at the towers and access to other elements of the Yet government efforts to provide low-cost devices persist communications infrastructure, sharing it with other providers. and are evolving (box 2.9). Helios Towers estimates that clients colocating on one of their towers can save over US$200,000 in capital expendi- INNOVATIVE PRACTICE SUMMARY tures and up to 20 percent in operating expenditures. Helios Passive Infrastructure Sharing in Nigeria Towers also provides wireless operators with power, round- “Passive infrastructure sharing” is the sharing of nonelec- the-clock security and access (shelters have typically been tronic infrastructure, equipment, and services at mobile subject to vandalism), and other services such as installation network base stations, including the site space, buildings, and maintenance. According to its website, the company’s towers, masts, and antennas; power supply, back-up bat- large-scale and numerous sites allow it to offer a guaran- teries, and generators; security; and maintenance. Passive tee of 99.9 percent uptime for service users, compared ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 31 to a 70 percent industry average. Network operators thus problems faced by operators in operating and managing wire- improve the quality of service for customers and can pass less infrastructure. As Onuzuruike (2009) notes, tower manage- the associated cost reductions on to them. ment companies usually enjoy scalable and long-term recurring revenues with contracted annual escalations. They also benefit The economies of scale that Helios Towers and companies from low churn rates and low operating and capital costs. Hence like it generate enable them to provide access in areas where they are able to ensure the fair treatment of new entrants while it would not be financially advantageous for other companies, satisfying incumbents (by purchasing their infrastructure and such as network operators, to do so. Access is increased allowing the operators to outsource at a lower cost), at the in rural areas, for example, or areas where power supplies same time providing more comprehensive service to end users. previously were poor. Helios Towers depends on wireless operators buying into its Helios Towers’ first site went live in June 2006, and since service. The company is able to offer a basis for partnership then the company has expanded to include over 1,000 four- that makes their proposition highly attractive to corporate operator sites across Nigeria’s six geopolitical zones. Through clients: infrastructure sharing lowers the risk represented by them, MTN Nigeria provides services in 223 cities and towns, investment in network expansion and upgrades. The company more than 10,000 villages and communities, and a growing counters the rising price of site rentals by sharing this cost number of highways across the country. In August 2004, MTN among partners; site owners, in response to the rising demand had coverage in all 36 states and the Federal Capital Territory for provision in underserved areas, have increased their rents, Abuja, and their signal reached 80.9 percent of Nigeria’s total and local government restrictions on new tower construction population, living in 58.33 percent of its landmass.21 Similarly, owing to health and environmental hazards have only increased through Helios Towers, Zain Nigeria22 (MTN Nigeria’s largest the attractiveness of passive infrastructure sharing. competitor) currently covers over 1,500 towns and 14,000 communities across all six geopolitical zones. Zain was the To retain its many partners (aside from MTN and Zain, they first telecom operator to serve all of the zones.23 Considerable include EMTs, Starcomms, Reliance Telecoms, and Visafone) overlap in the coverage offered by these and other network and provide comprehensive nationwide service, Helios offers operators provides significant advantages to end users: The services to the full range of wireless operators: GSM, CDMA, resulting competition lowers tariffs and enhances choice. and WiMAX operators utilizing 2G, 3G, and 4G technology platforms. It is also prepared to build towers where there The National Communications Commission supported this are none, even when it is not financially advantageous in the new business model and developed a regulatory framework short to medium terms, to improve its network and remain for potential colocators. This framework suggests how to the dominant supplier. As a result, operators can expand into share infrastructure to promote fair competition and infra- rural markets and other underserved areas while keeping structure sharing among the telecoms’ licensees. It effec- their costs—and, crucially, their tariffs—low. tively enables organizations such as Helios Towers to operate with state support and gives network operators a strong incentive to align with such a powerful ally. INNOVATIVE PRACTICE SUMMARY Turkey’s Oligopolistic Infrastructure The business model developed by the growth of tower man- Sharing Model agement companies such as Helios Towers has helped erase The Turkish mobile telecommunications market is dominated by Turkcell, Vodafone Turkey, and Avea (a wholly owned 21 See http://www.mtnonline.com/index.php/about.html, accessed subsidiary of Turk Telekom, the largest telecommunications July 2011. 22 In 2010 Bharti Airtel of India completed the acquisition of the Zain company in Turkey). Following an agreement announced by Group in a US$10.7 billion deal (Pan 2010), which included own- Turkcell and Turk Telekom in August 2009, the two compa- ership of Zain’s assets in Africa (network operations in Burkina nies (and, to a lesser extent, Vodafone) have made strides to Faso, Chad, Democratic Republic of Congo, Republic of Congo, Gabon, Kenya, Ghana, Malawi, Madagascar, Niger, Nigeria, Tan- reduce the costs of introducing 3G mobile broadband tech- zania, Sierra Leone, Uganda, and Zambia). In these countries, nology in Turkey through passive infrastructure sharing.24 Zain operations are currently known as Bharti Airtel. This section maintains references to Zain Nigeria. 23 Coverage information publicized online (http://www.ng.zain.com 24 “3G in Turkey: By Sharing Infrastructure?” Developing Telecoms, /System/AboutUs/tabid/59/Default.aspx) by Zain Nigeria, prior to August 12, 2009 (http://www.developingtelecoms.com/3g-in its acquisition by Bharti Airtel. -turkey-by-sharing-infrastructure.html), accessed July 2011. I C T I N AG R I C U LT U RE 32 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS They have signed contracts with Huawei, ZTE, and Ericsson in the highly competitive business models of infrastructure for this purpose. providers, which enable more and later entrants to the mar- ket (such as ZTE). The price-competitive business model has This highly interesting development in infrastructure also enabled customers to receive services at lower prices: sharing involves competition from both ends of the part- Ericsson, Huawei, and ZTE must streamline their own profits nership. Unlike in Nigeria, where Helios Towers enjoyed to offer the MNOs maximum cost savings (to gain market unparalleled relationships with both Zain and MTN, here share); and Turkcell, Vodafone, and Telekom Turk must pass the infrastructure managers must fight to retain convivial on a significant proportion of these savings to customers relationships with their clients. This competitive landscape (again, to achieve greater market share). reflects the business model promoted by Turkey’s regula- tory framework. Although the partnership structure that has evolved in Turkey is less convivial than that in Nigeria, it has still been key Turkey’s ICT sector lags its European counterparts in some to implementing 3G technology. The agreement between areas, with declining numbers of fixed telephone lines (27.3 Turkcell and Telekom Turk to jointly reduce infrastructure percent of the population in 2000, compared with 24.6 per- costs has been particularly instrumental in avoiding another cent in 2007) and slow penetration of the Internet market false start in bringing 3G to Turkey (Rossotto et al. 2010). (from 2.2 percent in 2000 to 6.3 percent in 2007) but rapid growth in mobile subscriptions (rising from 23.9 percent pen- The competition among key players in the infrastructure etration in 2000 to 83.9 percent in 2007) (Rossotto et al. 2010, provision industry has ensured comprehensive coverage 229–30). This sector profile reflects Turkey’s young popula- of the different routes and technologies into mobile broad- tion: 92.9 percent are under the age of 64 (Rossotto et al. band; Ericsson’s Converged Package Gateway, for example, 2010, 230). This demographic suggests the huge potential is suitable for operators “providing high performance broad- of wireless broadband in Turkey, which is why international band LTE services, CDMA operators moving to LTE, and players such as Vodafone, Huawei, and Ericsson are keen to operators wanting to provide mobility between LTE, 3GPP invest heavily in the country and compete among themselves and ‘non-3GPP’ access networks such as wireless LAN or for market dominance. Because contracts were exchanged Wimax.”26 ZTE and Huawei provide similarly encompassing only recently (2009), it is still difficult to evaluate the impact services. of the technology or the competitive business model under which it is provided.25 INNOVATIVE PRACTICE SUMMARY Regulatory reform of the Turkish telecommunications indus- Dabba’s Experience with Unlicensed try has been a concern. Rossotto et al. (2010) report that Wireless Services in South Africa regulators seek to promote a fully competitive market sector One obstacle to expanding wireless technologies is the unli- through plans modeled loosely around the EU framework. censed use of wireless services. The main problem associ- Although Turk Telekom (privatized in 2005) dominates the ated with unlicensed multipoint wireless services is interfer- telecommunications industry with its 93 percent market ence arising from the operations of other wireless networks share, this dominance is being most convincingly challenged within an area. Interference often causes unlicensed wire- in mobile communications. Turkcell and Vodafone both enjoy less services to have much higher error rates and interrup- greater market share in this subsector, thanks to the regula- tions than equivalent wired or licensed wireless networks tory efforts made to ensure fair competition. (for example, copper telephone, coaxial cable, and mobile Despite these efforts at promoting competition, a market networks). For these reasons, unlicensed multipoint services share analysis demonstrates that the market is moving often grow slowly and lose customers; their operators may toward an oligopolistic structure in terms of competition be required to rethink their business model. among mobile network operators as well as among infra- Interference problems have yielded several responses. An structure managers such as Ericsson. This shift is reflected organizational response has been to establish voluntary 25 “Ericsson to Build 3G Network for Turkcell,” Ericsson, March 11, 2009 (http://www.ericsson.com/news/1296824, accessed July 26 See http://www.ericsson.com/ourportfolio/telecom-operators, 2011). accessed July 2011. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 33 spectrum coordination organizations, entirely independent of Dabba offers free calls within the local network and pay- government, to coordinate the actions of unlicensed wire- as-you-go cards for users who wish to place distance calls less network operators and minimize disruptions through (avoiding subscription fees). the maintenance of an operator frequency and sources data- base. Cooperation with the voluntary coordination body is Initially, Dabba exploited the new regulatory freedom pro- enforced through peer pressure by cooperative operators on vided by an August 2008 High Court Ruling, which found that uncooperative operators.27 anyone in possession of a Value Added Network Services (VANS) license (which Dabba held) was entitled to “self- A technology-centered approach to the interference issue is provide” and compete in the formerly oligopolistic market the development of adaptive and mesh network technolo- (Esselaar et al. 2010). The market grew from four players to gies. Adaptive networking improves performance by devel- potentially hundreds overnight. Dabba took this relative free- oping dynamic interference and fault detection and recon- dom beyond its regulatory limits, however, and was found to figuration protocols. Mesh networking optimizes quality over be using ISM (industrial, scientific, and medical) Wi-Fi bands, routing and the possible paths for the delivery of service to for which it was not licensed, and using equipment that was customers. Neither technology is yet capable of delivering not type-approved.29 high-speed, low-latency, business-class, and reliable local loop service, however.28 Such unlicensed use perhaps derived from Dabba’s business model, with its ever-pressing need to reduce operating costs. As partners of the Village Telco service in South Africa, the Dabba adds value for consumers by offering them the least company Dabba and the Shuttleworth Foundation in the expensive rates (free local calls, pay-as-you-go distance calls, Orange Farm Settlement provide telephone and mobile no subscriptions). Cheap service compensates for the lower access through VoIP wireless routers. Founded by Rael quality of service that Dabba’s technologies sometimes pro- Lissous in 2004, Dabba reprogrammed Wi-Fi routers as base vide. Although this model enabled Dabba to grow quickly in stations and used open source firmware to make up the its pilot area, where customers had little to lose by joining components of a telecommunications network. Following the network, it generated enormous pressure to operate complaints to the Independent Communications Authority cost-effectively. of South Africa by the incumbent operator, Telkom, that Dabba was interfering with its licensed service provision, This pressure has abated through Dabba’s new partnership Dabba’s equipment was seized in February 2009. Dabba has with Cisco. Cisco has provided new equipment and support since returned to work with a new business partner, Cisco, and has provided 100,000 rand to initiate an ICT entrepreneur the international networking and communications expert. program, enabling Dabba to expand into two new town- ships.30 Dabba has also received additional support from Dabba is an example of innovation to avoid the high costs the Shuttleworth Foundation, which underwrites all of their typically associated with telecommunication service provi- work. Dabba can now pursue its original business model sion to rural and unserved areas. Wi-Fi enables access to while remaining more firmly within South Africa’s regulatory large areas at a low cost, as hot spots with amplifiers can framework. cover ranges of up to 8 kilometers, allowing Dabba to serve entire townships with minimal outgoing expenses. In the The lightweight Ubiquiti equipment employed since Cisco’s densely populated townships, this has proved a winning involvement is inexpensive. It uses solar energy and bat- formula for providing telecommunications to large numbers tery packs connected by locally made antitheft brackets to of people and for passing on the low costs to the end user. reduce costs further. This setup, combined with the use of Wi-Fi and wireless mesh networks, makes Dabba well- suited to provide coverage for small, local groups and 27 BANC (Bay Area Network Coordination), the first voluntary coordination body, was founded in 2003 by NextWeb, Etheric Networks, GateSpeed, and a handful of other companies. BANC comprised the majority of operators in California’s Bay Area and 29 “ICASA Defends Wi-Fi Equipment Confiscation in South Africa,” used peer pressure to get uncooperative operators to conform. Balancing Act, Issue 443, February 27, 2009 (http://www BANC was subsequently deployed in Los Angeles. Despite its .balancingact-africa.com/news/en/issue-no-443/internet/icasa efforts, some members of BANC switched to licensed opera- -defends-wifi-e/en, accessed June 2011). tions because of the high costs of interruptions, and the system 30 “Low-Cost Phone and Voice Operator Bounces Back with Entre- foundered. preneur Support from Cisco,” Balancing Act, Issue 451, April 23, 28 The source for this paragraph is http://en.wikipedia.org/wiki 2009 (http://www.balancingact-africa.com/news/en/issue-no-451 /Wireless_local_loop. /top-story/low-cost-phone-and-v/en, accessed June 2011). I C T I N AG R I C U LT U RE 34 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS townships, whereas large, centralized projects could not They also suggest that Bhutan’s relatively young population provide services that most users could afford. Dabba is an indication of the potential impact of the telecommunica- has renewed its operations so recently, however, that its tions sector. impact remains unclear. A key factor enabling development of the CICs is that they not only receive strong government support but also are in fact INNOVATIVE PRACTICE SUMMARY government led and organized and in effect self-regulating. Bhutan’s Community Information Centers Adapt As long as local managers produce a profit and offer the ser- to the Geographical and Consumer Context vices detailed in the government guidelines, they are free to operate their CICs as they see fit. Running the centers is thus Bhutan’s Department of Information Technology (DIT) has rendered attractive to local entrepreneurs. established a series of community information centers (CICs) to provide sustainable, commercially viable ICT services in This business model of local autonomy underwritten by rural areas. DIT provides all of the equipment for offering government support is crucial to the CICs’ success. Some CIC services, and the local community provides an individual villages are so remote (in extreme cases, several days’ who is employed to promote and maintain those services. walk from the nearest road) that only locals can under- Services available at the CICs include basic and advanced stand the market conditions.34 By international standards, computer training, non-Internet-based games, digital repro- Bhutan’s national media (particularly its newspapers) are duction, the Internet, telephone facilities, government infor- weak, and rural service users are likely to have higher lev- mation and forms, and lamination and scanning. els of trust in local business managers. However, central intervention will be necessary to subsidize the high costs In line with the government’s ninth five-year plan, the CICs of accessing some rural areas, which is crucial if telecom- represent an updated effort to provide rural Bhutan (just over munications are to reach the population at large. The part- 79 percent of the population) with some telecommunica- nership between local and players and government strikes tions connectivity. Bhutan’s mountainous, forested terrain a favorable balance. (forests occupy nearly three-quarters of its land area)31 have made wired Internet and telephone connectivity prohibitively The Government of Bhutan plans to provide a hub-and-spokes expensive for operators and end users. The CICs reduce the network, enabling it to overcome the difficulties associated costs for the end user, who pays on demand only for the with placing infrastructure in mountainous and remote ter- services required, and public access through CICs renders rain. It seeks to provide a network of broadband connection service provision more attractive by expanding the customer through fiber-optic cables from the capital and out to the 20 base. Individuals who could never afford their own personal districts (dzongkhag) and village groups (gewog). The con- connection to the telecommunications network may still nection from districts to village groups and on to the villages prove a significant source of income to the CIC, especially will be provided by wireless technologies such as GSM. when such individuals are considered in the aggregate (vil- These “spokes” lead to the CICs.35 lages average 43 households).32 The CIC initiative is still in its infancy; the decision to move LESSONS LEARNED from government-owned facilities to commercial, locally The enabling factors and lessons surrounding regulation, managed centers was made in late 2008. Microsoft’s base- business models, partnerships, and infrastructure for these line surveys suggest that when access to telecommunica- initiatives in Nigeria, Turkey, South Africa, and Bhutan are tions was available, “the population was adept at using the summarized in tables 2.2 and 2.3. devices and their usage permeated . . . the community.”33 31 Tobgyl (n.d.,3). 32 Tobgyl (n.d.,4). 33 Bhutan Department of Information Technology, “Microsoft 34 Tobgyl (n.d.,4). Unlimited Potential Baseline Survey on Socio-economic Demo- 35 Ministry of Information and Communications (Bhutan), “Vision graphics and Information Needs,” (http://www.dit.gov.bt/content for Information Society” (http://www.moic.gov.bt/pdf/Vision%20 /microsoft-cic, accessed July 2011). for%20information%20Society.pdf, accessed July 2011), p. 10. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 35 TABLE 2.2. Key Enabling Factors for Innovations in Rural ICT Provision in Nigeria, Turkey, South Africa, and Bhutan ASPECT HELIOS TOWERS, NIGERIA INFRASTRUCTURE SHARING, DABBA WIRELESS COMMUNITY INFORMATION TURKEY SERVICES, SOUTH AFRICA CENTERS, BHUTAN Regulation  Support from Nigerian ICT  Telecommunications sector  Changes to VANS licensing  Government-led and organized, regulatory body recently focused on regulatory opened a formerly restrictive hence effectively self-regulating  Framework to suggest how to reform and promoting a fully telecommunications market to service share infrastructure to promote competitive market structure new players such as Dabba,  Local entrepreneurs free to act fair competition and infrastruc-  Allows companies like Vodafone allowing them to “self-provide” as they feel most appropriate, ture sharing between telecoms’ and Turkcell to thrive; enables if they did not cause interfer- provided they make a profit and licensees backs Helios business new companies to enter the ence to licensed networks and offer the services detailed by model market used type-approved equipment government guidelines (within the framework of other laws) Business  Scalable and long-term recur-  Oligopolistic model has led  Low-cost / lower-capabilities  Local autonomy underwritten Model ring revenues, low churn rates, to price competition, giving model: Offers customers a by government support enables and operating costs: allow consumers connectivity at lower-commitment approach to the CICs to combat the remote NMOs to achieve savings increasingly lower prices telecommunications nature of some locations through outsourcing while  Network managers such as  Free Internetwork calls and pay- and the lack of inbuilt trust retaining profit themselves Ericsson must pass more of as-you-go card for distance and in national communication their own savings on to MNOs international calls systems (due to a weak national media) Partnerships  Large numbers of corporate cli-  Agreement between major  Cisco has offered equipment  Partnership between govern- ents, rendering Helios dominant mobile telecommunications and financial support ment departments and villages network: financial capability to operators to share infrastructure  Has paid to initiate an entre- (gewog) to provide national expand throughout Nigeria and costs in the implementation of preneurship scheme, enabling service in remote areas become most comprehensive 3G technology Dabba to expand into two new  Microsoft involved in planning network  On-record support for passive townships and development, bringing infrastructure sharing from experience and expertise in multiple players systems implementation Network and  Helios offer services to the full  Comprehensive service provided  Lightweight Ubiquiti equipment  Hub-and-spokes network, with Infrastructure range of wireless operators: due to network management is low cost and uses solar fiber-optic broadband connec- GSM, CDMA, and WiMAX companies’ desire to remain energy and battery to reduce tion to the districts (dzongkhag) operators using 2G, 3G, and 4G competitive: Variety of entries costs further passed on through wireless platforms provided to mobile broadband  Wi-Fi and wireless mesh technologies to the gewog, and  Willing to build new towers service networks well suited to provide eventually individual villages. where there are none coverage for small, local groups combat problems of wired and townships access in difficult terrain Source: Authors. TABLE 2.3. Lessons Learned from Rural ICT Provision in Nigeria, Turkey, South Africa, and Bhutan INFRASTRUCTURE SHARING, DABBA’S WIRELESS SERVICES, COMMUNITY INFORMATION HELIOS TOWERS, NIGERIA TURKEY SOUTH AFRICA CENTERS, BHUTAN  Outsourcing can lower costs:  Companies must adapt to the  Consider regulatory issues:  Geography matters: Bhutan may Economies of scale enabled Helios existing market structure: Dabba lost valuable time and equip- have to accept that nationwide con- Towers to make a profit in difficult Attempts to produce fully competi- ment investment by working outside nectivity is not financially feasible areas and enabled MNOs to enter tive markets have stalled in the face of regulatory approval in the short to medium terms, due to previously unserved areas of Turkey’s dominantly oligopolistic  Employ local expertise: Antitheft the remoteness of some villages and  Service provision is a vital part system brackets produced in the network’s rough terrain of product provision: Helios has  Powerful players can lead area and other locally made equip-  Adapt the service to consumer offered security assurance and to consumer savings: Turkey’s ment have helped keep costs down needs: Studies have shown that 24-hour access, alongside its towers telecommunications industry is the people of Bhutan have found and connectivity, to assuage fears oligopolistic in multiple and vital little need for technologies such as affecting MNOs’ own operations sectors, forcing all to use economies facsimiles; implementers should (e.g., vandalism) of scale to provide savings to clients offer technologies in such a way that their consumer added value is immediately apparent Source: Authors. I C T I N AG R I C U LT U RE 36 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS Topic Note 2.3: MOBILE MONEY MOVES TO RURAL AREAS TRENDS AND ISSUES IMAGE 2.2. Ghana’s Telecommunications Infrastructure One consequence of improved access to ICT infrastructure, Expands the Use of Mobile Money appliances, and services in rural areas may be that rural peo- ple will gain better access to financial services and additional sources of income (image 2.2). The telecommunications and microfinance industries have grown rapidly in recent years and are overcoming the traditional challenges of reaching rural and formerly underserved areas. This topic note spe- cifically examines the business models and enabling factors that are making new sources of financing and income acces- sible in rural areas. Mobile banking is a logical consequence of the growth of telecommunications and microfinance. In developing economies worldwide, companies have sprung up to deliver Source: Arne Hoel, World Bank. financial services outside of conventional bank branches, through mobile phones and nonbank retail agents. A particu- larly well-known service is M-PESA. Operated by Safaricom Such ventures are united by the goal of enabling the eco- in Kenya, M-PESA allows users to transfer money through nomically active poor to use telecommunications technology their mobile phones, without having to register or qualify for to help themselves. Mobile financial and income-generating a bank account. services, such as M-PESA, Zain Zap, easypaisa, and txteagle, M-PESA does not operate in a vacuum; easypaisa in Pakistan, discussed in this note—cost little and operate on all hand- G-Cash in the Philippines, and Bancosol in Bolivia are just a sets, making them advantageous on a large scale, even in few enterprises that provide some form of mobile financial more remote rural areas where previous efforts made few services to the un- and underbanked poor. One rural bank, inroads. Advances such as smartcards, fingerprint-sensitive Green Bank, has calculated the substantial savings from ATM machines, and market kiosks equipped with electronic using mobile technology: By switching from field-based to point-of-sale devices have also made such programs vastly text-based collection, it reduced its interest rates from 2.5 to easier to implement (and more likely to reach the intended 2 percent and its service charges from 3 to 2.5 percent, yet beneficiaries). profits rose by US$16 for every US$400 loan (Kumar, McKay, and Rotman 2010). INNOVATIVE PRACTICE SUMMARY The rise of mobile income sources is another trend behind M-PESA’s Pioneering Money Transfer Service the demand for mobile financial services. In recent years Based on a pilot funded in part by public funds from the UK conditional cash transfer programs in many countries have Department for International Development, Vodafone and provided government payments to economically and socially Safaricom launched M-PESA in Kenya in February 2007 in disadvantaged households, especially the economically partnership with Sagentia.36 The M-PESA pilot focused on active poor, conditional on measurable actions (for example, microloans and repayments, but research indicated that con- enrolling girls in school, obtaining consistent prenatal care, sumers primarily would use the service for person-to-person or using agricultural inputs). Telcommunications technol- money transfers. ogy is transforming governments’ capacity to deliver these additional sources of income quickly, reliably, and at a lower Following the pilot, M-PESA launched with a person-to- cost. It is also allowing farmers to access commercial banks person business model, whereby customers can buy e-money and critical services—including credit, savings accounts, and remote transfers—despite distance and a lack of local banking facilities. 36 “M” for “mobile; “pesa” for “money” (Swahili). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 37 from agents throughout Kenya. Any commercial space may The importance of this flexible “proportional risk” system of become an agent, making this model particularly effective regulation is evident in M-PESA’s stalled attempts to operate in rural areas. Mobile phones are used to perform financial in India, where regulators insisted on a connection with a transactions, such as sending money to others, paying bills, licensed bank. In Afghanistan, regulations to prevent money and even withdrawing cash from an ATM (without needing a laundering have constrained M-PAISA’s development as a bank account). E-money can be cashed in with agents who money transfer service, and it operates predominantly as receive a commission for the services they provide and for a microfinance service. The need for identification details registering customers. detracts from M-PAISA’s simplicity and thus its appeal. M-PESA’s great innovation has been to provide a service accessible to the unbanked populations of emerging econo- A Business Model That Sidesteps the Banking Sector mies at a low cost. M-PESA costs users about one-third as The M-PESA business model is characterized by low margins much as using a money-transfer company such as Western and high volumes, whereas banks traditionally need relatively Union, and it is still cheaper than banks. Such companies high margins from far fewer people with bank accounts. cannot match M-PESA’s low rates because their operating Independence from the banking sector opened up a huge costs are higher (Omwansa 2009:6). untapped market for M-PESA; 90 percent of Kenyans did not have a bank account. Although only registered users can initi- M-PESA now has over 10 million customers in Kenya, and ate transactions, anyone may receive money from M-PESA services have been introduced in Tanzania and Afghanistan and withdraw it as cash. This positive nonuser experience (called M-PAISA in the latter); a number of other deploy- was crucial to the user network’s growth. This business ments are planned across Africa and Asia.37 Success has model has allowed M-PESA to become the dominant and so exceeded expectations that M-PESA has faced system most attractive network. M-PESA’s low costs have enabled capacity and cash flow problems. Cash flow problems have it to challenge money transfer companies and banks, even arisen internally (as agents are paid to register customers, where they are present. Yet, over time, many M-PESA users who take time to become profitable) and at the point of use graduated to having bank accounts, and M-PESA is now inte- (agents run out of both e-money and cash). The problem grated with the banking system. particularly affects rural areas, where people receive remit- tances from urban workers and withdraw them as cash. To Partnerships Facilitate Marketing and Technical counteract this problem, larger agents now act as “super- Operations agents,” selling e-money and cash to smaller agents. M-PESA’s collaborative nature is fundamental to its success. Vodafone, as well as providing the initial funding, holds a A Flexible Regulatory Environment coordinating role. Safaricom has provided a brand that many Flexible regulation has been critical to M-PESA’s success. Kenyans trust, and its nationwide airtime reseller distribu- Working with the UK Treasury, the Central Bank of Kenya tion network easily transformed into a network of dedicated set up special provisions for M-PESA to launch its product M-PESA agents, enabling more rapid market penetration. with limited risk to the consumer but without being linked Vodacom undertakes Safaricom’s role in Tanzania (and is its directly to a bank and with relatively low levels of regulation. sister company); in Afghanistan, Roshan, a large MNO, has Subsequently the Central Bank provided informal monitoring been vital in developing the service. Sagentia (IBM, as of as opposed to formal regulation. By the time banks and com- September 2009) provided key technical expertise. The use petitors realized M-PESA’s potential and began to demand of public funds during the development stage is regarded as its regulation, the firm was already well established and crucial for maintaining interest in the telecommunications respected. At the urging of the banks, the Central Bank con- sector during the pilot, which took longer than expected. ducted a thorough audit of M-PESA and found it to be fulfilling all its consumer obligations; the Central Bank has therefore Networks, Appliances, and Infrastructure continued enabling this special regulatory environment. Registering with M-PESA requires proof of identity, a SIM card, and submitting a PIN. In addition to providing 37 Safaricom statistics, June 2010 (http://www.safaricom.co.ke security, another key success factor was the added con- /index.php?id=1073, accessed June 2011). venience of the customer being able to retain his or her I C T I N AG R I C U LT U RE 38 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS phone number. Since applications are on SIM cards, they In 2010, Zap expanded to Niger and Sierra Leone, and it has a do not depend on the functionality of handsets, a factor pilot scheme in Malawi. Zain claims that Zap is now the most crucial in making M-PESA financially accessible: M-PESA comprehensive mobile commerce service in Africa, with works on even the most basic and inexpensive handsets. over 150 million customers. This claim suggests significant In Tanzania, M-PESA uses USSD technology, which does impact in some of the world’s most unbanked populations, not require a SIM card to be replaced and allows transac- particularly in rural areas without physical bank facilities. Zain tions to be completed in real time without any application eventually plans to roll out Zap in all 24 countries in Africa stored on the phone. and the Middle East where it has mobile networks. If regula- tion permits this growth, Zain’s infrastructure leaves it better M-PESA has a widespread and dense network of agents. placed for such expansion than M-PESA. Kenya had 7,000 M-PESA agents in April 2009 but only 750 bank branches, allowing M-PESA to reach significantly more people, especially rural people, than competitors.38 Thriving within Regulatory Constraints The advantage obtained by being first in the market allowed Zain’s expansion has been checked by regulatory constraints; M-PESA to build the dominant network in its pilot country Zain operates in Lebanon and Zambia without One Network and become the most attractive network for new customers because it has not yet received governmental approval in and businesses (as with companies such as eBay). these countries. However, Zain makes good use of its various partners to ensure that national and international banking regu- lations are met, and the company seems happy to operate INNOVATIVE PRACTICE SUMMARY within this framework. Zain works with the National Bank of Zain Zap Promotes Borderless Mobile Commerce Malawi and NBS Bank in Malawi, Eco-bank in Niger, and Zenith Bank in Sierra Leone. In Kenya, Tanzania, and Uganda, Citibank Zain Zap is a mobile phone–based banking service.39 As and Standard Chartered Bank work in partnership with Zain. M-PESA’s largest competitor, Zain Zap allows clients to trans- fer money via mobile phones but requires each user to have a bank account. Although registering with Zap is more com- A Business Model Seeking to Balance Availability plicated than registering with M-PESA, Zap offers potential and Accessibility access to a greater number of services. In partnership with Zain’s business model treads a fine line between widespread banks in Kenya, Tanzania, and Uganda, Zap provides plat- availability and accessibility. Its interaction with banks and its form access to financial services to people without a nearby provision of mobile banking opportunities to all its dispersed bricks-and-mortar bank. customers allow greater possibilities for the business to grow in rural areas, as small-scale business owners gain access to Zain Zap has differentiated itself from M-PESA by inno- financial services they previously lacked. Zain’s only source vating along international lines, operating across Kenya, of revenue comes from a fixed fee for every transfer made Tanzania, and Uganda without subjecting users to addi- through Zap, however. It does not attempt to make money tional fees, administration, or regulation. It forms part of a on deposits or withdrawals but recommends a fee to agents, wider Zain network, called One Network, which provides who are then free to charge as much as they like. This prac- international mobile coverage without the expensive rates tice could lead to very high prices for customers, especially usually associated with cross-border communication. until other agents appear. Before Zap, Celtel (now Zain) introduced a competing product soon after the launch of M-PESA, but the product’s very different pricing structure caused it to be withdrawn Partnerships with Big Banks and Big Clients due to low demand. Non-Zain mobile operators can buy a place in the service: In November 2009, the Arab Republic of Egypt’s Mobinil joined, 38 See M. Barrett, M. H.S.A. Kim, and Karl J. Prince (2009), “M-PESA adding 24 million customers to the platform. This practice aids Power: Leveraging Service Innovation in Emerging Economies.” Case study and teaching note, available through www.ecch.com. international expansion and allows for the inclusion of local exper- 39 Since the 2010 acquisition of Zain Group’s African assets by tise in the business model. As well as partnering with large-scale Bharti Airtel, the Zain Zap platform has been rebranded as Airtel banks, Zain has also signed deals with large corporate clients Money. Bharti Airtel mobile network operators from Africa main- tain their participation in the One Network, alongside Zain mobile such as Coca-Cola and Kenya Airways to allow users to pay for network operators in the Middle East. these companies’ products through their mobile phones. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 39 Networks and Infrastructure a strong opportunity for income generation in underbanked The primary factor in Zap’s successful development is that it areas. Though Tameer largely operates through bank belongs to Zain’s One Network, the world’s first borderless branches at present (despite its branchless banking license), mobile service. According to Zain’s corporate website, One and thus favors urban areas, the rise of its easypaisa service Network offers over 90 million of Zain’s (and partner mobile looks set to counteract this imbalance. operators’) customers relatively inexpensive rates, free of Since its commencement, Tameer has disbursed more than high roaming charges for cross-border communications. 3.5 billion rupees (Rs), with an active portfolio of Rs 1.4 billion One Network not only aids rapid expansion by giving Zap a and over 80,000 loan customers. The total customer base of pretargeted customer base, it also offers consumers large Tameer is over 170,000; it employs 1,100 staff.41 incentives to join Zain’s network and use its services (over others, such as M-PESA). A Business Model Benefits from Microfinance Regulation As CEO Nadeem Hussain noted, one of the major enabling INNOVATIVE PRACTICE SUMMARY factors for Tameer was the SBP 2001 Microfinance Ordinance, Pakistan’s Tameer Microfinance Bank for the which regulates the creation of commercial microfinance Economically Active Poor banks. Tameer argues that unless microfinance is financed Tameer Microfinance Bank describes itself as “one of the through commercial sources, it will remain in the realm of first nationwide, private sector, non-NGO transformed, com- development aid and its growth will be limited.42 For this mercially sustainable microfinance institutions in Pakistan.”40 reason, the Consultative Group to Assist the Poor has been A majority share is held by Telenor Pakistan. Tameer has involved with branchless banking regulation in Pakistan from produced an innovative hybrid of M-PESA and Zain Zap’s ser- the beginning. Regulation has allowed the use of retail stores vices for the economically active poor in Pakistan. as agents. With its new easypaisa service, Tameer matches M-PESA’s Regulation also made it possible for bank and telecom opera- ability to reach the unbanked. Currently, easypaisa is available tors to enter into a business model conducive for commercial to pay utility bills, but it plans to expand into sending and success. The two partners offer those services that each is receiving money within Pakistan and receiving money from best placed to deliver: Telenor acts as a distribution arm for abroad. As with M-PESA, customers do not need a bank branchless banking, organizes channel management and account and can access the service from a variety of portals, retail setup, and hosts the technology and operation of a call including their mobile phones. Tameer also operates as a center that provides customer service and complaint han- bank much as Zain’s Zap platform does, although not through dling. Tameer is responsible for operating accounts, creating partnerships with other banks. Since it became the first bank ledgers, reconciliation, fund settlement, risk, and compliance to gain a branchless bank license in Pakistan (2008), it has and fraud investigations.43 been able to offer loans, deposits, overdrafts, insurance, and domestic remittances. Partnerships Tameer’s innovations are notable for their focus on entrepre- In May 2010, Tameer joined with Pakistan Telecommunication neurs and the self-employed. Their aim is to actively gener- Company Limited (PTCL), Pakistan’s largest national telecom ate income in underserviced, frequently rural, areas, often by solution provider. PTCL will provide network connectivity to freeing customers from moneylenders and their prohibitive all of Tameer’s outlets. This provision of centralized connec- interest rates. Prior to Tameer’s penetration of the market, tivity has been one of the key enabling factors in easypai- such moneylenders were generally the only option for small- sa’s success and, crucially, has allowed it to provide easily scale businesses in need of cash. Tameer loans have been accessible, low-cost services. used to buy new equipment, buy raw materials when they are cheapest, enlarge or purchase new property, and provide insurance against business failure. As such, they represent 41 Easypaisa (http://www.easypaisa.com.pk/about-tameerbank.php, accessed April 2010). 42 Easypaisa (http://www.tameerbank.com/ceomsg.htm, accessed 40 Tameer Microfinance Bank (http://www.tameerbank.com/about April 2010). .htm, accessed April 2010). 43 Mir (2010). I C T I N AG R I C U LT U RE 40 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS Networks and Infrastructure Asia, and the Americas, as the market for mobile phones Tameer’s large agent network allows customers to access expands rapidly in such areas as rural China and India. services in a number of ways: via mobile phone, easypaisa authorized shops, Telenor franchises, Telenor sales and ser- An Outsourcing Model Outside the Regulatory Flow vice centers, or Tameer Microfinance Bank branches. Like Txteagle operates fairly unconstrained by regulation M-PESA, Tameer uses USSD, so customers do not need because it is classified as a financial creditor, rather than new SIM cards to store the application. This lowers the cost as any form of banking or microfinance institution. This of signing up for the service even further. Tameer does offer setup gives txteagle a great deal of flexibility in its busi- new SIM cards for purchase, however, on which the Tameer ness model and where it operates, enabling rapid inter- application has already been uploaded. national expansion. As clients become more diverse, this operational flexibility will become a key asset, as txteagle will need workers with different languages and skill sets. INNOVATIVE PRACTICE SUMMARY Txteagle Taps a Vast, Underused Workforce Txteagle’s business model enables outsourcing at a lower A large, global, and reasonably educated workforce remains cost because of savings in office-based costs and its access underused because of poverty and isolation, especially in to a previously isolated workforce. Low costs and a guar- rural areas. With the rapid penetration of telecommunica- antee of quality (clients pay only for adequately completed tions in developing economies, Txteagle believes this work) attract corporate clients. situation can change, particularly as more economies launch payment platforms like M-PESA. Txteagle is a mobile Adapting to Partners’ Needs phone–based SMS server application that takes tasks from Txteagle partners with a number of providers of wireless corporate clients (such as Nokia and Google), breaks them services, such as Safaricom in Kenya, Telefónica México in down into multiple microtasks, and sends them out for Mexico, MTN across Africa and the Middle East, and Viva completion to registered users. Targeted users are the rural in the Dominican Republic. As it relies on these partners poor in developing economies, who, through their mobile to provide its service, txteagle is eager to adapt to their phones, supplement their incomes with these microtasks. needs, from configuring the txteagle platform to operate Tasks include translation, image sorting, and audio tran- only during off-peak times, to providing assistance to their scription. Txteagle is similar in some respects to Amazon’s customer support teams. This situation has led to worries Mechanical Turk, which also divides up tasks, but differs in that txteagle could prove exploitative unless well regulated. that it distributes them by mobile phone, a technology with a higher penetration rate. Network and Infrastructure Txteagle operates primarily in East Africa, where it relies on A key enabling factor in txteagle’s business model is its technologies such as those developed by M-PESA; but it also Accuracy Inference Engine (AIE), which, once tasks have sends work to users in Asia and the developing economies been broken into microtasks, can monitor user performance. of the Americas. In areas not covered by payment platforms The AIE platform is a set of computational routines that can such as M-PESA, users are paid in airtime credited to their dynamically predict which available workers will be most mobile phones. likely to complete the given task successfully, correctly infer when the job has been satisfactorily completed, and differen- Txteagle’s impact is unclear because the company is still in tially pay workers in proportion to their level of contribution, its start-up phase. Given the growing number of subscribers all to within a 99 percent confidence interval of accuracy.45 to wireless phone technology (more than 1 billion people in The firm also uses a database that monitors and records user the developing world had a mobile phone in 2006),44 tech- performance. As the system learns more about the capabili- nologies such as txteagle have the potential to enjoy great ties and expertise of its individual users, it updates the algo- success. If txteagle can maintain and expand its systems rithms used to assign tasks to make the service as efficient capacity, it has the potential to extend its workforce in Africa, as possible. 44 Tryhorn (2009). 45 Txteagle (http://txteagle.com/technology/aie, accessed April 2010). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 41 LESSONS LEARNED between allowing the freedom for such ventures to become Mobile phones have the potential to provide low-cost banking commercially attractive and the constraints to ensure that wherever there is network coverage, but the use of mobile they do not exploit the people they aim to help. Chile’s con- banking services has been held back because mobile bank- gress has only just approved a law demanding network neu- ing services and microfinance institutions often play quite trality, guaranteeing that Internet service providers cannot different roles that prevent them from leveraging their full interfere with content accessed by Internet users. As Chile is potential. There is a wide variety of mobile services; some among the most progressive of the Latin American and other do not involve banking licenses and are therefore nonbank developing economies in its governance of Internet use, its implementations, while others may involve banking partners. position demonstrates the great strides regulators must take Mobile banking companies such as M-PESA primarily work in this emerging area, if mobile and Internet technologies with money transfers and payments, using some of the most (such as mobile banking) are to become widely and equitably advanced infrastructure available. By contrast, microfinance accessible. institutions tend to focus on credit and savings, and use less One of the biggest challenges for regulators is to find a bal- advanced technologies. A marriage between the two can ance between delivering the financial services that meet produce commercially attractive coverage of the market, as inclusion targets and at the same time combat fraud and seen with Telenor and Tameer Microfinance Bank, but such terrorism. The temptation is always to overregulate, to err on partnerships can be difficult to source and sustain. Indeed, in the side of safety. The World Bank has been working to cre- the future, traditional banks may also find themselves trying ate guidelines for services such as money transfer to encour- to deliver these services. age them to operate under tough regulation. The emergence of competition in the sector (such as between M-PESA and Zain Zap) has begun to erode differences in the Apart from these regulatory issues, service users have roles of mobile banking services and microfinance institu- demonstrated the wider applicability of the technologies tions, however. In May 2010, M-PESA joined with Equity involved by manipulating them to their own advantage. Bank in Kenya to produce its most integrated product yet: a Bancosol in Bolivia, for example, has implemented a partial low-cost, low-entry microsavings account called M-Kesho. It use of the technology by providing SMS information services hopes to provide its 9.4 million users with accessible bank before committing to full mobile banking. The Rural Bankers’ accounts, which will allow them to hold savings and take Association of the Philippines has made GXI’s G-Cash ser- out microinsurance and microloans, all managed from their vice possible in rural areas by grouping 60 rural banks to act mobile phones. as agents and to use G-Cash to pay their employees. Alone, these banks were too small to be commercially interesting The competition between Zain Zap and M-PESA in particu- to the mobile service, but through collective action they have lar highlights interesting considerations for the future. With become a significant business proposition. network-based firms such as eBay and Wikipedia, the more dominant a single network becomes, the more attractive it Customers have found moneymaking opportunities in these becomes to new users (because it is the most comprehen- financial services of which their founders did not dare to sive), and it compounds its success. Should either Zain Zap dream. M-PESA’s users have translated access to secure or M-PESA win the battle for dominance in Kenya, the winner money transfers into innovative income-generation oppor- could offer a more comprehensive and more widely acces- tunities, often in rural areas. By transferring primarily to sible service. The ensuing lack of competition could raise M-PESA-based payments, users enjoy the safety of being prices, however, cutting off access to the poorest sectors able to travel without cash and have reduced service times of the community. The regulation of competition between (customers no longer fumble about with change). The growth these networks will determine the shape of the industry— of the network of agents has created large numbers of jobs, and of commerce in Kenya—in the future. many in the rural areas where M-PESA, and institutions like it, flourish. M-PESA has benefited from relative regulatory freedom to become a comprehensive mobile financial service provider Tables 2.4 and 2.5 summarize the key enablers of the innova- and harness the negotiating power of Equity Bank. If such tive financial service models described here and the lessons innovations are to spread, regulators must walk a fine line derived from their experience. I C T I N AG R I C U LT U RE 42 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS TABLE 2.4. Key Enabling Factors for Innovations in Mobile Financial and Income Services Worldwide ASPECT M-PESA (EAST AFRICA, ZAIN ZAP (AFRICA AND TAMEER MICROFINANCE TXTEAGLE (AFRICA, ASIA, SOUTH ASIA) MIDDLE EAST) (PAKISTAN) LATIN AMERICA) Regulation  Lack of regulation of new tech-  Works with banking partners to  Microfinance Ordinance  It is classified as a financial nology in Kenya: Establishes ensure international financial allowed the creation of com- creditor rather than a banking self in regulation vacuum regulations are met mercial microfinance banks: or microfinance institution,  Willingness to adapt when  Seems happy to work within Allows for wider growth so it can operate fairly free of regulation necessitates: More regulatory framework, rather  Allowed use of retail spaces regulation closely resembles a microfi- than seek to bypass it, as rivals as agents nance service in Afghanistan have done Business  Initial independence from bank-  Users must have a bank  Easypaisa concentrates on  Use of mobile technology to model ing sector and bricks-and-mortar account: Potential to provide paying bills, with expansion into reach previously untapped banks allowed provision of a more diverse services than money transfer market: Relatively educated low-cost service rivals  Clients do not need a bank rural poor  Allow nonuser trial: M-PESA  Users send funds across country account, but Tameer offers  Offers additional source of becomes dominant network boundaries without paying diverse financial services as it income to isolated workers additional fees is itself a bank and opportunity for corporate  Fixed fee for transfers; other  Focus on entrepreneurs and clients to save money in their fees set by agents: Potential for self-employed outsourcing large profits encourages busi- nesses to become Zap agents. Partnerships  Backed by large MNO: Vodafone  Signed deals with large  Tameer is itself a bank and  Works with local wireless ser-  Local brand equity and distribu- corporate clients to encourage so is not reliant on deals and vices (e.g., Safaricom in Kenya tion network from Vodafone user growth partnerships with other banking and Viva in the Dominican subsidiary: Safaricom  Non-Zain MNO can buy into institutions Republic)  Use of local companies (e.g., One Network, increasing  Partnership between a bank  Signs up large corporate clients Roshan in Afghanistan) provision and a telecom operator: Allows such as Google services to be provided and distributed in-house Network and  Widespread and dense network  Use of Zain’s One Network:  Large agent network: Customers  SIM card functionality: Works infrastructure of agents: Uses first-mover Infrastructure and distribution can access services from their on the most basic handsets advantage to become dominant network already widely avail- mobile phone, easypaisa autho- Accuracy Inference Engine network able in multiple countries rized shops, Telenor franchises, monitors individual perfor-  SIM card functionality: Telenor sales and service mances and assures quality Customer can use existing centers, or Tameer Microfinance control to corporate clients phone (more affordable service) Bank branches Source: Authors. TABLE 2.5. Lessons Learned from Mobile Financial and Income Services in Rural Areas M-PESA ZAIN ZAP TAMEER MICROFINANCE TXTEAGLE  Consider regulatory issues:  Strategies need to be imple-  Entrepreneurs make good cli- Not so much what has been learned, M-PESA has struggled to take hold mented to combat first-mover ents: Tameer has found a new and but what it is vital to learn: in countries where regulation has advantage: Zain has had to offer loyal market in Pakistan by focusing  The move away from “charity” to proved tighter than in Kenya more services and work with big on this group (previously forced to helping people help themselves  Be adaptable: M-PESA changed name brands to combat M-PESA’s rely on extortionate moneylenders) should not be a move toward the its business model when money dominant network in Kenya  Rural areas can be profitable: exploitation of a still-vulnerable transfer proved more popular than  Customer service is vital: Zap has Tameer has rolled out easypaisa group: Deference to corporate microfinance in the pilot phase lost customers to M-PESA due to its to meet the needs of the rural clients and local MNO partners  The move toward also providing more complicated sign-up procedure workforce, recognizing that rural should not mean that workers are bank accounts is another sign of and the poor service and large fees areas hold large numbers of the paid unfairly for their contributions or flexibility and may help solve regula- levied by some agents commercially minded self-employed abandoned when microtasks, such as tory problems those provided by txteagle, run out Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 43 Topic Note 2.4: DELIVERING CONTENT FOR MOBILE AGRICULTURAL SERVICES TRENDS AND ISSUES farmers is seen throughout developing economies. Prominent The value of knowledge in the world economy has grown with examples include the Agricultural Market Information Systems increased technological innovation in distributing information in Bangladesh, Farmer’s Friend (a Google product) in Uganda, and greater incorporation of information in economic activity. and Ovi Life Tools by Nokia. The latter started off in partnership As developed economies become increasingly knowledge and with RML in India but wanted to offer a wider range of informa- service based, developing economies (agricultural or industrial) tion. It now provides education and entertainment services and must be capable of communicating in and using the language of has rolled out in Indonesia and China as well as India. knowledge if they are to be economically active on a global scale. This sourcebook describes a number of efforts to benefit from The spread of telecommunications technologies over the past mobile telecommunications in agriculture. Two of the examples decade has outpaced the spread of Internet technologies, discussed below are also discussed in Module 3 (RML) and which require more costly infrastructure, particularly for rural Module 6 on AIS (Farmers’ Friend), yet they are reviewed here users. In India, for example, mobile technology has reached to highlight technical considerations in delivering content and over 30 times as many people as the Internet.46 Because much services that rural users value. IFFCO Kisan Sanchar Limited and of India, like many developing economies, remains predomi- RML have been implemented through a variety of platforms nantly agricultural, thought has turned to using mobile technol- and business models, with voice - and text-based platforms ogy for the benefit and service of agriculture (image 2.3). Rural being the primary competing modes of delivery. Farmer’s Friend economies lose billions of dollars each year because critical differs from those services by using Google’s experience as a information is inaccessible: information on production prac- search engine to provide an on-demand service and a database tices, information on impending extreme weather or epidem- that may be searched in the same manner as the Internet. ics, or information that could enable farmers to transport crops more effectively to markets and sell them at better prices. INNOVATIVE PRACTICE SUMMARY Reuters Market Light (RML) offers farmers information on First-Mover Advantage Benefits Reuters Market Light crops, diseases, and market prices, as does the subsidiary group of the Indian Farmer’s Fertilizer Cooperative, Kisan Reuters Market Light (RML) is a subscription-based SMS Sanchar Limited. This trend toward mobile services for service providing Indian farmers with information that helps them increase productivity, maximize revenue, manage risk, and reduce waste. The service, launched in late 2007, pro- IMAGE 2.3. Girl Uses Phone in Community Meeting in vides localized and personalized information on commodity India prices, crop cultivation (covering 17 crops), and the weather.47 Mobile telecommunication was the obvious platform for pro- viding this service, as India has one of the fastest-growing mobile markets in the world, with over 427 million mobile connections. By contrast, there are only 37.5 million landline connections and 13.5 million Internet subscribers.48 The predominance of agriculture (which employs slightly more than half of India’s 523.5-million-strong workforce) gives Reuters a large potential audience. As of February 2010, it had more than 200,000 subscribers in 15,000 villages across 10 states. Supply chain and information failures cause Indian farmers to receive 47 “Reuters Market Light Wins Award for Innovation,” Thomson Source: Simone D. McCourtie, World Bank. Reuters Press Release, April 6, 2010 (http://thomsonreuters .com /content/news_ideas/articles/financial/RML_wins _award, accessed June 2011). 46 Prakash and Velu (2010). 48 Prakash and Velu (2010). I C T I N AG R I C U LT U RE 44 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS about half of the value of their crops that their Western counter- communications and thus requires mobile phones to be GPRS parts do (20–25 percent). If the service helps farmers to resolve enabled (adding to their cost and decreasing their accessibility). these problems, the potential benefits for farmers are large. INNOVATIVE PRACTICE SUMMARY Regulation: Freedom to Develop Its Business Model Long Experience in Farm Communities Benefits RML used its first-mover advantage in India to become a trusted IFFCO Kisan Sanchar Limited network—a necessary strategy, given that their main competi- IFFCO Kisan Sanchar Limited (IKSL), another information ser- tor, IKSL, is active in rural areas through its links with the IFFCO vice for farmers, is a joint venture between the telecom network farmer cooperatives. Active support from the government has operator Airtel and the Indian Farmers Fertiliser Cooperative given RML relative freedom to develop its business model. Limited (IFFCO, from which the initiative takes part of its name). In addition to crop advice and the weather, IKSL provides advice The subscription-based business model allows RML to derive on animal husbandry, rural health initiatives, and the availability a steady and regular flow of income, allowing for future plan- of products such as fertilizer. Unlike RML, IKSL’s information ning toward expanding the service. The lack of reliable address arrives via voice rather than text message. databases prevents sales staff from locating farmers and con- solidating the customer base. Another drawback is that the Users access the service through traditional wired tech- subscription fee makes RML expensive relative to on-demand nology based at kiosks at rural cooperative societies services (like those provided by Farmer’s Friend in Uganda, throughout India. The kiosks are supplemented by mobile discussed later). A survey of 1,000 households in 100 vil- technology: Mobile phones are sold bundled with the Airtel lages by the South Asia Sustainable Development Agriculture mobile network, which essentially converts the phones Department of the World Bank found that only around half of into personalized communication kiosks. Members of the RML users planned to renew their subscription. Of those who service receive five free voice messages a day with agricul- had not signed up for the service, 95 percent cited cost factors tural information and advice; they also have free access to as the reason (G. Dixie, personal communication). a dedicated agricultural help line. IFFCO has around 40,000 societies, is present in 98 percent of India’s villages, and In response, RML has enabled post offices across the states brings a receptive audience to the enterprise. This exten- covered by Reuters to provide the information service to sive coverage and wide farmer base give IKSL the potential unregistered users. This adjustment in its distribution platform to make a significant impact on agricultural communities. makes the service available to those who do not own a mobile phone as well as those who wish to try the service before IFFCO is clearly attuned to making its products and services they commit. The postal network has been crucial for RML’s accessible to rural people. Mobile phones are accompanied presence in rural areas and the growth of its user network. by a hand-cranked charger. This innovation is crucial, given the scarcity and cost of power in much of rural India. IKSL’s wired Partnerships with Multiple Operators Offer Scalability information kiosks can be operated through pedal power. RML’s regulatory freedom is complemented by partnerships These adaptations ensure that the service is not a drain on a with multiple operators, which frees the system’s content highly limited resource and should permit its wider use. from dependence on any single network and is crucial to the scalability of the business. The links with the post office are Regulation for Quality and Compliance with Standards a valuable asset for RML’s distribution network. RML is dis- IFFCO is subject to high levels of regulation owing to its domi- cussing a more formal association with the Indian Council of nant presence in the fertilizer trade, which is regulated by the Agricultural Research or Punjab Agricultural University, which government. To ensure compliance with the standards set for contribute some of the service’s crop information. IFFCO as an organization, IFFCO’s offshoots are regulated by an in-house Representative General Body made up of members of Network, Appliances, and Infrastructure the Board of Directors and representatives of the larger mem- RML is “network agnostic,” meaning that it is not constrained ber societies in every state/territory.49 To ensure quality, Kisan by the limitations of any one MNO, and its service has SIM Sanchar is assessed by experts from the agricultural universi- rather than handset functionality. Information is provided by ties, and peer reviews are conducted by panels of scientists.50 SMS and therefore can be accessed from the most basic hand- sets, even those only possessing text capabilities. This deliv- 49 See http://www.iffco.nic.in/ifc/web.nsf. 50 “Content Management” (http://www.iffco.nic.in/iksl/ikslweb ery format contrasts with that of RML’s former partner, Nokia, .nsf/ef05d07df0ecee65652575040037b375/733c79d21f573e whose Life Tools uses voice recordings instead of text-based 15652577a7002b2cd4?OpenDocument, accessed July 2011). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 45 A Business Model to Deliver More Diverse Agricultural forecasts and agricultural advice, Farmer’s Friend forms part of a Information to an Extensive Rural Base wider initiative that includes health tips, a clinic finder, a Google IFFCO has branched out from its original business as a fertilizer trading service for agricultural commodities, and other products. cooperative into many other areas, and it has a great deal of This innovation differs from RML and IKSL in that it is not experience in growing new businesses in rural India. The part- prepaid; the system is a search engine, and the user pays nership between IFFCO and another large company, Airtel, has for each query at the point of purchase. Customers text been crucial to success. As one of the largest MNOs in India, their query and location and receive a nearly instant reply. Airtel can provide cellular connectivity to areas where it is not The service is currently free from Google, but customers financially advantageous (an example is the Aruku Valley in the are charged by their network operator for each query. Pilots Visakhapatnam District). Access at cooperative societies, facili- demonstrate significant uptake of the AppLab’s services: the tated by IFFCO, is also crucial to the success of IKSL, because 10 SMS applications that were trialed generated more than new users can try the service before they commit to it, allow- 54,000 inquiries among their 8,000 respondents. ing for the growth of the network. This capacity ensures that IKSL achieves maximum coverage and consumer awareness. Farmer’s Friend also generates employment among farmers, some of whom are hired to collate data and pictures of sick In this way IKSL’s business model carefully navigates plants on local farms. They provide Grameen with more compre- between the steady income of a subscription service and the hensive information and the potential to offer for better advice. value added for the consumer by offering flexibility. Users pay Rs 47 to activate the mobile service, which lasts a life- Farmer’s Friend launched at the end of June 2009. Like many time, and then 50 paise per minute for calls between IFFCO efforts initiated recently in rural areas, its impact is not yet members (the rate is slightly higher for calls to nonmembers). apparent. The service has the potential to achieve significant Membership comes with five free daily messages, as noted. penetration in rural areas because it can leverage MTN’s net- work of over 10,000 village phone and other shared phone ISKL’s information is more diverse than that available from by operators, as well as all privately owned mobile phones. RML, although it is still centered on agriculture (for example, farmers can obtain information on fertilizer and farming equip- ment and limited information on rural health care). In offering Regulation a more comprehensive service, IKSL may be attempting to Farmer’s Friend’s regulatory framework is derived from that of combat the first-mover advantage of its nearest rival. its parent organizations. Google adheres to U.S. Safe Harbor Privacy Principles, is registered with the U.S. Department of Network, Appliances, and Infrastructure Commerce’s Safe Harbor Program, and works with appropri- ate local regulatory authorities, primarily local data protection The innovation is SIM rather than handset dependent but authorities.51 The service self-regulates through its guidelines does not work on the most basic handsets unless they are and maintains that it is “ready to assist any government updated. IKSL hopes the kiosks will counteract this problem. that wishes to seriously work to create an enabling environ- The prices of the phones used in the pilot—made by Sinocell ment.”52 Grameen Foundation has criticized the very loose and sold for about Rs 4,000—would deny the poorer seg- regulatory framework surrounding Farmer’s Friend. ments of the population access to the technology; but Alcatel, Philips, and Samsung have developed less expensive models that may solve this problem. IKSL also has the potential to A Business Model Designed to Increase Access develop a suitable phone. The voice recordings are provided Farmer’s Friend’s business model is specifically designed to in all local languages where the service is provided, a key increase access. The service works on the most basic hand- enabling factor in the challenge to increase access. sets. The organization’s membership in a much wider platform (which includes Google Trader and health advice) ensures a broader base of awareness in the community and further INNOVATIVE PRACTICE SUMMARY opportunities to develop brand loyalty. The pay-on-demand Farmer’s Friend Offers Information on Demand, system increases access because the financial commitment is One Query at a Time far smaller than with subscription models; RML membership Farmer’s Friend is a Ugandan mobile phone application from Grameen Foundation’s AppLab. Working with MTN Uganda as 51 For details on the Safe Harbor certification program and privacy principles, see www.google.com/privacy/privacy-policy.html. its MNO and using the Google SMS search platform, it provides 52 http://www.grameenfoundation.org/recommendations-creation information on demand for farmers. In addition to weather -pro-microcredit-regulatory-framework, p.6. I C T I N AG R I C U LT U RE 46 MODULE 2 — MAKING ICT INFRASTRUCTURE, APPLIANCES, AND SERVICES MORE ACCESSIBLE AND AFFORDABLE IN RURAL AREAS lasts an average of five months (Preethi 2009). Farmer’s Friend to buy the equipment and profits from reselling the services users can return to the service at any time. the phone offers. Farmer’s Friend expects to establish 5,000 Village Phone operators over time. Each is expected to serve An Array of Strong Commercial and Noncommercial as many as 2,000 people, greatly enhancing Farmer’s Friend’s Partners prospects for growth. (See IPS “Community Knowledge Worker Initiative in Uganda” in Module 4.) A key enabling factor of the initiative has been its marriage between strong commercial and nonprofit partners. The LESSONS LEARNED nonprofit Grameen Foundation increases access to technolo- gies. As well as using the search expertise of Google and the Table 2.6 recapitulates the factors enabling farmers to receive network coverage of MTN Uganda (Uganda’s largest MNO), agricultural information through the increasingly accessible Grameen receives agricultural information from the Busoga mobile phone services in rural areas—whether the information Rural Open Source Development Initiative, a local NGO that arrives through personal or shared phones. The lessons learned collects farming expertise from networks of farmers. Weather so far from the new services are summarized in table 2.7. reports are provided by Uganda’s Department of Meteorology. REFERENCES AND FURTHER READING Networks, Appliances, and Infrastructure Abbey-Mensah, S. 2001. “Rural Broadcasting in Ghana.” Presented As noted, the services work on the most basic handsets and at the International Workshop on Farm Radio Broadcasting, February 19, FAO, Rome. http://www.fao.org/docrep/003 are not handset specific, but users need to be part of the /x6721e/x6721e12.htm, accessed July 2011. MTN Uganda network. To widen its distribution network, Armstrong, C., and R. Collins. 2011. “Digital Turmoil for South Grameen is trying to establish Village Phones in rural Uganda. African TV.” International Journal of Digital Television 2 (1): 7–29. As mentioned in this overview, this service, successfully Benkler, Y. 2006. The Wealth of Networks: How Social Production used by Grameen in Bangladesh, involves public pay phones Transforms Markets and Freedom. New Haven, CT: Yale run by local entrepreneurs. An entrepreneur obtains a loan University Press. TABLE 2.6. Key Enabling Factors for Delivering Agricultural Information to Farmers in India and Uganda ASPECT REUTERS MARKET LIGHT, INDIA IFFCO KISAN SANCHAR LIMITED, INDIA FARMER’S FRIEND, UGANDA Regulation  Actively supported by the Indian government:  IFFCO regulated by Indian government  Derives regulatory framework from parent Operates with relative regulatory freedom and expert assessment from agricultural organizations universities  Google works with U.S. Department of  IFFCO regulates all of its suborganizations to Commerce and local regulatory authorities ensure they comply with its own standards Business  Subscription-based service: Regular local  Voice rather than SMS information provision  On-demand rather than subscription service. model information for farmers, steady income for  More diverse information than rival RML: Service is free from Google, but users are RML Also provides advice on animal husbandry charged by their MNO  The potential to try the service in post and products such as fertilizer  Rather than simply receiving advice, users offices before subscribing has been crucial  Wireless technology supplemented by can make queries based on specific needs in the growth of the user network kiosks in cooperatives and commercial  Supplemented by village phone operators  Service provided in multiple languages areas: Increases distribution and market in areas with few mobile phones: Income penetration generation for vendor and wider use Partnerships  Subsidiary of large, powerful company,  IFFCO uses experience of growing new busi-  Marriage between strong commercial and Thomson Reuters: strong financial backing in nesses in rural India nonprofit partners: Farmer’s Friend enjoys implementation stages  Airtel (one of the largest MNOs in India) multiple brand equities and financial backing  Crop advisory tips are derived from trusted creates wide coverage by setting up towers in implementation stages sources (e.g., Indian Council of Agricultural at sites provided by IFFCO cooperatives and  Partnership with Busoga Rural Open Source Research) by providing connectivity in areas where Development Initiative uses networks of it is not financially advantageous to do so: farmers to provide localized information: Combats first-mover advantage of RML Encourages user support Network and  Network agnostic: allows for maximum  Free, dedicated help line for service users  Part of wider information platform, which infrastructure coverage, as not restricted to one operator  SIM rather than handset dependent, so has includes health tips and a trader function:  Information is provided by SMS, so it works the potential for extensive uptake: SIMs Diverse capabilities offer greater potential on the most basic handsets, even those with must be updated for frequent use and opportunities to develop only text functionality (unlike competitor brand loyalty  Widespread cooperative-held kiosks help Nokia’s Life Tools, which requires mobile provide service to poorer customers and  Queries access information database: phones to be GPRS enabled to receive voice allow for trial: Helps grow user network Provides Internet-style capabilities where no messages) such platform exists  IFFCO has cooperative presence throughout  Single, automated platform for customer rural India: Strong agent network allows  Work on the most basic mobile phones services IKSL to become dominant (including SMS only): Greater market pen- etration potential Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 47 TABLE 2.7. Lessons Learned in Delivering Agricultural Information to Farmers in India and Uganda REUTERS MARKET LIGHT, INDIA IFFCO KISSAN SANCHAR LIMITED, INDIA FARMER’S FRIEND, UGANDA  Subscription services can be problematic:  Access is a balancing act: The use of voice  Diverse capabilities offer greater potential to 64% of users feel RML helps them achieve higher technology in a variety of local languages combats develop brand loyalty: Farmer’s Friend’s position prices, but only around half plan to renew their the problem of illiteracy, but at the same time within a wider information service provided by subscription increases the required capability (and therefore Grameen and Google affords it greater publicity.  Higher costs decrease access: 95% of those cost) of the handsets providing the service As customers use one service to positive effect, who have not bought into the service state that  The use of branded handsets in the trials of the they become aware of and begin to trust the other, this is because of its cost. Subscription fees innovation have increased this problem related services increase costs relative to on-demand services  Alternatives must be provided: IKSL has sought  On-demand payment can prove effective:  Database management is crucial: Problems to combat access issues through the use of kiosks Though providing less stable revenue, the lower with finding subscribers by their listed addresses held by the farmers’ cooperatives (offshoots of cost commitments involved for users allow them to and the difficulty of reaching them in their rural IFFCO) in villages: Less expensive wired technol- come back to the service at any time locations have negatively affected subscriptions ogy supplements the convenience of wireless  Strong financial backing plays a key role: All to RML developments three of the initiatives are backed by large-scale commercial and nonprofit organizations, which are able to support the innovators in their rollout phases, provide brand equity, and provide key technical expertise Source: Authors. 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ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 49 Module 3 ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT KEVIN DONOVAN (InfoDev, World Bank Group) IN THIS MODULE Overview. What has been the impact of mobile phones on agriculture and rural development? This module describes current knowledge, innovative practices, opportunities, and challenges in using mobile phones to benefit agriculture. Based on what has been learned to date, it provides principles for practitioners seeking to use the mobile platform to improve farmers’ livelihoods. Topic Note 3.1: Key Benefits and Challenges Related to Mobile Phones and Agricultural Livelihoods. Mobile phones may help to increase income, improve the efficiency of markets, reduce transaction costs, and offer a great opportunity for innovative interventions, especially in service delivery. Yet to realize the full potential of enhanced com- munication of market information, the use of mobile phones must be coupled with additional investments (in roads, education, financial services, and so forth). Mobile services and applications also need to provide compelling value. They must be affordable and have useful content. Finally, mobile phones may not confer their benefits in an equitable fashion or be used in other socially and economically beneficial ways. Context matters. Technology cannot be airdropped into a situation and guarantee positive results.  Weather Forecasting Reduces Agricultural Risk in Turkey  Mobile Phones Are the Center of Esoko’s Virtual Marketplace Topic Note 3.2: Two Typologies and General Principles for Using Mobile Phones in Agricultural Projects. Two frameworks help for understanding and designing initiatives that use mobile phones for achieving development goals. One typology focuses on the services that operate through mobile phones to improve aspects of agricultural livelihoods. A second focuses on the various forms that mobile applications might take to develop the agricultural sector. A number of principles improve the chances of sustainable impact: understand users and the technology; engage in participatory, iterative project design; identify partners with the appropriate knowledge, collaborative capacity, and alignment of goals; ensure that the technology is widely accessible; develop a viable business plan to ensure sustainability; and use moni- toring and evaluation to develop a better understanding of outcomes, which would help in designing new interventions.  Mobile Service Gives Chilean Farmers a Local and Global Information Edge  For Reuters Market Light, the Wider Network of People Matters  Nokia Life Tools Uses Simple Technologies to Deliver New Functionality OVERVIEW can be found in the pockets of the wealthy and poor alike. In July 2010, the number of mobile phone subscriptions Even in rural areas, mobile phones are growing in number surpassed the 5 billion mark (figure 3.1), further establishing and sophistication. Recent figures suggest that although only mobile phones as the most popular form of global connectiv- 81 million Indians (7 percent of the population) regularly use ity.1 In their various designs and capabilities, mobile phones the Internet, price wars mean that 507 million own mobile phones. Calls cost as little as US$0.006 per minute, and Indian operators are said to sign up 20 million new subscrib- 1 According to https://www.wirelessintelligence.com/. ers per month (The Economist 2010). I C T I N AG R I C U LT U RE 50 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT Figures for access to mobile phones are higher than own- rose from 12 percent of the global population to nearly ership figures. A survey in Uganda found that 86 percent 76 percent. A series of innovations drove this adoption, espe- of those asked claimed to have access to a mobile phone, cially in developing countries, which had 73 percent of the although only one-quarter of farmers said they actually world’s mobile phones in 2010.2 Like other digital technolo- owned one (Ferris, Engoru, and Kaganzi 2008). gies, mobile phones benefit from Moore’s Law, which states that computational power doubles approximately every two This module highlights the impact of mobile phones on years. The newest smartphones are far more sophisticated agriculture and rural development by outlining current knowl- than the more affordable models populating poor regions, edge and describing innovative practices. The discussion but those simple phones are still leaps and bounds ahead of complements information in Module 2 on technical aspects devices that were cutting edge a decade ago—and they are of increasing mobile phone use in rural areas and agriculture. entirely relevant to agriculture. It also serves as a preface to numerous other descriptions of mobile phone applications throughout this Sourcebook. An additional reason for focusing on mobile phones is that regulatory design has improved in recent decades, boost- The rise of the mobile phone has been one of the most stun- ing competition among telecommunications companies. ning changes in the developing world over the past decade. Competition has spurred significant innovation in business The increasing ubiquity of these phones in developing coun- models. For example, in most of the developing world, in tries presents both opportunities and challenges, especially contrast to practices in some wealthy countries, only the for critical sectors such as agriculture. Like other technolo- person making the phone call pays. Moreover, mobile phone gies before it, the mobile phone is likely to be the subject of airtime is available in prepaid bundles, allowing poor custom- inflated expectations and hopes. To caution against the hype, ers to avoid lengthy contracts and manage their expenditure this module also explores barriers to using mobile phones in a discrete, granular manner. For those at the bottom of to benefit agriculture and provides recommendations for the pyramid, where income is indeterminate and manag- practitioners seeking to use the mobile platform to improve ing finances is very important, this model is a key driver of farmers’ livelihoods. access and use. (For additional discussion and examples of regulation and business models as key enablers of mobile FIGURE 3.1. Global Mobile Cellular Subscriptions, telecommunications, see Module 2.) Total and per 100 Inhabitants, 2000–10 These supply-side improvements have met strong demand 6,000 100 from customers around the globe. Like all networked tech- Subscriptions (millions) Per 100 inhabitants 90 nologies, mobile phones exhibit network effects, making 5,000 Subscriptions (millions) 80 them more valuable as more devices are in use. Also, in Per 100 inhabitants 70 contrast to landlines, the mobility and personal nature of this 4,000 60 technology have a strong appeal to users. Being connected 3,000 50 means being reachable (Ling and Donner 2009). The mobile 40 phone adds a layer of security, allowing someone to reach 2,000 30 loved ones or assistance following an accident. It also allows 20 1,000 for microcoordination of activities, limiting the need for plan- 10 ning and the cost of changing plans on the fly (Ling 2004). 0 0 Finally, as anyone who has made a phone call while waiting 2000 01 02 03 04 05 06 07 08 09 2010* *Estimates for the bus or checked his or her phone during a meeting Source: ITU World Telecommunication / ICT Indicators database. knows, mobile phones allow for multitasking. What this proliferation means is that while mobile phones Why Mobile Phones? may be a substitute or complement for landlines in rich coun- Mobile phones are but one form of ICT. Personal computers, tries, they are more frequently the first form of telephony for laptops, the Internet, television, radio, and traditional news- many of the world’s poor. Through allowing communication papers are all used to promote improved rural development. at a distance, mobile phones allow users to overcome limits So why focus on mobile phones? of time and space. The most obvious answer is the sheer scale of adoption. In the ten years before 2009, mobile phone penetration 2 See ITU (http://www.itu.int/ITU-D/ict/statistics/). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 51 Why Agriculture? BOX 3.1. What Is a Mobile Application? In many countries, agriculture accounts for the overwhelm- ing majority of rural employment. The manifold benefits A mobile application is a piece of software on a portable that accompany improvements in agricultural productiv- device (such as a mobile phone handset, personal digi- ity are well known: Farmers’ incomes rise, food prices tal assistant, or tablet computer) that enables a user to fall, and labor is freed for additional employment. In some carry out one or more specific tasks that are not directly instances, productivity improvements have proven elusive, related to the operation of the device itself. Examples as climate change and uncertain commodity prices have include the ability to access specific information (for worsened agrarian conditions for many rural communities. instance, via a website); make payments and other Development practitioners have rightly focused on the dif- transactions; play games; send messages; and so on. ficult situations of many farmers, especially smallholders, The application (app) might come preinstalled, but more who have little room for error and even less protection from usually is downloaded (for free or for payment) from a social safety nets. Technical innovation, most prominently wireless network from an online store and may require a demonstrated in the Green Revolution, has been key to live connection to function effectively. Simple apps may improving agricultural markets in the developing world. make use of the built-in, low-speed data communication Mobile phones, despite their recent entry into agrarian com- facilities of digital mobile phones, such as short mes- munities, are already helping those communities improve saging service (SMS) or unstructured supplementary their agricultural activities. service data (USSD). On many low-cost phones, appli- cations are available through Java software. More com- plex apps use the Internet protocol–based data commu- nication facilities of higher-speed networks on third- or THE VIRTUOUS CIRCLE OF MOBILE PHONES fourth-generation mobile phone networks. The broad AND AGRICULTURE range of applications available includes: Advances throughout the mobile phone ecosystem tend to  Stand-alone software apps downloaded onto act as a positive feedback loop. This “virtuous circle” of inno- a device, such as an iPhone app. As of April 2010, vation enables a number of benefits, even for smallholder third-party developers provided 185,000 apps, and farmers: more than 4 billion had been downloaded since ƒ Access. Mobile wireless networks are expanding as the iPhone was launched in July 2008, based on technical and financial innovations widen coverage to Apple’s presentation at the iPhone OS 4 media more areas. preview event. ƒ Affordability. Prepaid connectivity and inexpensive  Applications that require an elaborate eco- devices, often available second hand, make mobile system to support them, such as Safaricom’s phones far cheaper than alternatives. M-PESA application for mobile payments in Kenya. M-PESA (which operates in a number of countries) ƒ Appliances. Mobile phones are constantly increasing has some 15,000 agents and over 9 million users. in sophistication and ease of use. Innovations arrive through traditional trickle-down effects from expensive  Applications built upon a specific platform that models but have also been directed at the bottom of is itself an application. For instance, the MXit the pyramid. instant messaging platform, which began in South Africa, now supports 250 million messages per ƒ Applications. Applications and services using mobile day. It provides tools for users to develop their phones range from simple text messaging services own applications running on the platform. to increasingly advanced software applications that Source: Author. provide both livelihood improvements and real-time public services (box 3.1). Through this expansion process, formerly costly technolo- The topic notes that follow review numerous ways that gies quickly become everyday tools for the bottom of the private industry, government bodies, and nonprofit orga- pyramid. Additional opportunities for more frequent and reli- nizations are using mobile phones in agriculture. Many of able information sharing will open as technological advances these programs are relatively new, and conclusive results lead to additional convergence between mobile phones and are difficult to ascertain. Most show promise, but there are the Internet, GPS, laptops, software, and other types of ICT. reasons for caution and the barriers to surmount. Topic Note I C T I N AG R I C U LT U RE 52 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT 3.1 focuses on what is known so far about the benefits, of mobile phones for agricultural development technologies challenges, and enablers related to using mobile phones and help them determine whether and how to incorporate to improve agriculture and rural welfare. Topic Note 3.2 them in the design of new initiatives. The Topic Notes are describes two typologies that can help practitioners under- followed by Innovative Practice Summaries that highlight the stand the various roles and rationales surrounding the use approaches taken so far. Topic Note 3.1: KEY BENEFITS AND CHALLENGES RELATED TO MOBILE PHONES AND AGRICULTURAL LIVELIHOODS TRENDS AND ISSUES but smallholder farmers, lacking a social safety net, are The proliferation of mobile phones across the globe has often highly risk averse and therefore not very market ori- impinged on agriculture in various ways. These phones are ented. A study in Uganda found that market participation being used to help raise farmers’ incomes, making agricul- rose with mobile phone access (Muto and Yamano 2009). tural marketing more efficient, lowering information costs, Although better market access can be a powerful means of reducing transportation costs, and providing a platform to alleviating poverty, the study found that market participation deliver services and innovate. Whether the potential of still depended on what producers had to sell: Perishable these trends can be realized more widely, especially in rural bananas were more likely to be sold commercially than less- areas and in an equitable way, is uncertain. Every aspect perishable maize. of the technology is changing rapidly; the public sector, Mobile phones can serve as the backbone for early warning private sector, and private citizens are constantly experi- systems to mitigate agricultural risks and safeguard agricul- menting with new applications for it; and governments are tural incomes. In Turkey, local weather forecasts transmitted grappling with any number of strategies to ease the digital through SMS provided very timely warnings of impending divide. This note summarizes what is known so far about frosts or conditions that favored pests. the benefits, challenges, and enabling factors associated with mobile phones in relation to several aspects of agri- Mobile platforms may also have potential for enabling rural cultural livelihoods. people to find employment. In Uganda, Grameen AppLab partners with government and NGOs to employ farmers to collect information (for more on Grameen, see Module 3). Helping Farmers Raise Their Incomes This method, which relies on local people to transmit data to In some instances, access to mobile phones has been associ- more centrally located research and extension staff, is much ated with increased agricultural income. A World Bank study less costly and can provide much more timely information conducted in the Philippines found strong evidence that than traditional disease surveys. purchasing a mobile phone is associated with higher growth rates of incomes, in the range of 11–17 percent, as measured Txteagle provides employment for relatively educated through consumption behavior (Labonne and Chase 2009). users (see “Txteagle Taps a Vast Underused Workforce” in One reason for this finding is that farmers equipped with Module 2), and even the very poor in rural areas could even- information have a stronger bargaining position within exist- tually benefit from access to a mobile job board. Farmers ing trade relationships, in addition to being able to seek out could advertise when they need additional labor for harvest- other markets. A study of farmers who purchased mobile ing or other high-intensity tasks via mobile phone, creating phones in Morocco found that average income increased by a simple advertising portal. Workers could find jobs without nearly 21 percent (Ilahiane 2007). wasting time and money traveling. A group called BabaJob is developing such a service in India, where recruiters and Mobile phones seem to influence the commercialization of workers submit listings by SMS, but it remains in the devel- farm products. Subsistence farming is notoriously tenuous, opmental stage. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 53 Making Agricultural Marketing More Efficient regions, fishers who were previously ignorant of daily prices At a fundamental level, markets are about distributing infor- in different markets were able to contact various ports to find mation. They do so through prices, which serve as a unifying the best offer for their catch. The result was demonstrable signal to participants to allow for the coordination of dis- welfare gains for fishers because fish were sold where they persed producers and consumers. Underlying this powerful were more highly valued. Waste decreased and prices equal- mechanism, though, is the assumption that everyone knows ized throughout the regional ports; there were even small the market prices for commodities, which is not the case in gains in consumer welfare (Jensen 2007). much of the developing world. Farmers have little information Other studies have confirmed this effect. Despite hav- about market prices in urban areas of their own countries, let ing the lowest mobile phone penetration in Sub-Saharan alone internationally. The result of this information asymmetry Africa, Niger has seen important effects on agricultural is price dispersion—the same goods sell for widely different markets from mobile phone diffusion. As mobile networks prices in markets merely a few kilometers apart. have expanded, grain price differences have decreased Mobile phones, in addition to other types of ICT, can over- by 20 percent, traders’ search costs have decreased by come this problem by informing both producers and consum- 50 percent, scarce resources have been better allocated, ers of the prices offered for agricultural products in various and consumers have paid, on average, 3.5 percent less for locations. A number of studies have shown that when mobile grain, which is equivalent to 5–10 days of grain consump- phones are introduced to farming communities that previ- tion annually (Aker 2010a). A small study in Morocco found ously lacked any form of connectivity, prices unify as farmers that farmers with mobile phones increasingly dealt directly learn where they can sell for a better price. (See Module 9 for with wholesalers or larger-scale intermediaries rather than more information on marketing through ICT.) smaller intermediaries (Ilahiane 2007). These studies, in conjunction with a host of anecdotal and theoretical evi- A striking example comes from the Indian state of Kerala dence, point to the promise of mobile phones in making (box 3.2). As mobile networks were rolled out in coastal markets more efficient. BOX 3.2. Mobile Phones Enable Kerala Fishers to Identify Better Markets As mobile phone coverage increased in Kerala, fishermen bought phones and started phoning along the coast to look for beach auctions where supplies were lower and prices higher than at their home beach. Fishermen rapidly learned to calculate whether the additional fuel costs of sailing to the high-priced auction were justified. The figure below tells a vivid visual story of how phones affected prices (reduced volatility) and wastage (significantly reduced). Price dispersion was dramatically reduced, declining from 60–70 percent to 15 percent or less. There was no net change in fishermen’s average catch, but more of the catch was sold because wastage, which previously averaged 5–8 percent of the daily catch, was effectively eliminated. The rapid adoption of mobile phones improved fishermen’s profits by 8 percent and was coupled with a 4 percent decline in consumer prices. By 2001, over 60 percent of fishing boats and most wholesale and retail traders were using mobile phones to coordinate sales. The phones were widely used for fish marketing. Fishermen with phones generally carry lists with numbers of potential buyers. They typically call several buyers in different markets before deciding where to sell their catch. Boats using mobile phones on average increased profits by Rs 184 per day, compared to Rs 97 for nonusers, who tended to follow the mobile phone users. Boats with mobile phones gained more (nearly twice as much), in part because they were on average larger boats and thus caught more fish and because they were more likely to be able to profitably exploit the small remaining arbitrage opportunities. Phones appear to be a worthwhile investment: The net increase of Rs 184 per day in profits for phone users would more than cover the costs of the phone in less than two months (assuming that there are 24 days of fishing per month, and given that the handset costs approximately Rs 5,000 and monthly costs are Rs 500). Fishermen are still using phones for marketing purposes to date. (continued) I C T I N AG R I C U LT U RE 54 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT BOX 3.2. continued Cell Phone Impact on Fish Marketing (SW India) REGION II 0 .2 .4 .6 .8 1 Phones added % with phone 2 pct_phone Cell phones purchased 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 Survey week REGION II Reduced volatility and 0 2 4 6 8 10 12 Phones added increased average price Price (Rs./kg) 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 Survey week Fish wastage 5–8% .05 .1 .15 .2 .25 % fishermen with Fish wastage reduced to zero waste 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 Survey week Source: Jensen 2007. Lowering the Costs of Information These costs can account for a large share of the cost of a The most obvious and crosscutting way that mobile phones farm enterprise. can improve agriculture is by improving access to informa- tion and making it less costly to obtain. In many rural areas, In a study that compared transaction costs throughout an the arrival of mobile coverage is a radical change in the extended period, 15.2 percent of the total cost of farming nature of the information ecosystem. Although simply hav- was transactional, and of that, 70 percent was informational ing more information is not sufficient to make advantageous (as opposed to, say, the cost of transporting crops to market). decisions (other resources may be needed to implement Undertaken in Sri Lanka, where an inconsistent subsidy on fer- them), it is a necessary step toward access to knowledge. tilizer introduces considerable uncertainty, the study found that 53 percent of the informational transaction costs were incurred Transaction costs are present throughout agricultural value during the growing season, when farmers were attempting chains, from initial decisions about whether and what to to ascertain fertilizer costs. As shown in figure 3.2, another plant, to all of the operations during the growing cycle, 24 percent were incurred during the initial decision to plant or harvesting, postharvest and processing operations, and sell- not, while only 9 percent of the costs related to information ing (to intermediaries, consumers, processors, exporters). were incurred during the selling stage, where studies typically ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 55 FIGURE 3.2. Information Search Cost by Stage production cycles. Farmers who use mobile phones can also of Farming save on transportation costs (Overa 2006)—an effect that is stronger the more rural the area (Muto and Yamano 2009). Harvesting, packing, and storing Transportation cannot be avoided entirely: Crops need to get to Selling customers. Although mobile phones can inform farmers where they should travel to market their crops, evidence suggests that Decision the wealthy maintain an advantage in their ability to make use of Seed purchase this information (Fafchamps and Hill 2004). In combination with and seed bed improved rural roads, ICT will encourage larger truck-traders to Land preparation and planting visit harder-to-reach areas, connecting rural and urban regions. Growing As noted in Module 9, the onion wholesalers known as “Market Queens” increasingly use mobile phones to coor- Source: Adapted from De Silva and Ratnadiwakara 2008. dinate supply among themselves and to improve profits by facilitating reductions in their transportation and opportunity focus (De Silva and Ratnadiwakara 2008). It is easy to under- costs (Overa 2006). These costs are particularly high in com- stand how mobile phones could reduce farmers’ informational modity chains that are geographically extensive and organiza- transaction costs at critical points in the production cycle. tionally complex, such as the onion trade in Ghana. Reducing Transportation Costs A Platform for Service Delivery and Innovation Mobile phones may help users to substitute phone calls The numerous capabilities of mobile phones (box 3.3) pro- for travel. Where safety standards are minimal, roads are in vide ample opportunities to deliver both traditional and inno- disrepair, and distances are great, substituting phone calls vative services. Traditional agricultural extension agents are for travel reduces farmers’ time and cost burdens. Time sav- increasingly being outfitted with mobile phones through pro- ings are important for agricultural households, because many grams to increase their effectiveness by networking them to crops have extremely time-sensitive and labor-intensive knowledge banks. Extension can reach more clients through BOX 3.3. One Device, Many Channels Mobile phones are multifunctional devices. From smartphones to models available secondhand in rural markets, these phones do much more than simply place voice calls. In designing a mobile intervention or project, it is important to keep in mind the various channels through which populations can be reached. In much of the world, voice is still king, owing to widespread illiteracy; but other considerations—such as cost, ease of use, and trust—influence users’ choices. In Africa, the high cost of calls has made 160-character text messages (SMS) very popular. As networks and devices acquire more capabilities, richer uses of phones are unfolding, and information channels are converging. Camera phones send images, data transfer brings the mobile Internet to the bottom of the pyramid, down- loaded software applications provide advanced functionality, and GPS sensors provide mapping functionality. Emerging market consumers are more likely to have their first contact with the Internet through a mobile device, and many are mobile-only users.a Cisco estimates that by 2015 there will be 788 million mobile-only Internet users, and though rural areas will lag behind, the highest rates of growth will be in the Middle East, Africa, Latin America, and Eastern and Central Europe.b In Kenya, Safaricom recently unveiled a service that converts emails to SMS messages and an interactive voice response (IVR) service, in which a computer responds to voice inquiries. Combining mobile phones with other technolo- gies, such as radio and telecenters, can enhance their capabilities. This potential is important to understand. It shows how adaptable the technology is, and how it can be used in areas where smartphones are likely to remain inaccessible to many in the near future. (continued) I C T I N AG R I C U LT U RE 56 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT BOX 3.3. continued Each form of mobile communication has its strengths and weaknesses. For example, SMS requires some form of literacy and is limited to 160 characters (although some mobile information interfaces are striving to become more visually intuitive). Data transfer is inexpensive but not available on most phones. The table summarizes types of mobile technologies and their availability. Types and Availability of Mobile Technologies TECHNOLOGY DESCRIPTION AVAILABILITY Voice The most basic channel; avoids most literacy or Basic phones linguistic barriers Short messaging service (SMS) Ubiquitous text-based messaging limited to Basic phones 160 characters Unstructured Supplementary Service Data (USSD) A protocol used by Global Service for Mobile Basic phones Communications (GSM) phones to communicate with the mobile network Interactive Voice Response (IVR) Computer programs that respond to the voice input Basic phones of callers General Packet Radio Service (GPRS) Low-bandwidth data service Midrange phones Software app (e.g., Java or iOS) Preinstalled or downloaded software of varied Midrange, but increased sophistication with sophistication smartphones Mobile Wireless Application Protocol (WAP) A limited manner of browsing the Internet Midrange phones Multimedia Messaging Service (MMS) SMS-based technology to transmit multimedia Midrange phones (including images and video) Camera For capturing still or moving images Midrange phones Bluetooth Protocol for transmitting data over short distances Midrange phones Mobile Web Full-fledged Web access Smartphones Global Positioning System (GPS) Technology allowing for location-based information Smartphones Source: http://www.crisscrossed.net/2009/11/01/the-many-potential-channels-for-mobile-services/; (a) http://www.slideshare.net/ondevice/the-mobile -only-Internet-generation; (b) Cisco (2010). mobile-based learning platforms—textual or richer platforms, political voice, raising the level of interaction between such as video—that provide tips to farmers to improve agri- policy makers and their constituents. Mobile phones can cultural skills and knowledge. (See the detailed discussion of be used to direct bottom-up insights toward the appropri- advisory services and ICT in Module 6.) ate recipients, informing and improving governance (see Module 12). Significantly, mobile phones are also a platform for user innovation. Mobile money services, now so prominent in countries such as Kenya and the Philippines, originally began LESSONS LEARNED as informal mechanisms between family and friends. Software engineers in developing countries are creating locally appropri- As mobile phones come into more widespread use and ate applications to be deployed inexpensively. This form of phone applications for agriculture increase, it is clear that innovation is possible due to the functionality of mobile they have the potential to confer significant benefits. To phones, but capacity needs to be grown and technological summarize, they may help to increase income, improve barriers, such as incompatible networks, need to be addressed the efficiency of markets, reduce waste, and improve (see the discussion in Module 2). welfare. They can reduce agriculture’s significant transac- tion costs, displace costly and time-intensive travel, and Finally, the popularity of mobile phones means that previ- facilitate innovative interventions, especially in service ously excluded populations can have considerably more delivery. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 57 Yet as many examples in this Sourcebook indicate, mobile Silva, and Soysa 2008). But when mobile phones were used phones, and ICT more generally, may serve agricultural for timely interventions through SMS, up to 40 percent of development best when accompanied by complementary wastage could be prevented, a service for which farmers investments and reforms. For example, shoddy roads—or were willing to pay (De Silva and Ratnadiwakara 2008). no roads—limit farmers’ ability to sell their grain in prime markets. Poor access to education can prevent many rural Because mobile phones may be purchased as a status sym- people from taking advantage of mobile phone services that bol, and because their uses are not necessarily economically depend on being able to read. valuable (entertainment and other social uses are popular), some mobile phone owners may decide to substitute their A lack of financial services can undermine the new options use for important expenditures such as school fees or food. that mobile phones allow. As discussed, Kerala’s fish- Given this possibility, it is even more important that devel- ers saw their welfare increase through the use of mobile opment practitioners promote policies and programs that phones (image 3.1), but they ran into another financial improve livelihoods (Heeks 2008). barrier. Without access to capital, the fishers cannot own their boats. The phones eliminated some intermediaries, An additional caution is that without specific attention to but boat owners may still force the fish to be sold in a equity issues, mobile phones may reinforce inequitable social less-than-optimal port. Small-scale producers and fishers structures. Larger traders are more likely to own mobile can gain better access to services if they organize (see phones than small-scale traders (Overa 2006). Compared to Module 8), but in many settings, increasing the bargaining men, women are less likely to have access to mobile phones3 power and political clout of small-scale producers remains (box 3.4 provides additional insight into the role of mobile an issue (Reuben 2007). phones in relation to gender equity). To avoid exacerbating such inequalities, agricultural programs using mobile phones should be designed with equity in mind from the start. IMAGE 3.1. Mobile Phones Can Help Fishermen Sell Finally, context matters. Technology cannot be airdropped into Their Catch a situation and guarantee positive results, and mobile phones may not necessarily be directed at economically useful behavior. INNOVATIVE PRACTICE SUMMARY Weather Forecasting Reduces Agricultural Risk in Turkey A project recently implemented by the Government of Turkey in collaboration with international donors is an exemplary model of local weather forecasting.4 Rather than focusing on aggregate, national data, this project, implemented by the Agriculture Directorate of Kastamonu Province, focused on the microclimatic conditions essential for monitoring pests Source: Curt Carnemark, World Bank. and diseases accurately and increasing productivity. To succeed, mobile services and applications also need to The Problem and the Technology provide compelling value, especially for the poor. Access to Most producers in Kastamonu maintain orchards, which devices and networks is insufficient; the technology also are extremely susceptible to frost and local pests. Before must be affordable and have useful applications and con- tent. For example, in Sri Lanka, where researchers found significant potential cost savings from the use of mobile 3 See “mWomen,” under http://gsmworld.com/our-work/mobile phones, farmers rarely used their phones to obtain market _planet/development_fund/index.htm. data because they could not obtain accurate and timely 4 This section draws on World Bank (2010) and personal communi- cation from H. Agah, senior rural development specialist, World information. Instead, farmers made frequent and costly trips Bank (interview with C. Belden, Agriculture and Rural Develop- to distant markets to determine prices (Ratnadiwakara, De ment, World Bank, March 22, 2011). I C T I N AG R I C U LT U RE 58 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT BOX 3.4. Mobile Phones, Agriculture, and Gender The larger development community recognizes the importance of emphasizing equitable opportunities and benefits for both genders (for example, see the Gender and Agriculture Sourcebook)—a principle endorsed for the use of ICT in agriculture as well. Access to and use of ICT are often unequal, with women suffering the consequences. In a number of cases, however, ICT has been used to benefit agriculture while empowering women. Kenya is a country of 5 million farmers, ranging from the smallest subsistence growers to large industrial agricultural- ists. It is also increasingly a hotbed of technological innovations, such as M-Farm, a mobile service that aims to improve Kenya’s agricultural sector by connecting farmers with one another, because peer-to-peer collaboration can improve market information and enhance learning opportunities. Based on farmers’ traditional needs, such as the need for market price and weather information, M-Farm is a relatively new subscription service that also works with larger institutions, such as NGOs and the government, to connect them with farmers. The idea was generated at IPO48, a weekend-long “boot camp” where technologists and entrepreneurs bring businesses from idea to initial product in only 48 hours. M-Farm, created by AkiraChix (an all-female team of developers that are now pursuing the project full time), won the 2010 IPO48 competition’s first-place prize of more than US$10,000. AkiraChix is also the recipient of an infoDev / World Bank grant to facilitate monthly networking events for mobile entrepreneurs and developers in Nairobi. Both networking and incentives such as IPO48 have proven essential to facilitate the rapid creation of sustainable businesses based on mobile devices and the empowerment of women. Though IPO48 and M-Farm are new and their impacts are still limited, they are expected to generate widespread improvements in agricultural marketing, particularly for women. The Village Phone program of the International Finance Corporation may also benefit rural women. The program provides microloans to rural entrepreneurs who purchase a mobile phone, long-range antenna, solar charger, and airtime. The recipient earns a livelihood by operating a phone kiosk in areas underserved by mobile networks. As is typical in micro- finance, the loan recipients tend to be women. Since the program’s inception, nearly 6,000 women have received loans and close to 10,000 have been trained in countries such as Madagascar, Malawi, and Nigeria. Source: Author. the project commenced, producers had little time to react stations, the province maintains 14 reference farms where to weather that might harm their orchards, because national temperatures are measured and pest cycles are monitored. weather forecasts for the next day were broadcast in the Monitoring the life cycle of pests, along with collecting evening (both FM radio and broadband Internet were unavail- climate data, allows researchers to predict pest outbreaks able). Given these constraints, mobile phones with SMS more accurately, because pest maturation depends largely were the most applicable ICT for the project. on environmental conditions. National aggregate weather forecasts are not particularly With localized weather indicators disseminated daily through useful for pest management and frost prevention in rural SMS, producers can apply pesticides when needed and in locations. Local, specific conditions vary widely from farm to appropriate amounts. In the first two years of the project, pro- farm, depending on such variables as humidity, precipitation, ducers’ costs fell dramatically. Pesticide applications dropped crop type, and soil fertility. In addition, rural weather is often by 50 percent in one year, saving farmers around US$2 per a few degrees cooler than weather in urban areas, where tree. Considering the size of the orchards, overall production most forecast data are generated. costs could be reduced by as much as US$1 million each year. The provincial directorate established five mini-meteorological A similar design was used to avert frost damage. Climate stations in rural areas throughout the province. The stations change and shifting temperatures have increased spring collect data on variables such as temperature, precipita- frosts in Kastamonu Province. If the meteorological stations tion, wind, leaf wetness, and soil moisture, most of which measure lower-than-normal temperatures, subscribers with are not collected at the national level. In addition to these personal digital assistants (PDAs) and mobile phones receive ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 59 alerts at 4:00 P.M., giving them sufficient time to prepare for challenges. Turkey’s national meteorological system is more the cold snap. advanced than the systems of most of its neighbors. High- resolution images and national capacity for weather forecasting are necessary to achieve local efforts. Because global satellites Anecdotal Evidence of Impact provide basic climate information free of charge, they may fill Though the project has not gone through rigorous assess- the technological gap in some countries; but their resolution ment, anecdotal evidence clearly points to its success. The is low. Alternative strategies like climate modeling have suc- means chosen to disseminate information were essential to ceeded in Latin America and Africa, but they have not been the project’s success, because mobile applications matched empirically tested for their effectiveness in forecasting weather. the technological capacity of the area. Other dissemina- tion and awareness strategies raised the project’s visibility, Anecdotal evidence also shows that technological capacity including the mass media, village leaders, and other forms of is not the only factor influencing success. Institutional capac- human interaction and leadership. It is likely that the weather ity is equally important. The local government’s high level of forecasts had the ripple effect common to other ICT projects, commitment to the project and consistent implementation because those who received the service shared the informa- were crucial to building client trust and ensuring that the tion with family and neighbors who did not. Farmers who technologies were used appropriately. participated in the project were successful in planting and protecting their crops. Of 500 farmers reached through this information channel, not one experienced crop losses from INNOVATIVE PRACTICE SUMMARY frost, although farmers who did not receive the service did. Mobile Phones Are the Heart of Esoko’s Virtual Marketplace Scaling Up and Sustaining the Benefits Esoko (http://www.esoko.com/) (which began as TradeNet in 2005) is a market information service that provides price infor- The project could be scaled up, but cost is a concern. For the mation and a virtual marketplace for buyers and sellers of agri- first two years, project costs were fairly low. The five sta- cultural commodities to connect through mobile phones and tions, telecoms, software, and system upkeep cost around the Internet.5 Mark Davies—a successful British technology US$40,000. Costs will climb over time, however, as donor entrepreneur who also manages Ghana’s largest ICT center, financing ends and climate conditions change (which could BusyLab—set up Esoko.6 Since then, it has become one of make it important, for example, to change the system to Africa’s most successful agricultural services using ICT. Esoko’s include other variables). technology is used in nine African countries and is expanding Several strategies could reduce the cost to government once quickly. Mobile phones are at the center of its system. external funding ends. For example, the government could partner with the private sector. Firms interested in domestic Services or export markets for the area’s crops may have an incentive to Esoko provides four key services: fund some of the technologies or develop the content. Revenue could also be collected through small or tiered subscriber fees ƒ Live market feeds. Real-time SMS alerts on mar- (daily forecasts in the Kastamonu Province are currently free). ket prices and offers are delivered automatically to subscribers. Users can submit offers directly to the Scalability is also difficult because of the nature of this system using SMS. particular project. Site-specific climate information is more expensive to obtain than aggregate temperature predictions. 5 Aside from the sources cited in the text, this summary also draws on Gakuru, Winters, and Stepman (2009). Moreover, other areas will produce crops vulnerable to a dif- 6 Esoko, which began as a private initiative with encourage- ferent spectrum of biological and climate stress, making each ment from FAO and the UN, became a partner with USAID’s target group fairly small. One way to reduce these costs and MISTOWA program in West Africa and CIAT’s FoodNet program in Uganda, and it was supported with a grant of US$11 million. broaden the scope of a similar program might be to focus More recently, IFC (a member of the World Bank Group) and first on crops or livestock that represent the most widely the Soros Economic Development Fund (a nonprofit invest- pursued or highest-value enterprises. ment fund that works to alleviate poverty and community dete- rioration) each invested US$1.25 million of equity in Esoko. The investment will give smallholder African farmers and businesses Transferring this kind of early warning system to Central Asian timely crop information that can be shared via text messaging, countries, as planned by the World Bank, may pose particular enabling farmers to increase their incomes. I C T I N AG R I C U LT U RE 60 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT ƒ Direct SMS marketing and extension. This service farmer groups. The firm also publishes the first commodi- targets specific user groups or sends extension mes- ties indexes in Africa. These powerful tools ensure that sages, which reduce travel and communication costs. farmers are fairly compensated for their crops, as formal ƒ Scout polling. It is possible to set up automatic SMS commodity exchanges are very rare on the continent. The polling for field activities to track inventories and crop company is initially publishing two indexes that provide activities (among other things) and monitor and report prices for 12 agricultural commodities in 7 markets in on crop cycles and yields. Ghana. ƒ Online profiling and marketing. All users can have a customizable Web space to advertise their goods and Impact services. This space can be updated using Esoko’s The impact of this information on traders, exporters, trans- mobile2web content management service. porters, procurers, and others in the agricultural value chain is still to be determined. The service is believed to have Participants throughout agricultural value chains can the potential to reduce inefficiencies in the value chain. For exchange real-time market information. Farmers receive cur- example, an exporter took 60 days and needed 5 people in rent demands, prices of crops, and the location of seed and the value chain to procure a natural plant product, but with fertilizer outlets directly on their mobile phones. Businesses Esoko’s technology, the procurement process required 31 can track how their products are used and market themselves days and 3 people, improving both the major traders’ and to new customers. Associations and governments can share producers’ share of the export price. Free field trials for critical information with thousands using a simple feature for farmers elicited self-reported evidence of a 20–40 percent bulk text messaging. improvement in revenue. Sixty-eight percent of farmers Anyone in the world can visit esoko.com and register for a said that they would pay for the service; every farmer free account. There, in addition to 800,000 prices from hun- who received information would forward it to an additional dreds of markets, users will find a library of resources and 10 farmers. thousands of members offering to buy and sell agricultural products. Prices and transactions are also available via the Building and Sustaining a Business Model universal SMS channel; and for slightly more sophisticated The idea driving the model is that most businesses in the phones, a downloadable application offers additional func- agricultural value chain collect and deliver their own data; tionality. Users can even receive automated SMS alerts for Esoko will provide tools and a platform and co-opt busi- certain commodities in a given market (box 3.5). Because nesses to generate content for the platform. Esoko pays on anyone with a mobile phone may post offers to the website an incentive basis to acquire information, using targets and through SMS, smallholder farmers are able to reach a far bonuses. Its revenue-generation model is based on levels wider audience than they typically would. Esoko users also of subscriptions (bronze, silver, gold, platinum), each with a are in a better position to negotiate with buyers owing to different pricing structure and its own mix of content and their enhanced knowledge of prices in other markets. tools. Esoko offers training and strategy sessions on how to For a US$1 per month subscription (beginning in 2011), use the platform and can provide customer services for farmers automatically receive information on commodities, markets, and other topics of interest. In developing a model BOX 3.5. An Esoko Transaction for selling information to farmers, Esoko encountered a few challenges. Farmers are widely dispersed in the field and Here’s how it works: A farmer in northern Ghana is hard to reach. It is also difficult to quantify the exact value selling 20 tonnes of millet. The farmer texts in SELL that the service generates for farmers. MILO 20MT to TradeNet’s international number, and that information is processed by the software and imme- Esoko provides additional functionality for other users, includ- diately published on the website. The same details are ing organizations that would like to customize the technology also redistributed to every other user that has signed up for their needs. For example, paying subscribers can access to receive alerts on millet sales in Ghana. Esoko’s supply chain tools, which allow harvest activities to Source: Quoted from Bartlett 2008. be tracked. Mark Davies (quoted by Magada 2009) believes this holistic approach, as opposed to simply providing price ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 61 information, is key: “While running TradeNet, we realised operate the hardware and work in the commodity mar- that there was a need for a platform to integrate the whole kets collecting prices and news. To support this activity, supply chain, not to just provide prices. . . .We’re missing the in addition to the tiered subscriptions mentioned above, point if we don’t integrate the whole industry.” Esoko pursues public-private partnerships (Donner 2009). Partnerships are key, with governments, donors, and the But this scale requires significant investment; whereas Esoko Networks, a group of affiliated companies, using Davis started the business with US$600,000 of personal and building upon the platform. Esoko demonstrates money and US$200,000 from donors, he has suggested that finding the right business model is not easy, but that nationwide rollouts require US$1 million in funding. donors and government have a role in supporting new The money goes toward new hardware and for staff to interventions. Topic Note 3.2: TWO TYPOLOGIES AND GENERAL PRINCIPLES FOR USING MOBILE PHONES IN AGRICULTURAL PROJECTS TRENDS AND ISSUES Typology 1: A Focus on Mobile Livelihood As governments, donors, NGOs, and private firms attempt to Services use this popular technology for development goals, research- Jonathan Donner, a researcher with the Technology for ers are developing frameworks to make sense of these initia- Emerging Markets Group at Microsoft Research India, has tives and help design new ones. This topic note reviews two developed a framework that examines the various livelihood such typologies. The first focuses on the services that operate services available to mobile phone users in the developing through mobile phones to improve aspects of agricultural live- world (Donner 2009) (table 3.1). His survey finds six types lihoods. The second focuses on the various forms that mobile of “mobile livelihood” services—mediated agricultural exten- applications might take to develop the agricultural sector. Both sion, market information systems, virtual marketplaces, com- of these approaches may be useful when considering pro- prehensive services, financial services, and direct livelihood grams to use mobile phones. This note also reviews principles support—and five possible effects—improving internal activi- for designing a program to use mobile phones in agriculture, ties, adding market information, adding market participants, based on what has been learned to date. bypassing middlemen, and starting businesses. Note that TABLE 3.1. The Impact of Mobile-Based Livelihood Services IMPROVE INTERNAL ADD MARKET ADD MARKET BYPASS START SERVICE ACTIVITIES INFORMATION PARTICIPANTS INTERMEDIARIES BUSINESSES Mediated agricultural extension (e.g., Collecting and Exchange X X of Local Agricultural Content—CELAC, http://celac.or.ug/) Market information systems (e.g., Kenyan Agricultural X Commodities Exchange Program—KACE, http://www.kacekenya .co.ke/) Virtual marketplaces (e.g., Google Trader, http://www.google X X Sometimes .co.ug/africa/trader/home) Comprehensive services (e.g., Manobi or Esoko— http://www X X X Sometimes .manobi.net/worldwide/; http://www.esoko.com/) Financial services (e.g., M-PESA, http://www.safaricom.co.ke X X /index.php?id=250) Direct livelihood support (e.g., txteagle, http://txteagle.com/) X X Source: Adapted from Donner 2009. Note: For more information on M-PESA, see “M-PESA’s Pioneering Money Transfer Service,”in Module 2; for txteagle, see “Txteagle Taps a Vast Underused Workforce,” in Module 2. I C T I N AG R I C U LT U RE 62 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT although many livelihood services are bound to have more Farmers already have information sources and learning than one effect—it is perfectly plausible that a service that opportunities, so it is best to avoid reinventing the wheel if provides market information will also draw new participants a mobile intervention will not significantly improve upon the into the market and help farmers bypass intermediaries— experience. table 3.1 emphasizes the main areas of impact. Mobile phones are far from unitary, as box 3.3 shows, and an understanding of the platform’s strengths and limitations is Typology 2: A Focus on Mobile Applications for essential. For example, while it is ubiquitous, SMS is limited Agriculture to 160 characters. Although the mobile Internet is still limited Alternatively, Kerry McNamara has suggested four catego- in scale and is often confusing to users, it can be sophis- ries for understanding the forms that mobile applications ticated and is spreading; in fact, some research has even may take to help the agricultural sector (Hellstrom 2010) shown more impact from the Internet than mobile phones, (table 3.2). Mobile agricultural applications, in this frame- so their convergence is an exciting opportunity (Goyal 2010). work, may (1) educate and raise awareness, (2) distribute There is always a risk that new technologies serve to blind price information, (3) collect data, and (4) track pests and the development community to more tried-and-true meth- diseases. ods, so considering how mobile phones fit with needs and existing practices is a key initial step. TABLE 3.2. Various Roles for Mobile Phones in Agriculture Engage in Participatory, Iterative Project Design GOAL METHOD Understanding local needs is a difficult task that can be Education and awareness Information provided via mobile phones made easier by directly involving communities in the design to farmers and extension agents about and implementation of interventions. In addition to surveys good practices, improved crop varieties, and pest or disease management. of global and regional activities (such as this Sourcebook), on-the-ground analysis is needed. Partnerships with local Commodity prices and market Prices in regional markets to inform information decision making throughout the entire organizations, extensive fieldwork, and interactive design agricultural process. sessions offer ways to understand the subtle differences Data collection Applications that collect data from large between agricultural subsectors and regions. Trying to “do geographic regions. everything” has doomed projects, while initiatives that start Pest and disease outbreak warning Send and receive data on outbreaks. small and focused (such as M-PESA, which began with peer- and tracking to-peer money transfers) can evolve into diverse offerings Source: Hellstrom 2010. (purchases, credit, and savings). One example of a small, focused program comes from Chile, where a small coopera- PRINCIPLES FOR DESIGNING A PROGRAM USING tive receives critical information for production and marketing. MOBILE PHONES IN AGRICULTURE The use of mobile phones in agriculture, though relatively Development practitioners can also learn from software new, has already witnessed failure as well as success. What developers who practice the mantra “release early and separates the two outcomes may often be unpredictable often,” meaning that “good enough” prototypes should be and locally nuanced factors, but a survey of what has been piloted and improved in a rapid feedback loop. The risk with learned indicates that a number of principles can improve the this practice is that it may confuse communities that may chances of sustainable impact. not understand the process; but if the goal of the project is to reach considerable scale, using a small pilot and focus groups to improve earlier versions is a worthy practice. Understand Users and the Technology Time and again, interventions have failed to gain traction Bringing communities into the early stages of the project because users’ needs and practices were incompletely can also foster local ownership, a key component of sustain- understood. In technological interventions, this risk is even ability. This principle is closely aligned with the need to “go more of a concern. Practitioners need to think carefully about beyond the technology” and focus on people. For example, why mobile phones are the technology of choice and con- a lack of cultural awareness almost caused Text to Change, a sider alternatives, from the cutting edge to the mundane. Dutch NGO working in Uganda, to derail an effort to provide ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 63 HIV/AIDS information via SMS. Only on the morning of the BOX 3.6. Kilimo Salama Demonstrates the program’s launch did the NGO finally realize that the SMS Convergence of Mobile Phones and code assigned to it was 666—locally known as “the devil’s Sophisticated Mobile Services number”—and have to scramble to receive a new number to avoid upsetting Christian partners and users.7 Kilimo Salama (“safe farming” in Kiswahili) is an inno- vative program operated by Safaricom (Kenya’s largest Mobile phones, like other technologies, are not silver bullets, MNO), Syngenta Foundation (the foundation established but instead are tools that will be shaped by social conditions. by the Swiss agribusiness), and UAP Insurance. The ini- Practitioners attempting to integrate mobile phones with agri- tiative delivers crop insurance to smallholder farmers in cultural communities need to design their programs for equi- rural Kenya through the use of mobile phones. Farmers table access. insure their crops with Kilimo Salama when they pur- chase seed and fertilizer from registered vendors. The vendors are equipped with a camera phone loaded with Identify Partners with the Appropriate Knowledge, special software. At the time of sale, the salesperson Collaborative Capacity, and Alignment of Goals takes a picture of a special barcode on the products, and As the innovative practice summaries in this module indicate, an SMS is sent to the farmer’s phone confirming the it is unlikely that any one organization—whether an NGO, insurance policy. For their work, agents receive a com- ministry, donor, or private firm—will have all of the expertise mission. Pricing has changed; the premium was origi- required to succeed in designing and implementing success- nally subsidized, but in mid-2011, farmers were paying a ful mobile phone interventions in agriculture. Partners should 10 percent insurance premium. be chosen for their specialized knowledge, willingness to col- laborate, and alignment of goals. Special care should be taken The Kilimo Salama system relies on weather stations at the very beginning of project planning to ensure that the key in each agricultural region to measure rainfall and other stakeholders will work together positively. climate information. When conditions fall below histori- cal benchmarks for farming (indicating that crops will be Projects must seek to leverage trusted intermediaries. One lost and inputs wasted), the service automatically pays example discussed in this module is Kilimo Salama, which insured customers in that region, using the M-PESA relies on the trusted M-PESA money transfer service and mobile money service. agricultural input suppliers to offer weather insurance to Kilimo Salama demonstrates the potential for mobile farmers (box 3.6). Another is IFFCO Kisan Sanchar Limited. phones and services (such as mobile money) to deliver The partners behind this service (which provides market sophisticated financial products to smallholders, and it information and agricultural advisory services) are IFFCO, a underlines the importance of distribution channels and well-known farmers’ cooperative organization that maintains product reliability. Affordability and trust remain obsta- a presence in 98 percent of India’s villages, and Bharti Airtel, cles, especially if farmers dispute payouts from the a large mobile network operator (MNO) (for details, see IPS system. “Long Experience in Farm Communities Benefits IFFCO Source: Author, based on IFC Advisory Services 2011. Kisan Sanchar Limited,” in Topic Note 2.4). By their very nature, most agricultural services using mobile phones partner with at least one MNO. For the network rural areas where commercial banks have few or no physi- operator, the services are a way to boost rural subscribers (an cal branches and benefits from Zain’s vast international One important source of growth) and decrease customer turnover. Network (see IPS “Zain Zap Promotes Borderless Mobile This objective does not necessarily mean that the network Commerce,” in Topic Note 2.3). Partnering with private firms, operator has any interest in farmers’ livelihoods (although it including MNOs and input suppliers, is often required for may), and partners should be cognizant of potentially conflict- mobile phones–for–agriculture interventions to endure. ing motivations. That said, operator buy-in can be a powerful benefit, especially through distribution and marketing. Zain Zap, the mobile international banking service, operates in Ensure That the Technology Is Widely Accessible Mobile phones represent a great opportunity for agricultural 7 See . interventions because they are one of the most accessible I C T I N AG R I C U LT U RE 64 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT information platforms available, although barriers do remain. continue for an extended term. It is essential to develop a They can take the form of illiteracy or prohibitive cost, or viable business plan from the very conception of a project to they can be technical or cultural (image 3.2). Given the tenu- use mobile phones in agriculture. Such a plan requires a clear ous nature of smallholders’ livelihoods and the lack of social understanding of who will pay—the government, end users, safety nets, many smallholders are particularly risk averse. cooperatives, or a combination, for example—and how much They are unlikely to participate in a new initiative without sig- they are willing to pay for a service. Farmers are willing to nificant education, advertising, and local support. Even those pay for timely and contextual information, but different strat- who wish to use a mobile intervention may be frustrated if egies may be needed to encourage poorer farmers to use the program is not widely available. Nokia’s Life Tools appli- a service (such as payments per query rather than a long- cation is intentionally designed to be widely available on its term subscription). The Reuters Market Light service offers low-cost handsets and fill a gap in low-income communities a range of price and service formats to accommodate a wide with a large latent demand for information. range of clients. Innovation in technology is often less important than inno- IMAGE 3.2. Other Challenges, Like Inadequate vation in the business model; prepaid mobile airtime was Transportation, Affect Mobile Phone arguably more important than low-cost devices in enabling Success mobile phones to spread. When Google introduced three mobile applications in Uganda for free, they gained sig- nificant traction; but when fees were introduced, usage dropped, indicating failure to accurately gauge the appeal of the service and willingness to pay (Kubzansky, Cooper, and Barbary 2011). Market-based solutions can be more sustainable, but donors and governments often remain important as anchor buy- ers or subsidizers (see IPS “Mobile Phones Are the Heart of Esoko’s Virtual Marketplace,” in Topic Note 3.1). When interventions are not undertaken for profit, they can benefit from approaches commonly used in the private sector, such Source: Mano Strauch, World Bank. as advertising to stimulate demand, rigorous benchmarking, market segmentation, and documenting failures as well as successes for internal and external learning. Projects that are exclusive to one MNO or a specific type of phone may face implicit barriers to adoption. Open tech- nological standards and free and open source software can Monitoring and Evaluation be used to reach a wider audience and avoid lock-in. They Although mobile phones have had positive impacts on agri- can do much to enable unanticipated user innovation. For culture, a better understanding of these outcomes would example, individuals around the world save money through help in designing new interventions. A recent review of “beeping,” or intentionally missed calls that communicate ICT-based interventions in agriculture suggests a number of predetermined messages without using expensive airtime. questions to address (Aker 2010b): Elsewhere, users send money through unofficial routes ƒ What is the impact of ICT on farmers’ knowledge, agri- using airtime transfers. Given flexibility and understanding, cultural practices, and welfare? communities will provide innovative solutions for their needs. ƒ Are the observed changes due to the ICT or some- thing else? Sustainability Based on a Viable Business Plan ƒ What is the causal mechanism behind the effect? Sustainable agricultural projects are key to long-term growth ƒ How does the impact differ between both farmers and livelihood improvements, but often projects fail to and the type of information provided? ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 65 ƒ What are the potential spillovers or unintended conse- mobile phones.8 The software, developed by DataDyne quences for participants and nonparticipants? (a nonprofit organization based in the United States), ƒ Is the ICT-based approach cost-effective relative to organizes searchable content from the Internet into news other, more traditional, interventions? feeds (RSS) and then transmits that content to farmers ƒ Do the results transfer to different regions and via SMS messages. The system was designed to work on contexts? simple mobile phones that sell for US$15–20 in Chile and operate effectively even over slow networks with intermit- tent connectivity. LESSONS LEARNED MIP solved the challenge of sending information from the Although mobile phones continue to evolve quite rapidly, Internet via SMS messages; the next challenge was to the evidence suggests that they can promote improved ensure that the content was valuable to the user. Because livelihoods through networking and informing previously text messages transmit a maximum of 160 characters, unconnected portions of the population. The evidence there is no guarantee that messages contain useful infor- comes from users’ own rapid grasp of the technology’s mation. Even when a system chooses relevant informa- potential (Kerala’s fishers using phones to seek optimal tion, the first 160 characters may not accurately convey its markets for their catch) and from planned efforts originating meaning. from commercial information providers and development practitioners (as in the market information and insurance programs described in the innovative practice summaries Starting Small: A Pilot with a Small Cooperative that follow). To test the system, a pilot project, DatAgro, was set up in early 2009 between DataDyne and an agricultural coopera- Improving agricultural productivity is one of the most press- tive in the Cachapoal Valley, two hours south of the capital, ing issues for developing regions. Although mobile phones Santiago. The cooperative, Coopeumo, has just under 350 are no silver bullet, their widespread availability and flex- small-scale farmer members, most of whom grow maize ibility position the technology as a necessary component and some other crops. Members’ coop dues covered the of sustainable improvements in agriculture. Coupled with cost of the new SMS system. There was no extra subscrip- corresponding innovation in existing social and institutional tion fee and no charge for the text messages (the current arrangements, mobile phones have the potential to make sig- cost of US$0.06 is borne by the coop). Training sessions nificant contributions. As mobile phones converge with other were held at the beginning of the project to teach farmers mobile devices such as netbooks and tablets, the opportuni- how to send and receive text messages. Most coop mem- ties will proliferate. bers are men, and thus about 90 percent of those receiving training were men. For donors, governments, NGOs, and private entities work- ing to promote better agricultural policies, current efforts Coopeumo farmers received weather, news, sports, and offer much to learn. Designing programs and initiatives in other information via SMS. The information came from sev- a careful, flexible manner will enable rural communities to eral sources. Two of the project’s partners, UNESCO and adopt and use new technologies and methods to improve Chile’s Foundation for Agricultural Innovation (FIA),9 created their lives. messages based on work already done but not yet shared with the community. Two national newspapers sent news to the system. Users could customize the feeds they sub- INNOVATIVE PRACTICE SUMMARY scribed to and could rate the messages they found the most Mobile Service Gives Local and Global Edge helpful. to Chilean Farmers In Chile, the Mobile Information Project (MIP) delivers 8 This summary is based on information from Cagley (2010) and personal communication with John Zoltner, DataDyne.org. targeted agricultural information from the Web directly 9 UNESCO = United Nations Educational, Scientific, and Cultural to farmers, using software to create news channels on Organization; FIA = Fundación para la Innovación Agraria. I C T I N AG R I C U LT U RE 66 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT Impact: Local and Global Advantages The experience in Chile suggests that disseminating informa- In less than a year, the DatAgro service proved popular. One tion via simple mobile phones is a good way to reach farmers Coopeumo member, Hugo Tobar, reported that his entire in areas where Internet facilities are unlikely to be provided crop for 2009 was saved by an SMS message that urged in the near future. Refinements to the system should make him to delay planting because of impending bad weather. it easier to provide relevant content to each individual, and a Torrential rain during the next week would have washed his current challenge is to tailor the content automatically; when seedlings away. information is mediated by a human editor, bottlenecks can be introduced. Ricardo Danessi, executive manager of Coopeumo, said, “Our farmers can now find information about supply prices, product prices, the weather, and what’s going on INNOVATIVE PRACTICE SUMMARY in international markets. That’s important, because today, For Reuters Market Light, the Wider Network everything that goes on outside Chile also affects us. of People Matters When there’s an excess of production in one place, the While on a fellowship at Stanford University, a Reuters prices go down here. Or when there is a sudden disaster employee hit upon the idea of offering highly customizable or catastrophe somewhere else, the prices improve here. market information to farmers through the increasingly When demand goes up in China or India, the prices here ubiquitous platform of mobile phones. From this initial idea, get better. Everything is related in this connected world, the international news giant launched Reuters Market Light and small-scale farmers aren’t left out of that reality” (RML) in 2007 to provide market prices, weather, and crop (quoted by Cagley 2010). advisory services to farmers in India. This launch was pre- ceded by 18 months of market research, tests, and pilot Sustaining the Gains and Scaling Up programs to refine the idea and tailor it to the local context (LIRNEasia 2008). Farmers have stressed the importance of the information they receive and the convenience of the MIP platform. To subscribe, a farmer calls a toll-free number to activate Since the end of the pilot project, Coopeumo has assumed the service in the local language and specify the crops and responsibility for creating, sending, and paying for the SMS markets in which he or she has an interest. Throughout messages. The only ongoing cost to DataDyne is the incre- the subscription, farmers receive four to five SMS alerts mental cost of maintaining and continuing to improve MIP. with relevant information throughout the day. According Developing the MIP platform, testing it in the field, and local to RML’s managing director, Amit Mehra, the pilot farmers implementation cost a little over US$200,000. greatly preferred automated messages instead of having to ask for them. Initial studies show that farmers who receive Looking to the future, DataDyne plans to expand the use of the service are receiving 5–10 percent more income. (See MIP based on use of the successful mobile data collection IPS “Impact of Immediate Market Information in Asia and tool, EpiSurveyor (http://www.episurveyor.org). EpiSurveyor, Africa,” in Topic Note 9.3, for additional details on farmers’ available via the Internet, can be used free of charge by gains through RML.) everyone who wants to collect data, unless they have very heavy needs or require new functions. After a little more than a year, more than 2,500 organizations in more than 140 Impact countries are using EpiSurveyor, 99 percent of them for free. Today, the RML application is one of India’s largest mar- The same model will be used for MIP. If new functions are ket information services, serving hundreds of thousands needed, DataDyne can tailor the system accordingly and of paying customers in tens of thousands of villages. Via charge a fee for doing so, but it will automatically make the SMS, it delivers highly personalized, professional informa- new functions available for free to other users. In the case of tion to India’s farming community, covering more than heavy data requirements, DataDyne will charge a US$5,000 250 crops, 1,000 markets, and 3,000 weather locations annual license fee. There will also be a charge related to the across 13 Indian states in 8 local languages (Mehra 2010) cost of SMS messages, because the telecoms companies (image 13.3). The impact is likely even larger than have to be paid to transmit the messages. Reuters can count, due to the widespread sharing of ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 67 IMAGE 3.3. The Reuters Market Light Interface Source: Medianama. information that takes place within informal farmer net- service. Best of all, the service is free and benefits from its works. Additionally, RML today has hundreds of employ- partnership with India’s largest MNO (Bharti Airtel), which ees, many of whom are trained as dedicated price collec- views the service as a way to attract new customers in rural tors in markets throughout India. areas. According to Mehra, reaching economies of scale is essen- Continuing Competition for Clients tial for profitability. Media reports suggest that RML had Reuters Market Light has sought to reach as many invested US$2 million by late 2009 and expected to break customers as possible through a number of strate- even within a few more years. In 2009, RML reportedly gies. RML has attempted to avoid exclusive partner- crossed the US$1 million sales mark. Farmers seem willing ships with MNOs, though in some cases it has found to pay for the service—indeed, they are paying for longer that telecommunications firms provide a strong value periods of service than they were before. Up to 2008, most proposition (notably through sales reach and by provid- farmers purchased quarterly installments of the service. But ing a subscriber catalog that could lessen customer turn- by 2009, the half-year and one-year plans were becoming over). To make it easy for unregistered users to try the more popular (Preethi 2009). It also partnered with Nokia service before committing to a subscription, RML has as an information supplier for Nokia’s Life Tools application. set up sales offices through the postal network, local There are plans to bring the service to Afghanistan and Africa shops, input suppliers, and banks. Customers can obtain (Reuters Market Light 2009). RML in basic SMS through prepaid scratch cards that give access to the service for a given amount of time— Providing Customized Information Requires a Wide initially only 1 month; but now 3, 6, and 12 months. After Network of People much experimentation, pricing has settled at Rs 60, 175, 350, and 650, respectively. (For details of the technology RML and its competitors suffer from the high expense of col- and business model, see IPS “First-Mover Advantage lecting market information and maintaining a sophisticated Benefits Reuters Market Light,” in Topic Note 2.4 in technological infrastructure. RML sources information from Module 2.) various content providers and sorts, organizes, and personal- izes it for dissemination. A significant portion of this informa- Although a leading example, RML is hardly a monopoly. It tion comes through partnerships with agricultural institutes. competes with both traditional information services (radio, These institutes are typically funded by the government but market intermediaries, newspapers) and other services that lack the means to disseminate the information. Students and use mobile phones. IFFCO Kisan Sanchar Limited (IKSL) researchers in these institutes contribute content relevant offers similar market information for rural farmers but uses to RML, which includes it in their package and delivers it to voice messages so that illiterate farmers are able to use the farmers (Preethi 2009). I C T I N AG R I C U LT U RE 68 MODULE 3 — ANYTIME, ANYWHERE: MOBILE DEVICES AND SERVICES AND THEIR IMPACT ON AGRICULTURE AND RURAL DEVELOPMENT To process the information, RML employs over 300 office EnableM—to create a rich ecosystem to deliver the services. staff in eight states. The teams are organized according to Content is divided into: content area and include a news division that scours media ƒ Basic agriculture, at Rs 30 per month, provides tips sources for agricultural news (pest and disease reports, on technique and news. government programs, weather reports, and local news). ƒ Premium agriculture, at Rs 60 per month, addition- The information is finely sorted by geography. Farmers are ally offers market prices and weather updates. informed if a particular market in a village is closed or if ƒ Education, also Rs 30 per month, provides simple a pest or disease could affect their specific crops (Preethi English courses and exam preparation services. For 2009). an additional Rs 30, the General Knowledge option The importance of customized information is highly evident provides daily world news. in RML’s operations. As much as technical acumen is impor- ƒ Entertainment, at Rs 30 per month, provides regional tant in mobile phone interventions, RML shows that a wide news, astrological predictions, cricket news, and ring- network of people—in this case, price collectors, agricul- tone downloads. tural institutes, and other information providers—is another The agriculture service, available across 18 states, offers essential ingredient. two plans. The basic plan, at Rs 30 per month, provides daily weather updates and agricultural news, advice, and tips. The premium plan, at Rs 60 per month, provides the closest INNOVATIVE PRACTICE SUMMARY market prices for three crops chosen by the subscriber, as Nokia Life Tools Uses Simple Technologies to Deliver New Functionality well as weather information, news, advice, and tips. Nokia Life Tools supports 11 Indian languages: Hindi, Malayalam, Nokia is famous for making the low-cost handsets that sit Kannada, Tamil, Telugu, Punjabi, Marathi, Bengali, Gujarati, in more pockets than the products of any other manufac- Oriya, and English. turer.10 More recently, the Finnish mobile phone maker has begun developing mobile applications for its phones, Because most subscribers are prepaid users who do not and low-income communities are one of its primary audi- have a contract, the charges are subtracted weekly. To facili- ences. The most notable of these efforts is Nokia Life tate this payment, Nokia has partnered with the MNO IDEA Tools, unveiled in mid-2009 for the Indian market and sub- Cellular. sequently expanded to other countries (China, Indonesia, and Nigeria) (O’Brien 2010). IMAGE 3.4. The Agriculture Package in Nokia Life Tools Life Tools is aimed at rural, predominantly agricultural com- munities in the developing world. It is available on a number of Nokia handsets that retail for much less than US$50, and despite the application’s rich graphic elements (image 3.4), it uses SMS to communicate, making it affordable and widely accessible. Additionally, because SMS can be delayed, users need not have perpetual network coverage. The applica- tion is a prime example of how simple technologies can be tweaked to bring about new functionality. In India, Nokia has collaborated with multiple partners across the Indian government and private enterprises—including Tata DOCOMO, MSAMB, Syngenta, Pearson, RML, and 10 The material for this case study was drawn primarily from Koh (2009). Source: Nokia. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 69 Nokia believes that hyperlocalization is key to the success Centre for the Study of African Economies, University of Oxford, of this service. The Indian application was launched with Oxford. nine local languages, and future expansions will reformu- Ferris, S., P. Engoru, and E. Kaganzi. 2008. “Making Market late Life Tools for the unique conditions of new countries Information Services Work Better for the Poor in Uganda.” CAPRi Working Paper 77, CGIAR Systemwide Program on and regions. Collective Action and Property Rights (CAPRi), Washington, DC. The key lesson is that Nokia’s mobile application recognizes Goyal. A. 2010. “Information, Direct Access to Farmers, and Rural the multiplicity of human interests: Packaging agricultural Market Performance in Central India.” American Economic Journal: Applied Economics 2 (3): 22–45. information with entertainment can drive adoption (a lesson learned by MxIt as well). Nokia also has shown that partner- Gakuru, M., K. Winters, and F. Stepman. 2009. “Inventory of Innovative Farmer Advisory Services Using ICTs.” Paper pre- ships are a viable alternative to going it alone. sented at the W3C Workshop on Africa Perspective on the Role of Mobile Technologies in Fostering Social Development, April 1–2, Maputo. http://www.w3.org/2008/10/MW4D_WS/papers/ REFERENCES fara.pdf, accessed May 2011. Aker, J.C. 2010a. “Information from Markets Near and Far: Mobile Hellstrom, J. 2010. The Innovative Use of Mobile Applications in Phones and Agricultural Markets in Niger.” American Economic East Africa. Stockholm: Swedish International Development Journal: Applied Economics 2 (3): 46–59. 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Overa, R. 2006. “Networks, Distance, and Trust: Telecommunications Development and Changing Trading Practices in Ghana.” World World Bank. 2010. “New Uses for Global Forecasts: FY 10 ECA Development 34 (7): 1301–15. Innovation Grant.” Istanbul. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 71 Module 4 EXTENDING THE BENEFITS— GENDER-EQUITABLE, ICT-ENABLED AGRICULTURAL DEVELOPMENT SOPHIE TREINEN (FAO) and ALICE VAN DER ELSTRAETEN (FAO) IN THIS MODULE Overview. While the digital revolution is reaching rural areas in many developing countries, the rural-urban digital divide remains, and rural women face a triple divide: digital, rural, and gender. This module looks at the benefits of ICT when placed in the hands of men and women working in agriculture and rural areas. It examines the challenges that must be overcome and provides recommendations for rural communities to take full and equal advantage of ICT. Topic Note 4.1: Mobile Finance and Gender in Rural Areas. Bypassing social restrictions on mobility and traditional legal barriers to account ownership, new mobile finance services significantly boost women’s economic empowerment and entrepreneurship, allowing them to save and transfer money, process financial transactions, and receive credit. Development practitioners are well aware of the potential of mobile finance, especially for rural and agricultural develop- ment, and are seeking to create an enabling environment in which appropriate mobile financial services are widely avail- able at a reasonable cost for providers and customers.  Designing Mobile Finance Products for Rural Women in Zimbabwe Topic Note 4.2: Mobile Learning, Gender, and Agriculture. Mobile learning expands the learning opportunities avail- able to rural communities, enabling them to access educational resources, create communities of learners to share information, and create content, both inside and outside classrooms. Mobile learning can help rural women improve skills and knowledge in agriculture, business, and nutrition that are vital to their livelihoods and the well-being of their families. Addressing social barriers to mobile learning at the community level—with the involvement of both men and women—is likely to have the greatest impact on women’s capacity to take advantage of mobile learning.  Dimitra Clubs: Rural Communities Learn and Mobilize for Change with Participatory Communication Technology  Participatory Community Video Highlights Local Agriculture-Nutrition Links and Best Practices for Health  Talking Books Deliver Valuable Advice, No Reading Required OVERVIEW Gender in Agriculture The importance of achieving gender equality and the Women play a central role in agricultural development empowerment of all women and girls (Millennium throughout the world. On average, they make up 43 percent Development Goal 5) was reconfirmed by the international of the agricultural labor force in developing countries, ranging community in the 2030 Agenda by dedicating one of the 17 from 20 percent in Latin America to almost 50 percent in Sustainable Development Goals to the issue. Goal 5 now East and Southeast Asia and Sub-Saharan Africa. FAO (2012) includes a specific target related to ICT. Target 5.b aims at asserts that “the empowerment of women could raise farm enhancing the use of enabling technology, in particular ICT, productivity by 20–30 percent, increase national agricultural to promote the empowerment of women (UN 2015). outputs by 2.5 to 4.0 percent and ultimately, lift 100 to 150 million of people out of hunger.”1 Although women are major producers of food crops in most of the world, they lag well behind men in terms of access to land, productive resources, The previous version (2009) was written by Cristina Manfre (Cultural Practice, LLC) with contributions from Pietro Aldobrandini (FAO), Christiane Monsieur (FAO), Clare Pedrick (FAO), and Gerard Sylvester 1 “International Women’s Day: FAO Gender Policy Aims (FAO) High” (FAO 2012). I C T I N AG R I C U LT U RE 72 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT income from land, education, financial services, information, agriculture highlights the fact that access and opportunities and the ability to share and learn from this knowledge (FAO are not distributed equally among users, creating asymmetries 2011, 2017). Technology, including ICT, can empower women that must be addressed with specific policies targeting the to close these gaps—which is why the gender-equitable use sources of the inequalities. For example, access for women, of ICT is now recognized as an integral part of sustainable youths, older farmers, and individuals in the most remote development. areas is hindered by the cost of using ICT and by the persis- tent inequalities that these groups face. Gender inequalities remain a serious issue in the digital economy, along with the Gender and ICT gap between urban and rural populations. The digital divide In 2015, FAO reviewed the use of ICT in agriculture over the is not exclusively related to technological infrastructure and previous decade.2 The review concluded that despite sub- connectivity. It is a multifaceted problem of ineffective knowl- stantial progress in making ICT available and accessible for edge exchange and management of information content, rural communities, challenges remain with regard to seven insufficient human resources and institutional capacity, and critical success factors (FAO 2015b, 2017) (box 4.1). the lack of sensitivity to gender and the diverse needs of dif- ferent groups. For example, the digital skills of illiterate and The presence of gender and diversity as one of the critical older farmers are less developed, so they are less likely to factors and remaining challenges to using ICT successfully in adopt ICT (FAO 2015b, 2017). The many facets of the digital divide are illustrated in box 4.2, figure 4.1, and image 4.1. BOX 4.1. Seven Critical Factors for the Success of ICT Many factors that constrain men farmers from adopting more in Agriculture sustainable and productive practices constrain women even more. Specific gender barriers further limit women farmers’ 1. Provide adapted and reliable content from capacity to innovate and become more productive. Young trusted sources. people’s access to and familiarity with technologies, as well as 2. Develop capacities for three dimensions: the their role in the social dynamics of rural communities, are not individual’s capacity, organizational capacity, and sufficiently leveraged. For these reasons, gender, youth, and the enabling environment. diversity should be addressed systematically in development 3. Mainstream gender and diversity. projects—not only in the initial design and planning phase but also throughout the life of the project. Access to technology 4. Increase access and participation. and equipment among females and young people, as well as 5. Engage in partnerships, especially public-private. 6. Identify the right mix of technologies. 7. Ensure economic, social, and environmental BOX 4.2. The Gender Divide in Numbers sustainability. Source: FAO 2015b.  1.2 out of 2.9 billion females own a mobile phone in low- and middle-income countries (41%).  1.4 out of 3.0 billion males own a mobile phone in 2 The review (FAO 2015b) reported on the implementation of low- and middle-income countries (46%). Action Line C7 (ICT Applications: e-agriculture), adopted by the World Summit on the Information Society (WSIS). The  Nearly 2/3 of unconnected (not owning a mobile Tunis Agenda for the Information Society states that the WSIS phone) females live in the South Asia and East Asia implementation mechanism at the international level should be organized taking into account the themes and action lines in the and Pacific regions. Geneva Plan of Action, and moderated or facilitated by UN agen-  300 million unconnected females live in Sub- cies when appropriate. The WSIS action lines are: C1. The role of Saharan Africa. public governance authorities and all stakeholders in the promo- tion of ICT for development; C2. Information and communica-  Women are 14 percent less likely than men to own tion infrastructure; C3. Access to information and knowledge; a mobile phone. C4. Capacity building; C5. Building confidence and security in the use of ICT; C6. Enabling environment; C7. ICT Applications:  Women in South Asia, where the lowest levels of E-government, E-business, E-learning, E-health, E-employment, access are reported, are 38 percent less likely than E-environment, E-agriculture, E-science; C8. Cultural diversity and identity, linguistic diversity and local content; C9. Media; men to own a mobile phone. C10. Ethical dimensions of the Information Society; and C11. Source: GSMA 2015a. International and regional cooperation. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 73 the potential consequences for social dynamics within com- Remaining Barriers and Challenges for Women and ICT munities, should be addressed before a project is initiated to The barriers that affect women’s and girls’ access to, con- identify ICT gaps and ensure that solutions are adopted sus- trol, and use of ICT will reduce the efficacy of any ICT-based tainably within communities. It is also crucial to collect gen- initiative in agricultural and rural development unless they der-disaggregated data in projects and in national ICT-related are addressed appropriately. The gender differences are statistics (FAO 2015b, 2017). as important to consider as the gender barriers; men and women differ in their access to ICT, control of ICT, how they use ICT, and even in which types of ICT they use (FAO 2017). FIGURE 4.1. Mobile Phone Ownership in Low- and Middle-Income Countries Cultural and Social Limitations Cultural attitudes can discriminate against women’s access to ICT and ICT-based education. For example, it may be perceived as inappropriate for women to visit telecenters or cybercafés, or women might be reluctant to visit them because they do not feel comfortable doing so. Women may be uncomfortable using a telecenter or cybercafé that is located next to a bar (or in a bar), owned by a man, or frequented only by men. If an intervention requires women to use ICT or attend a course, the location of a telecenter or training center should be considered carefully to ensure that they can do so. A location close to a market or hos- pital, where women often go, can be a good choice. At all times, the telecenter or training center needs to be in a neutral and safe place for women and youths. At the same time, ICT can overcome some cultural or social bar- riers to using technology. For instance, even females who must remain in the local community or within the house- Sources: GSMA Intelligence; World Bank data; and Altai Consulting analysis. hold compound can engage in e-learning on computers or Note: The numbers show population in billions. There are 80 million fewer mobile devices, and communicate with others in remote females than males in low- and middle-income countries; the unconnected population includes individuals who do not own, but may borrow, phones. locations (FAO 2017). IMAGE 4.1. Population of Unconnected Women in Low- and Middle-Income Countries Sources: GSMA Intelligence and Word Bank data. Altai Consulting analysis. Note: The map shows women who are unconnected by region; “unconnected” women are those who do not own a mobile phone, but may borrow one. I C T I N AG R I C U LT U RE 74 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT Time and Mobility Constraints the ability to access critical information and services; and ICT cannot solve all the gender-related disadvantages that the potential to take advantage of greater employment and women and men face in value chain development or in educational opportunities (GSMA 2015b,35). Yet women other agricultural activities, but they can alleviate challenges are still less likely to be able to buy ICT hardware (even that are intensified by the constraints on women’s time mobile phones, despite their wide availability) or to pay for and mobility (including security challenges; see box 4.3). access or training. A household may have a mobile phone, Women may not have time to travel to or frequent cyberca- but it is important to identify who owns it and controls its fés, but mobile phones provide an alternative and very direct use (FAO 2017). Women in Zambia, when asked about this means of gathering and exchanging information without issue, have said that men do not allow their wives to use traveling or interrupting activities. their mobile phones (World Bank 2015d). Finance and Control Cost is the most important overall barrier to owning and For women, access to mobile phones and services offers the using a mobile phone, particularly for women, who often benefits of feeling connected, safer, and more autonomous; have less financial independence. Lower hardware and BOX 4.3. Remote Control for Irrigation Alleviates Time and Mobility Constraints Remote irrigation control enables farmers to switch a water pump on and off and check the availability of water without having to examine pumping equipment and fields. In addition to saving time, water, and energy, the technology helps producers to outmaneuver erratic electricity and water supplies. Because farmers no longer need to be present to irrigate their fields, they can pursue other livelihood activities, and avoiding field visits is an added advantage when safety is a concern. The judicious use of water and electricity are major issues in India, where well over 25 million water pumps deliver water to agricultural fields. Electricity in rural areas often is available only during off-peak hours, at night. Visiting fields after dark is not only inconvenient but also risky, especially for women, who now head farm households in greater numbers as more men leave for cities in search of work. Rather than living with the inconvenience and potential risk of visiting fields multiple times after dark to operate irrigation pumps, some farmers leave their pumps switched on permanently, to operate whenever electricity becomes available. This practice leads to massive waste of energy and water, reduces producers’ incomes, and increases soil erosion. The Technology Nano Ganesh, a remote control for water pumps, was developed by the Ossian Group, an Indian company. Simple and low-cost, Nano Ganesh uses electronic hardware with mobile signal connectivity at both ends. Activated remotely by a mobile phone, the system serves as an interface between the high-voltage starters of water pumps and low-voltage mobile phones, enabling farmers to switch their water pump on and off from a distance, and to check the water supply in the tank connected to the pump. Irrigation can be timed for the precise duration needed, which prevents excessive irrigation and erosion and preserves soil nutrients and quality. By sending codes on a mobile network, users can also obtain information on the availability of electricity and water. Some Nano Ganesh models can also send a short message to a registered mobile phone in the event of tampering or attempted theft of the irrigation pump. By the end of 2015, more than 20,000 farmers in India were using Nano Ganesh, and the number is growing. This innovation brings with it additional income-generating opportunities, such as installation, repair, courier services, training, and demonstrations. There are job opportunities for women in the company’s rural call centers, electronics assembly, and marketing and training activities. (continued) ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 75 BOX 4.3. continued Generally, if a farmer invests US$100–150 in a Nano Ganesh unit for a 5 HP pump, he or she saves US$300 in fuel (and 10 g of CO2 per day), US$200 in water, US$75 in electricity, and US$25 in soil in one year. In other words, an investment of US$100 can yield savings of US$600 every year. The Challenges One of the problems the technology is designed to overcome—irregular electricity in villages and farms—can make it difficult to demonstrate, install, test, and commission the technology. Some technicians are reluctant to take up the challenges of working in rural areas. The company needed time and patience to convince farmers to use the technology. On the financial/marketing side, there was a huge disparity between the high costs of research and development, promotion, marketing, training, and after-sales support and a purchase price that was acceptable to farmers. A great deal of time was invested in pioneering the technology, but once it was on the market, rival products emerged. Even so, considerable scope exists for Nano Ganesh to continue expanding in India and other countries with similar challenges, and remote control technology is being adapted to other kinds of agricultural machinery and operations. Source: Sylvester 2015. FIGURE 4.2. Women Predominate among Illiterate Adults Source: UNESCO 2015a. connection costs can disproportionately benefit women (public and private), such as G2P payments, mHealth ser- and help to increase both access and use (GSMA 2015b). vices, and mobile money (see Topic Note 4.1). Research on mobile phone use suggests that rural women will divert income from other uses to pay for phones (GSMA Literacy and Education Development Fund and Cherie Blair Foundation for Women Differences in education and literacy between and among men 2010). This finding indicates that women value the benefits and women (figure 4.2) limits the effectiveness of certain types of mobile phones. It suggests that closing the gender gap in of ICT. The proliferation of audio- and video-based technologies the ownership and use of mobile phones in low- and middle- is increasingly circumventing the literacy requirement. At the income countries could substantially benefit women and same time, mobile learning offers a major opportunity for society through the delivery of extension and other services women and girls to overcome the many obstacles to education I C T I N AG R I C U LT U RE 76 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT imposed by time and mobility constraints, costs of tuition and including some of the those described here: the high costs travel, and sociocultural norms (see Topic Note 4.2). Increasing of mobile handsets and credit, poor network quality and women’s and girls’ access to mobile phones, smartphones, coverage, security concerns and harassment over mobile tablets, and the Internet is an important step toward more phones, lack of trust in agents and operators, and low techni- accessible and better education (FAO 2017). cal literacy and confidence (GSMA 2015b). Initiatives to Close the Gender Gap in ICT Use KEY POLICY ISSUES and Access Major initiatives addressing unequal access to and control Despite the clear advantages of using ICT to increase and of ICT between men and women include programs set in extend agricultural innovation and improve coordination place by the United Nations specialized agency for informa- among different stakeholders, two specific challenges tion and communication technologies (ITU), the Broadband reduce the potential for ICT applications to contribute to Commission, FAO, USAID, CTA, the World Bank Group, and gender-equitable agriculture development. First, smallholder many others. farmers are often considered an undifferentiated group of beneficiaries, with the same needs and the same opportu- World Development Report 2016: Digital Dividends nities. Second, ICT is considered gender neutral—in other (World Bank 2016) observes that ICT has brought massive words, the assumption is that men and women have the changes and has a huge potential, but digital dividends are same ability to access, use, and control these technologies. not spreading fast enough, for two main reasons. First, Combined, these challenges present a different landscape nearly 60 percent of the world’s people are offline and of the potential opportunities and constraints to using ICT cannot fully participate in the digital economy, while the to enhance agricultural gains—a landscape in which gender digital divides persist across gender, geographical, age, plays a central role in determining how men and women and income lines. Second, some of the perceived ben- participate in agricultural activities, access ICT, and derive efits of the Internet are neutralized by new risks. Vested benefits from agricultural growth. Therefore, practitioners business interests, regulatory uncertainty, and limited must carefully consider how to optimize the benefits of ICT competition across digital platforms could lead to harmful in specific contexts where men and women may have differ- concentration in many sectors. Rapidly expanding automa- ent opportunities and capabilities. The following strategies tion, even of midlevel office jobs, could hollow out labor and recommendations focus on overcoming the challenges markets and worsen rising inequality. The poor record of associated with using ICT in agriculture, with a specific many e-government initiatives points to the high failure emphasis on the gender implications (for a summary guide, rate of ICT projects and the risk that states and corpora- see box 4.4). tions might use digital technologies to control citizens, not to empower them (World Bank 2016). Conduct a Gender Analysis to Identify Opportunities for Using ICT to Enhance Current Practices In the mobile industry, the Groupe Spéciale Mobile The analysis should describe where and how men and Association (GSMA)3 launched the GSMA Connected Women women participate in the specific value chain or agricul- Programme in 2012. The Connected Women Programme tural activity. It should capture what information and ser- focuses on the socioeconomic benefits of greater inclusion vices men and women farmers need and how they are of women at all points in the mobile industry continuum, currently meeting those needs. It should also assess what from consumer to employee to leader. Aside from clos- types of ICT are already in use and the type of access ing the gender gap in mobile access and skills, it aims to men and women have to them (direct or mediated). Sex- attract and retain female expertise in the mobile industry and disaggregated data on education and income, as well as encourage female leadership in technology on a global basis. attitudes toward technology use, should be collected to In “Bridging the Gender Gap: Mobile Access and Usage help identify the most appropriate ICT applications. In in Low- and Middle-Income Countries,” the program high- some instances, content providers themselves may have lights barriers that are especially pronounced for women, critical information on gender gaps in access to technology and information. Box 4.5 presents insights from Esoko, a 3 Also known as the Global System for Mobile Communications communication tool for businesses, projects, NGOs, and Association. governments to connect with farmers. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 77 BOX 4.4. A Step-by-Step Guide to Introducing ICT-Based Solutions with a Gender Focus on Agricultural Projects 1. Document the characteristics of men and women farmers / members of producer organizations through a gender analysis:  Farmer group’s level of organization.  Farmer group’s level of activity (regular meetings and other involvement).  Type of economic activities.  Literacy level.  Mobile phone ownership.  Different areas of the value chain in which the group is engaged.  Provision of extension services. 2. Conduct a needs assessment to identify information needs and constraints, such as:  Extension information.  Group management information (organizational and financial management system, productivity and financial management data).  Business model training.  Interactive communication channel for farmers and service providers. 3. Select or develop the ICT platform/tool:  Conduct a review of ICT tools/platforms available.  Involve target groups in the selection/design of the ICT tool. 4. Identify which provider can supply appropriate content to meet the needs of women farmers:  Ministry of Agriculture.  National Agricultural Research Institute.  Private sector. 5. Explore the ICT infrastructure in the selected project sites:  Mobile phone coverage.  Internet connectivity.  Access to electricity.  Cost of calls.  Number of users/subscribers to mobile data.  Maintenance. 6. Check the national policies and regulations on:  Gender.  Agricultural development.  Access to information.  Information and communication technologies.  Business environment. 7. Develop a business model for developing, promoting, and running the ICT platform, which may include:  Hardware.  Software.  Group training and sensitization. (continued) I C T I N AG R I C U LT U RE 78 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT BOX 4.4. continued  Sensitization of extension workers to respond to women’s needs.  Development of training materials.  Software and user support.  Evaluation.  Financing: Public support and self-financing. 8. Develop a plan that ensures the continuity and sustainability of the tool/platform:  Ensure that the tool/platform is supported by an organization (private enterprise) that is committed to managing the tool over the long term.  Ensure that the organization can provide reliable and current information.  Ensure that the organization can provide training / capacity building. Source: World Bank 2015d. BOX 4.5. Esoko’s Mobile Market Information Service Develop Appropriate Content to Meet the Needs of Reaches Farmers in 16 African Countries, but Women and Men Farmers Finds a Gender Gap Women and men take part in different production, process- ing, and marketing activities, even when they are working in Since 2005, Esoko has grown to be the leader in the same value chain. As a result, women and men farmers delivering market information to farmers across Africa, do not always share the same information needs. To enable operating in 16 countries, employing more than 200 ICT applications to improve, the productivity of women and people, driving social and economic impact in rural men farmers, it is necessary to ensure that appropriate communities, and increasing farmer incomes by content is developed for them in a language that they easily 10 percent. For agricultural institutions such as farmer understand, and in an appropriate format. associations, Esoko facilitates direct marketing cam- paigns through text messaging. Its Internet-based ser- vices provide pricing and buying/selling information to Consider Using a Range of Types of ICT all users and offer a platform for organizations to main- While the inclination may be to find ways of integrating the tain a presence on the Web. Members register with most cutting-edge technology into value chains, practitioners Esoko to receive text alerts with commodity market should recognize the infrastructure constraints, as well as prices and offers to sell or buy produce. gender-based constraints, that can limit the effectiveness Esoko is well placed to examine gender differences of the newest technologies. Programs need to look at the in its client base, and initial observations show that array of technology available and determine which types of women still have limited access to the information ICT are most appropriate for overcoming specific constraints. Esoko disseminates. Many female farmers do not own In Africa, Esoko has found that women repeatedly state that mobile phones and rely on their husbands’ or children’s using a mobile phone to exchange information on farms and phones. Since education was not a priority when some agricultural products can lead to marital problems, due to of these female farmers were younger, they are less lit- suspicions of infidelity by their husbands. erate than their male counterparts. Extension providers still tend to approach men rather than women farmers, Radio arguably remains one of the most effective means thinking that men will pass information along to the rest of reaching farmers in the field, because the infrastruc- of the household. These limitations have an impact on ture already exists. Reports indicate that combined ICT farm productivity as well as economic growth, and they programming—using radio and mobile phones—might illustrate why better access to ICT among women could provide new opportunities for women. Although there have a positive impact on rural communities. may be disputes over control of the household radio, programming can be designed to interest both men and Source: https://esoko.com/. women farmers. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 79 Use ICT to Complement Existing Information Channels Although only a little research has been done on the potential Men and women farmers are already exchanging informa- for creating new ICT-related employment opportunities for tion. Often through word of mouth, farmers share farming men or women in agriculture, it suggests that women have at practices, experiences with different inputs, preparation of least two areas of opportunity. First, women can be employed different crops for consumption, and so on. Women espe- as call center consultants and operators, for example, with cially rely on these familiar channels, because their time and M-Kilimo,4 delivering agricultural information to farmers. This mobility constraints often limit their exposure to new infor- option may be particularly attractive for women agricultural mation providers. extension officers who find it challenging to travel to remote districts to meet farmers. Second, rural women should be ICT can support and enhance traditional information chan- recruited and trained at the village level to act as information nels by providing access to expertise and more up-to-date intermediaries for other farmers (see the experience with information. For instance, the Women of Uganda Network Digital Green in South Asia, “Participatory Community Video relies on the strength of locally developed information chan- Highlights Local Agriculture-Nutrition Links and Best Practices nels to increase the audience for its services. Women’s for Health”). groups are given a mobile phone and a radio cassette player to use as they listen to local agricultural radio shows, call extension officers, or share information between groups. Design Two-Way ICT Programs to Collect and Information is disseminated in the local language, and the Disseminate Information groups are encouraged to spread the word to other women The exchange of information through ICT must consider not farmers. Part of the program’s success is due to the fact that only “push” mechanisms for sending information but also it works within channels that are familiar to women (GSMA “pull” mechanisms for collecting it. In gathering data on Development Fund and Cherie Blair Foundation for Women farmers, it is critical to ensure that the information collected 2010). In the same way, FAO’s Dimitra Clubs use solar is sex disaggregated, including data on land holdings, produc- radios and mobile phones to connect listeners to rural radio, tivity, and labor force participation. As noted, evidence from opening the way to questions and feedback on air, and facili- Esoko has shown that women’s ICT needs differ completely tating discussions among listeners after the radio program from men’s. Establishing mechanisms for men and women has ended (see “Dimitra Clubs: Rural Communities Learn to become co-creators of knowledge products will enhance and Mobilize for Change with Participatory Communication the understanding of innovation occurring at the local level, Technology”). as well as opportunities for capturing men’s and women’s climate adaptation and mitigation strategies. Develop Direct Relationships with Men and Women Farmers MercyCorps uses EngageSPARK, a new tool that enables The most recent ICT innovations will fail to bring women anyone, anywhere, to build and launch text and voice call into agricultural programs if leaders and practitioners do not alerts, surveys, educational curriculums, and on-demand engage women directly. Buyers, extension agents, input information campaigns to more than 200 countries within suppliers, and other service providers must reward individu- minutes. Using EngageSPARK, the TobangKO campaign in als for their participation in the value chain. By reducing over- the Philippines offers cash transfers for natural disaster survi- all transaction costs for firms, ICT can allow firms to invest vors and encourages end users to save their money and use more in developing relationships directly with their suppliers. it in ways that will ensure a sustainable income. TobangKO Firms can contract men and women separately and, more disseminated 844,000 SMS texts and voice minutes over 12 important, ensure that payment is distributed to reward the weeks using EngageSPARK and created two separate soap man or woman responsible for the labor. opera series that end users can access through a mobile phone. Women farmers can also use mobile phones to listen Identify Employment Opportunities for Women with Providers of ICT Services for Agriculture 4 In Kenya, the M-Kilimo helpline gave agricultural advice to nearly Do not overlook the potential for women to find employment 25,000 farmers during its 18-month pilot phase. The project, with providers of ICT services for agriculture. Much of the lit- funded by the Rockefeller Foundation and GSMA and managed by KenCall in Nairobi, uses a mobile helpline to provide specific, erature reviewed for this module outlined the benefits of ICT timely, and accurate information to smallholder farmers, as well applications for farmers, buyers, or the value chain as a whole. as tips to help increase their incomes and farm productivity. I C T I N AG R I C U LT U RE 80 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT to agricultural extension information. To assess whether differentiating between women and men, cooperation people were actually listening to the messages and whether and team work between staff with different tasks, and they were gaining information or knowledge, EngageSPARK learning mechanisms to deal with gender gaps when helped MercyCorps implement a short text- or voice-based and where they arise. quiz at the end of each soap opera episode. IICD (2015) Capacity development initiatives in ICT programs can oper- In an enabling environment, ICT policies and e-agriculture ate in three dimensions: building individual capacity, orga- strategies must take gender into account. When policies and nizational capacity, and the enabling environment. At the strategies are developed, it is important to ensure that all individual level, it is important to adapt capacity development stakeholders are represented at all levels. If an initiative is initiatives to the needs of men and women. Depending on implemented at the local level, it will require mechanisms the context, it can be useful to offer learning opportunities for sharing information at a higher level to disseminate the for women and men separately, and at some point bring the local lessons on taking greater account of gender. Accurate, two groups together to exchange experiences. In this way, sex-disaggregated data and indicators are necessary to men and women have both separate and shared moments understand trends in participation, inform policy makers of of learning, which can improve participation while providing potential gaps and inequalities, and develop strategies to opportunities for women and men to speak freely (some address them (FAO 2017). individuals find it more difficult to articulate their concerns in mixed groups) (FAO 2017). It is also a good idea to include literacy courses in any initiative, since the limitations that Develop Gender-Equitable National or Regional illiterate people face go beyond the use of ICT. Meanwhile, ICT Policy simple, effective applications (radio, mobile phones, and tab- The gender dimensions of rural infrastructure and the lets) have been applied in the field to jump-start access to enabling environment for ICT are important considerations. information even without literacy, providing information that ICT can have an impact on women’s lives only if infrastruc- is critical to users’ socioeconomic welfare (FAO 2017). ture reaches them and appropriate policies and programs are in place to address poverty and gender issues in access- When limitations on mobility reduce access to capacity- ing and using ICT. building initiatives (as is often the case for women), individu- als are likely to benefit from the new possibilities offered by e-learning, making it a potent tool for gender mainstreaming. NEW DIRECTIONS, PRIORITIES, AND E-learning can also be integrated into existing organizational REQUIREMENTS FOR INVESTMENTS and educational structures as a hybrid system that can be called “ICT-supported learning” (Tiwari 2008). If approached properly, ICT can improve women’s ability to act effectively and productively in agriculture. New applications At the organizational level, much can be done to improve and cheaper devices have created opportunities for women gender equality. The capacities of all organizations involved in to engage in agriculture in ways previously unavailable to an ICT initiative for agriculture or rural development initiative them. The following subsections highlight some of them. should be developed to take greater account of gender in their work and activities (FAO 2016). Regarding the importance of Facilitating Women’s Access to Agricultural Information, gender-sensitive organizations, the International Institute for Market Prices, and Services Communication and Development (IICD) concluded that: One of the most important contributions of ICT to agri- Well-functioning and gender sensitive farmer organiza- cultural development is the ability to disseminate critical tions will understand the importance of equal participa- information to farmers through various channels, whether tion and opportunities for men and women farmers. At a radio program, video, text, or phone call. Real-time and the organizational level it is important to ensure gender cost-effective information on the weather, market prices, responsive systems and structures. In order to design pests, diseases, and services allows farmers—especially and implement gender responsive ICT projects, organi- women farmers, who may not otherwise have access to zations need capable staff, monitoring and evaluation this type of information—to make more informed decisions systems that capture well what happens on the ground about land preparation, planting, harvesting, and marketing. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 81 By increasing women’s access to information and services, The Sustainable Tree Crops Program in Ghana trained pre- ICT can close gender gaps in yields and productivity. Box dominantly illiterate and semiliterate women cocoa farmers 4.6 describes how innovative voice messaging technol- through farmer field schools and video viewing clubs. A ogy can be a critical equalizer by providing information to 10–15 minute video was shown on a topic relating to inte- women farmers with no or limited literacy. grated crop and pest management, accompanied by a dis- cussion. Out of 56 video clubs, 32 were women-only, while The Irrigation Development and Support Project (IDSP) the others were mixed sex groups. in Zambia and the Kenya Agricultural Productivity and Agribusiness Project (KAPAP) analyzed the platforms and tools available to provide opportunities for women to partici- Improving Coordination Between Women Farmers and pate in commodity value chains. In both countries it was clear Other Actors in the Value Chain that female farmers needed technical information to improve As the previous examples illustrate, ICT can reduce the agricultural production and processing.as well as support to coordination challenges between different actors in a value manage their organizations, production, sales, finance, and chain, providing better information to producers on product communication. specifications and volumes, helping to coordinate transporta- tion, and arranging to deliver goods at times when they can secure the best prices. ICT can also improve the functioning BOX 4.6. Women Advancing Agriculture Promotes of producer groups, recording financial accounts as well as Equal Access to Information through Voice registration and management processes. Women will ben- Messaging efit from these efficiency gains only if they can access the associations and are trained to use ICT (see Module 8 on Women Advancing Agriculture, an initiative of farmers’ organizations). Farmerline, advocates increased gender equality and access to information for women in Ghana. Just 29 Coprokazan (a shea butter cooperative organized by women percent of women in rural northern Ghana are literate. producers in Zantiébougou) and the Malian Association for This initiative sends educational voice messages in local the Promotion of Youth (AMPJ)5 were jointly seeking solu- languages directly to the mobile phones of female agri- tions for the problems they encountered in marketing shea cultural workers, telling them about best farming prac- butter nationally, regionally, and internationally. Promotional tices, weather forecasts, and regional market prices, as activities needed to be strengthened to generate higher well as providing information on financial literacy, mater- sales and improve producers’ livelihoods. A project sup- nal health, and family planning. The goal is not merely ported by IICD set out to install electricity and computers, to help women farmers boost productivity but also to train members to use software and office tools (to make address their unequal access to information. Voice mes- training presentations, handle overseas orders by email, saging technology enables Farmerline to develop com- and perform accounting operations), create a website, and munication channels that empower women to improve advertise on radio and television. Animated presentations crop yields and income, market their produce more were developed and organized in surrounding villages confidently, gain control of their finances, and make for women to share their knowledge of how to improve informed decisions about their health. the quality of their shea butter. Product quality and sales This initiative is only one aspect of Farmerline’s work, rose considerably, and Coprokazan and AMPJ have used which focuses on empowering small-scale producers the additional income to continue their work (IICD 2009; more generally. Since its launch in 2013, Farmerline has FAO 2016). reached more than 5,000 small-scale farmers in rural Ghana and more than 200,000 through partner organiza- Enhancing Transparency in Governance, Business tions in Cameroon, Nigeria, and Sierra Leone. Its educa- Registration, and Land Administration tional mobile phone messages have led to increases in A number of modules in this Sourcebook describe the advan- farmers’ yields (some as high as 55 percent) and income tages of integrating ICT into governance and administrative (up to 44 percent). Source: http://farmerline.co/farmerline-launches-gender-equality -initiative-in-ghana/. 5 Association malienne pour la promotion des jeunes. I C T I N AG R I C U LT U RE 82 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT procedures in the agriculture sector. Improving the timeli- financial services must be widely available at a reasonable ness, accuracy, and transparency of these processes is cost for both provider and customer. among the key advantages of ICT. These same benefits can apply to gender-equitable objectives. For example, more accurate and transparent recordkeeping can identify the CONCLUSIONS gender gaps in land administration and provide information to Participatory approaches that include both men and women advocacy groups supporting women’s land rights. For women in ICT initiatives for agriculture are key to bridging the gender traders and entrepreneurs, increasing the efficiency of regis- digital divide. A 10-year review of e-agriculture (FAO 2015b) tering a business and conducting customs transactions can shows that successful initiatives often complement exist- ease time burdens and may also reduce opportunities for ing infrastructure, are low-risk in terms of time and financial corruption. In the framework of the Voluntary Guidelines for investment, are financially self-sustaining, and are based on the Responsible Governance of Tenure, FAO has developed locally adapted content and context. They also frequently open source software called OpenTenure that supports a enable multidirectional discussions among peers and social crowdsourcing approach to the recording of tenure rights by groups, which would otherwise be unable to connect. As a individuals and communities. result, these initiatives lead to knowledge sharing while also providing information to specific users. Contributing to the Collection of Sex-Disaggregated Much scope remains for improving the capacity of people Agricultural Data and institutions to employ ICT in gender-equitable agricul- The lack of sex-disaggregated agricultural data is frequently tural development, however. Equal access, resilience, and cited as a constraint on understanding women’s contribu- empowerment need to be strengthened, as do partnerships tions to agriculture and the benefits they derive from it. and the active participation of beneficiaries. Agriculture is Many countries do not disaggregate agricultural census becoming more knowledge-intensive. Producers require data by gender, and donor-funded agricultural development more information to make increasingly complex decisions programs have been slow to recognize the importance of on land use, crop selection, choice of markets, and other assessing gender-differentiated results. ICT applications issues that affect the livelihoods of their families and alone will not motivate change in the behavior of these communities. Linking knowledge to innovation is crucial institutions, but they can ease the burden of gathering and in addressing the information and knowledge gaps in the recording sex-disaggregated data on farmers, suppliers, buy- agricultural sector. ers, and other stakeholders. Many valuable initiatives promote the use of ICT for agri- culture, but their sustainability is a concern. Too often, after Improving Women’s Control over Income and Access to the pilot phase, these initiatives cease to operate because Financial Services of financial, human, and other constraints. Scaling up Women’s lack of access to income is a significant constraint should be integrated in the formulation and implementation on their participation and productivity in agriculture. Without of such initiatives. access to and control over income, women are unable to accumulate lump sums to pay for inputs and services or invest The rural digital divide is created in part by ICT infrastruc- in upgrading activities. Moreover, when women contribute to ture that restricts the types and quality of applications agricultural activities without seeing the income invested in and services that can operate in rural areas. The costs of the household, they lack the incentives to improve their posi- devices and connections, poor quality and limited connec- tion in agricultural value chains. The rapidly growing mobile tivity, and the limited array of services in rural areas are finance sector holds considerable promise for increasing major hindrances to using the Internet and mobile tech- women’s savings and control over their own financial destiny, nology effectively, especially by women who do not have as discussed in Topic Note 4.1. Development practitioners are the same opportunities to attain income, education, and well aware of the potential of mobile finance, especially for employment as men do. The triple divide—digital, rural, and rural and agricultural development, and are seeking to unlock gender—needs to be addressed through national polices that potential by creating an enabling environment. To achieve and ICT strategies, ensuring that digital technologies pro- financial inclusion through mobile finance, appropriate mobile duce meaningful gains for all. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 83 Topic Note 4.1: MOBILE FINANCE AND GENDER IN RURAL AREAS Even with the gender gap in mobile phone ownership, the finance seeks to improve access to financial services for fast-growing mobile finance sector (box 4.7) holds consid- people who cannot use formal banking services, yet very erable promise for increasing women’s access to financial large numbers of people in developing countries are finan- services in rural areas. Mobile finance can overcome social cially illiterate—69 percent of men and 75 percent of women restrictions on mobility or legal barriers to account ownership, (World Bank 2015b). Making the change from cash to digital providing a significant boost to women’s economic empow- transactions requires an investment in technology and a sig- erment and entrepreneurship. It can offer women a new way nificant behavioral shift. If users are to trust mobile financial to save and transfer money, process small financial transac- services, they need to understand how the services work, tions, and receive credit from microfinance institutions. learn how to make basic transactions, and learn what to do when something goes wrong. Above all, they need to have confidence that the system is safe and reliable (World Bank OPPORTUNITIES FOR FINANCIAL INCLUSION 2015b). As of 2015, 271 services offered mobile finance in 93 countries, Aside from these general challenges, women face particular and the number of registered accounts had risen to 411 challenges of their own in adopting mobile finance (World million by the end of 2015. Mobile providers are processing Bank 2015b, GSMA 2015b): an average of 33 million transactions per day (GSMA 2015c). ƒ Women generally have lower incomes and do not see The data also show that significant opportunities remain for the need to open an account. increasing financial inclusion, especially for women and poor ƒ Women face more legal barriers than men when people. Worldwide, men are 7 percent more likely than women trying to open a (mobile) account. to own a mobile finance account. This gender gap is widest in ƒ Women have lower financial literacy rates than men. developing countries, and is even more pronounced for adults ƒ Mobile financial services deliver mostly generic living below the US$2 per day poverty line; women in that finance products that are not gender sensitive and/or group are 28 percent less likely than men to own an account adapted to the agricultural/rural context. (World Bank 2015a). When women do use mobile money, they ƒ Women face more technological challenges and are still lag behind men in the number of payments they make with still less likely to own a mobile phone than men. their account (World Bank 2015a). A study of the mobile finan- ƒ Women with access to mobile finance use it less cial service M-Pesa in Kenya revealed that women are more than men. likely to be passive receivers than senders and that women are less likely to try a new service (GSMA 2015b). The fact that mobile financial services tend to be generic rather than adapted to different contexts or groups of clients The opportunities for mobile finance to improve financial has important implications. If mobile financial services are inclusion are clear, but so are the many challenges. Mobile to contribute effectively to financial inclusion and to closing the gender gap, products and services must be adapted to BOX 4.7. Mobile Finance Defined variations in income, age, gender, and occupation. A rural woman farmer will have different needs from an urban man Mobile finance “provides channels for credit, savings, employed in the formal sector. insurance, transfers and payments. It encompasses not only mobile money and mobile banking, but also other alternative delivery channels such as e-vouchers, debit POTENTIAL BENEFITS cards, smart cards, branchless banking, ATMs and point- of-sale devices.” When women gain access to mobile financial services, Source: Babcock and Stratham 2014,2. they benefit from a safer and more confidential way of handling their money, which ultimately should give them I C T I N AG R I C U LT U RE 84 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT better control over their finances and increase their BOX 4.8. Evidence of Positive impacts of Mobile economic empowerment (World Bank 2015b). Potential Financial Services on Women’s Finance and positive impacts on finance and business opportunities for Business Opportunities women include:  In USAID’s ADVANCE II program in Ghana, women ƒ Increased access to an account for women. with mobile money accounts have reported that ƒ Increased control over finance by women. they can better manage household expenditures, ƒ Increased saving. Women are less likely to use money since no one else knows how much they have saved in a mobile account than if they keep the received or saved (USAID 2016). money at home. Mobile finance can also increase sav-  When reminders to save were texted to mobile ings through automatic deposits or text reminders. banking clients in Bolivia, Peru, and the Philippines, ƒ Lower costs for the provider and client. savings increased by up to 16 percent (World Bank ƒ Increased remittances—mobile money makes it easier 2015b). for rural women to solicit funds from their husbands  A randomized evaluation in Niger found that using and other contacts in the city and overseas. mobile payments for unconditional cash transfers ƒ Better access to credit to improve women-owned saved recipients 75 percent on payments. They businesses. Mobile accounts create a history of used those savings to purchase a greater variety of financial transactions, which helps to establish food and to grow a greater variety of crops (USAID creditworthiness. 2016). ƒ Increased participation of women in the labor force—  Mobile money services offering International including more opportunities for women to work Money Transfer saw the volume of cross-border remotely from home. remittances increase by 52 percent. Cross-border transactions were the fastest-growing mobile Potential positive impacts on social relationships and quality finance product in 2015 (GSMA 2015b). of life include:  Farmers in Niger realized time savings for each ƒ Empowerment for women. mobile finance payment, equivalent to an amount ƒ Positive shifts in men’s and women’s relationships that would feed their family for a week (World within communities. Bank 2015b). Sources: USAID 2016; World Bank 2015b; GSMA 2015b. ƒ Overcoming mobility restrictions. ƒ Savings in time and transportation costs. since expanded to the rural market. Much additional scope For specific evidence of positive impacts, see boxes 4.8 exists for diversifying the products offered, including credit and 4.9. and insurance to complement current mobile payment packages. The insurance industry is expected to earn up Yet the introduction of mobile finance can also have negative to US$1.7 trillion from women alone by 2030, presenting impacts. If products and services are not adapted to local a major opportunity for sustainable and inclusive growth needs, including the needs of specific groups, they may (IFC 2015). even widen the financial inclusion and other gaps. Another consideration is that sending payments directly to suppliers As the previous discussion indicates, the introduction of goods, instead of traveling to the supplier, can reduce of mobile finance is accompanied by changes in social the opportunity to control the quality of the goods ordered, relationships at the household level (between men and which is important for agricultural produce (Ndiaye 2015). women), within communities, and within agricultural value chains. Developing mobile financial services for women will not tackle all of the issues of gender mainstreaming, POLICY ISSUES however. Achieving this objective will require structural and Mobile finance was introduced in about 2000 and has cultural changes among all stakeholders involved in provid- grown continuously ever since. Initially, mobile finance ing the services, as well as mainstreaming gender in policies platforms targeted highly populated areas, but they have (IFAD 2009). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 85 BOX 4.9. Positive Impacts from M-Pesa in East Africa paying its employees digitally, and digitizing purchasing and payment data. The financial sector also has an impor- M-Pesa—M for “mobile,” and “pesa” for money in tant role to play in extending the mobile finance market, Swahili—is a mobile-phone-based money transfer, by recognizing the importance of extending and adapting financing, and microfinancing service launched in 2007 its products to female and rural markets and training agents in Kenya and Tanzania. In 2015, about 70 percent of who can educate customers (World Bank 2015b). The intro- the adult population of Kenya used M-Pesa. Research duction of larger numbers of mobile phones has an impact within fishing communities in Migory County, located on the environment, for which mechanisms need to be on the Kenyan side of Lake Victoria, shows that put in place. M-Pesa has brought significant positive changes for women, including the chance to save money in a safe place and to build up resources for costly activities and LESSONS LEARNED purchases, such as helping families in times of need Mobile phone ownership, or at least access to a mobile and sending children to school. Women confirmed phone, is a prerequisite for participating in mobile finance. that they were less likely to spend money when they Women who own phones make more savings deposits saved through M-Pesa, compared to keeping their sav- than women who borrow phones (Grameen Foundation ings in cash at home, since their husbands no longer 2012). had access to the money. Transportation costs and time have also declined significantly, allowing women The savings, investment, and spending patterns of women to invest more money and time in their businesses, differ from those of men and also vary depending on the as a result of which they now process and sell more roles played on the farm or within the agricultural value chain. fish. M-Pesa has also changed relationships between Mobile network operators and mobile finance providers have men and women. Since women can save money using not yet made substantive efforts to conduct this kind of mar- M-Pesa, they no longer need to ask for credit when ket research and adapt products, services, and marketing they buy fish from the men. Direct payments have also strategies accordingly, especially in rural areas (CTA 2015). increased trust within the communities. Strategic alliances between an agricultural organization, Source: Ndiaye 2015. such as an NGO, a development organization or a private sector firm, and a mobile finance provider can improve the adaptation of the financial services to the specificities of Governments play an important role in putting policies in the agricultural sector (Babcock 2014). “Designing Mobile place to enable equal access to mobile financial services. Finance Products for Rural Women in Zimbabwe” explains For example, governments can reform discriminatory poli- how an analysis of women’s needs for financial services in cies that make it harder for women to access mobile finan- Zimbabwe led to the development of an outreach strategy cial services, such as requiring a husband’s signature to that took those needs into account. open an account or borrow money. Governments also need to provide a favorable regulatory environment that allows Studies show that women have limited mobile phone lit- mobile financial services to be offered and aligns banking eracy, even when they own a phone, and that they are and telecom sector regulations (World Bank 2015b). A good often financially illiterate, so they need training and sup- example of a government initiative comes from Malawi, port (Grameen Foundation 2012). In Indonesia, Mercy where the FHI360 Mobile Money Accelerator Program is Corps’ Agri-Fin Mobile program combines the delivery of coordinating with the government to introduce electronic rural advisory services and financial services to increase salary payments for teachers, rather than cash payments agricultural productivity and farmers’ ability to manage (Hasselback 2014). The new systems will eliminate the their increased income. The program pays particular atten- need for teachers to spend time and money traveling to the tion to women beneficiaries and their specific needs. nearest bank to collect their salaries (often only to learn that Apart from learning through the mobile service, women the money has not yet arrived). requested face-to-face learning to acquire the necessary skills. They learned to open an account and access sav- The private sector can expand the mobile finance market ings, loan, and payment services through their mobile by increasing the number of digital payments significantly, phones (Mercy Corps 2015). I C T I N AG R I C U LT U RE 86 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT Trust remains an important barrier to the introduction of INNOVATIVE PRACTICE SUMMARY mobile finance. People do not always immediately trust Designing Mobile Finance Products for Rural the idea of their money becoming virtual and being stored Women in Zimbabwe on a mobile phone. In Papua New Guinea, for example, FAO’s Zimbabwe Livelihoods and Food Security Programme Nationwide Microbank has launched MiCash, a savings developed a gender strategy that included an analysis product. It was important to choose the right ambassa- of women’s access to finance and financial needs (FAO dors to increase awareness of the mobile finance prod- 2015c). The findings of the analysis reflected revealed uct and convince potential users that it was trustworthy. many of the concerns that have been discussed through- Active mobile money customers were used to educate out this module: their peers about the use and benefits of mobile money. ƒ Women lack access and control of assets to obtain The peer-to-peer learning was crucial in increasing the use loans. of MiCash among women (GSMA 2014). Women consti- ƒ Women have lower financial literacy rates tute 38 percent of the customer base and use it primarily than men. for savings. ƒ Women farmers experience more difficulties in accessing formal financial services. RECOMMENDATIONS FOR PRACTITIONERS ƒ Men and women both use mobile financial services. ƒ The general consensus is that mobile technology Overall, there is still a need to address current gender dis- is important to further the delivery of rural financial crimination and to ensure gender sensitivity at all levels and services. within all institutions involved in mobile finance. Development practitioners can play an important role in developing capac- ƒ Mobile financial services have tended to restrict ity for gender mainstreaming in the design, development, themselves to generic rather than specialized financial and delivery of financial services. products (with no gender sensitive products). Gender issues also need to be addressed at the policy and The findings and the resulting recommendations on gen- legal levels, to ensure that women and men have the same der and finance led FAO to partner with the Netherlands rights in accessing and using mobile financial services. Development Organization (SNV) and Steward Bank, a Increased use of mobile finance by women will go hand- subsidiary of Econet Zimbabwe, to develop and implement in-hand with modifications of laws that affect the rights of a Rural Finance Outreach Strategy for the Livelihoods and women to access, use, control, and own natural and physical Food Security Programme (SNV 2015). The outreach strat- assets (Fletschner and Kenney 2011). egy focuses on making relevant, appropriate, and affordable financial services available to rural households in a cost- Digital and financial literacy training is needed if women efficient and sustainable manner. (and men) are to be able to profit fully from mobile finance innovations. In the rural areas targeted by the initiative, women mainly Mobile finance products must be adapted to fit the needs save and obtain small loans through rural savings groups that of specific groups. More research is needed to assess have no access to formal financial services. Aligning with this the real advantages and potential disadvantages of the traditional model, Steward Bank developed the Eco Cash mobile finance revolution for rural women (Ndiaye 2015), Savings Club (a savings account for groups) and Eco Cash as well as gender-disaggregated data from mobile service Savings Club Loans (loans offered to groups for onward lend- providers. ing to members). Club members guarantee the loans to miti- gate credit risk. These products have the potential to benefit Women will benefit from the strengthening of existing wom- the large numbers of women who are the majority in rural en’s groups, where they can find a safe space to experiment savings groups. Steward Bank has also committed to look with new mobile finance products. They are more likely to into products that can promote the specific value chains and trust peers who have already tried mobile finance (Fletschner crops that women dominate, such as groundnuts, cowpeas, and Kenney 2011). and small livestock. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 87 Topic Note 4.2: MOBILE LEARNING, GENDER, AND AGRICULTURE The digital revolution is reaching rural areas in many devel- ƒ SDG Goal 5, to “enhance the use of enabling technol- oping countries, creating new openings for using ICT tools ogy, in particular information and communications to drive agricultural and rural development. This topic note technology, to promote the empowerment of women.” highlights how the range of learning opportunities for rural communities is widening through the spread of rapidly evolv- Mobile learning devices are generally digital, easily portable, ing mobile devices to improve knowledge and information, owned and controlled by an individual rather than an insti- especially about agricultural issues. Women stand to benefit tution, can access the Internet, have multimedia capabili- significantly from mobile learning opportunities, which can ties, and can facilitate a large number of tasks, particularly help them to improve their livelihoods and the well-being those related to communication. Devices that can be used of their families. Experience shows that addressing social for m-learning include handheld computers, MP3 players, barriers to mobile learning opportunities at the community notebooks, mobile phones, and tablets. M-learning focuses rather than the individual level—with the involvement of both on the mobility of the learner, interacting with portable men and women—is likely to have the greatest impact on technologies. This form of learning is convenient because women’s capacity to take advantage of mobile learning. it is accessible from virtually anywhere. Sharing feedback and tips is almost instantaneous among everyone using the Mobile learning (or m-learning) can be used to offer formal same content—which is a major advantage in remote, rural and informal learning for children and adults in a vast range of areas. areas. Definitions vary, but the following convey a sense of the scope and variety of applications: There are numerous opportunities in agriculture for m-learn- ing to provide information, including information on climate- ƒ Mobile learning is “learning across multiple contexts, smart agricultural practices, improved marketing strategies, through social and content interactions, using per- more effective pest and disease control, and agricultural sonal electronic devices” (Crompton 2013). advice. The specific challenges that prevent rural dwellers ƒ Mobile learning is commonly used to describe “the (women in particular) from taking advantage of m-learning use of mobile technology, either alone or in combina- opportunities resemble the challenges pertaining to the use tion with other [types of ICT], to enable learning any- of ICT in general: high cost and weak connectivity in rural time and anywhere. People can use mobile devices areas; low literacy levels and lack of digital skills; a lack of to access educational resources, connect with content adapted to users’ needs, in their own language; and others, or create content, both inside and outside sociocultural norms (such as those restricting women’s use classrooms” (UNESCO 2013:6). of mobile devices). Mobile learning can be adapted to schools, workplaces, Literacy is a catalyst for participation in social, cultural, politi- urban and rural areas, and formal and informal contexts (e.g., cal, and economic activities, as well as for lifelong learning see the innovative practices described at the end of this topic (UNESCO 2015b). Yet as noted in the overview, two-thirds of note). Mobile devices are regularly used to create communi- adults who lack basic literacy skills are women, a proportion ties of learners to exchange useful information. Realizing all unchanged since 2000. Half of the adult women in South of the potential benefits of m-learning in a rural context will and West Asia and Sub-Saharan Africa cannot read or write require some adaptation to overcome the barriers to using (UNESCO 2015b). the technology, especially for women. Among the post-2015 Sustainable Development Goals (SDGs), two are directly related to mobile learning: POTENTIAL BENEFITS ƒ SDG Goal 4, to “ensure inclusive and equitable quality The benefits of mobile learning go beyond the freedom to education and promote lifelong learning opportunities learn at any place and time. M-learning can bridge formal and for all.” informal learning and link online and offline environments. I C T I N AG R I C U LT U RE 88 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT It can minimize educational disruption in conflict and disaster a result the technology is dismissed as distracting or disrup- areas and assist learners with disabilities (UNESCO 2015b). tive. Although the small screens and awkward input meth- In a rural setting, mobile learning provides valuable informa- ods of mobile devices were once seen as disadvantages to tion for improving agricultural production and gives producers their use in education, these views are changing rapidly due a way to contact other producers and sources of expertise, to technological advances. Policy makers should take steps which is especially important in remote areas. to educate the public about the benefits of mobile learning (UNESCO 2015b) and strive to promote gender equality for If challenges posed by the digital gender gap can be over- mobile learning. come, there is particular scope for linking women to m-learn- ing, to improve agricultural outcomes and livelihoods. A Institutional considerations include ensuring equal access study covering 12 Latin American and 13 African countries to mobile technology and participation in mobile learning for from 2005 to 2008 found that fewer women accessed and all students and teachers. Students should be allowed to used ICT because they had less access to employment, “own” their mobile device whenever possible. Government education, and income; but when researchers controlled for departments and educational institutions should be encour- these variables, women turned out to be more active users aged to negotiate with vendors and leverage the purchase of of digital tools than men (Martin 2011). mobile devices. More and more projects in the agricultural sector are using Since fewer women than men own mobile phones, women mobile devices. Mobile learning is just one means of inte- are a new market segment, one that is likely to be offered grating mobile devices into agricultural development initia- less sophisticated, lower-priced devices than those used tives, and more work is needed to examine the efficacy of by men. Devices offered in rural areas should be durable mobile learning in such initiatives, using sex-disaggregated (resistant to shocks, dust, and humidity), energy efficient, data. and easy to maintain and repair. These conditions will limit e-waste and subsequent damage to the environment. Private sector mobile service providers have a role to play POLICY ISSUES in reducing the costs of making calls or sending SMS texts, Sustainability can be largely influenced by the cost of and as the Tamil Nadu case study shows, there is scope to mobile services. Some mobile learning projects have tested discover creative strategies for reducing costs. The gender the strategy of providing mobile phones and services to gap in mobile phone ownership and use is unlikely to close users/learners, either at no cost or at affordable prices through temporary agreements with private providers. In BOX 4.10. Mobile Learning Expands Women’s UNESCO projects implemented in Cambodia and Senegal, Livestock Rearing and Business Skills subsidies or bulk prices for SIM cards were negotiated with private providers. When the cost of the SMS aggregation/ In the Theni District of Tamil Nadu, India, an initiative disaggregation system was transferred to the implementing is encouraging rural women to use mobile phones as NGO in Senegal, it became unsustainable, and the service learning and business tools. Each of the 300 women was terminated. A notable alternative to this approach was participating in the scheme developed a business pro- tested in Tamil Nadu, India, where a goat-rearing project for posal to obtain credit to buy nine female goats, one women included the cost of mobile phones in the business buck, and one mobile phone. The microfinance institu- plans that participants prepared and presented to a public tion Vidiyal entered into an agreement with one of the sector bank to obtain credit (box 4.10). Sharing mobile biggest mobile service providers in southern India to phones is another strategy for reducing costs and increasing send audio messages and voicemails to the women. cooperative learning. It is also important to explore commu- The 500 audio messages, adapted to the local culture nity-based solutions for charging and repair services, such as and dialects, covered such topics as buying goats, feed solar-based mobile phone charging centers. management, animal health, and marketing. Vidiyal also encouraged the women to discuss issues concerning Negative social attitudes regarding the educational poten- their enterprises with one another and offered training in tial of mobile technology are a significant barrier to more effective conversation using mobile phones. widespread mobile learning. In many cases, mobile devices Sources: UNESCO 2015b; Balasubramaniana et al. 2010. are viewed as portals to entertainment, not education, and as ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 89 without targeted intervention from the mobile industry, policy BOX 4.11. Mobile Learning in Local Languages makers, and other stakeholders (GSMA 2015a). In Nigeria, the government’s Growth Enhancement For countries where the digital economy is still emerging Support Scheme for agriculture is harnessing m-learn- and access to the Internet is limited, various reforms are ing to increase agricultural productivity in rural farming needed. They include reforms to remove barriers, such communities. The scheme is overcoming the twin chal- as (1) a lack of basic ICT and supporting infrastructure, lenges of developing literacy and of providing knowledge (2) excessive regulation of product markets, and (3) high and information to speakers of many diverse languages tariffs for digital goods (which exceed 25 percent in some by designing content for mobile platforms in English, countries). Education systems need to focus on basic liter- Hausa, Yoruba, Igbo, and Nigerian Pidgin, among oth- acy and numeracy skills, connect teachers to digital content, ers. The content, delivered to mobile phones via synthe- and promote adult literacy (World Bank 2016). sized speech and text messaging, provides extension information, such as notices of preseason activities and site selection for growing rice. The availability of content LESSONS LEARNED in a medium and language that can have an impact on Beyond doubt, a primary lesson is that it is critical for rural literacy and knowledge levels should enhance farmers’ communities to gain better access to affordable communi- productivity in a significant manner. cation technology infrastructure, services, and devices. In Source: Ofulue, Adegbola, and Egbokhare 2013. addition: ƒ Due to low literacy levels, inadequate digital skills, and sociocultural norms, the most interesting alterna- tives and complements to phones for mobile learning BOX 4.12. Videos Easily Adapt to Local Audiences to may be video, radio, and talking books (see “Talking Build Women’s Knowledge of Maternal and Books Deliver Valuable Advice, No Reading Child Nutrition Required”). ƒ Instructions and content should be offered in local GloCal—Global issues in Local context—aims to languages (box 4.11) and use visual literacy strategies improve the nutrition and health of mothers, children, (box 4.12). and families around the world through educational vid- eos that focus on maternal and child nutrition. A set of ƒ During the life of a project, users/learners can gain 45 videos will be available for each region of the world, access to mobile phones and services at a reduced using familiar local foods and local women actors, to cost through temporary agreements with private pro- ensure that the target audience can relate to the infor- viders. But to ensure sustainability after a project ends, mation, even if they are not literate. Through voiceover, the cost of using a mobile device should be included the language can easily be altered to suit any local lan- in the business model. guage or dialect. The content, based on World Health ƒ Participatory design, planning, and implementation Organization guidelines, is consistent with government with the community, including men, can help to policies. overcome social barriers to women’s use of mobile devices for effective learning. The videos can be shown in health care centers and other public places as well as on local TV channels, and they ƒ It is important to monitor and evaluate the impact will soon be available for download from the Internet. of mobile phone technology on women’s and girls’ Rural health care workers can also use a tablet to show literacy and empowerment. the videos to mothers. A GloCal application will allow ƒ Mobile learning demands new pedagogies, includ- health care workers to quickly determine the specific ing new approaches to delivering and facilitating information needs of each mother and automatically instruction. locate the videos addressing those needs for viewing. ƒ Pilot projects that have shown good results should The GloCalMom application includes growth charts and be scaled up. It bears repeating that promising pilots vaccination record cards. should have sustainability built into their design, so that the benefits can be sustained when funding (continued) ends. I C T I N AG R I C U LT U RE 90 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT BOX 4.12. continued ƒ Developing strategies to teach relevant ICT skills to women and girls (box 4.14), as well as to men and The videos were piloted in 42 villages in 3 districts of boys. Bihar, India, to investigate how locally produced videos ƒ Encouraging self and/or collective learning with skills could increase community knowledge and the adoption and content relevant to learners’ prior knowledge, of improved nutrition practices. The findings were very diverse needs, and expectations. positive. Community members said that they learned ƒ Designing mobile learning content and interaction that about best practices in maternal and child health and is gender-sensitive and equitable. nutrition. The familiar local dialect used in the videos ƒ Opening mobile learning to a wide range of educa- helped them to remember key messages. tional settings and pedagogical processes. Currently, the GloCal videos are available in English and ƒ Rethinking curriculums and teaching methods. Digital Kiswahili, and translations are under way into French, technologies can assist teachers and students, by Portuguese, Amhara, and Tanzanian Swahili. In Kenya, allowing group work among classrooms connected the effectiveness of the video set is being tested with online, apps that stimulate creativity and problem solv- 1,200 mothers in urban and rural areas in a joint research ing, and games designed for education (gamification) project by the University of Helsinki and Kenyatta (World Bank 2016). University. ƒ Pursuing blended leaning—mobile learning grafted Source: www.glocalnutrition.com. onto existing nonformal education and community initiatives. ƒ Promoting self-learning and peer-to-peer learning. RECOMMENDATIONS FOR PRACTITIONERS For resources to pursue some of these recommendations, see box 4.15. UNESCO, which is committed to enabling “all people around the world to make use of the huge potential of ICT for learn- ing and self-empowerment,” recommends a number of policy measures to promote m-learning (UNESCO 2015b; World Bank 2016): BOX 4.13. Adapting Mobile Phone Use to ƒ Using low-cost devices and relying on affordable SMS- Sociocultural Norms delivered content and interaction, as well as hardware and systems with which users feel comfortable. A project in Cambodia found a solution to sociocultural practices that limit women’s ownership of mobile ƒ Designing projects that take advantage of the benefits devices. Phones were colored pink to signal that they of sharing mobile phones—to lower costs and encour- belonged to women, as a way of circumventing men’s age more cooperative and peer-to-peer learning. predominant ownership of the device. The Pink Phone ƒ Building mobile-phone enhanced literacy compo- project in Cambodia trains women leaders to use mobile nents within existing literacy and empowerment handsets to share ideas, information, and resources in a endeavors. virtual space. Women draw on the expertise of females ƒ Linking mobile-phone-enhanced literacy to collective in their virtual network to assist people in their physical efforts to improve women’s livelihoods, participation, communities. and employment opportunities. Another creative way of overcoming obstacles to female ƒ Improving gender gaps in the use of ICT in educa- phone ownership in male-dominated households was tion by encouraging women and girls as well as used in a goat-rearing project in the Theni District of men and boys to leverage mobile technology for Tamil Nadu, India. Women carried their mobile phones learning. in a small pouch (surukku pai) that is associated with ƒ Identifying culturally relevant ways of normalizing women’s identity and objects in Indian culture. mobile phone ownership and use, for women and Source: UNESCO 2015b. girls in particular (see the examples in box 4.13). ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 91 BOX 4.14. Women and the Web Alliance—Training promote change in their communities. They meet regu- That Empowers Women and Girls Online larly to discuss the challenges they face in their daily lives, make decisions, and take action to resolve their The Women and the Web Alliance is a public-private part- problems. Set up in several Sub-Saharan African countries nership designed to improve women’s digital literacy in (Burundi, Democratic Republic of Congo, Ghana, Niger, and Kenya and Nigeria. Through local training and online Senegal), the Dimitra Clubs follow a simple formula: the activities, the goal of the alliance is to enable women, determination of community members to mobilize, a wind- their families, communities, and countries to realize up solar-powered radio, close collaboration with community the socioeconomic benefits that can arise when more radio stations, and support from FAO (mainly in capacity women and girls know how to benefit from the Internet. development). The clubs use mobile phones to improve Increased Internet access enables women and girls to con- information sharing and networking within and among clubs, nect, engage with, and find new educational and career as well as with the radio stations and other stakeholders. In opportunities, greatly expanding their capacity to create sum, the participatory communication technology enables economic change for themselves. By producing, curating, the clubs to promote change more effectively. and sharing high-quality digital content, including training More than 60 percent of the population of Sub-Saharan Africa content customized for women and girls, the Women and lives in rural areas, where the main challenges are not only the Web Alliance helps to sustain their interest in using restricted access to productive resources and markets, but also the Internet and reaping the benefits in the long term. to information, knowledge, skills, and networking. Participatory The alliance aims to reach 600,000 young women communication approaches play a central role in addressing online in Kenya and Nigeria in the next two years and these challenges by enhancing people’s potential and facilitat- enable them to use the Internet for social and economic ing their involvement in decision making, dialogue, knowledge empowerment. The alliance’s partners are the United sharing, and partnership with development stakeholders. States Agency for International Development (USAID), Intel, NetHope, World Pulse, World Vision, UN Women, The Dimitra Clubs seek to contribute to individual and col- Women in Technology in Nigeria, and Internews. lective socioeconomic empowerment of rural communities, Source: http://www.womenandtheweballiance.org/. especially women and young people. Through this approach, women and men cease to be mere recipients of development actions and become protagonists. The process is guided by BOX 4.15. An Open Course on Digital and Mobile the principles of gender equality, social cohesion, solidarity, Learning and participation. Discussions may revolve around any topic of importance to club members, such as agriculture, natural The global Community of Digital Learning offers free resources, food security, and everyday issues linked to the material on digital and mobile learning. Topics explored relationship between men and woman and the division of on a step-by-step basis include digital learning, quality household tasks. in digital learning, new digital learning scenarios, aug- mented learning, blended learning, gamified solutions, Since 2007, over 300,000 people, more than half of them mobile learning, massive open online courses (MOOC), women, have been empowered through 1,500 Dimitra Clubs. scenario-based learning, self-paced learning, and the As documented in specific context-linked assessments, the peer-reviewing process. clubs have significantly improved organizational capacity, Source: For details, see: https://quality4digitallearning.org/. social mobilization, access to information, gender relations, and women and men’s active participation in decision- making processes. In the Democratic Republic of Congo, an INNOVATIVE PRACTICE SUMMARY IFAD supervision report concluded that “the project in the Dimitra Clubs: Rural Communities Learn and Tshopo Province has developed the self-development capaci- Mobilize for Change with Participatory ties of the members of the clubs, the gender dimension and Communication Technology structuring of youth in groups. The clubs are increasingly The FAO Dimitra Clubs are groups of women, men, and engaged in farming activities and many of their members have young people—mixed or not—that decide to organize to joined the local Union of Farmer Organizations (69%).” I C T I N AG R I C U LT U RE 92 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT In Niger, the use of radio, mobile phones, and other means of climate change are likely to make the crisis even worse. At the communication has contributed strongly to building women’s same time, increasing problems of people being overweight leadership and self-esteem, and reinforced their capacity to and obesity, especially in India, are creating another kind of speak in public and take part in local decision-making pro- public health concern related to nutrition. The South Asia Food cesses. Furthermore, the approach has brought about behav- and Nutrition Security Initiative (SAFANSI), supported by the ioral changes in various areas, including nutrition and World Bank Group and the UK Department for International agriculture, and has helped to bolster community resilience to Development (DFID), teamed with the international NGO climate change. For example, in the village of Banizoumbou, Digital Green to use a participatory video to promote sound women organized into Dimitra Clubs have obtained a 99-year nutritional practices in rural communities, based on the close lease from local landowners to use 3 hectares of land. This links between agriculture and nutrition in those areas. The aim result came after months of on-air discussions, with club was to investigate how locally produced videos could increase members calling community radio stations to discuss how to knowledge of nutrition in the community, encourage the adop- solve women’s lack of access to land. Meanwhile, in the tion of better nutritional practices, and evaluate the feasibility Democratic Republic of Congo the clubs have played a key of integrating nutritional information into the agricultural pro- role in changing people’s view of food taboos for women. In gram. The pilot targeted 42 villages in 3 districts of Bihar. the village of Yalosuna, a series of awareness-raising activities conducted by the Dimitra Clubs, coupled with club discussions SAFANSI had a secondary objective as well. It sought to that were broadcast live, have resulted in a community deci- enhance and promote knowledge management platforms— sion that women should improve their protein intake and eat massive open online courses (MOOC)—both on and offline, food such as catfish, which was previously reserved for men. so that a wider audience, including agricultural universities and other organizations, could use the instructional videos. A number of lessons have emerged from this experience that are relevant for similar activities: ƒ Participatory communication is key, using ICT to pro- THE DIGITAL GREEN APPROACH mote empowerment. Digital Green uses video as a cost-effective, scalable means ƒ Facilitating dialogue and exchange is crucial for ensur- of bringing community members, researchers, and devel- ing ownership by communities. opment practitioners together to produce and share locally ƒ Generally, Dimitra Clubs become autonomous after relevant information on innovative practices and change two years of support from FAO. behavior. Video is an intuitively accessible technology that ƒ Sustainable partnerships between clubs and com- sidesteps challenges related to literacy, and it is especially munity radio stations are based on confidence and effective when local farmers themselves convey advice respect. and information to community members. Unlike traditional, ƒ The approach encourages rural populations to be creative generic informational videos, these films are produced within in solving development challenges using local resources. the communities, with the help of community resource persons who are taught to film, edit, and screen the final ƒ The flexibility of the model is one of its strengths, but product. Low-cost, hand-held Pico projectors, which are it also presents challenges for scaling up. battery-operated, are used to showcase the videos at regular local events, such as self-help group meetings. INNOVATIVE PRACTICE SUMMARY The topics for the videos were relevant to local agricultural Participatory Community Video Highlights Local systems and nutritional needs, to ensure that their messages Agriculture-Nutrition Links and Best Practices would resonate with the community and have an impact. for Health6 For example, the topics included cultivating kitchen gardens South Asia has the highest rate of hunger in the world. According to increase the access to nutrient-rich vegetables, balancing to one estimate, 336 million people (nearly 23 percent of the the agricultural workloads of pregnant women, and improv- population) are routinely hungry, and new threats such as ing dietary quality and diversity for women and children. General public health and nutrition advice (for instance, 6 For more information, see World Bank 2015c and visit information on personal hygiene and breastfeeding) was digitalgreen.org). also included. ICT IN AGR IC ULTUR E S E C T I O N 1 — OV E RVIE W OF ICT IN AGRICULT URE : OPPORTUNITIES, AC C ES S , A ND C R OSS C UTTING TH EMES 93 BENEFITS AND IMPACT remember all of the information. Being illiterate, they are Community involvement was central to the success of the unable to take notes. initiative. During screenings, the community resource person Other knowledge exchange approaches that do not require would pause the video at strategic points and engage the literacy have their limitations. Mobile phone solutions require group in productive discussions on their understanding of the funds for network time or expensive and fragile smart- featured practice. Small groups (the typical group had 15 to 20 phones. These options are valuable for transmitting simple, people) created an informal and intimate environment, enabling time-critical information, but they may be less effective as all members to interact, ask questions, and clarify doubts. teaching systems. Texts are no use to the illiterate. Local radio programs reach a wide audience through a single In a controlled evaluation, Digital Green’s approach was shown broadcast, but broadcasts cannot be replayed or shared to be at least 10 times more effective, on a cost per adoption with people who were not present when the program airs. basis, than a conventional approach to agricultural extension, A single broadcast generally is not enough for someone to with a sevenfold increase in the rate of behavior change. learn a new technique. With Talking Books, users can listen to a recording as many times as they need, before incorporating LESSONS LEARNED AND ISSUES FOR WIDER a new practice into their lives. APPLICATION Combining Talking Books with other knowledge exchange Community members remembered key messages in the approaches can provide good results for illiterate farm- videos, as the local dialect was familiar to viewers and ers, however. For example, coupling a Talking Book with a the messages were clear. Some videos were screened mobile-based intervention combines timely distribution of more than once, at the request of viewers, to enable view- content with the ability to play lengthier content on demand ers to retain their messages better. The videos increased at no cost. Likewise, adding Talking Books to a radio-based knowledge of best practices for health and nutrition. Women intervention combines radio’s broadcast capability with a net- found the nutritional content especially useful, since they work of devices that act as local audio libraries. In all cases, are largely in charge of household dietary decisions (deci- those targeted for the Talking Book project are people with sions on agricultural practices are traditionally dominated oral cultures and few or no literacy skills, families without by male household members). The videos helped to dispel electricity, communities with unreliable or expensive mobile myths related to pregnancy and childbirth, such as not eat- networks, mothers without a phone, and grandmothers who ing pumpkin during pregnancy. Communities said they felt do not like technology. better informed about maternal and child health and nutri- tional practices after watching the films. HOW THE TALKING BOOK TECHNOLOGY WORKS INNOVATIVE PRACTICE SUMMARY The Talking Book is a small portable recording device Talking Books Deliver Valuable Advice, (12 cm × 12 cm × 6.5 cm, weighing 225 g without batter- No Reading Required7 ies), built to withstand dry dust storms and tropical rain, and Literacy Bridge is an NGO that aims to save lives and improve storing 140 hours of audio content. It is affordable, simple the livelihoods of impoverished families by providing on- to use, and runs on batteries. The device features indented demand access to locally relevant knowledge. At the heart of touch buttons, to facilitate use by visually impaired people its programs is the Talking Book, an innovative, low-cost audio and by all users at night. With a simple audio menu offered computer designed for the learning needs of illiterate people in a range of local languages and dialects, users can select living in the poorest areas of the world. The device links users the information that interests them. The audio content can be to valuable information on agriculture and other rural issues. replayed as needed, played for family and friends, and easily loaned to third parties. In many rural areas of Ghana, farmers rarely receive vis- its from extension officials, and when they do have the The Talking Book disseminates information created and chance to meet agricultural experts, they cannot always recorded by local experts for rural communities. Recordings may feature agricultural extension agents describing farm- 7 For more information, visit http://www.literacybridge.org/talking ing techniques—such as fertilizer preparation, seed spacing, -book/ and the Literacy Bridge 2014 Annual Report. and livestock care—or microfinance institutions offering I C T I N AG R I C U LT U RE 94 MODUL E 4 — E XT E NDING T HE BENEFITS —GEND ER-EQUITA B LE, ICT-ENA BLED AGR ICULTURA L D EVELOPM ENT business guidance and explaining topics such as credit and REFERENCES AND FURTHER READING rotating savings plans. Abdoulaye, M., and A. Van der Elstraeten. 2013. “Les clubs d’écoute communautaire Dimitra au Niger.” Fiche de bonne pratique: Literacy Bridge does not sell Talking Books. It includes Niger, Rome. http://www.fao.org/docrep/018/aq225f/aq225f.pdf. Talking Books as part of its ongoing partnerships designed Babcock, L. 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ICT IN AGR IC ULTUR E SECTION 2 Enhancing Productivity on the Farm S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 99 Module 5 INCREASING CROP, LIVESTOCK, AND FISHERY PRODUCTIVITY THROUGH ICT EIJA PEHU (World Bank), CORY BELDEN (World Bank), and SUVRANIL MAJUMDAR (World Bank), with input from TEEMU JANTUNEN (FM-International Oy FINNMAP) IN THIS MODULE Overview. How can farmers and governments use ICT to increase agricultural productivity? At the local level, farmers can use ICT to match cropping practices to climatic trends, use inputs and resources environmentally and sustainably, and cope with productivity threats. At the national level, public officials can adjust policies to reflect the data collected with ICT, predict food supplies, and target social programs or promote yield technologies. Integrating ICT into national programs, creating a policy environment conducive for ICT investment, and designing digital systems that are compatible and common can help improve access for users, but social and financial challenges remain. Powerful yet inexpensive tools (and the financial support and training to use them) are not always available for small-scale producers in most devel- oping countries, although some are being developed and piloted. Conducting impact studies and sharing pilot project information can focus and speed the development of such types of ICT. The productivity goals and technologies used to meet them must match the IT capacity in the focus location. Topic Note 5.1: Achieving Good Farming Practices through Improved Soil, Nutrient, and Land Management. New types of ICT help to characterize field conditions, sometimes at a very fine level of detail, and help farmers improve soil and land productivity. Correcting past damages and ensuring future yields will require farmers, governments, and devel- opment partners to mitigate the effects of climate change and environmental degradation. Significant, national progress with some of these technologies will require appropriate legal and regulatory frameworks, monitoring systems, and liability, access, and property rights laws and regulations, such as regulations on carbon limits.  Seeing-Is-Believing Project Improves Precision Farming  Improving Nitrogen Fertilization in Mexico  Monitoring Livestock to Prevent Pasture Damage Topic Note 5.2: Preventing Yield Losses through Proper Planning and Early Warning Systems. ICT has consider- able potential to help even small-scale producers prevent losses after investments have been made by identifying and controlling pests and diseases, receiving timely weather information, and improving resource use. At the same time, ICT allows governments and development partners to better monitor farm productivity, make more accurate projections, and plan better for the future. ICT should be used to form two-way communication networks that gather and use local knowl- edge. Advances in ICT are best suited to helping farmers improve their management of one or two farm components at a time. Development partners and governments need to prioritize which yield technologies or agricultural strategies to introduce. Incentives for partnering with the private sector in large-scale ICT projects may enable the investment to reach smallholders. Taking stock of the technical capacity in rural areas will clarify infrastructure needs.  Radio Frequency Identification to Prevent and Treat Cattle Disease in Botswana  Digital Orthophoto Quads Form a Database for the Dominican Republic  Using Landsat to Assess Irrigation Systems in Mali I C T I N AG R I C U LT U RE 10 0 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T OVERVIEW countries, has stagnated in developing countries. Several Agriculture is a vital sector for the sustained growth of regions, particularly East Asia, have seen rice yields decline by developing countries, especially agriculture-based countries 10 percent owing to climate change. The factors contributing such as those in Sub-Saharan Africa. Equally important, a to low productivity are vast, including the coevolution of pests significant portion of the world’s population—86 percent of and pathogens, poor infrastructure, soil loss and degradation, rural inhabitants—still depends on agriculture for employ- waterlogging and salinity, the impact of climate change, the ment and sustenance (World Bank 2007). Demand for food lack of storage facilities, and weak markets. Low investments is increasing, too (box 5.1). The Food and Agricultural Policy in agricultural research have reduced the scope for innovative Research Institute (FAPRI) estimates that an additional 6 thinking and technological development that could address million hectares of maize and 4 million hectares of wheat, these contributing factors and improve productivity. plus a 12 percent increase in global maize and wheat yields, Despite the dim outlook for meeting global food demand will be needed to meet demand for cereals alone in the in a sustainable manner, successful social, economic, and next decade (Edgerton 2009). Demand for meat is expand- technological developments have resolved productivity and ing as incomes rise, creating competition for land and other population issues in the past and may hold some hope for resources. Increasingly unstable weather and temperatures the future. For example, over the past 40 years, annual global require adaptive agronomic techniques to meet the demand. cereal production has grown from 420 million to 1.176 million tons (FAO 2000). In the 20th century, yields in the United The average maize yield per hectare in wealthy countries like States rose from 1.6 tons per hectare to 9.5 tons per hectare Canada is three times higher than the average maize yield in (Edgerton 2009). Similarly large increases occurred around low-income countries (FAO 2008). Growth in yields of rice, the world from the mid-1980s to early 2000s, when cereal the primary staple for a significant number of developing yields rose by more than 50 percent (World Bank 2007). BOX 5.1. The Food Security Challenge The lack of food. Increasing agricultural productivity and access to food are the primary development goals of the 21st century. Demand for food has reached new heights, and predictions of future demand are discouraging. Although growth in global demand for cereals will slow in the coming 40 years, demand in Sub-Saharan Africa will balloon by as much as 2.6 percent per year.a The food-insecure population in Sub-Saharan Africa is also expected to increase by up to 32 percent by 2020, whereas food insecurity is projected to decline in Latin America and Asia.b Overall, the world will need 70–100 percent more food by 2050, when the population increases to 9 billion.c The lack of nutrients. The lack of food is not the only problem. Almost one billion people were undernourished in 2010, and the lack of nutritious food has serious, long-term consequences for physical and mental health. More than one in seven of the world’s people do not receive enough protein and carbohydrates in their daily diets. These people constitute 16 percent of the developing country population.d The rising prices. Even with projected reductions in food insecurity, price spikes could keep staple food out of the reach of poor people. The 2008 price spikes led to starvation in many countries, hitting the net food importers—typically the poorest countries—the hardest. Ethiopia, Malawi, Tanzania, and Uganda experienced maize prices that were twice as high as in the pre- vious year. In Kenya and Mozambique, prices rose by 50–85 percent, according to the United States Department of Agriculture. Sharp and unexpected price spikes can provoke riots and political instability, aggravating an already precarious food situation. FAO recently predicted that the total costs of food imports would reach a near-record level in 2010, roughly US$1 trillion.e The changing climate. Climate change has made the challenges of food security and rising prices even more stark. Continued release of greenhouse gases increases the likelihood of unpredictable weather and temperatures. The severe 2010 droughts and fires in the Russian Federation, Ukraine, and Kazakhstan raised wheat prices substantially, leading to grain embargos in multiple countries. Russia’s wheat exports fell by 13 million metric tons in one year.e Pakistan’s floods are another warning of the serious climate changes facing developing countries. The loss of soil nutrients that can accompany climatic extremes makes agricultural land less productive and adds to food insecurity. This prospect is ominous, considering the consistent drop in cereal yields over the last decade.f Source: Authors; (a) Rosegrant et al. 2006; (b) Shapouri et al. 2010; (c) World Bank 2007; (d) FAO 2009; (e) FAO 2010a; (f) Raloff 2010. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 101 Agricultural productivity rose around the world because more Nonetheless, land can be used more intensively as well as land was cultivated and more land was cultivated more inten- more sustainably than in previous years, under innovative sively. Most of the gains were made through intensification. farming practices like precision farming, integrated pest man- Agricultural land expanded by only 11 percent between 1961 agement, agroforestry, and aquaculture (Burney, Davis, and and 2007 (FAO 2009), but between 1960 and 2000, genetic Lobella 2010). Sustainable land intensification, in which yields improvement and agronomic practices contributed to 78 per- rise but negative environmental impacts are curbed, provides cent of the increase in production (Lal 2010). a potential answer to food security and poverty reduction chal- lenges. The sobering consideration, however, is that this type Bringing more land into production is infeasible, not only of intensification cannot occur unless 1.5 billion farmers— because of the growing number of competing uses for land 85 percent of whom farm less than two hectares—obtain and but because of the environmental and social costs involved. use these and other new technologies (World Bank 2007). The drive for agricultural land has often resulted in deforesta- tion, reduced biodiversity, and provoked other forms of envi- If the goal is to achieve sustainable increases in the global ronmental degradation (Balmford, Green, and Scharleman food supply and economic growth, it is important to ask who 2005). It has also removed livelihood opportunities for some is responsible for producing food and commodities. Equally communities and elevated greenhouse gas emissions crucial, it is important to ask if they have access to technology, (Millennium Ecosystem Assessment 2005). the knowledge to use it, and the purchasing power to acquire it (Pretty et al. 2006). The world as a whole, all regions, and Given these constraints, development partners and govern- all nations depend on farm households to provide food and ments alike continually seek ways to raise crop yields with- by 2050 the world will ask farm households to supply double out using additional land. Raising yield per unit of land was the current amount of food. Today, the farmers that the globe observed during the Green Revolution of the 1960s and depends on are primarily smallholders with little access to 1970s, when the use of new cultivars (shorter, higher-yielding technology, limited knowledge, and few financial resources. varieties of wheat and rice) and improved practices (such as Notably, 43 percent are women (FAO 2011). Box 5.2 expands the use of fertilizer and irrigation) significantly increased crop on why gender is a critical consideration in designing and yields throughout most of Latin America and Asia. A similar implementing ICT for agriculture productivity. Green Revolution never arrived in Sub-Saharan Africa but is sorely needed, given that almost all of the arable land is being Given that the future of food depends to such a great extent cultivated (Govereh, Nyoro, and Jayne 1999). on small-scale agriculture, governments and development BOX 5.2. Gender in Agricultural Productivity Exploring how gender disparities affect agricultural productivity is at the forefront of the development agenda. Women play significant and essential roles in agriculture in most developing countries. Their knowledge of local agrobiodiversity and conserva- tion practices makes them prime assets in the sustainable intensification of agriculture. Women are also responsible for process- ing most crop and animal products and are often more involved than their male counterparts in high-value production. In addition, females play the chief role in care-taking, making them essential to household nutrition and children’s (especially girls’) education. It is widely accepted that women invest more regularly, and to a greater extent than men, in the well-being of future generations. These responsibilities add to a burdensome workload that involves time-consuming activities like fetching water and fuel. Despite women’s key contributions to agriculture and rural development, they face major challenges in accessing inputs like land, improved tools, and financial services. Cultural, social, and political barriers prevent women from using their assets effectively in the field. Women are much less likely than men to purchase fertilizer or machinery. Women also have lower incomes compared to men: They receive smaller salaries in formal positions, earn less from their livestock, and are typically involved in seasonal, part-time work, if any.a As a result, their productivity is minimized and below that of male smallholders. This situation represents a major challenge to increasing yields, because the majority of the world’s smallholders are female (75 percent in Sub-Saharan Africa). Increasing agricultural productivity requires greater attention to gender dif- ferences and women in general. FAO asserts that if women had better access to resources, they could increase yields by 20–30 percent.a Development institutions should use ICT to address these issues—and of course make certain that women can access ICT in the first place. Source: Authors; (a) FAO 2011. I C T I N AG R I C U LT U RE 102 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T partners are focusing on how to increase productivity in biophysical technologies appropriately (for example, nitrogen sustainable ways through new technologies that smallhold- sensors can help to determine the correct fertilizer dose). ers can use. Irrigation management, biotechnologies, pest management and eradication, soil assessment, improved Similarly, governments or development partners may know nutrient and land management, improved market access, that farmers are using new yield-enhancing technologies and innovative storage facilities are all strategies for increas- but may not have the capacity to understand their effects. ing smallholders’ agricultural productivity and improving Data-mining technologies, decision-support systems, and their access to markets, but the challenge lies in ensuring modeling software that can clarify the effects and outputs of that smallholders can obtain and use them. ICT provides an yield-enhancing technologies are among the most promising incredible opportunity to reach farmers with the technical means of linking productivity and ICT. information they require to increase yields. This module describes how farmers and governments can use ICT in their strategies to increase agricultural productivity. Linking Technology for Agricultural Productivity with ICT The applications are quite broad; ICT can be used to moni- This module discusses two sets of technologies and the links tor pest thresholds in integrated pest management, provide between them: relevant and timely information and agricultural services, ƒ Yield technologies, like improved seeds, crops map agrobiodiversity in multiple-cropping systems, forecast developed through biotechnology, tractors, pesticides, disasters, and predict yields. Crop losses diminish as farmers fertilizer, and irrigation systems. receive relevant and timely information on pests and climate ƒ Information and communication technologies, warnings through SMS technology. like geographical information systems (GIS), wireless sensor networks, data mediation software, and short Just as important, information can (and should) go both messaging service (SMS). ways: Farmers can alert local governments or other relevant actors about serious crop developments like disease symp- Though they often work symbiotically at the farm level, and toms. This information makes it possible to avoid disasters though both are often required to achieve the kinds of develop- more effectively and improves economic management, both ment goals discussed in this module, the differences between of which are crucial for adapting to climate change. them need to be understood. Figure 5.1 helps to clarify them. ICT can also lead to more optimal use of inputs. Increasing When farmers have access to biophysical and other yield- producers’ knowledge of how to use and manage water; enhancing technologies, frequently they do not know how to equipment; and improved seeds, fertilizer, and pesticides has use them effectively to address their productivity challenges strengthened of farm practices around the world. In the long (for example, they may have fertilizer but not know the opti- run, and after collecting and analyzing multisite, multiyear data, mal amount to apply). ICT can fill this gap in knowledge. Global ICT can be used to match cultivars to appropriate environments, positioning systems (GPSs), radios, mobile phones, digital soil increase the understanding of genotype-by-environment inter- maps, and other types of ICT give farmers information to use actions, and adapt cropping strategies to the changing climate. FIGURE 5.1. Defining the Relationship Between Types of ICT and Yield Technologies New technologies (Tractors, seed, pest management, biotechnology) Types of ICT Types of ICT (GIS, GPS, radio, wireless, cameras) (Data mining, SMS, decision-support systems) Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 103 Each of these applications increases the profitability of agri- ƒ Global positioning system (GPS) is a satellite-based culture, reduces transaction costs, facilitates climate change positioning and navigation system with three basic adaptation, and improves livelihoods for the rural poor. components: satellites that orbit the Earth, control and monitoring stations on the Earth, and the GPS receiv- Strategies to increase yields (including strategies to avoid yield ers owned by users. GPS receivers pick up signals losses) include initiatives like soil nutrient assessments, weather from satellites, including precise orbital information forecasting, and crop or animal protection. The types of ICT used (latitude, longitude, and ellipsoidal GPS altitude) for to enhance these strategies are discussed in the topic notes. a given object or location, as well as the time. GPSs can function in any weather and are free for public use Topic Note 5.1, “Achieving Good Farm Practices through (GPS.gov n.d.; GARMIN n.d.). Improved Soil, Nutrient, and Land Management,” focuses on ƒ Satellite imagery is an image of Earth taken from soil testing technologies and tools that characterize field con- satellites in orbit. There are four types of satellite ditions, sometimes at a very fine level of detail. These tech- imagery—spatial (size of surface area); spectral nologies help farmers apply inputs appropriately and encour- (wavelength interval); temporal (amount of time); age the use of sustainable, profitable farming practices. and radiometric (levels of brightness)—which Topic Note 5.2, “Preventing Yield Losses through Proper capture a variety of variables about a given area of Planning and Early Warning Systems,” focuses on how varying size. The resolution (in meters) of these ICT can be used to identify and control pests and diseases, images depends on the satellite system used and improve access to timely weather information, and improve its distance from Earth; weather can interfere mainly the design and management of irrigation systems. with satellite systems utilizing visible wavelengths of light. The cost of the technology depends on the Various examples and innovative practice summaries are satellite system used, on whether new or archive included; it should be noted that most of these practice imagery is purchased, and on possible georeferenc- summaries come from pilot programs in Africa, where many ing to a coordinate system. studies and projects are currently under way. Discussions of ƒ Aerial photography and orthophoto mosaic. An lessons learned (covering crosscutting themes, challenges, aerial photo is an image (once a photograph, now a and key enablers) conclude each note. Finally, the broad digital image) of the ground taken from an airplane, types of ICT discussed in this module fall into three catego- helicopter, or radio-controlled aircraft at a given altitude. ries. They are briefly defined in the subsections that follow.1 Aerial images are presented as an orthophoto mosaic that is an alternative to a map. These images are higher Remote Sensing Technologies: Raw Data Collection in resolution (deci-meter) than satellite images, proving The first type of ICT that improves productivity includes tools useful for those who want more details of the terrain that collect agricultural data: such as crop conditions or land use. In addition, modern ƒ Geographical information systems (GIS) collect digital aerial photography is georeferenced—that is, geographic data through computer hardware and each point has geographical coordinates, whereas sat- software to capture, store, update, and display all forms ellite imagery requires georeferencing to be geographi- of geographically referenced information by match- cally accurate and compatible with other geographi- ing coordinates and time to other variables. Data sets cal data (for example, in GIS) (T. Jantunen, personal formed by GIS constitute “layers” of informa-tion (for communication). example, on topography, population size, or agricultural ƒ Laser scanning, or light detection and ranging household income) that can be merged and analyzed to (LiDAR), is an active airborne sensor using a set of establish relationships and produce maps or charts that laser beams to measure distance from an aircraft to visualize geographical traits (GIS.com n.d.). features on the ground. Airplanes and helicopters can be used for laser scanning. The data from laser scanning are three-dimensional at very high accuracy, 1 This is not a comprehensive list of all of technologies discussed and they also allow ground elevation under the tree in the module; nor is it a comprehensive list of all the types of canopy to be measured. The elevation accuracy of ICT used to increase agricultural productivity. The technologies reviewed here are the best known and most applicable to all laser scanning data is much better than aerial photog- yield technologies or agricultural strategies. raphy, which makes laser scanning useful for accurate I C T I N AG R I C U LT U RE 104 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T topographic mapping where elevation is critical. The ƒ WiFi. Wireless local area network that allows various data can also be used to measure forest attributes devices to connect to the Internet remotely. such as the height and density of trees and thus ƒ Knowledge management system. Electronic the volume (above-ground biomass) of the forest system that provides relevant information as it is (T. Jantunen, personal communication). requested. It should be noted that extension agents and advisory pro- Information Management Technologies: Making Sense grams are essential to disseminate knowledge about the of the Data types of ICT discussed in this module, but this issue is not The raw data collected, as indicated above, are fairly useless discussed in detail here; see Module 6. without analytical tools, both human and inanimate: ƒ Spatial modeling (among other models). Closely related to spatial analysis or statistics, models are KEY CHALLENGES AND ENABLERS an attempt to simulate real-world conditions and Increasing smallholder productivity is one the greatest explore systems using their geographic, geomet- tasks in this century. Although the dimensions of the chal- ric, or topological properties. GIS (which can also lenge are huge (growing populations, growing demand for perform analysis), among other types of ICT, has food, rising poverty, economic stagnation, worsening envi- increased opportunities to create models that pre- ronmental degradation, and climate change), the growing dict occurrences like yield growth and ecosystem number and sophistication of types of ICT offer some hope degradation. of raising agricultural productivity, even in smallholders’ ƒ Data mining is the extraction of stories or pat- fields. Variable rate technology, GIS, GPS, satellite imag- terns from large amounts of data. Data mining can ery, and other data collection technologies have increased find four major patterns: clustering (discovering the information available about soil health, weather con- groups), classification (forming a structure), regres- ditions, and disease outbreaks, making very site-specific sion (finding a function), and associations (finding farming possible. The key to using these technologies to relationships). These analyses help to make sense of boost productivity is to remember that complementary agricultural data collected by remote sensors (Palace technologies are needed: Data analysis technologies (such 1996). as data mining or mediation software) and information ƒ Data mediation is the process of taking many dif- dissemination technologies (such as mobile phones and ferent data sets to produce a single, coherent set radio) are essential for reaching smallholders effectively. of information. Data mediation software organizes Dissemination also includes the crucial human component: different types of data (such as hourly versus daily) Extension agents and farmers themselves must transmit and synthesizes different approaches to classifica- and share knowledge. tion (for example, the use of a different classifica- tion vocabulary), helping to mediate differences As noted, productivity can be increased by expanding the between data sources—particularly those on the land available for agriculture or by making the land already Internet. in use more productive. Given current global circumstances, it seems that the second option is more likely to close the productivity gap and meet demand. In conjunction with tech- Dissemination Tools: Getting the Results to the nologies developed to raise yields, the use of the types of ICT Stakeholders discussed in this module may do just that. Mainstreaming After analysis, the results must reach those who need to the use of ICT devices and techniques in agriculture will also react to the findings, using tools like: enable them to be used more effectively. Integrating ICT ƒ SMS. Text options that allow interaction between into national programs, creating a policy environment condu- fixed-line and mobile phones. cive for ICT investment, and designing digital systems that ƒ Radio. transmission of information through electro- are compatible and common can help improve access for magnetic waves with low frequencies. users. Conducting impact studies and sharing pilot project ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 105 information is also critical to success with ICT, as more spe- and regions need to understand their potential uses to cific lessons and impacts are learned (IICD 2006). increase agricultural productivity. These stakeholders must learn how to tailor ICT solutions to macroeconomic needs In closing, it is important to emphasize that the benefits as well as local agricultural bottlenecks, while exploring how of ICT can be realized on multiple levels. As ICT capacities current infrastructure can harness relevant and appropriate expand, local farmers and communities as well as nations technologies. Topic Note 5.1: ACHIEVING GOOD FARMING PRACTICES THROUGH IMPROVED SOIL, NUTRIENT, AND LAND MANAGEMENT TRENDS AND ISSUES ASSESSING SOIL PROPERTIES FOR CLIMATE- RESILIENT AGRICULTURE Residue removal, tillage, overuse of pesticides and fertilizers, lack of crop diversity, overgrazing, overexploitation of natural Accurate soil analyses and improved farming practices are resources, and deforestation have led to unhealthy soils and needed urgently because productivity gains are highest yearly reductions in crop output. Greenhouse gases worsen in healthy soils and where pesticides, fertilizer, tools, and the situation. Changes in atmospheric temperatures (rising in machinery are used properly. Instruments for mapping and most developing countries) reduce crop performance. Above analyzing soil properties have proliferated in the last decade, 30°C, food and fiber crops develop at a faster rate, leaving increasing farmers’ knowledge about the soils on their farms less time for nutrient assimilation, biomass accumulation, and the need for climate-resilient agricultural practices. The and growth (Qaderi and Reid 2009). With lower yields and following section discusses these technologies and their continued soil mismanagement, economic growth slows associated challenges in broad terms. Subsections discuss drastically. This outcome is seen most vividly in countries like innovative technologies specifically related to nitrogen and Rwanda, Tanzania, Mozambique, and Niger, where the costs carbon, two essential chemical components of successful associated with the depletion of soil nutrients are estimated soil conservation and climate change mitigation. to account for 12–25 percent of the agricultural share of GDP (Drechsel et al. 2001). Digital soil maps are the most promising applications for visu- alizing soil properties and the gravity of soil nutrient deple- tion in a particular area.2 The International Working Group on Good farming practices maximize the chances of a good har- Digital Soil Mapping (WG-DSM) defines digital soil mapping vest. In the past, conventional farming practices treated entire as “the creation and the population of a geographically refer- farms as homogeneous units even though they are often vari- enced soil database generated at a given resolution by using able in productive potential. This view is changing as technology field and laboratory observation methods coupled with envi- allows producers to measure soil nutrient status, crop potential, ronmental data through quantitative relationships” (Rossiter pasture health, and water-use efficiency at specific sites within 2004). A variety of technologies, including satellite remote a field. Some types of ICT, like digital soil maps, provide exten- sensors and cameras, can be used to survey soil and collect sive soil information that can be stored and accessed online. data to create digital soil maps. GPS, satellite imagery, remote sensors, and aerial images help to assess soil and land variations, and mobile applications and These technologies collect soil information faster than the Internet can disseminate the information quickly. With this methods that require scientists to take soil samples from array of types of ICT, precision farming can be employed to optimize crop and livestock management. Until now, however, these techniques have been concentrated in highly mecha- 2 For a diverse set of soil maps and data, see FAO, http://www.fao nized, large-scale agriculture in industrialized countries. .org/climatechange/54273/en/). I C T I N AG R I C U LT U RE 106 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T the field. In the latter methods, 80 percent of the work on Digital soil maps give practitioners a good picture of soil fertil- soil mapping is dedicated to soil identification and boundary ity, vulnerability, and potential. Statistically testing soil maps mapping, and only 20 percent of the time spent in the field against other data on human or policy variables (like demo- is left to gather data on more complex and equally impor- graphics, land administration, farming practices, and climatic tant topographical features, such as water-holding capacity changes) allows researchers and others to explore causes of (Manchanda, Kudrat, and Tiwari 2002). Innovative data col- soil damage and forms of restoration. lection technologies allow researchers to focus on a variety of soil features (box 5.3). At a national or regional level, models created from digital soil maps can be used to improve the selection of crops Practitioners can take the soil data collected from the technol- and varieties (based on which crops and varieties can ogies described in box 5.3 and use statistical methods, GIS, withstand stressful soil conditions). They can also be and soil inference systems to form “predictive soil maps.” used in early warning systems (predicting crop failure, These maps provide information on a soil’s capacity to provide for example), giving policy makers more time to react to ecosystem services (such as its capacity to infiltrate water, shortfalls in domestic and export markets. In addition, fine- produce crops, or store carbon), geographical representations resolution soil maps collected from a number of regions could of soil constraints (such as aluminum toxicity, carbon deficit, enable climatologists, hydrologists, and crop modelers to or subsoil restrictions), and a baseline for detecting subse- more accurately predict the effects of climate change or new quent changes and assessing their impact (AfSIS 2009). technologies on food production and environmental health. After soil data are collected, analyzed, and reflected in digital BOX 5.3. Using Remote Sensors and Similar Tools soil maps, the results need to be shared with policy makers, to Measure Soil Properties scientists, and especially farmers, who would otherwise not have such detailed information on soil fertility in their A number of types of ICT can be used to measure soil respective farming communities. Recent developments in properties for creating digital soil maps. Through near- ICT increase the cost-effectiveness of soil maps: The spread infrared and short-wave infrared sensors, satellites mea- of mobile phones and Internet access can transfer relevant sure spectral reflectance in soils on the ground. Different soil information to even remote locations. Collaborating with materials reflect and absorb solar radiation at a variety extension staff, farmers, agrodealers, and others, develop- of wavelengths (see the figure). As a result, remote ment institutions can generate integrated soil fertility man- sensors can measure soil color, texture (sand, silt, and agement schemes that improve a wide range of farming clay), organic matter, moisture, salinity, and absorption practices. Box 5.4 explains how these results can be applied. processes by detecting and observing the solar radiation reflected (orbit sensing). Reflectance changes depend- ing on the soil’s contents; for example, reflectance is Challenges in Soil Mapping low in areas with low silt content.a This technology gives researchers an accurate assessment of soil properties to Although technological developments have improved use in GIS and computer modeling for digital soil maps. access to digital soil maps, major technological and eco- nomic challenges remain to be addressed in soil science and development institutions. Broadly speaking, the impacts Sun Satellites and outcomes of using digital soil maps in smallholders’ fields have not been captured. Soil assessment techniques certainly contribute to the knowledge of production poten- tial, but the transformative effects of this knowledge (such as the adoption of new practices) have not been tested empirically. Another technical challenge is that some digital soil maps cannot be used in quantitative studies or in mod- els of food production or carbon management. Such studies generally require information on the functional properties Soil Water Trees Buildings Crops of soils—such as available water capacity, permeability, Source: Authors, adapted from http://www.crisp.nus.edu.sg/~research /tutorial/optical.htm and Hoffer 1978. and nutrient supply—which many mapping procedures do not capture. Finally, individual soil map units are shown as ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 107 BOX 5.4. Collecting African Soil Data over Time to small-scale farming in most developing countries, although Understand Soil Degradation Trends they are being developed and piloted. Even where technolo- gies are free to the public (like online satellite images), the The African Soil Information System (AfSIS) Project, led resolution is too low to capture soil characteristics on individ- by the International Center for Tropical Agriculture (CIAT), ual plots. Without accurate, affordable soil analysis technolo- collects data that will help address food insecurity and gies, resource-poor farmers are unlikely to adopt sustainable environmental degradation in Sub-Saharan Africa. AfSIS and resource-optimizing farming practices. These practices takes advantage of recent developments in ICT—digital are often more expensive in the short term and are typically soil mapping, remote sensing, statistics, and soil fertil- more labor intensive. Finally, disseminating knowledge about ity management—to analyze alternatives for protecting soil management and farming practices is challenging. Soil and rehabilitating soil. The project also tests a variety science is complex. Soil restoration activities vary based on a of farming techniques in an effort to discover the most diverse set of properties and the agroecological system. Even effective methods to suit a wide range of conditions and digital soil maps that create opportunities for soil assessment situations. The soil map website and mobile networks at the local level will require major dissemination and training help to ensure that the data collected can reach the com- efforts by extension staff and other stakeholders. plete spectrum of people involved in farming in Africa. One objective of the AfSIS research, therefore, is to These challenges are being overcome as technologies develop a baseline—an overview against which future advance. For example, GlobalSoilMap.net (along with others) results can be compared—using standardized tests and is compiling data on digital soil properties around the world procedures. By applying an agreed-on process of sam- into a comprehensive global map, providing access to a con- pling and analysis, scientists can build a comprehensive sistent set of soil functional properties that define soil depth, picture of soil health and degradation in an area of Sub- water storage, permeability, fertility, and carbon (information Saharan Africa covering 42 countries and more than needed for more quantitative studies). Placing maps online 18 million square kilometers. helps address some of the challenges related to dissemina- tion and smallholder relevance. GlobalSoilMap.net can be It is well known that farmers in Africa typically use little used in a variety of ways to suit a range of purposes: users fertilizer compared with farmers in the rest of the world. can view and manipulate the data online (for example, they One important initiative in AfSIS investigates methods can compare soil patterns with satellite imagery or land-use farmers can use to improve the fertility of their soils. The maps) or compose and print local maps by combining several trials compare the effectiveness of different fertilizers sources of online data (soil, climate, terrain, and infrastruc- used on a range of soils, the rate of fertilizer application, ture, among others). Development partners, soil scientists, and the integration of leguminous crops in rotations. and governments then have a firm basis for formulating poli- AfSIS information will also be used in a wider interna- cies on land use and can share this information with farmers, tional effort to produce a digital map of the world’s soil so that they can make management decisions such as how resources (the Global Digital Soil Properties Map Initiative). much fertilizer to apply. Scientists from soil information and agricultural develop- ment institutes in Mexico, Canada, and the United States work with the AfSIS team to produce the global map. NITROGEN MANAGEMENT Sources: AfSIS 2009; ICT Update, “Farming From the Ground Up: In addition to digital soil maps, which are useful over larger Scientists Use the Latest Technology to Produce a Digital Soil Map of Africa,” April 29, 2010 (http://ictupdate.cta.int/en/Feature-Articles/ areas, nitrogen-sensor technologies are used to manage Farming-from-the-ground-up, accessed July 2011). nutrients and prevent the overuse or underuse of fertilizer at the level of a single field and crop. Ineffective use of nitrogen fertilizers can limit crop biomass production and diminish car- discrete polygons with definite boundaries. The data used bon content in the soil. Conversely, optimal nutrient manage- in polygon maps are difficult to integrate with other forms ment raises yields, improves soil health (including soil carbon of data, which are grid-based (like satellite images and digi- storage capacity), and maximizes the cost-benefit ratio. An tal elevation models) (Hartemink et al. 2010) especially important consideration for smallholders is that reduced or more accurately timed fertilizer applications Social and financial challenges remain as well. Detailed yet can lower the cost of investing in fertilizer (see “Improving inexpensive soil analysis tools are not widely available for Nitrogen Fertilization in Mexico”). I C T I N AG R I C U LT U RE 108 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T A key component of soil management is to maintain appro- developed by the same company, is another example of priate amounts of nitrogen in the soil to optimize crop sensory technology for nitrogen. This portable device, using growth and yields. Under certain weather conditions and no subsidiary equipment, measures the chlorophyll content in farming practices, nitrogen applied as fertilizer, which is the leaves of cereal and potato plants to monitor the need for highly soluble, can be lost from the soil. Successful nitro- nitrogen. N-tester is being piloted with high-value, nitrogen- gen management delivers enough nitrogen to the crop to demanding crops in a range of countries throughout Northern optimize yield and profitability while minimizing losses to Europe, Southern Africa, and North America. water and air. The timing, rate, and method of fertilizer application largely determine this optimization (Scharf and The tools used for nitrogen-sensor technology have similar Lory 2006). Over the years, agronomists have established challenges to those of digital soil technology. Databases and how much nitrogen various crops require. Using these information support systems have been established to raise measures, along with data collected from digital soil maps awareness and disseminate information to smallholders, and other soil data, farmers can apply the right amount of but widespread access is limited by the extent of network nitrogen at the optimal time to maximize crop performance. infrastructure and costs. Increasing the opportunity for com- munication among various stakeholders involved in farming Farmers in developed countries use technologies that measure (such as input dealers and extension agents) could improve nitrogen levels and determine rates of fertilizer application. the spread of information. Evidence shows that sensors like the Yara N-Sensor (http:// www.yara.co.uk/fertilizer/index.aspx), which measures light SOIL CARBON SEQUESTRATION IN AGRICULTURE reflectance from vegetation and adjusts fertilizer application accordingly, can increase yields by up to 10 percent over stan- The amount of organic carbon present in soil depends on water dard farm practices while reducing fertilizer costs and minimiz- availability, soil type, and other features. A primary factor affect- ing environmental losses (image 5.1). N-tester, a technology ing the soil’s carbon content is agriculture. Soil carbon in forests, crop land, or grazing pastures increases or decreases depend- ing on inputs that are applied, rates of deforestation, and farm- ing practices. In recent decades, producers’ poor land manage- IMAGE 5.1. Nitrogen-Sensor Technology ment practices have reduced soil carbon content. When soils are tilled, organic matter previously protected from microbial action decomposes rapidly and accelerates erosion and degra- dation. Improved farming practices like leaving crop residues in the field after harvest and no-till (where seed is planted without plowing) maintain soil carbon at higher levels (Lal et al. 2004),3 but these practices are not widespread. No-till is prac- ticed on only 5 percent of the globe’s cultivated land (Derpsch and Benites 2003). The overwhelming majority of vulnerable regions are those with lower organic carbon pools (figure 5.2). High levels of soil organic carbon are crucial to agricultural productivity and environmental conservation. Studies found that increasing the pool of soil organic carbon by 1 x 109 picograms of carbon per hectare can boost yields 20–70 kilo- grams per hectare in wheat, 10–50 kilograms per hectare in rice crops, and 10–20 kilograms per hectare in bean crops (Lal 2010). Despite rapid depletion of soil organic carbon, projections show that carbon can be restored to about 60–70 percent of natural levels. A calculation relevant to developing countries and poor producers is that they could grow up to 3 These practices incur some costs, especially in the short term. More fertilizer may be needed before soil organic carbon increases. Similarly, crop residues that are used for fuel or feed Source: Yara International ASA 2004. will no longer be available (Lal et al. 2004). ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 109 FIGURE 5.2. Organic Carbon, Share in Subsoils Source: FAO. 40 million tons of additional food grain if they increased soil in agricultural land. The variability of sequestration is huge: carbon by only 1 ton per hectare. This productivity increase observed rates of sequestration range from 0 to 150 kilograms would be complemented by reductions in climate change of carbon per hectare in dry climates and 100 to 1,000 kilograms and greenhouse gas emissions (World Bank 2010a). of carbon per hectare in humid areas (Lal 2004). This immense variability implies that monitoring and verification technolo- For these reasons, increasing soil carbon in farmers’ fields, gies are essential to carbon sequestration efforts, especially especially smallholders’ fields, is integral to agricultural sus- those that result in financial exchanges, like carbon markets. tainability and productivity. Soil carbon sequestration, or the ICT is currently used to measure soil carbon sequestration for process of transferring carbon dioxide from the atmosphere large land spans. Digital soil maps are created (either through into the soil through crop residues and other organic solids remote sensors, satellite images, or models) to measure and (like mulch), is one technique to restore carbon levels in soils. monitor changes in carbon content. In-field assessment meth- This transfer helps offset emissions from fossil fuel combus- ods, neutron-scattering techniques, and satellite-normalized tion and other carbon-emitting activities while enhancing difference vegetation indexes (which use different tools to soil quality, water-holding capacity, and long-term agronomic measure carbon pools from afar), as well as microwave sen- productivity (World Bank 2010a). Carbon sequestration can sors like JERS or ERSSAR, can measure soil carbon and other be accomplished through farming practices and land man- chemical components in the soil. Computer-based models are agement systems that add high amounts of biomass to soil also employed to predict soil carbon content (Lal 2010). Most while enhancing soil fauna activity. of these methods and technologies, along with free satellite Various technologies have been developed in recent years to data (such as that available through Landsat), are not detailed measure, monitor, and verify carbon content and sequestration enough for small-farm monitoring. I C T I N AG R I C U LT U RE 110 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T Despite the growth in sensor and information technologies for reduces their ability to participate in simple soil restoration carbon sequestration and restoration, significant barriers pre- and conservation techniques. Recent World Bank projects vent smallholders from being included in efforts to monitor and have shown that robust, clear, and cost-effective accounting increase carbon sequestration. They include the poor develop- methods that outline how carbon is measured and quantified ment of carbon markets to date, especially in agriculture, and are essential if projects designed for smallholders are to func- the continuing problem of developing methods that smallhold- tion well, as is transparency in monitoring to assure farmers’ ers can truly access and afford. See the discussion below. participation (World Bank 2010a). In the future, development institutions can focus attention on reducing the costs of ICT for soil carbon (using coarse-to-medium resolution satellite Poor Carbon Market Development, Especially in Agriculture imagery) (Smukler and Palm 2009), improving land rights and Carbon markets were designed to provide incentives for enforceability (which will help regulate carbon trade), and carbon sequestration and good farming practices. Since determining how financial incentives might be created (for 2002, developed countries and firms (primarily in Europe) example, through local carbon markets or payment for eco- have traded carbon credits (Lal 2004). Trading carbon cred- system services) to ensure that smallholders can participate its can encourage firms and farmers to increase soil carbon (box 5.5) (World Bank 2010a). content and switch to more environmentally conservative systems. Despite major strides in carbon market develop- ment, serious challenges remain. A variety of economic and scientific factors make it difficult to set prices for carbon BOX 5.5. Rewarding Farmers for Carbon Sequestration credits, and assessing the biological and ecological rela- in Kenya tionship between carbon storage and climate change is even more daunting (Lal 2010; World Bank 2010a). Even The Kenya Agricultural Carbon Project is one of the first more important, agriculture and livestock are not included examples of a soil carbon project that not only addresses routinely in global carbon emissions treaties, which reduce issues like food security and climate change but also even large firms’ incentives to participate in carbon seques- provides financial assistance to rural dwellers. Kenya is tration. The Clean Development Mechanism of the Kyoto a prime candidate for carbon sequestration. Agriculture Protocol does not include land management, which prohib- contributes to over 50 percent of gross domestic prod- its carbon in agricultural soils from being traded in the Kyoto uct and one-third of the country’s population lives on compliance market (World Bank 2010a). Current efforts to ecologically fragile arid land. include agriculture in carbon trade institutions and policies Funded by the World Bank and designed by the Swedish will create financial incentives for governments, firms, and Cooperative Center–Vi Agroforestry, the project, located farmers in developing countries to use soil carbon seques- in Western and Nyanza Provinces, addresses most issues tration technologies. faced on arid land. On approximately 45,000 hectares of land, farmers adopt good practices that result in carbon Accessibility and Affordability of the Technology sequestration. These practices are expected to generate for the Poor 60,000 tons of carbon dioxide each year, increase yields, and allow smallholder farmers to access the carbon mar- Beyond poorly functioning carbon markets, other technical and ket and achieve supplemental income through payment social barriers prevent smallholders from adopting practices of environmental services. Extension agents disseminate that increase soil carbon levels. As noted, the types of ICT technical knowledge, monitor and account for carbon used to monitor, report, plan, and verify the amount of carbon sequestered, and build capacity in farmers’ organizations. sequestered are not appropriate for small farms. Monitoring sequestration is easiest when the potential is large, or around Once carbon is sequestered, the credits will be sold to 100,000 carbon tons (Bajtes 2001). This limitation is a major the World Bank’s BioCarbon Fund. Project developers challenge for carbon sequestration, given that “90 percent of expect that improved practices will result in an additional the potential for carbon capture can be found in the develop- US$350,000 in 2011 for the communities involved. The ing world, where land managers are largely poor farmers on project also promotes improved carbon management small plots of land” (Smukler and Palm 2009,1). policies and strategies that improve agriculture produc- tivity and sustainability at the national level. Most available ICT not only inhibits smallholders from par- Sources: World Bank Ghana Office 2010; World Bank 2010d. ticipating in carbon markets (or their development) but also ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 111 PERFECTING THE FARM THROUGH PRECISION raw data to a base station in the network, which transmits the AGRICULTURE data to a central computer that performs analysis and extracts Site-specific information that allows producers to make man- meaningful information. The base station acts as a door to the agement decisions about discrete areas of the field is called Internet (typically a local area network), providing operators precision farming or precision agriculture. Determining soil with remote access to the WSN’s data (Dargie and Zimmerling and crop conditions to improve whole-farm efficiency—while 2007). Because the networks can have multiple sensory minimizing impacts on wildlife and the environment—is the devices, the data can contain information on soil, climate, crux of precision farming. It has been used successfully in chemicals, and other relevant subjects. The wide application of many developed countries and has the potential to change WSNs allows them to be used not only in managing agriculture agriculture dramatically in this century. but also in testing water quality, managing disasters, detecting volcanic activity, and conducting environmental evaluations. A variety of tools can be used in precision agriculture. GPS, satellites, sensors, and aerial images can help to assess varia- These networks have several key features. First, WSNs have tion in a given field. Farmers can match input applications and both active and passive sensors. Active sensors release a agronomic practices with information received from these signal to detect a physical phenomenon like seismic activity types of ICT. Precision agriculture has been applied to many and radar. Passive sensors, which transform a physical phe- types of agricultural produce (hay, pasture, fruit, and cereals, nomenon into electrical energy, can detect a vast array of phe- for example) and to fisheries under many different climatic con- nomena, including temperature, humidity, light, oxygen, and ditions. Many of these efforts have been limited to large-scale chemicals (Dargie and Zimmerling 2007). Once sensors (for farming because of the significant investment required, but example, temperature and soil moisture) are selected, node applications under smallholders’ conditions are gaining visibil- locations are needed. Node density in developing countries ity. Remote sensors, sonar-based technology, and other types should be scarce to better guarantee network connectivity for of ICT can also improve aquaculture and livestock production. each node, reduce maintenance, and improve the network’s reliability (though it will limit field-mapping techniques). In addi- Essentially, precision farming provides a framework of infor- tion, because low-income countries often experience poor mation for farmers to make management and production network and telecommunications connectivity, nodes will decisions. It can answer questions pertaining to land prepa- often require a “buffer,” where data can be rerouted or stored ration (including tillage depth and type, residue management in another node if connection to the base station fails. If an and organic matter, and reductions in soil compaction); seeds active node fails to transmit data to the base, the network will (planting date and rotation, density and planting depth, culti- “wake up” the closest neighboring buffer node (Kabashi et al. var selection); fertilizers (nitrogen, phosphorous, potassium, 2009), providing a “multihop transmission” (see figure 5.3 for and other nutrients, as well as pH additives, application a basic illustration of the process). methods, and seasonal conditions); harvest (dates, moisture content, and crop quality); and animals and fisheries (pasture The design and implementation of WSNs requires a number management, animal tracking, and school identification). of important features. The nodes should monitor the field(s) continuously and for a significant period—it is best if main- Precision Farming through Wireless Sensor Networks tenance is not required for at least one cropping season (or Consistent advances in microsensing, smaller devices, and 4–6 months). The nodes should cover a wide area, be small wireless communication (Kabashi et al. 2009) have resulted to prevent animal and human interference (like stealing), and in new, comprehensive technologies that offer even more tolerate harsh environmental conditions like monsoons and consistent and reliable systems for smallholders and policy extreme heat. Self-organization is also important: The net- makers alike. Wireless sensor networks (WSNs), which com- work should automatically detect removed or newly arrived bine many kinds of sensory data in one location, are some of nodes and adapt the messaging route (Depienne 2007). the most innovative technologies available for farming and agricultural planning. With the right components, these net- WSNs offer extensive benefits to farmers producing plants works can form knowledge management systems, research and animals. Agriculturalists can detect problems at an early databases, and response systems that can guide local com- stage and use more precise applications of fertilizer, water, and munities and governments in agricultural development. pesticide. Pastoralists can use WSN to monitor grazing land productivity. Placing wireless nodes in pastures allows farm- A WSN is a group of small sensing devices, or nodes, that ers to move animals according to environmental indicators like capture data in a given location. These nodes then send the soil moisture (see image 5.2 and IPS “Monitoring Livestock to I C T I N AG R I C U LT U RE 112 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T FIGURE 5.3. Wireless Sensor Network (WSN), IMAGE 5.2. WSN Can Help Monitor the Quality of Distributed Collection Architecture Pastures DRK GPRS Server/KMS GPRS Source: Curt Carnemark, World Bank. sense of the data is pertinent to the design. The data pro- Bluetooth duced can be used to improve crop management strategies and even develop knowledge management systems where best practices, crop disease identification, and planting tech- niques can be disseminated to smallholders. It is important to note, however, that although battery-operated nodes can WSN function in areas with low power connections, changing bat- teries in remote areas may prove difficult. Sleep settings and well-designed energy-conserving hardware can help prevent frequent battery changes (Dargie and Zimmerling 2007). Source: Kabashi et al. 2009. Note: DRK = Distributed Resource Kits GPRS = General packet radio service; KMS = Knowledge Management System. Wireless sensors can also be used in aquaculture. Though concentrated in developed countries, the use of under- Prevent Pasture Damage,” in Topic Note 5.1). WSNs can also water wireless sensors has great potential for develop- be used to manage irrigation and even to measure water quality. ing countries. Real-time information is crucial for effective and profitable aquaculture. Akvasmart (see http://www Governments and development partners also benefit finan- .akvagroup.com), a Norwegian firm specializing in commer- cially from WSNs. The technology is fairly cheap; some cial fish farming, uses a wide variety of ICT tools, including units cost as little as US$100 (Dargie and Zimmerling 2007). sensors. Sensor systems can monitor oxygen, tidal currents, Developing countries often experience power deficiencies, temperature levels, fish behaviors, and water conditions. but nodes that operate on batteries and alternative energy Interestingly, Doppler pellet sensors with a built-in camera can sources do not need electricity. Data are collected more eas- detect uneaten food in fish cages (figure 5.4). With this infor- ily. Whereas traditional methods of collecting agricultural data mation, signals from the sensors can stop the feeding, allow- for national planning rely on occasional data logging by human ing for more specific care and feed purchase. The sensors can operators, WSNs can collect continuous data with minimal also adapt to the accurate feeding rate of the fish over time. human interaction. Even though some types of ICT, like mobile phones and transceivers, can collect information faster in the Wireless sensors in water, just like those on land, can be coupled field, they often have trouble cooperating with other software with other cameras for more precise readings. Akvasmart offers or Internet servers (Fukatsu et al. 2004). WSNs integrate the a video image system called the Vicass Biomass Estimator that Internet into the software, making the data more user friendly measures the height and length of the fish in the pond. These and accessible. figures can be used to estimate the weight of the fish. Other camera systems can be placed at the surface or underwater. Data organization is vital to the output of WSN as well as other Monochrome cameras monitor the feeding process by “look- remote technologies. If countries want to use WSN data ing up” from the bottom. Color cameras can monitor feeding to construct yield models or predict climate shifts, making and inspect the pond or cages and surrounding environment. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 113 FIGURE 5.4. Akvasmart Doppler Pellet Sensor Network Doppler Pellet Sensor flow chart Doppler CSU AkvaControl Feed System Source: Akvasmart (http://www.akvasmart.com/index.cfm?id=205626). Note: CSU = Cage Sensor Unit. Remote access cameras can tilt, zoom, and pan according to Agricultural information is typically captured spatially, making the interest of the fish farmer. Each of these camera and wire- it more convenient to handle on a regional scale. GIS technol- less sensor systems can be accessed from a personal computer ogy is promising because it allows for a more specific focus. and in some cases the Internet, where the data are collected. Variable rate technology has helped to identify weed infesta- tions and water stress in areas where crop pest levels are high, which improves the targeting of chemical applications and Precision Farming through Satellite Technologies reduces waste associated with conventional blanket spraying Precision farming through satellite technology utilizes three (Munyua 2007). In addition to the potential productivity gains technologies: GPS (which can position a tractor within and cost savings, precision farming through satellite technol- a few feet in the field), GIS (which can capture, manage, ogy enables governments to study how agricultural practices and analyze spatial data relating to crop productivity and affect the ecosystem and to develop better regulations. field inputs), and variable rate technology (which provides site-specific, “on-the-fly” estimates of field inputs for Once data are collected through GIS, scientists can interpret the site-specific application). The three types of ICT combined images and analyze the soil and crop conditions to achieve bet- provide information that allows producers to apply inputs, ter results. Although satellite imagery cannot detect soil quality such as fertilizer and insecticide, precisely where they are directly as sensors can, it can record soil properties like light needed (figure 5.5). reflections and color. As crops start growing, precise pictures of the crops are captured more efficiently. The condition of the fully grown plants can then provide a clearer picture of the qual- FIGURE 5.5. Precision Farming through Satellite ity of the crops and what they require for a successful harvest. Technologies Based on soil and crop conditions, farmers can estimate the precise amounts of seeds, pesticides, and fertilizer they need; organize the distribution of inputs; plan which crops to plant in Satellites which areas; and make new investments. Knowing the size and shape of fields can also help rural communities plan for GPS + GIS future developments and investments like mechanization. Small, fragmented, or awkwardly shaped fields are difficult to work with a tractor or even animals. Above a certain minimum field size, it becomes cost-effective to use a tractor. Precision Automated machine farming provided through satellite imagery can determine this threshold before a community invests in new equipment. If an Large farming area area is suitable for mechanization, the benefits can be exten- sive. A GPS system that controlled tractor steering in Sudan Source: Adapted from GIS Development Net. cut planting time on the farm by 60 percent (Munyua 2007). I C T I N AG R I C U LT U RE 114 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T Precision farming must also rely on an information dissemi- and development partners to mitigate the effects of climate nation process. Many rural areas in developing countries are change and environmental degradation on soils. With the isolated from sources of new agricultural information; not expanding reach of ICT, achieving this goal is more likely in surprisingly, farmers in these areas use few modern technol- both developed and developing countries, but challenges ogies. ICT is beginning to play an important role in providing remain in using ICT to improve soil and land health. They advisory services in real time to farmers, which helps them are discussed in the following paragraphs, along with some plan and manage production, postharvest activities, and means of preventing or overcoming them. marketing more efficiently (see Module 9). Online informa- tion, consultation, and land suitability maps with Web-based To begin with, these technologies are relatively new, even in systems can play an important role in improving and updating developed countries, and their potential is just being realized knowledge for producer organizations. in developing countries. National awareness of the impor- tance and benefits of soil fertility takes time to develop. As Management and information-sharing tools are also neces- with carbon sequestration, using ICT to improve and maintain sary for effective precision farming based on satellite tech- the fertility and productivity of land will require new legisla- nologies. RiceCheck and the online knowledge bank at the tion and policies outlining their use and providing incentives International Rice Research Institute (IRRI) (http://irri.org to achieve their benefits. Appropriate legal and regulatory /knowledge/training/knowledge-bank) are two of the most frameworks, monitoring and verification systems, and liabil- advanced knowledge management tools in rice production ity, access, and property rights laws and regulations, such as today. Collecting, analyzing, and sharing information on regulations on carbon limits in some countries, are necessary individual plots has been difficult, but through RiceCheck, to make significant, national progress. Though not all technol- farmers can now monitor crops, have an online group meet- ogies require such stringent legal frameworks, government ings (often with agronomists), and compare their yields to involvement—specifically at the national policy level—often regional benchmarks for high yields (for a description of raises the visibility and adoption rates for new types of ICT. these benefits in Malaysia, see box 5.6). Through IRRI’s site, connected farmers can also make a checklist for their daily Testing methods for soils vary and are still in development. activities and review plans for the entire growing season. For this reason, results are not always reliable and may be difficult to harmonize. Continued research—particularly in poor countries, where research is typically limited—will help LESSONS LEARNED to address these challenges. Developing countries also lack This topic note primarily reviews soil and land productivity, the financial footing and human capital to use expensive particularly for the planning and preplanting stages of the technologies that require reliable operation and maintenance, production cycle. Correcting past damages and ensuring even more so in harsh conditions. Strategic and long-term future yields, however, will require farmers, governments, investments are needed to sustain improvements in soil and land productivity, especially if they are used in rural areas, BOX 5.6. Web-Based GIS for Paddy Precision Farming, where farmers who may be required to maintain ICT devices Malaysia have little time to do so. In Malaysia, an interactive, Web-based GIS provides Farmers may not have a contemporary perspective on the information for precision farming and mapping in the environment because they have received little new informa- Sawah Sempadan rice-growing area in Tanjung Karang, tion. They may not have access to the country’s environ- Selangor (Che’Ya et al. 2009). The system allows farmers mental regulations (for example, prohibiting the burning of to access information about rice cultivation in their area. charcoal) or export requirements (such as limits on pesticide Because it uses open source software, the system is residues). Extension education and campaigns using types of cost-effective for users. Farmers can print variable-rate ICT like radio will help farmers to make decisions related to fertilizer application maps and historical data about yield environmental policies and strategies. per paddy lot in previous seasons. This helps farmers Despite the benefits of soil technologies, smallholders have analyze and reflect on the best strategy for the coming limited access to credit to use them. Even if they have access growing season. Farmers can share information, espe- to soil maps or nitrogen estimates, their adoption or adjust- cially on fertilizer recommendations. A Web presence ment rates might be low. The inputs required to change prac- also allows policy makers to access rice information. tices are often out of reach in poor rural areas. New credit ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 115 insurance schemes or financial rewards (like carbon markets) When the ICRISAT team acquires a very-high-resolution may reduce these monetary concerns. image (VHRI), they use computer software to enhance it, adding extra layers of information, and analyze data that Soil ICT devices are not only new but complex. Farmers will would be useful to farmers, such as variations in soil fertility, require training and education to learn how to use them. land size, and shape. Although a single VHRI image costs Electronic education (e-learning) is an option, but infrastruc- US$1,000–US$1,500, this method of analysis is often still ture must be considered. In some cases, technologies func- cheaper than visiting every individual farmer’s field to collect tion well with low bandwidth (WSNs are one example), but samples. Partnering with local NGOs and extension officers, in others they do not (the RiceCheck Web interface is an the SIBWA team visits the project sites to verify their find- example). The productivity goals and the technologies used to ings with the farmers. ICRISAT further analyzes the images meet them must match the IT capacity in the focus location. using feedback from field research to build a database that they can use to develop an accurate map of each farm. Finally, the lack of institutional capacity poses other challenges for increasing soil and land productivity. Governments that want SIBWA partners translate the soil and image information into to incorporate the use of carbon markets or digital soil maps local languages and take the detailed maps back to individual into agricultural policy will have to make major adjustments and farmers, who can use them to plan and manage their crops investments in human resource capacity. Development part- for the coming season (image 5.3). The maps show areas of ners like the World Bank can support some of these efforts. low or high fertility inside each field. With an overview of soil and crop conditions, farmers can organize the distribution of fertilizer throughout their fields and estimate which crops will produce the highest yields. The SIBWA team works with the INNOVATIVE PRACTICE SUMMARY Seeing-Is-Believing Project Improves Precision farmers to determine the area of each field, making it easier Farming for farmers to calculate the amounts of seeds, pesticides, and fertilizer required for each field. Small-scale farmers in West Africa are experiencing unpre- dictable changes in their agricultural land. Soils are infertile in Another advantage of VHRI is that it shows the direction of fur- many areas, reducing agricultural productivity and spurring fear rows on the field and areas where farmers can plow along the and uncertainty about future livelihoods among farmers. In the contour lines of the land. Using this imagery, farmers monitor past few years, many West African farmers have abandoned whether they were following the contour lines accurately and their land, which had been in their families for generations. efficiently to reduce soil erosion. SIBWA also involved local NGOs specialized in technology and extension services in It is imperative that smallholders obtain the knowledge about each community to help farmers make use of the data. changing soil and crop patterns that can help them manage their farms. The Seeing-Is-Believing West Africa (SIBWA) IMAGE 5.3. Farmers Learn to Use Images of Their Project has been assisting farmers with accurate satellite Farms to Improve Productivity and information and imagery of their farm fields to help them Resource Management improve their agricultural practices. In June 2009, SIBWA started working with six farming communities in this region—three in Mali, and one each in Ghana, Burkina Faso, and Niger. SIBWA is funded by the Bill & Melinda Gates Foundation through AGCommons, with supplementary funding from the United States Agency for Internal Development and Germany’s Federal Ministry for Economic Cooperation and Development (CODE-WA project). Led by scientists at the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), the SIBWA team pro- vided farmers with very-high-resolution satellite images (such as those on displayed on Google Earth) of their land. To get a more precise picture of soil fertility, scientists can analyze the images when the crops are at their peak growth stage. Source: Work funded by AgCommons, a program executed by the CGIAR. I C T I N AG R I C U LT U RE 116 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T Data from projects like SIBWA can be used to develop growth (I. Ortiz-Monasterio, personal communication). Though the and yield models by various means. Some rely on computer cost of the diagnosis is expensive for smallholders, they simulation and include weather-related variables; others are needed significantly less fertilizer to maintain yields. Farmers statistical estimation models based on multiple regression who did not use the sensor applied 219 kilograms of nitro- equations. While no single model has proven satisfactory in gen per hectare for yields of 6.92 tons per hectare; those all conditions, both low- and high-resolution types of imagery who used the sensor applied as little as 158 kilograms of have benefits extending beyond the decisions of individual nitrogen per hectare for yields of 6.91 tons per hectare. For farmers. Low-resolution yield prediction can benefit food a 100-hectare farm, these savings add up to approximately importers and exporters as well as international and govern- US$7,500 per harvest (CIMMYT 2007). ment agencies concerned with global markets and prices. In The technology not only reduces costs but also lessens envi- this regard, data collected from imagery in localized projects ronmental damage: Nitrogen that washes into the ocean or will be useful in years to come. Although it remains too early local streams can harm ecosystems. CIMMYT is now working to analyze the effects of SIBWA, the team expects that the on a prototype pocket sensor that costs US$100–US$200, farmers will use the data when planning for the new growing which would facilitate more affordable nitrogen testing ser- season (Traoré 2010; ICRISAT 2010). vices for farmers in developing countries (I. Ortiz-Monasterio, personal communication). INNOVATIVE PRACTICE SUMMARY Improving Nitrogen Fertilization in Mexico INNOVATIVE PRACTICE SUMMARY The International Maize and Wheat Improvement Center Monitoring Livestock to Prevent Pasture Damage (CIMMYT) recently piloted a nitrogen sensor on 174 wheat Animal production in Australia traditionally required animals plots in Mexico’s Yaqui Valley, in collaboration with the State of to be restrained to a particular location. The cost of installing Sonora, Oklahoma State University, and Stanford University fences and maintaining them constitutes around 30 percent (image 5.4). A handheld device with an infrared sensor cap- of the cost of rearing one animal. Controlling animal location tures light to measure biomass and red wavelengths to mea- implies that farmers need to know about pasture conditions, sure chlorophyll content. These two measures determine because overgrazing leads to land erosion and nutrient deple- how much nitrogen a plant requires and thus the appropriate tion. With this in mind, researchers implemented a static and amount of fertilizer to apply (CIMMYT 2005). mobile node and camera network to remotely monitor the In Sonora, farmer-advisers purchase the sensors for US$5,000 condition of grass throughout a field.4 Using solar panels, and charge 7 pesos per hectare to diagnose farmers’ crops which generate much higher energy outputs compared to what is needed, the team observed soil moisture, greenness level, grass height, and grass coverage. IMAGE 5.4. Infrared Sensor Technology Increases the Cost-Efficiency of Nitrogen Fertilizer Consisting of an Atmega 128 microcontroller at 8 MHz, a Applications in the Yaqui Valley Nordic NRF903 radio transceiver with a bit rate of 76.8 kilobits per second, a temperature sensor, and a soil moisture sensor, the commercially available static node (ECH20 capacitance- based) takes readings every minute with a ±2 percent error rate. Pictures of the pasture, troughs, and gates help to guide herdsmen in cattle movement. Additional mobile nodes con- nect directly to the cattle (around their necks). These nodes measure the livestock’s speed and turning rate, which improves tracking capacity. With these two technologies, scientists can build generic models of herd movement so that herdsmen can better man- age resources in smaller pastures. Though the technology is focused on developed countries, these types of ICT hold great potential for developing countries. Source: Iván Ortiz-Monasterio, CIMMYT. 4 This section draws on Wark et al. (2007). ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 117 Topic Note 5.2: PREVENTING YIELD LOSSES THROUGH PROPER PLANNING AND EARLY WARNING SYSTEMS TRENDS AND ISSUES efficiently use the total amount of pesticides employed in crop ICT can help to prevent and reduce losses in crops through protection. Farmers often are unaware of or cannot accurately well-planned investments and disaster warnings or time- assess plant diseases, which may reduce agricultural produc- sensitive alerts. Water management and disease or pest tivity and raise costs if pesticides are overused. Concerns for prevention are crucial to increased productivity. Advances in animal health are similar. Herdsmen and fishermen spend ICT—such as GPS, GIS, mediation software, mobile phones, resources and time treating sick animals or identifying disease and satellite imagery—have improved smallholders’ ability to outbreaks. Using various types of ICT, producers can better adjust farm strategies and reduce risk. At the same time, identify, track, and protect their crops, animals, and livelihoods. these advances allow governments and development part- One example involves fishing communities, which face major ners to better monitor farm productivity, make more accurate challenges in both wild and managed fisheries. They can use projections, and plan better for the future. ICT to prevent fish diseases and protect local fishing grounds Water is a primary topic in this thematic note. Although water from unwanted visitors. Illegal, unregulated, and unreported is scarce and is becoming more so due to climate change, fishing poses serious obstacles to sustaining fish production. many water resources in developing countries are simply not Tools like GPS and mobile phones help fishers and govern- exploited. In fact, the vulnerability facing agriculturalists in ments locate poachers and report abuse (image 5.5). The South most of Africa is not the result of more variable rainfall but of Pacific Forum Fisheries Agency, for example, now has a vessel failure to access the water that is available. Only 2–3 percent monitoring system, which observes fishing grounds throughout of Africa’s water is used (Woodhouse 2009). Despite current the area, identifying and fining illegal fishers. The Sustainable efforts to tap water resources and adapt to climate change, Fisheries Livelihoods Program has helped Guinean fishing competition for water for household and industrial use will communities perform similar policing; local fisherman used steer water away from agriculture over the next few years in hand-held GPSs to calculate the position of poachers and then almost 60 percent of the world’s most vulnerable countries radio them to the coastguard. Benefits of these technologies (Ruttan 2002). Weather data, along with improved irrigation improve productivity indirectly by protecting the fish population. management and system engineering, are more important In Guinea, for example, incursions by industrial criminal vessels than ever. went down from 450 to 81 after just two years (FAO 2007). This note also discusses disease and pest control. Pests and Protecting farm animals from disease and other ailments also pathogens continually evolve, making it particularly difficult improves through ICT (see IPS “Radio Frequency Identification for small-scale farmers to increase productivity. Without inputs like pesticides and the knowledge to use them cor- IMAGE 5.5. Mobile Applications Help to Monitor rectly, pests and diseases reduce global harvests by upward and Protect Fishers of 30 percent for maize, rice, and potatoes (Oerke 2006). ICT devices like mobile phones and radio frequency identification technology are making it easier for farmers to know which diseases or pests to watch for and how to handle them if they are found. Pest eradication takes national and collective efforts. With ICT, governments find it easier to reduce crop losses from flies or rodents and livestock losses from dis- ease like bovine spongiform encephalopathy (less formally known as “mad-cow disease”). PREVENTING DISEASE AND PEST DAMAGE Plant protection is important to save crops from diseases and pests. Increasingly, ICT is used to help farmers reduce or more Source: Edwin Huffman, World Bank. I C T I N AG R I C U LT U RE 118 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T to Prevent and Treat Cattle Disease in Botswana.” in Topic BOX 5.7. Crowdsourcing Prevents Cassava Losses Note 5.2). Sensors and other remote technologies can be in Tanzania implanted in an animal, providing herdsman with the exact loca- tion, health, and situation of livestock like cows, pigs, or sheep. In Tanzania’s Lake Zone, farmers from 10 districts who In addition to enabling easier identification and tracking, in the participate in the Digital Early Warning Network have future, some instruments may offer animal response systems. been trained to recognize symptoms of cassava mosaic disease and cassava brown streak disease. Armed with ICT is now being used in integrated pest management systems mobile phones, farmers “crowdsource,” or send out to improve farm management in a variety of ways. The Low monthly text messages, to researchers about disease Frequency Array Project (http://www.lofar.org) piloted in the incidence and receive disease control advice in return. Netherlands uses sensors to monitor and treat potato crops When more than 10 percent of the members of a group at risk for the fungus Phytophthora infestans, which causes spot a disease that was not present previously or has late blight. Because the development of late blight depends increased in prevalence, the project team visits the area heavily on climatic conditions (OECD 2009), capturing climatic to verify the information and advise farmers what to do. conditions like humidity and leaf temperature can help farm- Each group of farmers—60 overall—is given a topped-up ers prevent an onset of the disease by optimizing fungicide phone card to text researchers. They meet monthly to applications when climatic conditions warrant it. The project discuss observations and send the text messages. The used three instruments: sensor nodes, a server, and a decision network is part of the Great Lakes Cassava Initiative, support system. One hundred and fifty sensor nodes, called which aims to improve the livelihoods of more than a TNodes, send soil information every 10 minutes through a million farmers in six countries of the Great Lakes region TinyOS operating system to the server where data are stored by tackling issues that affect cassava yields. (Baggio 2004). Users can access this information directly, or Source: Ogodo 2009. receive texts or emails from the linking decision support sys- tem (LOFAR n.d.). The decision support system gathers infor- mation from the server along with other meteorological data pest phenology models for 22 insects, 2 diseases, and 2 crop from weather stations to produce maps of the temperature species (Bajwa and Kogan n.d.). Pest alerts and control tech- distribution within fields. The system sends alerts to the farmer niques are announced and shared through social media like that identify the patches of land most susceptible to the fungus. Twitter and email subscriptions. Similar alerts can be carried out through SMS in developing countries (box 5.7). Information technologies are vital for disseminating crop protection advice, but “crowdsourcing,” (using ICT to lever- age widespread collaboration) can prevent diseases from WEATHER FORECASTING spreading in the first place. If sufficient numbers of farmers Since 2000, new types of ICT have given farmers and partners can text information on potential crop disease symptoms to better opportunities to manage climate risk. WSNs and satellite researchers and receive appropriate disease control advice, images capture raw data that can be transformed into informa- researchers can also track and potentially forestall epidem- tion useful for agriculturalists, helping them optimize decisions ics. If farmers or cooperatives have access to the Internet, related to choosing crops (based on water requirements), plant- online bulletin boards or mailing lists can spread informa- ing (timing and planting density), buying inputs, and applying fer- tion on disease incidence quickly. Online decision support tilizer. Climate information can also improve insurance markets. systems5 that link data to possible action, such as the one used in the Low-Frequency Array Agro Project, are becom- Remote sensors are presently the chief source of climate ing more popular because clients require minimal software, data. FAO’s Global Information and Early Warning System which reduces management and distribution costs. on Food and Agriculture tracks data and trends related to food security, price risks, and natural disasters. FAO Additionally, it is useful to link weather information to pest or dis- analysts monitor climate conditions and changes around ease development over time. The Pacific Northwest Integrated the world using four satellites—FAO’s ARTEMIS (Africa Pest Management website, through Oregon State University Real Time Environmental Monitoring Information System), (http://oregonstate.edu/dept/nurspest/), collects temperature Europe’s METEOSAT, the United States’ NOAA (National and precipitation data from 380 weather stations and links it to Oceanic and Atmospheric Administration), and Japan’s GMS (Geostationary Meteorological Satellite). Every 10 days, 5 See http://www.dssresources.com. ARTEMIS and METEOSTAT provide images that help to ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 119 IMAGE 5.6. Satellite Image of Vegetation Changes from 1998 to 2004 (Red Indicates Decreasing Vegetation and Green Indicates an Increase) Source: FAO (http://www.fao.org/giews/english/spot4/sea/index.htm). estimate rainfall for Africa. FAO maintains a database of producers could not obtain weather information on time to these images from the past two decades, which provides cope with conditions that might harm their orchards. (See an opportunity to monitor significant changes in weather the IPS, “Weather Forecasting Reduces Agricultural Risk in over time (image 5.6). GMS produces similar information for Turkey,” in Topic Note 3.1.) Southeast Asia as well as information on crop densities at the subnational level (FAO 2010b). Beyond reflecting past BOX 5.8. Modeling India’s Groundnut Yield through trends and predicting future ones, these satellites and others Climate Information can provide up-to-date forecasts for farmers. These satellite images and others are free on FAO’s website. In India, rainfed agriculture supports more than 60 per- cent of the population. In the semiarid Anantapur region, This proliferation of weather information has made mediation rain typically falls from May to November, yet it varies software extremely relevant to the productivity discussion. significantly from week to week, resulting in frequent For example, MetBroker (http://www.agmodel.org/projects wet and dry spells. If a dry spell occurs at a critical plant- /metbroker.html), software that pulls weather data from vari- ing stage, groundnut yields decrease significantly. ous sources and “hides” the differences between them, is run on a computer permanently connected to the Internet. Attempting to identify the most promising planting times, From 5,000 stations from 14 databases in 7 countries, researchers used the PNUTGRO model to simulate MetBroker averages forecasting data and makes it consis- groundnut growth and yield. The model included veg- tent (Laurenson, Otuka, and Ninomiya 2001). This approach etative and reproductive development, carbon balance, has two benefits: Researchers and modelers can access nitrogen balance, and water balance. The team collected data from various harmonized sources for growth prediction climate data from the Anantapur Agriculture Research models, and farmers can receive accurate, real-time weather Station, which has maintained records since 1962. Using information to make farming decisions. Clients—whether maximum and minimum temperatures, radiation, and farmers or modelers—can request a wide array of climate- rainfall data over three decades, they found that the period related information from MetBroker, including rainfall predic- between July 15 and August 10 is associated with very tion, air temperature, solar radiation, soil temperature, and high yields. Even more important, planting in two addi- leaf wetness (Laurenson, Otuka, and Ninomiya 2001). Some tional periods was also associated with high productivity, mobile technologies permit farmers to access MetBroker suggesting that missing the earlier planting time does not and request information on weather conditions for a certain mean that yields will be low for the entire season. region, specific stations, and for a restricted period, even Like all models, this one is limited: it cannot be used to with low bandwidth. MetBroker provides an option for sum- assess the profits or risks associated with management marizing data as well; users can opt to receive daily tempera- strategies in times of crisis (like the El Niño weather pat- tures instead of hourly ones or receive expert summaries of tern). Nonetheless, analysis of yields associated with differ- weather information instead of complete data sets. ent climatic conditions can help to improve farming strate- gies for specific seasons and raise red flags for potential Another weather forecasting service, this one in Turkey, weather disasters after investments have been made. relies on simple SMS information to help farmers prevent Source: Gadgil, Seshagiri Rao, and Narahari Rao 2002. losses to frost and pests in their orchards. Prior to the project, I C T I N AG R I C U LT U RE 120 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T Mediation software was also essential for modeling ground- service online, he or she can request information and specify nut yields in India (box 5.8). Among other things, the models the method to receive it (via text, email, or recorded voice can help identify the best times to plant to evade drought. message). Eventually, the service will offer climatic informa- tion in Spanish, making it easier for native Spanish speak- Other forms of electronic weather information have potential ers to make interpretations and decisions (Lester 2010). In to increase productivity, primarily by reducing risk. Many of the future, similar types of ICT can be used in rural areas of these systems are being tested in OECD countries. A system developing countries. called eWarning (http://www.landbrugsinfo.dk/Planteavl/Sider/ pl_11_543.aspx) was created through PlanteInfo (www.plant- einfo.dk), a Danish initiative supporting decision making in IRRIGATION MANAGEMENT national plant production. eWarning provides farmers with real- Major water resource constraints and climate change make time weather information sourced by the AgriMeteorological it increasingly important for developing countries to develop Information System and Danish Meteorological Institute. In sound water-use policies and well-functioning, well-managed this particular system, weather information, including precipi- irrigation systems. Innovative water management systems tation and temperature, is divided into 10-square-kilometer and related types of ICT are helping to improve water use plots to provide farmers with specific climatic details on spe- and expand intensive irrigation facilities. Though the number cific plots. of technologies for irrigation is vast, this section focuses on remote sensors, satellite imagery, and GPS cameras. Each In eWarning and other systems, farmers request information of these technologies helps to connect the farmers to irriga- through SMS in two forms. Push-type messages are regular, tion infrastructure and guide governments in designing and automatic updates obtained through a user subscription. Pull- implementing irrigation strategies. type messages are sent only when a user requests them. When the user sends a letter (like “P”) in a message, the ICT can help address some of the challenges inherent in eWarning system will respond with information on precipita- creating and sustaining irrigation systems in rural areas. The tion for the user’s geographical location. Surveys show that functioning of water-user associations and their productivity the push-type message is most popular, providing farmers improve with the use of ICT devices, like mobile phones and with an hourly forecast up to four times per day (Jensen and personal digital assistants (PDAs), which increase the quality Thysen 2003). and frequency of producers’ communication and interac- tion. Sharing information about emergency maintenance A Yakima software firm, in partnership with Washington State problems, entitlement rights, and management schedules University, is customizing a weather website for specific is facilitated through ICT, which allows real-time responses locations to provide weather alerts to farmers in the United even between users from distant communities. States. These alerts include frost warnings, wind speed with recommendations for pesticide spraying, and information Digital orthophoto quads (DOQs), a feature of GIS, are on disease outbreaks. After a farmer has registered for the digital maps that combine the geometric information of a IMAGE 5.7. Two Examples of Digital Orthophoto Quads Source: United States Geological Survey. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 121 regular map with the detail of an aerial photograph (Neale Mali (see IPS “Using Landsat to Assess Irrigation Systems 2003) (image 5.7). DOQs provide spatial illustrations of ter- in Mali,” in Topic Note 5.2). This irrigation scheme, one of rain, including elevation and property boundaries, which can the largest is West Africa, produces 40 percent of Mali’s rice help delineate irrigation canals and drainage systems. Given crop and is key to national food security. the high and increasing value of rural land, it is worth noting that the resolution and georeferencing possibilities of most An equally intriguing ICT for irrigation management, specifi- satellite remote sensing systems are not yet adequate to cally for monitoring the construction of irrigation systems, is demarcate property accurately. Nonetheless, achieving GPS cameras. The cameras are relatively cheap and user greater accuracy and confidence in property boundaries is friendly; when a project worker photographs infrastructure, essential to limit the land disputes that ensure when new the camera records the date, time, longitude, and latitude irrigation schemes are designed and built. DOQs can help automatically. to achieve this higher level of resolution, but sometimes Afghanistan’s national Emergency Irrigation Rehabilitation at higher costs than other high-resolution imagery. (See Project (funded by the World Bank) was delayed owing to IPS “Digital Orthophoto Quads Form a Database for the increases in conflict in certain regions, but now GPS cam- Dominican Republic” in Topic Note 5.2.) eras provide “remote supervision.” As the irrigation project LiDAR (laser scanning) is a new technology for obtaining a unfolds, water users can photograph the construction pro- highly detailed digital terrain model or, if equipped with an cess to make contractors more accountable and prevent aerial camera, for topographic mapping. A digital terrain financial resources from being wasted. Users can report model is basically a digital representation of an area’s ter- infrastructure problems to the government without needing rain on a GIS that provides accurate position and elevation to travel through potentially dangerous regions. coordinates. It is compatible with other digital spatial data, Project workers have photographed over 650 locations is more accurate, and has a higher resolution than satellite where irrigation construction projects are being imple- images. Elevations can be accurate within 5 centimeters, mented. These photos, which are emailed or delivered by but accuracy typically is closer to 10 or 20 centimeters. In hand to ministry offices, serve as the baseline for progress comparison, digital aerial cameras only provide only about a (World Bank 2010b). A crucial point is that the technol- 20-centimeter horizontal resolution. ogy also enhances the participatory process, which may Because of its detailed imagery, a digital terrain model can improve user associations’ productivity once the irrigation be used for meticulous engineering designs, such as those system is complete. for roads, drainage, gravity-fed irrigation works, and deten- tion reservoirs. These models can also be used more broadly to manage land and water (for example, in flood control). LESSONS LEARNED When combined through GIS with other data such as soil This note has described the many ways that ICT enables real- types, these models can help to identify areas with potential time adjustments in agricultural practices to prevent losses slope instability and erosion, which are important for reduc- after investments have been made. These technologies also ing soil degradation and its negative impact on soil fertility. have considerable potential to help small-scale producers At the field level, digital terrain models can monitor and use scarce resources—water, nutrients, and others. Greater improve areas affected by waterlogging or flooding. Overall certainty about the weather, access to water, and disease laser scanning has considerable potential for planning irriga- outbreaks can lead to better decisions and higher produc- tion schemes, designing infrastructure, managing irrigation tivity. These types of ICT also face important challenges, operations, and modeling. Laser scanning is most useful however, and a number of considerations are important in for large areas because the aerial operation is expensive. improving their effectiveness, especially for smallholders. The cost of laser scanning also depends on the accuracy of the data required, the location of the area of interest, and Strategies to improve agricultural practices change dra- the level of the data products (such as GIS layers). matically over time, just as strategies to manage irrigation have evolved from a nationally operated to user-operated Satellite data can also prove useful in managing irrigation model. ICT devices aimed at preventing crop or livestock schemes, such as the enormous Office du Niger project in losses must adapt in line with these strategies so that I C T I N AG R I C U LT U RE 122 MODUL E 5 — INCR EAS ING C R OP, LIV ESTOCK , A ND FISH ERY PROD UC TIVITY THR OUGH IC T users receive current information, communicated in the technologies can help achieve economies of scale that most cost-effective way. reduce costs (IICD 2006). Local knowledge is critical to improving smallholders’ pro- Just as they can be overwhelmed with too much new infor- ductivity. ICT not only creates opportunities to disseminate mation, farmers can be overwhelmed with new technology information but also offers ways of capturing local expertise. and become reluctant to use it. Advances in ICT are best Vast differences in ecological and agronomic conditions suited to helping farmers improve their management of one make farmers’ knowledge indispensable. ICT should be used or two farm components at a time. Development partners to form two-way communication networks, ensuring that and governments need to prioritize which yield technologies local knowledge is acquired and utilized. or agricultural strategies they would like to introduce and use ICT to disseminate them to a broad population. The collective action problem is quite apparent in relation to the technologies described here. Water management Limited financial resources are also a potential limitation to and disease control require hundreds or even thousands of using these technologies. Large agricultural firms and small- farmers to perform the same tasks in unison. By strengthen- holders alike need to control agricultural water, diseases, or ing information sharing, ICT devices like mobile phones will pests. Incentives for the private sector to partner with gov- increase the potential for collective action. Self-policing may ernment in large-scale ICT projects may enable the invest- also be crucial to the technology’s success. ment to reach smallholders as well. ICT devices that are used to disseminate information like weather forecasts must match capacity in the focus area. INNOVATIVE PRACTICE SUMMARY Some phones handle complex messaging; others do not. Local Radio Frequency Identification to Prevent and types of ICT may need to improve before some preventive Treat Cattle Disease in Botswana technologies can work in developing countries. Taking stock Implemented by Inala Identification Control (IIC) in South of the technical capacity in rural areas will clarify infrastructure Africa, the Livestock Identification Trace-Back System in needs. Botswana is one of the largest and more innovative forms Gender is an important consideration when using ICT to of ICT for animal husbandry, involving over 300 million cat- prevent crop loss. Women are often already involved in tle.6 The system, which uses radio-frequency identification maintaining water resources (for domestic and agricultural (RFID), serves many purposes, including meeting beef import use) in their families. Involving them in water management requirements for the European Union (EU), the destination or pest control projects increases their time to attend to for 80–90 percent of Botswana’s beef exports. The system other important activities like education and generating also improves veterinary services and livestock health. income. It also often results in more effective management. A bolus with a unique ID number and a transponder are Timing is a major concern in weather, water, disease, or pest inserted into each animal’s rumen. In the field, 300 fixed ICT. If information is sent too late, farmers may not have time readers scan cattle ID numbers and relay information to data- to adjust their farming strategy. If information arrives too bases in 46 district offices. The bolus collects information early, farmers may make changes that prove unnecessary or that allows both herdsmen and the government to monitor even damaging. new registrations, look for possible disease outbreaks, iden- tify lost or stolen cattle, track weight gain, and plan for animal Information must be relevant and clear. Too much text or treatments. The database also provides the opportunity to scientific data can conceal the message and cause confu- monitor trends over time. sion. Only the most appropriate and contextually based information (like forecasts) and updates should be provided. Technology like this offers many benefits. The bolus is safe By continually interacting with farmers and monitoring their for animals, is protected from criminal tampering, and can responses to information, project managers can clarify which be recycled, which keeps costs low. The bolus also saves information needs to be sent and which does not. time: Ear-tags, the traditional form of identification, required Keeping information current is expensive. Collaborating with various agencies and creating common systems and 6 This section draws on Burger (2004). ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 123 herdsmen or veterinarians to handpick cows through a INNOVATIVE PRACTICE SUMMARY lengthy process. This system speeds up the identification Using Landsat to Assess Irrigation process. Herdsmen can optimize feeding schedules, select Systems in Mali certain bulls for breeding programs, and keep updated health The Office du Niger, a vast irrigation scheme dating to the records, which improves productivity directly by reducing 1920s in Mali, delivers water from the Niger River to approxi- susceptibility to disease and planning for yields. mately 80,000 hectares of rice fields The irrigation scheme is divided into five administrative zones, each responsible for its own water management. The scheme’s senior staff use INNOVATIVE PRACTICE SUMMARY data from Landsat (which uses sensors to record reflected Digital Orthophoto Quads Form a Database and emitted energy from Earth) and other sensory data for the Dominican Republic (including air temperature and humidity) to analyze cropping Digital orthophoto quads (DOQs) can do much more than intensity, asses water productivity, and monitor equity in provide digital maps. By tracking the photos, it is possible water distribution.8 The data are also used to compare the to create water databases that are crucial to the success of productivity of fields at the head (beginning) of the water irrigation. The databases can provide real-time information on source with the productivity of the fields at the tail (the most heavily and sparsely irrigated locations, statistics on water distant point from the water source). use (and subsequently water users), drainage problems, and even salinity issues. Landsat has the ability to “see” a variety of colors as well as near-infrared, mid-infrared, and thermal infrared light, which This kind of database featured in a program to improve helps to distinguish differences between land plots and users’ management of irrigation systems (PROMASIR) in the water sources. Initial results from Landsat images revealed Dominican Republic in partnership with the Inter-American critical similarities and differences between administrative Development Bank and Utah State University.7 By combin- zones, which irrigation managers can use to determine and ing DOQs with other information (such as information on address the causes of yield variation (for example, low yields property ownership), the database enables water users to in fields near the tail). To gain even greater clarity on why search for other water users, observe property boundaries, irrigation may succeed or fail in a given location, remote review monthly crop and water statistics, and obtain esti- sensing and GIS images, such as those used in Mali, can be mates of irrigation water demand in certain areas. Users coupled with other statistics like administrative boundaries, have access to more accurate information to use when crop data, and poverty levels in GIS maps. updating their infrastructure as well as more insight into potential maintenance problems (such as a system break- down upstream). Assigning water rights and water fees is REFERENCES AND FURTHER READING also easier with databases. In areas with greater demand, AfSIS (Africa Soil Information Service). 2009. Digital Soil Mapping. prices can be expected to rise. Finally, a system like this http://www.africasoils.net/methods/dsm, accessed November. can also prevent conflicts over water, because all users have Baggio, A. 2004. “Wireless Sensor Networks in Precision Agriculture.” access to the same factual information, such as price infor- Swedish Institute of Computer Science. http://www.sics.se/real- mation and plot size. wsn05/papers/baggio05wireless.pdf, accessed April. 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ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 127 Module 6 ICTS, DIGITAL TOOLS, AND AGRICULTURAL KNOWLEDGE AND INFORMATION SYSTEMS JEEHYE KIM (World Bank Group) and DAVID NIELSON (World Bank Group) IN THIS MODULE Overview. Research, extension and advisory services, and learning activities are the major knowledge and information services for agriculture. Each of these services increasingly employs information and communication technology (ICT) and digital tools to promote and exploit rapidly expanding access to information, advice, consultation, and data. This module discusses the use and impact of ICT and digital tools in research, extension and advisory services, and activities related to agricultural learning. Topic Note 6.1: ICT, Digital Tools, and Agricultural Research. Throughout the agricultural research process— from engaging partners and stakeholders, through data collection and analysis, collaboration and knowledge access, publishing and dissemination, to feedback and interactions with rural and other end-user communities—ICT and digital tools are making agricultural research more effective.  Fujitsu Launches New “Akisai” Cloud Initiative for the Food and Agricultural Industries and Research  KAINet Kenya Knowledge Network Anchored in Partnerships and Collaboration Topic Note 6.2: ICT, Digital Tools, and Agricultural Extension and Advisory Services. ICT and digital tools appear to have the potential to transform extension and advisory services in several ways—including changing the way in which extensionists do their work, but also changing the ways extension institutions are organized and staffed. The emergence of public and private innovators and start-ups with business models built around ICT-enabled advisory services signals the types of transformations that are likely to come. This note examines how traditional and new types of ICT are used to reach rural communities, enable rural communities to create and share their knowledge, and connect rural communities with knowledge institutions and other sources of information and advice.  E-extension with a Business Orientation in Jamaica’s Rural Agricultural Development Authority  Videos on Rice Seed Production Bring Multiple Benefits to Bangladeshi Women  Participatory Video and Internet Complement Extension in India Topic Note 6.3: ICT, Digital Tools, and Agricultural Learning and Education Systems. Learning through ICT can provide fresh approaches that place producers and their communities at the center of designing and implementing the learning experience. ICT can also make it easier to maintain quality by supporting feedback mechanisms and ensuring appropriate accreditation and certification processes. This note also explores some of the adaptations and strategies required for e-learning to succeed in rural areas of developing countries.  Lifelong Learning for Farmers in Tamil Nadu  Innovative E-Learning for Farmers through Collaboration and Multimodal Outreach OVERVIEW Information and communication technology (ICT) and digital The authors of the original Module 6 were Stephen Rudgard (FAO), Peter Ballantyne (ILRI), Riccardo Del Castello (FAO), Philip Edge tools are fundamentally transforming the operating environ- (Consultant), May Hani (FAO), Ajit Maru (GFAR), Estibalitz Morras ment for agricultural knowledge and information systems. (FAO), Karin Nichterlein (FAO), Enrica Porcari (CGIAR), Sophie These technologies and tools can expand access to infor- Treinen (FAO), Venkatraman Balaji (Commonwealth of Learning), and K. Balasubramanian (Commonwealth of Learning). The reviewer of mation and knowledge, and promote communication and the current Module 6 is David Spielman of IFPRI. cooperation among the actors in agriculture. Mobile phones I C T I N AG R I C U LT U RE 128 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S in particular can drive participatory communication, includ- BOX 6.1. Cloud Computing Improves Open Access and ing communication with those on the margins of traditional Open Data in Agriculture while Integrating research-extension processes, and phones are often the key New Technologies for New Uses instruments enabling organizations to deliver services to larger numbers of rural people than they could reach before. Pioneered by Amazon Web Services, cloud comput- ICT is also integral to the business models of the public and ing (the practice of using a network of remote servers private “info-mediaries” and “information brokers”—such hosted on the Internet to store, manage, and process as extension agents, consultants, and companies contract- data) has played an important role in improving global ing farmers—that are emerging to broker advice, knowledge, access to knowledge resources and data. The use of collaboration, and interaction among groups and communi- cloud computing in agriculture goes beyond access to ties throughout the agricultural sector. All of these devel- data and servers. Merged with a number of technolo- opments offer opportunities to significantly enhance the gies, such as radio-frequency identification (RFID) tags effectiveness and reach of agricultural research, extension the cloud enables tagging, downloading, analyzing, and and advisory services, and learning programs, as well as synthesizing immense data sets. Instead of waiting for opportunities for profound and transformational changes in an expert to analyze such data, systems can automate how such programs are structured. the practical analysis and interpretation of current and past data and formulate user-friendly and actionable recommendations for farmers and other participants in ICT AND DIGITAL TOOLS IN AGRICULTURAL agricultural value chains. Considering that few individu- KNOWLEDGE AND INFORMATION SYSTEMS als (including farmers) are IT experts and that many are As ICT has developed and become more pervasive, it has not even adept users, Software-as-a-Service platforms become a source of essential tools for agricultural research, (licensing and hosting the tools) and cloud computing extension and advisory services, and e-learning systems. services (providing remote access to hardware and soft- First and foremost, the increased coverage of telecom- ware) might prove a good fit for agricultural producers munication networks means that more technologies and and corporations. applications long regarded as potentially useful in rural com- Source: Authors. munities are finding their way into the hands of more rural users, even in remote areas. Exceptional increases in the speed, reliability, scope, and accuracy of communication already becoming cost-effective for high-performance com- and information exchange—through text, voice, and other puting, like video and image processing, bioinformatics, and applications—have created new opportunities for farmers most types of scientific data analysis. Agricultural research to connect with their partners (other farmers, researchers, institutes, such as the member centers of the Consultative extension and advisory service providers, agribusiness, or Group on International Agricultural Research (CGIAR), are others important to farmers’ lives and enterprises) in ways shifting to cloud computing, anticipating that it will cut the that enhance their productivity and incomes. cost of scientific computing and present new opportunities for international agriculture. The extent to which cloud com- A second way in which ICT has become essential for agricul- puting will influence the overall effectiveness and impact of tural research, extension, and e-learning systems is through agricultural research and extension and advisory services cloud computing services (box 6.1). Cloud computing pres- remains to be seen—but many see tremendous potential in ents vast possibilities to manage big data about agriculture this regard. and render it directly and practically useful to agricultural policy makers, researchers, extensionists, farmers, and A third transformative development for agricultural research, agribusiness. Cloud computing offers “a model for enabling extension and advisory services, and e-learning for public convenient, on-demand network access to a shared pool of agricultural agencies and farmers themselves is the emer- configurable computing resources (e.g., networks, servers, gence of online or mobile tools that facilitate open access storage, applications, and services) that can be rapidly provi- to agricultural knowledge and information and encourage sioned and released with minimal management effort or ser- public involvement in its use. Governments, organizations, vice provider interaction” (Mell and Grance 2011). Over the and even the private sector share data and reports with past few years, these services have been the lowest-cost the public and one another through ICT. As ICT has allevi- option for nearly all types of data center computing and are ated the difficulties inherent in interactions among people ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 129 in dispersed locations, knowledge sharing and multistake- IMAGE 6.1. Specialized Knowledge on Farm Practices holder engagement are widely acknowledged to have Can Result in Profitable Enterprise increased. Research can involve more expert opinion and diversity (box 6.2). Advisory services can tap a much wider range of current expertise and provide advice in a much more targeted way to those who need it. With Internet access, e-learning can function without a formal distance education program, and Web platforms such as agropedia (discussed in Topic Note 6.3) make it much easier to develop and transmit content for e-learning programs. At the same time, the capabilities for data collection and analysis that are becoming available raise new issues about protecting the privacy of farmers and other actors in the agricultural sector. These issues will need to be managed if the full potential of big data in agriculture is to be realized. Finally, new forms of knowledge sharing are possible through Source: Rikin Gandhi. ICT (image 6.1). Knowledge brokering has always been an integral part of agricultural innovation systems. The creation and passing of information between farmers and extension agents, farmers and researchers, and researchers and exten- BOX 6.2. Agricultural Research Center Facilitates sion agencies, among others, is critical to increased produc- Open Access and Global Platform for Sharing tivity through the adoption of better farming practices and Knowledge technologies. Providing free Web-based access to research is a Knowledge sharing is becoming a specialization—one that priority for international research and development is often marketable and sometimes profitable. As digital lit- centers. Housing more than 5,700 research docu- eracy and the availability of ICT increase, farmers, traders, ments—including journal articles, conference papers, and others in developing countries are offering and receiving theses, and monographs—an Open Access Repository hypercontextualized information for a fee. This private activ- launched by the International Crops Research Institute ity can widen the availability and improve the relevance of for the Semi-Arid Tropics (ICRISAT) provides an easy information in rural areas and reduce reliance on public exten- interface for researchers, practitioners, and Web- sion agents. Compared to traditional public advisory services, connected farmers to use, build on, and share research private sector involvement has often proven more effective conducted at ICRISAT. Since the Open Access in providing specific, well-defined, high-quality information Repository was created in May 2011, more than needed by producers). 144,000 documents have been downloaded by people from more than 70 countries. ICRISAT also uses the Web-based KSI Connect KEY CHALLENGES AND ENABLERS platform to spotlight interesting research projects, The topic notes and innovative practice summaries in this cutting-edge research, and stories at ICRISAT for module demonstrate the potential and the challenges for both an in-house and a global audience. This platform ICT and digital tools to dramatically increase access to allows experts across the globe to share their proj- knowledge and information in the agricultural sector, ect experiences and cutting-edge research activities opening the way for substantially improving the effective- contributing to global food security. Since its launch in ness and value of agricultural research, extension and July 2012, KSI Connect has hosted more than 100 vid- advisory services, and learning. Two key enablers— eos, and the website receives more than 3,000 users the policy environment and collective action (among every month. research institutions, extension agents, governments, and Source: ICT Update (February 2013) on CTA’s website (http://ictupdate .cta.int/mobileen/Feature-Articles/The-right-information-at-the-right-time). farmers)—are critical to using various types of ICT, such as mobile phones and the Internet, to bring about the many I C T I N AG R I C U LT U RE 130 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S BOX 6.3. Key Elements of ICT Systems for Agriculture Policies. Generate or adapt institutional and national strategies and policies to make the introduction of ICT innovations more frequent and more effective. Institutions. Adapt organizational structures at all levels to accommodate changes in ICT systems and information man- agement processes, develop new incentive structures to encourage all innovation actors to contribute novel outputs or to stimulate collaboration, and develop innovative business models, particularly where they relate to mobile devices and telecommunications. People and communities. Develop and diversify the skills and competencies of stakeholders at every level and in every aspect of the agricultural sector in applying and adopting ICT for their activities in farming and agribusiness. Invest in the skills of new intermediaries, such as innovation brokers (often agricultural advisers and extensionists), who specialize in linking actors and resources to foster ICT-related investments and activities that boost productivity and profitability at the farm level and in other parts of agricultural value chains. Content. Ensure relevant local content and stimulate open access to the increasing volume of agricultural research results so that all can benefit. Develop and comply with coherent standards that continue to improve the interoperability and exchange of data among stakeholders. Processes. Use ICT to facilitate and open up inclusive multi-actor processes in which knowledge flows efficiently and can be put to use by different stakeholders. Facilitation will be needed at various levels to bridge divides and gaps in access to ICT and in institutional strength. Technologies. Invest in greater connectivity, data and information generation and handling capacity, hardware, software, and improved human-computer interfaces to serve all aspects of the agricultural and agribusiness sectors. Ensure that rural ICT infrastructure and connectivity are enhanced. Specific actions are needed to overcome barriers to technology use, such as those related to culture, language and literacy, and gender. A recurring challenge is the fast pace of change and development in ICT. Monitoring and evaluation. Develop new and improved tools and approaches to assess information and knowledge interventions more effectively. Capacities and training. Invest in the technical and organizational capacities of individuals and institutions so they appre- ciate and use ICT devices as tools to enhance knowledge creation, transformation, and innovation. These capacities are more than just technical; appropriate mind-sets and incentives are essential to encourage information and knowledge to flow. Source: Authors. relatively small, scattered agricultural innovations that can offices, or research centers is a critical prerequisite for together have a major impact. Policy change can spur the implementing effective technical services. Public-private development of the infrastructure for ICT-enabled informa- partnerships can be forged, particularly for commercially tion sharing. Collective action facilitated by digital tools oriented extension, advisory services, and e-learning (see can enhance productivity in the sector enormously. “Lifelong Learning for Farmers in Tamil Nadu”), to improve telecommunications infrastructure, identify sustainable Just as roads are essential for rural development, digital business models, and aid in capacity building and training. connectivity is becoming essential for research, extension Box 6.3 reviews the key elements of ICT systems for agri- and advisory services, and e-learning. Not all types of ICT culture that require attention. available for agricultural information systems will work in rural areas. An analysis of the technical capacity (infrastruc- National ICT policy can create an enabling environ- ture, connectivity, accessibility, affordability, and equip- ment for the use of ICT and digital tools (World Bank ment) as well as staff capabilities (in software development, 2015), but the overall conduciveness of the enabling IT understanding) in line departments, local government environment depends on more than national policy alone. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 131 It is also affected by the policies prevailing at the organiza- IMAGE 6.2. ICT must be Complemented by Other tional level. Researchers may want to disseminate results Inputs, Such as Improved Seedlings more widely and increase their usefulness, for example, but they can be inhibited by organizational IT and intellec- tual property policies that limit opportunities to tap into the open access movement.1 If national research systems do not digitize their research results and create repositories for them, they make it difficult for their researchers to share findings in a wider network. Extension and advisory programs, other agricultural services, and producers may suffer the consequences of not having access to impor- tant research results. Appropriate institutional policies and general e-readiness are essential to build innovation cultures where ICT thrives and is put to good use—but Source: Dominic Sansoni, World Bank. their development requires an appropriate policy environ- ment that safeguards researchers’ incentives to develop innovative products that will have value for the sector and ORGANIZATION OF THIS MODULE its participants. This module focuses specifically on how ICT can be used in three major, interrelated components of agricultural knowl- Effective management and collaboration are essential for edge and information systems: research and knowledge building research networks, data repositories, and expert sharing systems; advisory services; and e-learning. Each of query systems and for engaging in large data collection these components is discussed in a topic note. efforts. In addition to committing resources, agricultural research services must create the right climate and culture, Topic Note 6.1 focuses on the use of ICT in research including at the senior management level, to support collab- and ICT-enabled information systems for agricultural devel- orative planning, knowledge sharing, communication, cross- opment. Investments in infrastructure and digital research functional teams, and a critical review of current information collaboration, along with rapid developments in mobile and communication systems. devices and connectivity in rural areas, are changing infor- mation and knowledge flows. This note focuses more on Advisory services can dramatically improve the effective- general research processes than on specific applications, ness of their efforts by using ICT to nurture and facilitate describing how ICT is altering research collaboration and knowledge sharing and brokering (including brokering new data collection, analysis, storage, and dissemination. partnerships). The nature of farmer engagement, two-way For example, the note describes efforts by individuals communication, information requirements, and complex and research organizations to make formal and informal extension networks all make the design of advisory service research outputs (peer-reviewed journal articles and unpub- programs critical to their ultimate success. In designing advi- lished literature) freely and openly available on the Internet sory programs that use ICT, the basic requirements must using low-cost technologies. be considered, including ICT policy, rural connectivity, user fees, the information and communication needs of potential Topic Note 6.2 describes how ICT contributes to efforts in stakeholders, functional linkages, existing communication many countries to employ new operational and institutional channels and knowledge sources, lessons related to previ- modalities to make advice and information more accessible ous information dissemination and networking efforts, farm to producers. The discussion is organized around broad func- diversity, and demographic, political, and environmental tions of ICT in supporting this new notion of advisory ser- demands (image 6.2). vices: the need to provide localized, customized, and highly accessible information; the need to archive and provide ref- 1 The urge to protect research results can be strong, especially erence information for a wide array of actors in the sector if they represent a potential source of income for impoverished (from fertilizer application rates to quality standards for food national research programs. Many public organizations, lacking processors and exporters); the need to facilitate networks expertise in intellectual property management and protection, opt for the most restrictive policy on information sharing, even though (local, regional, global) for collaborative, interdisciplinary they recognize that it is detrimental to innovation. approaches to problem solving and research diversification I C T I N AG R I C U LT U RE 132 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S through shared knowledge bases, online forums, and collab- any actor in the innovation system to reach large numbers orative spaces; and the need to empower and “give voice” of producers, involving them as partners and adult learners to rural communities. in designing and implementing the learning experience. The use of ICT devices such as mobile phones makes it possible Topic Note 6.3 focuses on electronic learning, especially its for learning to occur without classrooms or fixed schedules, potential for building capacity in extension and advisory ser- although face-to-face interaction and incentives for using the vice providers and in producers. E-learning potentially enables new knowledge are important for e-learning to succeed. Topic Note 6.1: ICT, DIGITAL TOOLS, AND AGRICULTURAL RESEARCH TRENDS AND ISSUES COLLABORATION IN AGRICULTURAL RESEARCH Agricultural research is a key knowledge- and information- The need for collaboration cuts across the entire agricultural intensive activity for improving the productivity and sustain- research process, from the conceptualization of a research ability of the agricultural sector. The effects of ICT have program to the application of its results. In agricultural permeated the agricultural research process and the partner- research for development, for example, priorities are often ships that define, sustain, and direct it toward development based on the needs of small-scale farmers with very lim- goals. For example, ICT is making agricultural research more ited resources. ICT is making it easier for research organi- inclusive and at the same time more focused on develop- zations to link with these stakeholders and document and ment goals, because it changes how, where, and to whom understand their needs, thus enhancing the relevance and information flows. Information can flow in many directions; it effectiveness of their research. ICT also makes it possible to can be highly dispersed and accessible, and it can be highly consult a much wider and more dispersed network of stake- targeted, location specific, and location aware (Ballantyne, holders (such as producer groups, technical experts, private Maru, and Porcari 2010). sector actors, research administrators, and policy makers) prior to developing a research program (box 6.4). ICT is not only becoming integral to the mechanics of the research process. It is also associated with the collaborative An integral part of “who to include in the collaborative research context in which the research process unfolds, and it is criti- process” is “where to do the research.” The local nature of agri- cal to the communication and accessibility of the data, infor- culture, from the environment’s effect on crops and biodiversity mation, and knowledge that researchers and their partners or the social and cultural norms that influence the agricultural create. sector (e.g., in one location women are quite active as small- scale farmers and traders; in another, they never work alone in ICT devices and techniques offer new potential to devel- the field and are forbidden from selling produce to strangers), oping national institutions, such as research centers, and suggests that it is usually necessary to pick locations appropri- networks to participate in a worldwide digital knowledge ate to the locale in which the results are to be applied. economy. Movements of information are almost instanta- neous and can be transmitted across the world at no or min- Here again, ICT has proven quite useful making these links. imal costs (Mark 2014). Open repositories and Web tools For example, in developing new varieties with specific traits create opportunities for the more digitally connected stake- needed by small-scale farmers (such as drought tolerance or holder groups in research agencies and academia to gener- resistance to a particular disease), plant breeders have relied ate, capture, store, analyze, and share virtually the entire for years on ICT to collect, analyze, and validate data to iden- range of research content, such as academic theses, data, tify field testing sites that are representative of conditions images, researcher profiles, and so on. These technologies in small-scale farmers’ fields. In Tanzania, researchers have have also created more informal ways of communicating added to their capacity to track and monitor the development research outputs. of cassava mosaic disease and cassava brown streak disease ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 133 BOX 6.4. ICT Engages Stakeholders in Formulating an BOX 6.5. Rural Tanzanians Update Researchers on Ambitious Research Program Spreading Cassava Diseases In the summer of 2010, four international agricul- Pandemics of cassava mosaic disease and cassava tural research centers in the Consultative Group on brown streak disease are reaching East and Central International Agricultural Research (CGIAR) came Africa. The costs of sending researchers to monitor dis- together with partners to develop an innovative, inclu- ease development are high. Yearly visits have barely kept sive research program on livestock and fish. Before pace with these spreading diseases, yet early warnings the program could be developed, a very wide range of of new outbreaks and greater community involvement stakeholders (from governments, funding agencies, the in their control would considerably slow their progress. private sector, and research, extension, and advisory ser- The Digital Early Warning Network (DEWN) provided vices) participated in extensive consultations, not only training and mobile phones to farmers in northwest- in person but also online. Their efforts were supported ern Tanzania so that they could recognize symptoms of by a wiki to share documents and other resources in the two diseases and text their findings to researchers. a transparent, efficient, and cost-effective manner; a Information obtained from farmers was used to gener- blog where assumptions and questions were posed and ate maps. One of the most significant findings was that comments received; and several online surveys devel- brown streak disease reported by farmers was confirmed oped using the SurveyMonkey tool. The process and by researchers’ visits to two districts where it had not pre- documentation were fully open. All documents, presen- viously been reported. This finding allowed project teams tations, and interviews were publicly available. to concentrate disease mitigation efforts on these areas. Fostering broad and deep engagement among numer- DEWN has provided an innovative, informative, and ous stakeholders to develop a very large research pro- relatively cheap means of involving communities in gram is not a simple or brief task. For this particular monitoring and maintaining the health of their crops. program, the e-consultation began in July 2010 and Research has been enriched and cost-effectively consisted of eight rounds of questions, each focused extended through greater connectivity with the voices on a different aspect of the proposed research. The and knowledge of farming communities. DEWN was initial proposal emerged after five rounds of consulta- primarily piloted by the Lake Zone Agricultural Research tion, each including a survey (a series of statements Institute in Tanzania with the International Institute of with which participants were invited to agree or Tropical Agriculture. disagree) and an opportunity to submit open-ended Source: Adapted from http://measict.weebly.com/uploads/3/2/4/3 comments. Three more phases of the e-consultation /3243215/meas_tanzania_-_rapid_appraisal_of_the_ict_for_agricultural _extension_landscape_-_jan_2013.pdf. followed in February 2011. During this time, revi- sions to the initial proposal based on an external review were shared and tested in public through the e-consultation forum. because ICT offers a means of cooperating with the distant farming communities whose crops are at the front lines of Between July 2010 and March 2011, the various these pandemics (box 6.5). e-consultation tools and resources were viewed more than 25,000 times. The organizers received 465 com- Communication in agricultural research has traditionally ments and other feedback on questions and surveys. focused on disseminating “end results”—by publishing The consultations raised a number of concerns and results in peer-reviewed journals, monographs, proceed- suggestions that were instrumental in strengthening ings, and so on. To make research more relevant, open, and the proposed program throughout its development. accessible, some organizations use ICT to enhance knowl- This type of consultation is becoming widely used and edge sharing much earlier in the research process, during is integrating a much broader and more diverse set of program formulation, design, and as part of ongoing planning views, perspectives, and insights into CGIAR planning and review. Increasingly, researchers are using digital social processes than ever before. media tools, which are easy to access and use, to extend and Source: Program proposal (http://livestockfish.wordpress.com). open up communication and knowledge sharing throughout the research process. I C T I N AG R I C U LT U RE 134 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S To disseminate information on such approaches and tools, of ICT and digital tools. Mobile devices of all kinds record the CGIAR has assembled a Knowledge Sharing Toolkit research data—smartphones, mobile phones using SMS text in conjunction with the Food and Agriculture Organization messages, personal digital assistants (PDAs), global position- (FAO), the KM4Dev Community, and the United Nations ing system (GPS) units, and specially designed equipment Children’s Fund (UNICEF). The toolkit consists of knowledge to measure indicators of soil nutrient levels, among others. sharing tools and methods to promote collaboration at each Electromagnetic and photographic data are recorded by stage of the research project cycle. Online tools include col- sensors in satellites and aircrafts and on the ground. Small laboration platforms, wikis, blogs, photo sharing, podcast- transmitters are used to collect, store, and send data, includ- ing, Google documents, discussion forums, intranets, ing data from radio-frequency identification (RFID) tags content management systems, and instant messaging. Each (Simon et al. 2014). tool is described, with links to relevant resources and sugges- Mobile technology has also created opportunities for tions for use, on the website. Figure 6.1 illustrates how the crowdsourcing from farmers. Rather than perform data CGIAR ICT-KM Program perceives the relationship between collection by hand or through paper surveys, researchers the research cycle and the various knowledge sharing and col- can collect data through SMS or mobile digital data collec- laboration tools highlighted above. tion tools (box 6.6). Data on pest outbreaks, for example, can be recorded by asking farmers to text information to a premium number. Scientists and governments are able COLLECTING AND ANALYZING RESEARCH DATA to monitor farming activities and local problems remotely ICT is widely used to collect data, with the choice of technol- and to predict regional and national challenges with greater ogy depending on the kind of data needed. Surveys can be certainty. SMS and other mobile data collection tools have administered electronically. Information from online research also eased data entry. Paper surveys, which require enor- collaboration can be recorded and analyzed using a variety mous amounts of labor after the initial data are collected, FIGURE 6.1. Knowledge Sharing and Collaboration Tools in the Research Cycle How can ICT support this? –Providing many more channels for information to How can ICT support this? flow to target groups that –Providing ways for more are appropriate for them people to provide information/priorities/needs Disseminating from the ground and Identifying influence this research research priorities results/products How can ICT support this? –Providing ways to include more voices in M&E M&E and to make it a How can ICT support wider learning process Developing this? Planning research results –Providing ways for research into outputs more people to be involved in and contribute to this How can ICT support this? process –Providing ways for co- creation, collaboration, Carrying out and feedback on research development of products despite different geographical locations How can ICT support this? –Providing ways for people to be involved and share information Source: Manning-Thomas 2009. Note: M&E = monitoring and evaluation. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 135 BOX 6.6. Open Applications for Mobile Digital Data Collection Mobile data collection for humanitarian and public health projects started to take off with the invention of the Open Data Kit (ODK), a collaboration between Google and the University of Washington. ODK allows smartphone users to submit information to a central server (ODK Aggregate), drastically scaling back the need for using and collecting paper-based forms. A number of open standards have been developed around open data collection, including OpenRosa, XForm, and XLSForm. Years later, methods have been validated, innovations have progressed, and others have built on the ODK platform, including formhub, Ona.io, and KoBo Toolbox. formhub The Columbia University Sustainable Engineering Lab (SEL) initially created formhub as an internal system to assist small-scale, offline data collection. The SEL team then created formhub.org and provided formhub free to users as a hosted Software-as-a-Service (SaaS) platform. It was an instant hit, and there are over 3 million form submissions. A number of virtualboxes have been created so users can download formhub and run it on their own, just as if they were using the ODK platform. On to Ona A number of formhub developers joined together and created Ona, which is based in Nairobi and New York City. Recognizing that their customers needed a hosted mobile data collection system, they immediately began work on improving the scal- ability of formhub and rebranded it as ona.io, which is currently available both as a free service and paid plan. KoBo Toolbox Built for the most demanding contexts where Internet connectivity is the exception, not the rule, KoBoToolbox is a flex- ible, free, and easy-to-use software for mobile digital data collection (and surveys). The software requires no special programming skills or equipment. Surveys can be conducted entirely offline, regardless of what kind of device is used to collect the data. For that reason, the toolbox is particularly helpful for researchers who collect data through face-to-face interviews for large-scale, social science population surveys. In coordination with the United Nations and the International Rescue Committee, KoBoToolbox launched a new phase in September 2014 to make electronic data collection more standardized, more reliable, and easier to use in humanitarian crises. Many additional features are being developed as growing numbers of researchers contribute their expertise to this open source effort. Enketo Enketo is a Web-based data collection client that allows data to be collected offline through a Web browser on any device. It adjusts for different screen sizes and touchscreen ability. When users visit the survey page the first time, Enketo automatically “installs” the survey in users’ browsers, allowing them to collect data with the device both online and offline. It automatically syncs to the server when an Internet connection returns. One of the first fully offline-enabled SaaS solutions, Enketo is available for deployment with independent ODK and formhub installations and is automatically embedded in Ona.io and KoBoToolbox. A new, fully open source version of Enketo called Enketo-Express is under devel- opment to allow organizations to collect information from computers that are not connected to the Internet. Source: Extracted from mHealth Platform Compendium. are being replaced with devices connected to software sometimes free of charge.2 Other organizations (public and packages that automatically transfer the data to databases private) offer crop genome sequencing data. In the future, and statistical programs. iFormBuilder is an innovative appli- as biotechnology and agriculture increasingly overlap, cation that collects rural survey data. results of nanotechnology applications in agricultural pro- duction and food processing and packaging will increasingly In addition to collecting primary data, researchers often rely be collected and shared through ICT (Interagency Working on secondary data to complete their analyses. For exam- ple, several organizations offer archival GIS data, including 2 See CGIAR Consortium for Spatial Information (“What Is CGIAR- remote sensing data, at increasingly better resolutions and CSI?” http://csi.cgiar.org/WhtIsCGIAR_CSI.asp). I C T I N AG R I C U LT U RE 136 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S Group on Manufacturing R&D, Committee on Technology, by an organism) has numerous applications in plant breed- and National Science and Technology Council 2008). ing research, such as improving the understanding of how plants respond to disease, but until recently few research The use of ICT to analyze research data appears virtually institutions in developing countries have been able to afford universal, although some research systems are limited the ICT infrastructure to analyze proteomics data. by the infrastructure and applications available to them. Options range from custom software developed for a particular research project or organization to more generic MAKING DATA AND INFORMATION ACCESSIBLE packages such as GenStat Discovery Edition, a version of A primary output of the research process is knowledge. the widely used GenStat software for statistical analysis Given the transition from print to digital information, one that is available free of charge to noncommercial users in of the most useful investments that an agricultural research developing countries. institution can make is to invest in organizing and providing One chief impediment to the wider use of analytical soft- access to its digital information and data resources. New ware in research for development is the lack of funding. The storage technology, particularly cloud storage, is making 13th edition of GenStat costs about US$330, for instance, it far less expensive to store and share data and other but other software, especially for sophisticated genomic and information. proteomic analyses, may be even more costly, especially for public research programs in developing countries. To enable Complete and easily accessible open repositories or archives resource-constrained institutions to participate in innovation of research outputs are the standard to which research systems, various cost options need to be discussed. Perhaps institutes aspire. The concept is based on the use of free software can be procured at a humanitarian-use discount or software such as Dspace, which allows an organization to through cofinancing by development partners, or perhaps set up a repository of its documents and outputs. These an agreement can be reached for large-scale licensing at a repositories allow content to be uploaded and made acces- discounted rate, specifically to meet the needs of developing sible in full; they also allow metadata to be harvested and countries. shared using open standards. As these collections grow, they become permanently accessible indices of an institu- Some of the most innovative current uses of ICT in data tion’s research and nodes in a globally searchable knowledge analysis are for modeling, simulation, visualization, and base for agriculture. cloud computing (do Prado, Barreto Luiz, and Chaib Filho 2010; Hori, Kawashima, and Yamazaki 2010; Li and Zhao Alongside these repositories, many related specialized 2010). For instance, ICT is vital for developing models systems focus on, for example, theses or academic learn- of crop performance in environments where yields are ing materials, specific subject areas (aquaculture, for- reduced by climate stress and increasing climatic variabil- estry, and so on), and national aggregations of data from ity. Such models offer an important means of evaluating different sources. Parallel systems facilitate the curation, the potential for new cultivars to adapt to climate stress sharing, and sometimes analysis of data in various forms and climate change and to assess food import needs and (box 6.7). All of these systems build on basic connec- export potential. tivity and ICT infrastructure, both within institutions and outside them, through the adoption of applications that Another example of innovation is the free tools for analyz- enable global sharing and aggregation, harvesting, and ing virtual proteomics data developed by researchers at distributed management of data. the Medical College of Wisconsin’s Biotechnology and Bioengineering Center.3 The tools are used in combination A number of examples of data storage and sharing follow, with other free software and Amazon’s cloud comput- and many more could be cited. They are similar in several ing service, giving researchers access to considerably ways. First, they use open standards and common taxono- more computing power than they may have at their own mies that allow metadata to be shared across organizations institutions. Proteomics (the study of proteins expressed and systems. Second, they are often based on free or low- cost specialized applications provided by third parties. Third, they depend on the distributed actions of organizations 3 “Cloud Computing Lowers Cost of Protein Research” (2009). http://www.redorbit.com/news/health/1669050/cloud and initiatives that are working toward common objectives _computing_lowers_cost_of_protein_research/. and are committed to making information and data widely ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 137 BOX 6.7. Dataverse: An Open Application for Storing Project (NAIP) in 2006. This six-year project, led by the and Analyzing Data Indian Council of Agricultural Research, sought to quicken the pace of agricultural development by exploring and apply- Dataverse, initially unveiled in 2007, is an open application ing agricultural innovation in collaboration with a variety of to publish, share, reference, extract, and analyze research public and private stakeholders. NAIP has established over data. It makes data available to others and allows them 50 research alliances between public organizations, com- to replicate work by other researchers. Developed by mercial enterprises, and farmers, focusing applied research the Institute for Quantitative Social Science at Harvard initiatives on technological innovation in poor rural areas. University, the software can be freely downloaded for The project and its partnerships have led to a wide expan- local use, or data can be hosted by the project. sion of stakeholder engagement, more frequent monitoring Dataverse has been continuously improved. The latest and evaluation of technological outcomes, and improved iteration, Dataverse 4, was launched in early 2015 and knowledge brokering. used to share research on 213 cases of Ebola in Sierra Leone globally, more safely, and more rapidly. The team The project component most relevant to this module focused behind this development is already working on ways to on managing change and information in the national agricul- improve the streaming of large-scale data to accelerate tural research service by strengthening the use of ICT for research output. The next complete overhaul, due in research and technological innovation, increasing public 2016, will address the challenges of confidentiality. awareness of ICT, experimenting with e-learning models, Sources: Authors; see also Simon 2015. and opening opportunities for stakeholder collaboration and exchange using electronic tools and Web platforms. The project connected over 300 institutions on the Web, work- accessible through the Internet. Fourth, they have chosen ing toward building an enormous ICT network for agricultural to use systems that not only store content but also curate research and dissemination. A central portal for the network and index content in ways that add value to this public good. will serve as the platform for knowledge building and shar- Finally, they all rely on increasing (remote) storage and con- ing and will maintain 42 open source and subscription-based nectivity capacities. agricultural libraries. Formal links between libraries in the Research institutes and other agricultural entities participat- national research system and other agricultural libraries will ing in research projects or dissemination projects usually be forged. This project component also includes the develop- select a single approach to organize their research electroni- ment of virtual classrooms. cally. These forms of organization include subject, national, regional, institutional, and crowdsourcing approaches (or a Brazil’s national agricultural research system, EMBRAPA variety of these approaches). The approach selected to (the Brazilian Agricultural Research Corporation), recently organize repositories is a critical determinant of its user- and contributed 470,000 bibliographic records to WorldCat, “the management-friendliness. world’s largest library catalog,” reflecting the scale and publishing power of this research system. EMBRAPA also maintains substantial repositories of its research outputs in Subject Approaches full text. Its ALICE repository provides full access to formal The Global Forest Information System (GFIS), organized by research outputs in the form of book chapters, articles in the global forest community, is an open system to which indexed journals, articles in proceedings, theses and dis- information providers, using agreed-on information exchange sertations, technical notes, and more. A complementary standards, may easily contribute content related to forests resource is Infoteca-e, which collects and provides access through a single gateway. GFIS relies on the adoption of to more practical information on technologies produced open tools and content by its many collaborators. It uses RSS by EMBRAPA. This information is intended for farmers, as the primary device to aggregate and re-present content extensionists, agricultural technicians, students and teach- acquired from different sources. ers from rural schools, cooperatives, and others concerned relatively directly with agricultural production. National Approaches, Pioneered and Partnered with Ministries In Jordan, the National Center for Agricultural Research The Government of India, in partnership with the World Bank and Extension, the Ministry of Agriculture, and FAO have Group, began funding the National Agricultural Innovation joined forces to set up the National Agricultural Information I C T I N AG R I C U LT U RE 138 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S System portal. The portal provides updates and news as In Uganda, the Makerere University Institutional Repository well as access to full-text reports and publications. (Mak IR) provides the full texts of scholarly articles and books, electronic theses and dissertations, conference proceedings, and technical reports, including those produced by its agricul- Regional Approaches ture and veterinary sciences faculties. Similar in concept, in that it seeks to link local project actors, the International Fund for Agricultural Development (IFAD) A final example comes from the International Crops joined with the International Development Research Centre Research Institute for the Semi-Arid Tropics (ICRISAT). to use ICT to support learning and networking across a num- ICRISAT conducts genomics research to enhance the ber of IFAD-supported rural development projects in Asia efficiency and effectiveness of crop improvement. In the (initiatives were launched in Africa, Latin America, and the course of this work, it learned that the rate-limiting step Middle East as well). The ENRAP4 project, which ended in in genomics was no longer data generation but the speed 2010, promoted knowledge networking and Internet applica- at which data were captured, validated, analyzed, and tions at the local, national, and international levels in the Asia- turned into useful knowledge. For that reason, ICRISAT Pacific region. ENRAP supported local electronic newsletters initiated its Global Theme on Biotechnology, a program and the dissemination of agricultural market information, and that focuses on building and sharing ICT tools to accel- shared electronic libraries as a means of increasing effective erate these stages of research. The program develops use of the Internet and electronic communication by project information systems for data capture, storage, retrieval, staff and, ultimately, by project communities. The project and dissemination. focused especially on methods and practical solutions to foster participation at the grassroots level. The first phase of The program also develops software based on open ENRAP began with an emphasis on ICT. Subsequent phases source technologies; this software is all in the public focused more on the knowledge and content that needed domain (http:// www.icrisat.org/bt-software-downloads to be shared, as well as on building capacities in knowledge .htm). Applications have been downloaded several hun- production, especially the use of digital video as a supple- dred times by users from other institutions. For example, a ment and alternative to written documentation of project Library Information Management System (LIMS) facilitates experiences. molecular genotyping through modules that make it pos- sible to track samples, schedule jobs, generate reports, and perform other tasks. LIMS has been adopted by other Institutional Approaches research facilities and customized by a private sector part- In Chile, the digital library of the Fundación para la Innovación ner. Information is shared through ICRISAT’s Integrated Agraria (Foundation for Agricultural Innovation) incorporates Crop Resources Information System (ICRIS). Available on new types of ICT to manage and diffuse public information. the Internet with password-protected access, the database It assembles all of the reports and publications, photos, vid- provides genotype, marker, and phenotype information. An eos, and presentations produced by the foundation. integrated decision support system, iMAS, has also been developed to facilitate marker-assisted plant breeding by In 2009, the International Livestock Research Institute (ILRI) integrating freely available software for designing experi- used free DSpace software to set up an open repository of its ments, mapping quantitative trait loci,5 and providing deci- research outputs. In the first 18 months, some 4,500 outputs sion guidelines to help users interpret results. were included in the service. Since the system uses open standards, the contents are harvested across the Internet and can be reused in other services—Google Scholar, the CGIAR Crowdsourcing Approaches Virtual Library, FAO’s International System for Agricultural Researchers and others are not just sitting back and waiting Science and Technology (AGRIS), and others. The same for others to provide tools to share data and information. platform has been used to develop a shared service across several CGIAR centers and initiatives. 5 A preliminary step in identifying and sequencing genes related to variations in physical characteristics of an organism arising from the interactions of multiple genes and/or interactions between 4 Originally Electronic Networking for Rural Asia Pacific. genes and their environment. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 139 BOX 6.8. Reference Management Software Preferential Access Schemes for Research in Developing Countries Reference management software, or citation manage- Even with rapid increases in Internet access and connectiv- ment software, enables researchers to organize their ity, developing-country researchers continue to face barriers research and produce a reference list nearly automati- in gaining access to scientific publications and literature, cally from the software packages that are integrated particularly the literature that is available only through a paid with word processors. More than 30 reference man- subscription. In recent years, commercial publishers have agement tools are listed on the Web. Many provide begun to provide better access to their products for some access to an academic social network free of charge, developing countries through initiatives like Access to Global and many offer both free and premium services. Using Online Research in Agriculture (AGORA), which provides free such software, researchers can organize their research, or very-low-cost access to 2,400 journals on food, agricul- collaborate with others, and discover the latest research ture, and related sciences to institutions in 107 countries; the in their areas. With Internet connectivity, scientists can Programme for the Enhancement of Research Information manage their personal research profiles and presence (PERI), which supports the efforts of developing-country and co-create a literature base on a subject or around institutions to form consortiums to pay for heavily discounted an event. Extensive comparisons of various features of subscriptions; and The Essential Electronic Agricultural reference management software are available online. Library (TEEAL), which provides a package of content that Source: Wikipedia, https://en.wikipedia.org/wiki/Comparison_of institutions can run on their own networks. _reference_management_software. Although Internet connectivity gives scientists access to the resources provided, evidence shows that individuals require significant investments in information literacy to maximize Researchers with Internet access are making their own their use of these tools. Scientists may rely on their tradi- specialized literature bases available online (box 6.8). tional information-seeking strategies and remain unaware of They are also assembling them into quite sophisticated new electronic resources. Their parent organizations need to resources that become new research products in their own encourage the use of e-resources and provide appropriate right. An example is WikiGenes. This collaborative knowl- bandwidth and training. edge resource for the life sciences is based on the general wiki idea but employs specifically developed technology to Gaining Access to Private Sector Innovation and serve as a rigorous scientific tool. The project provides a Research platform for the scientific community to collect, commu- nicate, and evaluate knowledge about genes, chemicals, Initiatives like Coherence in Information for Agricultural diseases, and other biomedical concepts in a bottom-up Research for Development (CIARD) (box 6.9) and AgriProfiles process. (box 6.10) are important to make publicly funded research results accessible (image 6.3). It is quite another challenge Such open collaboration is possible only because of the to gain access to the results of research financed by pri- Internet and the way it allows distributed systems for the vate companies. In general total agricultural R&D spending aggregation, review, and dissemination of knowledge and, by the private sector exceeds R&D spending by the public most important, the active support of a large community sector in the world’s wealthier countries. Because they oper- (Hoffmann 2008). Tools like these are a form of “expert ate for profit and need to recover their R&D investment, crowdsourcing” online. private companies seek intellectual property rights for their innovations, which typically may prevent public access and, Crowdsourcing through ICT can also be effective in research at times, even collaboration. This issue is multidimensional, projects that involve rural inhabitants. Asking farmers to send extending beyond the scope of this module, and it is treated information via mobile phone can be an effective way of in more depth elsewhere. gathering data with reduced costs and labor. In areas where mobile phones are ubiquitous, it also allows for increased Some systems permit research results from private firms to participation from a variety of farmers or farmer groups (see be shared. Innovations covered by patent rights allow the Module 15). patent holder 20 years to exploit the commercial potential of I C T I N AG R I C U LT U RE 140 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S BOX 6.9. Driving Developing-Country Access to BOX 6.10. continued Research Results: CIARDRING VIVO model to reflect the ways that agricultural research Public knowledge and research results have a lim- is organized. It also incorporated data on agricultural ited impact on agricultural and rural development research management from institutional and community when they are not easily or widely accessible. The sources. Coherence in Information for Agricultural Research In 2014, after consultation with other VIVO partners, the for Development (CIARD) initiative—pioneered by the portal changed its name to AgriProfiles. Reflecting the Food and Agriculture Organization (FAO), the Global concept of distributed but interlinked databases, and Forum on Agricultural Research, the Consultative operating in an open data environment as part of a wider Group on International Agricultural Research (CGIAR), effort to bridge separately hosted directories and online and other partner organizations—aims to overcome communities, AgriProfiles aggregates profiles of agricul- this barrier by increasing awareness of how new types tural experts and organizations across regions, countries, of ICT and associated institutional changes expand and institutions. An AgriProfiles data provider may be options to manage and present information differently any institution, project, or platform managing profiles of and economically. One of the principal tools created people and/or organizations and contributing data to the through CIARD is the CIARD Routemap to Information global AgriProfiles. Some of these data providers contrib- Nodes and Gateways (CIARDRING). CIARDRING: ute data to Agriprofiles directly from internal databases or  Provides a map of accessible information sources files. Others have their own “AgriProfile” website, where with instructions for searching them effectively. their data are searchable and in many cases have their own  Provides a data set–sharing platform for agriculture. system for letting users update their profiles. Among the  Provides examples of services that follow good data providers are hubs such as Agricultural Information practices for interoperability. Management Standards (AIMS) and e-agriculture. Source: http://www.agriprofiles.net/page/background.  Clarifies the level and mode of interoperability of information services.  Provides instructions for building enhanced integrated services that repackage information in IMAGE 6.3. Accessing Private Sector Research Could different ways. Have Wide Impacts on Poor Agriculture This functionality makes CIARDRING a true map for users to discover, access, and use sources of agricul- tural information. Source: CIARD (http://www.ciard.net/). BOX 6.10. AgriProfiles, a Global Search Portal of Profiles of Experts and Organizations Started at Cornell University in 2003, VIVO is a research- focused discovery tool that enables collaboration among scientists across all disciplines at Cornell University. Users can browse information on people, departments, Source: Jonathon Ernst, World Bank. courses, grants, and publications, following an ontology- based navigation system. In 2012, Cornell University, the Global Forum on the patented innovation, in exchange for publicly disclosing Agricultural Research (GFAR), and FAO launched the innovation in a patent database. This practice is meant to AgriVIVO. AgriVIVO, funded through GFAR, adapted the enable other researchers to build on the initial innovation. The largest searchable patent databases include PATENTSCOPE (continued) from the World Intellectual Property Organization, with ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 141 close to 2 million patent applications submitted worldwide. Unfortunately, beyond the use of ICT for everyday com- The Patent Full-Text Databases (from the U.S. Patent and munication and Internet access, research institutions may Trademark Office) and Espacenet (from the European Patent offer few incentives to undertake ICT-enabled research Office database) offer 60 million patent documents from that deviates from traditional paths and uses newer types over 80 countries.6 of ICT, especially if that research involves gaining access to proprietary information and ICT tools (or even paying Initiatives like the African Agriculture Technology Foundation fees for ICT services). This lack of incentives represents (AATF), the International Service for the Acquisition of Agri- a major challenge to using ICT for agricultural research, biotech Applications (ISAAA), and the Public Intellectual especially in rural areas where difficulties like the lack Property Resources for Agriculture (PIPRA) enable develop- of electricity and weak telecommunications connections ing countries to maximize access to promising technologies abound. and innovations developed by the private sector. Such efforts are built on smart access to relevant developments in the pri- As for open access to research products, low investment in vate sector, insights into local research interests, and broker- technical infrastructure, in sustaining research capacity, and ing between the various parties. A review of these initiatives in research itself has left many countries on the margins of would be very valuable. global digital society and innovation, most notably in Sub- Saharan Africa (Karanja 2006; Kashorda and Waema 2009; RUFORUM 2009). Such marginalization reduces awareness LESSONS LEARNED of and the capacity to adopt the international standards As part of a personal research toolkit or dashboard for scien- and methodologies required to participate in open digital tists and those they work with, ICT is essential to delivering information sharing. In this context, the efforts made by today’s research. Lessons learned in using these types of organizations to overcome institutional inertia, join together, technology for agricultural research are summarized here; and develop collective and accessible research informa- the discussion also highlights the key enablers for designing tion repositories and services are immensely important. and implementing ICT-enriched research initiatives. Although each institution will have its own priorities and constraints, all can subscribe to common approaches. First, ensure that each researcher has basic levels of e-literacy and ICT access. It is critical to convince managers An additional major challenge in research is for organiza- and funders that ICT is “basic” to research, not just a desir- tions and individuals to truly grasp the emerging possibilities able add-on. Beyond the level of the individual scientist or and be willing to use them. One aspect of this challenge is researcher, many opportunities for using ICT in research awareness: Which of all the possible tools and investments require significant institutional investments to have a real will work best, and where? Who has the skills to make them impact on research itself or the targets of research. work? What “fallout,” positive and negative, will the organi- zation experience if they are used? What is the best portfolio The lack of systematic investment in ICT by research of ICT-related investments for my particular set of individual, institutions and their funders often holds researchers back project, or institutional goals and challenges? The use of new from adopting and using ICT (Balaji 2009; FARA 2009; GCARD types of ICT is also a risky and change-making business. Just 2009; Karanja 2006; Kashorda and Waema 2009; RUFORUM adopting a new tool can trigger major changes in workflows, 2009; UNCTAD 2010). Like funding for agricultural research procedures, processes, culture, and hierarchy that force a more generally, investments in ICT for agricultural research wider assessment of business processes. Legacy IT sys- must increase, and this issue should be at the forefront of tems as well as institutional processes and power relations the agricultural research discussion. Thinking carefully about are often threatened. how ICT might contribute to research projects is critical to tapping the wide range of opportunities available throughout Finally, taking full advantage of ICT and digital tools in agri- the research process. cultural research is a challenge for even the smartest, best-funded scientific institute. A research organization 6 For a 2010 review of patent databases, see “The Patent Librarian’s that has been transformed through ICT needs people and Notebook” (http://patentlibrarian.blogspot.com/2010/02/pat- leadership with skills to develop a vision for e-research ent-database-review.html); IFPRI, Bioversity, and other CGIAR research centers have published more general reviews of intellec- and align ICT investments with research and innovation tual property and related issues in agricultural research. processes, ensure that staff acquire the necessary skills, I C T I N AG R I C U LT U RE 142 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S redesign institutional processes, adopt open standards ƒ Support the creation of a fixed-time, fixed-quantity, and access to knowledge, change staff mind-sets, give fixed-quality, and fixed-price supply model (intensive staff access to ICT tool sets, invest in technological infra- management for food-related industries), by structure and networks, and innovate and experiment— centrally managing data in the cloud (production among other needs. Devising and developing the optimal schedules, production history, harvest volume, ICT investment portfolio for a national research institute or and planting information) from the several hundred network is a major challenge. to several thousand contract farm product suppliers across Japan. Because the status of products can be ascertained from the production stage, contract INNOVATIVE PRACTICE SUMMARY producers can manage their operations to support Fujitsu “Akisai” Cloud Initiative for the Food procurement based on the fixed-time, fixed-quantity, and Agricultural Industries and Research fixed-quality, and fixed-price model. Since 2008, with an updated version launched in 2012, By offering the cloud service for agriculture, Fujitsu aims the Fujitsu Group has been field-testing the Akisai to promote a shift toward a new enterprise-like agricul- cloud for food and agriculture. Based on the concept tural research and management approach that improves of “utilizing ICT to ensure plentiful food supplies in the agriculture and food markets by ensuring a plentiful, safe future,”7 Fujitsu’s service is the first of its kind worldwide, supply of food at all times. designed to provide comprehensive support to all aspects of agricultural research and management. This SaaS- based solution leverages cloud computing to support agricultural administration, production, and sales for field INNOVATIVE PRACTICE SUMMARY crops, horticulture, and animal husbandry. To date, this KAINet Kenya Knowledge Network Anchored initiative has demonstrated substantial results, leading to in Partnerships and Collaboration transformational changes in companies’ work patterns, The Kenya Agricultural Information Network (KAINet) improved productivity, and the training of a new genera- project, supported by FAO, encourages and assists tion of farmers. Kenyan agricultural organizations to capture and share infor- mation in a series of repositories. The network, launched With the on-site utilization of ICT as a starting point, the ser- in 2009 and supported by the Ministry of Agriculture, vice aims to connect distributors, agricultural regions, and provides training and support. The network’s website consumers through an enhanced value chain by providing allows researchers to query the resources of all member SaaS applications for end users such as farmers, researchers, institutions at once. The repositories include around 4,000 and agribusiness operators, among others. The SaaS-based full-text digital documents generated by the institutions, agricultural production management solution enables end with around 40,000 metadata records that conform to users to: international coherence standards to facilitate access and ƒ Visualize processes at farm sites, by using mobile sharing. The network is guided by a national stakeholder devices to collect, store, and analyze data in the forum, a board of trustees, and a network management cloud, such as the results of daily on-site operations committee. and planting information. Fujitsu’s solution enables customers and researchers to visualize quality and Like the thematic service GFIS, mentioned earlier, KAINet cost figures for each of their planted fields. By relies on distributed action by different organizations, their leveraging these accumulated data, farmers can look compliance with standards, and sufficient connectivity for back on the results of previous plans and modify the the harvesting and virtual querying of the databases. The farming schedule in the future, enabling enterprise- collaboration between national institutions and international style agricultural management that improves both partners under the project ensured the effective use of earnings and efficiency. national resources and leveraged knowledge of international best practices. An important aspect of KAINet is that it is integrated 7 h t t p : / / w w w. f u j i t s u . c o m / g l o b a l / a b o u t / r e s o u r c e s / n e w s into national and institutional policies and strategies. /press-releases/2012/0718-01.html. Its outputs and resources, such as the institutional and ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 143 national repositories of agricultural information, complement that it would enhance existing work and not remain an iso- national and global initiatives aimed at sharing information. lated initiative. The initial planning and partnership-building Its training programs support the development of human phase was critical for success, because it provided an under- capacity in information and communication management. standing of the institutions’ information and communication management needs and helped partners develop a basis for Experiences with KAINet have been carefully documented. collaboration. Among the lessons and enabling factors that emerged, a major lesson is that piloting the network with a limited num- The development of adequate capacities in information and ber of national institutions allowed the partners to learn and communication management (including physical infrastruc- devise workable solutions before expanding the network. ture) was essential for developing open repositories, and The management and steering committees played important these capacities should preferably be built early in a network- roles in promoting the network, involving the management ing project. Because networking contacts were the basis for of partner institutions in its development, and guiding proj- collaboration and project operations, telephone and email ect activities. Linking the project to the priorities and plans groups were essential for constant communication among of partner institutions added credibility to KAINet, ensuring partners. Topic Note 6.2: ICT, DIGITAL TOOLS, AND EXTENSION AND ADVISORY SERVICES TRENDS AND ISSUES security, market development, and climate change chal- Rural people must be able to respond quickly and effectively lenges (Christoplos 2010). to the opportunities and challenges of economic and tech- In the context of rural advisory services, ICT devices and nological change, including opportunities to improve agri- techniques have four broad functions. First, they can deliver cultural productivity and food security. Innovation is more or provide access to information. They should address the successful when producers can communicate with and need for localized and customized information—adapted be heard by their peers, local authorities, and institutions. to rural users in a comprehensible format and appropriate Producers also require relevant knowledge and information, language—to give small-scale producers as well as provid- including technical, scientific, economic, social, and cultural ers of advisory services adequate, timely access to technical information. To be useful, this information must be available and marketing information, as well as information or support to users in appropriate languages and formats. At the same related to new technologies and good farming practices time, it must be current and communicated through appro- (image 6.4). It is not just a matter of getting information out. priate channels. A key aim is to give rural people the facilities and skills to find the information and answers they need. This topic note outlines key issues involved in using ICT to convey demands for rural advisory services and deliver those A second, broad function of ICT is to organize the knowl- services effectively. Although there is convincing evidence edge base for extension and advisory services. ICT should that ICT can revitalize interactions between research and help document and store information for future use. In many extension/advisory services in ways that respond to farm- cases, information and knowledge on technologies and good ers’ demands, the use of ICT is merely one element in the practices is available only in hard copy or in people’s heads, wider transformation of a traditional, top-down, technology- and data are incomplete, scarce, or inaccurate. Local and driven extension system into one that is more pluralistic, indigenous knowledge is often transmitted orally, records are decentralized, farmer-led, and market-driven. One role of often unavailable, and information is dispersed only to nearby ICT is to contribute to the many reforms that are urgently family and friends. All of this knowledge, like the knowledge needed to empower and support small-scale farmers as that emerges from research, needs to be documented developing countries seek to respond successfully to food and organized for reuse. The challenge is evident from the I C T I N AG R I C U LT U RE 144 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S IMAGE 6.4. Matching ICT to the Diverse Needs of need to focus on ways to empower rural communities to Farmers Is Critical connect with one another, not just to the outside world. Facilitating linkages between market actors, extension and advisory services, and smallholders along value chains is also essential. Fourth, ICT needs to empower rural communities. ICT should help farming communities “gain a voice” to convey needs and demands, negotiate better deals with other actors in value chains, and generally get practical benefits from the services intended for them (and otherwise avoid being exploited). One key to empowerment is for rural people to acquire the ICT skills and tools to tell their own stories, and provide feedback on services received in their own words and languages, in ways that reach and influence others (see Module 8 on farmer organizations for additional information on ICT and collective action). Throughout the developing world, ICT is being integrated into classic rural advisory services through conventional channels (radio, television, video, print media, libraries) and newer options (text and voice messaging, the Internet, and mobile services). Advice and information provided via ICT is becoming more varied, covering specific technologies and practices; climate change mitigation and adaptation; disaster management; early warning of droughts, floods, and dis- eases; price information; health and nutrition advice; political empowerment; natural resource management; production efficiency; and market access. It is not a one-way flow: ICT opens up new channels for farmers to document and share Source: Neil Palmer, CIAT. experiences with each other and with experts (IICD 2006). See IPS “Participatory Video and Internet Complement Extension in India” and Module 4. scattered nature of the information, its multiple “formats,” and the general lack of attention to documentation and Some of the likely trends in the use of ICT for rural advisory learning in advisory services. Researchers are rewarded for services over the coming years include (Ballantyne 2009): publishing, but extension workers, advisers, and farmers are ƒ Many advisory services may be privatized as the motivated to deliver “practical” results; documentation is agricultural sector becomes more commercial, as only a potential by-product. other actors step into this arena, and as clients Third, ICT needs to connect people and networks. ICT can are willing to pay. Some services—for small-scale facilitate networking—locally, regionally, and globally—and producers and natural resource management, for foster collaborative and interdisciplinary approaches to prob- example, which excite less interest from commercial lem solving and research based on shared knowledge and providers—will continue as public services. collaboration (Nyirenda-Jere 2010). Many nongovernmental ƒ Various types of ICT, including devices and software, organizations (NGOs), research organizations, and national will become more available, much cheaper, and more ministries have used ICT to improve access to technologies affordable, even in rural areas. and knowledge in their rural advisory services, by means of ƒ Connectivity will become more pervasive and more rural telecenters, community knowledge workers (CKWs), mobile. More devices will be “smart” and perform online networks, and various types of forums. They also multiple operations. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 145 ƒ Farmers and rural communities will be regarded services is accumulating rapidly—albeit mostly through far less as “passive” consumers of advice relatively small-scale programs. Likewise, the literature and information; through ICT, as well as other analyzing these experiences is growing. The findings have developments, they are becoming active participants in been mixed so far, and there is a clear need to use these formal rural knowledge and innovation systems. findings when developing and refining programs using ICT ƒ Traditional public advisory services will be challenged in advisory services. This area requires much more atten- by the emergence of new actors with alternative tion, given the growing interest in reinvigorating support ICT-based business models. To remain relevant and for agricultural extension and advisory services—particu- competitive, public extension and advisory services larly if new and demonstrably more effective and sustain- will need to reinvent or transform themselves, making able approaches can be found. the strategic use of ICT part of the change process. Some developing countries have moved quickly to enable ƒ There will be much experimentation and innovation farmers to interact in real time (or close to it) with advi- by governments, NGOs, the private sector, and new sory services through ICT. Until ICT offered farmers a infomediaries to develop and test ICT-based services channel for communicating directly with distant techni- and business models to better reach or engage with cians and experts, many farmers could wait months or rural communities. The challenge will be to scale years for an extension worker to provide technical advice, these out to reach specific target groups or broad and often that advice did not address their immediate groups of marginal communities. concerns (image 6.5). The following examples highlight The more complex and dynamic interactions characteristic of some of the ICT applications that advisory services have innovation systems, including the interactions fostered through used to improve their interactions and sharing of technical ICT, will require farmers and advisory service providers to knowledge with farmers in developing countries. These acquire new skills, both technical and entrepreneurial (Swanson applications include Web services like “ask the expert,” and Rajalahti 2010). In some instances, ICT tools themselves mobile messaging for advice, radio programs to dis- can enable farmers and service providers to attain these skills; in seminate technical information, and video. Many of these others, special capacity-building efforts will be needed. This dis- endeavors are fairly new, limiting practitioners’ ability to cussion is beyond the scope of this topic note, but helpful infor- analyze their effectiveness. mation is available (see World Bank 2012, especially Module 4). Informing the Extension Agent and Advisory In the remainder of this note, the discussion of ICT in advi- Service Providers sory services contains examples and innovative practice summaries that illustrate practical strategies for integrating Two projects improve the ability of extension/advisory ser- farmers’ demands into advisory services and that discuss vice providers to respond to farmers’ needs by improving the their relative strengths and weaknesses. The examples and quality and relevance of information available to both groups. practice summaries also illustrate some of the social and economic outcomes that can arise when ICT supports the wider webs of communication that characterize effective IMAGE 6.5. Timely Advisory Services Improve the innovation systems. Effectiveness of Other Technologies ICT FOR EXTENSION AND ADVISORY SERVICES ICT has great potential to transform the way public exten- sion and advisory services are organized and delivered— including interactions with farmers. It is also an entry point for nontraditional actors that see advisory services as an area of intervention and for giving greater emphasis to subjects that are traditionally deficient in extension and advisory services. ICT can also increase women’s access to advisory services. Experience with a vast variety of approaches to the use of ICT in extension and advisory Source: Thomas Sennett, World Bank. I C T I N AG R I C U LT U RE 146 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S The first was launched in the Arab Republic of Egypt and the was to extend the reach of centralized expertise and transmit second in Uganda. farmers’ concerns more clearly. Via mobile phones, CKWs provide information on three-day weather forecasts, sea- Egypt launched a Virtual Extension and Research Communication sonal forecasts, good farming and husbandry practices, input Network (VERCON)8 in 2000 to develop and strengthen links supplies, and markets. The subject matter for each of these among the research and extension components of the national topics comes from expert partner institutions like the Uganda agricultural knowledge and information system. By improving National Agro-Inputs Dealers’ Association and Uganda’s research-extension linkages, the initiative aimed to improve National Agricultural Research Organization. advisory services for Egyptian farmers, especially resource- poor farmers. Early findings indicated that women and poorer farmers frequently used the service and that farmers generally VERCON-Egypt introduced and tested several innovative acted on the information. At first, however, CKWs required communication tools. One of the most useful tools is the intensive training in mobile technologies, agricultural informa- Farmers’ Problems Database, created explicitly to address tion, survey techniques, and business skills to be effective.9 farmers’ problems. The Web interface enables extension More analysis of this experience, and of others like it, will agents to pose questions on behalf of farmers seeking be needed to validate these findings. solutions to agricultural problems; they can also examine answers to questions already posed to researchers. Content is classified into four main categories of problems: produc- Using Radio and Video to Reach Rural Farmers tion, administration, environment, and marketing. Compared to the most novel and technically sophisticated mediums of communication available, radio remains the The online database and tracking system enable farmers’ most pervasive, inexpensive, popular, and socioculturally questions to flow from provincial extension centers to appropriate option in many parts of the developing world. the national extension directorate and research system. Radio is still the only medium for disseminating information Producers approach extension centers with problems, rapidly to large and remote audiences, including critical infor- and if they cannot be solved using online resources such mation about markets, weather, crops, livestock production, as extension bulletins or agricultural expert systems, the and natural resource protection. Video has also had substan- extension agent develops a full description of the problem tial impacts in convincing farmers to try new technologies; and his or her proposed solution, which is forwarded to a the images, demonstrations, and audio narrative can make specialized researcher, who provides advice to address the information easier to understand and apply, especially for it (El-Beltagy et al. 2009). The problems and solutions are audiences with limited literacy. added to the online database to assist other users of the network who face similar problems. Rural radio is distinctive in relation to urban radio and most national radio networks. It is directed specifically to a rural Aside from addressing farmers’ problems, the system audience with particular information needs, and it often provides valuable information to track farmers’ problems, includes authentic stories and experiences from commu- including their incidence and significance. The system makes nities and successful farmers. Rural radio can motivate farmers’ problems more visible and quantifiable for research farmers, promote the exchange of views, and draw their planners, and chronic problems can be addressed in research attention to new agricultural production ideas and tech- projects. From 2006 to 2008, over 10,000 problems and their niques. Rural radio can be highly interactive (box 6.11). solutions accumulated in the interactive database, and over Communities, far from being passive listeners, actively 26,000 farmers benefited from the system (FAO 2008). plan the production of broadcasts that are an expression of community life and concerns. In Uganda in 2009, the Grameen Foundation established a distributed network of intermediaries, called CKWs, who Rural radio producers must know the rudiments of agricul- used mobile devices to collect and disseminate information ture, be familiar with farmers’ agricultural problems, and have to improve the livelihoods of smallholder farmers. The idea a good general understanding of rural life to ensure that their 8 See http://www.e-agriculture.org/content/egypt-vercon-virtual 9 For results of the initial review, see Grameen Foundation USA -extension-and-research-communication-network. (2013). ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 147 BOX 6.11. Interactive Radio Programs Perform starting point should be a participatory needs assessment Governance Roles and Services to evaluate not only the material needs of communities that will benefit from the project but also the perceptions, The financial, political, and social capital available to radio expectations, and commitments that community members stations directly affects the kinds of programs and mes- can bring to the initiative. sages that are directed toward farmers. For example, stations managed and funded by the communities they Radio overcomes some of the most challenging issues serve may emphasize the local context and locally avail- related to using ICT in advisory services: able resources. Commercial and private stations may ƒ Accessibility. Radios are relatively cheap to produce be more inclined to enlist agro-dealers or businesses and distribute and do not need electricity or special as sponsors of programs, which bias the programming. skills to operate. They can also be shared by groups Public stations, funded by government agencies, may of listeners. A key challenge for rural radio is to reach reinforce national policies and may not accommodate female producers. Radio programs should target the locally specific needs of rural communities. women producers, although ensuring women’s access to radios in the household may not be so easy. Radio-based extension activities, particularly interactive Often, men own the household radio and choose the programs, can perform several governance roles and programs to listen to, which may not be relevant for services: women producers.  They can help to provide feedback on government ƒ Literacy and language barriers. Radio requires no initiatives—for example, by monitoring the uptake reading and generally speaks the language of the and impacts of government policies (on land use, community it intends to reach. crop specialization, and other issues affecting rural ƒ Geographic coverage. Radio can easily and areas), including unintended consequences. simultaneously reach large numbers of isolated  They can provide feedback on land grabbing and communities over vast geographic areas. land disputes. Radio can offer an inclusive and safe ƒ Local focus. Radio can focus on local issues in local venue for discussing sensitive issues around land languages. United Nations Development Programme and land use changes between various stakehold- (UNDP) notes that in Latin America, for example, ers, particularly if listeners can contact the station most radio programs are locally or nationally produced, anonymously. whereas only 30 percent of television programming  They can rapidly provide information on natural comes from the region. disasters, food security, and climate-related issues. In Liberia and Sierra Leone, for example, local radio New ICT has benefited radio by offering better and cheaper stations played a key role in delivering information means of recording, mixing, editing, and transmitting to remote villages about Ebola prevention, while (e.g., the digital audio recorder, audio editing on computers, also tracking the rate and locations of infection, and the electronic transmittal of sound programs as attach- and advising where to seek treatment. ments) (image 6.6). Development practitioners increasingly Source: Rao 2015. recognize the potential for combining radio with new Internet technologies and mobile phones, although limitations must be considered, including the lack of telecommunications infrastructure in some areas and the cost of mobile phones programming is relevant to their audience. Production teams and other ICT devices. are taught to work with farmers and, to the extent possible, organize broadcasts directly from the field in open-air gather- Like radio, video has the advantage of attracting people’s ings in which entire villages or communities participate. curiosity, and it appears to be an especially convincing medium when it captures familiar people or situations (as Program content is generated through participatory dis- does local participation in radio broadcasts). Advances in cussions with community representatives and presented ICT have made video much easier and less costly to pro- in languages and formats to which the audience relates duce, disseminate, and preserve for all to use (box 6.12). socially and culturally. For every rural radio project, the Like radio, video does not demand literacy, and images can I C T I N AG R I C U LT U RE 148 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S IMAGE 6.6. New Technologies Have Allowed for More Through videos developed in collaboration with farmers and Innovative Radio Programs shared with local radio stations and farmer organizations across Africa, the Africa Rice Center widely disseminated information about rice production, processing, and market- ing opportunities (van Mele, Wanvoeke, and Rodgers 2013). The series of 11 videos (in 30 languages) has reached more than 500 organizations and probably hundreds of thousands of farmers, stimulating learning and experimentation in rice production from field to market. It is likely that the videos continue to be copied and distributed more widely, but this spontaneous diffusion and any resulting innovation are difficult to monitor and evaluate. The videos appear to have had a tangible impact on the livelihoods of rural women. Because the videos featured women, they reached more women, who were more likely to apply what they learned (Africa Rice Center 2014). For Source: Farm Radio International. example, women who saw the video on parboiling rice improved their parboiling techniques and marketed their rice through new outlets (Zossou et al. 2012). Others devel- BOX 6.12. Access Agriculture’s Web and Social Media oped a better relationship with the NGO that showed the Platforms for Sharing Training Videos video, formed producer groups, and gained assistance from Access Agriculture, an international NGO, showcases the NGO in obtaining credit to purchase inputs for improv- agricultural training videos in local languages as well ing rice production. The NGO, in turn, recognized the effec- as in English and French. Users can search its website tiveness of the video format and began to use more visual (www.accessagriculture.org) for training videos on agri- aids in its work with women. The fact that the videos show- cultural production and download them or order copies cased women’s expertise and innovation convinced some on DVD. The audio tracks can also be downloaded by male researchers that they should work more with women radio stations for wider dissemination. farmers. Giving a voice to women and other marginalized groups in this manner and involving them in the develop- This Web platform—primarily designed for agricultural ment and dissemination of agricultural technology may be R&D staff, service providers, and extension agents, an effective means of promoting greater social inclusion.10 among others—hosts training videos on 14 types of agricultural products, including cereals, vegetables, fruits, livestock, and fish, as well as technical topics Making Information Accessible through Mobile related to (e.g.,) integrated pest management, agribusi- Phones and Internet ness, and mechanization. Colombia’s Ministry of Agriculture and Rural Development, The development team is now testing Agtube, a social in collaboration with partners, facilitates AGRONET, the media platform for rural people in developing countries. National Agricultural Information and Communication Individuals (including researchers) and communities can Network of Colombia. AGRONET is a network of agricultural share their experiences on this platform by registering at information providers that have adopted a common platform www.agtube.org. to standardize and integrate resources to offer value-added information and communication services for the agricultural Source: http://www.accessagriculture.org/. sector using modern and traditional ICT devices. To send relevant information to producers, AGRONET devel- make it easier for viewers with little formal education to ops user profiles based on a needs assessment and on understand complex topics. An additional benefit is that video can foster social cohesion in agricultural communities by featuring the actions and voices of marginalized groups 10 To see the rice videos, visit http://www.africarice.org/warda (Lie and Mandler 2009). /guide-video.asp. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 149 users’ particular productive activities. AGRONET introduces be defined before the work is under way. The approach will new methods and improved workflows to provide content involve some loss of control and very probably unexpected systemically, and it takes advantage of mobile technologies impacts. to reach a growing number of rural users. Producers receive text updates on AGRONET’s platform, including changes in People will use a system for sharing information, including its databases and other news and events pertinent to agri- agricultural information, if the content is adapted to local culture. The ministry has expanded the service (initiated in needs, sourced appropriately, and presented suitably. In 2005) to provide context-specific information on agricultural Costa Rica, a national team conducted a participatory rural markets, inputs and supplies, weather alerts, and other sub- communication appraisal in selected regions to engage jects. Over the medium term, AGRONET plans to provide a farmer organizations in sharing their knowledge. In the greater wealth of content and information services to pro- Brunca region, for example, livestock production dominates ducers by adding capacity in digital television. agriculture, and farmers identified livestock diseases as an important concern. One participant, a woman, was famous The government’s efforts to reduce the digital divide through for her knowledge of how to cure sick cows. The organiza- public-private partnerships and growing broadband pen- tion decided that the best way to document her knowledge etration in rural municipalities catalyzed the development of was to film her. The videos could be shown at the local live- AGRONET’s innovative, value-added information services. stock auction and remain available digitally on the national An assessment by Colombia’s e-Government Program PLATICAR (“talk”) Web platform.11 ranked the ministry first in online information provision. In other regions where the participatory method was used, it elicited information and knowledge on other themes. Farmer organizations producing tuber crops decided to pre- ICT THAT PRESERVES AND SHARES FARMERS’ pare radio programs that were broadcast and then archived KNOWLEDGE on PLATICAR. For rice producers, information sheets were Various types of ICT—including technologies that have been developed on each of the many rice varieties in Costa Rica. available in rural areas for some time, like radio, and others that have become more common only recently, such as digi- The participatory approach that led to the choice of the most tal video—bring farmers’ views and voices into agricultural knowledgeable person was the innovation that enabled farm- advisory and research services. ICT is invaluable for eliciting ers to recognize that their own local and traditional knowl- and preserving local knowledge, such as knowledge of the edge was most appropriate for their needs. The innovative medicinal traits of plants or traditional erosion control prac- decision was to select the best medium for sharing this tices. The following sections illustrate how rural people in a knowledge, as well as the place and time where it would range of settings have benefited from and enriched advisory be shared most effectively. The fact that the information is services through greater participation and knowledge sharing digitally preserved means that it can be archived and avail- mediated by ICT. able through PLATICAR. The team that led the participatory process was the key enabler, because it built trust among stakeholders and brokered the sharing of personal knowl- Using ICT to Share and Elicit Local Knowledge edge that could benefit the whole group. Many organizations and governments see ICT devices as tools that bring information and modernity to rural areas— that get messages “out” to the hinterlands. Undoubtedly Documenting and Mobilizing Indigenous Knowledge ICT extends the reach of extension and advisory services, A related information-sharing effort documents indigenous but they can become one-way pipelines, pushing informa- knowledge (image 6.7). As experienced farmers migrate tion to uninterested communities. A more inclusive approach to urban areas, as the local farming population ages, or as uses ICT to empower rural people to document their own climate change and social upheavals uproot agricultural com- knowledge so it can be shared with other communities and munities, much knowledge can be lost. This knowledge is with extension/advisory service providers. This empowering worth preserving simply for its cultural value, but it is also approach is more challenging, because it depends on the capacities of the communities and their willingness to share 11 Plataforma de Tecnología, Información y Comunicación their knowledge. For their part, proponents of the approach Agropecuaria y Rural (Platform for Agricultural and Rural must be willing to use ICT to enable changes that cannot Information and Communication). I C T I N AG R I C U LT U RE 150 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S IMAGE 6.7. Farmer-Led Documentation Processes Can In South Asia, in an effort to increase their impact, organi- Use Digital Tools in Place of Paper zations working with rural communities in Bangladesh and India embarked on a process of Farmer Led Documentation and Knowledge Sharing (MISEREOR 2010). Farmer-led docu- mentation is defined as an empowering process in which local communities take the lead role in the documentation process. The results are used by community members for learning within the community (internal learning) and exchange between communities (horizontal sharing) and among communities, development agents, and policymak- ers (vertical sharing).13 This process of engaging with farm- ers to document their knowledge and experiences showed that a “people-led development process does not only help increase yields or conserve the local biodiversity; it can also help farmers to get access to the resources they need and Source: Charlotte Kesl, World Bank. can contribute to strengthening local organizations, net- works, and alliances…. Most important of all,…it leads to instrumental in aiding researchers and extension workers to empowerment” (MISEREOR 2010). develop and adapt technology and practices for local condi- tions (and could help communities recover from natural disasters and conflicts). ICT TO MONITOR AND EVALUATE AGRICULTURAL INTERVENTIONS In Bolivia, the Communication and Training Centre for AND RESEARCH Natural Resources Management and Sustainable Agriculture Monitoring and evaluating the outcomes of research results (CARENAS) project was initiated in 2003 in the Department (such as new varieties and management practices), the of Santa Cruz to strengthen rural communication for sustain- construction of agricultural infrastructure (often involving able natural resource management and rural development. contractors), or the impacts of extension and advisory pro- Representatives of municipalities, farmer associations, and grams or new technologies in a decentralized rural setting NGOs participated in intensive training for one month in com- can greatly benefit from ICT. ICT can transform monitoring munication methods and techniques, the use of ICT, and the and evaluation, which are often afterthoughts in agricultural production and use of multimedia materials in the field. The interventions because of the difficulties associated with 21 people who passed the course became local audiovisual analyzing impact. Monitoring and evaluation are expensive specialists, who engaged in a participatory process with advi- (entailing the costs of traveling, producing materials, hiring sory service workers and farm communities to elicit farmers’ experts, and analyzing data), especially for poorly resourced traditional knowledge and integrate it with technical knowl- public agencies. It is often a challenge to measure impact edge. Based on this interaction, the audiovisual specialists accurately because many variables cannot be controlled, produced initial videos, which were validated through focus including unanticipated changes in weather, conflict, natural group discussions, interviews, and farmer extension meet- disasters, or community or farmer health. ICT can address ings. The videos were then shown to the communities and, some of these challenges by reducing the paper trail, after participatory evaluation, final versions were produced. increasing farmers’ responses (and the diversity of respon- They were distributed to 25 communities in 11 municipali- dents), improving remote observation, and expanding data ties.12 The videos—which demonstrated such techniques as accuracy. It should be emphasized that methods for employ- repairing drainage ditches using nets and vegetative cover, ing ICT and digital tools in M&E are at a very early stage of recycling organic waste, and building compost latrines— development and adoption. Much more needs to be learned eventually formed part of a training package consisting of about how these tools can best be employed. printed guides for trainers and booklets for farmers. 13 The farmer-led documentation approach was promoted by 12 See “Information, Communication, and Training for Natural Participatory Ecological Land Use Management (PELUM), Resource Management and Sustainable Agriculture—Bolivia” Promoting Local Innovations (PROLINNOVA), and OXFAM (http://www.fao.org/tc/tcdm/italy/op_bol034_en.asp?lang=en). Novib. See www.prolinnova.net/fld.php. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 151 India has pioneered the use of ICT in many agricultural maps and a set of recommended actions are shared with interventions and is often at the forefront of technologi- rural communities through the information centers. Every cal innovation for smallholder farming. To track research village has at least one individual who is trained in reading being conducted in India, the Indian Agricultural Statistics the vulnerability maps. Research Institute developed the Project Information and Management System for the Indian Council of Agricultural Analyses of the effects of this intervention reveal that after Research (PIMS-ICAR). This data management system two seasons, a large number of individuals started to use the was created to prevent duplication between research color-coded maps as reliable information resources. In 2009 projects, monitor research initiatives and their progress in India, a particularly serious drought was forecast at the more effectively (and simultaneously at the national and micro level, although not at the aggregate level. Rural fami- state levels), evaluate research outcomes, and contribute lies prepared for the anticipated drought by storing fodder to smoother management processes. Users involved in and not sowing water-intensive crops such as rice. Through research projects can upload information on new projects these actions, they mitigated the effects of the ensuing and update information as the project moves forward. Users drought, which was serious, lasting more than halfway into can also browse through projects, which helps to spur the season. Using ICT to monitor weather patterns as well innovation and creative thinking while preventing overlap. as farmers’ responses helps VASAT determine the correla- Research directors and managers can then manage and tion between the two. In this intervention, it was significant monitor agricultural interventions and research remotely and that women were key factors in absorbing and relaying with fewer costs. In addition, the management system can information about vulnerability to drought. They were also archive research data and final reports. meticulous data providers for experts to refine or correct the vulnerability forecasts. In another project, which monitored drought vulnerability, local participants played key roles in validating and evalu- Pajat Solutions Ltd., a company founded in 2009 and ating the effectiveness of the information provided. The financed by the Finnish Funding Agency for Technology and Virtual Academy for the Semi-Arid Tropics (VASAT14) uses Innovation, among others, has also pioneered ICT for moni- components such as PC-equipped rural information cen- toring and evaluation. It has developed Poimapper for use ters, community radio, and mobile telephony in conjunc- on GPS-enabled mobile phones to collect geotagged data tion with human-centered efforts to anticipate and monitor and photos, which can then be uploaded to a central data- the effect of drought at the micro level. Since 2005–06, base through cellular or bandwidth networks. Data collected activities under this initiative have taken place in Niger and for a particular intervention can be mapped on a computer; in India. In both locations, rural organizations established multiple data sets can be layered to create more informative community-based information centers with international maps. This tool can be used to monitor a variety of projects, support. The focus was on helping rural communities including projects to develop infrastructure such as wells or anticipate droughts and to help them develop and arrive at to manage forests (see Module 15). It may also be used to decisions that can mitigate the impact of droughts when monitor the effects of agricultural interventions by mapping they occur. data on increases or declines in crop yields or frequencies of livestock disease. In the VASAT initiative, a blend of remote sensing and agro-meteorology techniques was used to develop highly In Africa, organizations have used mobile phones to collect localized, village-by-village forecasts of drought vulnerabil- information from farmers about how they can improve their ity. These forecasts were presented as simple color-coded programs, as illustrated in box 6.13. maps of the locality (a cluster of adjoining villages). Red/ amber indicated severe vulnerability to droughts (includ- ing drinking water scarcity), whereas green indicated that LESSONS LEARNED business as usual could continue. Yellow indicated that the Lessons from the examples presented in this note and village needed to give attention to altering cropping patterns accompanying innovative practice summaries are relevant and pay attention to fodder supplies. Developed for the com- to many projects that use ICT to improve advisory services. ing season from global and regional rainfall forecasts, these The lessons highlight the many challenges that remain, and the discussion that follows describes options for 14 https://core.ac.uk/download/files/449/12107443.pdf. addressing them. I C T I N AG R I C U LT U RE 152 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S BOX 6.13. Mobile Phones as Tools for Farmer Surveys appropriate. The focus should be on what the technology and Feedback needs to deliver, not its capabilities. Voice of the Farmer (VoF) is a pilot project testing a Accountability improves when participants are aware of what structured approach to using mobile phone technology is expected from them in terms of their roles and their com- to obtain broad-based, low-cost, and frequent feedback mitments of human and financial resources and time. This from farmers in Kenya, Tanzania, and Uganda. The pilot clarity is especially important for national advisory services, was conducted between January 2010 and March 2011 where stakeholders are diverse and systems are decentral- by Synovate Panafrica, with funding from the Bill & ized. Regular face-to-face meetings are also crucial to capi- Melinda Gates Foundation. talize on information exchange and stimulate new ways of working together and sharing lessons learned. The approach was designed to help organizations col- lect a steady supply of empirical, actionable data more Any technology used for advisory services must be rapidly and cost-effectively. Feedback from target con- user-friendly, accessible, and serve farmers’ needs quickly stituencies enables organizations to assess whether and sufficiently. Trust, useful information and knowledge, they need to change their activities and approach to and appropriate support are critical to user sustainabil- better meet their constituents’ needs. In the shortest ity. Two steps to ensure sustainability are to conduct a possible time, findings can be available to participating sound prior analysis and to involve the end users. These organizations through an online portal. steps will help providers determine whether the users How has VoF been used? Some organizations used can pay for the service and, if so, how much; understand VoF data to monitor progress in implementing the culture surrounding the use of technology in a given projects. Others used the surveys to help guide the location; identify social and political challenges that may content of products they planned to develop. One arise during implementation; and determine what kinds of organization used VoF to get a better idea of how to applications will serve users best, based on their agrarian focus its monitoring and evaluation surveys. Another activities. used VoF primarily for quick marketing surveys to receive timely feedback on new products and ser- Special efforts have to be made to guarantee that both vices. Experience with the pilot project indicates that men and women participate in and benefit from informa- VoF has potential as an efficient, low-cost solution tion and communications for advisory services (Module 4). meeting a number of needs in private, public, and civil The opportunities offered by ICT can significantly enhance society organizations. information provision to rural women in developing coun- Sources: Authors; see also https://www.facebook.com/synovate tries. Without equal access to information, women are at .panafrica. a disadvantage in making informed choices about what to produce and when to sell their products. The availability of ICT is no guarantee that women will have equitable access Because advisory services are one of the most direct lines to to the technology and its benefits. More often than not, ICT poor farmers, it is critical to determine the main objectives of devices (radios, phones) remain under the control of men, services and the most appropriate ways to use ICT to meet preventing women from tapping knowledge and information them. If the primary aim is to get information to farmers, then relevant to their needs. Gender-disaggregated data, moni- multiple channels and media should be used to reach many toring, evaluation, and better targeting will improve these groups. The quality and relevance of the content/advice to outcomes. be provided is also important, as is the level of community “connectivity” to the providers’ messages. Conversely, if the aim is to maximize farmer-to-farmer documentation and sharing, then the emphasis is likely to be much more on INNOVATIVE PRACTICE SUMMARY E-Extension with a Business Orientation in capacity building and issues of culture, language, and vari- Jamaica’s Rural Agricultural Development ous forms of literacy. Authority (RADA) The technological component of an ICT for advisory services Driven by the need to transfer improved and adapted tech- should be developed locally, in collaboration with users, nologies to farmers participating in a modern agricultural and drawing on local, national, and international content as industry, in 1998 the RADA of Jamaica began to automate its ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 153 operations to deliver more effective extension and advisory Training for extension officers relies on Web-based resources services. In the last 10 years RADA has emphasized even and other types of ICT, and extension officers use laptop/ greater use of ICT by purchasing equipment and developing notebook computers and multimedia technologies to share specialized tools to support its increased extension staff and technical information with producers. The combination of reach producers more efficiently. laptop/notebook computers and devices with wireless broad- band connectivity has increased RADA’s capacity to collect The Agricultural Business Information System (ABIS) is data in the field, strengthened the reporting and monitoring RADA’s flagship ICT effort. ABIS puts the management of capabilities of extension staff, and helped to mitigate disease agricultural information to work to develop a more business- and pest outbreaks. Digital photography captures and com- oriented approach to agriculture. With data on registered municates events of interest in a timely manner. farmers and other stakeholders, crops, livestock, and farm practices, as well as a repository of technical information, RADA also uses text messaging to relay important alerts and ABIS is a primary source of information on the agricultural bulletins to farmers (more than 75 percent of farmers regis- sector and point of contact with advisory services. It facili- tered with ABIS have provided phone contact information). tates disease and pest tracking, weather forecasting, and These alerts are particularly critical for rapid communication trade between buyers and sellers of agricultural produce, during the hurricane season. RADA is mindful of the chal- and it facilitates production through its Agricultural Resource lenges that some farmers may face in retrieving text mes- Planning Tool. The system registers producers, records crop sages and therefore encourages family members, especially estimates (monthly), records receipt books sold to farmers younger ones, to help producers take advantage of this impor- (to prevent agricultural theft), records field service reports, tant communication channel. The authority is also pursuing tracks specific farmers (produce and farm practices), and voice messaging to train and communicate with farmers. provides technical guidance to stakeholders. Information publicly available from ABIS on request includes information As RADA celebrates its 20th anniversary of providing exten- on the availability of produce and contact information for pro- sion services to the agricultural sector, ICT remains at the ducers; number of farmers, registered by parish; aggregate/ center of its operational strategy to continue the mission of summary crop, livestock, and property reports; and demo- Repositioning Agriculture through Dynamic Action (RADA). graphic data on farmers (age and gender). Table 6.1 provides examples of some of its achievements to date. The richness and granularity of ABIS data sets have been commended. The system’s usefulness and value-added opportunities have created increased demand for its ser- INNOVATIVE PRACTICE SUMMARY vices internally and externally. ABIS now supports other Videos on Rice Seed Production Bring Multiple government agencies, including the Agricultural Marketing Benefits to Bangladeshi Women Information Division, Praedial Larceny Prevention Unit, It is easier for men to access information than it is for women. Jamaica Agricultural Society, Coffee Industry Board, and A study by Access Agriculture asked if farmer-to-farmer vid- Ministry of Tourism and Entertainment, as well as other eos could help overcome this gender bias, and what women stakeholders, such as the Mona School of Business and would do with new knowledge. Management. Additional human resources have been required to modify and enhance ABIS and to support, man- In Bangladesh, videos on rice seed were filmed with farmers age, and coordinate demand for ABIS services. and then shown in many villages. Researchers interviewed TABLE 6.1. Objectives and Achievements of ICT to Support RADA Extension Services ASPECT OBJECTIVE(S) OUTCOME/ACHIEVEMENT/STATUS Text messaging facility Increase mobile communication with farmers Over 160,000 alerts sent to farmers about adverse weather and best agricultural practices Farmer registration Register farmers island-wide into a Web-based database Over 176,000 farmers registered to date Production of farmer identification cards Identification of registered farmers receiving services Over 100,000 cards printed and distributed Closed User Group (CUG) cellular phones Increase capacity of extension services to communicate 128 CUG phones distributed to extension staff with farmers I C T I N AG R I C U LT U RE 154 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S IMAGE 6.8. Women Who Saw Instructional Videos innovate, and found ways to sell seeds and to bargain for bet- Produced Healthier Seeds, Earned More, ter prices. The women reduced their seed rate by almost half and Gained Confidence in Seeking and (lowering their production costs). The seeds they produced Sharing New Information were brighter, with fewer signs of diseases or pests, and easier to sell. There were no changes in the control villages. Rice yields increased by 15 percent, which improved the women’s social and economic status. Over 20 percent of the households attained rice self-sufficiency, with no changes in control villages. Twenty-four percent more of the video- viewing households became surplus producers (image 6.9). They sold more rice, seedlings, and paddy. The women’s husbands began consulting them more often about rice seeds and on spending household income. Households that owned their own land (in other words, that were not sharecroppers) and households that received help Source: Paul Van Mele—Access Agriculture. http://www.accessagriculture.org/. from household members were more likely to increase their income. Women who watched the videos many times were able to marshal more support and raise their incomes more. IMAGE 6.9. Increased Household Rice Stocks in a They also more confidently sought and shared new knowl- Video Village in Northwestern Bangladesh edge with service providers and others in the community. In sum, if they had land and labor, women who watched the videos were able to increase their income, their social stand- ing, and their ability to innovate. Knowledge is power (but so is land).15 INNOVATIVE PRACTICE SUMMARY Participatory Video and Internet Complement Extension in India Digital Green started with the support of Microsoft Research in India. It disseminates targeted agricultural information to small-scale and marginal farmers in India through digital video. The system includes a database of digital videos produced by farmers and experts. The topics vary, and they are sequenced in ways that enable farmers progressively to become better farmers. Unlike some systems that expect ICT alone to deliver useful Source: Jeff Bentley—Agro-Insight. knowledge to marginal farmers, Digital Green works with existing, people-based extension systems to amplify their effectiveness. The videos provide a point of focus, but it 140 randomly selected women in 28 video villages and 40 women in four control villages in northwestern Bangladesh about changes in their lives over the past five years. The 15 These findings are based on a small sample; additional analysis women had watched the videos six times on average. may be needed to establish causality. Nevertheless, they suggest the types of impact that may be sought through video exten- sion, as well as the types of innovation required for extension The women who watched the videos (image 6.8) conducted and training programs to address the needs of women (or other more experiments, adopted more innovations, helped to marginalized groups). ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 155 is people and social dynamics that ultimately make Digital provides opportunities to customize materials. When Green work. Local social networks are tapped to connect videos feature farmers’ fellow villagers, farmers often farmers with experts; the thrill of appearing “on TV” moti- instantly connect with the message. Digital Green has vates farmers. Although Digital Green requires the support an open model to disseminate content, so it is freely of a grassroots-level extension system and other partners, it available to everyone to use. is effective because its content is relevant and it maintains a ƒ No need for connectivity. Digital Green operates local presence. This local presence makes it possible to con- in environments with limited infrastructure and nect with farmers on a sustained basis. The key elements financial resources. High-bandwith Internet access is of the model are: not necessary for successful and sustainable video, ƒ Digital video. Digital Green relies on advances in because the content can be supplied on DVD or digital videography, including low-cost camcorders and downloaded on mobile devices. digital solutions for editing video, which greatly reduce ƒ Feedback. By enabling anyone to be a content the costs of developing local video content. producer and consumer, Digital Green gives even ƒ Mediation. Video demonstrations are not a complete isolated communities a voice. It also uses other audio- extension solution. They lack the interactivity that is and video-based mechanisms to support reporting and the hallmark of good extension and advisory services. build trust among virtual communities of participants. Digital Green relies on a local facilitator, whose role is to pause or repeat video to engage the audience in Various technological innovations and tools underpin Digital discussion and capture farmers’ feedback. Green’s approach. For example, its COCO (Connect Online, ƒ Partnerships. Digital Green emphasizes the Connect Offline) software supports data tracking for orga- development and delivery of digital content as a way nizations with sizable field operations, even where Internet of improving the cost-effectiveness of organizations service is intermittent and/or poor. Because COCO is a involved in agricultural research and/or providing stand-alone application in the Internet browser, no additional extension and advisory services. The goal is to software has to be installed or maintained on a device. It has strengthen existing institutions and groups, not to an open source, customizable framework and can be used create new ones. without support from professional IT or engineering staff. ƒ Community-based content. Content must be The Analytics Dashboard provides nearly real-time insight relevant to local conditions (crops, climates, soils, into field operations, performance targets, and basic mea- farming practices, and so on). The use of video sures of return on investment relevant to an organization. Topic Note 6.3: ICT, DIGITAL TOOLS, AND E-LEARNING AND EDUCATION IN AGRICULTURE TRENDS AND ISSUES research disciplines and areas of technical expertise; innova- Increasing agricultural productivity in a climate-smart way tion brokers; and developers of food processing systems and requires a continuous investment in developing human standards, financial and risk management instruments, rural capital in agriculture, through formal and informal learning infrastructure, and information and knowledge management and education. Human capital is critical at the farm level, systems— and thus the list is as extensive as the agricultural in the public agencies that support agriculture, and in the innovation system is comprehensive. private sector actors that drive agricultural value chains. Formal learning consists of specific courses of study of var- Informal learning occurs through the varied interactions in an ied length and complexity in the educational system. This agricultural innovation system and is particularly important system develops the skilled experts needed in every aspect in agricultural extension and advice (Mekonnen, Gerber, and of agriculture—the people working in the varied agricultural Matz 2016). The role of agricultural education and training in I C T I N AG R I C U LT U RE 156 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S an innovation system is discussed in detail in Module 2 of These features make e-learning especially attractive to Agricultural Innovation Systems: An Investment Sourcebook extension and advisory services, especially for expand- (World Bank 2012). This topic note focuses on the role of ing extension workers’ and farmers’ knowledge and skills. e-learning, particularly in extension interactions. The advent of Extension education has long been challenged by the use radio was just the beginning of an exponential increase in the of a formal didactic framework that expects students to fit use of ICT to facilitate learning. Learning delivered through the with the established courses (Kroma 2003). Public sector newer ICT devices and formats (computers, mobile devices, extension has been limited by the challenges accompany- the Internet, DVDs, and so on) is termed “e-learning,” and ing declining investments, the high proportion of farmers in its potential to facilitate “distance learning” and “distance relation to trained extension workers, and the need to incor- education” (instruction and learning outside the traditional porate adult learning strategies and indigenous knowledge classroom setting) was recognized immediately (image 6.10). into their activities (World Bank 2012). The World Bank defines e-learning as “the use of elec- ICT (and e-learning) may make it possible to surmount tronic technologies to deliver, facilitate, and enhance both some of the barriers to effective extension training and formal and informal learning and knowledge sharing at any outreach in developing countries, but significant adapta- time, any place, and at any pace.” This form of learning tions will be needed. E-learning originated in a postindus- can make agricultural innovation system more inclusive by trial setting among a relatively well-educated population bringing elements of traditional learning and mentoring to with reasonably good infrastructure for accessing digital a wider audience and empowering people through learning services. Investments in digital content for e-learning were communities. an agreed-on priority that resulted in the development of a host of advanced platforms and applications for learners and In theory, e-learning enables governments, agricultural advi- facilitators/teachers. sory services, NGOs, farmer organizations, and private compa- nies—in fact, any actor in the innovation system—to reach The innovative practice summaries in this topic note indi- large numbers of producers, and for producers to interact cate some of the adaptations and strategies required for with everyone else. Content can be updated quickly and e-learning to succeed in rural areas of developing countries, accommodate rapidly changing needs. E-learning can also especially communities with limited literacy (digital and oth- provide fresh approaches that are learner-centric, engaging erwise) and inadequate access to digital resources. Both producers and their communities as partners and adult learn- examples come from India. The first summary describes an ers in designing and implementing the learning experience. e-learning initiative in which farmers use mobile phones to In addition, e-learning can make it easier to maintain quality gain specific skills that enable them to benefit more substan- by supporting feedback mechanisms and ensuring appropri- tially from services such as commercial banking and exten- ate accreditation and certification processes. sion advice. The second describes the development of a Web-based platform called agropedia for storing and sharing agricultural information in a range of formats and languages. The platform—which incorporates Web 2.0 elements such as wikis, blogs, and commentary spaces—provides much- IMAGE 6.10. E-Learning Creates Opportunities for needed content for e-learning for farmers and extension Rural Participation workers. Through these features and multiple access points (including mobile phones and landlines), the platform con- nects researchers, extension personnel, and farmers in vari- ous information-sharing and e-learning activities. LESSONS LEARNED The experiences summarized here offer important social and technical perspectives on e-learning for rural people and extension workers in developing countries. ICT can facilitate a learner-centric process if it is adapted carefully Source: Curt Carnemark, World Bank. to the particular social, economic, and political context ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 157 (including constraints on learners’ time and travel). A provision of rural credit is accompanied by appropriate multistakeholder partnership is essential for promoting capacity building, rural credit will perform much better learning among the farming community through ICT, and in terms of productivity, returns, and nonperforming agricultural institutions need to produce more extension- asset levels. Such gains will lead financial institutions oriented digital content. Content for e-learning must be to support L3F. highly granular for rapid uptake and must be linked to ƒ Capacity building will also enlarge the market for bank specific learning outcomes. E-learning does not require credit among small-scale and marginal farmers and the complex online workflows associated with standard among other marginalized groups of the rural poor, learning management systems, but a priority in promoting particularly women. Modern ICT can play a major role e-learning in agricultural innovation systems is to build ICT in supporting capacity building, which in turn would capacity in personnel at all levels of agricultural education, enhance the market for such technologies. training, and extension. The rural poor stand to gain in this process, along with the Finally, ICT and virtual interactions are not sufficient to participating financial institutions, research institutions, and form cohesive learning communities. Peer-to-peer contact ICT companies. In addition to using ICT to build capacity, significantly improves learning, and mobile phones can financial institutions can use the technology to reduce the provide useful support. In the initiative focused on life- transaction costs of lending. Integrating these functions can long learning for farmers, for example, mobilization, social improve the likelihood that the L3F process will be replicable capital, and social networking played major roles. The use and sustainable. of ICT for learning influenced development outcomes because the learning experience was tailored to women’s cognitive social capital and reinforced by links with com- INTEGRATING MOBILE PHONE–BASED mercial banks. LEARNING AND CREDIT FOR WOMEN LIVESTOCK PRODUCERS VIDIYAL, an Indian NGO, uses L3F to promote community INNOVATIVE PRACTICE SUMMARY banking among 5,000 women organized into self-help groups Lifelong Learning for Farmers in Tamil Nadu (SHGs). During 2008, nearly 300 women from the SHGs Lifelong Learning for Farmers (L3F) is an application became partners and decided to build their capacity through of Open and Distance Learning for Development by open and distance learning related to various aspects of Commonwealth of Learning16 in Commonwealth countries sheep and goat production. As poor laborers, most of the (Balasubramanian and Daniel 2010). Banks, universities, and women felt that attending classes or watching multimedia marketing agencies are the partners in the L3F initiative. materials restricted their ability to work and attend to house- Using open and distance learning and ICT, the initiative aims hold chores. They asked VIDIYAL and COL to explore the to strengthen the self-directed learning process among use of mobile phones as a learning tool, because they would men and women in the farming community and to create not need to be confined to any particular place or time during linkages between various stakeholders. The objective is to the learning process. enhance farmers’ skills and knowledge in partnership with financial and research institutions. Through face-to-face and computer-based learning, COL and VIDIYAL encouraged the women to develop a busi- L3F is based on the following premises: ness proposal for rearing sheep and goats. They devel- ƒ Unexploitative, mutually reinforcing contractual oped a business proposal in which each member would relationships between rural producers and the obtain credit for buying nine female goats, one buck, and formal public and private sector will promote rural one mobile phone. The local bank agreed to the proposal entrepreneurship. and sanctioned a loan of US$270,000. The credit and the ƒ Learning and extension can be a self-sustaining legal ownership of the assets are in the names of the par- process in which secondary stakeholders support ticipating women. L3F within a win-win framework. For instance, if the The 300 women bought simple mobile phones, and VIDIYAL entered an agreement with IKSL, one of India’s major 16 https://www.col.org/. mobile network operators, to send audio messages to the I C T I N AG R I C U LT U RE 158 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S women’s phones free of charge and enable free calls among universities. Designated professors at the universities pro- group members. The company felt that this strategy would vide answers through video emails that are stored in a digi- enhance its mobile service in the long run. tal library for farmers and others to access easily. Similarly, the FAQ system used in mobile phone–based learning is VIDIYAL and some of the participating women were trained linked to the universities, research institutions, and exten- in developing audio content for mobile phone–based learn- sion organizations. ing (image 6.11). Learning materials are prepared within the broad principles of open and distance learning to meet learn- In this learning process, information flows both ways as ers’ time and geographical constraints. VIDIYAL developed farmers contribute their informal learning and tacit knowl- the materials in consultation with the Tamil Nadu Veterinary edge to the other partners. Through mobile phones and and Animal Sciences University and contextualized them to computers, the students and researchers interact with SHG the local culture and dialects. members (farmers and women) to understand their indig- enous knowledge. SHG members participate in university The learning materials convey information in short, con- research by managing research plots, providing data, and cise messages. Three to five audio messages are sent to analyzing results. Undergraduate and graduate students participating women every day. Each message runs for 60 undergo field training under the supervision of the women seconds. farmers. Universities use the distance learning materials developed by the women’s groups and farmer groups as Women preferred to receive the messages in the mornings reference materials for diploma courses in agriculture and while going to work or performing their household tasks— horticulture. for example, while grazing the livestock. The women reported that they learned and practiced the messages and The social capital and capacity building accumulated through recorded them in their diaries. Illiterate women sought the L3F and the interaction it induces have led to some interesting help of literate family members to record the messages. results. Around 5,000 women and men are involved in struc- Most of the respondents’ families supported their learning tured learning courses accessed through their mobile phones. objective, which benefited the entire family by expand- During 2009–11, commercial banks extended approximately ing their knowledge base in relation to small livestock US$1.0 million in credit to 2,000 L3F participants. Over the production. same period, the total turnover of the supported enterprises was US$3.14 million. The higher rate of credit repayment Other multimedia learning materials were shown during SHG among L3F participants encourages support from the banks meetings and telecast over local satellite channels run by the (COL 2010). Studies by COL indicate that the quality of the SHGs. Once a week, SHG members met and shared expe- sheep and goat enterprises operated by L3F participants is riences. The horizontal and vertical transfers of knowledge significantly better than those of nonparticipants in the same have encouraged self-directed learning among the members region (Balasubramanian and Daniel 2010). (Balasubramanian, Umar, and Kanwar 2010). LEARNING THROUGH INTERACTIVE VOICE PRELIMINARY IMPACT EDUCATIONAL SYSTEM An important contribution of L3F is that it establishes links Recognizing the potential of mobile phone–based learning, between research and education institutions, organizations COL asked the University of British Columbia to develop an providing extension and advisory services, and the primary audio-based Learning Management System and Learning stakeholders. The participatory preparation of learning Content Management System. The university created materials fosters intensive interaction between all of these a prototype called Learning through Interactive Voice groups. A consortium of agricultural and veterinary universi- Educational System, which not only enables audio-based ties supports the farmers’ and women’s groups in devel- learning materials to be automated but also helps process oping business plans and providing learning materials on the tests, feedback, and responses through appropriate seeds, animals, and other subjects. The women’s associa- databases (Vuong et al. 2010). This system should improve tion assesses the problems in a particular area, aggregates quality assessment and certification in an informal learning the queries, and sends them through video emails to the environment. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 159 IMAGE 6.11. Women Use Mobile Phones to Learn Better Goat Production Techniques Source: Commonwealth of Learning. I C T I N AG R I C U LT U RE 160 MODUL E 6 — ICT S, DIGITA L TOOLS, A ND AGRICULTURA L KNOWLED GE A ND INFOR MATION SY STEM S INNOVATIVE PRACTICE SUMMARY receive specific messages and not broadcasts. A farmer or Innovative E-Learning for Farmers through a practitioner in the field can raise a query via voice or text. Collaboration and Multimodal Outreach A virtual call center built into agropedia receives the query The limited availability of digital content relating to agricul- and passes it to appropriate extension workers and experts. tural extension and advice reduces the opportunity to build In this way, trust and/or interest-based messaging networks sustainable, digitally mediated services that bring new can be formed and sustained. benefits to farmers and increase the reach of extension personnel (see Balaji 2009). This gap could be overcome by Agropedia is an example of how a highly integrated plat- developing a content aggregation system that receives and form can use multiple approaches to connect a spectrum of provides information in multiple modes, especially through stakeholders, including research experts validating informa- the Internet and voice/text messaging on mobile phones. tion, extension personnel in farm research stations and in the field, and farmers. Field-based producers do not need Such information could be generated using standard valida- computers to connect to experts and extension personnel. tion procedures in research and education or captured from Farmers with advanced practical knowledge and skills are transactions (such as query response services involving in a position to share their tips and messages with a much farmers and experts). The same arrangement could pro- wider community and can participate in discussions related vide additional training support to field-based stakeholders to the validation of particular pieces of information. in agriculture, especially farmers. The core principle here is multimodality in access to information and training/learning Agropedia has the equivalent of about 10,000 pages of mate- support services. rial on 10 important crops in four languages and has close to 2,000 registered expert users. During two cultivation seasons in 2009–10, the consortium organized mobile phone contacts THE CONSORTIUM FOR AGRICULTURAL with about 27,000 farmers in four language regions and con- KNOWLEDGE MANAGEMENT: RESOURCES ducted 2.2 million text and voice transactions through 687 FOR E-LEARNING specific messages. Analysis revealed that farmers in general prefer voice as the transaction medium and that they prefer A key initiative under the World Bank–funded NAIP in India messages that are no longer than 36 seconds. is the Consortium for Agricultural Knowledge Management, which has been active since 2008. The initiative is built The consortium is continuing into its second phase. An around an advanced online content aggregation system analysis of costs and efforts in the first phase (January called agropedia, which delivers and exchanges information 2009 to September 2010) revealed that university-based through a Web portal and mobile phone networks accessible extension personnel could participate in the second phase to phones with limited or no data capability. Agropedia also without requiring additional staff. Since mobile phone and provides a subsidiary platform—Agrilore—to support online platform-hosting costs are low in India compared to the rest learning for agricultural extension. of the world, the analysis concluded that the effort can be mainstreamed as a regular activity in a typical agricultural uni- Agropedia was designed to overcome the paucity of useful versity. The serious challenge is to strengthen ICT capacity agricultural extension information in the Web space. Online among specialists and personnel at all levels, ranging from discussions can be set up to support queries or validation. researchers to field-level extension workers. The platform incorporates Web 2.0 elements such as wikis, blogs, and commentary spaces and receives material in digi- tal formats, including text, still images, audio, and video. A highly targeted search engine allows users to locate content ADAPTING THE E-LEARNING APPROACH FOR FARMERS in multiple Indian languages, overcoming a serious challenge in using ICT for development. Agropedia is linked to the prin- An important activity for the consortium is to use e-learning cipal website of the Indian Council of Agricultural Research. methods to help farmers adapt their crop management practices to cope with droughts. This activity was pursued Agricultural extension workers can use the agropedia plat- by Adarsha Mahila Samaikhya (AMS), a community-based form to create their own groups of contact farmers or peers, federation of women’s microcredit groups (in south central facilitating e-learning. These groups can be sent timed text India) and ICRISAT, which led the agropedia consortium in and voice messages, enabling specific interest groups to 2008–10. As of June 2011, about 7,400 women belonged to ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 161 AMS; almost 70 percent came from households below the Taking this experience into account, agropedia designers official poverty line. developed Agrilore as a repository of agricultural learning objects for use in extension. Three open and distance learn- ICRISAT helped AMS set up the basic infrastructure con- ing institutions—Indira Gandhi National Open University, necting the AMS rural operations hub to the Internet, using Maharashtra State Open University, and the Open and a low-cost landline. A number of AMS activists were trained Distance Learning Directorate of Tamil Nadu Agricultural in IT. ICRISAT research scholars functioned as trainers and University—are populating this repository with about 500 remotely supported extension-related queries from farm- granules relating to horticulture. They use this information to ers. The scholars escalated queries to senior scientists of deliver certificate-oriented learning services to 5,000 farm- ICRISAT if needed. Several AMS activists were trained in the ers in three linguistic regions. This effort is also supported basics of reporting problems related to crop cultivation, using by the World Bank–financed NAIP as a separate activity. a blend of online/e-learning and direct contact. ICRISAT scientists and scholars realized that the e-learning REFERENCES AND FURTHER READING methods were originally designed for the classroom milieu Africa Rice Center. 2014. Annual Report 2014: Partnerships for Impact. and needed to be adapted to new learners with limited or no Côte d’Ivoire. classroom experience. 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Rodgers. 2013. “Innovative and Effective Ways to Enhance Rural Learning in Africa.” In Realizing ———. 2015. World Development Report 2016: Digital Dividends. Africa’s Rice Promise, edited by M. Wopereis, D. Johnson, N. Washington, DC: World Bank. Ahmadi, E. Tollens, and A. Jalloh. Wallingford, UK: CABI Publishing. Zossou, E., P. Van Mele, J. Wanvoeke, and P. Lebailly,. 2012. Vuong, S. T., J. Schroeder, M. Alam, A. Tjia, Y. I. Chung, and A. Chen. “Participatory Impact Assessment of Rice Parboiling Videos with 2010. “LIVES: Learning through an Interactive Voice Educational Women in Benin.” Experimental Agriculture 48 (3): 438–47. I C T I N AG R I C U LT U RE S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 165 Module 7 BROADENING SMALLHOLDERS’ ACCESS TO FINANCIAL SERVICES THROUGH ICT HENRY BAGAZONZYA (World Bank), ZAID SAFDAR (World Bank), and SOHAM SEN (World Bank) Overview. Four kinds of financial services help farmers to achieve their economic goals: credit savings, transfer and payment facilities, and insurance. The major prerequisites for using information and communication technology (ICT) to deliver these services in rural areas are robust national financial systems (for example, with national payment systems, credit bureaus, ATM switches, central platforms for microfinance) and the infrastructure that allows electronic financial transactions between institutions and individuals. Factors that are critical for ICT to expand financial services in rural areas are a supportive economic policy and regulatory framework; appropriate financial and nonfinancial products; and mechanisms, processes, and technology applications that can deliver products and services, improve transparency and accountability, reduce costs, and become self-sustaining. Topic Note 7.1: The Use of ICT-enabled Financial Services in the Rural Sector. New channels for deliver- ing financial services (facilitated by ICT), new players, and greater competition enable service providers to offer a larger suite of financial products and services and acquire better financial information, some of which is useful for government regulation and policy development. A number of nonbank institutions have developed innovative approaches to financ- ing agriculture, enabled by or integrated with ICT, including mobile financial services, branchless banking, ATMs, and smartcards.  Linking Conditional Cash Transfers and Rural Finance in Brazil  RFID Facilitates Insurance and Credit for India’s Livestock Producers Topic Note 7.2: Policy Strategies and Regulatory Issues for ICT-Enabled Rural Financial Services. Often, governments lag in introducing the policies and regulations needed to extend cost-effective financial services throughout the economy, including underserved rural areas. To design supportive policies, provide the necessary infra- structure, and provide appropriate, affordable financial products meeting local needs, governments must explore partner- ships with the private sector and rural communities. In turn, governments can devise and implement policies that give rural communities and private enterprises incentives to participate in the rural financial sector.  Kenya’s DrumNet Links Farmers, Markets, and Financial Service Providers  A Common Platform Delivers Financial Services to Rural India OVERVIEW FIGURE 7.1. Smallholder Farmers Are the Largest Smallholder farmers are the world’s largest group of Group of Working-Age Poor working-age poor (figure 7.1). Much of the world’s food 6.8b supply will continue to depend on their efforts, yet a lack 610m Smallholder of financial services often stymies their attempts to make farmers productivity-enhancing investments and to smooth their People consumption between periods of plenty and scarcity. living on 370m Casual laborers Capital-constrained farmers minimize risk instead of maxi- < $2/day: mizing returns (for example, by investing in high-quality Young & 1.0b 300m Low-wage elderly salaried seeds and fertilizer or growing what is most profitable) Working 180m Microentrepreneurs (Trivelli and Venero 2007). Box 7.1 summarizes the four 1.6b age 100m Unemployed kinds of financial services that farmers need to achieve 80m Fishermen/pastoral Source: Mas 2010b. their economic goals. I C T I N AG R I C U LT U RE 166 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T BOX 7.1. Farmers Require Four Kinds of Financial pose challenges of inventory assessment and management, Services and collateral substitutes based on warehouse receipts or returns from future crops are unavailable in many countries.  Credit—in the form of loans, personal loans, sal- Farmers also have a special need for financial products with a ary loans, overdraft facilities, and credit lines—is time horizon extending over multiple crop cycles. often used as working capital at the beginning of the growing season to purchase inputs and This module explores how innovative mechanisms and prepare land. Farmers also need capital to invest technologies are used in specific situations in different in equipment such as tractors or drip irrigation and countries to help rural dwellers—mainly farmers, whose to harvest, process, market, and transport their businesses do not readily receive financial support— produce. It is important to distinguish between obtain the financial services listed above from commercial short-term loans, which microfinance institutions banks and other providers. Some of these technologies usually provide, and the long-term financial services are already used in microfinance institutions in urban and required for agricultural and livestock enterprises. peri-urban areas. It is important to note that the types of  Savings may be in the form of current accounts, ICT discussed in this module are gender neutral; they are savings accounts, or fixed or time deposits. enablers and should be used in contexts where both men Famers have a significant need for savings, and women can participate. because their income is seasonally tied to the har- Major prerequisites for using ICT in financial services for vest, and for much of the year they rely on savings agriculture are robust national financial systems and the to smooth consumption. infrastructure that allows electronic financial transactions  Transfer and payment facilities allow for local between institutions and individuals. Two types of infra- and international money transfers, remittances, structure and related services facilitate electronic transac- government transfers, and check clearing. tions and are vital for extending financial services to rural  Insurance may cover crops and livestock as well areas. as human life and health. Source: Author, based on CGAP and IFAD 2006, 6; Nair and Fissha The first is ICT infrastructure, such as high-speed Internet 2010. and mobile phones, available at affordable prices. This infrastructure is the backbone of electronic financial transac- tions. The second is financial infrastructure, which includes ICT has now created the potential to deliver a greater diver- national payment systems, credit bureaus, ATM switches, sity of financial products to greater numbers of rural clients or central platforms for microfinance institutions. Financial than conventional financial service providers have been able infrastructure enables financial service and technology ser- to reach. ICT can also enhance the government’s capacity vice providers, as well as other providers vital for the integrity to monitor and evaluate financial services provided to rural and stability of the financial system, to connect and perform clients and design effective financial policies and regulations transactions in real time. for the rural sector. For example, financial infrastructure makes it possible for A number of agents in rural areas—such as government customers of one bank to use the ATM of a different bank departments, commercial banks, microfinance institutions, or conduct a transaction (such as writing checks or wiring traders, telecommunications companies, community-based money) with customers of a different bank. It also channels organizations, families, and friends—provide financial ser- financial information (such as the creditworthiness of a new vices, which can include credit, savings, insurance, trans- customer) to financial institutions. fers, and payments. Even so, tailoring and providing financial services for small-scale farmers remains challenging. Rural These services and infrastructure do not benefit merely one clients differ from the typical clients of financial service operator or financial service provider; they cater to the entire providers. They are located in remote and often sparsely rural and financial sector. For this reason, their provision is populated areas, and they rarely possess the sorts of physi- often initially regarded as a task for government, although cal or financial assets that financial institutions customarily in reality they can be (and often should be) provided by the accept as collateral. Typical rural assets, such as livestock, private sector alone or in partnership with government. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 167 CURRENT ACCESS TO FINANCIAL SERVICES banks constitute more than 75 percent of all rural branches of IN RURAL AREAS financial institutions worldwide; in comparison, microfinance Across developing countries, in urban and rural areas, access institutions account for less than 3 percent. Microfinance to and use of formal finance remains very low in general. The institutions and cooperatives may situate a larger share of financial access data given in figures 7.2 and 7.3 are not specific their branches in rural areas—41 percent and 43 percent, to farmers, but they serve as a good proxy, showing that rural respectively (figure 7.4)—but their absolute total country reach is a smaller proportion of total reach. Agriculture in par- reach is limited (figure 7.2). ticular has been underserved; for example, commercial lending The supply of financial products and services in rural areas to agriculture is 1 percent of all lending in Africa (Campaigne will remain a challenge until financial institutions can reduce and Rausch 2010). Often, as a result of poor access to formal the high operating costs associated with catering to rural sources of finance, farmers are left to borrow at very expen- clients; however, as this module indicates, ICT applications sive rates from informal money lenders. have demonstrated considerable promise in doing so. The Commercial banks remain the dominant formal institutions next section briefly describes the factors that have proven providing finance to farmers (figures 7.5 and 7.6). Commercial critical to using ICT successfully to expand the range of finan- cial services in rural areas. The topic notes that follow provide FIGURE 7.2. Low Access to Financial Institutions Access to financial services (median per 100,000 adults) FIGURE 7.4. Access Is Worse for Farmers 100 % of branches in rural and urban areas Branches 80 ATMs Cooperatives 60 Microfinance institutions 40 State institutions 20 Commercial banks 0 0% 20% 40% 60% 80% 100% A A P A C C EN SA EC EA SS LA HI Urban Rural M Source: CGAP and World Bank 2010. Source: CGAP and World Bank 2010. Note: The abbreviations under the bars are defined in the glossary. FIGURE 7.3. Low Utilization of Financial Services Access to commercial banks (median per 1,000 adults) FIGURE 7.5. Commercial Banks Are Main Players 2,500 % of rural branches by institution Deposit accounts 2,000 1% Loan accounts 15% 1,500 3% 5% 1,000 500 78% 0 Commercial banks State institutions A A P A C C EN SA EC EA SS LA HI Microfinance institutions Cooperatives M Source: CGAP and World Bank 2010. Other Note: The abbreviations under the bars are defined in the glossary. Source: CGAP and World Bank 2010. I C T I N AG R I C U LT U RE 168 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T greater detail on ICT-enabled interventions in rural finance Agricultural policies may act to suppress private sector (Topic Note 7.1) and explore policy and regulatory issues that development, including the development of private financial either positively or negatively influence the expansion of the services. Governments often use state-owned enterprises frontier for rural finance (Topic Note 7.2). to intervene in agricultural product pricing to reduce price fluctuations and provide a floor price, for example. Such Both topic notes contain summaries of innovative practices interventions can be very costly, are often ineffective, and that demonstrate how ICT is being used in specific settings preempt development of both insurance and storage mar- to expand financial services while reducing transaction costs kets. Farmers will not hedge their production if there is a and information asymmetries. These approaches are cer- floor price. Since producers have little incentive to store tainly not conclusive (because the ICT is extremely dynamic crops if they do not expect prices to rise over time, the and constantly changing), yet they provide an indication of market for storage facilities (and therefore the emergence alternatives that practitioners can consider when designing of a warehouse receipt system and other mechanisms for projects to improve rural access to financial services in a vari- managing risk) will be suppressed if these price movements ety of situations, given the right policy and legal environment. are prevented by government intervention. In sum, the policy environment that enables markets for financial services to develop is one in which minimal govern- KEY CHALLENGES AND ENABLERS ment interventions are carried out on a commercial basis, Expanding access to rural finance is challenging, and needs which allows markets to function freely. This restraint will, to be looked at as a process that includes a combination of in turn, provide an opportunity for financiers to provide cost- factors, including a supportive economic policy and regulatory effective and appropriate financial services without being framework; appropriate financial and nonfinancial products; encumbered by the government. It will also allow the provi- and mechanisms, processes, and technology applications sion of increased-risk management services and ultimately that can deliver products and services, improve transparency lead to greater availability of financial services. and accountability, and reduce costs. Any proposed technol- ogy solution should be self-sustaining, with a clear plan for generating revenue and financing, or it will eventually prove Legal and Regulatory Environments: Enforcing impossible to sustain and replicate elsewhere. The techno- Contractual Obligations logical applications described in the topic notes meet these The largest risk to sustainable financing for agriculture is often criteria. This section reviews the lessons from implementing attributed to inherent business risks, or the inability of finan- those applications as well as the enablers that different play- cial institutions to design profitable financial products for the ers can take to ensure that using ICT to help farmers access rural population. Yet interventionist government policies— finance is achievable in the long term. such as subsidized interest rates, forgiveness of debt, and failure to enforce appropriate rules and regulations—can severely limit the effectiveness of an ICT-enabled product Federal Economic Policy that could have made finance accessible to a large number of Financial markets resemble other markets in that direct gov- people. Conversely, an enabling environment and legal frame- ernment involvement can crowd out private participation. This work, enforcement of regulations, and supportive rural infra- problem has been perennial in developing countries’ rural structure will eventually lead to lower but sustainable interest credit markets, where government agricultural banks offering rates by reducing transaction costs and risks and increasing subsidized credit have been almost ubiquitous. Their presence competition. All of these outcomes go a long way toward created a “chicken-and-egg” problem: Governments were making a sustainable access to finance a reality. reluctant to withdraw from these markets because there was no private sector presence, but the private sector was reluctant to enter when, in addition to other obstacles to rural lending, Infrastructure Costs and Shared Platforms government competition was a constant threat. In recogni- Technology solutions require an investment that can be tion of this problem, a new generation of government agen- costly and difficult to justify when implementation is risky, cies was designed to coexist with—or even “crowd in”—the as is typically the case with technology. Investments in private sector by filling niches or resolving market failures by technology can be leveraged by financial intermediaries and operating on a more commercial basis than their predecessors. others within a community to provide additional services on ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 169 the same platform, however. Sharing infrastructure such as Borrowers will need to be educated about new, ICT-enabled power, telecommunication, data networks, hosting, applica- instruments for risk management and insurance. There are tion support, or data management drives down the cost of many ways that organizations and producers can manage technology, making it affordable to deliver financial products risk, and they should learn to select the correct tool or com- and services to rural areas (see IPS “Passive Infrastructure- bination of tools that most efficiently and cost effectively sharing in Nigeria,” in Module 3). match their risk. This idea of leveraging infrastructure can also be considered Finally, governments will, in some cases, require assistance in the development of warehouses for collateral-based sys- in capacity building or creating an appropriate legal or regula- tems, weather stations for the development of index-based tory framework. Such assistance may include, for example, rainfall insurance, and physical infrastructure to facilitate support in drafting appropriate legislation and regulations. improved functioning of the supply chain. Investments in Variations in the regulation of ICT infrastructure for making infrastructure that can be leveraged but require a high initial cash transfers and providing other financial services have investment require the participation of both the public and had a considerable impact on the kinds of services eventually private sectors to ensure ownership on both sides. provided in rural areas (see “Topic Note 2.3: Mobile Money Moves to Rural Areas”). Technical Assistance and Capacity Building Building the capacity to use and adapt ICT to facilitate finan- Organizational Culture cial services is important not only for the staff of banks and A dynamic organizational culture allows staff to innovate— financial service providers but also for borrowers and, in some by using new technology, for example—and ensures the cases, for governments. Capacity building for staff increases sustainability of financial innovation. For example, Bolsa the chances of innovation and success in extending financing. Família (see IPS “Linking Conditional Cash Transfers and Capacity building is also important for borrowers. In a number Rural Finance in Brazil”) involves organizations that train staff of cases reviewed in the topic notes, particularly the cases well, provide innovative tools for the job, and create dynamic involving institutions or agencies other than banks, techni- environments with appropriate incentives to motivate staff cal assistance was one of the core components of success. to work closely with clients. Management’s participation is Likewise, capacity building that focused on maximizing the crucial, particularly for the development and implementation impact of credit through improvements in product quality was of an ICT-for-finance program. Other case studies (such as essential to successful management of supply chain financing DrumNet) underscore the benefits of empowerment. People in Kenya (see IPS “Kenya’s DrumNet Links Farmers, Markets, with a stake in a business will expend much effort to make and Financial Service Providers,” in Topic Note 7.2). the business work. Topic Note 7.1: THE USE OF ICT-ENABLED FINANCIAL SERVICES IN THE RURAL SECTOR TRENDS AND ISSUES traditional relationships and service capacities in the rural ICT introduces new channels for delivering financial prod- finance ecosystem. (As noted, Topic Note 2.3 looks at how ucts and services to the rural sector, and it has the potential ICT infrastructure enables this expansion.) to reach farmers, intermediaries, entrepreneurs, and rural dwellers more directly than traditional bricks-and-mortar Interventions using ICT can introduce new players and bank branches or microfinance offices. These new channels lead to greater competition in the rural financial sector. enable financial service providers to offer a larger suite of Institutions or agencies that are not banks (nonbanks) may financial products and services and acquire better financial start providing rural financial services. Since the early 2000s, information, some of which is useful to governments as they a number of nonbank institutions have developed innovative oversee, regulate, and develop policy for the agricultural and approaches to financing agriculture. They have sometimes rural sectors. Figure 7.6 illustrates how ICT expands the adapted microfinance concepts to provide agricultural I C T I N AG R I C U LT U RE 170 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T FIGURE 7.6. ICT and the Rural Finance Ecosystem Financial service Financial Rural sector providers instruments Government Traditional Suppliers Credit Retailers Savings Commercial banks Wholesalers Insurance Microfinance Farmers institutions Intermediaries Other financial ICT-enabled service providers Mobile finance Entrepreneurs Mobile operators Branchless banking Rural dwellers ATMs Smart cards Source: Author. finance, used good banking practices, and above all, drawn information, and keep records of clients’ creditwor- on knowledge of agriculture and ICT to enter and succeed thiness. In this way, branchless banking deepens in this market. Many of these new approaches show great financial inclusion throughout rural areas. promise, but no single approach will work for all situations. ƒ ATMs. Though ATMs are often associated with debit Rather, organizations have the most success when they cards or smartcards, ATMs can serve as cash- are not dogmatic, apply innovative and comprehensive risk- dispensing machines in tandem with branchless bank- management strategies and tools, and retain the ability to ing, mobile financial services, and other ICT-enabled perform credit analyses of their intended rural clients without financial products. The availability of ATMs in rural political interference. areas can place cash-exchange points within reach. ƒ Smartcards. Though not entirely in the category of Nonbanks and banks can provide these ICT-enabled financial ICT, smartcards (or stored-value cards) are an alternate services for the rural sector: means of providing services when mobile financial ƒ Mobile financial services. Given the pervasiveness services are not readily available. Prepaid cards, debit of mobile phones in developing countries, financial cards, or credit cards provide payment and credit facili- service providers can use them to reach clients in rural ties to rural clients. Stored-value cards have historically areas and provide a broad array of financial products assumed some level of literacy (in particular, the ability and services, including credit, insurance, payments, to sign for a transaction), but the advent of smartcards and deposits. Financial service providers can tailor that use biometric devices eliminates the challenges financial products offered through mobile phones to associated with literacy barriers. rural needs. ƒ Branchless banking. Field agents, equipped with As discussed, financial services rely on the availability mobile phones or point-of-sale devices, can serve as of an underlying financial and ICT infrastructure, such as mobile branches. Agents can provide financial ser- payment systems, credit bureaus, central ATM switches, vices to smallholders, take deposits, provide financial central financial platforms, mobile telephony, mobile data ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 171 services, and the Internet in rural areas. Governments have Cost and Operational Efficiency to work with the private sector to ensure that the underly- Financial service providers have reduced transaction costs ing infrastructure is in place and extended to rural areas. using electronic payment systems, branchless banking, and (For a discussion of how various governments have done other ICT-enabled services. Because these services are avail- so, see Module 2.) able to farmers via handheld devices or loan officers based in the field, they obviate the need to visit a bank branch to conduct basic transactions (box 7.3). EXAMPLES AND LESSONS LEARNED Aside from reducing operating costs, the use of ICT within The following examples highlight successful ICT-enabled financial institutions or government can also improve opera- interventions selected from a wide range of similar inter- tional efficiency, create public platforms for smaller organiza- ventions implemented in developing countries. They tions to use, and develop management capacity. demonstrate that rural and agricultural finance can be profitable without high government subsidies and discuss the lessons learned in the course of implementing the BOX 7.3. In Rural Kenya and South Africa, ICT interventions. Applications Reduce the Cost of Financial Services Availability and Transparency of Financial Services Kenya: M-PESA. The leader in mobile payments is ICT can make financial services more readily available in Safaricom’s M-PESA, a short messaging service (SMS)– rural areas through mobile phones, the Internet, point-of- based money transfer system that allows individuals to sale devices, and field agents (box 7.2). Electronic banking deposit, send, and withdraw funds using cell phones. makes it possible to provide financial services in places that M-PESA has grown rapidly to reach approximately 38 per- rural clients visit routinely, such as markets and post offices. cent of Kenya’s adult population. The M-PESA model has Electronic conditional cash transfers also make it easier for been copied with little modification worldwide.a Kenyans rural poverty reduction programs to reach specific beneficia- use M-PESA to deposit money with a registered agent or ries (see IPS “Linking Conditional Cash Transfers and Rural phone vendor. The agent then credits the phone account. Finance in Brazil”). Because transactions are conducted Users can send between 100 Kenyan shillings (US$1.5) electronically using ICT, they promote transparency, account- and 35,000 K Sh (US$530) via text message to a recipient. ability, and financial discipline among all account holders, The recipient obtains the cash from a Safaricom agent by whether they are in farming, business, or government. entering a password and showing personal identification. South Africa: Wizzit. In South Africa, First National Bank partnered with a mobile phone provider, Mobile Telephone Networks (MTN), to provide services to cli- BOX 7.2. ICT Increases the Availability of Rural Finance ents who had no bank accounts but wanted to send and in South Africa receive money via cell phone. The service, called Wizzit Through its A-Card, South Africa’s uBank (previously (http://www.wizzit.co.za/), has enabled 500,000 South Teba Bank) (http://www.tebabank.co.za/index.php) Africans to send and receive money from relatives, pay offers affordable and accessible financial services to for goods and services, check balances, and settle utility communities, especially in rural areas, that were previ- bills. Previously, South Africans often paid couriers the ously denied access. The card is used with a point-of-sale equivalent of US$30–50 to deliver cash to relatives. Now device that enables customers to access a transactional such transactions cost only US$0.50 through mobile banking account. The primary banking products and ser- bank networks. The greatest impact is in rural areas, vices include standard savings and credit accounts and a where 80 percent of farmers still lack back accounts. facility by which state social grants are deposited directly Wizzit accounts, unlike regular bank accounts, do not into a customer’s bank account. The United Kingdom’s expire if customers do not use them regularly, which is Department for International Development, ShopRite, critical for seasonal activities like agriculture.b and Checkers partner with uBank in this project. Source: Author. (a) Jack and Suri 2009,6; Source: Cracknell 2004. (b) Kimani 2008. I C T I N AG R I C U LT U RE 172 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T The need for ICT-based government services becomes more BOX 7.5. Financial Service Providers in the United important as the financial sector expands and the sophistica- States and Mozambique Use ICT to Improve tion and complexity of financial products grow (box 7.4). The Risk Management availability of a common information technology (IT) platform enables government at all levels (municipal, state, federal) to The United States. In the United States, Sevak obtain accurate information about the availability and affordabil- Solutions and Financial Ideas are piloting technology that ity of financial services in rural areas, the financial well-being allows credit decisions for microfinance clients to be of financial service providers, the indebtedness of citizens, and made electronically, increasing transparency between related information. This information enables policy makers and lenders and lendees. Initial tests will be carried out with regulators to make appropriate decisions with respect to the U.S. military personnel and their families, some of whom rural financial sector. ICT can make information gathering and experience financial distress caused by limited financial monitoring and evaluation possible on a real-time basis. literacy and predatory “payday” lenders (http://www .sevaksolutions.org/prototypes/finideas.html). A similar Governments require information systems for their own man- idea could be useful in developing countries, particularly agement and operations with respect to making policy and as farmers and rural citizens gain further access to loans regulating the rural financial sector. Such information systems and credit. can be linked with financial infrastructure (such as payment Mozambique. The Banco Oportunidade (a microfinance systems) and applications that can reach most rural clients. bank) introduced its Client Relationship Management (CRM) system, a Web- and cloud-based system that BOX 7.4. Increased Operational Efficiency in Africa assists with processing and monitoring loans and is through ICT accessible to loan officers, managers, and country and regional teams. The CRM uses data from land mapping IBM and CARE: The Africa Financial Grid. IBM and and farmer and crop profiling conducted with agricul- CARE are designing the Africa Financial Grid, a shared tural clients to process loan applications electronically, financial service and infrastructure model that will, for taking into account the standard data and farmer, crop, example, help microfinance providers reduce their oper- and national limits. After a loan is approved, the CRM ating costs, streamline lending processes, scale up, and sends the data to the bank’s accounting system and integrate their services with other resources such as assists in loan disbursement, monitoring, and recovery, credit bureaus, financial institutions, and international providing real-time information. The CRM has a personal payment networks. The Africa Financial Grid will even- dashboard, specific to each bank team member, which tually link with telecommunications providers to enable allows inputting and monitoring related to the team customers to repay loans or carry out money transfers member’s specific line management and process con- via mobile phones or other devices. trol responsibilities. Ghana: E-Zwich payment system. The Bank of Ghana Sources: Sevak Solutions 2008; Management Reports for Banco Opor- tunidade in Mozambique. has rolled out a national payment and settlement sys- tem in the form of an electronic clearinghouse for all banking and financial institutions called e-Zwich (http:// the market and clients and improve their ability to expand www.ghipss.net/e-zwich). The Bank of Ghana has also lending. (See IPS “RFID Facilitates Insurance and Credit for issued a biometric smartcard, which is a very secure India’s Livestock Producers” for more detail on the impor- way of paying for goods and services. tance of ICT in managing lending risks.) Sources: IBM 2007; B&FT 2010. Authentication Improved Risk Management Using a variety of technologies, ICT can help financial ser- Through ICT, financial institutions and intermediaries can vice providers and government authenticate individuals, better manage the risk involved in increased lending, espe- inventories, and assets in rural areas (box 7.6). For example, cially in lending to lower-income and rural clients (box 7.5). biometric technology captures and stores information that is Credit bureaus and collateral registries can equip financial unique to every person, such as fingerprints, retina scans, service providers with better financial information about and facial images. Its increasing availability and decreasing ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 173 cost has made it useful in developing countries, where it Disseminating Information limits identity theft and facilitates the development of credit ICT applications perhaps best known for their capacity to dis- markets. The ability to track individuals in a credible way over seminate information. Online videos, television, and commu- time provides incentives to individuals to repay loans and nity radio can improve farmers’ financial literacy by informing reduces the risks faced by lenders. Financial service provid- them about the benefits and risks of credit and various bank- ers can use biometric tools to provide services to individuals ing transactions. At basic rural Internet kiosks, farmers can who may not have a national identity card or never learned acquire accurate financial information, such as market prices, to sign their names. (See IPS “Using Biometrics to Provide to improve productivity and sales. Rural Services,” in Module 12.) Similarly, radio-frequency identification (RFID) can count and track livestock, harvests, and inputs, among other things. Global positioning systems Conclusion (GPSs), satellite data, and weather-based electronic sensors These brief examples provide some idea of innovative, on- can collect data necessary to create and price crop insurance the-ground initiatives that have brought financial services policies, particularly index insurance programs. to rural areas. All of these initiatives hold promise but face challenges, which, in the end, may not enable them to be BOX 7.6. Using ICT to Identify Financial Service Clients scaled up or replicated. Even so, they demonstrate that it is in Africa and South Asia possible to provide financing for agriculture on a sustainable basis and at a reasonable cost. Many of these initiatives are Malawi: Biometric technology in rural credit mar- based on the premise that the policy environment will allow kets. In 2009, 3,200 smallholder paprika farmers in such innovations to flourish. Malawi who had applied for loans to purchase agri- cultural inputs were randomly assigned to control and The next sections of this topic note explore two innova- treatment groups. The treatment group was electroni- tive practices in greater detail. The first one, Brazil’s Bolsa cally fingerprinted and told that their fingerprints would Família, uses an IT platform to extend financial services to be stored and used to validate their eligibility for future people who have been excluded from using them. The sec- loans. Repayment rates rose by 40 percent in the treat- ond one, a livestock insurance and credit scheme in India, ment group. The increased rate of repayment and the uses RFID technology to reduce the risk inherent in providing resulting savings from avoiding default could justify the these services to poor producers. costs of deploying an IT system to collect fingerprints for all loan applicants. Kenya: Kilimo Salama. The Kilimo Salama index insur- INNOVATIVE PRACTICE SUMMARY ance scheme uses weather indicators as a proxy for loss Linking Conditional Cash Transfers and Rural of inputs. The insurer collects premiums and distributes Finance in Brazil payouts via mobile phone, which reduces assessment A 2009 study found that governments worldwide transfer and administrative costs. Kilimo Salama also employs cash to more than 170 million poor people through social a “pay-as-you-plant” sales model, in which insurance protection programs providing cash allowances, health policies are sold for each input purchased. benefits, and pensions (Pickens, Porteous, and Rotman India: Biometric ATMs. ICICI Bank and the Government 2009). The number would be much higher if government of India launched an initiative in 2004 to offer banking wage payments were included. In comparison, an estimated services to people who earned less than US$40 per 99 million people access microfinance loans, but few of month (http://www.icicibank.com/). The service relied these payments advance the goal of rural financial inclusion. on biometric ATMs (based on fingerprint scans) and Three-quarters of government-to-person (G2P) payments biometric smartcards that do not require personal iden- are delivered in ways that do not allow people to store the tification numbers, which can be forgotten or stolen. payments until they need the money, transfer the money to The ATMs cost 5 percent of what these wage-earners others, or access them easily (from the perspective of cost have been accustomed to pay at kiosks offering similar and distance). services. ICT creates a significant opportunity to exploit the synergy Sources: Giné 2010 for Malawi; Ogodo 2010 for Kenya; ICICI Bank 2001 for India. between G2P payments and financial inclusion. The reason- ing is that if the government were to facilitate development I C T I N AG R I C U LT U RE 174 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T of the required infrastructure, institutional capacity, and Bolsa Família: The Applications and Their Impact literacy to deliver government payments into basic savings Of the programs just mentioned, Brazil’s Bolsa Família accounts that poor recipients could access easily, those program is exceptional in its scale and impact. Created in accounts might also be used to channel a wider array of 2004, the program consists of monthly cash transfers to financial services to the same segment—a segment that cur- poor households with children or pregnant women as well as rently has little or no access to such services. unconditional transfers to extremely poor households (Anna Fruttero, World Bank, personal communication). In 2007, the While three-quarters of G2P payments have not yet program reached 12.4 million households—one-quarter of exploited this opportunity, some governments are using the country’s population. ICT to reduce the transaction and administrative costs of implementing government transfer programs that also Of the 13 million Bolsa Família family recipients, 3.84 percent serve as vehicles for financial inclusion. Examples include withdraw benefits using their electronic benefit card at one Brazil’s Bolsa Família (“family allowance”) program, imple- of 13,000 lottery kiosks, correspondents, or point-of-sale mented through Caixa Economica (http://www.caixa.gov terminals belonging to merchants acting as agents of Caixa .br/Voce/Social/Transferencia/bolsa_familia/index.asp); Economica, the bank that holds the grant delivery contract Colombia’s ACCION Social (http://www.accionsocial.gov.co (figure 7.7). In 2004, when cards were first issued to Bolsa /portal/default.aspx); Kenya’s Hunger Safety Net Program, Família recipients, only 24 percent of customers said that through Bankable Frontier Associates (http://www.hsnp.or using the card was “easy” or “very easy,” but one year .ke/index.php?option=com_content&view=article&id=81: later, the number had risen to 96 percent (Pickens, Porteous ending-hunger&catid=38:fp-items); Mexico’s Oportunidades and Rotman 2009; Anna Fruttero, World Bank, personal program, implemented through McKinsey and BANEFSI communication). (http://www.oportunidades.gob.mx/Portal/); Peru’s Juntos (“together”) program (http://www.juntos.gob.pe/); and South The electronic benefit cards did not quite constitute finan- Africa’s Department of Social Development (http://www cial inclusion because the value of the cards had to be used .dsd.gov.za/) (Rotman 2010b). The Government of India within three months or it would expire. Nor was the value of has used the Financial Inclusion Network and Operations the card easily transferable. In response, Caixa Economica platform to deliver social transfers as well (see IPS “RFID decided to migrate the Bolsa Família recipients from the elec- Facilitates Insurance and Credit for India’s Livestock tronic benefit card to a Conta Caixa Facile (“easy account”), Producers”). a financially inclusive account that includes a Visa-branded FIGURE 7.7. Channels for Financial Inclusion for Bolsa Família Beneficiaries 80 68% 70 60 50 Percent 40 30 20 16% 12% 10 5% 0 POS ATM Lottery Correspondents kiosks Source: Pickens, Porteous, and Rotman 2009. Note: POS = point of sale. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 175 debit card. As of October 2009, the bank had converted Monitoring the whereabouts and health of livestock poses 2 million recipients to the Conta Caixa Facile. Caixa also has a significant challenge for both farmers and financial institu- experimented with offering insurance to Conta Caixa Facile tions. Insurance companies must be able to validate reports holders, is considering microloans, and has developed a of livestock losses to avoid the moral hazard problems (the financial literacy program for new account holders. false claims) that plague insurance delivery and drive up the cost of insurance for all farmers. Most livestock move around to graze and are therefore susceptible to injury, theft, Two Key Enablers, One Key Lesson starvation (when drought reduces foliage and pastures), and Though G2P recipients often have limited schooling and little drowning in floods. Monitoring animal health is even more exposure to banking, these limitations have not prevented important when animals are concentrated in intensive pro- them from using electronic infrastructure as long as the ser- duction facilities where the risk of disease is high. vices match their needs. In Brazil, two key enablers fostered success with electronic transfers through Bolsa Família. First, Traditional livestock monitoring is cumbersome and expen- the value of the Conta Caixa Facile is significantly enhanced sive. Farmers must hire or use family labor to herd, pasture, by a wide national network of over 20,000 contact points or otherwise keep track of animals to keep them safe. Banks formed by Brazil’s preexisting financial infrastructure of and insurance companies need to spend time and money to ATMs, bank branches, and point-of-sale-equipped merchants find and identify individual animals to verify reported losses that handle deposits and withdrawals. Second, government or take possession if owners have defaulted on loans. policy favoring cash transfer programs such as Bolsa Família drives the growth of the Conta Caixa Facile. The key lesson is The use of RFID technology has reduced the cost of monitor- that a government transfer program can indeed be a vehicle ing livestock. RFID uses electromagnetic waves to exchange or instrument for financial inclusion. data between a terminal and an electronic tag attached to an object that enables identification and tracking (image 7.1). At a minimum, most RFID tags have an antenna for receiv- INNOVATIVE PRACTICE SUMMARY ing and transmitting the signal and an integrated circuit for RFID Facilitates Insurance and Credit for India’s performing specialized functions such as monitoring animals’ Livestock Producers location, heart rates, or temperatures and storing and pro- cessing information on animal weights, feeding histories, and Worldwide, 60 percent of rural households are estimated to immunizations. The tags can be read by terminals or readers own livestock (including cattle, goats, pigs, sheep, poultry, honeybees, and even silkworms) and to earn 10 percent of their income from products such as meat, milk, cheese, eggs, honey, raw silk, wool, hides, and skins (FAO 2009,34). Livestock perform numerous vital IMAGE 7.1. RFID Can Be Used to Track Cattle and Manage Herds functions. They are a savings mechanism, a form of insurance, collateral for loans, a source of food security, an aid to farm opera- tions, a means of recycling waste products, and form of controlling insects and weeds, and a powerful source of opportunities for women to earn income (which promotes gender equality) (FAO 2009,33). For this reason, livestock constitute some of the most important assets of rural house- holds. Their loss through theft, disease, or drought can push households into poverty or deepen the distress of already impov- erished households. Insurance products piloted in Mongolia, Kenya, and India seek to mitigate the risk of such losses. Source: Curt Carnemark, World Bank. I C T I N AG R I C U LT U RE 176 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T from several meters away and beyond the line of sight of the policy issuance system. PKGFS and DNE, which manage the reader. The readers can be used to access the stored informa- RFID technology and health services, must verify that the tion or place additional information on the chip. producer does indeed own the animals he or she wishes to insure and that the animals are healthy. Once this informa- The technology allows farmers to better manage their herds tion is verified, PKGFS collects the premium (PKGFS can and enables farmers, banks, and insurers to locate animals. issue a loan for the premium if necessary) and the producer’s RFID tags have become 99.9 percent reliable and have information and transmits it to HDFC Ergo, which activates dropped in price. Prices vary by location, but a basic RFID the policy, usually in less than three days (IFMR Trust 2008). chip costs approximately US$0.15, whereas readers can range from US$100 to several thousand dollars, depending Once a policy is issued, DNE registers the insured animals on their sophistication (RFID Journal 2010). at the farm, tags them, and records their vital information in a computer database. Then DNE begins regular checkups to ensure that the insured animals remain in good health. A Business Model for Delivering Cattle Insurance Veterinarians update the computer database every time they in India perform a checkup. In entering this information, they must scan India is the world’s largest milk producer, but only 7 percent the RFID tag of each animal to collect the unique ID number, of India’s cattle are estimated to be insured (Economic Times which must be entered into the database along with the lat- 2009). Insurance would not only protect producers from est health update. This procedure prevents veterinarians from losses but also improve their ability to obtain loans to increase avoiding farm visits and entering false data into the system.1 If their herds, because commercial banks are more willing to an animal should die, DNE agents verify the death and notify lend toward the purchase of insured cattle. PKGFS, which connects to HDFC Ergo to ensure payout. In September 2009, several institutions in India teamed up to offer cattle insurance to farmers in two districts of the Key Enablers southern state of Tamil Nadu. The Institute for Financial One key enabler was leadership in coordinating important Management and Research (IFMR) Trust, a private trust that stakeholders. The partnership between the bank/insurer has pioneered financial inclusion efforts, joined HDFC Ergo, a (HDFC Ergo), the logistics organization (DNE), the rural finan- commercial bank that provides insurance, and Dairy Network cial institution (PKGFS), and the coordinating group (IFMR Enterprise (DNE), a supply chain and logistics organization, Trust) was critical for ICT-enabled insurance to promote to design and deliver the new insurance product, which has financial inclusion.2 The leadership demonstrated by IFMR several unique features. Trust in assuming a coordinating role cannot be overstated. Elsewhere, such a role might also be performed by the gov- First, the insurance is cheaper than other insurance offerings, ernment or a public financial institution. with a premium of 2.9 percent of the insured value—typically 10,000–20,000 rupees (Rs), or US$200–400, compared to A second key enabler was the Internet and communications the typical premium of about 4.5 percent. Second, the time infrastructure. The PKGFS customer management system needed to issue a policy or indemnity payment is only 72 connected to HDFC Ergo requires Internet and communi- hours, compared to the norm of 15 days or more. Third, the cations infrastructure. Such infrastructure is increasingly insurance policy provides access to preventive veterinary accessible in India. According to the World Bank’s World services and medicine through DNE to maintain the health Development Indicators, teledensity—a measure of tele- of insured animals. Finally, insured animals are tracked using phone access—is 60 percent (though 100 percent in urban RFID chips in ear tags. The tags cost Rs 60 (US$1.20) (stan- areas and 20 percent in rural areas), and 670 million people dard metal tags cost US$0.30). in the country subscribe to a mobile phone service. India has 4.5 Internet users per 100 people, double the number for the Policies are sold through Pudhuaaru Kshetriya Gramin average least-developed country (though less than one-third Financial Services (PKGFS), which has 25 branches serving of the average for low- and middle-income countries). 135 villages in the two remote districts where the new prod- uct is being piloted. Each branch has three agents who serve approximately 2,000 households. Policies can be issued 1 If services other than routine preventive care are required, the producer must pay for them on top of the insurance cost. rapidly because the PKGFS customer management system 2 This arrangement resembles the arrangements in another suc- is connected in real time and integrated with HDFC Ergo’s cessful program, DrumNet in Kenya. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 177 Growth and Lessons a national or regional identification system is probably neces- Since its launch in 2009 in Tamil Nadu, the program has sary for commercial banks to become sufficiently confident to expanded to the states of Uttrakhand and Orissa. The mortal- extend financial services to the poor to buy livestock. ity rate of cows has improved with the provision of preven- Several factors appear to limit adoption. Given insurance tive care, especially deworming drugs and vaccinations. companies’ propensity to renege on contracts, producers lack Despite this initial success, two issues remain to be resolved: confidence that indemnities will actually be paid. Producers moral hazard issues and low adoption. With regard to moral haz- also seem to be confused by the livestock insurance product ard, it appears that RFID tags can be removed far too easily from compared to a cheaper personal accident insurance product animals’ ears, and without a national or even regional animal offered by PKGFS. Where efforts have been made to explain tracking system, it is possible to have duplicate tags. Australia’s the difference, a higher rate of adoption has been observed National Livestock Identification System tracks all animals, each (Gupta 2010). The key lesson is that technology cannot sub- of which has two RFID chips (one in the ear, one in the diges- stitute for human capacity. In determining whether insurance tive system). The point is that RFID technology alone may not products—even efficient, ICT-enabled products—will suc- resolve moral hazard problems. Using two tags may help, but ceed in a given area, practitioners must consider the prevail- the key lesson is that an institutional framework in the form of ing basic literacy and financial literacy rates. Topic Note 7.2: POLICY STRATEGIES AND REGULATORY ISSUES FOR ICT-ENABLED RURAL FINANCIAL SERVICES TRENDS AND ISSUES organizations is in Sri Lanka, which has 600 distance learning As noted, a diverse group of stakeholders is involved in centers and e-libraries that penetrate deeply into rural and providing financial services to rural dwellers. To design sup- remote areas, cover 22 of 24 districts in all nine provinces, portive policies, provide the necessary infrastructure, and and link more than 70,000 underserved users to markets and provide appropriate, affordable financial products based on information essential to their livelihoods.3 At the telecenter assessments of local needs, governments must explore in Bakalacia, users include farmers checking market prices, partnerships with the private sector and rural communities. entrepreneurs marketing their businesses, community lead- In turn, governments can devise and implement policies that ers searching for information on how to improve community give rural communities and private enterprises incentives to livelihoods, mothers seeking first aid and connecting to hos- participate in the rural financial sector. pitals and doctors in the capital city, children and students interested in learning, and citizens communicating online, For example, the Government of India promoted rural digi- requesting government services, or doing word-processing, tal services by partnering with the private sector to set up printing, and copying. Surveys indicate a user satisfaction village kiosks with IT infrastructure. The kiosks offered a rate of 96 percent. An estimated 48 percent of users are single window for providing government services electroni- women; 82 percent are youths up to 25 years of age. These cally at the village level (for example, issuing land records telecenters can also be used for financial services, like point- to farmers). The kiosks improved citizens’ experience in of-sale terminals. dealing with government, because they reduced the time needed for officials to respond to citizens’ requests. They also created a village database that could be used to reach LESSONS LEARNED more citizens. Financial service providers could potentially Financing smallholder agriculture is a complex undertaking, use this infrastructure to follow up on clients from the easily thwarted by regulatory impediments to the devel- village. opment of new products or service delivery channels. For Another example of effective public-private partnerships 3 This section draws on unpublished information from World Bank between government and ICT providers and community implementation support missions. I C T I N AG R I C U LT U RE 178 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T example, some potential financial service delivery chan- financial services throughout the economy, including under- nels, such as agency arrangements that operate outside served rural areas. physical branch offices, are not yet allowed in most coun- tries in Africa and in most of Asia. Regulatory support for The two innovative practice summaries that follow demon- such arrangements may be needed to alleviate the per- strate the importance of public policy and regulatory frame- ception of risk associated with financing agriculture and works in stimulating the use of ICT to improve rural financial livestock production. Agents can be based closer to rural systems and services. The first summary describes how ICT communities at a fraction of the cost of bricks-and-mortar minimizes information asymmetries and links farmers directly banks. From this vantage point, they can assess the risk to markets and to finance. It demonstrates how risk can be associated with lending to farmers better than banks or managed at the three operational levels of the financial service microfinance institutions. Agents can address the scale provider, market operator, and farmer. The second summary issues associated with providing financial services in rural offers another example of the benefits that accrue from a areas, such as the small size of most transactions. common ICT platform to support rural banking in India. The lack of an appropriate regulatory framework also ham- pers the development of warehouse receipts as an electronic INNOVATIVE PRACTICE SUMMARY financial instrument.4 Many countries do not recognize ware- Kenya’s DrumNet Links Farmers, Markets, house receipts as a transferrable financing instrument, even and Financial Service Providers though this product can facilitate smallholders’ access to Small-scale farmers struggle to obtain agricultural loans finance and, at the same time, improve the quality of produce, even where they have good access to commercial banks. which is often dictated by warehouse managers. Policies and Commercial banks are reluctant to lend to them, recogniz- enabling legislation would provide for the establishment of a ing the severe barriers and risks these farmers face in suc- central registry for warehouse receipts as a title document cessfully producing a crop, marketing it, and repaying loans. used by banks to grant loans. Warehouse receipts held by Smallholders face risks in transporting produce to markets, banks would be included as liquid assets under the definition finding buyers there, and earning the value they expected of the national banking act. A fund would be established to at planting. This risk not only introduces uncertainty in collect assets from warehouses to indemnify receipt holders their income stream but, as noted, also inhibits their abil- in the event of a loss. Coherent industry standards and certi- ity to obtain the credit to make the productivity and quality fication regulations would be introduced. improvements that will break the cycle of poverty. Many ICT-enabled applications described in this module (and Much of the risk in accessing markets can be mitigated, and Sourcebook) require an enabling legal and regulatory environ- farmers’ access to credit can be improved, if farmers can ment. In many countries, point-of-sale devices, m-banking, forge better links with agribusiness buyers such as domestic and other innovative applications have yet to be introduced supermarkets, agroprocessors, or (further along the supply because the corresponding regulations have not been intro- chain) exporters. When such links are weak, buyers also duced, despite evidence that they can extend cost-effective face problems in sourcing sufficient produce of the quality demanded by supermarkets or food processors. Farmers 4 Warehouse receipts are not covered in depth by this module often do not know that the market is willing to pay a high because of the limited ICT used. Nonetheless, the basics for price for certain products that meet certain quality standards; establishing warehouse receipts as a financing mechanism are not normally addressed, and, as a result, some interventions do even if they do know, they lack the financing to switch to a not succeed. In addition to proper legal frameworks that protect new and more profitable crop or the knowledge to achieve all parties, there must also be a critical mass of farmers’ orga- the desired level of quality. nizations that can bring produce to the warehouse. The com- mercial banks and other service providers must be brought into the design from the very beginning, and there must be interest Better links between farmers and buyers would help to over- from the private sector to participate in the operations of the come these obstacles, but they are difficult to form. Mistrust scheme. Warehouse receipt mechanisms also often lack the long-term objective of linking the scheme to the overall com- between farmers and buyers runs deep. Buyers fail to honor modity exchange system, which would then encourage small- purchasing agreements or do not pay the agreed-on price scale farmers to participate. Warehouse receipts can be useful at harvest. Farmers abandon purchasing agreements and with the proper frameworks and implementation, however. The Uganda Commodity Exchange warehouse receipt mechanism, sell their produce to another buyer or on the spot market for example, is working well for smallholders. if they can get a more favorable price. Aside from these ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 179 problems, the practical aspects of working with large num- in doing so. ICT devices and systems such as mobile phones, bers of small-scale farmers—organizing them, negotiating smartcards, and management information systems facilitate prices, sharing information, and managing their agronomic communication between the parties and help to manage activities—are daunting for agribusinesses. Even if they the administrative challenges of tracking large numbers of were easy to resolve, agribusinesses still lack the core capa- smallholders, delivering loans cost-effectively, ensuring that bilities and often the resources to extend financing to all of funds are properly used, and collecting payments. those farmers. Links with Key Players The less risk exposure a client presents, however, the more banks are willing to lend. If farmers can demonstrate that an DrumNet recognized that it could not improve financing for agribusiness is willing to purchase what they will produce, a farmers without linkages with financial intermediaries and bank will be much more amenable to financing the purchase buyers (DrumNet 2007). In 2008, DrumNet began a pilot of inputs and labor for production. The challenge for the bank program in the sunflower subsector to facilitate partner- is then limited to the transaction costs of disbursing funds, ships that would give smallholders access to finance and ensuring the loans are used for their stated purpose, collect- improve efficiency throughout the supply chain. The agri- ing payments, and bearing the exposure to weather risks business buyer, Bidco, was the largest manufacturer of (unless there is crop insurance). vegetable oils, fats, margarines, and protein concentrates in East Africa and needed a steady supply of sunflower seeds. DrumNet is a project of Pride Africa, a nonprofit that has pro- The financial institution was Equity Bank (also involved with moted the spread of microfinance across the continent since to M-PESA, discussed above). Farmers were recruited to 1988. Created in Kenya in 2002, DrumNet was designed to grow sunflowers instead of their typical crop. Two additional provide market, information, and financial services to small- players proved important to the partnership. Input suppli- holders, and it has evolved a sophisticated technology plat- ers had to agree to sell products to farmers on credit and form to deliver these services. The project illustrates that it receive payment from Equity Bank instead of cash directly is possible for a third party to coordinate and link farmers, from farmers. AgriTrade recruited farmers and managed buyers, financial intermediaries, and operations managers to sunflower production, harvest, and collection. The benefits deliver financing to small farmers, and that ICT has a vital role foreseen from their collaboration are depicted in figure 7.8. FIGURE 7.8. Benefits to Stakeholders in DrumNet’s Sunflower Supply Chain Partnerships More demand for products Producers Grew under structured contracts without credit burden (fixed price) with buyers Aware of producer needs, so can Access to credit and cashless/ more easily manage stocks transparent transactions UM DR T Input retailers NE Equity bank Markets • Finance • Information Increased, more predictable, and Lent to previously nonaccessible higher-quality supply without clientele; increased deposit base cumbersome field mobilization Reduced overall cost and risk Reduced time and cost involved Bidco involved in agricultural lending in producer payment Source: Adapted from Pride Africa n.d. I C T I N AG R I C U LT U RE 180 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T FIGURE 7.9. Flow of Goods, Information, and Money in DrumNet’s Sunflower Supply Chain Partnerships Farmer groups Input retailer Buyer Collection point UM DR T Bank NE Legend: Flow of farm input loan Flow of produce payment Flow of produce Flow of farm inputs Source: Adapted from Pride Africa n.d. Services and Revenues 25 percent of the value of the input loans and acts as security DrumNet negotiated the contracts that brought these par- for them (DrumNet 2009). ties together and managed the flow of information and financial transactions among them (figure 7.9). Through this arrangement, farmers received credit for inputs from ICT Applications Equity Bank upon signing a fixed-price contract with Bidco. DrumNet provides the ICT platform through which all To ensure that the loans would be used for their stated pur- financial transactions and communications take place. The pose, farmers received no cash from Equity Bank. Instead, platform includes mobile phones, SMS, and email to enable through another agreement facilitated by DrumNet, Equity the parties to do business. All payments from buyers pass pays input retailers directly for materials purchased by through DrumNet accounts at the bank. farmers on credit. When the produce is delivered to Bidco, Bidco pays farmers through DrumNet, which first deducts Information is transmitted up and down the supply chain dur- the cost of the loan and transfers it to Equity Bank. The ing the crop cycle, primarily via SMS. Bidco is informed about remainder is sent to the farmer’s account with Equity Bank the area planted to estimate production and plans accord- (Campaigne and Rausch 2010). DrumNet earns revenue for ingly. The processor monitors crop progress and passes on this service. important crop management information to farmers. Input retailers are updated on which products to stock at what Farmer groups (typically consisting of 20–100 farmers in time, and producers learn about collection dates and loca- the same area) open an account with Equity Bank through tions long before harvest. which all payments are made. Individual farmers can be paid in cash, but cash is withdrawn from the bank at the group The input retailers, trained in basic recordkeeping for level to reduce transaction costs. Each member is required DrumNet, submit virtual receipts to DrumNet via mobile to contribute to a Transaction Insurance Fund, which is phone and receive payments into their bank accounts in ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 181 two-week cycles through the DrumNet system. Equity Bank harvest was completed. The complex arrangement between is shielded from these many small transactions, as it simply farmers, buyers, banks, and retailers certainly allows farmers opens a single line of credit in DrumNet’s Master Account, to obtain credit, reduces defaults, and increases trust. Yet the receiving regular principal and interest payments from relationship remains extremely fragile. It is still susceptible to DrumNet from this revolving account. DrumNet’s manage- mistrust. Side-selling by farmers, scams from input retailers, ment information system provides the internal controls to buyers reneging on agreements, and hidden fees from the track and report on compliance throughout the process. It bank all erode trust and undermine the relationships. Such also retains data to establish user and credit ratings. problems occur more often at the beginning of the process. As the partners come to understand each other’s operations and develop trust, the problems should lessen. As noted, Key Enablers efficiency in service delivery is one way to mitigate some of Key enablers are the partnerships between Equity Bank, these risks. Bidco, input suppliers, and farmers that enabled the system to work. ICT plays a significant role in sustaining the trust The partnership is also susceptible to problems arising from and confidence that make these relationships work. It pro- typical production risks such as droughts or floods. After vides the visibility, communication, and speedy transactions the first year, when one region of sunflower growers was that bind partners together for their common benefit. The affected by a drought (McCormack 2009), the issue of loan DrumNet system allows the various partners to be in touch repayment became contentious. Would Equity Bank allow an constantly, reducing the potential for misunderstanding additional year to repay? Should DrumNet require a higher and unilateral decision making. Each partner can view the security deposit from farmers? Failure to reach agreement actions of the other partners. If there is no rainfall, Bidco on such flashpoints before a partnership is implemented can knows to downgrade production plans, Equity Bank knows unravel hard-won cooperation. and can begin to work with farmers to make refinancing arrangements, and so on. Collaboration replaces confron- tation. The speed of payment permitted through DrumNet is also central to maintaining sound relationships. Farmers INNOVATIVE PRACTICE SUMMARY note that they get paid in days rather than months, as was A Common Platform Delivers Financial Services customary. The same can be said for the retailer and bank or to Rural India the buyer and bank. In India, Financial Inclusion Network and Operations (FINO), an Indian technology company, and ICICI Bank As the previous paragraph implies, another key enabler have used ICT to facilitate remote bank transactions and was infrastructure. DrumNet’s ICT platform relies on dramatically reduce the costs of serving rural areas. Using mobile phones and the Internet. Based on the World smartcards and point-of-sale devices connected to a cen- Bank’s World Development Indicators, it appears that tralized ICT platform, FINO has overcome the traditional Kenya’s infrastructure for both technologies is above problems of low volumes and values of transactions in average compared to that of other developing countries in rural areas. Sub-Saharan Africa. Kenya has wireless coverage across 77 percent of its territory (the average for developing ICT Application and Business Model countries in Sub-Saharan Africa is 75 percent) and 42.1 mobile subscriptions per 100 people (compared to 33.3 In partnership with IBM and i-Flex (now Oracle), FINO in developing countries in Sub-Saharan Africa). Similarly, developed a remote transaction system that uses a small Kenya has 8.7 Internet users per 100 people compared to biometric point-of-sale device, in combination with a 6.5 for Sub-Saharan Africa. biometric smartcard, to authenticate users and conduct transactions (figure 7.10). Transaction data are sent over the Internet to a core banking system that houses the Outcomes and Lessons data and allows for analysis. Besides the obvious benefit More than 2,000 smallholders participate in the sunflower of allowing remote transactions, the service provides the pilot. Several lessons have become apparent since the first ability to uniquely identify customers and record their I C T I N AG R I C U LT U RE 182 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T FIGURE 7.10. Other Types of ICT Used by Financial Inclusion Network and Operations Wireless point-of-sale device Customer smartcard Receipt generation slot Jane Doe Fingerprint scanner 9000 0001 0736 1728 Slot to insert operator Encrypted storage of or customer card account and customer information Sources: FINO and author. transactions over time. The transaction history for each loans and cattle insurance combined in a single product (India customer can be used to provide credit bureau services Knowledge@Wharton 2010). to mainstream banks and allow them to lend to qualified borrowers in whom they have confidence (Business Line Profit Margin and Cost Structure 2006). FINO earns approximately US$0.10 for each transaction. A similar transaction costs US$1.00 at a bank and about An Extended Agent Network US$0.40 cents at an ATM (Rotman 2010a). The com- FINO employs over 10,000 agents, 95 percent of whom pany had turnover of US$22.5 million in 2009–10 (India are based in rural areas. The agents, called bandhus Knowledge@Wharton 2010). FINO aims to keep interest (“friends” in Hindi), form a network of human ATMs. Each rates below 20 percent. The company has a cost struc- agent is trained and equipped with the handheld biomet- ture similar to those of other microfinance institutions ric transaction device that allows clients with smartcards (figure 7.11), but it claims to have operational costs of to access banking services. Balance transfers, deposits, 4–6 percent, nearly on par with traditional banks, because and withdrawals can all be done through the smartcard its rural agents cost less than urban agents, technology system, even where the Internet is not accessible, since reduces administrative paperwork, and FINO shares the the smartcard retains the user’s account information (India cost of maintaining the agent network with other banks Knowledge@Wharton 2010). New transactions are stored that use FINO to conduct transactions (India Knowledge@ on the transaction device until the Internet is available, at Wharton 2010). which point the data are synchronized with the core bank- ing system. Scale and Sustainability Products and Services FINO has grown spectacularly since it was launched in July Through its human and electronic network, FINO deliv- 2006. The company reached 2 million customers by 2008 ers microfinance transactions for various banks as well as (FINO 2008) and 5.5 million by 2009 (findBiometrics 2009), its own banking services. Originally meant as a conduit within an estimated market of 500 million rural people. By for other financial institutions, FINO decided to offer its September 2010, “there were 21 million customers, 22 own financial services—savings, credit, insurance, and banks, 10 MFIs, 4 insurance companies and 12 govern- remittances—primarily because banks and businesses ment entities covering 22 states, 266 districts and 5,884 remained reluctant to pursue the rural market (India gram panchayats [village councils].” The ambitious goal Knowledge@Wharton 2010). was to reach 100 million customers by July 2011 and have revenue turnover of US$52 million (India Knowledge@ FINO is also testing new initiatives. For instance, the com- Wharton 2010). pany opened bank accounts for dairy farmers that supply milk to the National Dairy Development Board in Gujarat. The financial viability of the agent network is questionable, Along with a savings bank account, farmers can receive bank however. At about US$23, the average monthly profit for ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 183 FIGURE 7.11. Cost Structure of Microfinance Institutions (MFIs) in India (% of loan amount) Typical MFIs are less efficient than traditional banks on a unit basis, with meaningfully higher operating costs per loaned dollar 20% 31% 3% 8% 14% 8% 3% 3% Loan loss Cost of Operating Total Total Operating Cost of Loan loss reserves funds costs costs costs costs funds reserves Typical MFI Traditional banks Sources: CGAP and IBM. a FINO agent is less than 20 percent of the profit made Government of India, industry, and the World Bank—has by an M-PESA agent in Kenya or an agent in Brazil, both consistently innovated in service delivery. In 2004, the of whom make around US$130. FINO agents surely need bank launched the Kisan (“farmer”) Credit Card in Andhra additional income to supplement that from FINO, but Pradesh to facilitate delivery of cash loans and credit to being an agent for FINO takes up an enormous amount tobacco farmers (ICICI Bank 2001). In the same year, ICICI of time, leaving little time for another job unless there are unveiled biometric ATMs in peri-urban areas. The ATMs cost synergies between the travel required for FINO and the 5 percent of typical ATMs. other job (Rotman 2010a). These steps led ICICI to envision a technology platform Key Enablers that could allow banking transactions in rural areas, and An operation on such a large scale requires strong support ICICI began incubating FINO to achieve this goal. The effort from major institutions, policy initiatives, and infrastruc- was guided by leaders of other companies that ICICI had ture. FINO has benefited from all of these key enablers. A incubated: Crisil, a ratings agency, and Ncdex, a commodi- major advantage was that ICICI Bank, India’s largest private ties exchange (Business Standard 2006). FINO was spun financial institution with assets of US$81 billion, incubated off in 2006, with ICICI retaining a 19 percent stake. Intel FINO. It transferred critical technical and administrative Capital and the International Finance Corporation (IFC) each capacity to the company in addition to financial support. have a 15 percent stake, the Life Insurance Corporation of India has 8 percent, and various other public banks have Early on, ICICI Bank recognized the challenge of reach- the remaining 22 percent (figure 7.12) (India Knowledge@ ing rural customers. The bank—founded in 1955 by the Wharton 2010). I C T I N AG R I C U LT U RE 184 MODUL E 7 — BROA D ENING S MA LLH OLD ERS ’ AC C ES S TO FINA NC IA L S ERVICES THR OUGH IC T FIGURE 7.12. Financiers of Financial Inclusion Network and Operations Public sector International 8% 15% investors LIC 30% IFC 22% Intel Capital 40% UBI, Indian Bank 15% and Corporation Bank HAV 3 ho 2% (Maur ldings 2% itius) IFMR trust ICICI Bank 10% ICICI Lomb 19% ard 9% 28% Private equity Source: fino.co.in. Government policies and regulatory incentives have also to the development and implementation of a rural transac- been instrumental in helping FINO to grow and maintain tions system as ambitious as FINO. Another important les- its momentum. First, FINO earns most of its revenue by son is that the government can be an important customer. delivering government transfer payments for the Social It can drive the transaction volumes necessary to make rural Security Pension system, the Health Insurance initiative, financial transactions viable. and the National Rural Employment Guarantee Act (India Knowledge@Wharton 2010). Second, FINO facilitates transactions that commercial and state banks are legally REFERENCES AND FURTHER READING obligated to perform. Since the 1960s, the Reserve Bank of Agwe, J., and A. Fissha. 2009. “Managing Risk in Financing India has required commercial banks to direct some portion Agriculture: Proceedings of an Expert Meeting Convened and (more than 40 percent) of their lending to priority sectors, Co-sponsored by AFRACA, FAO, the Land Bank of South Africa, and the World Bank.” Mendeley. http://www.mendeley.com which include rural industries and agriculture. Finally, a /research/managing-risk-financing-agriculture-expert-meeting centralized ICT platform such as FINO’s relies heavily on -convened-cosponsored-afraca-fao-land-bank-south-africa-world the telecommunications infrastructure, which is already -bank-3/#page-1, accessed July 2011. quite good in India. 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Given the lack of basic infrastructure in much of the developing world, the most successful types of ICT are robust and relatively simple. Governments, donors, and nongovernmental organizations (NGOs) generally initiate the development and testing of ICT solutions for farmer organizations, but in many instances partnerships with the private sector are essential. Three key challenges are to scale up existing applications, ensure sustainability over the long term, and ensure inclusiveness. Topic Note 8.1: Finding Better Marketing Options and Sharing Technical Information Using ICT. Mobile phone systems appear to be the most flexible technology for improving connections within farmer organizations and providing a wider range of services. Mobile phones help to tackle supply chain inefficiencies, poor logistics, and weak infrastructure in rural areas, all of which cause agricultural produce and other resources to be wasted after the harvest. Technologies that do not depend on literacy (digital photography and video clips) are extremely effective for sharing information within and between farmer organizations.  Zambia’s National Farmer Organization Develops a Text-Based Service  The SOUNONG Search Engine for Farmer Organizations in China  Field Data Collection Tool for Certified Farmer Groups in Sustainable Agriculture Topic Note 8.2: Dairy Cooperatives Lead the Way with Computerized Systems to Improve Accounting, Administration, and Governance. While farmer organizations do benefit from third-party service providers, the use of innovative types of ICT can add value by strengthening the human and institutional capacity of farmer organizations to provide better commercial services to members. Computerized recordkeeping has transformed efficiency in farmer cooperatives; approaches include both commercial systems and systems using open source software. Supportive gov- ernment policy and willingness on the part of government organizations to join partnerships are important enablers.  IT Tools for India’s Dairy Industry  CoopWorks Dairy and Coffee, Open Source Software Launched in Kenya  ICT Improves Marketing and Governance for a Malian Cooperative Topic Note 8.3: Giving Farmers a Voice and Sharing Information. Farmers’ collective voice is stronger and reaches wider audiences with the help of radio and television. Interactivity is possible and even more promising through phone-in programs and text messaging. Radio and television are also effective tools for agricultural extension. Interactivity through websites is becoming more crucial for farmer organizations, but less so for individual smallholders. Surging use of social media tools such as Facebook, LinkedIn, Twitter, and Dgroups is enabling farmers and farmer organizations to participate more intensively in policy dialogues and discussions.  Community Listeners’ Clubs in Rural Niger  Through Social Media, a Women’s Producer Network in Caribbean Small Island States Improves Its Communication Capacity, Outreach, and Knowledge Management  The Case of the Pan-African Farmers’ Organization The authors of the original Module 8 were Julie Harrod (consultant) and Pekka Jämsén (AgriCord). The reviewer of the current Module 8 is Pekka Jämsén of AgroBIG. I C T I N AG R I C U LT U RE 188 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T OVERVIEW challenges, which when solved will go a long way to improve Smallholder farmers can generate more income in a number of their lives and livelihoods. Access to timely and relevant ways. They can use better cultivation techniques and improved information in villages, many of which are remote and inac- seeds, follow practices to reduce postharvest losses, and find cessible, can empower rural citizens. Increasing aware- ways to improve their access to markets. Even so, as indi- ness and knowledge through information on government vidual entrepreneurs they may lack the knowledge or capital schemes and welfare measures can improve the quality to change the way they operate. Farmers are able to seize of life in rural areas, as most rural dwellers have difficulty new economic opportunities to improve their livelihoods and accessing the resources that the government has put in food security when they have access to natural resources, place to safeguard their welfare. Farmer organizations have productive assets and markets, information and knowledge, been striving to address these issues but often through con- and the opportunity to participate in policy making. ventional means. The use of ICT to help farmers, however, is a sure way to complement, and in many situations surpass, One strategy for men and women farmers to access produc- the effectiveness of conventional means. ICT is integral tive assets and expand their capacities is to collaboratively, to fulfilling both the lobbying and the service functions of voluntarily organize to pursue a shared goal and, through farmer organizations, speaking both for and to the farmer. innovative institutional arrangements, build useful links with Commercial activities become more efficient and transpar- public and private actors, benefit from economic opportuni- ent when supported by ICT. ties, and participate in policy making. Evidence shows that by virtue of the fact that they are organized rather than act- “ICT” is a catchall term for an increasing number of technolo- ing alone, smallholder farmers who form groups, especially gies, each offering corresponding opportunities for innova- groups resembling cooperatives, are more viable market tion. This module looks at a range of technologies, from the actors because they have more access to information, better well-established and familiar, like radio and mobile phones, to power to negotiate, and in general are better placed to seize the more specialized, such as computerized recordkeeping market opportunities. and farm management systems, global positioning systems (GPS), and remote sensing technologies that facilitate access Farmer organizations therefore play an important role in tack- to timely and accurate information for agricultural develop- ling the systemic causes of poverty, because they legitimize ment. The discussion emphasizes technologies that can (or the voices of farmers—men and women—in shaping pro- that have the potential to) reach large numbers of beneficiaries poor rural policies. By articulating farmers’ interests to pub- and perform reliably in the challenging context of the devel- lic and private institutions, farmer organizations encourage oping world. Different technologies offer different benefits, those institutions to tailor their strategies, products, and ser- achieve different objectives, and have different limitations, so vices to farmers’ needs (Zimba 2013). Farmer organizations each is considered on its own terms. encourage democratic decision-making processes, leader- ship development, and education. Given their values and Benefits Offered through ICT the principles inherent in their structure, they are also well When considering the value of ICT to farmer organizations designed to be vehicles for inclusion, especially of women and cooperatives, it is worth bearing in mind that in remote farmers and youths. rural areas of many developing countries, particularly in Farmer organizations provide services to members by forg- Africa, these organizations often are the only ones operating ing institutional links and giving farmers a collective voice. and providing peer support. Local government offices may The collective strength of an organization can help individ- be found in district headquarters and may offer some level of ual members become more efficient, if the organization’s support, usually limited by inadequate budgets, from front- services match its members’ needs. To fulfill this com- line extension officers and schools. In this context, farmer mercial function, as seen in agricultural cooperatives and organizations—as hubs for business information, transporta- producer groups, farmer organizations need to begin act- tion, storage, and credit support, as well as a place where ing as business organizations, by adopting viable business people share new systems and processes—have enormous models and developing the flexibility to adapt to changing potential, which should not be underestimated, for network- circumstances. ing and bringing people together with the help of ICT. Despite the important role that farmer organizations play Broadly, ICT appears to offer three categories of benefits to in the lives of their members, farmers still have several farmer organizations. Practical examples might cut across ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 189 these categories, and particular technologies may bring Despite the potential benefits of ICT tools, farmer unexpected benefits: organizations are rarely the first to adopt them, given that ƒ Enhanced connections to members. Through the they usually work in difficult environments with low margins organization, farmers share market information and to generate income for their members. Neither managers technical know-how, and they remain informed about nor members are preoccupied with the latest smartphone or the organization’s activities. For instance, topics tablet technology. Where particular ICT solutions are available discussed and decisions made at board or executive and necessary to guarantee better performance and benefits committee meetings can be shared with members to members, farmer organizations can be expected to be late who, for reasons of distance or cost (direct and oppor- adopters of such technology without external support. tunity) cannot attend. Decision-making processes Generally, it is governments, donors, and NGOs that have become more transparent, increasing trust between the funds to develop and test ICT solutions that may benefit members, the board, and executive managers, and farmer organizations. Most if not all of the cases illustrated the overall functioning of the organization is improved. in this module are public-private initiatives to “include the ƒ Improved accounting and administration. Farmer excluded” by promoting ICT in remote rural areas. Successful organizations are often responsible for handling very cases provide good examples for scaling up and replicating in large amounts of money that may represent the other countries and regions. cash income of thousands of farm families. Efficient recordkeeping allows an organization to better Promising Approaches serve its members, and the transparency offered by Table 8.1 summarizes the types of ICT covered in this module, computerization and other technologies enhances arranged by topic note. All of them have proved useful in address- trust. Cooperatives that have invested in modern ing one or more challenges faced by farmer organizations. management and member information systems can improve their image to attract high-quality staff and It is worth knowing that ICT applications—whether mobile gain members’ confidence. phones, computers, smart mobile applications, or radio ƒ Stronger collective voice, including improved broadcasts—are not ends in themselves; they are simply political voice. “Interactivity,” as understood in the means by which information can be captured, recorded, developed countries with good infrastructure, is summarized, displayed, and passed on more quickly. It is still rare in many parts of the world. But individual the information itself that is important. Since information farmers nevertheless “have their say” through types (on market intelligence and agricultural techniques, for of participatory engagement that were not possible instance) changes, the task of collecting it and choosing the before, such as crowdsourcing views and experiences most relevant sources is critical. Farmer organizations might using text, voice, and video technologies. Farmers have to be helped to create partnerships that will provide now learn and give feedback through services offered information that is of most use and relevance to members by their farmer organization, local government, and and management. Any intervention dealing with ICT must private sector actors. therefore consider this point. The application of ICT in these areas has facilitated greater involvement of farmer organizations and cooperatives in Key Challenges and Enablers policy processes and agricultural value chain development. With regard to farmer organizations, ICT applications currently However, these propositions all reinforce the conventional offer guaranteed improvements in enhanced connections roles of cooperatives as consumers or end users of products to members and improved accounting and administration. within the agricultural innovation system. The innovative use Already, working examples offer lessons for future devel- of ICT can add value and help farmer organizations go beyond opment of ICT interventions. The third topic discussed in these conventional roles by strengthening their organizational this module—stronger collective voice—has fewer working capacities—institutional and human—to provide commercial examples, but it may benefit more from ICT interventions in services to their members. By providing relevant services to the future. their members, organizations improve members’ ownership and access to technological and knowledge resources and Farmer organizations can function more efficiently by enhance their economic power for value chain development, using ICT to attract a wider membership and thus generate especially in terms of production and marketing. more funds and provide better services in a virtuous spiral I C T I N AG R I C U LT U RE 190 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T TABLE 8.1. Specific Types of ICT Discussed in This Module CHALLENGE FACED BY FARMERS AND THEIR ORGANIZATIONS LACK OF LENGTHY MANUAL LACK OF LACK OF ACCESS MARKET BUREAUCRATIC KNOWLEDGE TO EXTENSION INFORMATION— PROCEDURES, OF MARKET SERVICES PRICES, POOR STANDARDS BY AND LATEST POTENTIAL TRANSPARENCY, FARMER, OR LACK RESEARCH, AND BUYERS, AND INCLUDING WITH OF CONSUMER INABILITY TO EXAMPLES IN TYPE OF ICT APPLICATION SO ON THE FO CONFIDENCE SHAPE RESEARCH THIS MODULE Enhanced Mobile phones (voice Fairer relationship If GPS an option, can Informed farmer can Voice and text increas-  ZNFU (Zambia) connec- or text messaging between farmer and make it easier to sort and offer produce ingly used to contact  Coopeumo (Chile) tions to systems) to access price trader verify the source of according to required interactive radio  FrontlineSMS members information, purchasing crops—for example, standards broadcasts to solve options, and other market for organic or other problems  SOUNONG (China) intelligence; also to certification  mergdata (Ghana) access information in  IFFCO Kisan (India) broader sense. Digital multimedia Can demonstrate FO can document best  Song-taabaYalgré (cameras, video recorders, standards in effective, practice and share Association computerized presen- visual way. Can help from farmer to farmer; (Burkina Faso) tation) to share new in reaching export pictures are more  Coprokazan (Mali) techniques and effective market effective than words practices; ICT-based information on grades and standards. GPS technology for plot- Speeds recording Consumers know  Song-taabaYalgré ting source of produce. Process source of produce and Association trust claims about (Burkina Faso) organic status and  AuditAide (Côte similar characteristics d’Ivoire and Ghana) Mobile applications Fairer relationship FO can share Information available Information available,  IFFCO Kisan (India) between farmer and information for better interactivity possible  e-Granary trader transparency Improved Member transaction Reduces need for Graphic presentation  Dairy and coffee accounting systems; software for clerks, speeds of financial informa- cooperatives and admin- financial management. transactions, improves tion makes statistics (India, Kenya) istration transparency easier for coop mem-  Coprokazan (Mali) bers to understand Automated milk measure- Fairer relationship Reduces waiting  Dairy and coffee ment systems. between farmer and time for farmers and cooperatives coop amount of milk spoiled; (India, Kenya) farmers trust the automated system Stronger Local radio stations Farmers better Together with mobile Farmers better Possible to broadcast  Farm Radio collective providing market and informed about phones, can increase informed on standards information on latest International voice technical information and prices and possible connections with FO techniques; phone-in  RIU (Zambia) phone-in virtual markets. markets members and increase programs allow  Listeners’ clubs Could also share informa- transparency farmers to discuss (Niger, Zambia) tion about FO. problems TV programs are specially Market information As above for radio As above for radio Interactive problem  Doordarshan tailored to share farming broadcast solving seminars on Broadcasting Co. information—technical, agricultural issues; (India) market, problem solving, picture more effective and other. than words Websites set up by FO Can reach wider FO could put financial Inform members of Information can be  Several and producer groups; markets and other information standards required accessed online online discussion forums online to increase transparency Source: Authors. Note: BAAC = Bank for Agriculture and Agricultural Cooperatives (Thailand); FEPPASI = Fédération Provinciale des Professionnels Agricoles de la Sissili; FO = farmer organization; RIU = Research Into Use; ZNFU = Zambia National Farmers Union. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 191 of development. Many examples in this module are rela- One way of looking at the sustainability issue is to regard tively small-scale interventions that succeeded in changing well-functioning farmer organizations as a public good that the way farmer organizations operate. To speed the uptake merits support from public funds, at least initially. Given the of ICT, it may be appropriate for public agencies to provide vital role of such organizations in helping impoverished farm- funds that can overcome the inertia typical of organizations ers improve their living standards in areas that may be poorly struggling on a shoestring budget. Supporting a pilot project reached by other interventions, this argument is powerful. to demonstrate benefits can be effective; but now, after decades of piloting, the fundamental challenge is for inter- Public-private partnerships are also important, as develop- national development partners and donors to join hands with ments in ICT come largely from the private sector. Dealing the private sector to scale up some of these cases. with such partnerships will be a critical issue. Private compa- nies need to make a profit for their goods and services, but A second fundamental challenge is to sustain the use of safeguards need to be built into partnership arrangements so ICT after the period of support. Costs are associated with that the farmer organizations (and ultimately their members) change, not only equipment costs but also the costs of see long-term benefits. maintenance, training, and continuous development. New technology must either generate enough extra income for an A key issue for ensuring sustainability is the ownership of organization to cover ongoing costs, or individual users must the information service after donor support ends. Most initia- be able to envision enough tangible benefits to choose to pay tives to use ICT for agriculture have been led by donors, the for the technology. In the developing world, and particularly private sector, or the public sector, with farmers and their in agriculture, subject as it is to the external shocks of unpre- organizations often at the receiving end. Now it is time for dictable weather and global market forces, the benefits of financial partners to recognize farmer organizations as stra- ICT must be very firmly established for farmer organizations tegic partners in the design and provision of services, and to to sustain their costs. strengthen organizations’ capacities to own the service and carry it forward after outside support ends. A third challenge is that viable business models for providing services are still lacking. Most start-ups focusing on ICT for Where support is offered to farmer organizations that have agriculture are not very business-minded. Little consideration not yet reached a level of financial maturity that would allow is given to how ICT services expect to generate revenue; them to adopt ICT independently, it is important to design whether (and how much) beneficiaries will be prepared interventions that give due consideration to the issue of to pay for information; the opportunities for external con- gender. Women need to be involved at the planning stage as tributions; and how to control costs in line with potential well as in the management of a project to ensure their proper revenue—yet all of these questions must be addressed, both representation (box 8.1 lists obstacles to increasing women’s for government- and donor-led projects. use of ICT). Somewhat paradoxically, women, despite having BOX 8.1. Factors That Can Hamper Women’s Uptake of ICT  Cultural attitudes discriminate against women’s access to technology and technology education: What would a woman farmer want with a computer?  Compared to men, rural women are less likely to own communication assets, such as a radio or mobile phone.  Rural women are less likely to allocate their income to use in public communications facilities, except when they need to communicate with family or to arrange for income transfers.  Rural women are often reluctant to visit cyber cafés or public Internet centers, which are often owned by men and visited by men. The café culture often excludes girls and women.  Rural women’s multiple roles and heavy domestic responsibilities limit the time they can allocate to learning and using ICT applications, until and unless they realize the potential information benefits (and time-saving elements) of using these technologies. Source: World Bank 2008. I C T I N AG R I C U LT U RE 192 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T lower social visibility and literacy than men, have more to gain with traders. Phones that connect users directly to the Web from ICT. Women may not be able to free themselves from unleash an even wider range of possibilities. A recent survey their traditional time-consuming commitments to household of eight emerging and developing countries found that about and children, but armed with only a cheap mobile phone they 9 of every 10 persons owned a mobile phone and that people can find the best prices for their crops without abandoning in Sub-Saharan African nations—including Nigeria, Senegal, their domestic tasks. Women who might already be involved and Ghana—used mobile phones for texting and taking pho- in the accounting function of a farmer cooperative should tos and videos at the same rate as people in other emerg- have the opportunity to learn computer skills when these ing and developing regions (Pew Research Center 2015b). functions become computerized. Such skills will become Mobile money is another e-service that is rapidly gathering more valuable as computerization becomes more common, momentum; it enables individuals to make and receive pay- giving women more employment choices. ments via mobile phone and has become commonplace in Kenya, Uganda, and Tanzania (Pew Research Center 2015a). Consideration should also be given to age asymmetries in access to ICT, which younger people tend to adopt more Using text messages or the Web requires a certain level of liter- readily. This asymmetry has the potential to cause friction in acy, and not everyone owns a phone, so radio broadcasts have traditional societies where elders are respected and turned proved even more effective than newer technologies, espe- to for guidance. On the other hand, young people’s readiness cially when the content and timing of broadcasts are carefully to adopt new technology can be turned to advantage and considered. Popular and informative programs transmitted at used as a learning tool within communities. appropriate times of day—such as early evening, when outdoor chores have been completed and women can listen, too—can Of course, there are also the persistent challenges common bring about real improvements over a wide geographical area. to developing countries: poor infrastructure, poverty, illiteracy, and the draw exerted by urban centers. Mains electricity is rare It is also worth noting that ICT can be beneficial in indirect outside major towns (although solar recharging devices and ways. Farmers who are not online or familiar with using kiosks are starting to appear). Mobile phones are widely used any new technology may still be reached through farmer-to- in some rural areas, but others still lack network coverage. farmer information sharing, at which farmer organizations Maintaining computer systems can be a challenge in remote have already proved adept. Some have used digital multime- rural areas. Technical staff trained to use computers tend to dia equipment to produce teaching materials showing better migrate to towns, where salaries are higher. Farmers them- farming or production practices. Slide shows, animations, and selves may not see the importance of spending money on video footage of real farmers demonstrating new methods, ICT (bringing Internet connectivity, say) when a reliable water particularly if the farmers are from the local area, appear to supply would bring more immediate and tangible benefits. be much more effective in getting a message across than dry information presented by an “expert” from outside. In such A more subtle challenge is the danger of widening the digi- cases, even though the actual users of technology are few, tal divide, because better-educated groups are more likely to the benefits are enjoyed by a much wider group. accept and use new technology, which further distances them from poorer organizations. The cooperatives that are likely to be The same can be said when community radio is combined successful are the ones that already have competent, educated with text or voice contributions via mobile phone, where the managers and already function well as businesses (see the dis- audience as a whole is much larger than the number of par- cussion in Topic Note 8.2). Smaller, less-well-organized groups ticipants. Regular, facilitated programs covering local issues, will always present more of a challenge; they require more agricultural extension messages, and specific problems intensive training and support services over a longer period. raised by farmers that can be answered by experts command They might also need a significant period to become aware of a wide and receptive audience. The approach is inclusive as the benefits of technology before any intervention is possible. well, and with the interactivity made possible by texts and phone calls, the audience can influence program content. Given these challenges, it is not surprising that the most effective technologies are relatively cheap and simple. Taking the idea a step further, the workings of farmer orga- Mobile phone ownership is increasing rapidly. Far more peo- nizations could be made more transparent with regular ple own phones than have computers. Market information in programs covering recent activities and financial information. the form of text messages can therefore reach large num- Leaders of farmer organizations could take questions from bers of farmers and give them a stronger negotiating position listeners and viewers, improving both awareness and trust. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 193 A final point is that even proven technology can take time agricultural services for members and to offer more efficient, to be adopted fully, and adoption rates will differ according transparent accounting of transactions. The topic note also to complex factors in the underlying development and busi- highlights the unexpected benefits of ICT, using examples ness environment. The rate of adoption also depends on the from India and East Africa. route chosen, and so far it is not possible to say which will be more successful in the longer term. For instance, dairy Topic Note 8.3 examines how ICT can give farmer orga- cooperatives in India are already benefiting from comput- nizations and their members a stronger voice. The lack of erization based on commercial software systems, whereas infrastructure—for electricity, mobile signals, and Internet similar cooperatives in Kenya are at an earlier stage, pursuing connectivity—in rural areas has severely limited the means by a different approach with open source software developed which farmer organizations can receive communications from specially for that context. their members, but many organizations now have websites and use email and online discussion forums to interact with Topic Note 8.1 discusses how farmer organizations have similar organizations and the wider world. Other alternatives used ICT to help their members find better markets and to communicate farmers’ views, locally and nationally, are share technical information, using examples from Zambia, rural radio and telecenters. Farmer organizations can also pur- China, and other countries. sue their advocacy role by confederating, linked by ICT. The note provides examples of how farmer groups have used all Topic Note 8.2 looks at new approaches in which farmer orga- of these strategies and innovative practice summaries from nizations themselves are using ICT to provide value-adding the Caribbean Small Island States and Africa. Topic Note 8.1: FINDING BETTER MARKETS AND SHARING TECHNICAL INFORMATION TRENDS AND ISSUES organizations and their members is crucial if the organiza- The concept of farmer organizations is based on the notion of tions themselves are to flourish. Reliable flows of informa- strength in numbers, of giving small-scale farmers the chance tion between headquarters and the grassroots should boost to punch above their weight and become entrepreneurs in trust and membership. their own right. The challenge, though, is to reach isolated The challenge of improving links between farmer orga- farmers with the information they need to sell their produce at nizations and their grassroots members can be tackled the best price and to grow more and better crops. Although an using ICT, but in the poorest areas of developing coun- organization’s headquarters can offer a business hub for mem- tries where infrastructure is lacking and many farmers are bers, many members live too far away to make frequent visits. illiterate, the technology must be simple and cheap. Most Others are effectively barred from using the facilities because farmer organizations cannot afford to introduce new tech- they speak a minority language or cannot read or write. nologies, even when they can see the potential benefits, New communication technologies are vital for overcoming so they rely on partnerships with public and private sector these barriers. They include technologies that help farmer institutions. organizations to maintain and expand ties with grassroots Despite the digital poverty in rural areas, evidence suggests members, mobile phone technology to provide services, that farmers, both men and women, are well able to learn to and ICT to facilitate certification and access to international use relevant technology if they are taught in the local language markets. A persistent issue is how farmers and farmer orga- and can see clear benefits from new ways of doing things. For nizations will pay for obtaining and providing technical and instance, some of the nearly 2,000 women who work with a market information. shea butter association in Burkina Faso have become finan- cially independent by learning to use ICT applications, including TECHNOLOGY TO MAINTAIN CLOSE TIES WITH GPS and the Internet, to reach a developed-country market for GRASSROOTS MEMBERS certified organic shea butter. Another promising idea is for a Smallholder farmers are some of the poorest people in the farmer organization to communicate with members to create world, and they cannot afford to join a group that does not a database on crops and productivity. Backed by reliable his- offer tangible benefits. Creating better links between farmer toric production figures and sound projections of possible I C T I N AG R I C U LT U RE 194 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T future yields, the organization would be in a better position to MOBILE PHONE TECHNOLOGY DELIVERS access credit for its members—a valuable service. MARKET INFORMATION AND OTHER SERVICES TO MEMBERS Many small-scale producers struggle to access up-to-date A major service provided by farmer organizations is to technical information, but experience in Burkina Faso and improve members’ access to market information, and the elsewhere shows that farmer organizations can use new advent of mobile phones, short messaging service (SMS) types of ICT to provide advice and services tailored to text messaging, interactive voice response (IVR), and apps members’ needs. For example, box 8.2 describes a project has exponentially increased their capacity to do so (see the in Uganda designed to test a satellite-based information description of the Agricultural Commodity Exchange, ACE, service for farmers that farmer organization themselves for Africa in box 8.3). Module 9, which focuses on the use of will ultimately own and manage. Using local languages and ICT in marketing, discusses many aspects of these issues; photos or moving images are effective ways of reaching this topic note concentrates on how farmer organizations poorly educated farmers. ICT has revolutionized the means have used ICT to gain an advantage in marketing and infor- of disseminating information to such an audience, although a mation sharing. facilitator is often needed as part of the process. BOX 8.2. The Market-Led, User-Owned ICT4Ag-Enabled Information Service (MUIIS), Uganda Market-Led, User-Owned ICT4Ag-Enabled Service (MUIIS) is an innovative project that harnesses the power of satellite data to support extension and advisory services for Ugandan farmers. The project is being implemented by the Technical Centre for Agricultural and Rural Cooperation (CTA) in partnership with the Alliance for a Green Revolution in Africa (AGRA), aWhere Inc., the East Africa Farmers’ Federation (EAFF), Environmental Analysis and Remote Sensing (EARS) Earth Environment Monitoring (EARS-E2M), the eLEAF Competence Center (eLEAF), and Mercy Corps, Uganda. The MUIIS project runs from September 2015 to August 2018 with support from the Dutch Ministry of Foreign Affairs (MFA) through the Geodata for Agriculture and Water (G4AW) Facility of the Netherlands Space Office (NSO). A critical component of the project is to build capacity in the participating farmer organizations to own the information service and provide services to their members. When support from the project ends, MUIIS is to be owned by EAFF and its national partners—the Uganda National Farmers Federation (UNFFE) and the Uganda Cooperative Alliance (UCA)—with revenue- sharing agreements with other cooperation partners. The MUIIS project is designed to provide timely, accurate, and actionable information regarding crop management and climate risks so that participants can meet the production and postharvest demands of selected value chains in Uganda. The project also has a proof-of-concept function, seeking to demonstrate that satellite data-enabled extension and advi- sory services can increase farmers’ productivity by about 40 percent. MUIIS was inspired in part by the globally acclaimed success of a farmer cooperative in India that provides “ICT4Ag” (ICT services for agriculture); it was also inspired by the fact that several mobile platforms have been taken to market in Uganda and attracted users who are willing to pay for agricultural and financial information services. The information service consists of three bundled information products related to (1) weather forecasting and alerts, (2) crop management and agronomic tips, and (3) financial services (including index-based insurance). The service is expected to reach over 350,000 maize, soybean, and sesame farmers in central, eastern, northern, and western Uganda. The main distribution channel for the three information products is Ensibuuko’s Mobile Banking and Information Software (MOBIS), operating in collaboration with Mercy Corps. The information service eventually will be complemented with the e-Granary platform (box 8.7) being developed and managed by EAFF in Kenya. The platforms will be supported by about 200 ground agents (farmer leaders) equipped with smartphones loaded with content. Revenue streams will include subscriptions by groups (via farmer organizations), third-party international development partners, and individual farmers; farmer profiling; sales of data products; surveys and data collection; advertisement; quantity discount; premium finance; and index-based insurance. Source: CTA, http://www.cta.int/en/news/muiis-project.html. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 195 BOX 8.3. Using ICT to Access Market Information: Agricultural Commodity Exchange for Africa (ACE), Malawi The electronic ACE Platform consist of five independent services that are interlinked and interact with each other. The platform provides farmers, traders, food processors, and other stakeholders with access to real-time market information, collateral financing, structured trade, and formal markets. The five systems are: 1. The trading system, which allows buyers or sellers to submit bids and offers, respectively, and sends notifica- tions instantly through texts and email. A buyer or a seller can accept the bid/offer to generate a formal contract on the system. The contract can then be tracked online until its settlement. 2. The Bid Volume Only (BVO), which is a reverse auction that provides a commodity price discovery tool for big buyers such as the World Food Programme. The buyer needs only to specify the details on the commodity and volume they would like to purchase without indicating the price. Sellers compete on the price until the auction closes. Users can access the BVO in real time through the ACE Android App or the Internet. 3. The Warehouse Receipt System, which is a collateral management and financing tool. Storage Operators man- age the commodity deposited into an ACE-certified warehouse and issue an electronic Warehouse Receipt (WHR) through the ACE Android App or the Internet. The WHR can then be used as collateral to get financing from a bank. The system keeps track of storage costs, loans, and any other lien against the WHR. 4. The ACE network of rural trade agents, who collect market prices from the major rural markets across Malawi on a weekly basis. This information is uploaded to the Market Information System using the ACE Android App and sent to subscribers in the form of text messages. Users can subscribe to receive prices by selecting their preferred commodities and markets. 5. The Market Information System, which is to become an open-interface, nationwide farmer database. This database will give the government and other stakeholders—such as development partners, farmer unions, and NGOs—a chance to track accurate farmer statistics, including data on crops grown, household demographics, commodities stored and traded, and national market price information. The database will also help track from which interventions farmers and other target groups have benefited, when multiple actors work in the same area (such as agricultural NGOs, extension services, and ACE). Sources: Peter Pemba; http://www.aceafrica.org. Among farmer organizations, text messaging systems, voice/ which provide options for sending bulk messages. (For more IVR systems, and smart apps are proving their worth by detail, see Module 3.) Another example is the e-Granary enabling farmers to compare prices in different markets and to system, developed by the East African Farmer’s Federation take a stronger negotiating position when selling their produce. (EAFF), which helps aggregate farm produce and in the Some farmer organizations have opted to use platforms such process helps link farmers to buyers (see box 8.7). as Esoko and Farmerline (box 8.4 describes how Farmerline uses voice messaging to overcome literacy barriers in sharing FrontlineSMS (Banks 2009) is software that effectively turns agronomic and marketing information). Other farmer organi- a computer and mobile phone into a two-way, group text zations have set up their own services. Some large organi- messaging hub that does not need Internet connectivity. zations, such as the Zambia National Farmers Union (ZNFU) Devised to enable information to flow to election monitors, and Indian Farmers Fertilizer Cooperative Limited (IFFCO), news agencies, and humanitarian NGOs, the system is prov- have developed message systems using commercial routes ing adaptable to the needs of farmer groups. (see box 8.5 and the Innovative Practice Summary, Zambia’s National Farmer Organization Develops Text-Based Service”). In El Salvador, for instance, where farmers in general have Smaller farmer groups have used free open source software no access to computer-based information services but such as Mobile Information Platform (box 8.6 describes the where there are more than 50 mobile phones for every efforts of a very small cooperative in Chile) or FrontlineSMS, 100 inhabitants, the Agricultural Technology Innovation I C T I N AG R I C U LT U RE 196 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T BOX 8.4. Farmerline’s Voice Messaging Service Empowers Female Smallholders in Northern Ghana The Greater Rural Opportunities for Women (GROW) project, funded by Mennonite Economic Development Associates (MEDA), seeks to assist at least 20,000 women to increase their soybean production and forge better market links to increase their income. Since 2014, Farmerline, a technology and content provider, has been helping farmers to receive location-specific weather alerts along with information on good agricultural practices, financial literacy, and market prices. Farmerline uses an innovative mobile communication and data collection platform to provide this relevant, timely, loca- tion-specific information in local languages to eight Village Savings and Loan (VSL) groups based in the communities of Piina/Nandom, Tumu, Vamboi, Tarsor, Naabugubelle, Dorimon, Poyentanga, and Ga in Ghana’s of the Upper West Region. Literacy in English and other local languages is a big challenge in these communities. Farmerline’s innovation is that its platform (mergdata) supports voice messaging to deliver information. In this way, farmers have obtained valuable help to improve production and market their produces at better prices. To ensure that these women continue to benefit from the service, each farmer can subscribe directly to the platform and pay for a bundle of information services using mobile money. Source: Farmerline (www.farmerline.org). BOX 8.5. India’s IKSL: Potential to Reach a Vast Farmer Base with Interactive Ago-Advisory Services The Indian Farmers Fertilizer Cooperative Limited (IFFCO) has a membership exceeding 40,000 cooperative societies and an estimated base of 50 million farmers. These farmers are not only consumers of the fertilizers produced by IFFCO’s various plants; they are also the owners of IFFCO through the share contribution system of their respective societies. Apart from distributing quality fertilizer to farmers through the cooperative societies, IFFCO organizes various promo- tional activities so that farmers can acquaint themselves with the latest technology in agriculture. IFFCO undertakes a large number of conventional agricultural extension activities to this end. To more effectively leverage technology for the benefit of farmers, IFFCO launched a joint venture called IFFCO Kisan Sanchar Ltd (IKSL) in 2007 in association with Star Global Resources and Bharti Airtel. IKSL’s mission is to empower Indian farmers by converting the ubiquitous mobile phone into a powerhouse of knowledge. IKSL uses mobile phone technology to provide timely, relevant agro-advisory services to farmers to improve their incomes, reduce cost, improve yield, reduce wastage, enhance quality, expand their markets, and educate them on issues such as health and the environment. Agricultural advice is provided as voice messages in local languages to ensure that even illiterate farmers can benefit. The IKSL model is simple. It is based on the idea of engaging with farmers by showing them how to use their mobile phones in two new ways. The “push” approach ensures that farmers receive the latest updates and advice that are immediately relevant to their situation. The information is provided in the form of 1-minute voice messages in the perti- nent local language or dialect. These voice messages are provided free of charge to IKSL Green Card subscribers. The “pull” approach provides an opportunity for farmers to call a helpline to request additional information about the data they have been provided with or seek solutions for their specific problems. The IKSL Green SIM Card is marketed mainly through farmer organizations, and the card’s services have been offered through this model since 2007. This example shows how farmer organizations have managed to effectively use ICT to provide service to their members. Source: IFFCO Kisan Sanchar Limited (IKSL), http://www.iksl.in/. Foundation is promoting the use of mobile phones to In Aceh, Indonesia, FrontlineSMS is used to send information to encourage farmers to exchange information and strengthen small-scale producers. A team gathers a range of information, market links. With 600 subscribers who pay only for the and the data are entered into a computer running the program. information they receive, the pilot project is currently sup- The latest prices, input costs, and weather forecasts are sent ported by the cost of calls. to groups of producers and others in the agricultural sector. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 197 BOX 8.6. Chile’s Coopeumo and the Mobile Information Project Coopeumo, a Chilean farming cooperative with fewer than 400 members, uses text messages to help small-scale farmers increase productivity. This area of Chile, south of Santiago, has good soils and climate, but smallholders are at a disadvan- tage compared to larger enterprises because it is not easy for them to access specific information on markets, technol- ogy, and weather that could boost production. The low population density and low incomes in the area make it difficult for private service providers to offer connectivity. This “digital poverty” has been noted in Chile, where the government is keen to promote social equity, and agricultural exports are an important part of the country’s economy. Through the Mobile Information Project (MIP), farmers now receive research findings and news (including market prices and weather forecasts) directly from the Internet on their mobile phones. Weather updates are particularly useful to farm- ers at critical points such as planting and harvest. The MIP software works on the cheap phones (US$15–20) that farmers tend to use and is effective over slow networks. Several organizations implement MIP:  The Foundation for Agrarian Innovation (FIA, Fundación para la Innovación Agraria), is a Chilean governmen- tal agency that works closely with agrarian communities to understand their information needs and to locate, edit, and/or create appropriate content to meet those needs (e.g., resulting in the creation of micro weather stations). FIA is therefore a key partner responsible for sending a content stream of locally relevant information.  The United Nations Educational, Scientific, and Cultural Organization (UNESCO) is responsible for financial support and provides educational content.  Coopeumo, a cooperative based in the town of Peumo, is responsible for local implementation of the project among cooperative members.  Entel PCS, a Chilean telecommunications company, is helping support the project with the technological platform, telephony equipment, and competitive pricing for mass text messaging.  The national Chilean newspapers El Mostrador and El Mercurio supply news feeds, among which users can choose preferred news streams. Sources: Authors; Cagley 2010; Datadyne (http://datadyne.org/programs/mip/). BOX 8.7. The e-Granary Platform of the Eastern Africa Farmers Federation The Eastern Africa Farmers Federation (EAFF) has a new platform, e-Granary, that seeks to dramatically improve the way farmers do business in Uganda and Eastern Africa as a whole. EAFF members are being registered onto the system. The EAFF chief executive officer (CEO), Stephen Muchiri, has noted that the main idea behind e-Granary is to position farmers in the market for the purposes of obtaining better prices or bigger market shares using the mobile platform to help aggregate production from farmers. The system is easy to use. Farmers interact with the platform, which has a registration component and can therefore identify a farmer by location, farmer group, gender, age, and commodity. The platform allows farmers to choose between commodities—about five—and they are able to key in information on planting and harvest. The e-Granary system was developed as a result of two meetings organized by the Technical Centre for Agricultural and Rural Cooperation (CTA) in 2013 (Rwanda) and 2014 (the Netherlands). These meetings involved two farmer organizations— EAFF and the Indian Fertilizer Farmers’ Co-operative (IFFCO). At the Rwanda meeting, IFFCO made a presentation on a very successful mobile and Web-based aggregation platform, which captured the interest of EAFF because it was already seeking a platform to help farmers aggregate produce and, in the process, link farmers and trade associations to national and regional buyers through the use of ICT. Source: http://www.eaffu.org/egranary. I C T I N AG R I C U LT U RE 198 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T Farmers say they like to have a base price on which to start Services for sending and receiving cash via mobile phone— negotiations with buyers. They also report that as they learn such as M-PESA, which has 13.9 million active customers per the range of price fluctuations for each product, they are better day in Kenya (see Safaricom 2015)—make it easier for farmer able to choose which crops to grow. organizations to provide other services, such as selling inputs and arranging more convenient payments for produce. For An even more low-tech approach is used by the First Mile example, in 2015 Zambia launched a project1 in which partici- Project in Tanzania (IFAD n.d.). The project supports a group of pating farmers register to receive prepaid mobile phone “market spies” to gather market intelligence and share it with e-vouchers worth about US$50 to purchase inputs from agro- farmers (“Bahati Tweve: The Honest ‘Middleman’ Brokering dealers2 (see Module 9). Farmer organizations may be able to Deals,” New Agriculturalist 2008). This intervention is based develop similar arrangements with input suppliers.12 simply on phone conversations, text messages, face-to-face meetings, and village notice boards, but it has helped build Technology for International Certification and Markets market chains and put farmers in a stronger position when Farmer organizations are using ICT not only to provide local selling their produce. After support from project funding and national market information to members but also to comes to an end, the spies aim to cover their costs by charg- increase their international reach. The lure of lucrative inter- ing a commission to link buyers with producers. Other pos- national markets, such as those for organic or Fair Trade prod- sible ways to generate revenue might be to charge a small fee ucts, can be a strong motivation for farmer organizations to for advertising on information boards and for storing produce. master ICT in the first place. Anecdotal evidence from some organizations shows that they can reach this ambitious goal Mobile market information has a number of benefits. At the even if their members have little formal schooling (image 8.1). very least, a smallholder armed with information on cur- rent prices has a better chance of negotiating a good deal Many women belonging to the Song-taabaYalgré Association, for his or her produce with passing traders. Smallholders a shea butter trading group in Burkina Faso, never attended also value and use information on the price of inputs from school but confidently use ICT tools and the Internet (Soré n.d.). different sources and on the whereabouts of the nearest The group has had a French-language website since 20043 and buying center. Although household responsibilities keep handles 90 percent of its sales through the Internet, sending many women close to home, if they can discover the best shea butter products to Europe, Canada, and the United States.3 markets for their produce via a text messaging service, they can maximize their income. The website describes the background of the producer group and lists the various products formulated using shea butter as well as the chemical ingredients IMAGE 8.1. Women’s Cooperative Processing Shea Butter in Ghana of these products. Largely through their website, the women have strengthened their position in the marketplace. As Noelie Ndembe, the head of MIPROKA (the national shea information and promotion center), has said, “To be on the Net is to be seen everywhere in the world” (quoted by Soré 2008). 1 ITWeb Africa, “Zambia: Govt Launches e-Voucher System for Farmers,” http:// www .itwebafrica.com/enterprise -solutions/692 -zambia/235317-zambia -govt-launches-e-voucher-system-for -farmers. 2 The scheme is a joint venture between the Zambian government and FAO, funded by various donors. Source: Jonathan Ernst, World Bank. 3 http://www.songtaaba.org. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 199 A particular selling point for this shea butter (a sought-after text message can make it a challenge to provide certain kinds ingredient for beauty products) is its certification under of content. Newer versions of software such as FrontlineSMS, Bio-Ecocert and Bio-NOP, which guarantee that a product IKSL, and mergdata4 have become platforms for multimedia is 100 percent natural and has been manufactured under communication by incorporating audiovisual capabilities. conditions that respect human and environmental health. Other software and hardware designers are also developing GPS technology has been essential for recording the source products that are more intuitive to use and employ audio and of the shea fruit and thus assuring distant customers that video. One benefit of using a common, open source platform the certification is genuine. like FrontlineSMS is that users can easily share experiences, which in turn should lead to improvements. Website development and related training in the technol- ogy were done in partnership with MIPROKA. Two village Studies of a range of agricultural market information systems telecenters were set up, each with several computers linked in Sub-Saharan Africa suggest that disseminating information to the Internet, a scanner, a photocopier, and a telephone. by mobile phone creates interactivity between the system Technical training had two elements: (1) how to produce and its users.5 Where users choose the information of inter- shea butter to the exacting purity and cleanliness standards est to them, a wider range of information can be offered demanded of an export product; and (2) how to use ICT tools, without inundating users with valueless data. including GPS and computers. Other facets of the training It is worth pointing out that mobile phone communication included better ways of marketing the product, as well as continues to be an effective way of sharing market prices. environmental and energy awareness. Several studies corroborate the view that mobile phone cov- erage can improve market efficiency (see Module 9). Moré, the local language, has been used throughout, and the trade group produces an in-house bulletin that also appears The question of how information systems that rely on mobile in Moré. The bulletin gives information on the group’s activi- phones can pay for themselves may be finding some innova- ties and on the production of organic shea butter. tive answers. Prospective solutions include pay-per-use and subscription models, leveraging the adoption of mobile money Despite some literacy barriers, many women have learned systems for payment. These models are still in the early to use GPS equipment to map their fields and record each stages of development, however, and the evidence of farm- tree from which they harvest shea fruit. A small group was ers’ readiness or ability to pay for information services remains initially taught by an expert from Europe, but they can now scant. In India, early results from research attempting to train other village women in the GPS and mapping skills that quantify the impact on farm profitability of a subscriber-based, are vital for certification. As an incentive to capture all rel- local-language information service suggest that farmers can- evant GPS data each time, the women earn a small bonus if not afford it.6 Farmers say they cannot pay, despite claiming they do it without mistakes. Careful recordkeeping and good to have negotiated better prices for their crops, spent less production techniques allow the women to sell their “bio” on inputs, and enjoyed overall better income. The package shea butter at more than twice the price of uncertified shea costs about US$1.50 per month, for which the subscriber gets butter. Even the raw shea fruit is worth more if it is certified 75–100 texts. Each subscriber shared the information with as coming from approved fields. about seven other people. Only about half of the subscribers planned to renew their package. Almost all of those who had Lessons Learned not bought the service said that cost was the reason. Although ICT can certainly improve connections between farmer organizations and their members, farmer organiza- In Zambia, the ZNFU admits that although there is huge tions are unlikely to be early adopters of this technology. demand for its text-based market information system (see Organizations of small-scale producers in particular are likely “Zambia’s National Farmer Organization Develops Text-Based to need support to try new systems and learn how to make Service”), the system does not yet pay for itself and cannot them cost-effective. It is worth remembering that farmers yet be expanded. One possible revenue-raising mechanism can be reached by channels other than ICT; prices can be published in newspapers, broadcast on the radio, or simply chalked on boards in markets or farm supply shops. 4 See http://farmerline.org. 5 Agricultural Market Information Systems in Africa: Renewal and Impact.” Unpublished summary of workshop held March 29–31, Text messaging systems require a level of literacy that is often 2010, Montpellier, CIRAD—UMR MOISA. rare in remote rural areas, and the limit of 160 characters per 6 Grahame Dixie, World Bank, personal communication. I C T I N AG R I C U LT U RE 20 0 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T for ZNFU and similar schemes might involve transportation countries, and any proposal to set up a messaging service companies. Recognizing that after trucks make a delivery it using mobile phones must comply with prevailing rules. is inefficient for them to return empty, truck owners might When ZNFU was setting up its market information system, be willing to pay for information to find return loads. Other the fact that Zambia had not finalized its ICT policy was revenue-raising possibilities might include charging for arbi- regarded as slowing development of the ICT industry.7 trage or brokerage services. In many African countries, providers of new mobile services The experience in Chile (box 8.6) suggests that disseminat- must use intermediaries to get a short code for customers to ing information via simple mobile phones is a good way to dial, and many governments see phone companies as sources reach farmers in areas where Internet facilities are unlikely of easy tax revenue. Competition and the development of to be provided in the near future. Since the pilot project new infrastructure are often limited by restricting licenses to closed, Coopeumo has taken on the responsibility and costs new operators (see Module 3). Mobile communications are of creating and sending the text messages. Farmers do not thus more expensive in Africa than they need to be.8 pay directly—the charges are included in the membership Kenya is a notable exception. Its good regulatory environ- fees they pay to the cooperative. Refinements to the sys- ment has led to competition and reduced the cost of mobile tem should make it easier to provide relevant content to phone tariffs (World Bank 2010). See box 8.8 for additional each individual. The goal is to tailor the content automatically considerations for designing effective ICT interventions for (a human editor would slow the service). farmers’ organizations. A concluding lesson is that farmer organizations and their partners may find it challenging to use ICT in the absence 7 Unpublished summary of the meeting of the Agricultural Thematic of a supportive regulatory framework for the technology. Group (part of the e-Brain Forum of Zambia), “e-Agricultural Marketing—What Are the Issues?” on October 27, 2006 in Lusaka. Mobile phone networks are subject to varying degrees of 8 The Economist, “Not Just Talk,” http://www.economist.com/node bureaucracy, taxation, and government regulation in different /18008202. BOX 8.8. A Checklist of Considerations for Designing an Effective, Sustainable, ICT-Based Project to Support Farmer Organizations  What are the levels of literacy, mobile phone ownership, and willingness of farmer organization members to embrace new technology? Many smallholders cannot afford phones, do not know about texting or voicemail, or cannot punch a message into a phone keypad.  How well can farmers understand market information and use it to their advantage?  What is the role of smallholder farmers’ organizations in this context? What capacity is required for them to be effective?  How will the most vulnerable members of the organization be included? Some people might be too poor to pay for information or might live outside the range of mobile phone coverage. Women may be less likely to have access to a phone.  What information is best disseminated using which media—text, interactive voice response (IVR) / Voice, video ICT-enhanced training workshops?  Do different categories of farmers need different information? Large-scale farmers have different interests than smallholders, but both groups may belong to the same organization.  Are there transportation links to the different markets? Information is of no use unless farmers can get their crops to the market of their choice.  Can farmers store crops safely and without spoilage after harvest? Otherwise they are in no position to delay sell- ing until prices are optimal. Market price information has little value here, so improved drying and storage facilities might need to go hand in hand with a market information system. (continued) ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 201 BOX 8.8. continued  What sources of information do farmers need? Sources are likely to include research bodies, government exten- sion services, news media, the Internet itself, other farmers, other farmer organizations, and private seed or input supply companies.  How should information be sorted to be most useful for the recipient? Text messages have a 160-character limit, so it is a challenge to prioritize messages.  Who will be responsible for selecting and sorting information, and how can quality control be maintained?  How will the costs of the service be covered?  What is the level of cooperation offered by mobile phone companies? How well might rival companies work together?  What is the appropriate software? Is free, open source software such as FrontlineSMS the way forward? Source: Authors. with instructions and relevant codes and trains them to use INNOVATIVE PRACTICE SUMMARY Zambia’s National Farmer Organization Develops the system. Farmers wanting to know the price of a particular a Text-Based Service product simply type the code into a text message and send ZNFU’s messaging system is an easy-to-use service that it to the specified number. The system sends back another announces prices via text to mobile phones and the Web.9 text with the latest prices and the codes for the traders offer- ZNFU introduced the system with support from the main ing those prices. The farmer chooses a trader and sends mobile phone network provider in Zambia, several other local the code in a second text to the system, which replies with organizations, many farming cooperatives, the agribusiness the trader’s full name, phone number, business address, and chamber, and buyers and sellers. The mobile phone network directions. The farmer can then contact the trader directly. provider organized the bulk messaging process to deliver the To make the information available to farmers without mobile information to as many mobile phones as possible, and it phones and in areas lacking network coverage, ZNFU trains offered several hundred half-price mobile phones to farmers. at least one farmer in every district to act as a contact farmer. The Smallholder Enterprise and Marketing Program gave Contact farmers, based in district offices, publish the com- additional funding and technical support. modity price and trader information that they get either via text Starting with details of just 6 commodities in 2006, the (SMS) or from the website and give it to extension officers. system now deals with 14 commodities and sends 1,000 Every week the extension officers display the prices and details messages each month. Pamela Mulozi, the market/trade of interested traders on posters in local information centers. information administrator at ZNFU’s head office in Lusaka, reported “a significant change in how farmers and traders are So far the system seems successful and popular with farmers. dealing with each other” and observed that traders “are now For instance, Grace, a farmer involved with the scheme, said, taking the farmers much more seriously as trading partners” “The SMS system makes everything so much easier. You can (Goudappel 2009). check the market on your phone to find the 10 best prices in the district or even in another district if that works out better More than 200 buyers use the system, giving farmers a wider for the transport cost” (Goudappel 2009). Farmers coordinate set of options for selling their produce. Another measure of their delivery times and organize a single location for traders success is the fact that food-processing businesses, govern- to pick up goods in bulk, saving many individual farmers from ment ministries, and banks regularly use the system to pro- traveling to the Lusaka market. vide broader support to the country’s agricultural sector. Each commodity, trader, and district has a code. ZNFU supplies This arrangement saves money and gives farmers more time everyone using the system with a small information card to work on the farm. Grace said, “Although we still pay for the costs of the SMS messages, we end up spending only 5,000 kwacha” (just over US$1), adding, “It’s a big saving but 9 This summary is based on Goudappel (2009) and personal com- munication with Pamela Mulozi, market/trade information admin- it also reduces a lot of the risk involved with travelling to the istrator, ZNFU. city every time” (Goudappel 2009). I C T I N AG R I C U LT U RE 202 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T Despite this initial success, which means that ZNFU would INNOVATIVE PRACTICE SUMMARY like to extend the trading system to more farmers, any imme- The Sounong Search Engine for Farmer diate expansion is limited by the lack of funding. Hamusimbi Organizations in China Coillard of ZNFU observed, “We still have to work out how A good example of how ICT enhances farmer organiza- the system will pay for itself.... If we can use the SMS sys- tions’ access to knowledge comes from a project in China, tem to link up farmers and other small traders to the trucking where a priority is to make ICT accessible and useful for companies, then both sides would benefit and we would farmers. The project—Construction and Popularization gain more subscribers to the scheme” (Goudappel 2009). If of Agriculture Info-Service System—introduced in Anhui another network operator, MTN, joins the scheme, coverage Province, has three main features: an Internet portal, infor- will reach more communities. mation assistants, and information dissemination models. ZNFU E-extension is an addition to the existing ZNFU 4455 It targets specialized farmers’ cooperatives, a primary SMS price information system, which has been operating force for agricultural development in China. The project is for over eight years. The ZNFU E-extension service provides funded by the World Bank and implemented by the Hefei farmers with up-to date market price information for 17 agri- Institute of Physical Sciences of the Chinese Academy of cultural commodities. It is meant to tackle key information and Sciences.10 extension constraints by making practical agricultural informa- The Institute of Intelligent Machines developed an Internet tion available to the farmer. The service uses Unstructured search engine called SOUNONG to aggregate information Supplementary Service Data (USSD) and can be accessed via and provide it to farmers’ cooperatives in a meaningful mobile phone by dialing a dedicated short code, *880#. It is manner (figure 8.1). SOUNONG coordinates with China’s the Union’s approach to embracing new types of ICT that will governmental agricultural websites, which maintain high bring about new, catalytic, and cost-effective development of user rates and have more authority to promote information. agribusiness based on the provision of information. This multilateral collaboration has helped raise the visibility of The E-extension system interacts with users by presenting SOUNONG and its activities and to prevent overlap. menus from which the user selects an option to receive spe- SOUNONG monitors over 7,000 websites per day, includ- cific types of agricultural extension information and tips. In ing nearly all of China’s agricultural data. These sites contain this way farmers can obtain agricultural information relevant to information on prices of wholesale farm products, prices in their location without having to travel or search for it. Farmers 9,000+ markets, and prices for 20,000 types of agricultural can also benefit from vital information about crop field prac- products. Information is also retrieved from a number of data- tices and on identifying, preventing, or treating crop-specific bases, including those on climate, crop species, and pest and diseases and pests. Tips on livestock production and informa- disease diagnostics. tion on livestock diseases that require particular vigilance may also be obtained from the extension platform. Electronically generating a short list of agricultural informa- tion from this array of websites reduces the time spent col- The information menu does not end there. Farmers can also lecting it manually. In 2009, 1,276 households were using the obtain weather data and alerts on disease outbreaks, theft, new site—and by 2010, that figure had almost doubled. legislation, and business opportunities. The ZNFU E-extension system also makes contact information available for government Once the website was launched, project leaders selected extension staff, ZNFU field staff, and others with an important 38 farmer organizations to act as partners. The organizations role in the agricultural sector (such as agro-dealers and other were well established and had good management, which input suppliers), allowing groups of small-scale farmers to locate suggests that it may be critical for farmer groups to meet and contact service providers in their area. With recent develop- certain criteria to become involved in ICT for agricultural ments in the mobile phone industry in Zambia, cell phone use development. by small-scale farmers is continually expanding. The opportunity to use mobile phones as a platform to provide extension infor- A total of 76 information assistants, who are responsible mation to facilitate direct communication between extension for collecting and disseminating information, as well as 541 service providers and farmers remains immense. farmer households, were trained to use computers to search, For additional information: www.znfu.org.zm; www.farmprices 10 Information gathered from SOUNONG 2010, Institute of .co.zm. Intelligent Medicines. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 203 FIGURE 8.1. Conceptual Technological Framework for the SOUNONG Search Engine Information access terminal: Different 1. Computer information services 2. Mobile Farmers Web 3. Information Network machine resources information is Agriculture automatically vertical Professional collected by search cooperative soft robots engine agency of farmers Soft robots Agricultural Information enterprises Data service warehouse platform (7,900) Agriculture Household information agriculture processing specializations Agriculture websites (9,500) Source: Adapted from SOUNONG 2010, Institute of Intelligent Machines. browse, download, and disseminate information through the IMAGE 8.2. ICT Programs Like SOUNONG Help Internet. As the project grew, over 1,000 members of coop- Cooperatives Identify Livestock Disease eratives received ICT training (figure 8.1). Members of farmer organizations can access informa- tion from the SOUNONG site through computers, mobile phones, personal digital assistants (PDAs), and PDAs plus mobile phones. Depending on network connections, regional characteristics, and farm conditions, farmers can select the appropriate option for their local network capacities and skill level. All of the options provide low-cost, easy access to the SOUNONG site. For members who may not have access to computers, mobile phones, or PDAs, cooperatives can also print information and recommended actions. Source: Steve Harris, World Bank. Surveys found the mobile phone option to be popular as a number of their pigs had high fevers. The information assis- result of its timeliness and convenience. The mobile phone tant released the information onto SOUNONG. Veterinary option is consumer friendly—farmers have both “push” and experts diagnosed fatal swine high-fever syndrome and “pull” alternatives to obtain information. The computer option provided control methods that prevented potential losses of was also popular because users could browse and select spe- 1,000,000 yuan (Y) for the farmer group. cific information. Network coverage is not a problem in rural Anhui Province, but Internet service remains more expensive TaihiJinqiao extended sales of their local chicken breeds than mobile phones, and Internet users must become adept to poultry markets like Nanchang and Wuhan by using the at identifying irrelevant or misleading information. SOUNONG website. Smaller cooperatives producing pork have used SOUNONG to reach major markets like Shanghai. Success stories are common, including success in livestock disease identification and control (image 8.4). For instance, in SOUNONG attracted additional cooperatives, entrepreneurs, 2010, farmers in TaihiJinqiao Cooperative recognized that a and farmer households and led to the development of more I C T I N AG R I C U LT U RE 204 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T specialized services for farmer organizations. Websites were Fairtrade cocoa beans.12 This project is part of a larger project developed to provide information for specific producer orga- with the primary goal of improving the well-being of children nizations; for example, the Agriculture Committee in Anhui and young people from three Fairtrade-certified cooperatives Province formed an Anhui Farmers’ Specified Cooperative in Côte d’Ivoire and Ghana. One of the project’s desired out- website.11 The Taihi County Government gave Y 24,000 comes is an improvement in the ICT systems used by the to the Jinqiao Cooperative to generate an online platform cooperatives. enabling more discussion and real-time information sharing between members. Voluntary Certification Programs and Sustainable Agriculture The Anhui Fengyuan Agriculture Science and Technology In recent years, sustainable cocoa has taken off in West Africa. Co. Ltd. was selected to monitor and evaluate the project Dozens of cooperatives have been certified as complying with and its development over time. The company continuously Fairtrade or sustainability practices (such as UTZ Certified and examines the practicality, effectiveness, degree of user Rainforest Alliance). These cooperatives are often federations satisfaction, and public welfare (the four main indicators) of smaller organizations. They can have thousands of mem- of the Construction and Popularization of Agriculture Info- bers, many living in very remote rural areas. Service System. A key lesson is that farmers require train- ing to use the information they access appropriately. Those After more than a decade of programs and projects to imple- involved in the project note the challenges associated with ment sustainability standards, certain questions are being introducing ideas and technologies that have major learning raised about their impact. What have they achieved? How curves for users. did they improve the livelihoods of farmers and their fami- lies? What is the added value of these programs for farmers, who must spend more than five years becoming certified? INNOVATIVE PRACTICE SUMMARY Field Data Collection Tool for Certified Farmer One conclusion of these discussions was that improved Groups in Sustainable Agriculture collection and management of data on certified farmer cooperatives would help to meet the need for “big data” for Tony’s—a Dutch manufacturer producing certified Fairtrade assessing impact. Chocolonely chocolate bars—became popular in the Netherlands because of a successful television program about Pilots child and forced labor in cocoa production in West Africa. Before rolling out the project to the entire group of Through its “Crazy about chocolate, serious about people” cooperatives—comprising about 12,000 cocoa farmers—the mission, Tony’s aims to achieve a 100 percent slave-free project started with two pilot groups of 500–600 farmers, one chocolate industry. in Côte d’Ivoire and one in Ghana. With the lessons learned from these two pilots, the project was to be extended to all Because this goal is ambitious, and because Tony’s had to farmers of both cooperatives in early 2016. It was expected be able to make accurate claims about its products, the that the project would reach almost 20,000 children in the company needed to monitor progress toward reaching its cocoa-growing regions of both countries. objective. The company recognized that the key to measur- ing improved conditions on cocoa farms and in cocoa farming For this specific project, Tony’s used AuditAide,13 a data communities was for farmer cooperatives to collect timely, collection and management solution specifically designed accurate field data on a series of development and sustain- for producer organizations that engage in group certifica- ability indicators. And the key to collecting those data was to tion of larger farmer groups. AuditAide includes data col- strengthen and, where needed, implement the use of ICT lection tools, data processing and analysis software, a tools by cocoa cooperatives. custom-built management information system (MIS) for membership-based organizations, and training materials In collaboration with the Max Havelaar foundation (Fairtrade for farmers and field staff to learn the skills to scale up the Netherlands) and with support from the Dutch Postcode IT capabilities of cooperatives in data collection and data Lottery, Tony’s initiated a project in 2014 to improve the management. use of ICT by the farmer cooperatives that produced and sup- plied the company with certified sustainably produced and 12 www.tonyschocolonely.com. 11 http://www.ahhzs.com. 13 www.audit-aide.com. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 205 Benefits and Impact/Experience to Date farmers were disqualified when the mobile app was used, To date, the project has achieved some noteworthy results. whereas in previous years the percentage was much higher. An important achievement is that the pilot cooperatives, as A fourth achievement is that AuditAide made it possible part of their certification programs, improved their Internal to automate the most time-consuming and crucial admin- Management Systems (IMS) by developing a well-considered istrative processes within the certification programs. For data collection system and materials to train farmers to example, the software contains a scoring and sanctioning comply with Fairtrade, Rainforest Alliance, and UTZ Certified module for automated assessments of internal inspection standards. The most important training tool was an Internal forms. Internal inspections are carried out annually because Standard combining the three different standards into one the cooperatives are externally audited once or twice a year compact, easily understood standard. The Internal Standard to assess compliance with the respective standards. Internal also contained illustrations for each criterion to make sure Inspections assess farmers’ performance based on the crite- that illiterate farmers were included. In the AuditAide meth- ria in the Internal Standard. The software also automates the odology, each criterion in the Internal Standard refers to a creation of corrective action letters to farmers, previously a question in the internal inspection form that helps to monitor time-consuming exercise. Another important feature of the compliance with standards. Each of the answers that can be software is the reporting module, which performs the spe- chosen reflects a possible scenario in the field. The scenarios cific data analyses and generates the reports required by the were determined jointly by the project partners. IMS of a certification program. A second important achievement was to implement Poimapper, A fifth achievement was to train the office staff in the IT skills a mobile data collection tool, and train field staff to use it.14 needed to execute and continue the project. Poimapper was selected for several reasons. Its mobile client and online portal are easy to use. The mobile application pro- Finally, the MIS at the cooperative level was developed vides several forms to collect accurate field data instantly. The further. The MIS is important to manage all data, such as project preferred a mobile application, because it was impor- member data, sales, distribution of agro-chemicals, and tant to identify issues quickly on the ground, such as the use inspection data. The cooperative in Côte d’Ivoire had an MIS of child or forced labor or unapproved agro-chemicals. After that was not fully functional (it lacked some of the required the data are collected, the data in the portal are cleaned up and data fields and reports for the project). The cooperative in imported into AuditAide for further reporting at the IMS level. Ghana had no MIS. Tony’s decided to custom-design an MIS The Poimapper reporting module made it possible to analyze that they and the Ghana cooperative could use so they would responses to the individual questions and monitor incoming not have to incur an additional cost. The Côte d’Ivoire coop- data during the data collection phase itself. The training focused erative received funding to further develop their MIS to make not only on how to use the Poimapper mobile client but also sure it would be fully functional. on the interpersonal and communication skills that field staff needed to collect reliable data (in fact, these skills appeared Lessons Learned and Issues for Wider Application very useful and contributed to the reliability of the data). The pilot projects proved successful. They collected, pro- A third achievement was that Poimapper made it possible cessed, and analyzed all of the required data, and all farmers to collect more accurate information. A common problem in and field staff were trained in the desired skills and knowledge. collecting field data is to verify that staff actually make field Lessons and issues to consider for the future include: visits and do not provide spurious information on the forms. ƒ Field staff were less familiar with smartphones than Poimapper’s GPS-tracking function made it possible to con- expected. It took the project nearly an additional week firm that field staff were visiting the farms and communities for field staff to become sufficiently familiar with the where they were supposed to collect information. A consid- phones and the application to work with them. Most erable advantage of using the mobile data collection tool as of these men did not use smartphones themselves, opposed to paper data collection is that most questions in and the whole concept was new to them. Once they the mobile data collection forms are mandatory, and field understood how to use the application, the inspection staff had to provide an answer. With the paper forms, the and other field data were collected without delay. level of non-response was high. Consequently, only a few ƒ Because there is no Internet connectivity in the com- munities, the field staff had to go to the nearest town, 14 www.poimapper.com. once a week, to upload the filled forms to the portal. I C T I N AG R I C U LT U RE 206 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T ƒ Extra power banks had to be bought, because there to the training materials, containing only the illustra- was no electricity in many areas, and field staff could tions of the booklet. Each group of farmers would not always charge the phones. receive one printed Internal Standard, and each ƒ It was expensive to print the Internal Standards for farmer received the poster to hang up at home each farmer. The project therefore added a poster or take with them to the farm. Topic Note 8.2: DAIRY COOPERATIVES LEAD THE WAY WITH COMPUTERIZED SYSTEMS TO IMPROVE ACCOUNTING, ADMINISTRATION, AND GOVERNANCE TRENDS AND ISSUES ƒ Information for control and management decisions Computer systems have the potential to vastly improve the is available instantly. Inventory control improves, and efficiency, governance, and accountability of farmer organiza- information becomes available in real time. tions. Dairy cooperatives are considered the type of organi- ƒ Relations between members and management can zation most likely to see clear benefits from computerized be improved. Better services to members flow from accounting systems, simply because of their numerous more efficient administration. New and improved members and large volume of daily transactions. Even smaller services to members mean that they are prepared cooperatives benefit from computerizing their accounts, to invest more in the society. which leads to greater efficiency and transparency. Having ƒ The cooperative has more options for communication financial and membership information always at hand helps and information sharing. There may be opportunities management make better decisions, and using software to to communicate beyond the organization, using email, present financial information in graphical or diagrammatic newsletters, websites, and information networks. form can make the information easier to understand. ƒ Attention is paid to develop a sustainable business model that ensures co-creation and ownership of the It is well known that small companies generally regard services needed by farmers accounting as a “backroom” function, and consequently it ƒ Data are available to guide policy decisions. attracts little management interest or company investment. Management counts the cash in the till and requires no other Capacity is built within the organization as staff members learn financial information. Accounting is done only because the new skills. The general lessons from these efforts are dis- government requires accounts for taxation. Yet when “other cussed next, followed by three innovative practice summaries. people’s money” is involved in a business (like a coopera- Two summaries describe contrasting approaches to the devel- tive), accounting becomes the only means to explain what opment of computerized accounting systems for cooperatives happened with the money, to prove that transactions with in India (dairy) and Kenya (dairy and coffee). The third shows members and clients are straightforward, and to create the how computers brought in for other purposes improved admin- trust that enables a cooperative to function. istrative efficiency in a women’s shea butter cooperative in Mali. Farmer organizations and cooperatives in the developing LESSONS LEARNED world are turning to computerized management systems, despite their cost and the challenges posed by infrastructure, The evidence to date suggests that computer systems can for some or all of the following reasons: be adopted successfully to improve accounting, administra- ƒ Better accounting and management increase tion, and governance, not only in cooperatives for staple efficiency, save time, and reduce mistakes. The commodities (such as milk) but also in cooperatives produc- more logical approach demanded by computeriza- ing export commodities (such as coffee and shea butter), and tion means that procedures have to be improved, in peri-urban as well as remote rural areas. People with very which leads to better overall administration. low levels of literacy can benefit from and learn to use the ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 207 IMAGE 8.3. Many Enablers Are Needed to Ensure calculations are easily done, and the balance sheet is automati- Cooperatives Function cally updated. The various options for graphic display—using colored charts, for instance—make it easier for management and cooperative members to understand financial information. In dairy systems, daily payment slips are printed for farmers and can be modified to include other pertinent information, such as reminders to inoculate cattle. When detailed milk records are kept for each farmer, patterns in production can be discerned. Seasonal variations in quantity and fat content can be predicted, which are useful for the dairy, veterinary services, and cattle feed companies alike. The quality of infrastructure and the resources available to maintain it are challenging with all ICT tools. Computers need an electricity supply with backup generators and unin- terrupted power supply equipment to cope with failures if they are common (generators will add to the overall cost of installing a computer system). Power can be provided by Source: Ray Wiltin, World Bank. solar panels where the climate is suitable. The choice of technology also depends on whether a range of systems, if they are designed with care and deliver tangible computer and training experts can be found within a reasonable benefits (image 8.3). distance of the cooperative’s offices and are able and willing to travel to the site. If a solar-powered computer system is set up Even so, the danger of widening the digital divide persists. The in a remote area, for example, initial training and routine main- best potential clients for computerization are successful and rel- tenance will almost certainly be done by staff from elsewhere. atively rich organizations with business-minded management, The cooperative’s administrative personnel must be confident situated near a big city. Poor cooperatives find it challenging to that any subsequent problems will be dealt with speedily. This purchase computers, and distant ones do not have electricity. kind of response is unlikely if support services are sparse or do not exist, or if the surrounding road network is poor. Computerization has clear potential to make the governance of cooperatives more efficient, transparent, and fair. Even if Although there are real benefits for a farmer organization to they do not necessarily understand the technology, coop- have a simple computerized member and MIS, the organiza- erative members can see that the new systems work well. tion can achieve far more if it also has Internet connectivity. In dairy cooperatives, for example, computerized systems Dial-up connections are possible where telephone land lines facilitate timely payments to farmers for their milk, together are available. Mobile phone coverage is expanding, and with clear records of all transactions (milk supplied and another alternative is to use a small, plug-in wireless adapter inputs bought). Where there is an automated milk collection to connect to the Internet. Neither option is as fast as a broad- system, it is operated by personnel of the cooperative, who band connection, and both are subject to lapses in service. are generally also farmers and members of the society. Milk Supportive government policy and willingness on the part is always weighed and tested, with few errors, and the data of government organizations to join partnerships are impor- are displayed clearly on the testing equipment. The opera- tant enablers. For example, India’s National Cooperative tion is quick and transparent. Farmers no longer worry that Development Corporation supports computer projects in figures might be adjusted by unscrupulous staff. the cooperative sector, including hardware, site prepara- Benefits to the cooperative societies are many, largely tion, system and application software, and training. It has because computerized accounting is faster and more reliable. encouraged cooperatives from the primary level to the state Computerized accounts are much quicker to audit and may and national levels to install computers and evolve effective even be displayed online for greater transparency. Cooperatives MISs. Lower-level (district and primary) cooperatives must need to employ fewer clerks, and daily accounts are available have a threshold turnover of rupees (Rs) 1 crore (roughly immediately at each milk collection center. Profit and loss US$225,000) to qualify for assistance and must be financially I C T I N AG R I C U LT U RE 208 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T sound and viable. This stipulation raises the issue touched on For long-term sustainability, the private sector probably before—that only the more organized cooperatives qualify should be involved in computerization projects. Success for assistance, thereby widening the digital divide. may thus depend to an extent on the willingness of entre- preneurs to risk capital. In India, the inventors of milk-testing Indirect government support can come from the educational equipment were prepared to lend it out for free so that dairy system, because skilled people are needed to develop and cooperatives could see the benefits. They also had the fore- maintain computer systems. For example, among Kenya’s sight to predict that illiterate farmers would accept the sys- roughly 30,000 university graduates in 2008, only about 5,000 tem and use it confidently. Success might also depend on were considered suitable for employment in the ICT industry creating a critical mass of users so that a business “ecosys- (World Bank 2010). This situation makes it all the more impor- tem” can develop. This effort would include software devel- tant for Kenya’s Cooperative College to move forward with opment, support, marketing, and other network effects. plans to train students in the CoopWorks software. Finally, aside from modernizing their management informa- The independent nature of open source software allows users tion tools, cooperatives need to attract good management to tailor it to their needs, and it can be a form of insurance against staff if they are to compete in the marketplace. A cooperative power issues—no single individual or group can control it, and must decide how much it is prepared to spend on manage- users may be encouraged to cooperate. But this advantage is rial capacity. Box 8.9 lists practical guidelines to help farmer theoretical in the many cases where farmer organizations do organizations use computerized administration and manage- not yet have the capacity to develop software themselves. ment systems. BOX 8.9. Considerations for Effectively, Sustainably Computerizing Farmer Organizations and Cooperatives The organization’s management and members will want a system that works, can be maintained, and is affordable. In small, cash-strapped cooperatives, it may be hard to persuade farmers that it is worth making the investment, because initial costs are high and benefits are not immediately apparent. It is broadly true that the bigger the institution, the more likely it is to afford the costs of computerization. How willing are management and members to invest money and time and to take a long view? In the early stages, man- ual and computerized systems must operate in parallel to make sure that data are not lost, and this procedure increases costs in the short term. Can cooperatives make independent investment decisions and buy a computer system from a local provider on a com- mercial basis? Management might lack the skill to do this, and it might be hard to get loans for the investment. Which approach to software development—commercially licensed or free, open source software—is best? In practice, the cost of the software is likely to be only a small part of the overall cost of computerization, so this issue might be less important than others, such as technical support (see the next point). Is backup technical support available? Aside from requiring initial installation of the software and training in its use, the contract should require fully functioning accounting output. All operations, not just the machinery, must work and be reli- able for a long time. Consider how the process will be funded and develop plans for sustainability. Training is very important. Enough trained operators must be on hand locally. Local availability is a critical requirement, because individuals with computer skills tend to migrate to towns and work for companies at higher pay. Training should not focus simply on narrow technical issues; it needs to provide an insight into the wide-ranging possibilities of a fully functioning computerized system. Without this overview, cooperatives may not use a system to its full capacity. Consider the possibility of offering on-the-job training. Cooperatives that are already using computer systems might offer internships to staff from other cooperatives. Perhaps such internships could be linked with formal technical education at the tertiary level. Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 209 The new technology found a ready market, once initial mis- INNOVATIVE PRACTICE SUMMARY IT Tools for India’s Dairy Industry trust was dispelled by active marketing by the company, which offered equipment to some cooperatives free of charge. The With demand for milk in developing countries projected to dou- free installations showed neighboring cooperatives the utility ble in the next 20 years, dairy cooperatives are crossing the digi- of automated collection centers. Intensive training was pro- tal divide. The need for computerized administrative systems is vided, and IT systems were maintained by motorcycle-borne especially urgent in India, the world’s largest milk producer. service engineers who could quickly attend to any faults. Dairy cooperatives typically have thousands of members. Only when the cooperative was convinced of the system’s The recording system at the collection point has to cope worth did it have to pay. The application, initially built around with the huge volume of members’ daily transactions. Milk is a microprocessor but now usually involving computers, took highly perishable, especially in hot climates, and any delay in a decade to diffuse on a large scale, but many Indian dairy collection quickly leads to significant waste. Members often cooperatives have now adopted computerized systems. buy inputs on credit from the cooperative. These purchases Developers of the Akashganga system claim that there is a viable have to be reconciled before members can be paid for their market for companies that can design products suited to the milk. Each member needs a statement at the time of each needs of cooperatives in developing countries. The design of the monthly or twice-monthly payment to show (correctly) how equipment was carefully considered, not only to ensure that it it has been calculated. Payments must be timely and regular, was easy to use but also to make the weighing equipment suf- because cooperative members depend on receiving their ficiently robust to cope with the heat and dust of rural India. Price money on time. In manual accounting systems, a mountain of was an issue, as cooperatives have to justify expenditures to paperwork is done before issuing each payment. Computer members. The equipment to measure fat content was developed accounting can produce up-to-date payment calculations and in India for less than one-quarter the cost of European designs. member statements at the click of a mouse. The most advanced examples of computerization are to be SUBSEQUENT INNOVATION found in the Indian dairy industry, where cooperative societies Village cooperatives have installed more than 3,000 comput- have a long history. India has more than 10 million dairy farm- ers to support automated milk collection.17 Distributors are ers, most of whom run small, marginal operations (Sharma keen to computerize their operations, too, and to get email and Yadav 2003). Although milk yields had quadrupled in the connectivity for better communication with sales offices. 40 years ending in 2001, time-consuming manual recording systems had changed little. Producers waited for hours before Currently, no standard ICT solution is used throughout the they could deliver their milk, much of which soured in the heat. industry. Software may be tailored by local vendors to a par- ticular enterprise (the Mulkanoor Women’s Dairy Cooperative EARLY INNOVATION has taken this route), or dairies may choose to use packages developed by software companies such as Tata Consultancy A significant change occurred in 1996, when a small private Services.18 Member records can include not only information company (Akashganga–Shree Kamdhenu Electronics Private on milk delivered and inputs bought but also information on Ltd.) developed IT-based tools to automate milk collection at local veterinary care (dates for vaccination or artificial insemination, dairy cooperatives and computerize the accounting system.15 for instance), so that farmers can be prompted to take action. The company introduced simple technology to weigh milk, check its quality (fat content), and pay producers promptly. The basic Some dairies are now upgrading to enterprise resource plan- model was an electronic weighing system, a milk analyzer, a per- ning (ERP), which encompasses the range of activities from sonal computer, and accounting and management software.16 the farmer or collection point to consumer sales (box 8.10).19 One of these is the Gujarat Cooperative Milk Marketing 15 This summary is based on information from the Akashgasnga Federation Ltd., whose brand name is Amul. The federation website (http://akashganga.in/WhatWeDo.htm and http://www .akashganga.in), a presentation on the Amul Dairy Project by Vipul Vyas (http://www.scribd.com/doc/16808474/Amul-Dairy-Project 17 See the presentation on the Amul Dairy Project by Vipul Vyas (http:// -by-Vipul-Vyas), the UN-Habitat Best Practices Database (2006), www.scribd.com/doc/16808474/Amul-Dairy-Project-by-Vipul-Vyas). and personal communication with Anil Epur. 18 Anil Epur, personal communication. 16 Akashganga’s current high-end system, selling for about 19 A widely used, comprehensive ICT solution (based on the US$3,300, incorporates an electronic weighing system, a milk Microsoft DYNAMIX ERP package) currently costs around analyzer to test milk quality, a personal computer, and account- Rs. 3.5 million. It can handle all activities for a daily throughput of ing and management software. up to 10,000 liters of milk (Anil Epur, personal communication). I C T I N AG R I C U LT U RE 210 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T BOX 8.10. What Is ERP? Despite this potential, the process of computerizing agricul- tural cooperatives and producer organizations is at an earlier A large company’s “back office” makes use of many dif- stage in Kenya than in India. The impetus for computerization ferent systems, including planning, manufacturing, distribu- in Kenya has come not from private enterprise with govern- tion, shipping, and accounting systems. Enterprise resource ment support, as in India, but as a joint push from Food and planning (ERP) integrates these functions into a single Agriculture Organization (FAO) and donors (Kenya National system designed to serve the needs of each department Federation of Agricultural Producers 2008).21 within the enterprise. ERP is more of a methodology than a piece of software, although it does incorporate several soft- Under a donor contract, the private sector developed a ware applications under a single, integrated interface. prototype management and member information system to improve the business efficiency and competitiveness of Source: Sererra (http://www.sererra.com/ERP). producer organizations and cooperatives in national, regional, and global markets. The system, known as CoopWorks, is collects over 10 million liters of milk every day and is co-owned open source software available free of charge from http:// by some 2.8 million milk producers. All zonal, regional, and sourceforge.net/projects/coopworks/.22 member dairies are connected through very small aperture The software replicates all the accounting functions that terminals (VSATs) to make information-sharing easier. Amul is would formerly have been done on paper, and it consists of a in the process of Web-enabling the entire supply chain so it dozen or so modules (including member management, inven- can capture key information at the source. tory, payroll, and others). It conforms to Kenyan government The experience in India suggests that the private sector plays regulations and the stipulations of the International Systems an important role in bringing computers to rural communi- Audit and Control Association, and the prototype was fol- ties and that such activities can profit private enterprise and lowed by improved versions (the latest being CoopWorks 5). benefit users. Complementary support from the public sec- tor was also valuable, including support from the National THE DAIRY EXPERIENCE Cooperative Development Corporation (discussed earlier) CoopWorks was first trialed at the Tulaga dairy coopera- and the National Informatics Center. The National Informatics tive in 2006. The system kept member records, including Center developed Lypsaa and openLypsaa software, a com- the amount of milk delivered and any purchases made by the plete solution for dairy cooperative societies, used by more member. Clerical officers found they could operate more effi- than 50 societies in Kerala. The center also developed a ciently, without duplicating work, and the task of preparing Linux-based portal for communication between the coopera- members’ monthly payments was much easier. Fewer errors tive department and the cooperative societies.20 in this important task meant that members’ confidence in the The key lesson is that change does not come quickly, even society improved. where all factors are conducive to development. Despite At the start of the trial, Tulaga had 800 active members, aggressive marketing by the inventors, clear benefits to which increased to 1,800. Daily milk intake more than tripled, users, and a supportive policy environment, it has taken a from 3,000 to 10,000 kilograms, and the average price paid decade to automate dairy cooperatives on a large scale. to members increased from K Sh 10 per kilogram to K Sh 17. Cooperative sales also tripled in eight months. The milk INNOVATIVE PRACTICE SUMMARY customer base increased from two processors to five after CoopWorks Dairy and Coffee, Open Source many private buyers emerged. Software Launched in Kenya Kenya, one of the largest milk producers in Africa, sources 21 Specifically, an FAO project funded by the Government of Finland more than 80 percent of its milk from roughly 800,000 small- in collaboration with Agriterra (the Netherlands) and Kenya National Federation of Agricultural Producers. scale dairy farmers (Seré 2010). These producers “represent 22 This summary is based on information from the Kenya National an emerging market opportunity for local and international Federation of Agricultural Producers (2008); personal communica- tion with Marcel Werner (Flametree Systems / Innovation Africa) agribusiness alike” (Seré 2010). in Kenya; the draft report of the AgriterraCoopWorks evaluation mission to Kenya (January 2011); “How Open Source Software Makes Money for Coffee Grower Cooperatives” (http://www 20 See http://www.kerala.nic.in/Brochures/opensource.pdf; http:// .selectstartcafe.com/2010/08/how-open-source-softwaremakes informatics.nic.in/archive/july2007.pdf. -mon...); and “Kenya Coffee Eyes a New Golden Era” (2011). ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 211 After various revisions, CoopWorks Dairy version 2 was tested at better understand their costs and profits. KCPA is delivering Oloolaiser and Wamunyu dairies, where it was also well received. coffee and input prices to members on their mobile phones By 2010 at Tulaga, cooperative membership had reached 3,000, via text and will soon link to mobile banking as well. The asso- and milk production was 18,000 kilograms per day. Since the ciation has also promoted CoopWorks Coffee throughout the introduction of CoopWorks Dairy, Tulaga has used its own funds country (covering about 600,000 producers). to increase the number of computers from 4 to 15 and uses all the capabilities (modules) of CoopWorks in its operations. A weighing scale may be added to the system, although this option is relatively expensive (€1,000). Farmers are said to A group of donors and international organizations, together value automated scales, as they believe there is less scope with the Cooperative College, the Cooperative Bank, and the for dishonesty behind the scenes, but their high cost has Kenyan Ministry of Cooperatives, all see a need to computer- prevented most cooperatives from adopting them. ize Kenya’s dairy cooperatives on a larger scale and believe that it can be done. Electricity is available in most places, PRELIMINARY CONCLUSIONS FROM THE OPEN dairy cooperatives are big enough to need quick accounting SOURCE EXPERIENCE methods, and investors are ready to help. CoopAfrica has a The experience in Kenya suggests a different route to com- project to involve all stakeholders, including the Cooperative puterization. Free, open source software can be developed, Bank (providing loans) and the Cooperative College (training customized, and upgraded, preventing the software provider local service providers). from becoming too powerful within an organization. THE COFFEE EXPERIENCE Using free, open source software does not mean there are no costs to computerization, however. The software is available Given the applicability of the software to other products as well as a free download, but a cooperative still has to buy appropri- as milk, a Finnish-funded AgriCord-Agriterra project developed ate computing hardware and find resources to train staff to a version of CoopWorks for coffee (Kiplagat 2010). Smallholder use the system.23 The low costs and high adoptability of open coffee farmers were dissatisfied with the recordkeeping in cof- source software are insufficient to create critical mass and fee factories, where they suspected that unscrupulous clerks network effects if other related costs are too high. easily abused the paper-based system. The Kenya Coffee Producers Association (KCPA), which implements the project, A survey in late 2009 of 27 agricultural cooperatives in Kenya was attracted by the lower cost of free, open source software. suggested that many are aware of the potential benefits and would be keen to computerize if the process were less expen- The new system has two components, one to keep records sive (Flametree Systems Engineering Ltd. 2010). The two within the society and one to provide information via a website cooperatives involved in the pilot project certainly felt the sys- and test messaging. The system tracks all the steps from cof- tem to be a success (Nissila, Puhakainen, and Tanhua 2009). fee collection to processing to sales. A member management feature holds data on individual members, and the accounting A recent review found differences in the extent to which module has cash book registers, ledgers, and a payroll system. cooperatives use CoopWorks’ capabilities. Even when only Other features include asset registration, loan management, some modules were used, the effects of computerization inventory for the cooperative store, and report publication. were considerable, not least in creating a stronger bond With the old manual data entry system, the cooperatives between the cooperative and its members. The main chal- did not know how much coffee the milling factory would lenge is to make users aware of the true scope of the soft- produce from their beans and could not predict the financial ware and the significant benefits that will accrue on top of return. The new system, however, can convert the weight the improvements in efficiency and transparency already of beans into an estimated value once it goes into the mill. experienced. Good ICT support at the local level is vital. Trainers or advisers must be proactive in demonstrating The software also monitors coffee deliveries based on each the “big picture” of what CoopWorks can do, rather than cooperative’s tracking number. Once the coffee is sold, the payment is received into the system and credited to the appropriate cooperative’s account. CoopWorks already pro- 23 Successful free, open source software (FOSS) initiatives are driven by large developer communities, including programmers, duces a member statement of inputs bought on credit and trainers, and advisers with commercial interests. The software the proceeds of deliveries sold to millers, which helps farmers will be free, but related services may not be. I C T I N AG R I C U LT U RE 212 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T dealing only with narrow technical instruction or responding women from harvesting and transporting poor-quality to queries from cooperative staff.24 produce to the collection point only to have it rejected. Filmed demonstrations of new, more efficient processing Apart from highlighting capacity issues specific to CoopWorks, methods would improve the quality as well as the quantity the experience has shown that further capacity building in of shea butter. modern information systems is required. To address this issue, Kenya’s Cooperative College is adopting a proactive, These benefits materialized, and Coprokazan now has its own innovative approach by planning to cover CoopWorks software website showcasing its products. An unplanned benefit of in its curriculum. Even though the short timeframe of the pilot computerization was that it enabled Coprokazan to improve project was insufficient to develop capacity, it could be argued governance and administration. The cooperative’s office that without such support for development, dairy cooperatives personnel began using the computers for routine administra- in Kenya might be even slower to computerize. tion, and member records are now kept electronically. Staff members also learned to use PowerPoint to produce a visual INNOVATIVE PRACTICE SUMMARY overview of yearly accounts and activities to show at the ICT Improves Marketing and Governance Annual General Meeting, which has increased transparency for a Malian Cooperative and boosted members’ confidence in the workings of the In some cases, the decision to use computers is not driven coop. This experience indicates the extent to which it can be by a perceived need for better governance and administra- challenging to neatly apportion the benefits of ICT. tion, but better governance may be a welcome by-product In the first four years after ICT techniques were introduced, of the process. Women in southern Mali traditionally gather the cooperative almost tripled its shea butter production and fruit from the shea tree (Butyrospermum parkii ) to extract the income. With its improved administrative capacity, the coop- seeds for processing into cooking oil and a “butter” that is erative can now deal with more members. From a base of an effective skin moisturizer. In 1999, by forming a coopera- fewer than 400 in 2006, the cooperative expected to have tive society, Coprokazan,25 producers were able to get better more than 1,100 members by the end of 2010. The coop- prices for their products. All management and accounting erative plans to invest in GPS equipment as a step toward procedures were done manually, and the society had only a traceability and possible organic certification. few hundred members. Among the more general lessons from Coprokazan’s experi- The move toward computerization came from a desire to ence was the lesson that local languages make technology produce effective training materials for cooperative members, more accessible. Many poorer farmers, especially women, raise the profile of the society, and enable its products to reach have poor reading and writing skills, even in their own a wider market (Laureys, Marcilly, and Zongo 2010). Working language. It is unrealistic to expect them to master ICT in a with the Malian Association for the Promotion of Youth and the foreign language. Computer keyboards were adapted to International Institute for Communication and Development make it easier for Coprokazan women to type in the local (IICD), Coprokazan assessed what sort of technology would language. be most useful. Zantiébougou, the town where the society was based, had no mains electricity, so all equipment had Multimedia tools, on the other hand, often do not require to be solar powered. This requirement limited the society to high literacy levels. Women who could barely read or write three computers, together with a printer, a projector, a small learned to use digital cameras and create image-oriented nar- video camera, and some digital photo cameras. ratives that could be used for training cooperative members. With these, the cooperative planned to create visual training Another unforeseen effect of bringing solar-powered com- materials that would give clear information to all members, puter equipment to a small town without electricity was that including those who could not read. Photographs showing the cooperative offices became a magnet for nonmembers. the quality of nut suitable for processing would prevent Some people reportedly traveled more than 30 kilometers to type, print, and copy documents. The training room was 24 Draft report of AgriterraCoopWorks evaluation mission to Kenya, used by other organizations for training sessions, and local January 2011. schoolchildren were attracted to the premises to do their 25 http://www.coprokazan.org. Coopérative des Productrices de beurre de Karité de Zantiébougou (Zantiébougou Shea Butter homework, as the building is one of very few in the area to Producers’ Cooperative). have electric light. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 213 Topic Note 8.3: GIVING FARMERS A VOICE AND SHARING INFORMATION TRENDS AND ISSUES a place; and the radio is also becoming cheaper in the sense In an increasingly interactive world, the idea of “having your that the cost of setting up a radio station has fallen dramatically say” is easier to put into practice. Internet-based discussion in recent years (AFRRI and FRI 2008). Recording equipment forums, blogs, and phone-in radio programs are part of the that only a decade ago would have cost thousands of dollars information exchange landscape. For farmers in the develop- can now be bought for about US$100 or less, and computers, ing world, opportunities to be heard are few, but the situation the Internet, and mobile phones have brought down the cost is changing, largely as a result of the simple combination of of obtaining and storing information for broadcast. Research local radio and mobile phones. (See Module 13 for more on in 2008 reported that a microstation with a broadcast range of citizen participation, exchange, and knowledge sharing.) 2.5 kilometers had been set up in Mali for just US$650. The hope is that as radio becomes cheaper and more interac- Farmer organizations have higher visibility than individual farmers. tive, its programming can become much more locally relevant Many have a website and Internet connectivity to communicate and inclusive. Efforts in this direction include Farm Radio with similar organizations or in regional forums. If farmers can International. This NGO partners with more than 350 radio raise issues with their local organizations, there is a chance that broadcasters in almost 40 African countries to develop program- their concerns will be noted and passed to higher levels, which ming to help small-scale farmers improve their food security. suggests an important role for ICT. Answers to technical prob- Participatory Radio Campaigns, carefully planned broadcasts lems raised by members need to reach farmers even in remote focusing on one farmer-selected issue at a time, feature farm- areas, which is currently best achieved by using broadcast media. ers’ participation and appear to make measurable differences Given the lack of infrastructure typical of remote rural areas, it to farmers’ livelihoods (AFRRI and FRI 2009). (For more detail, is a challenge for farmer groups to use ICT for interactive com- see Module 6.) In Uganda, Her Farm Radio, an initiative of Farm munication. Radio and, to a lesser extent, television broadcasts Radio International since 2013, reaches more than 2 million reach wide audiences and can be understood by all, even those women. Thirty episodes of a radio drama are aired in six lan- who cannot read or write, so they are currently the best ways of guages by 10 radio stations to promote the consumption of transferring information to individual farmers. When the makers orange-fleshed sweet potatoes. These episodes are vibrant and of radio and television programs base their output on real issues interactive, because widespread use of mobile phones enables raised by farmers themselves, farmers readily act on the infor- listener polls, call-ins, and discussions. A current program, Her mation to improve their production methods. Farmer organiza- Voice on Air,26 feature true stories of women farmers in Malawi, tions thus have a role in seeking the views of their members on Tanzania, Uganda, and Ethiopia. which topics should be featured in the broadcast media. Local radio stations are particularly well placed to develop The following sections highlight the effectiveness of radio and programming to suit their audiences. When radio operates as television in reaching a broad audience, including women. a source of reliable information that works at the local level, it They show that the interactivity enabled by phone-in and SMS gives farmers an alternative to limited public agricultural exten- contributions brings true relevance and usefulness to farmers. sion services. In Kenya, Radio Mbaitu FM prioritizes content on fruit farming and horticulture and uses the Kikamba language to reach the farmers in its listening area. Radio Coro FM, broadcast- ICT MAKES RADIO PROGRAMMING LESS ing in Kikuyu, covers dairy farming, which is widespread in cen- EXPENSIVE, MORE INCLUSIVE tral Kenya. Radio Salaam uses Kiswahili to broadcast information Radio is a popular medium that can draw a wide audience and on fisheries and fruit farming to coastal farmers, while Kass FM, operate in local languages (image 8.6). Like mobile phones and a Kalenjin station, focuses on dairy and maize production. other ICT applications, however, radio has issues related to access, such as who owns the radio, who chooses which pro- In Zambia, the Research Into Use (RIU ) program uses com- grams to hear (men, women, elders), or whether programs are munity radio as a way of promoting conservation agricul- broadcast when listeners can actually listen. The innovation in ture (Research Into Use 2011). Programs follow different radio is that programming is becoming more interactive, with phone-ins, live community forums, and radio diaries all finding 26 http://www.farmradio.org/portfolio/her-voice-on-air/. I C T I N AG R I C U LT U RE 214 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T IMAGE 8.4. Clara Moita, Broadcaster with Radio 5 in up in a village, with farmers invited to bring diseased or pest- Arusha, Tanzania infested crop samples or other field problems to be discussed by a panel of experts. Possible solutions are then suggested. Each seminar is filmed and broadcast live by Doordarshan through its provincial network (55 stations, using the appropriate local language) to share the information with farmers who live too far to attend in person. Daily bulletins on the latest market prices and weather forecasts also appear on television. The broad- caster also offers a weekly live phone-in program to give experts’ “instant solutions” to farmers’ problems. In some areas of India, this televised exchange occurs twice a week. Information about the programs is shared on the Internet—television producers upload program details onto the portal. The website also fea- tures contact details to facilitate interaction between farmers and appropriate subject matter specialists, as well as opportuni- Photo: Facebook. Source: Takepart.com. ties for farmers to give feedback and offer suggestions. formats—prerecorded factual programs, drama programs, FARMERS “CLUSTER” IN THE CARIBBEAN and phone-in or interactive programs—and are broadcast The Caribbean Farmers Network (CaFAN)28 has found that farm- in either English or the local language. Listeners particularly ers in the Caribbean region benefit from working in clusters enjoy the vernacular, drama, and interactive output. that are created either geographically or thematically (Greene 2010). Farmers working in close proximity, or those who simply RIU Zambia has set up radio listeners’ clubs that have trained share an interest, set up a cluster to share technical information over 1,000 people in recording skills and club coordination. and experiences, plan for new market demands, and maximize Local farmers can now record their discussions, questions, their lobbying and bargaining power. and development concerns and send the recordings to their local radio station. A producer then edits the material and CaFAN encompasses 30 member organizations that together includes feedback from experts before the program is aired. represent half a million farmers in 12 countries. Clusters cut These programs are also interactive at the point of broadcast; across membership boundaries. Farmers use Skype, email, farmers phone in with further contributions. and the CaFAN website to keep in touch. Text messages are also widely used to communicate directly with farmers, and it Some of the radio stations are private, such as Sky FM in is hoped that production information will soon be sent that way. Monze District. The RIU program supports them to broad- cast this content, and six radio dramas were sponsored by CaFAN claims that fostering connections, sharing information, a local seed company. This suggests a route toward sustain- and training farmers puts farmers in a stronger position to respond ability when RIU support comes to an end. Another possibil- to the perennial problems of the agricultural sector. They say that ity is shown by Namwianga Radio in Kalomo District, which collective action can give better access to important resources is supported by the church. Community church services have (agricultural inputs, credit, transportation, information) and can apparently proved to be useful forums for smallholders to reduce financial risk. Pooling resources and collective marketing share experience with conservation agriculture. reduces the high transaction costs incurred by farmers acting alone: Operating as part of a group is simply more efficient. TELEVISION SUPPORT FOR AGRICULTURAL EXTENSION IN INDIA THE ZNFU DISCUSSION FORUM In 2005, the Doordarshan Broadcasting Corporation of India ZNFU reports more than 10,000 hits a month to its website.29 began a project to televise live, interactive, problem-solving New topics are introduced to its discussion forum as a crop seminars as well as to set up various other initiatives to means of encouraging farmers to participate and share their spread agricultural information.27 Agricultural seminars are set 28 http://www.caribbeanfarmers.org/. 27 “Mass Media Support to Agricultural Extension,” ICT for Development. 29 http://www.znfu.org.zm/. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 215 experience related to particular issues. Current threads include Technological developments can be seen simply as exten- the state of feeder roads in rural areas, price expectations for sions of a very human need. These developments indicate the maize crop, and tariffs charged by Zesco (the national elec- that there is an argument for recommending that govern- tricity supplier). Members are invited to make suggestions ments and donors should strengthen the capability of farmer to be included in ZNFU’s submission of proposals relevant organizations to contribute to radio programming. The credibil- to agriculture in the national budget. The “How Do I” section ity and transparency of farmer organizations would improve if for technical questions is divided by subject and includes farm problems and achievements were discussed openly on local and land, equipment, livestock, and employment. radio, with members’ comments being welcomed on air. Any issue related to the organization could be raised. Despite its welcome and advanced features, this online forum still has low participation, because most farmers do not have Independent community radio is relatively new in most computers, Internet access, typing skills, or great proficiency African countries. About a decade ago, the only programs in English. There are only a few posts and comments on the offered were from publicly funded state radio. A study of forum—some discussion categories are empty, and several the effectiveness of the Participatory Radio Campaigns of the other posts are more than six months old. At this tentatively concluded that participatory farm radio by itself, stage, the ZNFU website appears much more useful to large- without any other intervention, has a strong impact and is a scale farmers than to the smallholders who form the majority highly cost-effective strategy for helping farmers learn about of those working in agriculture in Zambia. and adopt new approaches to farming (AFRRI and FRI 2009). However, a more recent study showed that farmer exposure to and participation in radio campaigns may increase aware- LESSONS LEARNED ness and knowledge but may not be sufficient to cause the There is much to gain but also much to be done in giving farmer to adopt new technologies or innovations (Manda and farmers a voice. Rural areas lag behind towns and cities in Wozniak 2015). the infrastructure needed for online connectivity and access to blogs or Internet discussion forums. Many farmer organiza- A study into the economics of rural radio, a hitherto-unexplored tions are situated within reach of electricity and the Internet, subject, points out that the costs of programming depend on however, so they are able to set up websites to raise their the level of interactivity of the program format, the accessibility profile and market possibilities. Their online forums offer a of additional resources to produce specialized programs, and space for those few farmers with Internet access to share the type of station involved (AFRRI and FRI 2009). Community information or raise concerns to be aired more widely. stations tended to invest more resources in interactive pro- gramming with community involvement and less on in-studio Considering the current state of infrastructure in much of the formats. The cost of a reporter in the field (a common format developing world, it is realistic to expect the uptake of ICT to for agriculture reporting) was about US$300 per program for a give farmers a stronger voice at the organizational level rather commercial station in Uganda and just over US$100 per pro- than individual level. Giving smallholder farmers a stronger gram for a community station in Malawi. political voice, for example, can be done by encouraging them to join an organization or cooperative. If individual farmers can Educational farm radio must compete for airtime with less reach their representative organizations better, these organi- expensive and popular items such as music and evangelism, zations can effectively represent farmers at the local, regional, but interactive programs with farmers—phone-in shows, national, and international levels. The best way for individual field interviews, listening groups, and talk shows with local farmers to be heard at present is via local radio stations. experts—can be popular enough to compete. Among the radio stations examined, the average cost of rural produc- The visual nature of television makes it particularly valuable tion ranged from just over US$100 for a phone-in show to for practical demonstrations of good agricultural practice. US$300 to record and air a village debate. An investment Overall, though, radio seems more useful than television as a of US$500 per week (US$26,000 per year) would therefore discussion forum, given the ubiquity of radio ownership and finance the production and broadcast of 3–6 hours per week access. Radio producers are now skilled in presenting infor- of interactive farm radio programming. Radio broadcasting mation in memorable ways, and radio programs are more requires an enabling policy framework under which local interactive, owing to contributions made through mobile radio stations can flourish without excessive regulation. phones. Listeners’ clubs in Zambia and Niger show that oral Many African countries lacked such a framework until communication is very popular. recently, so commercial and community radio stations are I C T I N AG R I C U LT U RE 216 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T still relatively new. Many countries have issues related to a large proportion of first-time Internet users access it via freedom of expression. For instance, proposed amendments their mobile phones using Web 2.0 applications such as to the Zambian Constitution included scrapping an article on Facebook. Because the biggest factor in user satisfaction is freedom of speech in favor of one providing penalties for the speed of response, it makes sense to design websites false statements. This amendment is of major concern to the for prevailing conditions. See box 8.11 for additional consid- many privately sponsored and civil society–sponsored local erations in designing and implementing ICT interventions to radio stations. Another example is Ethiopia, where commu- increase farmers’ voice. nity radio (whether run by the private sector or civil society) is not fully liberalized. INNOVATIVE PRACTICE SUMMARY Community Listeners’ Clubs Empower Social Effective radio programs depended heavily on partnerships, Networks in Rural Niger both with radio broadcasters, individual farmers, and agricul- Since July 2009, 300 community listeners’ clubs (200 all- ture experts. For example, close cooperation with the Indian women, 89 all-men, and 11 mixed clubs) have been estab- Department of Agriculture has been necessary to support the lished in villages of southern Niger.30 Involving more than Doordarshan Broadcasting Corporation’s live crop seminars. 6,000 women and men, together with nine community Villages are chosen in consultation with the department, and radio stations, the Listeners’ Clubs Project breaks the iso- the experts who deal with the farmers’ questions come from lation of rural populations, especially women. It does this the agriculture department of the nearest university. Where by offering access to information and communication and possible, the Department of Agriculture sets up an exhibition by encouraging people to join discussions on development in tandem with each broadcast to offer farmers additional issues. The project is led by FAO, via the Dimitra Project, and information about crop varieties and new technology. cofinanced with UN agencies and the Canadian Development Corporation. It is implemented by an NGO. For farmer organizations wishing to set up a website, with or without a discussion forum, the question of design can The community listeners’ clubs are groups of villagers who be fraught with difficulties. Bandwidth—as a percentage have been trained and organized through literacy training of average annual income—is still expensive. International centers to identify and discuss their information needs and bandwidth increased 20-fold and the size of terrestrial net- development priorities. Whenever a group finds a topic that works doubled between 2009 and 2014, but to make the they feel deserves attention, they contact a community radio Internet accessible and affordable, more investment is to record club members’ views on the subject. These views needed in national backbones, cross-border connectivity, and last mile access (Nyirenda-Jere and Biru 2015). At the 30 This section is based on information from FAO’s Dimitra Newsletter, same time, traditional website design has been transformed: issues 17, 18, and 19, available at http://www.fao.org/dimitra/dimitra optimizing content for mobile devices is critical, given that -publications/newsletter/en/. BOX 8.11. Considerations for Effectively, Sustainably Enabling Farmers to Share Information and Gain a Greater Voice in the Agricultural Sector  How many members of the farmer organization can realistically benefit, given local infrastructure? This question favors radio broadcasts over Internet discussion forums and similar technologies.  What resources are available to the farmer organization, including basic infrastructure and financial and human resources?  Will radio broadcasts be done in the form of “community” radio, or will they be part of a commercial local radio station?  What is the best way to support the process to ensure that it can become self-sustaining? Consider whether radio broadcasts should be regarded as a significant public good that justifies long-term public support.  When setting up a website, determine how complex it will be. The level of complexity will depend on its intended purpose. Is it simply intended to raise the profile of an organization and provide contact details, or does it need to be used interactively by buyers or those seeking information? Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 217 are then broadcast, prompting immediate responses, opin- through targeted interventions to reduce the level of inequal- ions, and suggestions sent by mobile phone from other ity they experience and improve their socioeconomic posi- listeners. The clubs have already discussed a wide range of tion. The interventions include but are not limited to training, topics, including food security, agricultural inputs, plant and cultural exchanges, networking and promoting interregional animal health, and policy issues such as land access and and intraregional trade, access to specialized credit, creation decentralization. Debating and listening to radio programs of sustainable employment opportunities, and advocacy to gives the participants knowledge, allows them to share their sensitize society to the needs and contributions of women experience, and reinforces self-confidence. in agriculture. The project has also improved rural populations’ knowledge From the beginning, CANROP has received regular sup- of new technologies. At the outset, each club was given a port from the Inter-American Institute for Cooperation on solar-and-crank-powered radio and mobile phones fitted with Agriculture (IICA)32 and the Technical Centre for Agricultural solar chargers, but the project was so popular that clubs and Rural Cooperation (CTA).33 In 2014, CANROP initiated were soon given extra mobile phones. These phones were a series of activities to facilitate networking and commu- linked up in a network known as a “fleet,” which enables nication among members and strengthen their knowledge cost-free communication at any time between the clubs and management (KM) skills. A KM scan34 developed by CTA radio stations. and Co-Capacity35 has helped the network to set new priori- ties for KM and communication and for finding new sources These mobile phones are now also used to pass wide-ranging of support. The first priority was to improve the network’s information between villages—such as forthcoming social communication capacity and extend its reach to farmers, events or the price of agricultural produce and livestock—or markets, governments, and external supporters. One of the to offer products for sale. The telephones in the fleet also results was a KM and Storytelling workshop held in Trinidad serve as public telephones, allowing private calls to be made to create awareness among stakeholders, share experi- for a small charge. For women, the telephones have helped ences and lessons, and identify key issues and opportunities create a social network, enabling them to communicate with in using KM to drive entrepreneurship and improve food and other women they have never met and to exchange informa- nutrition security. Participants resolved to develop a com- tion beyond the topics covered by the clubs. mon vision and values, create a database, decide how to use social media tools, and determine who should undertake The enthusiasm for the listeners’ clubs has exceeded all specific tasks to have a more profound impact on policy. expectations. Preliminary data indicate that women have gained self-confidence, good practices have been shared, For example, Faumuina Tafuna’i of Women in Business and even sensitive subjects such as HIV/AIDS have been Development Incorporated36 shared her experience in discussed. Club members have realized that their knowl- Samoa, where her organization has used a positive news edge and opinions have a value and that their voices matter. approach to help elevate farming as an honorable, exciting, and innovative occupation.37 INNOVATIVE PRACTICE SUMMARY Through Social Media, a Women’s Producer Acting on recommendations from the workshop, CANROP Network in Caribbean Small Island States began implementing activities to improve communication Improves Its Communication Capacity, Outreach, and knowledge skills among members, including: and Knowledge Management ƒ The establishment of a website, directly managed and Established in 1999, the Caribbean Network of Rural Women maintained by CANROP members, to serve as the Producers (CANROP) is an umbrella organization that collabo- rates with 12 national chapters of rural women’s associations 32 http://www.iica.int/en. 33 http://www.cta.int/en/. in the Caribbean.31 CANROP’s mission is to empower rural 34 “Introduction to the Knowledge Management Scan,” http://www women producers in the region to improve their livelihoods .cta.int/images/documents/Introduction%20KMScan_V2Sept2013 .pdf. 35 A knowledge management advisory firm based in Wageningen, 31 This Innovative Practice Summary is adapted from ICT Update the Netherlands. Bulletin, Issue 81. it was written by Gia Gaspard Taylor 36 http://www.womeninbusiness.ws/. (nrwptt@gmail.com), president of the Network of Rural Women 37 ICT Update, “Women at the Forefront of Knowledge Sharing,” Producers Trinidad and Tobago (NRWPTT), and Isaura Lopes http://ictupdate.cta.int/en/Feature-Articles/Women-at-the Ramos (lopes@cta.int), CTA. -forefront-of-knowledge-sharing/(published)/1455449487. I C T I N AG R I C U LT U RE 218 MOD ULE 8 — FA R MER OR GA NIZATIONS WOR K BETTER W ITH IC T main showcase for sharing best practices, promoting New ways and tools for external communication have put products and events, and disseminating news and the network and the women it represents on the radar of publications. key national and regional policy makers. Chavara Roker of the ƒ The development and creation of a dynamic Facebook Bahamas chapter was part of the CANROP delegation at the page and Twitter account to serve as the key tools for Caribbean Week of Agriculture (CWA) and felt that they had internal and external networking and informing stake- a strong presence: “A whole lot of people were talking about holders rapidly about the latest activities. CANROP, and after the CWA, the Director National School ƒ Continuous ICT training to ensure that members can for Science and Agriculture in the Bahamas invited us to do a update the network’s social media tools. presentation which enabled us to recruit new members and inspire young women.” ƒ Improving stakeholder connections through stake- holder analysis, strategic alliances at the leadership level, and becoming more aware of stakeholders’ DIVERSITY AND PROCESS needs and demands. The approach of CTA, IICA, and the consultants they mobi- lized to accompany CANROP was to support the emergence Among other activities, CANROP marked International of an organic process, in which the energy of diverse groups Women’s Day in 2015 with a series of “image messages” in with different histories and interests could blend to generate recognition of the work of Caribbean rural women producers. positive action. For example, the dynamic of the group work Since then, CANROP’s work has put more emphasis on the in the first workshop acknowledged the diversity between importance of KM as a tool for members to share information long-standing network executives, the newer chapters, and and experiences. For example: the passionate supporters, and at the same time sought to ƒ Everyone can learn more about the women of CANROP bring their different ideas together. The KM scan smoothly on Facebook and follow their Twitter conversation with aligned KM with the overall strategy and institutional capaci- the hashtag #weareCANROP. ties of the network. The KM scan “tree” has been devel- ƒ CANROP chapters also use Facebook: https://www oped, and its use by different actors in the network has been .facebook.com/SLNRWP?pnref=lhc; https://www supported and encouraged. .facebook.com/BAHMROP. ƒ Many CANROP members use Facebook personally and TOOLS AND METHODOLOGIES for their businesses: https://www.facebook.com/pages Storytelling has boosted the network internally and at /Good-Hope-Mushrooms/208423655856405?pnref the same time contributes to CANROP’s external image. =story; https://www.facebook.com/pages/Chiccharney Facebook seems to be a tool that fits the target group, but -Farms/423924377632772?pnref=lhc; https://www it excludes women who have no easy Internet access, and .facebook.com/pages/Chiccharney-Caterers-Bahamian using a mobile phone can be expensive. Yet using visual -Bread-and-Tang/217035645154282. media (on and offline) is flagged as empowering for a target ƒ They also have a closed sharing group: https://www group that has generally low levels of education. .facebook.com/groups/798898080161785/. INNOVATIVE PRACTICE SUMMARY REAL CHANGE The Case of the Pan-African Farmers’ Organization (PAFO) Internal communication among and within the chapters has intensified and become easier at all levels. Many In 2010, five regional farmers’ organizations created the CANROP chapters depended entirely on IICA for com- PAFO38: the Network of Farmers’ and Agricultural Producers’ munication with other chapters and their own members— Organizations of West Africa (ROPPA),39 the Southern with unavoidable delays and a lack of communication. The CANROP president notes that “now we are on Facebook 38 This Innovative Practice Summary was adapted from ICT Update Bulletin, Issue 81. It was written by Chris Addison (addison@cta.int), and we keep in touch, connected, and we can access each a senior program coordinator of knowledge management at CTA, other individually and share. You get instant response to in collaboration with Fatma Ben Rejeb (ceo@pafo-africa.org), chief emails. But further change is possible as some six or seven executive officer, PAFO. 39 http://map.seedmap.org/solutions/food-sovereignty/people chapters still work mainly using (Internet) communication -farmer-led-movements/network-of-farmers-and-agricultural facilities of IICA.” -producers-organisations-of-west-africa-roppa/. ICT IN AGR IC ULTUR E S E C T I O N 2 — E N H ANCING P RODUCT IVIT Y ON T HE FA RM 219 African Confederation of Agricultural Unions (SACAU),40 the way of disseminating relevant information and creating space Organisations Paysannes d’Afrique Centrale (PROPAC)41 in for dialogue. Even more important, it helps to create PAFO’s Central Africa; the Maghrebian and North African Farmers human network and build the skills to capture information Union (UMAGRI),42 and the EAFF.43 PAFO aims to organize and foster communication. farmers and agricultural producers, to effectively engage members in advocacy, and promote participation in the for- REFERENCES AND FURTHER READING mulation and implementation of Africa-wide development For general information on the use of ICT in development, see: policies that affect agriculture and rural development. PAFO Information and Communications for Development (IC4D), http:// recognized the value of KM from the outset, making it a key go.worldbank.org/DMY979SNP0. Three publications by the Royal pillar of its formative strategy and creating a knowledge man- Tropical Institute (KIT), Amsterdam, and International Institute of Rural Reconstruction (IIRR), Nairobi, are particularly recommended: ager position almost immediately.  KIT and IIRR. 2005. “Chain Empowerment: Supporting African Since 2012, CTA has worked with PAFO to support informa- Farmers to Develop Markets.”  KIT and IIRR. 2008. “Trading Up: Building Cooperation tion exchange and KM with an ICT platform that enables between Farmers and Traders in Africa.” policy discussions among board members and by build-  KIT and IIRR. 2010. “Value Chain Finance: Beyond ing a website for the organization. Prior to the first PAFO Microfinance for Rural Entrepreneurs.” Continental Briefing, which took place in Yaoundé, Cameroon, AFRRI and FRI (African Farm Radio Research Initiative and Farm in December 2013, ideas resulting from e-discussion held Radio International). 2008. The Economics of Rural Radio in earlier on the website’s group space were presented to help Africa. Ottawa: AFRRI and FRI. http://www.farmradio.org/english formulate policy on themes such as land acquisition, links /partners/afrri/info.asp. between climate change and agriculture, and rural youth in ———. 2009. “The Effects of Participatory Radio Campaigns agriculture. The strong achievements of the e-discussion led on Agricultural Improvement Uptake.” Ottawa: AFRRI and FRI. the KM and communications officers to hold a half-day ses- http://www.farmradio.org/english/partners/afrri/info.asp. sion during the conference to present those achievements AgriCord. 2010. “Farmers Fighting Poverty: Strengthening Farmers’ and challenges for farmer organizations in KM. Organisations in Developing Countries.” September, Leuven. Banks, K. 2009. “A Program to Reach Many Farmers.” ICT Update. As part of the development of PAFO’s knowledge plat- http://ictupdate.cta.int/en/Feature-Articles /A-program-to form, the regional farmer organizations were supported in -reachmany-farmers. developing their websites to ensure that content would be Bossio, J. F. 2007. “Sostenibilidad de Proyectos de Desarrollo con available across the network as a whole. Most recently, the Nuevas Tecnologías: El Caso de la Organización de Regantes y PAFO KM team was at the forefront of a massive Twitter Su Sistema de Información en Huaral.” Community Informatics 3 (3). http://www.ci-journal.net/index.php/ciej/article/view/394. campaign called #includeagriCOP2144 at the third PAFO Continental Briefing, in the context of the Africa edition of Cagley, M. 2010. “From the Web to the Phone.” ICT Update. http:// ictupdate.cta.int/en/Feature-Articles/From-the-web-to-thephone. the Global Forum for Innovations in Agriculture (GFIA). The Twitter campaign was launched to advocate the inclusion de Silva, H., and A. 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Toyama. 2009. “Warana January 16–22. http://www.wfo-oma.com/documents/role-of Unwired: Replacing PCs with Mobile Phones in a Rural Sugarcane -farmers-organizations-for-inclusive-business-in-africa.html. I C T I N AG R I C U LT U RE SECTION 3 Assessing Markets and Value Chains S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 225 Module 9 STRENGTHENING AGRICULTURAL MARKET ACCESS WITH ICT SHANE HAMILL (consultant, the World Bank) IN THIS MODULE A growing body of evidence suggests that market information services, especially those based on mobile phones and tablets, can enhance farmers’ ability to access markets and match consumers’ demands through improving the flow of information between traders and producers, reducing transaction costs, and enabling farmers to purchase required inputs. As new programs and applications are developed, and as the speed of information increases, the potential of information and communication technology (ICT) is still being discovered. Mobile Phones for Market Intelligence Farmers use mobile phones to build a network of contacts and draw on this wider expertise to obtain critical information more rapidly. Essentially the mobile phone, its special applications, and the Internet are becoming management tools for farmers, especially in relation to market intelligence. Greater access to information has proven to help farmers make better decisions about transportation and logistics, price and location, supply and demand, diversification of their product base, and access to inputs. ICT also facilitates market research, increasingly using live information. This market information strengthens farmers’ position in their day-to-day trading. Over time, market intelligence enables them to focus on satisfying consumers’ and buyers’ demands and on developing relationships with stakeholders in the next stage of the value chain. The key devel- opment challenge lies in assembling and disseminating this information in a timely manner, not just to traders or larger- scale farmers but also to smallholders. Case studies:  Esoko in Ghana: Market Information Tool Increases Price and Builds Inter-Village Networks  mFarming in Tanzania: Mobile Phone Service Increases Smallholder Access to Market Information Improving Logistics and Access to Inputs By improving supply chain management (SCM), ICT tools enhance logistics and reduce transaction costs. They reduce costs of coordination and transportation, increase transparency in decision making between partners, disseminate mar- ket and weather information, and ensure traceability. In doing so, ICT fosters smallholders’ inclusion in supply chains (see “Smallholder Inclusion in Commercial Supply Chains” section). ICT increases access to inputs by enabling farmers to make more informed decisions about which inputs are most suit- able or offer the best value for money, when and where to obtain them, and how to use them. ICT can also ensure that subsidized inputs are correctly sold to the intended beneficiaries. (continued) The authors of the original module 9 were Grahame Dixie (World Bank), Vikas Choudhary (World Bank), Nithya Jayaraman (consultant), and Soham Sen (World Bank); the authors of the original module 10 were Soham Sen (World Bank) and Vikas Choudhary (World Bank). The reviewers of the current Module 9 were Vikas Choudhary (World Bank) and Judith Payne (USAID). I C T I N AG R I C U LT U RE 226 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T Case studies:  TruTrade in Uganda: Paying Smallholders a Fairer Share of Their Produce Value  E-Wallet Scheme in Nigeria: Using Mobile Phones to Increase Access to Subsidized Inputs  E-Krishok and Zero Cost In Bangladesh: Providing Extension and Advisory Services through Mobile Phones Smallholder Inclusion in Commercial Supply Chains Smallholders can raise their incomes by participating in commercial supply chains, but including small farmers entails significant challenges for both the agribusinesses and smallholders. For agribusinesses, interacting with a large group of smallholders implies high transaction and monitoring costs to ensure quality, safety, and timely delivery. For smallholders, participation can be risky, requiring access to inputs and training to satisfy stringent quality requirements. ICT can address this by facilitating exchanges and flows of information between parties all along the supply chain and can be used to manage transactions and arrange logistics. ICT-supported SCM software stores information on suppliers, enables customers to transmit orders to farmers in an efficient manner, monitors production, and tracks the movement of inputs and end products along the supply chain. ICT-supported SCM software also has an important role to play in eliminating unnecessary intermediaries from transac- tions and assisting farmers in their management of traceability schemes, quality assurance programs, and certification schemes such as Fairtrade, Rainforest Alliance, and others. Case studies:  Farmforce in Guatemala: SCM Tool Facilitates Sustainability Certification for Smallholders  Farmbook in Africa: Enabling Smallholders to Develop Business Plans and Locate Buyers More Effectively  Digital Green in Africa and Asia: Transforming Agricultural Extension Systems and Creating Routes to Market OVERVIEW production on satisfying consumers’ and buyers’ demands As data collection and the dissemination of easily digested and to develop skills in market servicing (the capacity to market data for agriculture become more feasible and wide- develop relationships with stakeholders in the next stage of spread, it has become increasingly clear that information is the value chain). power. Driven by the view that greater price transparency better empowers farmers to turn a profit, a number of initia- The Technology Is Changing tives aim to provide market price services. Government-run market information services have been Both public and private sector organizations are leveraging criticized in the past for providing information that is neither ICT solutions to build market intelligence, improve logistics, accurate nor timely and that has yielded little immediate and integrate smallholders into commercial supply chains. economic impact. Public market information systems collect, The primary role of government in promoting ICT for the analyze, and disseminate information, but their weakness immediate acquisition of the most updated information is to lies in price gathering, as public organizations have fewer focus on the overarching importance of maximizing mobile incentives for accuracy than private organizations. The major phone coverage while improving access to the technology criticism has been that public sector information does not for the rural poor. An equally important role for government reach farmers on time, if at all. is to support producers in using the technology to become more commercially astute and better attuned to changing Mobile phone applications are overcoming this problem. markets for agricultural products. Agricultural applications support logistics with graphical pre- sentations of available supplies and methods for traders to The overall aim is to strengthen farmers’ position in their upload price and supply information directly. They facilitate day-to-day trading and, over time, enable them to focus marketing by linking buyers and sellers. ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 227 Private companies increasingly sell subscription-based infor- situation is changing. Very often, farmers’ primary source of mation services and use price information as a means of information continues to be progressive farmers (figure 9.1 promoting other products to farmers—most notably, to sell presents an example from India). mobile phone services or agricultural inputs, such as fertilizer. These services generally rely on local-language text messages Farmers’ information priorities include accurate local weather to farmers’ phones. This information has been well received forecasts, technical information sequenced according to the by farming clients, with positive reports on its quality, accu- stage in the crop cycle, data on the costs of production, and racy, and timeliness and positive evaluations of its impact. market supply and price information. Toward the start of the harvest, these priorities shift toward market information. Generally, content consists of technical, marketing, weather, When a subscription-based agricultural information service costing, pest, and disease alerts as well as information on has been rolled out, farmers claim that the market news ser- government schemes. Short messaging service (SMS)– vice was the most valuable. based services are likely to cost considerably less than sending out mobile extension officers to visit farmers, and Through examples from India, Indonesia, and Uganda, text-based services are also likely to be more accessible than figure 9.2 illustrates how farmers’ information priorities Internet-based services. and sources of information can differ. For market infor- mation, these farmers rely less on the Internet but turn SMS will increasingly enable the two-way flow of informa- tion. The emergence of open source software is facilitating FIGURE 9.1. Percentage of Farmers in India Relying on the dissemination of targeted SMS messages on a large a Given Information Source scale. Agricultural initiatives are using this technology to Extension better control and improve their agricultural information dissemination. In particular, this new technology can help TV eliminate the recognized weaknesses in dissemination by Radio government-run market information services. Input suppliers Farmers’ Information Needs Are Evolving Progressive farmers Farmers’ information sources outside their immediate 0 2 4 6 8 10 12 14 16 18 network have not always been reliable, but with ICT this Source: Mittal, Gandhi, and Tripat 2010. FIGURE 9.2. Farmers’ Differing Information Priorities and Sources of Market Information in Indonesia, India, and Uganda Farmers’ priorities for information differ Farmers’ sources of market information Indonesia India Uganda Indonesia India Uganda Information on farm credit Family and friends and subsidies Farmer organizations Access to experts in real time Farmer supplier/vendor Information type Market/price information for commodities Other farmers Weather Information SMS/voice service Pest Information and remedy Internet Package of practices leading to certification Newspapers and others Package of practices TV 0 1 2 3 4 5 6 7 8 Radio Importance rank (out of 7) of 0 10 20 30 40 50 information type Percentage Source: Kumar, n.d. I C T I N AG R I C U LT U RE 228 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T to multiple other sources, including farmer organizations, prices can be lowered, it is also clear that traders who have other farmers, newspapers, radio, TV, and SMS and access to ICT and mobile phones can raise their margins. voice services. Overall however, according to studies, technical advice is Effects on Prices the most popular agricultural information service (provided Price is disseminated in many ways—chalked on notice via phone-in hotlines), followed by SMS-based technical and boards, broadcast by local radio stations, published in news- weather advice, with SMS-based market price services com- papers, texted on mobile phones, and (more recently) posted ing third. on websites and circulated via smartphones. The scale of the effect on farmers’ prices appears to depend on a number of factors, including: THE IMPACT OF ICT ON FARMERS ƒ The effectiveness of the informal market information Quantitative evidence is increasingly available on how mar- networks that already exist. ket information affects prices paid to farmers (table 9.1). The ƒ The stability of the price structure (for example, results are generally positive in terms of farmers’ income whether the government controls prices for a staple and prices. Although some evidence indicates that consumer crop or whether fixed-contract pricing is widely used). TABLE 9.1. Summary of ICT’s Impact on Farmers’ Prices and Incomes, Traders’ Margins, and Prices to Consumers LOCATION, PRODUCT, MEDIUM (STUDY AUTHORS) FARMER TRADER CONSUMER COMMENTS Uganda, maize, radio (Svensson and + 15% Increase in price paid to farmers considered to be due to farm- Yanagizawa 2009) ers’ improved bargaining power Peru, range of enterprises, public phones + 13% Increases in farm income, but higher for nonfarm enterprises (Chong, Galdo, and Torero 2005) India (West Bengal), potatoes, SMS + 19% Yet to be published, but showed information to be important (M. Torero, IFPRI, pers. comm.) both in the form of SMS and as a price ticker board in markets Philippines, range of crops, mobile phones + 11–17% Effect on income among commercial as opposed to subsistence (Labonne and Chase 2009) farmers, plus perceived increase in producers’ trust of traders India (Madhya Pradesh), soybeans, Web- + 1–5% Transfer of margin from traders to farmers, effect seen shortly based e-Choupal (Gayal 2008) (average: 1.6%) after e-Choupal established Sri Lanka, vegetables, SMS (Lokanathan + 23.4% Appreciable price advantage over control over time, plus ben- and de Silva, pers. comm.) efits such as increased interaction with traders and exploring alternative crop options India (Maharashtra), range of products, No significant In this one-year study, quantitative analysis did not show any SMS (Fafchamps and Minten n.d) effect overall price benefit, but this finding is thought to be due to sales in state by auction; price benefits of 9% were observed with farm-gate sales and younger farmers Morocco, range of crops, mobile phone + 21% Small sample showed usual behavioral changes; higher-value (llahiane 2007) enterprises took a more proactive approach to marketing via mobile phones India (Kerala), fisheries, mobile phones + 8% −4% Outlier in the sense that fish catches are highly variable and (Jensen 2007) fishermen have their own boat transportation Uganda, range of crops, SMS and radio Bananas + 36% Awareness of market conditions and prices offers more active (Ferris, Engoru, and Kagaozi 2008) Beans + 16.5% farmers opportunities for economic gain Maize + 17% Coffee + 19% Niger, grains, mobile phones (Aker 2008) + 29% −3 to −4.5% Traders increased margin by securing higher prices through greater capacity to search out better opportunities Ghana, traders, mobile phones (Egyir, + 36% Traders using mobile phones tended to sell at higher prices but Al-Hassan, and Abakah 2010) also tended to be larger-scale traders than nonusers Kenya wholesale traders, mobile phones + 57% Improved trader margin though combination of cheaper buying (Okello 2010) prices and higher sales prices Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 229 TABLE 9.2. Current and Future Roles of ICT in Agricultural Marketing FUNCTION DELIVERED BY ICT ENABLING OR DELIBERATE? TECHNOLOGY FUTURE Real-time market research Enabling infrastructure Fixed-line and mobile phones Extending range of mobile phones and ICT, facilitated by infrastructure investment and policies Coordination of logistics Enabling infrastructure Fixed-line and mobile phones Specialist applications, training/producer organizations Market information (price and Deliberate: Public and private sector Web-based and SMS Applications and public–private sector partnership, plus supply) training and organization Market intelligence Deliberate Web-based Applications and development of market intelligence services, plus training and organizations Inputs Enabling infrastructure Fixed-line and mobile phones Targets SMS messaged by private sector, e-vouchers for subsidies Source: Authors. ƒ How the product is sold. ICT may have a greater It can be argued that if the situation were left to resolve effect where negotiation is part of the sales process itself, the bulk of the benefits generated by these new and a lesser effect when sales are by auction. market opportunities would go to the larger-scale and ƒ The type of product being marketed. Circumstantial better-off farmers and to the trading sector. To redress evidence suggests that market information systems this imbalance, there may be a role for extension to alert have a greater effect on prices of higher-value, less farmers to new market opportunities, provide training on perishable products—such as onions, potatoes, and changing market conditions (especially experiential train- beans—and a lesser effect on prices of extremely ing), and transmit important market intelligence, especially perishable products, such as leaf salad. through the Internet. Input supply companies can use text messages to promote Delivery to Rural Areas their products and provide technical advice to farmers. In many countries, profits generated by mobile phone use Electronic voucher schemes offer potential for implement- in urban areas are set aside specifically for extending the ing subsidy programs that include the private sector and mobile phone network further into rural areas. In occasional enable more precise targeting of input supply programs to instances, technologies such as mobile phone amplifiers and the poor. transmitters, focused on marketplaces, can extend the dis- Table 9.2 summarizes the role of ICT in agricultural marketing, tance over which wireless signals travel and can encourage based on whether the ICT consists of enabling infrastructure additional agricultural trade to emerge. such as telephones or deliberate applications. Sharing the Benefits Although ICT appears to reduce transaction costs, in the past FUTURE TRENDS most of these cost savings accrued to traders who invested The use of ICT tools in ensuring market access for small- in mobile phones. Little analytical work has been done to holder farmers has grown and evolved rapidly over recent provide empirical evidence of these effects. These kinds of years, and this trend is forecast to continue. Future trends in studies are likely to be important for informing better invest- ICT will center on improving existing services and developing ment decisions on infrastructure, particularly at the nexus new capabilities focused on Internet access, smartphones, between investments in roads, markets, and communication social media, and data collection and integration for the user technology. by Internet of Things (IoTs)-type services. Given accelerating urbanization and the increasing empha- sis on food security, the development sector needs a bet- ter understanding of how to ensure that the reductions in Internet Access transaction costs that are possible along the agricultural Approximately two-thirds of the world’s population is offline. supply chain especially benefit those at both ends—the rural Access to high-speed Internet service can be limited in many producers and urban consumers. cities around the world, while access in rural areas can simply I C T I N AG R I C U LT U RE 230 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T be nonexistent. Internet access will expand over the coming farming, including the sales process through market connec- years, including through innovative services such as Google’s tions (Facebook 2016a). Project Loon and Facebook’s Free Basics (formerly internet.org). An underlying challenge of the Internet’s expansion will Project Loon is a research and development project aimed at be overcoming the digital divide, which carries the risk of providing Internet access to rural and remote areas through marginalizing groups that may not have equal access to the use of high-latitude balloons. By partnering with tele- services. Internet access is not universal, and as long as communications companies to share the cellular spectrum, restrictions on Internet service remain in place, investments Google has enabled people to connect to the balloon net- in rural infrastructure and addressing farmers’ constraints will work directly from their phones (Google 2016). require incentives offered by public stakeholders and will be addressed by both public and private actors. Since launching the project in in June 2013, Google has conducted a number of comprehensive tests in the Northern and Southern hemispheres. In May 2014, the project’s lat- Smartphones est long-term evolution high-speed wireless communication By complementing existing text messaging and phone call (LTE) radio technology was tested at Linoca Gayoso, a rural services with Internet access, smartphones have the poten- school in Brazil that had never before enjoyed Internet access. tial to be a truly disruptive technology in increasing market Challenges remain over the length of time the balloons can access for smallholder farmers. Estimates of smartphone stay afloat, but Google is committed to launching 300–400 use around the world vary widely, however, and can be more balloons over the coming years (Google 2016). In the medium difficult to obtain for rural areas than for urban areas. term, farmers in Sri Lanka will be able to access this Google service. Google signed an agreement with the national ICT Forecasts of smartphone use can be equally problematic. Agency in July 2015, and in February 2016 the Government According to eMarketer, Latin America is home to 155.9 million of Sri Lanka announced that it will take a 25 percent stake smartphone users, and this number is forecast to grow to 245.6 in a joint venture with Project Loon to provide high-speed million users by 2019. In 2015 an estimated 84 percent of these Internet service across the country (Guardian 2016). users came from just six countries; Argentina, Brazil, Chile, Colombia, Mexico, and Peru (eMarketer 2015). In Bangladesh, Facebook’s Free Basics service also aims to provide high- smartphones accounted for 6 percent of total handset shipments speed Internet service to areas that until recently have in 2013. However, the mobile Internet reached 20 percent pen- remained difficult to reach. By partnering with the world’s etration through 2G networks. The 3G Internet is expected to leading telecommunications companies, Facebook aims to outpace 2G by 2020 (GSMA Intelligence 2014). make Internet access more affordable. Simple, quick-to-load websites are available on the platform via smartphones for In North Africa and Sub-Saharan Africa, smartphone penetra- free without data charges. Launched in August 2013, it is tion reached approximately 20 percent of the population by now available in 36 countries and has reached 19 million 2013, according to the United States Agency for International people who otherwise would not have had access to the Development (USAID). By 2017, it is expected to exceed 50 Internet (Facebook 2016b). In 2015 and early 2016, this ini- percent in South Africa, 29 percent in Nigeria, and 28 percent tiative came under strong opposition, particularly in India, in Kenya (USAID 2013). from some groups over Net neutrality issues. As reported by Forbes and other media outlets, this may have implica- Smartphones can drive further innovation in market access tions for how Free Basics is rolled out in other countries and through real-time information but also through application regions in the future (Forbes 2016). interfaces driven by video and sound. Smartphones turn a surface into a screen, and over time farmers will increas- As an extension of its Free Basics program, Facebook ingly absorb content through video. This trend is illustrated has awarded a number of Innovation Challenge Awards to by the growth of Access Agriculture and Digital Green, two projects in India that have played a role in connecting and nonprofit organizations that host videos on a digital plat- providing added value to communities through ICT. Farming form to improve the lives of farmers across South America, has been identified as a key category, and in October 2015, South Asia, and Sub-Saharan Africa. US$250,000 was awarded to eKutir, an Internet program accessible by computer or smartphone. eKutir provides Launched in 2008, Digital Green enables extension agents and farmers with tools and resources to support all aspects of peer farmers to upload videos online to share knowledge on ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 231 improved agricultural practices, livelihoods and market trends. data collection methods by sensors and crowdsourcing, com- As of March 2016, in India the organization had reached over bined with processing platforms called IoTs, are transforming 1 million individuals across over 12,000 villages through 4,360 agriculture.1 Today, farmers in developed countries use IoTs videos, which showcase and demonstrate best practices to remotely monitor sensors that can detect soil moisture (Digital Green 2016a). According to a controlled evaluation by and follow the growth of their crops. They can also remotely Digital Green, this approach led to an uptake of new practices manage and control crop management and irrigation equip- that was 7 times higher compared to traditional extension ser- ment, and utilize artificial intelligence to make sense of the vices and 10 times more cost-effective (Digital Green 2016b). data to guide their management actions on the farm and in Digital Green is addressed in more detail in the “Smallholder the market.2 Adoption and development of IoT applications Inclusion in Commercial Supply Chains” section. in international agriculture are also emerging and expanding. Some examples include connected micro-weather stations for localized weather data and provision of crop insurance Social Media (Kenya); low-cost, mobile-controlled micro irrigation pumps The power of social media is still being discovered with (India); soil-monitoring sensors to improve tea production every new global event, news cycle, and digital start-up. (Sri Lanka, Rwanda); and radio-frequency identification Ultimately, through platforms such as Facebook, Twitter, (RFID)-based food supply testing and tracking systems (India) WhatsApp, and LinkedIn, social media empowers individuals and RFID-based livestock tracking, theft prevention, and to connect to one another, collaborate, and share. For small- vaccination records (Botswana, Senegal, and Namibia) (ITU holder farmers, it can facilitate new connections, strengthen and CISCO 2016). networks, and disseminate information on markets, inputs, logistics, and supply chain stakeholders. All of these factors create a grassroots enabling environment for smallholders to KEY MESSAGES negotiate better prices for their produce, find new custom- ers, and make informed decisions. Farmers use mobile phones to build a network of contacts and draw on this wider expertise to obtain critical informa- USAID highlights a case in Maharashtra State in west-central tion more rapidly. Essentially, the mobile phone, its special India, where farmers used Facebook to discuss prices and plan applications, and the Internet are becoming management a joint market strategy. In 2012, these turmeric farmers had tools for farmers, especially in relation to market intelligence. overproduced their crop and turmeric prices were crashing. Greater access to information has proven to help farmers Farmers contacted one another across the country through make better decisions about transportation and logistics, Facebook Messenger to plan a reduction in supply over a price and location, supply and demand, diversification of number of days (USAID 2013). Initially, 35 farmers agreed their product base, and access to inputs. ICT also facilitates to boycott the local auction in Sangli District. Within days, market research, increasingly using live information. thousands of farmers withheld their produce. Their protest— By improving SCM, ICT improves logistics and reduce trans- which would traditionally have taken months to organize— action costs. ICT can foster smallholders’ inclusion through was finalized within 10 days. When farmers returned to the these logistical improvements by reducing costs of coordi- auctions, turmeric prices had doubled, from Rs 4 to Rs 8 per nation, increasing transparency in decision making between kilogram (Economic Times 2012). As the Internet becomes partners, reducing transaction costs, disseminating market more accessible, these trends will continue to grow in rural and weather information, and ensuring traceability. ICT also areas, particularly among younger users. facilitates exchanges and flows of information between parties all along the supply chain and can be used to man- Data Collection and Integration by IoTs age transactions, arrange logistics, and ensure that quality With increased integration of devices such as smartphones, specifications are clearly understood. The IoT is fast finding computers, and tablets, access to information will become its way to support agriculture, from field monitoring to pro- even easier. This cross-screen trend has implications for con- cessing and marketing, and is a trend to follow and adopt tent delivery, advertising, and analytics. Increasingly, the net- where feasible. work upon which the information lies becomes more relevant than the device being used. The integration of printers and 1 For an overview of the IoT in agriculture, visit http://www.link scales with mobile devices is also streamlining the business -labs.com/iot-agriculture/. of smallholder farming. Recent development of a range of 2 https://www.thingworx.com/platforms// I C T I N AG R I C U LT U RE 232 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T With the development of Internet access in rural areas, ICT market. As this kind of information tends to change rapidly, will continue to evolve to incorporate smartphone interfaces its timeliness and accuracy are of great importance. and social media. However, with this advancement, ICT pro- viders will need to overcome the challenges of any potential Longer-term market information changes slowly and informs digital divide. ICT programs will no longer be restricted to decisions such as which product to produce, which market- text messaging, phone lines, or websites but will be inte- ing channel to use, and other strategic decisions aimed at grated across all platforms, reaching all smallholders any- maximizing profits. To be made well, these kinds of deci- time, anywhere. sions require an understanding of a wide range of factors, such as competing suppliers, product specifications, market No single digital platform for market access has yet to out- trends, and other issues for specific products. Generally perform all others, so no single model can be used going these decisions also build on the aggregate knowledge cre- forward. Many different organizations across the world are ated through the acquisition of short-term market informa- developing programs to assist farmers, with varying objec- tion over a period of time. tives and results. Diversity in these programs is likely to con- tinue to yield positive outcomes under each specific scenario. The key development challenge lies in assembling and dis- It is important to emphasize, however, that ICT applications seminating this information in a timely manner, not just are tools and not solutions. All stakeholders along the value to traders or larger-scale farmers but also to smallholders chain, both public and private, have a role to play in maxi- so that they can make more sensible management decisions mizing the potential for ICT to disseminate knowledge and and increase their opportunities. empower smallholders. The type of product-based information that farming stake- By all indications, the mobile phone is the most powerful holders generally require includes: marketing tool available to farmers and traders. The studies ƒ A general overview of the market. What is the mar- reviewed throughout this module indicate the phone’s poten- ket’s size, value, and growth rate? What are the divisions tial for reducing asymmetries of information between traders between sectors? Who are the competing suppliers? and producers, lowering transaction costs, and enhancing ƒ Product specifications. What are the prevailing grad- farmers’ ability to fine-tune their production strategies to ing and packing standards and consumer and market match the accelerating rates of change in consumer demand preferences (taste, color, size)? and marketing channels. The phone’s potential is still being dis- ƒ Marketing issues. What are the typical prices and covered, and the scale of its impact is still being understood. seasonal price patterns, quality premiums, and marketing channels? What is the prognosis for future prices and changes occurring in the supply chains for MOBILE PHONES FOR MARKET INTELLIGENCE the market? Trends and Issues ƒ Key contacts. What are the names, addresses, and Multiple and complex dynamics operate around market telephone numbers of key contacts, particularly buy- demand. Consumer demand fluctuates constantly as mar- ers, agribusinesses, and traders but also specialist keting channels continuously evolve, to name just two such input suppliers and transportation operators? dynamics. To become adept at pairing production with oppor- tunities, farmers and others along the value chain need to Challenges Faced by Smallholders become better at both acquiring market information that is Although the situation differs by product, in most situations immediately useful and obtaining longer-term knowledge market information for smallholders has proven to be frag- related to markets. mented, anecdotal, outdated, inconsistent, and incomplete. For example, markets for staple cereals, which are often The Need for Market Information subject to price controls, move relatively slowly. Information Immediate market information is needed to gain a bet- about these markets is more widely known. For products that ter understanding of short-term fluctuations in pricing and are more perishable or for which consumer demand is shift- demand, thus enabling the sale of existing crop and livestock ing, the market situation is far more opaque. products in ways that maximize their profitability. Most often, short-term information helps in price negotiation, but In terms of balance of power in negotiations, smallholder it can also influence the timing of sales and selection of the farmers are mainly at a considerable disadvantage in the ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 233 day-to-day marketing of their products. Often, market infor- Greater access to information and buyers steadily adds to farm- mation will come from a neighboring farmer who may have ers’ market knowledge and gives them greater confidence to visited a market on the previous day. A trader’s core skill is to diversify products. The additional knowledge translates into a read the market, assess supply and demand, and compute more accurate understanding of demand and an enhanced ability how these factors might affect price. Increasingly, traders to control production and manage supply chains. will triangulate their information with information from oth- ers. Given the opportunity, traders may exploit farmers’ rela- Farmer Networks. Farmers build up a network of contacts tive ignorance to buy low and, ideally, sell high. Case studies and draw on this wider experience and expertise to obtain have shown that the power balance in these negotiations critical information more rapidly. With phones, farmers deal is altogether different when the trader senses that that the directly with wholesalers or larger-scale intermediaries rather farmer-interlocutor also appreciates the real market situation than small-scale intermediaries. Farmers who own mobile and can access different markets, buyers, and outlets. phones have also proven able to develop a broader network of contacts than their peers who do not own them. Figure 9.3 provides a sense of the package of information that farmers need with respect to immediate information and Studies have shown that in Malaysia, for example, long-term market intelligence and displays the likely sources mobile phone use was linked to increased profits among of that information. younger owner/managers of farms and smaller agribusi- nesses. A survey of 134 younger agricultural-based entre- Role of ICT preneurs asked for their perceptions of the impact of mobile phones on their businesses. The two overarching benefits A growing body of knowledge indicates that phones, tab- they reported were that they could draw upon a wider net- lets, TV and radio, mobile phones, and increasingly smart- work of people for information (a “wisdom of crowds” effect), phones have a positive impact on agricultural income. This and they could obtain information at a greatly increased technology gives users the ability to tap into a wider range speed (Shaffril et al. 2009). Other benefits—such as market of knowledge and information than they could access previ- information, time savings, and technology—were of a lower ously. Research is emerging on just how much farmers are order. The overall impact was an increase in profits from their starting to use mobile phones to assist in marketing their businesses, especially after the entrepreneurs had used their production. Work in Bangladesh, China, India, and Vietnam mobile phones for more than two years. showed that about 80 percent of farmers now own mobile phones (Minten, Reardon, and Chen n.d.). Mobile phones Price and Location. An ability to compare prices increases are used to speak to multiple traders to establish prices and farmers’ power to negotiate with traders (as discussed below). market demand, and more than half of smallholder farmers It also enhances farmers’ ability to change the time and place concluded selling arrangements and prices on the phone. of marketing to capture a better price. Figure 9.4 shows how market information can significantly affect farming profits. Profitability is highly affected by FIGURE 9.3. Commercial Farmers’ Information Needs and Sources prices, largely because any change in price has little or no effect on Commercial farmers require a package of information costs, so the effects are directly on the bottom line. An inability to (Mobile phone / SMS) Short-term information Longer-term information (Web based) find buyers for products naturally has a profound effect on profits. Real-time market research Alternative enterprises/options By accumulating market knowl- edge, however, producers gain an Market prices Price patterns opportunity to identify and diversify Market supply/demand Demand trends into alternative and more profitable Product specifications Accurate local weather forecasts products. Production blueprints Timely and specific technical advice Databases of buyers, Cost of production data suppliers, and transporters The main goal of increasing Sources of inputs access to market information is to Source: Authors. empower farmers to take greater I C T I N AG R I C U LT U RE 234 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T FIGURE 9.4. Market Information Affects Farmers’ Profits 70,000 Net return Marketing costs Production costs 60,000 +64% Indicative cost (Rs) 50,000 +10% +29% 23,000 40,000 15,400 18,000 14,000 –64% 30,000 5,000 20,000 10,000 0 Base scenario 10% yield 10% price –30% sold Alternative increases increases enterprise Source: Authors. control of marketing their produce and orienting their produc- markets to capture better prices coordinated with local tion to identified market opportunities. In essence, the ability truckers to improve product transportation. A particularly to conduct market research—to gather both short- and long- important change was that they used their new knowledge term information—will increasingly become part of the mix of to become more market oriented in their production, moved farming skills. away from producing low-value crops, and diversified into higher-value enterprises. The knowledge gained from using One of the most influential studies of the impact of mobile the mobile phone reduced the perceived levels of risk and phones was carried out by Jensen (2007), who tracked effects helped them target their production to specific, identified on the fisheries subsector as mobile phone coverage was market opportunities. extended along the coast of Kerala, South India. The results were dramatic. Because farmers could identify the best Svensson and Yanagizawa (2009) assessed how prices paid markets for selling their catch, price volatility was reduced, to farmers were influenced by market information collected wastage was significantly lower, fishermen achieved higher by the Market Information Service Project and disseminated average prices, and consumer prices fell. through local FM radio. The information was broadcast through daily bulletins of 2–4 minutes and a longer weekly Studies in Niger have found that mobile phones bring bet- program that provided district market prices. ter price integration, improve profits for traders, and reduce consumer prices. Aker (2008) found that mobile phones Having access to a radio was associated with a 15 percent reduced search costs by 50 percent compared with personal higher farm-gate price. Where market information was not travel. Traders’ profits increased by 29 percent—not because disseminated through the radio, there was no effect. The they traded more products but because they obtained bet- results suggest that reducing the information asymmetries ter prices through real-time market research conducted via between farmers and other intermediaries increased farm- mobile phone. Mobile phones were also associated with a ers’ bargaining power. 3.5 percent reduction in average consumer grain prices. One of India’s leading private companies, ITC, has annual A survey of a small sample of farmers in Morocco found revenues of US$7 billion and 29,000 employees. It is active that mobile phone use resulted in a 21 percent increase in in fast-moving consumer goods, hotels, paper and packag- income (Ilahiane 2007). An even more relevant finding was ing, agribusiness, and information technology. Through its that the technology changed farmers’ behavior; increasingly, e-Choupal program, it has established Internet access kiosks they spoke directly with wholesalers or larger-scale interme- across rural India to both enable farmers to retrieve market diaries rather than smaller intermediaries. Farmers switched information and to serve as a sales channel for its products. ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 235 Launched in 2000, the kiosks operate in 40,000 Indian vil- Farmers reported feeling increased trust in their trading part- lages and reach approximately 4 million farmers. These ners after they had gained access to mobile phones. kiosks are hubs where farmers can obtain price information, seek options for selling their produce, buy inputs, and obtain Research on tomato farmers’ negotiations with rural traders advice on farming practices related to input use. This service is in Ethiopia showed that, on average, farmers’ initial ask- free of charge; ITC earns revenues through commodity trans- ing price was about three times higher than the final price actions at the kiosks and through advertising other goods via they obtained from buyers (Jaleta and Gardebroek 2007). the kiosks such as agricultural inputs. Ultimately, ITC expects Yet when farmers had market price information—typically half of its revenue to come from input sales through its Web- obtained by a mobile phone call to acquaintances close to enabled e-Choupal network. the central market—the difference between their initial ask- ing price and the final price was reduced by 16.5 percent. In addition to the kiosks, ITC also offers information services In other words, market information increased farmers’ bar- to farmers via mobile phone, thus deepening its relationship gaining power by one-sixth. with the farmer and enabling them to make more informed decisions (Kumar n.d.). Table 9.3 demonstrates the impact of Goyal (2008) compared farmer prices in the regulated market the e-Choupal service on farmers’ yields and costs. (mandi ) for soybeans in two areas of Madhya Pradesh, India. In some areas, 1,600 e-Choupals Internet kiosks operated Negotiations. Research on negotiation approaches indicates by the aforementioned agribusiness company ITC dissemi- that it is important to obtain as much information as possible nated price information, whereas the other areas relied only prior to a potential transaction. This information should include on the mandi for such information. Goyal found that farmers the trading patterns, goals, and preferences of those that obtained better prices when they had access to a wider range one is negotiating with. Groups provided with more informa- of market information. Farmers’ price increases ranged from tion in advance achieved more effective and efficient outcomes 1 percent to 5 percent, with an average of 1.6 percent. The as well as higher levels of satisfaction with the negotiation. additional farm income from soybeans in Madhya Pradesh TABLE 9.3. Agricultural Interventions Made through e-Choupal Kiosks and Their Effects TYPE OF AGRICULTURAL TECHNOLOGY OR PRACTICE BEFORE E-CHOUPAL: 2000 E-CHOUPAL INTERVENTION EFFECTS Seed use per unit area For soybeans, farmers used a high plant- Farmers advised to use a lower planting Savings: 10 kg seeds/acre (Rs 200 / ing density (45–50 kg seeds/acre) density (30–35 kg seeds/acre) acre) Seed of verified quality Farmers’ limited awareness of benefits The e-Choupal demonstrated the benefits Yield increase and self-sufficiency in of certified and foundation seeds led to of foundation and certified seeds through seeds (for self-fertilizing, nonhybrid limited use of such seeds its agricultural extension program (Choupal crops) Pradarshan Khet) Seed treatment Low awareness of benefits of seed The e-Choupal spread awareness about ben- Germination percentage and yields treatment efits of seed treatment and provided treated increased significantly seeds to some farmers New varieties and improved Farmers used varieties inappropriate The e-Choupal suggested new varieties suit- Most suitable variety planted on time, timing of planting for local conditions (climate, pest, and able for adverse conditions and advised farm- leading to higher yields disease incidence and timing of rainfall) ers how to better align planting with rainfall Weed and other pest Farmers controlled weeds by hand; for The e-Choupal suggested use of herbicides Effective weed and pest control leading management pest control, they were largely guided by and/or pesticides in specific circumstances to low loss of yield local input dealers Soil testing No awareness of soil testing and conse- The a-Choupal propagated the practice of Reduced fertilizer costs and more appro- guent benefits replenishing soil nutrients based on soil priate nutrients applied testing reports Storage practices and market Low awareness of hygienic practices for The e-Choupal advised storage of grain Reduced losses from poor storage linkages stored crops; limited opportunities to sell based on moisture content to avoid loss and practices as well as better earnings from products contamination; it offered farmers alternate the sale of output opportunities to sell their products Source: ITC Ltd 2010. I C T I N AG R I C U LT U RE 236 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T was estimated at about US$10–20 million per year. This Figure 9.5 illustrates where the effects of ICTs on agricultural income was almost certainly a transfer from traders to pro- marketing occur along the links in value chains, thus indicat- ducers as a result of producers’ greater market knowledge ing the information required and the technology involved. The and improved strength in negotiation. figure has two key messages. First, ICT potentially has an impact on the management of every step in the production Increasingly, ICT is being used to integrate markets and bring marketing chain, from planning to sales. Second, almost all of in more transparency and opportunities. This provides many these functions are likely to be carried out by mobile phone. opportunities for empowering the negotiation position of Other potential services (for example, market price information, smallholder farmers. The Government of Karnataka (India), market intelligence, and specific phone-based applications) for example, has been implementing electronic markets largely perform support and secondary functions that make (e-mandi) for the past many years. This has been found to farmers’ mobile phones more useful. improve marketing efficiency through competitive and trans- parent bidding mechanisms and by minimizing manipulations in trading practices (Athawale 2014). Now this approach is Lessons Learned being scaled at national level by the Government of India, Experience in using ICT devices to improve access to market which plans to integrate 585 wholesale markets through a information reveals that they contribute to: common electronic platform (The Hindu 2015). ƒ Broader and deeper networks. Farmers commu- nicate by phone with traders and farmers outside of Supply and Demand. Farmers gain greater control over their immediate geography, as opposed to making a their production and product sales by finding new sources of physical trip. The ability to communicate more easily demand, improving their ability to adjust supply and quality and to triangulate information creates deeper trust in to market conditions, and learning about quality, grades, and key trading relationships. product presentation. ƒ More sophisticated marketing plans based on Over the longer term, a better understanding of market price information. Farmers can modify the date of demand and consumer trends helps farmers diversify into marketing, product permitting, or switch to alternate higher-value crops and capture greater value. Farmers can also markets, transportation and regulation permitting. make more informed decisions about which inputs are better Producers also use market information to decide or cheaper to buy and when and where to best obtain them. when to harvest produce or, if possible, where to store it until they can sell it at higher prices. Transportation and Logistics. Farmers can organize and ƒ Improved negotiation power. Farmers increase their coordinate among themselves and (larger-scale) truckers power to negotiate, particularly with traders, based on to consolidate volume and leverage economies of scale. their ability to understand pricing in multiple markets, Greater coordination also occurs around the timing of aggre- to cut out intermediaries, and to sell directly to larger- gation, collection, and volumes. Larger volumes lower costs scale buyers. and enable farmers to realize higher prices. ƒ Informed use of inputs. Farmers improve their capacity to raise yields through better use of inputs Increased Uptake of ICT and/or use of better inputs. They can identify sources Evidence indicates that farmers increasingly use mobile of inputs, obtain them more cheaply, and are better phones for real-time market research. In Bangladesh, for able to buy and apply them at the optimal times. example, about 80 percent of farmers now have mobile ƒ Future production and marketing choices. Aside phones; of these, two-thirds have owned mobile phones from increasing their profits and competitiveness for three to five years (Minten, Reardon, and Chen n.d.). through immediately useful information related to About 70 percent of rice growers and 30 percent of potato prices, markets, and logistics, farmers also require growers contact multiple traders by phone to explore selling information about market changes that may influ- opportunities and prices, and about 60 percent will agree ence their production and marketing choices over on the details of the trading deal over the phone. In parallel the longer term. with mobile phone growth, smartphone penetration is also ƒ Reduced logistics and transportation costs. growing in Bangladesh and other regions (as discussed in Farmers obtain the latest information with a phone the overview). call instead of making a long trip to a market. ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 237 FIGURE 9.5. ICT Input for Marketing along the Agricultural Value Chain Harvesting, primary Transportation and Sales and Production processing, and logistics marketing storage Harvesting dates Arranging the Pre- affected by Establish supply, production aggregation of market prices; product and demand, and decisions grades adjusted prices based on consolidation of on basis of market loads accumulated information market knowledge and Storage decisions based Real-time market intelligence Seeking lower-cost tran- Access to inputs on market knowledge and sportation and improved research and access and costs of arrangements negotiation storage Motivated by Real-time Mainly Organized Real-time market visits, Mainly phone market facilitated by by cell market phone contact, Mainly real- research on cell phones, phone, with research Mainly conversations, increasing SMS- time cell phones some cell some by phone, cell-phone- sometimes based input market with some phone apps assistance supported based supported by advice and research on support being from Web- by SMS and conver- Web-based promotion, plus cell phones through developed to based Web-based sations market e-vouchers for Web-based support the market market intelligence subsidies market processes intelligence price intelligence services Source: Authors. They can coordinate with other local farmers to use for gathering the price and market information that they one large truck rather than several smaller ones to need. As ICT services improve, resources become available, deliver their products. infrastructure expands, and technological learning becomes ƒ Innovative partnerships. Partnerships are facilitated more widespread. In the future, smartphones might make and built among groups of producers, or by virtue of Internet-based dissemination more effective, especially for direct communication with corporations and trad- interventions that seek to expand market intelligence. ers, or through the ability to supply product based The private companies that have emerged in recent years to on just-in-time and/or quality needs. deliver market information take a proactive approach to under- ƒ Improved farm business management. Farmers standing potential customers’ information needs, and they can become better managers through better infor- build feedback loops to learn how their services can be better mation about which inputs to use, new knowledge attuned to demand and more responsive to complaints. They about grades and standards for produce, and use their own enumerators, whose employment depends increased interaction with corporations, traders, on the accuracy of their price reporting. Generally, their and other farmers. customers—mostly younger, more literate, and larger-scale Debate among practitioners centers on the relevance of the farmers—have reacted positively. public and private sectors’ roles in market information ser- vices and how public-private partnerships can offer the best Principles and Guidelines for Potential Interventions way forward. Some take the view that if telephone infra- Based on the accumulating evidence, experience, and les- structure is provided, stakeholders will find a way to use ICT sons learned, a number of principles and guidelines are I C T I N AG R I C U LT U RE 238 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T important to consider when using ICT to develop market ƒ Lower the cost of SMS. Clearly, there are important intelligence: opportunities for enhancing the range, scale, and ƒ Market intelligence is one of the building blocks impact of information dissemination by working with for stronger knowledge of the changing landscape the regulator to reduce prices for bulk messaging to of agricultural production. producers. Development institutions need to be able ƒ Market information on prices, supplies, and to benchmark costs to strengthen negotiations when demand can positively affect prices paid to farmers, proposing the development of public good, SMS- but only if it is done well. Farmers need a package based information services. of information that evolves as their priorities change ƒ Invest in farmer education and extension training. throughout the agricultural season. This information Helping smallholders to understand needs for grading, package can encompass weather forecasts, techni- organization, coordination, and market opportunities cal advice, market prices, pest and disease alerts, is critical to success. Marketing education, especially and messages about schemes and support from the experiential marketing training, can be an important appropriate line departments. Market information on element in leveraging the benefits that ICT can bring its own is not enough to make farmers both more to farmers’ prices and returns. productive and more profitable, however. An inte- grated approach to information generation and delivery Case Study: Esoko in Ghana—Market Information Tool is required. Increases Price and Builds Inter-Village Networks ƒ Both the government and private sector are hav- Esoko, a private company founded in Ghana in 2004, provides ing difficulty in delivering ICT-based information information and communication services for agricultural mar- in a sustainable, effective way. Public-private kets in Africa. Now operating in 8 countries and employing partnerships offer a way forward. New open source over 200 people, it has played a role in the explosive growth technology is making it possible for government of cellular services across the continent. It has grown to institutions to provide far more targeted information, be the leading initiative in delivering market information to primarily by sending local-language SMS messages farmers across Africa, and it is an example of how Ghanaian or voice messages directly to farmers’ phones and software developers can build world-class technology that is by allowing feedback from the field. The technology used throughout the continent (Esoko 2015). helps overcome the major criticism that government information systems do not reach their clients. Esoko uses a simple text messaging system and website to bridge the information gap being faced by smallholder Open source systems can become the foundation of an farmers. This platform provides three services: current local ICT-mediated extension service that alerts clients to pest market prices; a matchmaking platform that connects buy- and disease problems, other information vital for production, ers and sellers; and information including weather forecasts, and opportunities to participate in new government schemes. news, and tips for farmers. These services enable farmers The potential for generating income to cover operating costs to make informed decisions that can increase their income. would be significantly increased if the government would use its resources to build an accurate and useful database of its By driving this social and economic impact in rural commu- farming clients, with their mobile phone numbers and farm- nities through the use of mobile phone technology, Esoko ing characteristics, and leverage a very substantial reduction has succeeded in increasing farmers’ incomes by about in the cost of SMS messages. 10 percent per year. Now, 6,000 farmers in 16 countries in Africa use the platform (Hildebrandt et al. 2015). According The extension service will have the very real possibility of sell- to a 2015 study by New York University (NYU) on the impact ing SMS broadcasting services to clients supporting the farm- of market information tools, farmers in Ghana using Esoko ing sector, such as banking institutions (to send messages, were able to increase their income by 9 percent per year technical and price information, and loan repayment reminders (Hildebrandt et al. 2015). to borrowers) or input suppliers (to promote products, remind farmers to buy inputs, and respond to pest, disease, and plant/ For this 2015 study, researchers conducted a randomized field animal nutrition issues). Sales of such services, along with the experiment to examine how market price information shared collection of price data, may best be done by the private sec- via text messages to mobile phones affected smallholder tor or suitably incentivized individuals. farmers. As in other parts of Sub-Saharan Africa, a majority ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 239 of Ghanaian farmers are smallholders who depend on traders experienced higher prices. This spillover probably is the result to market their production. In each agricultural season, the of two factors. First, farmers tend to share market prices with typical farmer in this study sells, on average, to three to five one another, demonstrating the importance of farmer net- different traders. About half of these traders are individuals works built up locally and via mobile phone. Second, traders with whom farmers have a long-standing relationship. apparently did not know which farmers had access to market information and which did not, therefore shifting the power It is common in the region for transactions between farm- balance in negotiations. Many traders began offering the ers and traders to take place at the farm gate or in the local higher price once they encountered farmers who had access area, to be conducted in an informal manner, and to involve to that information (Hildebrandt et al. 2015); see image 9.1. bargaining between the parties. As described earlier in this module, farmers often complain of unfair practice by traders, and this is also the case in Ghana; smallholders believe trad- Case Study: mFarming in Tanzania—Mobile ers cheat them by citing prices that are lower than the actual Phone Service Increases Smallholder Access to urban prices. Farmers cannot verify this and are at a disadvan- Market Information tage in negotiations (Hildebrandt et al. 2015). Poor transportation and communication infrastructure means that smallholder farmers in Tanzania, a large and fairly sparsely As mentioned above, this NYU study found that by simply populated country, struggle to access vital agricultural market having access to market information, farmers were able to information and training. Finnish mobile-service company increase their income by 9 percent. For a typical yam farmer in Sibesonke was established in 2009 and aims to offer a Ghana, the resulting increase in annual household income was cost-effective and scalable mobile service to address these approximately US$170. The direct return on investment for this challenges. service was in excess of 200 percent (Hildebrandt et al. 2015). Sibesonke launched its mFarming Service to empower Researchers also found a spillover effect, in which nearby farmers to receive real-time weather forecasts and crop farmers without direct access to Esoko information also and livestock management tips, including advice on topics such as pests and disease treat- IMAGE 9.1. Market Information Tools Used by Smallholder Farmers ment. This information presents a. Mobile and computer screen views of Esoko smallholder farmers in Tanzania with an unprecedented opportunity to increase their yields and improve farming practices. In March 2013 Sibesonke announced a partnership with the Tanzanian Ministry of Agriculture, Food Security, and Cooperatives, and the Ministry of Livestock and Fisheries Development to empower both b. Close-up of data fields for a commodity ministries to better reach the 33 mil- lion Tanzanian farmers with relevant, up-to-date farming content on mobile phones (Finnpartnership 2013). The mFarming service allows farmers to buy and sell crops and livestock, receive crop and live- stock management tips, and obtain weather forecasts. Farmers on the network Vodacom can access the mFarming service by dialing *149*50# on their mobile phones. I C T I N AG R I C U LT U RE 240 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T By 2013 over 600 smallholder farmers benefited from this farmers higher incomes and more stable demand but required initiative. The mFarming website has an interesting moni- farmers to make significant improvements in product quality, toring tool for their customer activity on a given day, which quantity, and business management (Kaganzi et al. 2008). indicates rapid uptake of the service across the country with most customers in the North (http://mfarming.sibesonke. To ensure direct communication between all stakehold- com/). ers under this agreement, the chairman of the Nyabyumba Farmers’ Group purchased a mobile phone to maintain regu- lar contact with Nandos as well as other members of the IMPROVING LOGISTICS AND ACCESS TO INPUTS cooperative. The phone facilitated collection, delivery, and the fine-tuning of harvesting and dispatch to match demand Trends and Issues in Kampala. Field observations show that in many places ICT devices, par- ticularly mobile phones, are transforming how rural logistics To meet these conditions and engage with this higher-value function. The resulting improvement in logistics can be seen market over the long term, farmers needed to become more through lower transaction costs and less wastage. Mobile organized and strengthen their partnerships with service phones enable market agents to better coordinate product sup- providers. The key challenges were to ensure that farm- ply and demand, strengthen existing trade networks, facilitate ers could consistently produce potatoes to these standards the assembly of products to reach a critical mass, and enable and communicate directly with their client. Farmers’ lack of products to be delivered cost-effectively to new markets. grading knowledge and initial inability to produce potatoes that met Nandos’ quality standards caused 80 percent of Logistics their production to be rejected. Training reduced the rejec- Despite these positive effects, other factors can still limit tion level to less than 10 percent in less than a year. increased supply chain efficiency, such as geographic Access to Inputs position, limited access to transportation and credit, and poor access to inputs. An ICT-enabled logistics system can Farmers’ yields may not approach the highest potential yields help in: for a variety of reasons; poor climate or weather may play a part, along with other factors such as socioeconomic status, ƒ Collection, by setting out well-organized physical infrastructure, institutional and government policies, collection routes. or poor access to farming technology or finance. If farmers ƒ Aggregation, by assembling markets with sufficient narrow the gap between their yields and potential yields, they critical mass to attract large-scale traders. Traders use can improve productivity and profits; but to do so, they require the quantity and variety of products and the mobile accurate information on agricultural inputs, technology, work- phone network to conduct real-time research and ing capital, and how to obtain them. Much of the yield gap identify arbitrage and market opportunities for the is related to problems in accessing inputs. For example, products they buy directly in rural areas. farmers can be unsure when inputs are available, particularly ƒ Delivery, by coordinating directly with other farmers when the government distributes subsidized inputs. or truckers to organize times, dates, volumes, and so forth. The literature on ICT’s impact on rural logistics Questions remain about how ICT can help to facilitate access, largely focuses on data obtained from user surveys although some answers may be emerging from efforts such and case studies. Less research has been done to as the e-Choupal kiosks mentioned in this module. In a study assess the direct impact of mobile phones on reduc- in India, farmers’ search for inputs—particularly seeds, fertil- ing transaction costs related to agriculture. Perhaps izer, and plant protection chemicals—was listed high among the reason is because logistics are regarded as an their reasons for using mobile phones. Farmers highlighted infrastructural issue, so its synergies with ICT are difficulties in sourcing inputs such as fertilizer, seeds, and not often considered. agrochemicals for plant protection twice as frequently as their next key problem, lack of irrigation. They especially For example, mobile phones proved very effective for the wanted information to distinguish genuine products from Nyabyumba Farmers’ Group in Uganda, which reached an counterfeits. agreement in 2007 to supply Nandos, a multinational fast-food restaurant in in Kampala, with graded ware potatoes at a fixed Even if they know where to buy inputs, farmers cannot always price throughout the year. Supplying these outlets offered buy them at the right time due to high costs and other barriers. ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 241 myAgro is a service in Senegal and Mali that helps smallhold- through the use of mobile phones and other ICT ers purchase agricultural inputs on an incremental payments services such as e-Choupal kiosks. basis via a mobile phone platform and a network of local vil- ƒ A national survey of Indian farmers in 2005 found that lage vendors. By topping up their myAgro accounts, farmers only 40 percent of farm households accessed informa- easily save and then digitally pay for inputs over time. tion about modern agricultural techniques and inputs. The survey also found that almost all small-scale Farmer Behavior farmers reported some increase in convenience and Even if they know where to buy inputs, farmers still do cost savings from using their mobile phones to seek not always buy them at the right time. Duflo, Kremer, and information such as input availability. Robinson (2009) argue that a tendency to procrastinate may ƒ RML (formerly Reuters Market Light) was launched explain why so few African farmers use fertilizer, despite in India in 2007 to provide market information and knowing that it raises yields and profits. Only 9 percent intelligence to farmers and agribusinesses. In a survey of farmers interviewed believed that fertilizer would not of farmers who received the RML service, 50 percent increase their profits, yet only 29 percent had used any fertil- said they reduced expenditures on agricultural inputs izer in either of the two preceding seasons. When asked why, because of SMS information services. The service is almost four-fifths of the respondents said that they did not also changing farmers’ behavior; 44 percent said that have enough money to buy fertilizer, although fertilizer was it changed their fertilizer applications and 43 percent readily available. However, even poor farmers earned enough said that it changed the timing of spraying. to buy fertilizer for a portion of their fields. Better intentions made little difference. Virtually all farmers said they planned A reason commonly cited for the difficulty in obtaining to use fertilizer the following season, but only 37 percent inputs is that the government will often distribute subsidized actually did so. inputs, often through schemes that last only a few years. These policies restrict the potential for the private sector The question is whether ICT, with targeted messages, to supply inputs; and when government programs end, could be effective for helping farmers to become more no company can sustainably deliver inputs to the farming rational and better-organized buyers of inputs. In other cir- community. cumstances, having access to such information through ICT seems to provide clear benefits (table 9.4): Lessons Learned ƒ In India, farmers with access to ICT services reported 10–40 percent yield increases, primarily Findings on how mobile telephony enhances marketing by through gaining better access to hybrid seeds and improving logistics include: being encouraged to introduce new farming practices ƒ More efficient use of existing storage, packaging, (Vodafone India 2009). All farmers claimed that their transportation, and processing facilities. mobile phones had led to increased yields, with some ƒ Increased monitoring and coordination of freight also citing price and revenue improvement. These transportation operations, including product collection, increases are a result of better information flows delivery, and security. TABLE 9.4. Information Priorities of Farmers Using Mobile Phone in India INFORMATION PROVIDED NSS 59TH ROUND OF PHONE USAGE VIA: VODAPHONE REUTERS MARKET LIGHT Seeds Seeds Accurate local weather forecasts Fertilizer application Prices Technical information Plant protection Plant protection Input sources and/or production costs Harvesting and marketing Fertilizer application Market information Farm machinery Harvesting and marketing Farm machinery Source: Authors. I C T I N AG R I C U LT U RE 242 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T ƒ Quick response to any disruptions in the supply ƒ Integrated rural infrastructure investments could chain (for example, disruptions such as vehicle break- include investments that improve agricultural produc- downs clear up more rapidly). tivity, rural roads, and rural markets (assembly or pri- ƒ Reduced travel time and expense through the mary wholesale markets in particular) and that extend ability to call markets and obtain information rural mobile phone coverage. As noted, in areas instead of having to travel there. where phone signals are weak, a mobile phone ampli- ƒ Disintermediation and improved transportation fier located at a market would facilitate conversations efficiency as mobile phones facilitate the assembly of and flows of information around market opportunities product, which enables larger trucker/traders to buy and needs, logistics, and prices. sensible-sized loads directly in rural areas. Suppliers ƒ Form innovative private-sector partnerships. can use mobile phones to conduct real-time market Better involvement and organization of stakeholders research, and entire truckloads can be bought and can improve farmers’ access to information about sold while still on the road. inputs. Agribusinesses and input suppliers have ƒ Synergies between investments, so that combined an incentive to invest in ICT services that provide investments in roads, telephone communications, input information because of the potential benefits and electricity have a greater aggregate benefit that can be realized from increasing input sales. than separate investments ever could have. (If a Moreover, input suppliers and dealers can come single investment were to be made, however, the together to create partnerships to facilitate access most cost-effective investment would probably be to inputs. They can do so by combining their data telephones.) and communicating via SMS. For example, input supply companies can use ICT to remind farmers to Principles and Guidelines for Potential Interventions purchase inputs, alert them to input arrivals, and pro- vide timely advice on proper use, such as for treating A combination of economic intuition, observation, and emerging pest and disease problems. research indicates that important synergies can be created from a confluence of investments: ƒ Use ICT to improve governance of subsidy programs. ICT offers a means of delivering subsides to ƒ Address policy issues around increasing access to the intended beneficiaries. It enables community pro- the poorest. Despite phenomenal growth in tele- curement of inputs and input delivery through the pri- phone lines and mobile phone networks, access is vate sector. Embedded e-payment systems guarantee still highly inadequate and unequal. Today, the main timely payment from the government and encourage beneficiaries of ICT are those who have the tech- the emergence of a private network of input suppliers. nology, enabling them to increase their profits. Not only are the poor and those living in rural areas at a ƒ Education and information dissemination are key disadvantage, but full utilization of the technology is components of supplying inputs through ICT. It is impossible, even for those with access, until the digi- critical for farmers to have a rooted understanding of tal divide is addressed (as discussed in the overview) the potential long-term implications for productivity and universal access is achieved. A full transforma- and profits of using better inputs in a timely manner. tion of the logistics system will not happen until the On a more practical level, farmers need information technology becomes ubiquitous, intensifying competi- about how to source inputs and identify counterfeit tion and carrying the potential long-term benefits of supplies, which remain a significant productivity drain. reducing transaction costs. ƒ Create an integrated rural infrastructure invest- ment program. Investments that help to remove Case Study: TruTrade in Uganda—Paying Smallholders intermediaries are believed to have strong potential a Fairer Share of Their Produce Value for improving marketing efficiencies and lowering TruTrade offers IBM cloud-based mobile and online applica- transaction costs. Studies in South America have tions to allow price setting, tracking produce from collection demonstrated synergies between investments in to delivery, and tracking payments from buyer to farmer. roads, telephones, and electricity, although individu- Established as a private, for-profit company in Kenya in ally telephones consistently show the highest returns 2012, it has expanded into Uganda and is planning to (Jansen, Morley, and Torero 2007). develop operational capacity in Tanzania. Its application links ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 243 smallholders to buyers with controls that enforce quality white sorghum. In a typical remote area, a farmer going to a and transparency and thereby embed trust, enhance market TruTrade collection point receives UgSh 700 per kilogram of efficiency, manage risks, and allow farmers to share in value- sorghum. The buyer pays UgSh 1,150 per kilogram of cleaned addition processes. sorghum, and the costs of the intermediate transactions are broken down per kilogram. TruTrade has a franchise network of brokers and field agents to manage transactions on the ground. As produce Assuming a deal goes well (the logistics work out, trucks are is sorted, graded, cleaned, pressed, milled, and packaged all full, all produce is accepted by the buyer, and payment is to meet buyer requirements, farmers that use TruTrade timely), TruTrade will pass any profit back to farmers. In the are rewarded for quality and capture a share of the value case shown in table 9.5, the profit results in a bonus of UgSh addition. TruTrade’s financing mechanism pays farmers 50 per kilogram for farmers. When farmers do well, TruTrade’s when the crop is delivered to company collection points. network commissions also increase (TruTrade 2015). Those farmers are also awarded a bonus from value addi- tion or when savings are made. TruTrade’s approach gives farmers a strong understanding of costs, which helps them to negotiate better with other TruTrade’s Transaction Security Service (TSS) ensures that buyers or market their other crops. It also helps other sup- benefits are awarded to farmers, traders, and buyers. Farmers ply chain players to define and analyze the costs accurately receive better prices, more reliable access to markets, and before deciding to engage in a specific deal. can benefit from value-addition opportunities. Traders can grow their businesses, earning a commission and building TruTrade’s experience with ICT in agriculture demonstrates relationships as a trusted service provider. Buyers receive the importance of user-led programming and peer exchange produce that meets their demand for quality and volume, learning. The field operations evolved over many years of reliability, and traceability (TruTrade 2015). intensive peer exchange among the value chain actors, men- tored by Rural African Ventures Investments (RAVI). Insights As of 2015, three of TruTrade’s franchisees in northern gained on the ground were then communicated to program- Uganda were sourcing sorghum and barley from smallhold- mers in Webgate to build the ICT tools for TSS. ers to supply East African Breweries (EABL) in Kampala. In 2016, TruTrade continued to work with broker networks Another of its franchisees, AgriNet Ltd, is sourcing maize across the region to use its application to improve smallholder from smallholders to supply flour to base-of-the-pyramid prices and provide produce to a whole range of buyers, from urban consumers. TruTrade provides a transparent and large-scale processors like breweries to small vendors serving secure way to link farmers with the buyer. base-of-the-pyramid urban consumers (see image 9.2). Farmers can bring whatever produce they have to TruTrade’s registered agents, who weigh and check the quality of the pro- TABLE 9.5. TruTrade Transactions and Payments duce and pay the agreed-on price. TruTrade encourages farmers to White Sorghum Producers, Uganda, to receive payment through mobile money as it is more secure 2015/16 and easy for the company to track. TruTrade covers the with- TRANSACTION PAYMENT (UGANDAN SHILLINGS) drawal charges, and farmers are also eligible for a bonus. Farmer 750 (700 down payment + 50 bonus) Storage 10 (collection point) Through its TSS business model, TruTrade gives farmers the Cleaning/packaging 50 best deal possible because the company earns commissions on each transaction linked to the price the farmer receives. Transportation to Kampala 135 The process is transparent, ensuring that farmers know Loading/unloading 9 the price the buyer is paying and all the different costs that Bags/labeling 30 (100 kg for sourcing; 50 kg for cleaned) are involved in getting the produce from the farm gate to the Local tax 10 end buyer. TSS has been accepted as “fair to farmers” by Trade finance/insurance 30 the Kenya Federation of Alternative Trade and the World Fair TSS agent 50 Trade Organization. Commissions 45 (TruTrade 3%; network manager 3%) Process loss 31 (2–3% of the total volume sourced) To show how this business model works in practice, table 9.5 presents average figures from the recent 2015/16 season for Total 1,150 I C T I N AG R I C U LT U RE 244 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T IMAGE 9.2. Schematic Presentation of TruTrade Africa a. Accurate price information provided to the farmer b. Gains from efficient and transparent transactions benefit farmers Case Study: E-Wallet Scheme in Nigeria—Using Mobile Of the approximately 14 million Nigerians who claim farm- Phones to Increase Access to Subsidized Inputs ing as their occupation, 4.2 million in 36 states have regis- In the 1960s, Nigeria was an agricultural powerhouse and tered with the scheme. Of these farmers, 1.2 million have supplied 95 percent of its local food needs. With the advent redeemed their vouchers and received subsidized fertilizer of oil and gas, policy and investment in agriculture were and improved seeds. Approximately 198,000 women farm- significantly reduced. To revitalize this essential sector, the ers have registered, and 49,000 have received subsidized Government of Nigeria launched its E-Wallet Scheme in fertilizer and improved seeds (Adubi 2016). 2012 as part of its broader Growth Enhancement Support The low number of famers who have redeemed vouchers (GES) program. can be explained by a number of factors, including the poor E-Wallet provides Nigerian farmers with an electronic wal- trust in government, the delayed start of the program, and let that is accessible via a mobile phone or through unique the general disbelief that the government is serious about identification codes. Using this scheme, farmers can directly addressing agricultural challenges (Adubi 2016). Throughout access government subsidies on inputs. the wider supply chain, 1,080 agro-dealers were certified and ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 245 registered to participate, and 804 redemption centers were Intelligence Agency 2016). Only recently, however, have established. Over 25 companies producing fertilizer and public and private stakeholders started to focus on strate- seeds participated in supplying the agro-dealers. gies for agriculture to benefit from ICT. The government’s vision of “Digital Bangladesh” gave major impetus to the According to the Nigerian minister of agriculture and rural development of the ICT sector and led the government to development, Akinwumi Adesina, fertilizer companies sold revise the National Agriculture Policy to include e-agriculture US$100 million worth of product directly to farmers instead as one of its major objectives. of the government through the E-Wallet Scheme. Meanwhile, seed companies sold US$10 million worth of seed directly to The mobile network and Internet penetration have grown rap- farmers, and banks lent US$20 million to seed and fertilizer idly across Bangladesh. The country has almost 132 million companies and agro-dealers (IFAD 2013). mobile phone users and 56 million Internet subscribers, of whom 53 million are mobile Internet subscribers (BTRC Despite the program’s initial success, a number of challenges 2016). No data are available on the number of smartphone remain in realizing its potential. It is challenging to ensure users, but trends show that their numbers are growing as that all parties with a stake in the outcome implement their smartphones become more affordable. This environment has part of the solution effectively and in good time. Farmers encouraged service providers such as mobile operators, non- will need to adapt to the new system. It is also essential to governmental organizations (NGOs), and the private sector ensure that agro-dealers have sufficient financing to maintain to develop ICT-enabled products and services for agriculture. inventory. Going forward, the significant physical logistics of moving inputs to remote parts of Nigeria also need to The Bangladesh Institute of ICT in Development (BIID) was be considered (Adubi 2016). The potential of this program founded in 2008 as a private-sector-inclusive business initiative. remains enormous, however. Once farmers can be identified It launched e-Krishok, a service for ICT-enabled agricultural through their registration data and are accessible through products and services, including an information and advisory their mobile phones, a range of new services become possi- portal delivered through a network of local information centers. ble—for instance, microinsurance, e-extension, mobile trad- ing platforms, market price information, and more extensive Following piloting and testing, e-Krishok evolved to include financial services can be developed. the Farmbook business planning solution, the Zero Cost phone-line, and extension.org, a knowledge repository portal. As of 2016, BIID also focused on integrating gender- Case Study: e-Krishok and Zero Cost in Bangladesh— inclusive and nutrition-sensitive messages in agricultural Providing Extension and Advisory Services through extension practices. It is developing an Irrigation Scheduling Mobile Phones Application in collaboration with the University of Twente Agriculture contributes 16 percent of national gross (the Netherlands) and CIMMYT. domestic product (GDP) in Bangladesh (the second-largest share) and employs 47 percent of the workforce (Central The Zero Cost Extension and Advisory Service was launched in October 2015 in partnership with the Bangladesh Seed IMAGE 9.3. Billboard for Zero-Cost EAS Association (BSA) and Katalyst, a develop- ment agency funded by multiple donors. Zero Cost enables farmers to access exten- sion and advisory services by phone for free. A farmer leaves a missed call to a Zero Cost phone number (image 9.3), and an agricul- turist calls back immediately to respond to any queries that the farmer has. The core principle behind this service is that it is essential to facilitate easy access to advice and promote the use of quality seeds, fertil- izer, and pesticides, and other inputs. As the use of smartphones is compara- tively low in rural areas, this phone-line I C T I N AG R I C U LT U RE 246 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T service advises farmers on the selection and application of Functions of SCM Systems inputs, taking into account the cropping season, geographical SCM software running on networked computers and hand- region, productivity, and other factors. This free service is held devices typically performs some or all of the following funded by partners whose products are promoted and who functions: can access business intelligence through farmer data. BIID ƒ Stores information about suppliers. This function is now in the process of scaling up this model and commer- allows a food-processing company to know the details cializing it through various input suppliers, including financial of its farmers, their previous transactions, and previ- service providers in the agricultural sector. ous performance. ƒ Enables customers to transmit orders to farmers SMALLHOLDER INCLUSION IN COMMERCIAL in an efficient manner. The order would specify what SUPPLY CHAINS is required, by which date it will be collected, and how much will be paid for it. Trends and Issues ƒ Monitors production, making it possible to manage ICT facilitates exchanges and flows of information between quality and incentivize high-performing suppliers or parties all along the supply chain and can be used to manage support poorer performers. The software could provide transactions, arrange logistics, and ensure that quality specifi- answers to questions such as which farmers are on cations are clearly understood. Under the right circumstances, schedule, which are behind, and how much product agribusinesses have the incentives, capacity, and resources has already been collected from each farmer. If con- to create and apply technologies that support inclusion. Public nected to the bank accounts or mobile transaction organizations play an important role by implementing sup- accounts of the procurer and supplier, such software portive policies and fostering public-private collaboration to might also transfer payments when orders are fulfilled. develop ICT applications. ƒ Tracks the transportation of goods from the farm Smallholders can raise their incomes by participating in com- gate to the warehouse or retailer. mercial supply chains, but including smallholders entails sig- nificant challenges for agribusinesses and smallholders. For Varying Types of ICT-Supported SCM Systems agribusinesses, interacting with a large group of smallholders No single ICT application is ideally suited for all smallholder implies high transaction and monitoring costs to ensure qual- farmers, other supply chain actors, and procurement con- ity, safety, and timely delivery. For smallholders, participation texts. Organizations vary in size, budget, and operations. can be risky, requiring access to inputs and training to satisfy Some source perishables; others source staple grains. Supply stringent quality requirements. chains encompass larger and smaller ranges of regions and Market forces do not in and of themselves guarantee small- producers (whose languages and education levels also vary). holders’ inclusion in modern supply chains. When possible, Not surprisingly, the varying degree of sophistication in ICT companies might seek to source from larger producers, applications reflects this diversity. Bigger firms can extend which can deliver economies of scale, often are better their SCM solutions, while smaller firms turn to off-the-shelf educated, and typically also have better access to finance. software or applications for increasingly widely available Including smallholders can present significant challenges for mobile phones. Others may still rely on spreadsheets. Some both the agribusiness and smallholder, but a strong business applications handle everything from transactions to logistics case can be made for both sides to work together and quality control. Others focus on a smaller subset of ICT can foster smallholders’ inclusion and overcome the areas. They rely on different combinations of software and risks associated with commercial supply chains by reducing hardware; but a combination of mobile phones, personal the costs of coordination (collection of production, distribu- digital assistants (PDAs), networked computers, and cen- tion of inputs, and so on) and increasing transparency in tralized databases figure prominently in the architecture of decision making between partners. They can also reduce most applications. transaction costs and disseminate market demand and price information. Additionally they can disseminate information on Finally, the applications differ in their commercial approach. weather, pest and risk management, and best practices to Some are public goods that do not have a revenue-generating meet quality and certification standards. They can also can col- model, while others adopt a one-time installation fee. Others lect management data from the field and ensure traceability. are based on a fee-per-transaction approach, while many ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 247 follow an embedded service model in which revenues are A particular area of concern for stakeholders is that one side generated from commercial trading transactions and a fee will not uphold the preexisting agreement. When prices are for the ICT service is not charged to farmers. high, farmers have an incentive to sell to the spot market (side-sell) instead of to agribusinesses. Similarly, when mar- ICT applications can be the glue that holds together complex ket demand for certain products changes or is lower than supply-chain partnerships. The rapid flow of information expected, procurers have an incentive to buy less than prom- between buyers and producers that such applications allow ised or to offer a lower price (finding produce to be of insuf- minimizes misunderstandings, allows for risk manage- ficient quality is a common tactic). ment, provides higher levels of transparency, and ultimately fosters trust. Better communication between farmers and procurers, and systems that allow farmers to be paid faster, can reduce such The development of ICT applications for SCM can be myopic behavior and help relationships endure. If farmers driven by a wide variety of agents in the private and public know that side-selling this season will have repercussions in sectors; but collaborative partnerships appear to yield more the next one because the company keeps electronic records, effective applications. For example, agribusiness companies, they might be less likely to engage in this behavior. mobile network operators, third-party service providers, Effective SCM systems can also play a role in eliminating and software firms as well as development institutions and unnecessary intermediaries from transactions. To illustrate research institutes may participate. It is rare for applications this point, Cropster Hub was launched in February 2016 as to be developed independently by any one party; collaborative an online trading platform for anyone with Internet access to partnerships focused on smallholder inclusion or value-chain create an account and purchase green coffee from coopera- competiveness are much more common. tives or traders around the world. The platform enables coffee Challenges of ICT-Supported SCM Systems sellers to better manage their information and to connect to previously inaccessible markets. Because it is a business-to- The lack of context-appropriate software, the prohibitive cost business platform, coffee sellers have ownership of their own of hardware, and the lack of supporting infrastructure can data and marketing information. Facilitating direct trade means make it difficult to use SCM systems in developing countries, that intermediaries are eliminated, transactions are faster and and thus include smallholder farmers as key suppliers. The more efficient, and prices are lower (Cropster 2015). diffusion of ICT devices (especially mobile phones) and infra- structure has eased these constraints by making it possible There is a consensus that ICT applications have a positive to aggregate smallholders virtually. effect on smallholders’ inclusion in commercial value chains, but the extent to which ICT enhances or dilutes that effect Issues Faced by Supply Chains. Although participation in requires further research. The application of ICT can be commercial supply chains presents an opportunity for small- expensive from the perspective of software development or holders to attain higher incomes (between 10 and 100 per- purchase, implementation, training, and so forth. The costs cent; see World Bank 2008,127) and reduce poverty, these may not be justified in all cases. Better information on the outcomes are not certain unless other important factors are potential impact can help to make this determination. addressed. For example, actual income changes depend on the crop, the time needed for farmers to learn to produce Public Sector Role. The public sector can help smallholders the crop more efficiently, and the quality and other standards participate in commercial supply chains by helping them to required. Changes in income may not be sustainable unless develop relationships with agribusinesses and to grow prod- accompanied by improved practices such as postharvest han- ucts that the market demands. Public organizations have dling and risk management. facilitated the creation and deployment of various ICT appli- cations to reduce the transaction costs associated with the The application of ICT for including smallholders in commer- interaction between producers and procurers, better monitor cial supply chains suggests that these technologies can solve the production process, and improve traceability. As these many problems associated with transactions (ordering, invoic- technologies and their applications become more appropri- ing, payment), logistics (collection, storage, transportation), ate to local contexts and needs over time, they are likely to quality assurance (safety, traceability), process management become indispensable for smallholder inclusion. (production oversight, input distribution, extension support), and product differentiation (specialization in organic, fair trade, Public organizations also have a unique role to play in enhanc- or regional labels). ing competition, facilitating smallholders’ participation in I C T I N AG R I C U LT U RE 248 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T commercial supply chains, and ensuring higher earnings for supply-chain functions that are common for procurers work- those that do participate. Public organizations can push for ing with smallholders, such as tracking data about producers policy changes and make systematic interventions as well as and their performance over time, communicating orders to coordinate partnerships between parties in the supply chain farmers, managing production, speeding collection and pay- that create value but would be difficult for any single player ment at harvest, and tracing materials along the chain to to facilitate. They can also invest in both ICT and non-ICT comply with certification requirements. infrastructure. Also in demand are applications that can run on mobile Private Initiatives. Private companies often source from phones or other lower-cost ICT devices such as PDAs. smallholders out of competitive necessity, even if doing so Supply-chain solutions relying on such devices are better can be difficult (Barrett et al. 2010). Quality and certification suited for use in developing contexts, where computers demands by consumers and export markets also force agri- and Internet connectivity are generally less accessible than businesses to assert more control and link backward to the mobile phones and wireless service. Several private firms producers in the supply chain. Often, there is no choice but to have produced such solutions, and others have been created source from numerous smallholders, because they dominate in joint efforts by private and public organizations. production of certain goods. Corporate social responsibility initiatives may encourage procurement from smallholders; Access to Information. ICT applications can improve link- the political context may require it—the ramifications of ages between procurers and smallholders in indirect ways ignoring smallholders may be significant. also. A phenomenon not limited to India, but highly prevalent there, is agro-dealers’ practice of running retail distribution Food processors and retailers, especially in India and Latin and collection centers in rural areas. These centers (some- America, are turning to procurement models that bypass tra- times, simple kiosks) offer ICT-based access to information ditional wholesale markets to engage directly with farmers. and extension services to attract farmers to the centers. Through SCM software on networked computers and mobile Farmers are consumers of household items and agricultural phones, ICT facilitates this process in headquarters, field inputs sold in these places, but they are also suppliers of offices, collection centers, the offices of farmer coopera- agricultural produce. In some instances, farmers have the tives, and in the hands of farmers and extension workers. option of visiting multiple centers nearby; but in other cases, The sophistication and source of the technology, as well as a company that procures the major crop grown in a place the extent of its reach to smallholders, vary. might have the sole collection center in the area. Many large organizations simply extend the use of their By offering access to information and other services through current enterprise resource planning (ERP) software to their rural centers, companies build farmers’ trust and loyalty. manage their smallholder suppliers. Such software is used Come harvest time, farmers familiar with the center are likely by large organizations to centrally store organizational data to sell their produce at the distribution center, which reduces and manage data transmission and use between depart- the company’s cost of procuring raw material. In exchange, ments within the organization and external partners, such farmers have access to information that improves the pro- as suppliers. In 2002 the typical costs of owning an SCM ductivity and quality of their crops. system averaged about US$15 million and could range from US$500,000 to US$300 million (Sysoptima 2005). These Lessons Learned costs represent fees for software, consultants required for ICT applications may create opportunities to incorporate installation, and hardware. smallholders more effectively into supply chains, but their impact will be limited without the requisite supporting infra- ICT for Smaller Operations. For smaller operations, world- structure, policy, and culture of collaboration: class SCM systems may be neither necessary nor cost- effective. These players develop modest systems in house ƒ Infrastructure. Physical infrastructure is particularly to manage sourcing challenges. A market for cheaper ICT critical for ICT devices, which often require reliable solutions has developed owing to the growing trend toward electrical power and telecommunications networks. direct sourcing as well as the large number of procurers The presence of complementary infrastructure also that cannot afford SCM systems but can no longer get by has much to do with the success of ICT interventions with simple spreadsheets. The market has grown, espe- for smallholder inclusion, such as roads, storage facili- cially because applications are needed to perform specific ties, transportation, and financial infrastructure. ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 249 ƒ Business environment. Commercial value chains unless they are assured of markets. Public institutions prosper in an enabling business environment; poli- can lead such collaborative efforts if they are willing to cies that support such an environment are indirectly share rights to outputs of the joint activities. quite important to the effectiveness of ICT applica- ƒ Getting around market failures. Farmers often join tions in supply chains. Policies can also discourage or value chains to solve market failures in insurance, encourage smallholder inclusion. In India, for example, financial, input, and information markets (Barrett limits on the size of landholdings make it difficult for et. al. 2010,13). The numerous instances of rural agribusinesses to avoid smallholders in favor of larger collection centers creating links with farmers by producers. Until quite recently, policy barriers made providing access to weather, extension, or other it difficult to source directly from farmers at all. services through Internet-connected computers ƒ Public sector. The public sector can play a number of appear to be effective. roles in ensuring smallholder inclusion. It can rigor- ously evaluate current ICT applications to determine The wide array of private information services available for their impact on smallholder inclusion and incomes. agribusiness actors to communicate with or manage their Quantitative and qualitative evaluation can include interactions with farmers is still growing. Care must be taken a variety of indicators to document outcomes, such to identify the actual problems that prohibit farmers from par- as production volumes, net income; distribution of ticipating prior to the implementation of an ICT solution. ICT income, product quality, and the distribution of costs. interventions are not one-time efforts. Technologies and busi- ness needs continually change, and the deployment of ICT Public intervention in the private sector’s use of ICT in supply must continue to evolve as well. chains can focus specifically on improvements in the policy environment and the competiveness of smallholders. An Principles and Guidelines for Potential Interventions important role of the public sector might be to incentivize Key qualitative or skills-based indicators that have an impact smallholder inclusion and provide guidance on technologies on farmers’ incomes can include key skills related to the that can be used to do so. The public sector might also work nature and quality of the relationship between farmers and to organize farmers into groups and spread financial literacy trading intermediaries, improvement in bargaining power, (ICT can help here, too; see Module 8). and governance functions. Donor-funded projects present unique challenges to scale For supply chains linked to high-value markets, additional and sustainability. Low-cost, context-specific software, for attention should be paid to issues related to product and pro- example, can have difficulty supporting higher volumes, and cess upgrading and collective innovation as the chain adapts in such cases success can lead to collapse. In other cases, the to increasingly demanding market conditions. While this pro- products are too specialized and cannot be applied to other cess does not occur fully at the farmer level, the existence projects. ICT applications are not one-time interventions. of this skill set is critical for the entire system’s continuing Hardware and software must be maintained and upgraded. competitiveness. Unlocking innovation and opportunities for The funds and human capacity to do so might be in short smallholders is a critical element of impact, because it leads supply after a project is completed, unless special care is to benefits that help drive farmers’ incentives for inclusion taken to ensure sustainability: (K. Kumar, personal communication). ƒ Private sector. Private companies and other stake- When beginning an intervention, ascertain whether the bar- holders can be effective in developing and deploying riers to smallholder inclusion are best addressed by an ICT ICT tools to procure directly from farmers. Providing application. Care should be taken to ensure the presence of services (information, advice, inputs, finance, and key enablers—special attention is required to include women other resources) to farmers can be an effective incen- and other vulnerable groups. It is also important to consider tive for them to participate in commercial value chains. the full cost of ownership beyond any one-time software and ƒ Public-private partnerships. Partnerships have hardware fees. Installation charges, maintenance, upgrades, proven critical in developing ICT applications targeted and the cost of training users must also be included. toward smallholder inclusion. Public organizations lack the technical capacity, and technology companies If an ICT application is deemed appropriate, consider exist- are reluctant to absorb the risk of producing products ing commercial products before attempting to develop I C T I N AG R I C U LT U RE 250 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T new products. If the development of a new product cannot In 2010 Adisagua, a Guatemalan smallholder initiative, set be avoided, sustainability should be a made a priority, and out to pursue Global GAP certification. Smallholders must local partners must be included. A focus on developing stan- adhere to guidelines on quality and pesticide use to qualify dards for ICT applications and systems will allow interoper- for Global GAP certification. Adisagua faced a number of ability between technologies and make it easier to develop challenges in collecting the required information on farmers new applications when necessary. and their harvesting activity. As smallholders were spread across vast distances, field agents were required to spend Finally, human capacity is critical for the development and half a day every week collecting data and sending it to head- uptake of ICT applications in supply chains. Farmers or quarters. This system also meant that it was impossible for farmer associations may find ICT tools challenging to use management to collect data on activities at specific farms, (illiteracy, a lack of training, or simply a lack of comfort with because information was available only at the farmer group modern ICT devices are typical barriers). Nor can ICT appli- level (Farmforce 2016). cations be developed or deployed well if a technical talent pool with an entrepreneurial spirit is lacking. Adisagua signed up to Farmforce to improve its capacity to manage growers. Collecting data from each farmer allows the performance of individual smallholders to be evaluated Case Study: Farmforce in Guatemala—SCM and helps to ensure that technical assistance and training are Tool Faciliatates Sustainability Certification targeted where they are needed most. for Smallholders In August 2013, Farmforce technology was rolled out Farmforce is a software program that simplifies the manage- across 150 hectares on which smallholders operated 220 ment of smallholder farmers, increases traceability in the farms producing French beans. Information about the supply chain, and enables smallholders to gain access to for- farmers, field profiles, and harvested yields was collected mal markets. It is used to manage outgrower schemes and and uploaded in real time. Within the first year, Farmforce contract farming programs efficiently. Through mobile phone covered 16 percent of the farmers in Adisagua. By 2014, technology, it modernizes smallholder management by track- all 1,350 smallholders across 500 hectares were enrolled ing growing activities, harvests, and audits in real time. It in the scheme. The technology has had a number of posi- was developed by the Syngenta Foundation for Sustainable tive results. It has been easier for producers to comply with Agriculture and cofunded by the State Secretariat for Global GAP requirements. Information is transferred more Economic Affairs of Switzerland. efficiently between the field and head office, decreasing the time required from several days to an hour. Traceability Reasons for using Farmforce differ depending on the of smallholder groups is now also 10 times more precise stakeholder. Producers use Farmforce to efficiently organize, (Farmforce 2016); see image 9.4. manage, and monitor large numbers of farmers to improve productivity and reduce risks. Cooperatives, agribusinesses, and agricultural processors can obtain real-time information Case Study: Farmbook in Africa—Enabling on yield forecasts and harvests to make postharvest opera- Smallholders to Develop Business Plans and tions easier to manage. All stakeholders can use the tool to Locate Buyers More Effectively increase traceability and reduce the auditing costs associ- Farmbook is an application designed by Catholic Relief ated with certification schemes and compliance with food Services (CRS) to help smallholder farmers plan their busi- standards (Farmforce 2016). nesses and locate buyers more effectively. It was built and tested in parallel between May 2010 to November 2012 in Formal markets require traceability and compliance with Malawi, Zambia, Zimbabwe, and Madagascar. food safety standards, issues that have proven challenging and time-consuming for smallholder farmers. Increasingly, Business development is a challenge for many smallholder international food processors and retailers are seeking sus- farmers and field agents. Most smallholders do not keep tainability certification standards for their products (Global records, and many field agents have not received any for- GAP, Fairtrade, Rainforest Alliance, and others) as an additional mal education in business management. Farmbook offers point of differentiation and quality assurance. Farmforce uses field agents and farmers a business-planning process that mobile technology to address this need and make these stan- focuses on both production practices and market opportuni- dards an integral part of smallholder production. ties (CRS 2015). ICT IN AGR IC ULTUR E S E C T I O N 3 — AS S E SSING MARKE T S AND VAL UE CH A INS 251 IMAGE 9.4. Timely and Efficient Data Collection by Farmforce Frees to improve marketing activities in subse- Time for Farmer Training quent seasons. Project teams can use Farmbook to register farmers and farmer groups, assigning each person or group a barcode. The Map & Track application collects data to streamline farmer FPO registration and business planning. SMART Skills courses provide agro-enterprise train- ing to help farmers to increase production, grow their incomes, and engage with mar- kets. The Farmbook Business Planner tool guides field agents and farmers through the process of creating business plans. Finally, Farmbook collects farmers’ feedback in vari- ous ways to help project managers adjust to farmers’ needs IMAGE 9.5. Steps of the Farmbook Business Support (CRS 2015); see image 9.5. Program Case Study: Digital Green in Africa and Asia— Transforming Agricultural Extension Systems and Creating Routes to Market Digital Green (www.digitalgreen.org) leverages low-cost, peer-to-peer, video-based knowledge exchange to amplify existing agricultural extension systems in Asia and Africa. Digital Green trains extension agents and peer farmers to produce short videos featuring local farmers demonstrating improved agricultural practices or sharing testimonials using low-cost pocket video cameras, microphones, and tripods. The videos are distributed using mobile, battery-operated projectors among small groups of farmers. In a controlled evaluation, Digital Green’s participatory, video-based approach was found to increase the cost-effectiveness of an existing extension by a factor of 10 times on a cost-per- adoption basis (Gandhi et al. 2009). Digital Green’s approach, along with its established network Farmbook was formally launched in May 2012 and has 994 of trusted village agents, has proven to be an effective tool to farmers logged into the system from 55 famer groups. There improve farmers’ access to global supply chains. In Karnataka are currently 24 business plans in progress, with farmers state in India, Digital Green is using its participatory-video working on a range of crops including soybeans, corn, approach to reach 1,600 gherkin farmers and improve their beans, chilies, and cucumbers. CRS has also provided train- access to the supply chain of the multinational company ing in Tanzania, Kenya, Ghana, Burkina Faso, Ethiopia, and Marcatus QED. In Ghana, Digital Green is training local part- Bangladesh (CRS 2015). ners of the Cocoa Board and the World Cocoa Foundation to improve the way they train 3,200 cocoa farmers on practices The application enables field agents to help farmers plan required to effectively tap into the global cocoa market (Digital their businesses and locate buyers more effectively in four Green 2016c). primary ways. It enables collective sales (which increase bargaining power) and tracks costs to assess the profitability Digital Green is also working to enhance the ability of farmers of marketing strategies. It also upgrades production to meet to find the best price for their produce through an aggrega- marketing needs and catalogues results from one season tion and transportation initiative in Bihar state in India called I C T I N AG R I C U LT U RE 252 MOD ULE 9 — STR ENGTH ENING AGR ICULTURA L MA RK ET ACC ES S W ITH IC T Loop. Accessing local markets represents formidable barri- Aker, J. C. 2008. “Does Digital Divide or Provide? The Impact of ers for many smallholder farmers, particularly with perishable Mobile Phones on Grain Markets in Niger.” Center for Global Development Working Paper 154. http://www.cgdev.org/content commodities like vegetables. In many cases, quantities are /publications/detail/894410. small, the quality is variable, and farmers have scant ability Annamalai, K., and S. Rao. 2003. “Indiagriline by EID Parry.” to bargain for better prices. Timing and logistics are also Corporate Strategy and International Business, Case Study challenges. Loop was launched in August 2015; and by using Series, Michigan Business School. Next Billion Net. http:// a trusted network of extension agents, Digital Green is man- www.nextbillion.net/lib / assets/documents/EIDParry_Case aging the transportation and logistics of perishable produce _Study.pdf. to local markets, increasing incomes for participating farmers Annerose, D. 2010. “ICT for Social and Economic Development.” (Digital Green 2016). Presentation by Manobi at the World Bank, Washington, DC, August. Loop has sold over 500 tons of vegetables, like okra and Athawale, S., 2014. “APMC and E-Trading for Financial Inclusiveness sponge gourds, that would have otherwise fetched a lower in Karnataka”. IBMRD’s Journal of Management and Research. price, required more time and effort to sell, or gone to waste. BTRC (Bangladesh Telecommunications Regulatory Commission). This has led to payments of around US$32,500 to farmers 2016. Mobile Phone Subscribers in Bangladesh, 2016. http:// since its launch. Digital technology in the form of e-receipts www.btrc.gov.bd/telco/mobile. and ledger information is increasing transparency, speeding Banjo, G., H. Gordon, and J, Riverson. 2010. “Rural Transport: payouts to farmers, and enhancing the ability of the aggrega- Improving Its Contribution to Rural Growth and Poverty tor to assess price trends and choose the best destination Reduction in Sub-Saharan Africa.” World Bank, Washington, DC. each day (Digital Green 2016). Barrett, C. B., M. E. Bachke, M. F. Bellemare, H. C. Michelson, S. Narayanan, and T. F. 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I C T I N AG R I C U LT U RE S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 257 Module 10 ICT APPLICATIONS FOR AGRICULTURAL RISK MANAGEMENT SOHAM SEN (World Bank) and VIKAS CHOUDHARY (World Bank) IN THIS MODULE Overview. Risk and uncertainty are ubiquitous and varied in agriculture. They stem from uncertain weather, pests and diseases, and volatile market conditions and commodity prices. Managing agricultural risk is particularly important for smallholders because they lack resources to mitigate, transfer, and cope with risk. Risk also inhibits external parties from investing in agriculture. Timely information is essential for managing risk. Information and communication technology (ICT) has proven highly cost-effective instruments for collecting, storing, processing, and disseminating information about risk. Topic Note 10.1: ICT Applications for Mitigating Agricultural Risk. ICT has reduced the costs of gathering, process- ing, and disseminating the information that helps farmers mitigate risk. Information services using mobile phones and radios can direct early warnings of inclement weather, market movements, and pest and disease outbreaks to farmers. With an early warning, steps can be taken to limit potential losses. Farmers can also access advisory services remotely to support their decisions related to risk-mitigating activities or to choose the most appropriate action in response to an early warning. These decision support systems are critical for transforming information into risk-mitigating action.  Through mKRISHI, Farmers Translate Information into Action to Mitigate Risk Topic Note 10.2: ICT Applications to Transfer Agricultural Risk. Applications of ICT to transfer agricultural risk through instruments such as insurance and futures contracts are still quite limited. The widespread use of these instruments seems to be hampered by low levels of institutional development, high costs, inability to customize products to meet smallholders’ requirements, and poor financial literacy rather than by the information constraints that ICT can address. In a few instances, ICT applications are facilitating the design and delivery of index insurance. Although ICT has made it easier for smallholders to access and participate in spot commodity exchanges, their use of ICT to participate in futures contracts to hedge price risks remains a distant dream.  ICT Enables Innovative Index-Based Livestock Insurance in Kenya  Kilimo Salama Delivers Index-Based Input Insurance in Kenya through ICT Topic Note 10.3: ICT Applications for Coping with Agricultural Risk. While there have been few applications of ICT to cope with agricultural shocks, those that exist are proving important and potentially transformative. Mobile phones enable ground personnel or affected persons to report more easily to whoever is coordinating a response to the shock. This communication leads to better-targeted relief efforts. In the event of a shock, ICT facilitates transfers and remit- tances to farmers from state and relief agencies as well as from farmers’ extended social networks. Finally, disaster management is using more sophisticated applications to collect and synthesize information from the field. In the future, these disaster management applications might be applied to respond to agricultural shocks.  Electronic Vouchers Are a Targeted, Traceable Lifeline for Zambian Farmers  Community Knowledge Workers in Uganda Link Farmers and Experts to Cope with Risk I C T I N AG R I C U LT U RE 258 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT OVERVIEW The module begins by distinguishing among the kinds of Risk and uncertainty are ubiquitous in agriculture and have risks that affect agriculture and then describes three major numerous sources: the vagaries of weather, the unpredictable strategies for managing risk: risk mitigation, risk transfer, and nature of biological processes, the pronounced seasonality coping. The crucial role played by information and ICT in each of production and market cycles, the geographical separa- major risk management strategy is described, along with les- tion of producers and end users of agricultural products, sons from experience to date. Topic notes and innovative and the unique and uncertain political economy of food and practice summaries detail specific applications, their lessons, agriculture within and among nations. Managing agricultural and principles for success. risk is particularly important for smallholder farmers, who are usually already vulnerable to poverty and lack the Defining and Describing Risk resources to absorb shocks. Typical shocks, such as a drought (image 10.1) or a pronounced drop in market prices, prevent The terms “risk” and “uncertainty” indicate exposure to poor households from acquiring assets or making the most of events that can result in losses. Although the terms are often the assets they have (Cole et al. 2008). They push families into used interchangeably, they have slightly different meanings. poverty and cause extreme hardship for those already living Risk can be defined as imperfect knowledge where the prob- in poverty. abilities are known; uncertainty exists when these probabili- ties are not known. Many of the losses expected from the Exposure to risk prevents farmers from easily planning ahead risks inherent in modern agrifood systems are in fact related and making investments. In turn, risk inhibits external parties’ to uncertain events for which there are no known prob- willingness to invest in agriculture because of the uncertainty abilities, although subjective probabilities can be conjured by about the expected returns. Improved management of agri- expert opinion (Jaffee, Siegel, and Andrews 2010). cultural risk has significant potential to increase productivity- enhancing investments in agriculture (World Bank 2005). The “traditional” risks to agriculture in developing countries include inclement weather of all kinds (floods, droughts, hail, This module discusses experiences with emerging ICT snow, windstorms, hurricanes, cyclones), pest and disease applications that channel critical information for mitigating outbreaks, fire, theft, violent conflict, and hardships of the agricultural risk in developing countries, reduce the costs sort that farmers have always feared. “Newer,” less familiar of delivering insurance to remote rural users, and deliver risks have appeared with the commercialization and global vouchers to farm households affected by droughts and integration of commodity chains, including commodity price floods. Although unproven, such applications offer glimpses volatility, input price volatility, sanitary and phytosanitary of how ICT is likely to be used to manage agricultural risk. risks, the risk of social compliance, and so forth. Regardless of whether these risks are old or new, their IMAGE 10.1. Unexpected Changes in Climate Contribute to Risk sudden occurrence and the inability to man- age them can push millions of farmers into poverty traps and undermine the econo- mies of countries that depend heavily on agriculture. Risk in agriculture can be further classi- fied according to whether it predominantly affects the immediate production environ- ment, markets, or the broad institutional context in which commodities are produced and supplied: ƒ Production risks include bad weather, pests and diseases, fire, soil erosion, other kinds of environmental degrada- tion, illness and loss of labor in the farm family, and other events that negatively Source: World Bank. affect the production of agricultural ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 259 commodities. These risks have a direct, immediate Although ex ante measures allow farms and firms to elimi- impact on local agricultural production, but it is essen- nate or reduce risks, reduce their exposure to risk, and/or tial to understand that their effects are transmitted mitigate losses associated with risky events, they present from the farm all along the supply chain. real and/or opportunity costs before a risky event actually ƒ Market risks can include volatile prices of agricultural occurs. In contrast, ex post risk management measures commodities, inputs (fertilizer, pesticide, seeds, and respond only to losses that actually occur, but they can have so on), and exchange rates, as well as counterparty very high real and opportunity costs when that happens. risks, theft, risk of failure to comply with quality or Farmers make decisions based on their evaluation of risks sanitary standards, or risks imposed by logistics. and the resources at their disposal. These risks usually emanate from market actors Each strategy for managing risk can be carried out through (such as traders and exporters), and their effects a variety of instruments, each with different private and are transmitted back to the farm. public costs and benefits, which might either increase or ƒ Enabling environment risks can include political decrease the vulnerability of individual participants and the risks, the risk that regulations will suddenly be applied, supply chain. When selecting a mix of risk responses, it risks of armed conflict, institutional collapse, and other is essential to consider the many links between risk man- major risks that lead to financial losses for stakehold- agement strategies and instruments (Jaffee, Siegel, and ers all along agricultural supply chains. Andrews 2010). Risks can be idiosyncratic—affecting only individual farms To sum up, agricultural risk management strategies can be or firms (for example, illness of the owner or laborers, acidic classified into three broad categories: soil, particular plant and animal pests and diseases); or ƒ Risk mitigation. These actions prevent events from covariate—affecting many farms and firms simultaneously occurring, limit their occurrence, or reduce the sever- (major droughts or floods, fluctuating market prices). The ity of the resulting losses. Examples include pest and high propensity for covariate risk in rural areas is a major disease management strategies, crop diversification, reason that informal risk management arrangements break and extension advice. down and that formal financial institutions hesitate to pro- vide commercial loans for agriculture (Jaffee, Siegel, and ƒ Risk transfer. These actions transfer risk to a willing Andrews 2010). third party, at a cost. Financial transfer mechanisms trigger compensation or reduce losses generated by a given risk, and they can include insurance, reinsur- Risk Management Strategies ance, and financial hedging tools. Agrarian communities have traditionally employed various ƒ Risk coping. These actions help the victims of a formal and informal strategies to manage agricultural risk, risky event (a shock such as a drought, flood, or pest either before or after the effects of risk are felt. Ex ante strat- epidemic) cope with the losses it causes, and they egies (adopted before a risky event occurs) can reduce risk can include government assistance to farmers, debt (by eradicating pests, for example) or limit exposure to risk restructuring, and remittances. Government and (a farmer can grow pest-resistant varieties or diversify into other public institutions, through their social safety crops unaffected by those pests). Risk can also be mitigated net programs, play a big role in helping farmers cope ex ante by buying insurance or through other responses to with risk. expected losses, such as self-insurance (precautionary sav- ings) or reliance on social networks (for access to community There is a distinct role for both public and private insti- savings, for example). tutions in helping smallholders manage agricultural risk. Private interventions include individual actions and Ex post strategies (adopted to cope with losses from risks private arrangements among individuals (either informal that have already occurred) include selling assets, seek- arrangements or formal, contractual arrangements). ing temporary employment, and migrating. Governments Governments have a supporting role to play here, which sometime forgive debts or provide formal safety nets such may include providing infrastructure, information, and a as subsidies, rural public works programs, and food aid to suitable framework for private institutions. As noted, gov- help farms and firms (and their laborers) cope with negative ernments and civil society also have a role as providers of impacts of risky events. safety nets. I C T I N AG R I C U LT U RE 260 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT Central Role of Information and ICT in Risk are the latest in a long line of technologies (the newspaper, Management telegraph, telephone, radio, and television) that support risk All of the above-mentioned strategies—risk mitigation, risk management practices by collecting, processing, distribut- transfer, and coping—have limitations, and farmers often ing, and exchanging information (World Bank 2007). deploy a combination of strategies to manage their risks. The A survey of current ICT applications for managing agricultural mix of strategies often depends on factors like the availabil- risk suggests that they are valuable for two primary reasons. ity and understanding of different risk management instru- First, these applications channel information, advice, and ments, institutional and physical infrastructure, a farmer’s finance to farmers who are difficult to reach using conventional capabilities and resource endowment, and a farmer’s social channels. Second, they reduce the costs for organizations to network. Information about what needs to be done—when, provide risk management services, because they can greatly how, and why—is fundamental for smallholders and other reduce the costs of collecting, storing, processing, and dissemi- stakeholders in the agricultural sector to implement actions nating information. to mitigate risk, transfer risk before it occurs, and determine how to cope once those events have occurred. These cost reductions have produced two effects that encourage private investment in ICT to manage agricultural Farmers’ information needs and sources are varied and change risk. First, previously unprofitable activities have become throughout the agricultural production cycle (table 10.1), but all profitable. Second, reductions in operating costs can reduce farmers require a comprehensive package of information to prices for the end user. Products and services that were once make decisions related to risk. too expensive for the poor have come within reach, opening Farmers typically have been poorly informed. As the founder a new market segment for risk management products. of a market information service noted: The use of ICT to manage agricultural risk is at such an early Most [farmers] have long relied on a patchy network of stage that it is difficult to discern trends, but interesting devel- local middlemen, a handful of progressive farmers, and opments are under way. Increasingly, the private and public local shop owners to receive decision-critical informa- sectors are collaborating to invest in ICT applications that tion, whose reliability, accuracy, and timeliness can have can deliver timely information to farmers. With continuing a critical impact on their decision making and therefore improvements in technology, software, and infrastructure, livelihood. These are fundamental decisions, such as the quality and richness of this information are improving what price to sell the crop, where to sell (given the over time to address the specific needs of individual farmers. numerous fragmented markets), when to harvest, and Information services will allow farmers ever more interactive, when to spray pesticides to save the crop. two-way communication with agricultural experts and others Mehra 2010 in the agricultural innovation system (see Module 6). With the incorporation of ICT, supply chains are becoming far more Research in Sri Lanka found that the cost of information, transparent and capable of including smallholders. The tech- from the time the farmer decides what to plant until produce nology seems to help farmers avoid default risks and produce is sold at the wholesale market, can be up to 11 percent to consistent quality specifications, which is an important step of production costs. The study also found that information toward participating in more lucrative commodity markets. asymmetry is an important contributor to overall transaction costs (De Silva 2008). ICT applications—such as the Internet, As observed earlier, the encouraging trend in risk transfer networked computers, mobile phones—and smart phones products is the use of ICT to design insurance contracts, TABLE 10.1. Farmers’ Information Needs in Relation to the Crop Cycle and Market BEFORE PLANTING BEFORE HARVEST AFTER HARVEST MARKET INFORMATION  Information on agricultural inputs  Good agricultural practices  Postharvest management  Alternative market channels such as seeds, fertilizer, pesticide  Pest management  Storage  Commodity prices  Credit  Harvesting time and techniques  Grading and standardization  Wholesale market price  Weather  Packaging  Logistics information  Soil testing  Market information  Consumer behavior Source: Adapted from Narula and Sharma 2008. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 261 deliver insurance policies, assess crop damage, and deliver and telecommunications infrastructure for the cost-effec- indemnity payments. Although the agricultural insurance mar- tive deployment of ICT. Where costs are sufficiently low kets in developing countries are very small, ICT applications because mobile infrastructure is already available, more clearly have features that should help broaden those markets. profitable opportunities may exist. Successful ventures will offer insight into ways of ensuring sustainability and use on With regard to risk coping, technologies that allow real-time a wide scale. visualization and assessment of damage are beginning to be applied to agricultural shocks such as floods. Two other Farmer capacity is also challenging. Rural areas, where risk technologies—mobile money and electronic voucher management services are so desperately needed, also lack systems—are expected to be more regularly incorporated into education services, financial services, and even agricultural the operations of multilaterals and governments that must services. Many aspects of human capacity—such as finan- transfer funds to beneficiaries without access to financial cial literacy, knowledge of best agricultural practices, and institutions (see Module 7). familiarity with technology—are prerequisites for using risk management tools successfully. KEY CHALLENGES AND ENABLERS Highly developed software programming skills and techni- If it is difficult to ascertain trends from nascent activities such cal expertise are also critical for deploying ICT. Many risk as those described in the topic notes, it is even more chal- management services were able to leverage the significant lenging to assess outcomes and draw lessons. Many of these human resources of larger organizations, such as Reuters activities should be evaluated rigorously to determine their and Tata Consulting Services, to develop their software (see impacts and critique their approaches to using ICT in manag- Topic Note 10.1). This capacity is not universally available. In ing agricultural risk. Despite these caveats, several prelimi- addition, providers must be able to assess and thoroughly nary insights, crosscutting challenges, and key enablers for understand the needs of their clients; experience shows that risk mitigation, risk transfer, and risk coping should be noted. most technology-driven projects that do not connect with and address users’ needs have higher rates of failure. First, in some instances, farmers will pay for risk manage- ment services, particularly information services, customized Women and other vulnerable groups do not have equal to their needs. However, before adequate customization access to risk management tools. Traditional cultural norms occurs, most risk management services need public or pri- in many societies restrict women’s mobility, education, vate funding to support farmers’ initial access. Thus partner- assertiveness, and awareness, all of which affect their ships are central to assembling the combination of knowl- ability to acquire information or advisory services to help edge, skills, and resources required to manage risk through manage agricultural risks. The underlying structural gender the use of ICT. constraints make them passive recipients rather than active seekers of information. Even when women proactively Successful efforts display cooperation between software seek information, their access to information and ability to developers, hardware manufacturers, agricultural experts, use it are hampered by gender norms and stereotypes (ILO financial intermediaries, state governments and institutions, 2001,6). donors, nongovernmental organizations (NGOs), mobile operators, and others in the private sector. These partners Theoretically, the impersonal nature of ICT overcomes some might have different incentives for participation that may not of the traditional barriers and gender asymmetries that always be compatible, and different stakeholders may have women face in accessing information. A mobile phone, for different time horizons. To hold such partnerships together, example, does not differentiate between a female farmer an appropriate balance must be struck between stakehold- and a male farmer, but a male extension worker might. It is ers’ competing interests and short- and long-term gains. often difficult for women farmers to travel long distances to ascertain market prices, but a short messaging service Because partnerships, particularly with the participation (SMS) might deliver that information without breaking any of the private sector, are so vital in risk management, an traditional stereotypes and gender norms. Very little data, enabling policy environment and institutional framework disaggregated by the gender of beneficiaries, are avail- supporting business and entrepreneurship are also critical able on the impact of ICT applications in agricultural risk to incentivizing private investment to cope with or transfer management. Increasing gender-disaggregated data and risk. Additional fundamental elements are adequate physical analyzing the effects of risk management instruments on I C T I N AG R I C U LT U RE 262 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT women’s agricultural experience over the long term could In nearly every instance in which investments in ICT have provide useful guidance for improving women’s access to helped agricultural stakeholders to manage risk, external such instruments. support has been critical for providing complementary public goods, including: Trust in information and trust in transfer products are also ƒ Infrastructure, especially electricity delivery and critical issues for risk management. The information delivery mobile network coverage. mechanism seems to influence farmers’ confidence and ƒ Institutional and regulatory reform, especially with trust in the information as well as how they use it. Farmers regard to commodity markets that raise barriers to the are more likely to act upon information received directly from adoption of ICT for risk management. an expert than on information provided by an automated database. Farmers are also more likely to trust and act on ƒ Business climate reforms to encourage continued information they receive from a person standing in front of participation and innovation from the private sector. them than from somebody on the phone or an automated Donors can also encourage and foster cooperation phone message. among public and private sector actors. ƒ Technological, agricultural, and financial literacy Because most initiatives discussed in this module have yet among smallholder farmers. Low literacy represents to be studied rigorously, it is difficult to draw quantitatively a significant barrier to smallholders’ effective use of sound causal relationships between ICT for risk management ICT to manage risk. interventions and gains in risk reduction. Support is needed for research to establish the impact of ICT in risk mitigation, Donors such as the World Bank can also monitor innovative transfer, and coping systems. Such evidence would not only applications for risk management, evaluate their impact on improve the interventions but also garner support to scale up small-scale farmers and the agricultural sector, and provide effective innovations. research and technical support where necessary. Topic Note 10.1: ICT APPLICATIONS FOR MITIGATING AGRICULTURAL RISK TRENDS AND ISSUES alone is often not sufficient to manage risk. In Uganda, for While agriculture will continue to be risky, many risks can be example, the Grameen Foundation found that even if a farmer mitigated by timely action and through the application of best knew that a banana disease was spreading nearby, he or she practices. Typical risk mitigation actions might be spraying crops required help in choosing the right action to prevent infection with the appropriate pesticides in response to an early warning of the plants they owned (Grameen Foundation 2010a). of a nearby pest outbreak or optimally altering cropping patterns in response to news from commodity futures markets. In many cases, the early warning or decision support information already exists. State meteorological services Information is the most critical requirement for effective risk generally collect weather information and create forecasts. mitigation, and farmers need a variety of information to make Similarly, agricultural institutes, research universities, or choices to manage risk. Two types of information are most extension services are typically well aware of best practices important for risk mitigation: in crop selection, production techniques, input use, pest ƒ Early warnings about the likely occurrence of inclem- management, global commodity trends, and other topics ent weather, pest and disease outbreaks, and market critical to smallholder farmers. International organizations price volatility. also generate early warning and decision support informa- ƒ Advisory information to help farmers decide upon a tion. USAID’s Famine Early Warning System (http://www course of action to manage production risks optimally .fews.net) provides information for governments to manage or to respond to early warnings. food security risk, for example. A similar system at FAO helps to manage food security risk—the Global Information The connection between agricultural advisory services and and Early Warning System (http://www.fao.org/giews risk mitigation is an important one, because information /english/index.htm). ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 263 One difficulty has been to collect and process this informa- BOX 10.1. Reuters Market Light Disseminates Early tion so that it is relevant to individual farmers. Another has Warnings to Mitigate Risk been to transmit the information to rural populations in poorly connected areas in cost-effective ways. ICT applications The main task of Reuters Market Light (RML) is to give have made it easier and cheaper to achieve these objectives. farmers price information to increase their bargaining power in markets, but it also provides early warning There is some doubt about whether an early warning alone information that can be used to mitigate risk. Two pieces can help farmers mitigate risk. Many of these causal links of the service are particularly relevant here: have not been tested empirically. Latent demand for advice  Farmers receive daily SMS messages containing in addition to warnings appears to exist, but it is not clear weather information for their particular locations. whether farmers are willing to pay for such advice delivered This information includes predictions of rainfall, using ICT or whether the private sector can deliver such humidity, and inclement weather. information sustainably. Public sector and development insti-  Farmers receive three types of news for crops tutions should remain active in this space and keep a close specified when they subscribe to the Reuters eye on pilots in countries such as India, Uganda, and Kenya. service: (1) news regarding outbreaks of pests or diseases, (2) news and analysis from global markets, and (3) government policy information RECENT ICT APPLICATIONS FOR RISK regarding, for example, farmer support programs, MITIGATION schemes, and subsidies. Farmers in many countries receive news of impending bad That timely weather forecasts might help mitigate risk is weather and catastrophic events, pest and disease out- not difficult to ascertain, as this anecdote from Reuters breaks, and price volatility in commodity markets. The use indicates. A farmer is quoted as saying, “I got message of ICT has reduced the cost and increased the profitability on relative humidity going up to 70 percent. As a precau- of providing this information, which has attracted private tion, I put a spray of US$10. My friend did not know this. sector participation in a space traditionally dominated by He lost nearly US$8,000 of his crop that day.” state extension services or agricultural institutes. The pri- Source: Authors, drawing on Reuters 2007, Preethi 2009, and Mehra vate sector originally developed services to provide market 2010. price information, but most of these services have evolved to deliver news about impending catastrophic and inclem- ent weather. 13 Indian states in 8 local languages (Mehra 2010). The infor- mation is delivered directly to farmers’ mobile phones through Risk-Mitigating Information SMS. RML subscription cards can be purchased from local The quintessential example of applying ICT to agriculture shops, input suppliers, banks, and post offices. is the Indian agribusiness giant ITC and its e-Choupal ser- vice (http://www.itcportal.com/rural-development/echoupal Rigorous, empirical evaluations have yet to be carried out to .htm), detailed in Module 9. This extensive network provides determine the quantitative relationship between information approximately 4 million farmers with information on market availability and the implications for risk mitigation. A prelimi- prices, the weather, pest and disease outbreaks, and expert nary study in Sri Lanka concluded that 40 percent of post- advice. The service is free; ITC profits by using its informa- production losses could be mitigated with timely information tion service kiosks to procure commodities and market agri- (Mittal, Gandhi, and Tripathi 2010). From an internal study, cultural inputs to farmers (ITC 2010). Thompson Reuters claims that through information sharing, an estimated 1 million farmers in over 15,000 villages have Reuters Market Light (http://www.marketlight.org/), detailed in used the service and received high returns on their invest- Module 3, modifies the information delivery model of e-Choupal ment, amounting to over US$4,000 from additional profits by eliminating the kiosks and reaching out directly to farmers and US$8,000 on saved costs, far exceeding the service fee (box 10.1). Developed by the Thompson Reuters information (International Chamber of Commerce 2010). company, the service provides highly personalized, profes- sional information to India’s farming community. It covers over Through the Esoko platform (http://www.esoko.com/) 250 crops, 1,000 markets, and 3,000 weather locations across described in Module 3, West African farmers and traders I C T I N AG R I C U LT U RE 264 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT receive targeted, scheduled text messages on commod- FIGURE 10.1. Ownership of Radios and Mobile Phones ity prices or offers from buyers. The focus is on creating a in Ghana, Kenya, and Zambia, 2010 transparent, stable market and reducing transaction costs. 100% Radio Similarly, the Kenya Agricultural Commodity Exchange (http:// 90% www.kacekenya.co.ke/) makes prices on the exchange avail- 80% Mobile 70% phone able by text message (KACE 2010). These services improve 60% farmers’ ability to negotiate prices and serve to partially 50% 40% mitigate price risk. Even so, they cannot mitigate the more 30% significant price volatility that originates in global markets. 20% 10% Research institutes are also innovating in the delivery of 0% Ghana Kenya Zambia Total information services. MTT Agrifood Research Finland is Source: InterMedia AudienceScapes Surveys 2010. piloting the EVISENSE project (https://portal.mtt.fi /portal/page/portal/mtt_en/ruralenterprise/tomorrowsfarm /envisenseforecast) to provide 24-hour disease forecasts to best course of action to manage risks in production or respond Finnish farmers using a combination of technologies such as appropriately to early warnings. For instance, weather infor- weather sensors, databases, mobile phone SMS, GPS, and mation and advisory services are in place in many countries online management systems. Sensor networks across the to help stakeholders make optimal decisions from crop plan- country feed weather data to a centralized server. This central- ning to crop sale to manage risks. Again it is important to ized database contains farmer-specific cropping information emphasize that such advisory services are important for risk provided by the farmer. Computer models use the site-specific mitigation because they help farmers translate good informa- data along with the weather data to predict pest outbreaks. If tion into practical actions that reduce their exposure to risk. an outbreak is predicted, farmers receive messages on their Such services enable farmers to interact in various ways mobile phones and can then log onto the Internet to download (such as voice interaction or SMS queries using mobile additional information from a farm management information phones) with an automated database containing best prac- system. The online system recommends which spray agents tices and recommendations to handle most routine queries. to use and when to combat the impending attack. Common queries might include ideal planting times, optimal Through EVISENSE, farmers can mitigate the risk of disease input applications, or suggestions on which crops to plant by spraying their crops with the appropriate pesticide ahead based on market trends. In unique cases, queries are referred of an outbreak. The spraying plan can be sent to the computer to agricultural experts. In other cases, the farmer is able to on the tractor’s sprayer to carry out the spraying. Once it is speak directly with extension personnel. entered into the tractor’s system, the plan can be fine-tuned The mKRISHI service, recently piloted by Tata Consulting using GPS on the tractor and location-specific data on mois- Services in India, is a prototypical example of remote exten- ture, wind, and predicted rainfall from MTT’s SoilWeather sion services that allow two-way interactions. (“Krishi” is system. For example, if rain is predicted within three hours “farming” in Hindi.) A farmer uses the platform to access of spraying, the spraying will be discontinued. This informa- best practices and query agricultural experts through low- tion prevents expensive inputs from being washed away and cost mobile phones, mostly using SMS (Banerjee 2010). damaging the environment (MTT 2009). MKRISHI is not the only program of its kind to offer remote Mobile phones are not the only way to deliver early warning extension services heavily reliant on ICT. Other countries information. Radio remains very important: More farmers have experimented with slightly different ways of linking the are likely to receive information from the radio than from any farmer to extension information. The Kenya Farmers Helpline other source. Recent data show that in Sub-Saharan Africa, (“Huduma Kwa Wakulima”) (http://www.kencall.com/index even among more developed nations, the penetration of .php/site/kenya_farmers_helpline/) was launched in 2009 by radio still exceeds that of the mobile phone (figure 10.1). KenCall, a Kenyan business process outsourcing company, with support from the Rockefeller Foundation. Instead of Decision Support Systems using SMS, farmers call the Helpline and speak to an agricul- Besides fostering the delivery of timely and accurate informa- tural expert in English or Swahili (Lukorito 2010). Kisan Call tion to mitigate risk, ICT applications also act as decision sup- Centre (India) and Jigyasha 7676 (Bangladesh) are similar port systems. These systems help stakeholders choose the operations that provide customized, expert advice to farmers. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 265 Radio (a traditional source of extension advice) is becom- LESSONS LEARNED ing a more interactive source of advice with the advent of A number of insights emerge from recent experiences in mobile phones and call-in (or text-in) programs. The African using ICT to mitigate agricultural risk. One important insight Farm Radio Research Initiative (http://www.farmradio.org is that the missing link in providing risk-mitigating information /english/partners/afrri/) of Farm Radio International (http://www to farmers was not the information itself but the challenge of .farmradio.org/) creates content that can be broadly described aggregating, personalizing, and disseminating it in a timely as agricultural extension information, including weather and cost-effective way. The content that farmers need is forecasts, price news, and early warnings about pests and already produced by universities and government institutes. diseases. (For details, see Topic Note 6.2.) Any use of ICT applications to mitigate agricultural risk must ensure that the fundamental requirements described above Supply Chain Integration and Traceability are present or can be developed easily. For example, farmers’ ICT applications are also helping supply chains become more familiarity with ICT should be assessed before initiating an vertically integrated. Better cooperation between farmers and intervention. Similarly, there should be a baseline understanding buyers along the supply chain mitigates default risk. Amul in India of whether farmers have the capacity to make good use of the has installed Automatic Milk Collection Unit Systems in village information. Do farmers have access to rural finance, markets, dairy cooperatives. These systems enhance the transparency of transportation, technology, inputs, and so on? If not, consider transactions between the farmer and the cooperative and have awareness and education programs regarding risk-mitigating lowered processing times and costs. The application uses com- strategies or appropriate responses to early warnings. puters connected to the Internet at the milk collection centers to document supply chain data such as fat content, milk volumes One difficulty in providing early warning or advisory services procured, and amount payable to the member (Bowonder, Raghu to farmers was not that the information was lacking, but that Prasad, and Kotla 2005) (for considerably more detail, see IPS “IT it could not be delivered effectively. ICT applications make it Tools for India’s Dairy Industry,” in Module 8). easier to collect information from the universities and insti- tutes that produce it and then to personalize it and provide it Dairy Information Services Kiosks at collection centers directly to farmers. The medium matters, however. A radio describe best practices in animal care to enhance milk yield announcement is different from a phone call, which is again and quality and assists dairy cooperatives to effectively different from a text message. schedule and organize veterinary, artificial insemination, cattle feed, and related services (Rama Rao 2001). Delivery Collaboration between the private and public sectors is increasing. of such comprehensive information helps to improve inte- The public sector generates early warnings and provides expert gration of the supply chain, thus reducing default risk. The advice, while the private sector has found that it can leverage ICT early detection of production volatility makes it possible to applications (particularly mobile phones and back-end data collec- take preemptive measures to address the underlying risk. tion and processing systems) to deliver this content to farmers quickly. Profitability remains a challenge. In many instances, the ICT applications, particularly GIS and RFID technologies, have had upfront investment and capital costs (such as the cost of invest- an impact in mitigating two additional forms of risk in the sup- ing in weather and ICT infrastructure), as well as the operational ply chain: sanitary and phytosanitary (SPS) risk and default risk. costs, are high. A longer-term horizon and significant economies Larger aggregators and traders use software systems to collect of scales are required to break even. and track information about who is growing what and whether farmers are adhering to the food safety and quality standards The ability to deliver highly personalized information is another imposed in Europe and North America, especially for perishable key to earning revenue. Farmers naturally want information foods. Traceability technologies and software to increase integra- relevant to themselves—their crops, their plant and livestock tion in supply chains, such as Muddy Boots (http://en.muddyboots disease, their markets—in the language they speak. It is difficult .com/) (see Module 10), help to mitigate default risk when suppli- to elicit direct payment for services from farmers, but if farmers ers rely on large numbers of small-scale farmers. Fruiléma (http:// see a value proposition, they are often willing to pay for a service. www.fruilema.com/), an association of fruit and vegetable produc- ers and exporters in Mali, launched a Web platform for potential As a result, private participation in delivering information buyers to track the entire mango production chain and enables should be encouraged where possible, but the commercial Fruiléma to comply with Global G.A.P. standards (see IPS “Mango sustainability of such initiatives should be analyzed rigor- Traceability System Links Malian Smallholders and Exporters to ously. Information service providers should be encouraged to Global Consumers” in Module 11). partner with the public sector to source content. It is difficult I C T I N AG R I C U LT U RE 266 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT to imagine that the private sector would find IMAGE 10.2. The mKRISHI Interface it profitable to invest in generating content as well as delivering it (unless delivering it to farmers they contract). State-funded institutions have been critical partners in sharing their knowledge and resources without cost. Cooperation and connectivity are critical between information distributors (mobile application developers) and informa- tion creators (universities, news organiza- tions, meteorological services, government data services). Source: TATA Consulting Services. Technology considerations are also critical. Even though farm- Through the advisory service, farmers might inquire how ers can get weather information from the radio, those reports much fertilizer or pesticide to use, so they can optimize their come only at a certain time and are easily missed, because use of these costly inputs. Similarly, farmers might inquire farmers are often in transit or working in the field away from about when to harvest to avoid inclement weather. Farmers the radio. Text messages, which can be stored and accessed with cameras in their phones can submit photographs to at any time, are preferred because they ensure that farmers supplement their messages. While responding to farmers’ receive the critical early warning. Mobile infrastructure is vital queries, experts are able to incorporate soil information by for most services that transmit risk-mitigating information to accessing the soil sensor nearest to the caller’s location farmers (except for services relying on radio). (Pande et al. 2009). Farmers can also request a voice- or SMS-based expert response. New capacities in technology may lead to even better risk miti- gation strategies. The growing sophistication of mobile phones and falling costs of weather sensors make it likely that farmers Growth and Development will soon have access to a richer variety of information that is MKRISHI was conceived and developed at the innovation lab even more tailored to their location, crop choice, and general of Tata Consulting Services (TCS). The first pilot was deployed information needs. Java-enabled phones, for instance, are in 2010 to an estimated 500 farmers in Uttar Pradesh and cheaper and allow farmers to access information using menus Punjab, who pay US$1–2 per month to use the service. The instead of simply sending SMS queries back and forth. Two-way service is being provided at a subsidized cost, as farmers were interaction between farmers and advisers, in which farmers unwilling to pay the unspecified higher cost at which the ser- can ask and receive answers to specific questions, are likely to vice was initially offered (Pande 2010). However, mKRISHI has increase but also to command a premium. A direct connection found that farmers may be more willing to pay if information overcomes literacy and language barriers, though these barriers on market linkages and the facilitation of credit is offered along should also ease as voice recognition technology improves. with the advisory services. Like RML, mKRISHI disseminates a wide range of person- INNOVATIVE PRACTICE SUMMARY alized information; the critical difference is that experts can Through mKRISHI, Farmers Translate Information respond to farmers’ queries. To provide the early warning into Action to Mitigate Risk and news information, the system relies on a Web-based MKRISHI is innovative because it enables farmers to trans- mobile platform that ties into many information sources. form information into risk-mitigating actions (“TCS’ mKRISHI Data are gathered from commodity exchanges, agricultural on Pilot Run in Maharashtra,” Financial Express 2009). The research institutions (often state supported, such as Punjab mKRISHI platform, developed by Tata Consultancy Services Agricultural University), banks, weather servers, local mar- in 2007, enables farmers to access best-practice information kets, and solar-powered weather and soil sensors distributed and agricultural experts through low-cost mobile phones throughout the areas where the service is offered (figure using SMS (Banerjee 2010) (image 10.2). The connection 10.2) (Pande et al. 2009). between agricultural advisory services and risk mitigation is an important one, because information alone is often not To respond to farmers’ queries, mKRISHI relies on an auto- sufficient to manage risk. mated database of frequently asked questions. The database ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 267 FIGURE 10.2. The mKRISHI Infrastructure Source: TATA Consulting Services. Note: CDMA = Code Division Multiple Access, a standard used by mobile phone companies. can handle most questions, which are usually generic, but 1991,643). Again, however, the implication of delivering such more specific or sophisticated questions are forwarded to 10 services remotely is still to be tested. experts with Internet access. These experts interact with a system that resembles email; they are able to see attached As noted, mKRISHI was made available to 500 farmers in photos and soil sensor information with each message, and two Indian states as of 2010, and there are plans to offer their response is sent back to the farmer by SMS. the service across India. There are also discussions about launching similar services in the Philippines and Ghana (Banerjee 2010). Impact, Scale, and Sustainability The sustainability of the mKRISHI platform is still questionable. Farmers reportedly use mKRISHI to choose planting strate- The complexity of the platform and the numerous pieces that gies, optimize fertilizer use, and time the harvest to avoid bad are tied together, from people to technologies to automatic weather. Such choices surely contribute to risk mitigation, sensors, imply a difficult and expensive challenge to sustain- and some early data from the pilot studies and interactions ability. Another challenge is posed by the inability to collect the with farmers show promise in this regard. full marginal cost of the service from farmers (Pande 2010). If productivity increases can be partially attributed to supe- The independent development and implementation of the rior risk mitigation, then indirect quantitative research sug- project by a large private company suggests, however, gests that an agricultural advisory service such as mKRISHI that the program might be able to sustain itself until it can improves risk mitigation. Much evidence supports the idea resolve operational challenges to profitability, which seems that effective delivery of traditional extension services to to be occurring. Much of the basic information comes from farmers improves productivity. Returns to extension services public sources, and mKRISHI has been able to organize and vary by crop and by geography, but studies show them to be personalize it through a large consortium of partners. The quite high: “75–90 percent in Paraguay, 13–500+ percent in ready availability of the basic information (a public good) thus Brazil, and 34–80+ percent in a group of countries in Asia, becomes one of the prerequisites for building and sustaining Africa, and Latin America” (Birkhaeuser, Evenson, and Feder such operations. I C T I N AG R I C U LT U RE 268 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT Topic Note 10.2: ICT APPLICATIONS TO TRANSFER AGRICULTURAL RISK TRENDS AND ISSUES BOX 10.2. How Does Insurance Work? Farmers face many important risks that they can do little to Insurance allows risk to be transferred to a third party mitigate through better agronomic practices or the use of for a fee. In exchange for this fee (premium), a farmer early warning information, as described in Topic Note 10.1. receives an policy or insurance contract that is likely to Among these risks, price volatility and bad weather risk can have the following features, among others: (1) a speci- be particularly devastating. Low prices at harvest can sig- fied time period during which the risk is partially or wholly nificantly reduce a farmer’s income, while weather risk in the borne by the third party; (2) the events that are covered form of floods or droughts can reduce yields or destroy crops. (a single peril such as hail, for example, or multiple perils Farmers (or farmer groups) in developed nations can use such as drought, hail, fire, and theft); and (3) the payout specific instruments to transfer their risk to a third party in in the event that the risk event occurs (indemnity), and exchange for a fee. The third party can be a public or private possibly some gradation of the payout depending on the insurance company in the case of weather risk, or a com- severity of the loss. modity futures exchange in the case of price risk. In develop- The insurance company profits by pooling risk across ing countries, the availability of such instruments is limited, large numbers of clients and charging a premium that although pilot projects are starting to introduce them. exceeds the likelihood of the peril occurring, multiplied by the losses that will accrue as a result. For a peril to be ICT devices are playing a critical role in these pilot studies insurable, the resulting loss has to be definite, accidental, on risk transfer. Advances in mobile phone applications for large, and calculable or able to be estimated; and the total money transfers, improvements in the resolution and cost payout must be limited in the event of a catastrophe. of satellite imagery, and the pyramiding of multiple ICT tools Source: Greene 2010. (mobile phone, GIS, remote sensing data) to create newer applications are all promising trends that could be leveraged to transfer agricultural risks. The heightened volatility of international commodity prices and the threat of climate change have increased developing- problems of moral hazard and adverse selection; insufficient country stakeholders’ interest in risk transfer instruments. data; high administrative costs in delivering the product, Now the bigger challenge is to make risk transfer instru- assessing damages, collecting premiums, and making pay- ments such as insurance and price hedging more relevant ments; and weak institutional and policy environments and affordable for smallholders. The ability of ICT applications (Wenner and Arias 2003). Low trust and financial literacy to reduce transaction costs, deliver information and financial have also limited the effective demand for insurance and transactions, provide real-time data about hazards, and per- limited the willingness to pay for policies (Giné, Townsend, form remote damage assessment can also help in piloting and Vickery 2008). In recent years, a modified form of insur- and scaling up risk transfer instruments. ance, weather-based index insurance, has been piloted in several parts of the world to address the moral hazard and adverse selection challenges and to lower the costs of dam- Instruments to Transfer Risk age assessments (box 10.3). Transferring risk through insurance has several important benefits. Insurance stabilizes asset accumulation by reduc- Farmers can use other means of transferring risk to avoid ing the negative impact of weather shocks. Insurance also the problems caused by large fluctuations in the prices of fosters investment, because it reduces the uncertainty of the commodities they produce. By transferring risk through returns (Mude et al. 2009) (box 10.2). futures contracts traded on commodity futures exchanges, farmers gain a means of managing the price volatility of Insurance contracts are complex, however, and profitable agriculture commodities, which lends greater certainty to insurance operations face numerous challenges. These chal- their production planning and farm investment decisions lenges include the difficulty of designing contracts to avoid (UNCTAD 2009,17–18) (box 10.4). ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 269 BOX 10.3. What Is Index Insurance? knowledge that most farmers or farmer cooperatives do not have. Even in the United States, fewer than 10 percent of The unique feature of index insurance is that it reduces farmers interact directly with commodity futures exchanges. the cost of assessing damage by substituting individual They do make use of futures prices to make planting and loss assessments with an indicator that is easy to mea- production decisions, however (Cole et al. 2008). Efforts are sure as a proxy for the loss. Weather events or visible under way in China (UNCTAD 2009,13) and India to teach vegetation have served as typical indicators. Besides farmers how to make use of futures markets, but ICT applica- reducing transaction costs, another advantage of index- tions do not play a central role (Cole et al. 2008). based insurance is that it reduces problems of adverse selection, because the insured cannot influence the ICT Applications and Risk Transfer Instruments index or the loss assessment. Although ICT applications have made it easier for farmers to The disadvantage is basis risk: the imperfect relationship access information from commodity futures markets, such between the policy holder’s potential loss and the index applications have not served to facilitate greater interaction behavior. It is not always possible to perfectly match with the futures markets to transfer price risk. one farmer’s loss from drought to that of all others. Undoubtedly, some farmers will lose more and some With respect to insurance, however, ICT applications seem less. to be easing constraints arising from the lack of data and high Source: Mude et al. 2009. administrative costs. Data requirements can be intensive; for example, weather insurance contracts require time-series data on weather and associated losses for farmers. High-resolution BOX 10.4. Commodity Futures Markets satellite imagery has made data available to design insurance contracts that once would have been impossible to develop, A recent report by the United Nations Conference given the lack of data in many countries. Advances in ICT can on Trade and Development describes a commodity help overcome gaps in weather data by creating synthetic data exchange as: based on satellite information. Together, new data and lower costs have facilitated the development of innovative index insur- . . . a market in which multiple buyers and sellers ance products that are currently in various stages of testing. trade commodity-linked contracts on the basis of rules and procedures laid down by the exchange. For example, AGROASEMEX (http://www.agroasemex.gob Such exchanges typically act as a platform for trade .mx/), a Mexican national insurance institution focused on the in futures contracts, or for standardized contracts rural sector, was a pioneer of indexed weather insurance (and for future delivery. Often, in the developing world, a now offers catastrophic risk insurance). In 2007, the institution commodity exchange may act in a broader range of began to offer an insurance product for pasture land based ways, in order to stimulate trade in the commodity on an analysis of vegetation detected by satellite (called sector. This may be through the use of instruments Normalized Difference Vegetation Index, or NDVI) (IFAD and other than futures, such as the cash or ‘spot’ trade WFP 2010,65–73). Satellite data also allowed the International for immediate delivery, forward contracts on the Livestock Research Institute (ILRI) and its partners to over- basis of warehouse receipts, or the trade of farm- come data limitations and create an index-based livestock ers’ repurchase agreements for financing. insurance program in which damage is assessed through Source: UNCTAD 2009,17. remote sensing (see IPS “ICT Enables Innovative Index-Based Livestock Insurance in Kenya,” later in this note). In Nicaragua and Honduras, synthetic data were created through Like insurance, commodity futures exchanges have signifi- a public-private partnership in collaboration with the local cant requirements, particularly with regard to policies, regula- meteorological agency. Three insurance companies (Equidad in tion, and financial literacy. Exchanges must be governed by Honduras and LAFISE and INISER in Nicaragua) currently use clear rules, operated transparently, and regulated properly to these data to design index insurance contracts for farmers. ensure the level of confidence that traders demand. Such institutional capacity is often limited in developing nations. Another novel insurance scheme, Kenya’s Kilimo Salama The trading of futures contracts also requires specialized (http://kilimosalama.wordpress.com/), is described in the I C T I N AG R I C U LT U RE 270 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT innovative practice summary at the end of this note. It uses providers need to be regulated to ensure that they can weather indicators as a proxy for input losses. deliver on payouts. The application of ICT to risk transfer products has yet LESSONS LEARNED to mature, and interventions should be undertaken with extreme caution. This topic note describes promising Compared to the range of applications for risk mitigation, ICT examples, but any attempt to replicate them should take applications to transfer weather and price risk to third parties the local context into account. Furthermore, the current are limited. Risk transfer instruments such as insurance and pilot programs should be subject to impact analysis to futures contracts have fared poorly in developing countries in quantify their value. In the meantime, efforts can focus on general. Such instruments often require well-developed insti- improving the coverage and quality of ICT infrastructure, tutions and high levels of financial literacy, which are often improving the institutional framework required to support lacking in rural areas of developing countries. risk transfer products, and improving the awareness of transfer products and their proper use among farmers and The critical message here is that ICT applications reduce the cooperatives. cost of delivering insurance and improve the dissemination of prices from international futures markets, but by themselves they are unlikely to foster widespread use of risk transfer instruments. Before ICT tools can be used to transfer risk, INNOVATIVE PRACTICE SUMMARY the environment must be conducive. Appropriate infrastruc- ICT Enables Innovative Index-Based Livestock ture, institutional structures, and policies for developing and Insurance in Kenya delivering such instruments must be in place. Farmers must ICT has enabled International Livestock Research Institute exhibit sufficient demand for the instruments. High levels (ILRI) and its partners to overcome data limitations and pro- of financial literacy and technical skills are also required. hibitive administrative costs to create an index-based livestock Technical expertise is absolutely vital for accessing and inter- insurance product. Damage is assessed by remote sensing, preting satellite data and designing actuarially sound policies. and the insurance is distributed through wirelessly connected point-of-sale systems deployed across the country. Unique partnerships are essential to incorporate ICT into risk transfer products such as index insurance. The array of ILRI, part of the Consultative Group on International partners must have the vital technical skills just described Agricultural Research (CGIAR) (www.cgiar.org), developed and must be able to access distribution channels, provide its Index-Based Livestock Insurance product (http://www.ilri financial support, and assist with implementation. There is .org/ibli/) in 2009 in collaboration with a wide array of part- a role for the public sector to develop and disseminate basic ners, including private and government players (ILRI 2009). information about risk, because such information in the public Initiated in 2010, the pilot program provides farmers with domain facilitates the creation of risk markets. Governments livestock insurance for 6–8 animals per year for a premium of can also have a role in planning emergency response to infre- US$50–100 (Waruru 2009). quent but catastrophic risks, while allowing private markets to handle insurance. Partners must also be willing to collect Index-based livestock insurance seeks to interrupt the downward data and make it available for insurance companies to price spiral of vulnerability, drought, and poverty in northern Kenya—a policies correctly or, in the case of index insurance, to create process that is exacerbated by climate change. Northern Kenya the index that links weather events to specific losses. is home to 3 million pastoralist households and is prone to severe droughts (Mude et al. 2009). Pastoralists earn a livelihood by An enabling regulatory and policy environment is funda- grazing cattle (also sheep, pigs, and poultry) on semiarid to arid mental for risk transfer tools to work and is characterized land and by selling meat, milk, and eggs (image 10.3). Livestock by such traits as the rule of law, contract enforcement, and account for 95 percent of family income in an area where the private property rights. For commodity markets, a rules- or incidence of poverty is 65 percent, the highest in the country principles-based approach to regulation and governance, (FAO–AGAL 2005,3). If a drought occurs, the vegetation that the instead of a discretionary approach, is essential for success cattle graze upon is lost. Cattle starve, depriving vulnerable pasto- (UNCTAD 2009). In the case of insurance, the insurance ral families of their sole source of income. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 271 Livestock insurance allows IMAGE 10.3. Pastoralism in Africa Is a Critical Means to Rural Livelihoods farmers to pay a premium to transfer the risk of livestock dying in a drought to an insur- ance company. If a drought occurs, the policy indemnifies the pastoralists’ loss. Previous insurance programs were not sustainable. The administrative costs of assessing the losses of remote pastoral communi- ties, collecting premiums, and paying out indemnities were prohibitive. It is unclear whether the advent of ICT will make such programs more sustainable, because other factors affect sustainabil- Source: Curt Carnemark, World Bank. ity, such as creating effective demand or minimizing basis risk. Programs such as index- Statisticians used data on livestock losses for Marsabit based livestock insurance are being attempted, however, District, the pilot region, to create an index to predict live- because ICT applications greatly reduce the administrative stock mortality based on the remotely collected vegetation costs that crippled previous programs. As noted, ILRI’s data (image 10.4). This procedure allowed for actuarially fair index-based program was designed using satellite data; pricing of the index insurance (Mude et al. 2009). damages are assessed by satellite; and delivery, premium collection, and indemnity payments are all done through The project is being implemented with Equity Insurance Agency, wireless point-of-sale systems. UAP Insurance Limited, Financial Sector Deepening Kenya, and three government departments: the Kenya Meteorological Growth and Development Department, the Ministry of Development of Northern Kenya and Other Arid Lands, and the Ministry of Livestock (ILRI 2009). Much of the technical work on the insurance product was done by Cornell University and the University of Wisconsin Two significant operational challenges arose: creating BASIS program in collaboration with Syracuse University effective demand and delivering the insurance cost- and the Index Insurance and Innovation Initiative. As with effectively. Education by way of experimental games the design of any index insurance, the challenge was to proved critical to generate effective demand. Before a find sufficient data on both the peril as well as the indicator. farmer would pay for an insurance program, he or she Both kinds of data are necessary; data on the indicator are would need to understand what value the product added used to statistically predict the peril and price the insurance and how it would work. The challenge was exacerbated correctly. by low literacy (Mude et al. 2009). The innovation in this case was to use vegetation as the In a vast region with so few market channels, cost-effective indicator, because vegetation can be measured objectively delivery of the insurance product was also a significant chal- by satellite to indicate the level of drought. Fortunately, lenge. Policies were sold through Equity Bank’s point-of-sale the United States’ National Oceanic and Atmospheric system based on handheld mobile devices, which have been Administration has collected the high-quality imagery nec- rolled out to 150 areas across northern Kenya. This channel essary to construct a Normalized Difference Vegetation was primarily developed for another program (DFID’s Hunger Index since 1981, and the imagery is available free of Safety Net Program). charge. I C T I N AG R I C U LT U RE 272 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT IMAGE 10.4. Normalized Difference Vegetation Index, commercially viable premium loadings. Because willing- Marsabit District, Kenya, February 2010 ness to pay is especially price sensitive among the most vulnerable pastoralists (i.e., those not currently caught in a poverty trap, but on the verge of falling into one) for whom the product is potentially most beneficial, subsidization of asset insurance as a safety net intervention may prove worthwhile. Simple simulations find that relatively inexpen- sive, partial subsidization targeted to households with herd sizes in specific ranges can significantly increase average wealth and decrease poverty, at a rate of just $20 per capita per one percent reduction in the poverty headcount rate.” Chantarat et al. 2009 This last point has implications for sustainability, which faces substantial financial hurdles if the product cannot be com- mercially viable. The development and pilot of the program were funded by Financial Sector Deepening Trust in Kenya, the UK Department for International Development (DFID), and USAID (Waruru 2009), but plans to expand nationally would require substantial private investment. There are also questions of dependency on other programs. The satellite data, for example, are critical. If they are lost, there would be sustainability concerns. Similarly, the point-of-sale system used to deliver the insurance is funded Source: ILRI. by a separate program; any changes to that program might threaten the insurance program. Impact, Scalability, and Sustainability It is too early in the pilot stage to assess the program’s actual effectiveness in managing risk and ultimately reducing pov- INNOVATIVE PRACTICE SUMMARY erty. An evaluation is to be conducted by the University of Kilimo Salama Delivers Index-Based Input Wisconsin at the end of the pilot. The results will help design Insurance in Kenya through ICT any modifications in the insurance program and influence The Kenyan insurance scheme Kilimo Salama (http:// decisions on scaling up the pilot to other areas. The plan is to kilimosalama.wordpress.com/) (its name means “safe farm- expand the program throughout the country if it proves suc- ing” in Swahili) innovates by using mobile phones to collect cessful in Marasabit District (Mude et al. 2009). Meanwhile, premiums and distribute payouts, thereby reducing assess- an ex ante assessment of the insurance found that: ment and administrative costs. Weather indicators are used as a proxy for the loss of inputs. Under Kilimo Salama’s . . . household initial herd size—i.e., ex ante wealth—is the “pay-as-you-plant” model, agrodealers sell insurance policies key determinant of IBLI [index-based livestock insurance] according to the quantity of inputs purchased. performance, more so than household risk preferences or basis risk exposure. IBLI works least well for the poorest, Kilimo Salama was developed by the Syngenta Foundation for whose meager endowments effectively condemn them Sustainable Agriculture in partnership with Safaricom, UAP to herd collapse given prevailing herd dynamics. By con- Insurance, MEA Fertilizers, and Syngenta East Africa Limited. trast, IBLI is most valuable for the vulnerable nonpoor, for The program specifically insures the cost of inputs in case of whom insurance can stem collapses onto a trajectory of poor weather over the planting season. Plans are in place to herd decumulation following predictable shocks. offer a crop loss product in addition to the input loss insurance. District-level aggregate demand appears highly price The premium amount is 10 percent of the input cost, which elastic with potentially limited demand for contracts with is shared equally by farmers and the input companies ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 273 (50 percent each). The farmer thus pays a premium of the payout was 30 percent of the investment (“First Micro- 11 cents on a bag of higher-yielding corn seeds that costs Insurance Plan Uses Mobile Phones and Weather Stations to US$2.20 or 31 cents on a 10-kilogram bag of fertilizer that Shield Kenya’s Farmers,” Science Daily, 2010). sells for US$6.20 (Kilimo Salama n.d.) The value of the insurance generally is not disputed, but When the products are sold, the seller activates the insurance Kilimo Salama has just finished the pilot program and impact policy using the Kilimo Salama application on the seller’s hand- has yet to be rigorously assessed. Even so, the business set by (1) scanning a product-specific bar code with the camera model, privately cofinanced by input sellers, seems to be phone, (2) entering the farmer’s mobile number, and (3) linking growing on its own. In 2010, 12,000 farmers had registered the farmer to the local weather station (image 10.5). The buyer for the insurance, and there were plans to make the product receives an SMS confirming the insurance policy (“First Micro- available to 50,000 farmers in Kenya by 2011 (Ogodo 2010). Insurance Plan Uses Mobile Phones and Weather Stations to IMAGE 10.5. Weather Station in Kenya Shield Kenya’s Farmers,” Science Daily, 2010). ICT applications are used in every part of the operation. Thirty solar-powered weather stations automatically monitor the weather; paperless channels are used to sell product; the Safaricom 3G network is used to cheaply and quickly transmit monitoring, sales, and payout data; and M-PESA (owned by Safaricom) is the platform used to make indemnity payments electronically. The Kenya Meteorological Department provided the supporting weather data to create the index and correlate it to crop losses and therefore to input-investment losses (Ogodo 2010). Each insurance policy sold requires the farmer to be registered to the nearest weather station (Ogodo 2010). If there is excess rain or insufficient rain, as measured by the weather report- ing stations, the index correlating rainfall and crop growth defines the payout due. Then the payment is made straight to the farmer’s handset using M-PESA (see IPS “M-PESA’s Pioneering Money Transfer Service,” in Module 2). The insurance program was piloted to 200 farmers linked to two weather stations in 2009 in Laikipia District. There was a drought in both areas, and 80 percent of the input invest- ment was returned to farmers linked to one weather station, whereas the other station reported a less severe drought and Source: Syngenta Foundation. Topic Note 10.3: ICT APPLICATIONS FOR COPING WITH AGRICULTURAL RISK TRENDS AND ISSUES activities, disrupt them, or, in the worst case, shut them Regardless of the best efforts to mitigate or transfer risk, agri- down (Jaffee, Siegel, and Andrews 2010,21). Coping involves cultural production is inevitably susceptible to risks of floods, responding to a shock in ways that immediately curtail further droughts, and disease, among others. Such risks, when they losses in the short term, protect remaining life and assets in materialize, can force farmers to deviate from their agricultural the medium term, and enable recovery in the long term. I C T I N AG R I C U LT U RE 274 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT Left to their own devices to cope with unmitigated risks, India created an SMS-based reporting service to track animal farmers typically employ strategies that are expensive in the health. Fieldworkers collected information about the health long run. They may quickly sell productive land and other of animals and reported it to the directorate for analysis via assets at below-market prices to generate cash; deplete per- text message (E-Agriculture 2008). MKRISHI helps farmers sonal savings, if they have any; pull children out of school; cope with similar shocks. If an outbreak occurs, farmers or borrow at high interest rates (Cole et al. 2008). Farmers can submit photos or describe the outbreak through SMS also turn to their social networks for support, but this strat- to receive assistance in identifying the disease or pest and egy does not work when entire villages are affected. When recommendations for managing the outbreak. a farmer loses crops to floods, he or she may not be able to rely on family members in the same village who have suf- The Community-Level Crop Disease Surveillance Project fered the same fate. (CLCDS), discussed in an innovative practice summary fol- lowing this note, takes this activity a step further. Piloted in To prevent people from resorting to expensive coping strate- Uganda by the Grameen Foundation, the project employs gies, governments and relief organizations attempt to quickly community knowledge workers to help identify diseases and identify and assist those affected by shocks. Timely assistance advise on control methods. can stem further losses and begin the recovery process. Assistance might be provided in the form of food vouchers, Another significant challenge in coping with shocks is the low-interest loans, technical assistance to resume productive need to disburse transfers and remittances rapidly to affected activity, subsidized fertilizers, and loan cancellations. farmers, many of whom have limited access to formal finan- cial services. The advent of mobile money has dramatically eased this constraint, making it faster for farmers to receive remittances from their social networks or receive transfers RECENT APPLICATIONS from governments and relief agencies. A few ICT applications are used to cope with agricultural shocks such as droughts, floods, and disease outbreaks, but The leader in this space is Safaricom’s M-PESA (http://www they are proving important and potentially transformative. .safaricom.co.ke/index.php?id=745), a money transfer system First, ICT applications such as mobile phones (particularly that allows individuals to deposit, send, and withdraw funds those equipped with GIS and cameras) can be used to collect using SMS. M-PESA has grown rapidly, and is currently reach- information after a shock about the extent of the damage, ing approximately 38 percent of Kenya’s adult population. numbers of individuals affected, and who needs relief. These The M-PESA model has been copied with little modification field data have proven vital to relief efforts, especially for bet- worldwide (Jack and Suri 2009,6), but it has yet to be applied ter targeting and coordinating an effective response. Second, specifically to agricultural risk. (See IPS “M-PESA’s Pioneering ICT tools (particularly mobile phones) have been used to Money Transfer Service,” in Module 2, for an overview.) address the problem of disbursing remittances or aid vouch- ers to individuals affected by agricultural shocks. Farmers are A Zambian company, Mobile Transactions (http://www difficult to reach and lack access to financial institutions, but .mtzl.net/), delivers electronic payments, vouchers, and loan increasingly they have mobile phones. disbursements using mobile phones, scratch cards, and a countrywide agent network (see the innovative practice The use of ICT applications to assess the nature and extent summary following this topic note). The voucher system of risks and improve the coordination and targeting of cop- primarily targets organizations that regularly make transfers ing strategies has been particularly noteworthy for disease to a large number of beneficiaries, such as the World Food outbreaks. Rapid assessment and response are critical to Programme. controlling disease outbreaks. Only after a farmer has recog- nized the symptoms and identified the disease can he or she Another promising approach is the combined application adopt the appropriate control methods. of remote sensing, GIS applications, and crowdsourcing technologies to allow real-time damage assessment. Aside Mobile technologies are being used to collect information from improving the identification of affected areas, real-time from the field to assess damage or monitor outbreaks. assessments reduce the time lag between the shock and the For example, to monitor the threat of bird flu, the Animal delivery of assistance. These tools have not yet been used Husbandry and Veterinary Services of the Government of in response to agricultural shocks, but their use in response ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 275 IMAGE 10.6. Map of Flood Reports, Pakistan The combination of trained person- nel and information services delivered through various ICT channels might be the most effective way to help farmers cope with disease outbreaks that require a rapid response. The ICT applications serve to reduce the training required, which in turn reduces the administra- tive costs of such programs. Reducing the required qualifications also expands the supply of people eligible for the job. Public institutions, governments, and NGOs often play a big role in helping farmers cope with risks. ICT applications can equip these institutions with better tools to manage their social safety net programs. Mobile money and electronic vouchers seem to have matured suffi- ciently to be replicated in other contexts and incorporated into plans to transfer Source: A screenshot of the Pak Relief homepage. funds to farmers affected by a drought or flooding. Similarly, information ser- to catastrophic floods in Pakistan suggests that agricultural vices that empower people without formal education in applications are worth examining. agriculture to serve as agricultural extension workers might also be a replicable approach, provided that the infrastruc- Crowdsourcing has become more sophisticated through ture and human capacity are present. Their effectiveness, platforms such as Ushahidi (http://www.ushahidi.com/), however, should be determined first. Finally, because ICT which have the capacity to aggregate, synthesize, and visu- applications for risk coping are still maturing, their incorpo- alize data on a map. The software allows anyone with access ration into a risk coping strategy should ensure that alterna- to the Internet or mobile technologies to submit reports of tive coping mechanisms can be used in the event that the damage or requests for assistance. These reports are veri- technology fails. fied manually or automatically using computer programs. The data are then synthesized onto a GIS map, which relief and recovery agencies use to target and coordinate their response. Ushahidi is open source software and has been INNOVATIVE PRACTICE SUMMARY Electronic Vouchers Are a Targeted, Traceable quickly set up following catastrophic events such as the Lifeline for Zambian Farmers earthquakes in Haiti and Chile and the floods in Pakistan (IRIN 2010) (image 10.6). Mobile Transactions (http://www.mtzl.net/) is a private Zambian company that began operating in January 2010. Through mobile phones (image 10.7), scratch cards, and a national network of agents, the company provides access to LESSONS LEARNED banking services for rural Zambians. It has also designed a There is much to learn regarding the robustness or effective- voucher system for organizations that regularly make trans- ness of applying ICT to cope with risk. Based on the limited fers to a large number of beneficiaries, such as food vouch- experience to date, early preparation and deployment seem to ers that help rural people cope with shocks such as droughts be the keys to success. Damage assessment tools, electronic and floods. voucher systems, or disease response advisory services can- not be deployed quickly after a shock occurs; they must be in The vouchers are quickly delivered through the Mobile place beforehand as a part of a robust disaster response plan. Transactions system in a targeted, transparent, and traceable I C T I N AG R I C U LT U RE 276 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT IMAGE 10.7. Transactions Using Mobile Phones The remaining step is to register benefi- ciaries, who are identified by their national identification cards and assigned a unique number. The unique reference number on each voucher card can be linked to any registered beneficiary number. This link- age is made using a mobile phone when the beneficiary collects the voucher by presenting his or her national identification card. Redemption of the voucher requires the following steps: (1) the farmer takes the scratch card to an authorized retail agent; (2) the Mobile Transactions system validates the card against the farmer’s beneficiary PIN on the voucher, which is revealed by scratching; and (3) if the Source: Mobile Transactions Zambia. system responds with a national identifi- cation number that matches the identifi- way. Between January and August of 2006, the World Food cation card the farmer presents, the retailer provides the Programme used the system to deliver food subsidies worth subsidized product. The retailer, in turn, (4) receives an US$500,000 to 32,000 Zambian recipients. FAO used Mobile electronic payment into his or her account in the Mobile Transactions to subsidize the purchase of agricultural imple- Transactions system. Finally (5), this transaction becomes ments worth US$600,000 for 6,000 recipients (Hesse 2010). visible to the client immediately through the Internet-based system. How the Voucher System Works The electronic money service is simpler than paper vouch- Operationally, there are two key aspects to the mobile ers. Agents throughout the country who have gone through voucher system: (1) setup and voucher distribution, and the setup process are able to accept money from individual (2) voucher redemption. Farmers themselves do not need payers and transmit the payment to the recipient using the phones; nor is continuous mobile coverage necessary mobile phone and a unique code. The recipient can use that (McGrath 2010). unique code to redeem his or her payment from a nearby agent for cash. Mobile Transactions clients sign a contract and an account is set up for them to deposit the funds they wish to disburse. They are also given access to an Internet-based system that Impact, Scalability, and Sustainability indicates the level of funds disbursed, when, and to whom The World Food Programme has not yet used the Mobile (WFP 2010). Transactions system to help people cope after a shock. The infrastructure is there, however, in the event that Vouchers can be redeemed only for subsidized items (food, food rations need to be increased to allow farmers to farm implements, and so forth) at previously authorized retail cope with threats to food security. Most such threats in locations. The participating retailers are given a phone and a Zambia are agricultural: floods, droughts, and cattle dis- Mobile Transactions account and are trained to use the sys- ease (WFP 2010). tem. Retailers are also familiarized with the paper vouchers. Once the client and retailers are set up, the client deposits No rigorous impact evaluation of this electronic voucher funds into the Mobile Transactions account at a regular bank. system has been conducted. Though quite different in This money is credited to the client’s account within the some respects, the impact of mobile money might be Mobile Transactions system. used to approximate the impact of the Mobile Transactions ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 277 FIGURE 10.3. Value and Quantity of Electronic Voucher issues. This summary is concerned largely with their role Transactions in Zambia, 2010 in helping communities cope with risk. Electronic vouchers 25,000 $800,000 The Community-Level Crop Disease Surveillance Project $700,000 (CLCDS) provides Ugandan farmers with real-time advice 20,000 for coping with pest and disease outbreaks. CLCDS $600,000 $500,000 was piloted in Bushenyi and Mbale districts between 15,000 $400,000 December 2008 and August 2009 as part of the Grameen 10,000 $300,000 Foundation’s larger Community Knowledge Workers $200,000 project (http://www.grameenfoundation.applab.org/section 5,000 /community-knowledge-worker-project). $100,000 – $– Primary funding for the pilot came from the Bill & Melinda 0 10 0 0 0 0 0 0 -1 -1 -1 -1 -1 r-1 -1 g- ay ar b n n Gates Foundation. Community knowledge workers in the l Ap Ju Au Fe Ja Ju M M pilot districts used mobile phones equipped with extension Number of transactions Value (US$) information to identify diseases and offer advice about con- Source: McGrath 2010. trol methods (image 10.8). The workers were also trained to collect disease outbreak data and transmit it to experts. With system. Studies of Kenya’s M-PESA indicate there are the data, experts can recommend appropriate responses. If significant impacts. Those relevant to risk are: (1) more this can be done quickly, individual outbreaks can be con- efficient risk sharing though the expanded geographic tained before they become epidemics (Grameen Foundation reach of social networks; and the (2) facilitation of timely 2010a,66). transfers of small amounts of money, which enable sup- port networks to keep shocks manageable (Jack and Suri 2009,11). Development and Growth CLCDS responds to the gap between scientific recom- Mobile Transactions has grown rapidly over its brief exis- mendations and on-farm practices in controlling crop dis- tence, from 2,500 voucher transactions worth US$60,000 eases. The difficulty of collecting timely data on spreading in January 2010 to about 23,000 transactions worth diseases and the limited effectiveness of on-farm control US$700,000 in August 2010 (figure 10.3). The company is methods aggravate disease epidemics, which reduce crop working to replicate the model internationally through part- yields, quality, and income at the household, community, ners in Zimbabwe. and national levels (Grameen Foundation 2010a,58). In Uganda, three diseases threaten banana production. Of Mobile Transactions earns revenue from fees charged, these, banana bacterial wilt alone is responsible for losses which are approximately 5,000 kwacha (ZMK), or about of US$70–200 million in Uganda (Grameen Foundation US$1.08 per transaction. The company is searching for 2010a,59). additional capital to supplement the financing it has already received from venture capital firms and grants. It also hopes For CLCDS, Grameen Foundation partnered with the to begin transferring payments on behalf of the Government International Institute of Tropical Agriculture (IITA), the of Zambia. National Agricultural Research Organisation (NARO), and MTN-Uganda (a mobile network operator) to develop and test a disease surveillance system. They used several ICT tools to bridge the gap between agricultural experts and INNOVATIVE PRACTICE SUMMARY farmers: mobile phone applications, a centralized database Community Knowledge Workers in Uganda Link of disease information, and GIS. The community knowledge Farmers and Experts to Cope with Risk workers tie all of these people and pieces together. Community knowledge workers are also discussed in detail in Module 4, which considers gender implications; To respond comprehensively to farmers’ queries, knowl- as well as in Module 2, which focuses on regulatory edge workers had access to seven information services I C T I N AG R I C U LT U RE 278 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT IMAGE 10.8. Community Knowledge Workers Source: Grameen Foundation. (Gantt and Cantor 2010), several of which offer the kinds interactions with smallholder farmers (Gantt and Cantor of information needed to mitigate or cope with risk. See 2010). The initial group of 38 CKWs has now grown to 98 box 10.5 for details. operating in eastern Uganda (Grameen Foundation 2010b). By the end of the pilot, knowledge workers had trained over Impact, Scalability, and Sustainability 3,000 farmers in the appropriate methods for banana disease The CLCDS team recruited and trained 38 community identification, preventive measures, and control procedures. knowledge workers, who completed over 6,000 surveys The CKWs were estimated to have reached 500–1,000 farm (2,991 related to banana disease) and had more than 14,000 households in their communities (Grameen Foundation BOX 10.5. Information Services Used by Community Knowledge Workers in Uganda  Google SMS Farmer’s Friend. A database of locally relevant, organic tips and advice, plus a three-day and seasonal weather forecast. The knowledge worker searches the database through codes sent via SMS. (See IPS “Farmer’s Friend Offers Information on Demand, One Query at a Time,” in Module 2.)  Google SMS Trader. A user-generated trading bulletin that provides farmers with the contact details of trad- ers and vice versa through SMS posting and notifications. Developed in partnership with MTN-Uganda and Google.  AppLab Question Box. Community knowledge workers phone this service to speak to an operator with access to an Internet database and expert agricultural advice from NARO. This tool was developed in partnership with the NGO Open Mind and NARO.  CKW Search. A series of forms, presented in Java, guides community knowledge workers through a menu to search for agronomic techniques for banana and coffee production. Content was provided by NARO, the Uganda Coffee Development Authority, and IITA. (continued) ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 279 BOX 10.5. continued  Input Supplier Directory. An SMS-based keyword search service gives the location and contact details of shops offering specific agricultural inputs such as seeds, pesticide, and fertilizer. Content was provided by the Uganda National Input Dealer Association.  Banana Disease Control Tips. Preloaded HTML pages show control measures for specific banana diseases. Content was provided by IITA.  Market Prices. An SMS-based keyword search service gives retail and wholesale prices for 46 commodities in 20 markets. Information provided by FIT Uganda, a local market price provider. The AppLap Question Box and CKW Search draw from a database that the project team has built and continues to expand and refine. This database of actionable agricultural information is populated by agricultural research organiza- tions and other experts and reviewed by an Expert Review Board for further dissemination to farmers through knowl- edge workers. Sources: Author; Grameen Foundation 2010b. 2010b). Farmers reported increased revenue and decreased develop a plan of preventive measures and allow the rapid losses upon using the helpline information to treat livestock dispersal of information that would decrease the spread and plant diseases (Gantt and Cantor 2010). of the disease. The GIS data could then help scientists to pinpoint sites to collect plant samples of new or suspicious CLCDS also showed how a mobile survey system could disease reports for subsequent diagnosis in the laboratory enhance scientists’ ability to monitor disease outbreaks in (Gantt and Cantor 2010). real time and deliver information to farmers in remote areas through the knowledge workers, particularly to areas where Given the pilot’s success, CLCDS will be scaled up with extension officers and agricultural researchers do not regu- additional support from the Bill & Melinda Gates Foundation larly visit (Grameen Foundation 2010a,66). Once CKWs sub- over four years to provide the service to 200,000 farmers mitted their survey results, scientists could access and view across Uganda (Grameen Foundation 2010a). The bottle- the data directly from the Web and download the results neck is the limited number of knowledge workers. Grameen for analysis. The surveys provided data showing the spatial Foundation is training new ones and attempting to partner distribution of banana disease in the communities. The team with existing extension services (Grameen Foundation of scientists viewed thousands of digital photos of disease 2010b). Farmers are not currently charged for the service symptoms, which knowledge workers submitted with their (they are compensated for participating in surveys, how- surveys (Gantt and Cantor 2010). ever), and it is not yet clear how the program will continue when external funding ends. With this information, scientists could map disease incidence. Over time, they began to better understand the spread of dis- The operational success of the CLCDS to date has depended eases, the adoption of control techniques in different areas, on the ability to (1) recruit excellent knowledge workers; and how these and many other factors intersect to impact (2) make information accessible to them through mobile farmers’ livelihoods. This information is used to prioritize phone applications; (3) train them in disease identification actions and communicate recommendations to farmers via and control; (4) train them in the use of ICT tools for data the knowledge workers (Grameen Foundation 2010a,67). collection and effective dissemination of information; and (5) maintain partnerships with experts to verify and analyze Having up-to-date information that included details of the information to provide actionable advice to support the exact locations of a disease, agricultural experts could knowledge workers. I C T I N AG R I C U LT U RE 280 MOD ULE 10 — IC T A PPLIC ATIONS FOR AGR ICULTURA L RISK MANAGEM ENT ACKNOWLEDGMENTS ECX (Ethiopian Commodity Exchange) Operations. 2010. http:// www.ecx.com.et/Operations.aspx, accessed September 2010. The author thanks the following people for their time on the phone and over email: Jeff Groesbeck at MIT’s Legatum FAO (Food and Agriculture Organization). 2006. “About US.” FAO Rural Radio. http://www.fao.org/sd/ruralradio/en/23589/index Center; Professor Tavneet Suri at MIT Sloan; Brad McGrath .html, accessed September 2010. and Hans Hesse at Mobile Transactions in Zambia (McGrath FAO–AGAL (Food and Agriculture Organization Livestock Sector 2010; Hesse 2010); and Roy Tubb at MTT Agrifoods Research Analysis). 2005. “Livestock Sector Brief: Kenya.” Rome. Finland. Farm Radio International. 2010. “African Farm Radio Research Initiative (AFRRI).” http://www.farmradio.org/english/partners /afrri/, accessed September 2010. 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Washington, DC: World Bank. .scidev.net/en/news/satellite-insurance-to-pay-farmers-if-land -turns-b.html, accessed October 2010. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 283 Module 11 GLOBAL MARKETS, GLOBAL CHALLENGES: IMPROVING FOOD SAFETY AND TRACEABILITY WHILE EMPOWERING SMALLHOLDERS THROUGH ICT TINA GEORGE KARIPPACHERIL (World Bank), LUZ DIAZ RIOS (World Bank), and LARA SRIVASTAVA (Webster University) IN THIS MODULE Overview. The market for safe and traceable food can exclude small-scale producers who lack the resources to comply with strict standards. Wider access to information and communication technology (ICT) may lift some of these barriers. The proliferation of mobile devices, advances in communications, and greater affordability of nanotechnology offer poten- tial for small-scale producers to implement traceability systems and connect to global markets. This module examines the effects of food traceability requirements and describes traceability systems implemented in the developing world. For small-scale producers, group systems development and certification may ease some of the constraints in imple- menting traceability systems, along with capacity strengthening in selecting appropriate technologies for traceability. Networks and partnerships with public, private, or nonprofit organizations can help finance and build traceability systems. Traceability technologies implemented for high-value crops may also expand smallholders’ ability to reach key markets. Topic Note 11.1: The Importance of Standard Setting and Compliance. Traceability is becoming an increasingly com- mon element of public (both regulatory and voluntary) interventions and of private systems for monitoring compliance with quality, environmental, and other standards. Stringent food safety and traceability requirements trigger new transac- tion costs for small-scale producers without adequate capital investment and public infrastructure. This note provides an overview of the wide and growing array of public and private standards, domestic and international standards, and data standards, with special attention to issues that impinge on developing countries’ capacity to comply with them.  Mango Traceability System Links Malian Smallholders and Exporters to Global Consumers Topic Note 11.2: Traceability Technologies, Solutions, and Applications. Smallholders face serious challenges in complying with standards, particularly with tracking requirements. The mobile wireless and nanotechnology revolution offers the potential to change all that as remote producers and smallholders gain access to ICT. Mobile phones, radio- frequency identification (RFID) systems, wireless sensor networks, and global positioning systems (GPS) are some technologies that enable compliance with food safety and traceability standards. They also make it possible to monitor environmental and location-based variables and communicate them to databases for analysis.  ShellCatch in Chile Guarantees Origin of the Catch from Artisanal Fishers and Divers OVERVIEW Traceability is an increasingly common element of public1 Food production and distribution systems are becoming and private systems for monitoring compliance with quality, more interdependent, integrated, and globalized. At the environmental, and other product and/or process attributes same time, escalating and heavily publicized outbreaks of related to food. Small-scale farmers may lack the resources foodborne diseases have raised awareness of the need to to comply with increasingly strict food safety standards, ensure food quality and safety. This need drives much of the particularly traceability requirements. Given the role of technological innovation to trace food consistently and effi- ciently from the point of origin to the point of consumption. 1 Both regulatory (mandatory) and nonregulatory (voluntary). I C T I N AG R I C U LT U RE 284 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES traceability in protecting consumers, ensuring food safety, The International Organization for Standardization (ISO) and managing reputational risks and liability, it is vital to inte- ISO/DIS 22005 (November 20, 2006, N36Rev1) has largely grate and empower small-scale agricultural producers in the adopted this definition; however, it is a bit broader in scope food supply chain through ICT. as traceability is viewed not only as a tool for meeting food safety objectives but also for achieving a number of other objectives in other sectors—for instance, in forestry for chain Defining Traceability of custody traceability, sustainable certifications, geographi- “Traceability” is a concept developed in industrial engineer- cal indicators, or animal health. ing and was originally seen as a tool to ensure the quality of production and products (Wall 1994). Economic literature The EU General Food Law, Article 18 Regulation (EC) from supply-chain management defines traceability as the No 178/2002, defines traceability as “the ability to track food, information system necessary to provide the history of a feed, food-producing animal or substance intended to be, or product or a process from origin to point of final sale (Wilson expected to be used for these products at all of the stages and Clarke 1998; Jack, Pardoe, and Ritchie 1998; Timon and of production, processing, and distribution.”3 In comparison O’Reilly 1998). to some international and commercial standards for trace- ability, the EU does not require internal traceability4 (that is, Traceability (or product tracing) systems differentiate prod- it does not require all inputs to match all outputs) (Campden ucts for a number of reasons. Food traceability systems BRI 2009). allow supply chain actors and regulatory authorities to iden- tify the source of a food safety or quality problem and initi- For food products that are genetically modified, many coun- ate procedures to remedy it. While traceability in the food tries use identity preservation schemes, but only the EU sector has focused increasingly on food safety (Smyth and requires traceability. The EU (Directive 2001/18/EC) addition- Phillips 2002), agrifood and nonfood sectors such as forestry ally defines traceability in relation to genetically modified and textiles (particularly cotton) have instituted traceability organisms (GMOs) and products as: requirements for product identification, differentiation, and . . . the ability to trace GMOs and products produced historical monitoring. Specific standards for food traceability from GMOs at all stages of the placing on the market have been mandated internationally; by law in the European throughout the production and distribution chains facili- Union (EU), Japan, and more recently the United States; and tating quality control and also the possibility to withdraw by private firms and associations. products. Importantly, effective traceability provides a In the context of agricultural policy, traceability refers to full “safety net” should any unforeseen adverse effects be traceability along the supply chain, with the identification of established. products and historical monitoring, and not just the separa- As noted in CAC (2006), traceability can also help identify a tion of products under specific criteria at one or more stages product at any specified stage of the supply chain: where the of the chain. The Codex Alimentarius Commission2 (CAC food came from (one step back) and where the food went 2006) defines traceability as: (one step forward). Simply knowing where a food product can be found in the supply chain does not improve food the ability to follow the movement of a food through safety, but when traceability systems are combined with specified stage(s) of production, processing and distri- safety and quality management systems, they can make bution. . . . The traceability/product tracing tool should associated food safety measures more effective and effi- be able to identify at any specified stage of the food cient (CAC 2006). chain (from production to distribution) from where the food came (one step back) and to where the food went By providing information on suppliers or customers involved (one step forward), as appropriate to the objectives of in potential food safety issues, traceability can enable tar- the food inspection and certification system. geted product recalls or withdrawals. Similarly, the imple- mentation of food safety management systems can support 2 Established in 1963 by the Food and Agriculture Organization of the United Nations and the World Health Organization, the Codex Alimentarius (Latin for “food code” or “food book”) is a 3 “Food Safety,” Europa (official EU website), http://europa.eu/pol collection of internationally recognized standards, codes of prac- /food/index_en.htm, accessed July 2010. tice, guidelines, and recommendations on food, food production, 4 See “Objectives of Food Traceability Systems” in the next sec- and food safety. tion for a definition of internal traceability. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 285 efficient, consistent traceability. For example, prerequisite 2.2 million people die from diarrheal diseases largely attrib- programs such as good agricultural and management prac- uted to contaminated food and water (WHO 2007a). The tices and the Hazard Analysis and Critical Control Point global burden of foodborne illness caused by bacteria, (HACCP) system include requirements for recordkeeping viruses, parasitic microorganisms, pesticides, contaminants that can support requirements for traceability. The areas of (including toxins), and other food safety problems is unknown animal identification, disease prevention and control, nutrient but thought to be considerable (Kuchenmüller et al. 2009). management, production safety, and certification for export all include practices that contribute to the efficacy of trace- Food safety issues have human, economic, and political ability systems. In summary, traceability can: costs. These costs are exacerbated by animal husbandry practices that increase the numbers of human pathogens, ƒ Improve the management of hazards related to antibiotic-resistant bacteria, and zoonotic pathogens in meat food safety and animal health. and dairy products; unsafe agricultural practices involving the ƒ Guarantee product authenticity and provide reliable use of manure, chemical fertilizer, pesticide, and contami- information to customers. nated water on fresh fruits and vegetables; the progressive ƒ Enhance supply-side management and improve influence of time and temperature on globally traded prod- product quality. ucts such as seafood, meat, and fresh produce; the contami- nation of processed food by bacteria, yeast, mold, viruses, The benefits of traceability for consumers, government parasites, and mycotoxins; the presence of foreign objects authorities, and business operators are widely recognized. causing injury to the consumer such as glass, metal, stones, Yet for small-scale farmers in developing countries, espe- insects, and rodents; and the threat of bioterrorism (Safe cially farmers producing horticultural and other fresh food Food International 2005). products, traceability requirements can represent barriers to trade. The market for safe and traceable food can exclude Cases recorded in WHO’s epidemiological records, medical small-scale agricultural producers who lack the resources to journals, and other record systems over several decades comply with increasingly strict standards, particularly require- demonstrate the extent of the problem (table 11.1). The ments for tracking and monitoring environmental and supply Centers for Disease Control and Prevention (CDC) estimated chain variables through sophisticated technologies. that 48 million cases of foodborne illness occur each year in the United States, including 128,000 hospitalizations and Wider access to ICT may lift some of these barriers. The 3,000 deaths.5 The three primary avenues of contamination proliferation of mobile devices, advances in communications, are production, processing, and shipping and handling. In and greater affordability of nanotechnology offer potential for light of global food safety concerns, the WHO Global Strategy small-scale producers to implement traceability systems and for Food Safety, endorsed in January 2002 by the WHO connect to global markets. Mobile phones, radio-frequency Executive Board, outlined a preventive approach to food identification (RFID) systems, wireless sensor networks, and safety, with increased surveillance and more rapid response global positioning systems (GPS) make it possible to monitor to foodborne outbreaks and contamination incidents (WHO environmental and location-based variables, communicate 2002). This approach substantially expands the ability to pro- them to databases for analysis, and comply with food safety tect food supplies from natural and accidental threats and and traceability standards. In the context of food safety and provides a framework for addressing terrorist threats to food smallholders’ participation in global markets, this module (WHO 2008). explores incentives for investing in traceability systems and the prospects for traceability to empower small-scale pro- ducers in the value chain. It includes detailed information on Components of Food Traceability Systems standards, technical solutions, and innovative practices. Not only foodborne illnesses but also globalization, con- sumer demand, and terrorism threats have impelled the dif- Food Safety: A Challenge of Global Proportions fusion and growth of traceability systems in supply chains for food and agriculture. Food is a complex product (Golan, Foodborne disease outbreaks and incidents—including those Krissof, and Kuchler 2004), and modern food production, arising from natural, accidental, and deliberate contamina- tion of food—have been identified by the World Health 5 “Estimates of Foodborne Illness in the United States,” CDC, Organization (WHO) as major global public health threats http://www.cdc.gov/foodborneburden/2011-foodborne-estimates of the 21st century (WHO 2007b). WHO estimates that .html, accessed February 2011. I C T I N AG R I C U LT U RE 286 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES TABLE 11.1. Examples of Food Safety Outbreaks, 1971–2008 YEAR CASE 2008  294,000 children affected by adulterated formula tainted with melamine. More than 50,000 were hospitalized and 6 died. (China)a 2004–05  Aflatoxin contamination of maize caused more than 150 deaths. (Kenya) 2001  Cases of variant Creutzfeldt-Jakob disease (vCJD), which is caused by the same agent as bovine spongiform encephalopathy (BSE), stood at 117 world- wide. A number of animal studies suggest a theoretical vCJD risk from human blood donors in countries associated with the use of BSE-contaminated meat and bone meal and recycling of animals into the animal feed chain.b The BSE (“mad cow”) outbreak was highly publicized by the media. It remains etched in consumer consciousness as an example of an acute breakdown in food safety and quality in the developed world.  E. coli O157:H7, various animal foods, 20,000 cases, 177 deaths in Jiangsu and Anhui provinces. (China) 2000s  Contaminated olive oil. (Spain)  Staphylococcus in milk. (Japan)  E. coli in spinach, carrot juice. (United States)  Listeria in ready-to-eat meat. (Canada)  Salmonella in peanut butter. (United States) 2000  WHO noted the presence of antimicrobial-resistant Salmonella bacteria in food animals in Europe, Asia, and North America, which have caused diar- rhea, sepsis, and death in humans, as well as Enterococci infections, which present severe treatment problems in immunocompromised patients.c 1990s  E. coli in hamburgers. (United States)  BSE. (UK)  Cyclospora in raspberries. (United States/Canada)  Avian influenza. (Southeast Asia)  Dioxin in animal feed. (Belgium) 1999  Salmonella typhimurium, more than 1,000 cases, meat products, Ningxia. (China) 1998  Statistics from the Ministry of Health showed a marked increase in food poisoning attributed to Vibrio parahaemolyticus, from 292 incidents (5,241 cases) in 1996 to 850 incidents (12,346 cases) in 1998. One large outbreak of 691 cases was caused by boiled crabs in 1996; another involved 1,167 cases traced to catered meals in 1998 (Japan). Outbreaks were also documented in Bangladesh, India, Thailand, and the United States.d 1980s  Beef hormones. (EU)  Salmonella in eggs and chicken. (UK)  Alar in apples. (United States)  Hepatitis A in raw oysters, 300,000 cases, Shanghai. (China) 1971–82  Safe Food International, a global consumer organization, cited cases of foodborne illness arising from accidental or intentional adulteration: “During the winter of 1971–1972, wheat seeds intended for crop planting and treated with methylmercury were accidentally distributed in rural areas of Iraq. An estimated 50,000 people were exposed to the contaminated bread, of which 6,530 were hospitalized and 459 died. In Spain in 1981–1982, contaminated rapeseed oil killed more than 2,000 people and caused disabling injuries to another 20,000 many permanently.”e Sources: Compiled by Tina George Karippacheril and Luz Diaz Rios; data on specific cases from (a) Ingelfinger 2008, (b) WHO 2001, (c) WHO 2000, (d) WHO 1999, and (e) Safe Food International (2005). processing, and distribution systems may integrate and detectable in the product. They are also useful for capturing commingle food from multiple sources, farms, regions, product premiums. Segregation systems are used to prevent and countries (Cannavan n.d.). Food products covered by the mixing of novel varieties in the handling of like varieties traceability standards include fresh produce such as man- or to discourage the mixing of a segregated product with like goes, avocados, and asparagus; bulk foods such as milk, products if potential food safety concerns exist. Traceability soybeans, specialty coffee, and olive oil; fish and seafood; systems, on the other hand, allow sources of contamina- and livestock for meat and dairy. This module also touches tion in the supply chain to be identified (Smyth and Phillips on the role of ICT in animal identification, a prerequisite for 2002), which enables a transparent chain of custody, raises implementing livestock traceability in the meat and dairy credibility, and makes it possible to transfer information on sectors. the steps taken to alleviate food safety concerns (McKean 2001). Unsafe food can be recalled because information on Food products may be differentiated through systems of all possible sources and supplies of contaminated food can (1) identity-preserved production and marketing (IPPM), be traced one step forward, one step back, or end to end. (2) segregation, and (3) traceability. IPPM systems are impor- tant for providing information to consumers about the prov- Traceability systems can be classified according their capac- enance of a product when the attributes may not be visible or ity for (1) internal traceability and (2) chain traceability. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 287 “Internal traceability” refers to data recorded within an orga- called critical tracking events. Data captured in critical track- nization or geographic location, whereas “chain traceability” ing events are vital to linking products, both simple and com- involves recording and transferring data through a supply chain plex, within a facility and across the supply chain (IFT 2009). between various organizations and locations involved in the provenance of food. Food contamination may occur at the farm, Traceability data can be static or dynamic, mandatory or during processing or distribution, in transit, at retail or food ser- optional. Static data do not change, whereas dynamic data can vice establishments, or at home. Fundamentally, traceability change over time and through the chain of custody (Folinas, systems involve the unique identification of food products and Manikas, and Manos 2006). “Trace back” implies that a sys- the documentation of their transformation through the chain of tem can identify production/processing steps that resulted in custody to facilitate supply chain tracking, management, and the creation of the product. “Trace forward” implies that a detection of possible sources of failure in food safety or quality. system can identify all derivatives of the product used as an ingredient in numerous other products. Food traceability sys- The smallest traceable unit will vary by food product and tems and definitions in standards, laws, and regulations are industry. Some of the data elements may include the physi- broadly conceptualized to permit producers to determine the cal location that last handled the product, as well as the type breadth, depth, and precision of systems based on specific of supply chain partner (producer, processor, or broker, for objectives (Golan et al. 2004). (For definitions and standards, example); incoming lot numbers of product received; amount see Topic Note 11.1.) “Breadth” denotes the amount of infor- of product produced or shipped; physical location where mation a traceability system captures, “depth” refers to how cases were shipped; lot number of the product shipped to far backward or forward the system tracks an item, and “pre- each location; date/time when the product was received cision” shows the degree to which the system can pinpoint or shipped; date/time each lot was produced or harvested; food characteristics and movement. Figure 11.1 illustrates ingredients used in the production of the product, along with these concepts for the attributes of interest in the stages of corresponding lot numbers; and immediate source of ingre- coffee production. dients and when they were received. Traceability data are recorded through media including but not Good practices in traceability entail making the lot number limited to pen/paper, barcodes, RFIDs, wireless sensor net- and name of the production facility visible on each case of works, mobile devices and applications, enterprise resource product and recording the lot number, quantity, and shipping planning (ERP) applications, and Internet-based applications. location on invoices and bills of lading. Traceability requires Information related to product tracing may be recorded and each facility to record data when a product is moved between transmitted through management information systems or, in premises, transformed/further processed, or when data cap- the case of smaller operations, paperwork such as invoices, ture is necessary to trace the product. Such instances are purchase orders, and bills of lading. Traceability data may also FIGURE 11.1. Coffee: Attributes of Interest and Depth of Traceability Attributes of interest Decaf Fair trade Fair wage Shade grown Non-GE Safety • Processing • Sale from producer Stages of production ?? to wholesaler/retailer • Transporation • Storage • Harvest • Cultivation • Bean/seed Necessary depth of traceability Source: Golan et al. 2004. Note: GE = genetically engineered. I C T I N AG R I C U LT U RE 288 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES be captured directly from products such as fresh produce, sea- standards led producers to reorient their operations (Jaffee food, and livestock. Products may be tagged with barcodes and Henson 2004b). or RFIDs, which store product and associated data. Wireless sensors may transmit data on temperature, spoilage, or loca- Any application of product traceability systems must take into tion to RFIDs tagged to products. Topic Note 11.2 provides account the specific capabilities of developing countries. If detailed information on traceability technologies and systems. an importing country has objectives or outcomes of its food inspection and certification system that cannot be met by an exporting country, the importing country should consider Implementing Food Traceability Systems in Developing providing assistance to the exporting country, especially if it Countries is a developing country. Assistance may include longer time Nearly 500 million people reside on small farms in developing frames for implementation, flexibility of design, and technical countries (Hazell et al. 2006). Their participation in markets assistance (CAC 2006). In recent years, a variety of traceability typically is constrained by inadequate farm-level resources, systems have been implemented in the developing world, farm-to-market logistical bottlenecks, and more general including systems for fresh fruit, vegetables, grain, oilseeds, transaction costs in matching and aggregating dispersed bulk foods, seafood, fish, and livestock (table 11.2). Aside from supplies to meet buyer and consumer demand. These the examples in the table, the Republic of Korea has imple- “traditional” constraints have been amplified and in some mented systems for agricultural product tracing, and Jordan cases surpassed by “new” challenges related to complying has established a framework for product tracing and uses a with product and process standards, including strict trace- national digital database to track and investigate product and ability requirements, set and enforced by governments and disease movement (Hashemite Kingdom of Jordan 2004). private supply chain leaders (Jaffee, Henson, and Diaz Rios, forthcoming). TABLE 11.2. Traceability Systems Adopted in The implementation of traceability systems and assurance Developing Countries standards is controversial (Schulze et al. 2008), but it can TRACEABILITY CATEGORY COUNTRY be especially so in the context of small-scale producers. SYSTEM Weinberger and Lumpkin (2009) have expressed concern Fresh produce that traceability requirements and sanitary and phytosanitary Mangoes Mali issues will increasingly constrict exports of food products Avocados Chile from developing countries, where poor regulation of chemi- Bulk foods cal use, pollutants, and a steep learning curve in traceability Specialty coffee Colombia capacity restrict growers’ and processors’ participation. Green soybeans Thailand Many developing countries lag in developing and implementing Olive oil Morocco food safety and traceability standards, but some have selec- Olive oil Palestine tively met demands in high-income export markets thanks to Seafood regulatory, technical, and administrative investments. From Seafood Chile 1997 to 2003, more than half of the List 1 countries recog- Seafood Vietnam nized by the EU as having equivalent standards of hygiene in Shrimp Thailand the capture, processing, transportation, and storage of fish Livestock and fish products were low- or middle-income countries. Dairy India Jaffee and Henson (2004b) suggest that some countries use Meat Botswana improved food quality and safety standards as a catalyst to Meat China reposition themselves in the global market; the key for devel- Meat Korea, Rep. oping countries is to “exploit their strengths and overcome Meat Malaysia their weaknesses such that they are overall gainers rather Meat Namibia than losers in the emerging commercial and regulatory con- Meat South Africa text.” As an example, the value of Kenya’s fresh vegetable Source: Tina George Karippacheril. exports increased from US$23 million to US$140 million Note: These examples from the agrifood sector include but are not limited to between 1991 and 2003 after stricter food safety and quality issues of food safety. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 289 Support for traceability projects designed to connect small- and linkages to traders, other farmers, or market groups scale producers to global markets comes from a variety of for quality assurance, marketing, and sales. Empowering sources: (1) nonprofit organizations and development agen- Smallholder Farmers in Markets,6 a research project, found cies (such as IICD for Fresh Food Trace in Mali and IFC for that international trader-led linkages can empower smallhold- olive oil tracking in Palestine); (2) governments (Botswana ers to supply high-quality, traceable produce and gain from and Korea for livestock tracking; Thailand and Vietnam for quality-linked awards funded by the trader. For example, seafood); and (3) the private sector (ShellCatch for seafood Italian coffee roaster Illycaffè increased its procurement of tracking in Chile). The sections that follow provide examples superior Brazilian green coffee from smallholders by invest- of how food traceability systems have been implemented, ing significantly in quality assurance training and market particularly in low-income economies. information for smallholders. The company has won com- petitions and awards for best growers and for commanding In addition to support systems for developing countries, mobile above-market prices for the product (Onumah et al. 2007). technology provides new opportunities for smallholders to connect with export markets. Mobile technologies have not Fresh Produce Traceability for Quality Control only alleviated asymmetries in the flow of information from Fresh produce must move quickly through the supply chain the market to smallholders (Muto and Yamano 2009), but also to avoid spoilage. After harvest, fresh produce is handled and hold great potential for enabling the counterflow of informa- packed by a shipper or by a grower-shipper and exported or tion from small-scale producers to markets to meet traceability sold directly or through wholesalers and brokers to consum- requirements (figure 11.2). For example, farmers may use a ers, retailers, and food service establishments. Traceability mobile device to input information on the variety grown, plant- systems track fresh produce along the supply chain to iden- ing and harvest dates, and use of farming inputs. Data captured tify sources of contamination, monitor cold chain logistics, by smallholders can be integrated with information systems and enhance quality assurance. and centralized databases to provide greater transparency to supply chain partners and consumers on the farming process, A good example is the use of RFID technology by an avocado inputs, and output. The integration of wireless sensor net- producer in Rio Blanco, Chile, for temperature and cold chain works, RFIDs, and mobile technology could yield sophisticated monitoring. RFID tags called “paltags” (palta is the Chilean means to capture data during farming and minimize the need word for “avocado”) are attached to the fruit on the tree, and for manual data input through mobile devices. after harvest, the fruit and tags are sorted, washed, waxed, and transported on pallets. The pallets are tagged to monitor By fostering more linkages, socialization, and networks temperature during transport, and should the temperature between small-scale producers, the diffusion of mobile rise above standard levels, the pallets are put back into cold technology can address issues of geographic dispersion storage by quality inspectors at the harbor. Once the pal- lets arrive at the port in California, the temperature is read by handheld readers to ascertain whether the temperature FIGURE 11.2. Mobile Technology as a Key Enabler of has risen above acceptable levels, thus checking quality and Information Counterflow from Farmers safety before shipping the avocados to marketers (Swedborg to Markets 2010; “Awards Honor RFID Innovators,” RFID Update, 2007). Traditional agricultural Fresh produce exporters may also be offered centralized information cooling and shipping services. The Fresh Produce Terminal systems: Provide market information in South Africa tracks fruit into the warehouse and onto ship- to farmers ping vessels, deploying 250 vehicle-mounted computers and 100 mobile computers from Symbol Technologies (Parikh, Patel, and Schwartzman 2009). Traceability systems: Provide farming 6 This research project is implemented through the International information to Federation of Agricultural Producers, European Consortium for markets Agricultural Research, and International Fund for Agricultural Source: Tina George Karippacheril. Development (IFAD). I C T I N AG R I C U LT U RE 290 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES Bulk Produce Traceability for Product Authenticity distributed to farmers with a farm identification number and Bulk produce is more challenging to trace than fresh pro- a specialty coffee program code. The coffee is sold to one of duce. Products such as grain, coffee, olive oil, rice, and milk 35 cooperatives and transported to one of 15 warehouses, from multiple farms are combined in silos and storage tanks, where tags are read by two RFID antennas on either side of making it difficult to trace them back to their sources (IFT a conveyor belt with 99.9 percent accuracy for data and deliv- 2009). ery time. Tags are read at each step of the process, and if the coffee does not meet quality standards, it is rejected and Yet traceability systems for bulk products have been imple- the database is updated. In 2008, the federation extended its mented in developing countries, even among smallholders. program with a pilot to help adapt its traceability model to the For example, the National Federation of Coffee Growers in Tanzanian coffee supply chain. Colombia, a nonprofit organization for 500,000 small farm- ers, identifies and markets high-quality Colombian coffee Consumers may demand systems to trace fertilizer and from unique regions or with exceptional characteristics pesticide in bulk products. In Thailand, for example, export- (“Finalists Unveiled for the Fourth Annual RFID Journal ers require farmers to provide product information regarding Awards,” RFID Journal, 2010). The federation commands a the farm, crop varieties, planting, irrigation, fertilizer applica- 200 percent premium transferred entirely to its growers. Its tion, insect or disease emergence, pesticides or chemicals subsidiary, Almacafe—which handles warehousing, quality used, harvest date, costs incurred, problems, and selling control, and logistics—implemented a traceability system price (Manarungsan, Naewbanij, and Rerngjakrabhet 2005). using RFID tags in 2007 for specialty coffee for its internal Figure 11.3 shows traceability activities carried out along the supply chain, from farms to warehouses and during pro- supply chain for green soybeans, from farmer to broker to cessing, bagging, roasting, and trading for export. Although processor. barcodes were considered first, RFID tags were eventually used because barcodes require line of sight and clear labels Traceability systems for bulk goods are also implemented to be read, which might have been a problem, considering for chain of custody monitoring and quality assurance based that coffee sacks weigh more than 40 kilograms and tend to on consumer demand. Olive oil, a high-value food, is some- be thrown around. times blended and sold by distributors and marketers, and traceability helps identify the source, method, variety, and The RFID tags each cost about US$0.25 (paid by the fed- farm where the crop was harvested, so it becomes easier eration), are encased in a wear-resistant capsule, and are for consumers to determine if the olive oil they are buying FIGURE 11.3. Soybean Traceability System in Thailand Farmer Record activities on the company-provided form Broker With the company’s technician, monitor farmer’s activities Processor Weigh Receive harvested soybean with farmer’s name, quantity, date, variety, area Transfer green soybean to pallet. Prepare label with code Processing Random testing for: Finished product • Standard quality • Pesticide residue Shipping Consumer Source: Manarungsan, Naewbanij, and Rerngjakrabhet 2005. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 291 is genuine. In North Africa, a combination of GPS, mobile Council certification7 requires shrimp farmers to notify the devices, electronic security bolts, and sensors are used for Department of Fisheries five days before harvesting, to end-to-end, real-time monitoring of perishable olive oil ship- facilitate tracing shrimp back to their origin (Manarungsan, ments from Spain and Morocco by Transmed Foods, Inc., Naewbanij, and Rerngjakrabhet 2005). the United States distribution arm of Crespo Foods, and Savi Technologies (Savi Technology 2009). In another example, The Vietnamese State Agency for Technological Innovation an IFC project to improve the competitiveness and export has collaborated with the Vietnamese Association of prospects for West Bank olive oil assists small and medium- Seafood Exporters and Producers and private firms (IBM and sized enterprises in implementing a basic traceability pro- FXA Group) to implement a seafood traceability system. The gram to maintain quality, including managing data related to system is based on RFID technology (“Vietnamese Agency the sources of oil, pressing, handling, storage, and packing Seeks Seafood Traceability,” RFID News, 2009). operations. Livestock Traceability for Disease Control and Product Seafood Traceability for Safety and Sustainability Safety Seafood traceability enhances the value of suppliers’ brands Unlike other food industries, the livestock industry has a long and consumers’ confidence in those brands. For traceabil- history of implementing animal identification and traceability ity, monitoring, and control, data about the farm of origin, systems to control disease and ensure the safety of meat processing plant, current location, and temperature are col- and dairy products. Lessons from livestock traceability sys- lected and made available to participants in the supply chain, tems may apply to other areas of food safety. including wholesalers, shippers, and retailers. If a problem Namibia was an early adopter of such systems in 2004. arises, this information enables a targeted market recall Botswana maintains one of the world’s largest livestock and limits the impact on consumers. Seafood traceability identification systems and had tagged 3 million cattle by is implemented to comply with the EU’s zero tolerance of 2008. Botswana’s livestock identification and trace-back residues of banned antibiotics (chloramphenicol and nitrofu- system uses RFID technology to uniquely identify livestock ran). Thailand, one of the world’s largest shrimp exporters, throughout the country. The system enables access to lucra- saw exports drop steeply to US$1.72 billion in 2002 from tive markets in the European Union, where traceability is a average annual revenue of US$2.3 billion between 1998 requirement for beef from birth to slaughter. A bolus inserted and 2001 (Manarungsan, Naewbanij, and Rerngjakrabhet into the animal’s rumen contains a passive RFID (it has no 2005). The decline caused the Thai private and public sec- battery or moving parts) microchip with a very hard ceramic tors to tighten sanitary measures on chemical antibiotic coating, which does not interact with stomach enzymes or residues in shrimp and adopt probiotic farming techniques, acids. Fixed readers placed at 300 locations scan the bolus disease-resistant shrimp, and laboratory diagnostics and of every animal in the herd to obtain identification numbers, testing. Farmers and cooperatives must register to facilitate information on new registrations, and the status of disease traceability, and quality management systems have been treatments in the herd. The information is relayed to a central implemented to isolate quality and safety issues along the database and on to 46 district offices. Aside from traceability, value chain. The Department of Fisheries has been working the tagging system enables weight and feed to be moni- with farmers to introduce GAP (Good Agricultural Practice), tored, yield to be managed, breeding history to be tracked, a code of conduct for sustainable shrimp aquaculture, and and animals to be selected for breeding (Burger 2003). HACCP standards and to improve product documentation and traceability. Animal identification and traceability systems have numerous applications, such as tracking animal movement, monitoring The department requires farmers to fill out a “shrimp catch- health, controlling disease, and managing nutrition and yield. ing form,” which includes the catch date, total shrimp RFID tagging systems for livestock contain unique identi- weight, name of the farmer, and ID number. Some central fication data and information on the animal’s location, sex, markets also require suppliers and buyers to complete this name of breeder, origin of livestock, and dates of movement. form to enhance traceability. Registering for traceability gives Handheld readers are used to register vaccination informa- cooperative members access to laboratory test services, tion and dates; the data are relayed to a central database. training, and information and experience sharing through networking. They also receive funding of US$1,160 and kits 7 The Marine Stewardship Council develops standards for sustain- to perform their own diagnostic tests. Marine Stewardship able fishing and seafood traceability. I C T I N AG R I C U LT U RE 292 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES The Malaysian Ministry of Agriculture’s Veterinary Figure 11.4 illustrates the 2001 Scottish Borders full trace- Department has introduced a government-run system to ability system for cattle. The system uses RFID ear tags control disease outbreaks among 80,000 cattle. The sys- for unique identification and a portable transceiver and data tem was implemented to increase the competitiveness of logger that transfers data to a farm computer or a central Malaysia’s livestock industry by meeting international import computer for farmers who do not have a personal computer. standards and domestic halal market standards (“Malaysia Begins RFID-Enabled Livestock Tracking Program,” RFID In dairy farming, RFID technology enables unique identification News, 2009). China has a pilot RFID program for 1,000 pigs and monitoring of cattle, their feeding habits, health issues, and in Sichuan Chunyung to track epidemics and enable trace- breeding history to improve yield management. The technology ability from birth to slaughter for consumers (“China Fixes is integrated with feeding machines to determine the correct RFID Tags on Pigs to Track Epidemics,” ICT Update, 2003). amount of nutrition for individual animals. The RFID chip sends In South Africa, the Klein Karoo Cooperative tagged 100,000 data about the animal’s feeding habits, dietary needs, and other ostriches to comply with traceability requirements for meat information to a sensor on the farm. The data are stored in cen- exports to the EU (“Project Klein Karoo Cooperative in South tral databases and analyzed by farm managers and supervisors Africa,” ICT Update, 2003). to monitor the animals’ health and nutritional mix. Korea was another early adopter of animal identification tech- India has introduced cattle tagging for dairy farming in the niques and technologies, using general ear tags from 1978 states of Tamil Nadu and Maharashtra. The BG Chitale Dairy in to 1994, barcodes in 1995, and RFID since 2004. Korea intro- Maharashtra has tagged 7,000 cows and buffalo and plans to duced a full beef traceability system in 2008, in the wake of extend tagging to about 50,000 animals (“Milk Tastes Better the BSE scare, to promptly identify food safety problems and with RFID,” RFID News, 2010). (See IPS “RFID Facilitates ensure end-to-end traceability. Korea also uses DNA markers Insurance Credit for India’s Livestock Producers,” in Module 7.) to trace components of carcasses. Markers recommended by the International Society for Animal Genetics are used for Traceability systems may be implemented to improve the verification (Bowling et al. 2008). global competitiveness of livestock and meat exports, the FIGURE 11.4. Scottish Borders TAG Cattle Tracing System 38-bit code = 12 digit number EID code Matching ear tag number 078594789870 189073940789 UK 123456 380034 067854885888 IE 564871 376896 Activation at 078594789870 UK 345623 734568 134.2 kHz 056714588577 UK 432679 279000 Cattle with RFID 512346778527 transponder in ear tag 789413546048 012453786899 214397869090 UK 674958 578699 Local look-up table held Portable transceiver in portable data-logger and data-logger Data transfer Data link by wire Central as required or modem cattle database 189073940789 UK 123456 380034 067854885888 IE 564871 376896 078594789870 UK 345623 734568 056714588577 UK 432679 279000 Electronic mail messages 214397869090 UK 674958 578699 to national government Identical look-up table held in farm computer database Complete scheme table held in scheme computer Farm computer (or central scheme computer for farmers without a personal computer) Source: From Pettitt 2001, World Organisation for Animal Health (OIE) Scientific and Technical Review. Note: EID = electronic identification; RFID = radio-frequency identification. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 293 quality of meat, and the chain of custody traceability. Beef is In traditional societies, traceability is inherent, because produc- placed in refrigerated trucks and containers and sealed with a tion and consumption occur in the same place, but comply- sensor bolt and a tag for identification. Shipments are tracked ing with modern traceability requirements for faraway global to ensure that they do not remain in one place for too long. markets poses a challenge for small-scale producers with At key points in the supply chain, such as when the beef is few resources. For example, complying with recordkeeping unloaded after it has been shipped from the port, the tag is read arrangements associated with food safety assurance through with a mobile reader to check for evidence of tampering prior HACCP-based systems, with their detailed traceability systems, to unloading, and tag data are stored in supply chain databases. requires widespread education and cooperation throughout the supply chain (Unnevehr and Jensen 1999). To understand trace- Namibia, which started tracking beef in 2004, was one of ability applications for fresh produce and horticultural products, the earliest emerging market adopters of advanced technolo- bulk produce, seafood, and livestock, small-scale producers will gies to ensure quality and traceability (Collins 2004). A pilot need to master a considerable range of skills and information. program executed through a public-private partnership with Savi Technology involved the application of RFIDs and sensor Although traceability capacity might have some positive bolts to containers of chilled and frozen beef shipped from effects on domestic markets in developing countries, by and Namibia to the UK as part of the Smart and Secure Tradelanes large traceability systems are unidirectional—they track the initiative extended to African ports. In March 2009, Namibia chain of custody of food exported from developing countries issued new animal identification regulations, which required to developed countries. Developing-country farmers who are livestock producers to identify cattle with one visual ear tag unable to meet traceability requirements run the risk of being and one RFID ear tag. Cattle must be individually registered marginalized. Jaffee and Masakure (2005) found that produce in the Namibian Livestock Identification and Traceability export markets in Kenya relied on the exporters’ own farms System. Namibia has also set up a veterinary fence to avoid for products that required traceability; products demanding contamination: Cattle from northern Namibia cannot be less traceability came from small-scale outgrowers. exported and must be consumed locally, and cattle from southern Namibia are protected from diseases and exported Some evidence indicates that the global movement toward to Europe. Namibia also sources non–genetically modified stricter food safety and traceability requirements has trans- (GM) maize from South Africa at a premium to ensure that lated into stricter demands in domestic markets in develop- beef sold in Europe is considered non-GM. ing countries. For example, the rise of supermarkets in Latin America, with their quality and safety procurement standards Basic technologies for animal identification and traceability and associated recordkeeping requirements, had a negative have applications other than food safety and food security. impact on smallholder participation, although some cases of Cattle rustling threatens human security in East Africa, a region success were noted where there was public or private tech- characterized by nomadic movements of people with livestock nical assistance (Reardon and Berdegué 2002). over vast and hostile terrain. The Mifugo Project (mifugo is Swahili for “livestock”)—ratified by Ethiopia, Kenya, Sudan, The costs associated with implementing traceability systems Tanzania, and Uganda—seeks to prevent, combat, and eradi- include investments in capital and infrastructure, recordkeep- cate cattle rustling in East Africa (Siror et al. 2009). Traditional ing, and improvements in harvesting and processing. Unlike methods of identifying cattle are harmonized with technologi- small-scale producers, large-scale producers and industry cally advanced approaches for unique identification, tracking, associations are better equipped to upgrade their operations and recovery of stolen animals. Livestock tags may be queried in compliance with traceability standards; the added cost of remotely using the Internet, SMS, and wireless communica- recordkeeping is small compared with the potential financial tion through mobile phones to track and monitor animals. damages of a product recall (Spencer 2010). The questions that remain, then, are who pays for the cost of implementing food traceability systems, particularly in the case of smallholders, and how sustainable those systems can be in the long run. KEY CHALLENGES AND ENABLERS Implementing traceability technologies for food safety and other With respect to business processes, an important challenge purposes does not come without its challenges. Broadly speak- involves the poor integration of organizations in the value ing, the main challenges lie in data collection, processes, techno- chain. Proprietary tracking systems allow tracing one step logical solutions, business models, costs, and learning. Some of forward or back, but they rarely allow traceability through the these challenges are discussed in more depth in the topic notes. full life cycle of a product. Organizations in a value chain may I C T I N AG R I C U LT U RE 294 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES be reluctant to share proprietary commercial data about a in most developed countries, are small but advanced with product, with the exception of requirements for recalls. respect to traceability, a situation that could lend itself well to sharing experiences with small-scale farmers in developing Studies from the industrial sector, where traceability systems countries (Setboonsarng, Sakai, and Vancura 2009). It could and techniques originated, emphasize that the main difficul- provide insights into the most effective ways to implement ties lie in the design of an internal traceability system for a traceability systems and the internal and external capacities given, complex production process (Moe 1998; Wall 1994). A and resources needed for smallholders to upgrade success- study of traceability in the United States, undertaken by the fully and comply with safety and traceability requirements. International Institute of Food Technologies (IFT), found that challenges are related to both external and internal traceabil- Incentives to invest in traceability systems also act as ity. External traceability requires accurate recording and stor- key enablers for their development and use. Investments age of information on products and ingredients coming into are often driven by regulation and access to markets, the a facility and information on products leaving a facility. This long-term costs associated with public product recalls, the requirement frequently proves problematic, because industry proliferation of certification systems and standards (Heyder, partners in a food supply chain may not consistently record Hollmann-Hespos, and Theuvsen 2009), and pressure from and store the lot number of the incoming product or case. influential external stakeholders such as retailers, consum- For internal traceability, data on ingredients and products that ers, lenders, and NGOs. may undergo transformation within a facility must be tracked. In some cases, there may be confusion in the assignment of Yet investments in traceability systems offer viable benefits new lot numbers for products that do not match the incom- and incentives for actors in the supply chain, including swift ing lot number for products that enter a facility and undergo and precise recalls of unsafe food; premium pricing for safe, transformation. Industry practices on data capture, recording, sustainable, and traceable food; cost savings and business storage, and sharing also vary widely. Paperwork is often process efficiencies; and greater consumer confidence, inconsistent or incomplete, individual products or lots may among others (figure 11.5). It is worth exploring some of not be labeled with unique identifiers, and standardized defi- these incentives in detail, because they offer potential nitions for data elements may be lacking (IFT 2009). For small-scale producers, group systems development and FIGURE 11.5. Incentives for Investment in Traceability certification may ease some of the constraints in implement- Systems ing traceability systems. The GlobalGAP standard (www .globalgap.org), for example, allows group certification for smallholders to facilitate their access to markets. Small- Legislation scale farmers and producers may also benefit from capac- Food safety ity strengthening in assessing and selecting appropriate Quality certification improvements systems and technologies for traceability; building networks and partner- standards ships with public, private, or nonprofit organizations that can help finance and build traceability systems; and traceability schemes facilitated through smallholder cooperatives or Cost savings Costs and risks and business the public or private sector. Finally, traceability technolo- Investment of product process in recall gies implemented specifically for high-value crops may also efficiencies traceability expand smallholders’ ability to reach key markets. systems Golan, Krisoff, and Kuchler (2004) have argued that mandatory Global Price competition / traceability requirements that allow for variations in traceabil- premiums access to ity or target specific traceability gaps may be more efficient markets than systemwide requirements. They may be better suited Rise of Consumer to varying levels of breadth, depth, and precision of traceabil- supermarkets confidence ity in different firms.Developed countries’ experiences with traceability may in some cases be useful for building similar capacity in other countries. Japanese farms, unlike those Source: Tina George Karippacheril. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 295 insights for preventing the adoption of systems that exclude outbreak, and in the absence of traceability capabilities, smallholders. Among smallholders, clearly the benefits of the United States Food and Drug Administration issued an establishing or investing in traceability systems should be import alert, denying all Guatemalan raspberries entry into balanced in relation to the associated costs, with consider- the United States. The number of raspberry growers declined ations for the long-term sustainability of those investments. dramatically, from 85 in 1996 to 3 in 2001. Producers around the world noted the devastating effects of the ensuing trade Preventing Recalls of Unsafe Food restrictions on the entire industry and the role traceability systems could have played in reassuring the public and Food traceability systems make it possible to take a proac- containing the problem to a few growers (Calvin, Flores, and tive approach to food safety and prevent the reputational Foster 2003). and economic damage—to producers, products, firms, and nations—inflicted by product recalls. For example, the com- Gaining Premium Prices for Safe, Traceable Food plex recall of contaminated peanut products in the United States is estimated to have been one of the most expensive As noted, traceability systems and technologies are also used in that country (figure 11.6). to certify geographical origin, certify sustainable production processes, monitor the chain of custody, facilitate identity pres- A well-known case of the potential damage of a recall for ervation and product marketing, and manage supply chains. a young industry in a developing country occurred with Some of these applications enable producers to earn price raspberries in Guatemala. Following reports of a Cyclospora premiums for sustainable, certifiable, and identifiable specialty FIGURE 11.6. Peanut Corporation of America Recall National food chain Ice cream Ice cream Ice cream Store shop shop shop Store Store Store Peanut Ingredient granules manufacturer & distributor Peanut meal Food manufactuer Dry roasted Distributor Bakery Bakery Bakery peanuts Bakery Store Store Store Store Vending Oil Food machine roasted manufactuer peanuts Distributor Store Store Store Food Vending manufactuer machine PCA Vending Food machine Vending manufactuer Distributor company machine Peanut butter Food Store Store Store Distributor manufactuer Distributor Peanut Food paste Distributor manufactuer Distributor Store Store Store Nursing homes Caterers Restararnt Source: Adapted from U.S. Food and Drug Administration. I C T I N AG R I C U LT U RE 296 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES food products. The Almacafe model, discussed earlier, enables Building Consumer Confidence smallholders to command a 200 percent premium for specialty Traceability not only ensures food quality but also builds coffee from unique regions in Colombia—strong motivation for consumers’ trust by making the supply chain more trans- farmers to adopt traceability technologies. parent (Bertolini, Bevilacqua, and Massini 2006). Consumer confidence builds demand for products. Studies suggest In Honduras, the ECOM Agroindustrial Corporation, whose that consumers in developed countries may be willing customers are willing to pay high prices for high-quality, to pay more for safe and traceable food. A study in Korea traceable products, supports farmers through technical assis- (Choe et al. 2008) found that consumers were willing to tance and training (Pfitzer and Krishnaswamy 2007). With pay a premium for traceable food and to purchase it in initial technical support, women belonging to a shea butter greater quantities. A consumer preferences study of trace- cooperative in Burkina Faso learned to use GPS to document ability, transparency, and assurances for red meat in the the source of the shea fruit they processed and gain certifica- United States suggests that consumers are willing to pay tion under Bio-Ecocert and Bio-NOP, which guarantee that a for traceability and that the market there for traceable food product is 100 percent natural and has been manufactured may be profitable (Dickinson and Bailey 2002). Although under conditions that respect human and environmental traceability systems tend to be unidirectional, consumers health. Certification enabled them to enter more lucrative in domestic markets in the developing world may also export markets—despite the fact they that are small-scale, benefit from their countries’ adoption of traceability tech- predominantly illiterate producers. (See Module 8 for details.) niques and systems. Topic Note 11.1: THE IMPORTANCE OF STANDARD SETTING AND COMPLIANCE TRENDS AND ISSUES (Senneset, Forås, and Fremme 2007), especially smaller- Increasing concerns about global food safety have positioned scale operations, which tend to record traceability data on traceability as an important component of food safety and paper. Data standardization is vital for end-to-end traceabil- quality regulations, management systems, and certification ity. There are multiple, globally recognized standards but no processes. Stringent food safety and traceability requirements standard nomenclature to describe how the data should look trigger a new set of transaction costs for small-scale produc- or be organized, and software applications vary. Many parts ers without adequate capital investment and public infrastruc- of the food supply chain do not use standardized formats for ture (Pingali, Khwaja, and Meijer 2007; McCullough, Pingali, data. The variety of traceability software in use makes data and Stamoulis 2008). As a result, one of the main challenges integration difficult (Bechini et al. 2005). A unified approach in designing food traceability systems—and ensuring small- to traceability across supply chains would promote rapid holder participation—is the development of fair, adequate, and and seamless traceability, including Web-based, open, and broad food safety standards. Some studies have found that interoperable standards for end-to-end tracking systems. the introduction of safety standards associated with traceabil- ity requirements may lead smallholder farmers to switch to Public Standards products with fewer transaction costs. It has also been argued Public sector interventions in food safety view it as a public that stringent safety standards introduced in Kenya’s fresh good. Regulatory (mandatory) or nonregulatory (voluntary) green bean industry were responsible for smallholders’ deci- public interventions are designed to provide consumers with sion to switch to processed green beans (Narrod et al. 2008).8 basic food safety and provide information about the nature of the food. Public sector interventions usually take the form An additional issue is data standardization. Although trace- of product or process standards but also comprise analytical ability implies an end-to-end process in the supply chain, procedures, inspection and certification systems, and the only a few links in supply chains actually use software for provision of public information. Food safety standards cover traceability. Many organizations exchange data manually a wide range of parameters, including harmful substances in food (additives, pesticide residues, veterinary drug residues, 8 More recent work has found mixed effects on stricter food safety and traceability requirements in this industry (Jaffee, Hen- and other contaminants) and residues in animal feed. Process son, and Diaz Rios forthcoming). standards—establishing how food is produced, prepared, ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 297 treated, and sold—include standards for genetically modified agreements to prevent misuse of standards as barriers to organisms (GMOs), food hygiene, labeling, packaging, and trade. Private food safety standards do not fall under harmo- requirements on traceability. nized World Trade Organization guidelines. Their legitimacy and transparency are the subject of intense debate owing to Private Standards their proliferation, prescriptive nature, potential to undermine public food safety, and potential economic development In recent years, stricter public standards and regulations for impacts, particularly for small-scale producers in developing food safety have been accompanied by a growing set of stan- countries. Many of the difficulties that small-scale producers dards developed by the private sector. Private food safety reportedly encounter in applying private food safety stan- standards, frequently characterized as surpassing require- dards relate to traceability, which is an area in which private ments imposed through public standards, have emerged as food safety standards exceed Codex recommendations a strategy to assure consumers that products meet a high (CAC 2010). level of regulatory compliance. As mentioned, traceability is mandated by law in the EU For example, private standards for particular attributes of and Japan (for specific commodities). Until recently, exten- food products might be higher and therefore perceived as sive traceability was stipulated in the United States by the more stringent or more extensive than public standards. private sector for reasons including improved supply chain Some private voluntary standards incorporate requirements management, differentiation of products in the market, and related to traceability. Examples include standards dealing product recall (Golan et al. 2003). With the passage of food with social and environmental goals (fair trade, sustainably safety regulations HR2749 and S.510, the United States has harvested products), as well as geographical indications and strengthened recordkeeping and traceability requirements. certification marks, which are generally applied to differenti- ate products (often as part of a marketing, branding strategy, The participation of developing countries in setting standards or sustainable development strategy). These standards are and assistance from developed countries in implementing not discussed in detail here. them are particularly important. Traceability systems are by and large unidirectional, and exporting countries must Domestic and International Standards accommodate different systems for verification and control Although food safety standards may be set nationally, World from major importing countries. This situation increases the Trade Organization agreements on technical barriers to trade administrative burden and costs of compliance (CAC 2009). for testing, inspection and certification, and sanitary and Table 11.3 lists examples of food traceability requirements phytosanitary matters form an international framework of related to food safety and/or security. TABLE 11.3. Examples of Food Traceability–Related Regulations and Standards, with Particular Application in Food Safety and Security CLASSIFICATION ORGANIZATION DEFINITION OF STANDARD AND REQUIREMENTS International agreement Codex Alimentarius Commission Codex defines traceability as “the ability to follow the movement of a food through specified stage(s) of production, processing, and distribution.” Movement can relate to the origin of the materials, processing history, or distribution of feed or food, forward or backward. Traceability is referenced in several Codex texts, such as the Codes of Practice on good animal feeding and Codes of Practice for fish and fish products. Domestic regulation Food Safety Act, 1990 (UK) The law radically transformed food safety management in the UK and provided a strong stimulus for private sector management of food safety by including “due diligence” requirements, making firms responsible for the safety and quality of food inputs, the conduct of suppliers, and the safety of consumers. Domestic regulation EU General Food Law, Article 18 of “The ability to track food, feed, food-producing animal or substance intended to Regulation (EC) No. 178/2002 be, or expected to be used for these products at all of the stages of production, processing and distribution.” Domestic regulation Bioterrorism Preparedness Act, 2002 Requires the maintenance of records of manufacture, processing, packing, trans- (United States) portation, distribution, receiving, holding, and importation of food to allow iden- tification of immediate previous sources and immediate subsequent recipients of food, including its packaging, to address threats of adverse health consequences or death of humans or animals.a (continued) I C T I N AG R I C U LT U RE 298 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES TABLE 11.3. continued CLASSIFICATION ORGANIZATION DEFINITION OF STANDARD AND REQUIREMENTS Domestic regulation Food Sanitation Law, 2003 (Japan) The 2003 law requires full traceability for beef. A recent bill (2010) requires trace- ability for rice and rice products. Domestic standard French National Organization for “Traceability in agriculture and the food industry sector is applied mainly to two Standardization (AFNOR, Association combinations, i.e., product/process (progress), and product/localization (loca- Française de Normalisation) tion). Traceability can be described, as it were, as a combination of the flow of substances and that of information.”b Domestic regulation Food Safety Enhancement Act, HR 2749, The act, which passed the House in 2009 and the Senate in 2010, gives the Food 2009; S.510, 2010 (United States) and Drug Administration greater regulatory powers to ensure food safety, including establishing a national food traceability system, and imposes specific requirements on foreign suppliers. Each person who produces, receives, manufactures, processes, packs, transports, distributes, or holds such food would be required to maintain records to identify the immediate previous sources of such food and its ingredients and the immediate subsequent recipients of such food. Restaurants, grocery stores, and farms would also be required to keep records, with some exemptions as provided by the act.c International standard ISO 22000:2005 Establishes requirements for food safety management systems based on HACCP principles, as well as traceability requirements. International standard ISO 22000:2007 International standard for traceability in the food and feed sectors. Complementary to ISO 22000:2005. Private standard Produce Traceability Initiative* Produces a common framework and standards to help the fresh fruit and vegetable industry maximize the effectiveness of trace-back procedures through consistent nomenclature and protocols for end-to-end connectivity and traceability.d Private standard GS1 Global Traceability Standard (GTS) Supports implementation of traceability systems across the supply chain both locally and Programme (GTC) and globally, including the requirements of ISO 9001, ISO 22005, HACCP, British Retail Consortium Global Standard, International Food Standard, and GlobalGAP. Private standard for primary GlobalGAP (Formerly EurepGAP)† HACCP-based reference standard for good agricultural practices, with traceability production as a key obligation. “A traceability system is referred to as the totality of data and operations that is capable of maintaining desired information about a product and its components through all or part of its production and utilization chain. Traceability systems contribute to the search for the cause of nonconformity and the ability to withdraw and/or recall products if necessary. The objective of these requirements is to ensure that any product sold as certified is produced from material that originates from certified farms.” Global Food Safety Initiative Includes: British Retail Consortium Standards or schemes benchmarked by GFSI must comply with the “GFSI Guidance (GFSI) benchmarked standards Global Standard, International Food Document” (GFSI 2007), which contains commonly agreed-on criteria for food (private initiative)‡ Standard, Dutch HACCP, Safe Quality safety standards against which any food or farm assurance standard can be Food (SQF) 1000 and 2000 Codes, FS22000 benchmarked. With respect to traceability, the GFSI guidance document indicates in 6.1.17 that the standard shall require the supplier to develop and maintain appropriate procedures and systems to ensure: identification of any outsourced product, ingredient, or service; complete records of batches of in-process or final product and packaging throughout the production process; and a record of purchaser and delivery destination for all products supplied. Source: Tina George Karippacheril and Luz Diaz Rios with information from (a) FDA 2009, (b) FMRIC 2007, (c) Johnson et al. 2010, and (d) Produce Traceability Initiative 2010. * Sponsored by the Canadian Produce Marketing Association, GS1 US, Produce Marketing Association, and United Fresh Produce Association. † Standard benchmarked by GFSI. ‡ GFSI was launched by the Consumer Goods Forum in 2000. GFSI brings together the chief executive officers and senior management of around 650 retailers, manufacturers, service providers, and other stakeholders across 70 countries. One of the GFSI’s objectives is “convergence between food safety standards through maintaining a benchmarking process for food safety management schemes.” GFSI (2007) contains commonly agreed-on criteria for food safety standards, against which any food or farm assurance standard can be benchmarked. According to the CAC (2010), as of June 2010, 13 schemes were recognized by GFSI. Data Standards product identification code and a company prefix, assigned As discussed, data standardization is vital for end-to-end by GS1. GLNs usually are assigned to a company, which traceability. A key player in data standardization and open then assigns a unique GLN for each of its facilities. A GLN systems for product traceability is GS1, a global nonprofit is typically associated with GPS coordinates for the facility organization with more than 1 million member organizations or plant. RFID applications use the serialized GTIN standard, in 108 countries. The GS1 Global Trade Item Number (GTIN) sGTIN, developed by EPCglobal. The United Nations Standard and Global Location Number (GLN) are assigned to identify Product and Services Code (UNSPSC) is a global classification the product and location. The GTIN has two components—a system for information on products and services, including ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 299 FIGURE 11.7. Fresh Food Trace Web Platform Source: Annerose 2010. food products. Access to UNSPSC is free and included as a information on mangoes on mobile devices at every step classification option in ERP systems such as SAP and Oracle. (image 11.1), thereby offering complete traceability to end markets. Importers, retailers, and customers are willing to pay US$0.09 more per pound for individual farm sourcing and compliance with food safety standards (Annerose 2010). INNOVATIVE PRACTICE SUMMARY The traceability system also serves to enhance the market’s Mango Traceability System Links Malian Smallholders and Exporters to Global Consumers reputation for supplying safe and traceable Malian mangoes sourced directly from smallholders. A produce traceability initiative is helping mango growers and exporters in Mali enhance traceability and comply with GlobalGAP standards, connecting smallholder trade to global IMAGE 11.1. Mango Growers in Mali Use Mobile markets. Previously, Malian mango growers relied on import- Devices to Log Traceability Data ers in global markets who did not bear the risk associated with transporting perishable produce, and the market sys- tem had not yet earned a reputation for high-quality produce in export markets. The partners in the initiative included Manobi (http://www.manobi.net/worldwide/, the mobile data services operator), Fruiléma (http://www.fruilema.com/, an association of fruit and vegetable producers and exporters in Mali), and IICD (http://www.iicd.org/, a nonprofit that special- izes in ICT for development). The partners developed the Fresh Food Trace Web platform (figure 11.7), which automates and visualizes data for track- ing mango production, conditioning, transportation, and export (IICD 2008). Growers log traceability data and product Source: Annerose 2010. I C T I N AG R I C U LT U RE 30 0 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES Topic Note 11.2: TRACEABILITY TECHNOLOGIES, SOLUTIONS, AND APPLICATIONS TRENDS AND ISSUES could prove cheaper (and easier to use) in nano form. The Systems for tracking products through supply chains range following sections review the technologies that may be used from paper-based records maintained by producers, proces- in a variety of contexts in developing countries, depending on sors, and suppliers to sophisticated ICT-based solutions. In the associated costs and business models employed. addition to supporting product traceability, ICT may also sup- Document-Based Solutions (Paper/Electronic Documents) port data capture, recording, storage, and sharing of trace- ability attributes on processing, genetics, inputs, disease/ Smaller organizations and producers constrained for pest tracking, and measurement of environmental variables. resources typically use pen and paper to record, store, and Table 11.4 describes some aspects of how traceability is communicate data to partners in the supply chain. Paper used in agricultural and agrifood systems. invoices, purchase orders, and bills of lading, as well as electronic file formats (MS Word, PDFs, or others), may be The costs associated with putting traceability systems into used to store alphanumeric codes and other data on prod- place are seen as barriers even among established actors uct lot number, harvest date, product receipt/shipping date, and appear even more daunting to small-scale produc- quantity, or ingredients. Document-based systems, whether ers from less developed countries. Paper is still used as a physical or electronic, store data in an unstructured form. cheaper option for traceability, although it limits the ability to Searching through paper records is done by physically brows- record data accurately, store it, and query it to identify and ing through papers that are at best categorized and filed in trace products. Digital databases for traceability are seen as shelving space. Searching through electronic documents more expensive to implement, operate, and maintain, requir- requires users to locate the document and then perform full ing investments in hardware and software, skilled human text or metadata searches within it. resources, training, and certification. Because document-based systems take time and effort to RFID tags are still relatively expensive for widespread adop- query, they increase the time needed to locate the precise tion in the supply chain compared with the much cheaper and source, location, or details of a suspected contaminated more widely available barcodes (Sarma 2004). Tags priced at product. Data recorded on paper cannot be exchanged eas- less than US$0.01 apiece could offer lower-cost mass market ily among partners in the food supply chain. They also have options for the technology. Commercialization of advances drawbacks related to illegible handwriting and human trans- such as those driven by nanotechnology may also push prices position errors when data are transferred from manual to down by enabling RFID tags to be printed on paper or labels database systems. Data may be inaccurate and quite difficult (Harrop 2008). RFID in its current form is a microchip and to verify through cross-checking. TABLE 11.4. Traceability Applications in Agriculture and Agrifood Systems APPLICATIONS DESCRIPTIONS Product Tracking the physical location of a product for supply chain management and to facilitate recall—e.g., through barcode labeling, RFID tags and readers, mobile devices, GIS, GPS, and remote sensing systems. Process Determining the types and sequencing of activities affecting the product during cultivation and after harvest, such as mechanical, chemical, environmental, and atmospheric factors, and the absence or presence of contaminants—e.g., through sensors and instrumentation devices that transmit and store information to RFID tags. Genetic Determining the types, source, and origin of GM ingredients and planting materials affecting a product—e.g., through DNA testing and nuclear medicine. Inputs Determining the types and origin of inputs such as fertilizer, chemicals, irrigation water, livestock, feed, and additives involved in the processing of raw materials into a food product—e.g., through instrumentation devices, nanotechnology, sensors, electronic tags, and handheld devices for data collection, storage, and transfer. Disease and pests Tracking the epidemiology of pests, bacteria, viruses, pathogens, and zoonosis in raw materials—e.g., through GIS, GPS, and mobile devices. Measurement Tracking and calibrating product data against national or international standards throughout the supply chain—e.g., through measurement and instrumentation systems, sensors, and laboratory equipment for analysis of chemical and physical attributes. Source: Opara 2003. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 301 Structured Database Solutions which can be read upstream and downstream through a sup- Some organizations capture and store traceability data in their ply chain. management information systems and other databases, such An even more precise system of barcode traceability is as ERP systems for inventory control, warehouse manage- reduced space symbology. This system uses 14-digit GTIN ment, accounting, and asset management. They may also barcodes on individual items, boxes, and pallets, which can rely on homegrown custom solutions and legacy information all be linked by product and producer or distributor codes, systems. The advantage of capturing product traceability allowing trace-back from the level of an individual item data in structured database systems is the ability to rapidly (Golan, Krisoff, and Kuchler 2004). and precisely query data elements to isolate the source and location of products that may be contaminated. ERP systems The Produce Traceability Initiative requires produce tracking such as SAP can read standardized data from barcodes and via barcoded case labels with traceability information such RFIDs, including GTINs and GLNs. as the GTIN and lot/batch number. The European Article Numbering–Uniform Code Council standard has a set of 62 Electronic data interchange systems allow vendors and busi- product attributes for barcodes to track input, production, ness partners to exchange data such as GTINs and GLNs. and inventory along the supply chain, permitting open real- Businesses may also exchange information via ebXML time updates of information to all systems in the network (extensible markup language), which defines the structure of when producers enter new information in the system. data and security for the transfer. Database solutions such as ERPs may be supplemented by Web-based portals for data input and data exchange with business partners in the supply RFID-Based Solutions chain. In legacy systems and custom solutions, data used to RFIDs offer promising capabilities for traceability in the devel- identify products may not follow traceability data standards oping and the developed world and are seen as an alternative such as product lot number. Multiple data standards cause to older barcode systems. Passive RFID tags use an initial errors and confusion and impede accurate product tracing. signal from an RFID reader to scavenge power and store data on an event at a specific point in time. Passive RFID tags do Emerging trends in ICT, such as the use of cloud computing not use a power source and are less expensive than active and SaaS (software as a service) solutions, have reduced the RFID tags. Grain-sized RFID tags or transponders incorpo- cost of owning ERP and database management solutions to rated as particles or attached as labels to food products can capture, record, store, and share traceability data. identify the food item and become connected to the Internet as uniquely identified nodes. Barcode Technologies Conventional methods of traceability through a chain of Products tagged with RFID may also be fed with data though custody involve the use of barcodes and labels. Barcodes an interface with wireless sensor networks. Sensors, also are commonly and recognizably used for inventory control called motes, may transmit data on motion, temperature, management and global logistics of people and goods, such spoilage, density, light, and other environmental variables as air travel tickets or parcel shipping and delivery. Barcodes sliced by time to the RFID tag (“Organic RFID to Cut Waste represent data to uniquely identify a product. Barcodes can on Produce,” RFID News, 2009). GPS, low Earth orbit sat- be scanned by an electronic reader to identify and interpret ellites (Bacheldor 2009), and motion sensors may interface key data elements stored in the barcode. The data can be with RFID tags to communicate variables on location and used to trace the product forward and backward through the position coordinates (latitude/longitude). RFID readers to supply chain. read data from RFID tags may be integrated as an application on a mobile device. Thus an “ecosystem”9 built by combin- Barcode solutions require a printing component to print bar- ing RFIDs, wireless sensor networks, GPS, mobile devices, codes on labels or products and a scanning technology to and applications can make it possible to manage traceabil- read barcoded information. Barcode labels may also contain ity across the supply chain. Product traceability recorded some information below the barcode to allow for human veri- through such an ecosystem-based solution may range from fication and cross-checking of data. Storage of data elements data on logistics and postharvest practices surrounding the on a barcode depend on the type of barcode technology used. trees of the small-scale producer right up to the table of the The GTIN uses a 14-digit barcode with information about companies, products, and product attributes worldwide, 9 Also described as the “Internet of Things” (ITU 2005). I C T I N AG R I C U LT U RE 302 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES end consumer (Ampatzidis et al. 2007). Lower costs per the scale of a nanometer. One nanometer is one-billionth of device, nanotechnology advances that permit greater stor- a meter, or about 1/80,000 the width of human hair.”10 Nano age and smaller size, increased ruggedness in extreme tem- solutions can help food security by decreasing input costs, peratures and moisture, and rapid growth in wireless cellular increasing yields, and decreasing postharvest loss. network and device availability have led smaller producers in developing countries to use RFIDs, GPS, GIS, wireless sen- In the field of traceability, nano solutions enable food safety sor networks, and mobile phones to implement traceability and food preservation. Nano materials may be used in systems, paving the way for connectivity to global markets. smart packaging and in food handling to detect pathogens, gases, spoilage, and changing temperature and moisture. RFIDs have been used for unique animal identification, Traceability requirements for food safety may present a storage of data on breeding history, animal health, disease lower-risk, higher-benefit area for the application of nano tracking, animal movement, and nutrient and yield manage- solutions. (Froggett 2009, 2010). Current technologies to ment. RFID-tagged animals are tracked from birth through detect pathogens in food require considerable time, money, slaughter to check and monitor disease, to meet the needs and effort. Nano solutions can detect contamination in real of global markets for safe meat, and to enable product recall. time. Azonano, an online journal of nanotechnology, reported in 2005 that researchers at Kraft Foods, Rutgers University, The advantage of electronic traceability systems based on and the University of Connecticut were developing a nano RFID is their staggering capacity to store data on product solution called an “electronic tongue.” (“Food Packaging attributes. Barcodes permit only limited data storage. Unlike Using Nanotechnology Methods,” Azonano, 2005). An array barcode systems, which are read-only, RFID systems pos- of embedded nanosensors in the electronic tongue detect sess read/write capability. Barcodes require the item and the the presence of pathogens in packaged food and change the scanner to be in the direct line of sight, and items must be color of the tongue to signal spoilage to consumers. The EU physically moved to collect data on the product, whereas Good Food Project has developed a portable nanosensor to data are automatically collected via RFID without line of sight detect chemicals, pathogens, and toxins in food at the farm (Cronin 2008; Nambiar 2009; Sarma 2004; Stokes 2010). and slaughterhouse and during transportation, processing, and packaging. Nanotechnologies are also enabling the pro- The disadvantages of RFID solutions include their cost, duction of cheaper and more efficient nanoscale RFIDs for complexity, and environmental sustainability (IFT 2009). tracking and monitoring food through the supply chain for RFID signals are affected by environmental conditions such traceability (Joseph and Morrison 2006). as moisture, which absorbs electromagnetic waves; metal packaging, which scatters waves; and physical damage to Nano solutions can help increase farm sustainability while the chipset in harsh conditions. Studies of RFID applications decreasing environmental impact. Nanoscale sensors in fields summarized by Nambiar (2009) identify challenges such as enable targeted minimal application of nutrients, water, and/ a lack of expertise, resistance to change, lack of systems or pesticides (Froggett 2009). Encapsulation and controlled- integration (Attaran 2009), inconsistent information, lack of release methods are used to deliver doses of pesticide and her- supporting tools for implementation (Battini et al. 2009), and bicide. Particle farming yields nanoparticles for industrial use integration difficulties as a result of the proliferation of RFID by growing plants in specific types of soil (one example is the readers (Floerkemeier and Fleisch 2008). In practice, the harvesting of gold particles from alfalfa plants grown in gold- implementation of RFID technologies is hampered by prob- rich soil). Nano solutions such as NanoCeram (2-nanometer- lems with tag detection, tag coverage, and reader collision diameter aluminum oxide nanofibers developed by Argonide in (Carbunar et al. 2009). Other technological hurdles include the United States) filter viruses, bacteria, and protozoan cysts protecting the privacy and security of data stored on the RFID from groundwater. Altairnano is working on Nanocheck (which tag from unauthorized access and tampering (Langheinrich contains lanthanum nanoparticles) to absorb phosphates from et al. 2009). aqueous environments such as fish ponds. Research at the Center for Biological and Environmental Nanotechnology Nano Solutions for Traceability and Precision Farming shows that nanoscale iron oxide particles are effective at bind- ing with and removing arsenic from groundwater (Joseph and Transformative technologies such as nano solutions are creat- ing new pathways for food security and precision agriculture. 10 “The A to Z of Nanotechnology,” Institute of Nanotech- “Nanotechnology” is “the ability to engineer new attributes nology, March 19, 2004, http://www.azonano.com/Details through controlling features at a very small scale—at or around .asp?ArticleID=631, accessed February 2011. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 303 Morrison 2006). An emerging trend in agriculture and food DNA Techniques security is the convergence of nanotechnology, biotechnol- While conventional methods of traceability work for labeling ogy, information technology, and cognitive science, referred and tagging food products that are not genetically modified to by the United States government as “NBIC.” or engineered, DNA traceability offers a more precise form of traceability for animals and animal by-products derived The potential impact of nano solutions on smallholder farmers through biotechnology. DNA traceability works on the and agricultural producers is beyond the scope of this mod- principle that each animal is genetically unique, and thus ule but merits research and discussion. Investments in nano by-products of the animal can be traced to its source by iden- research and approaches to regulation continue in OECD tifying its DNA (Loftus 2005). countries such as Australia, Canada, EU member countries, Japan, Korea, New Zealand, and the United States, as well as non-OECD countries such as Brazil, China, India, the Russian Nuclear Techniques for Traceability Federation, and South Africa. Figure 11.8 depicts the use A joint research project of the Food and Agriculture and convergence of information, communication, electron- Organization and the International Atomic Energy Agency ics, and nanotechnologies to enable information to flow from (Cannavan n.d.) seeks to establish analytical techniques to farmers to markets. determine the provenance of food by assessing its isotopic FIGURE 11.8. ICT Enables Information Flow from Farmers to Markets Data throughput/output methods Barcodes Wireless communications Radio-frequency identification GPS/GIS Enablers of information Web-based flow from farmers to markets ERP/database systems Wireless sensor systems networks Farmers Markets Data input methods Web Mobile based Information flow from markets to farmers Manual: pen/ Social media/ paper/documents crowdsourcing Source: Tina George Karippacheril. I C T I N AG R I C U LT U RE 304 MOD ULE 11 — GLOBA L MA RK ETS , GLOB A L CH A LLENGES and elemental fingerprints.11 These techniques are also used GPS-equipped fishing boats transmit data on origin of to identify the geographical origin of food and to identify catch to a Transdata center in Santiago to monitor fish- sources of contamination. ing from legal fishing areas. When the catch is brought to port, a ticketing system cross-checks the origin of the catch via GPS data transmitted from the boats, then INNOVATIVE PRACTICE SUMMARY weighs, certifies, and labels bags of catch with traceability ShellCatch in Chile Guarantees Origin of the data in a barcode label. After ticketing, the certified catch Catch from Artisanal Fishers and Divers is sent to processing plants and on to domestic and inter- In Chile, ShellCatch (http://www.shellcatch.com/english national markets for consumption. Figure 11.9 illustrates /index.htm) allows buyers to pinpoint the origin of shellfish this process. and the condition of catchment areas in the Tubul, Arauco Gulf, and Bio-Bio regions. ShellCatch shifts the responsibil- ity for daily monitoring of catch origin, including detection ACKNOWLEDGMENTS of extraction from legal catchment areas, from processing The authors gratefully acknowledge helpful comments and plants to harvesters—that is, artisanal fishers and divers. guidance received from colleagues Tuukka Castren, Aparajita Goyal, Steven Jaffee, Tim Kelly, Eija Pehu, and Madhavi Pillai 11 Joint FAO/IAEA Program, 2010, “Implementation of Nuclear of the World Bank: Andrew Baird of RTI; Steve Froggett of Techniques to Improve Food Traceability,” http://www-naweb .iaea.org/nafa/fep/crp/fep-improve-traceability.html, accessed Froggett & Associates; Guillaume Gruere of IFPRI; and Lucy February 2011. Scott Morales of EEI Communications. FIGURE 11.9. Embayment Management and Shellfish Traceability in Chile Transforming the Shellfish Sector Satellite 2 Monitoring Automated monitoring of shellfish boats Monitor in Santiago GPS 1 Artisanal fishing GPS location device GPS 3 GPS 2 International 4 Shellfish processing market 5 Certified shellfish Catch goes to processing Local and international plant consumers receive shellfish 3 Labeling system Product After catch, generate a barcode label to certify catch Shellfish processing plant Source: “Transforming the Shellfish Sector, Appropriate Technology for Coastal Management,” Shellcatch, http://www.shellcatch.com/english/index.htm, accessed February 2011. ICT IN AGR IC ULTUR E S E C T I O N 3 — AC C E SSING MARKE T S AND VAL UE CH A INS 305 REFERENCES AND FURTHER READING Campden BRI. 2009. Traceability in Food and Feed Chain: General Principles and Basic System Requirements. Guideline No. G60. Ampatzidis, Y. G., S. G. Vougioukas, D. D. Bochtis, and C. A. Tsatsarelis. 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However, these public institutions are often neglected as a result of underfinancing, isolation, a lack of technical support, and low levels of human capital. This module focuses on how information and communication technology (ICT) can help governments, line departments, and civil society groups provide public services to the agriculture sector. Topic Note 12.1: Public Agencies and the Provision of E-government. ICT helps governments decrease bureaucracy, cut transaction costs, and spread information to other stakeholders. While improving service provision and rural liveli- hoods, these technologies also form more efficient relationships between the government and citizens, producers, private enterprise, civil society, employees, and other public agencies.  Building Public Service Provision through Internet Applications  Agricultural and Rural Information through Ministerial Websites  Using Biometrics to Provide and Target Rural Services  E-Government to Business  E-Government to Government Topic Note 12.2: Civil Society and the Provision of E-Services. Civil society organizations provide many digitized services similar to those of public agencies. Yet they also perform the important function of using ICT in more sensitive activities such as publishing information on political figures, political parties, or new legislation. They can more easily direct their efforts to more specific groups or needs and fill voids in public agriculture services.  Providing ‘Hubs’ for ICT Innovation  E-Learning through the Web and SMS  Collecting Data to Protect Local Knowledge and Ecosystems Topic Note 12.3: Increasing Citizen Participation through E-Democracy. Citizen participation and demand for public goods is incredibly important in the agriculture sector: Because so few resources are available in remote locations, the quality of governance often depends on citizen involvement. ICT holds great promise for enhancing democracy in rural areas, providing people with faster, real-time capacity to involve themselves in democratic initiatives, meaning that more stakeholders can affect local governance processes.  Information Kiosks in India  Virtual Communities  Government Responsiveness through Citizen Participation in Digitized Political Processes  Digital Media Forums in Developing Countries I C T I N AG R I C U LT U RE 312 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T OVERVIEW Electronic voting, online complaint lines, and mobile legisla- The widespread use of ICT in developing countries arrives at tive consultation are some of the most innovative forms of a critical time. Food insecurity, poverty, malnutrition, environ- democratic participation occurring around the world. mental degradation, and state failure are daunting trends that Because less than 25 percent of the population living in devel- need to be slowed and quickly reversed. One of the foremost oping countries is online, the benefits of using the Internet ways to reverse these trends is enlarging and improving the as the only tool for e-governance are limited. Initial invest- agricultural sector. Already, using ICT, the sector has reduced ment costs pose the most significant challenge to increas- transaction costs, increased rural participation in the value ing broadband accessibility: In 2009, an entry-level fixed chain, and raised producer incomes. Seeing the widespread broadband connection cost on average US$190 purchasing benefits of ICT, development institutions and governments power parity per month in developing countries compared to are now investing heavily in ICT opportunities, expanding the only US$28 per month in developed countries (International possibilities and scalability of interventions. Telecommunication Union 2010). Yet given that broadband Like ICT for agriculture, ICT for governance holds incredible Internet networks will continue to expand into rural areas, potential and has already proved successful in many coun- this module discusses public service provision using the tries. Governance—defined by the World Bank as the “tradi- Internet alongside mobile phones, the radio, and other tions and institutions by which authority in a country are exer- devices. It aims to highlight and describe the most promising cised for the common good” (World Bank n.d.)—is a vital examples (both in developed and developing countries) of component of rural development. How governments, civil ICT for governance and institutions as infrastructure catches society groups, and nongovernmental organizations (NGOs) up, with a specific focus on rural and agriculture issues. offer their services in rural areas determines the quality of life for community members, including the extent to which Framing the Governance and Accountability Challenge improvements in agriculture raise farmers’ incomes and Figure 12.1 illustrates the services that public agencies, non- reduce poverty. “Good governance”—which is participatory, governmental organizations (NGOs), and civil society groups, consensus-oriented, effective and efficient, accountable and as well as private enterprise, offer citizens, producers, or responsive, transparent, inclusive, and follows the rule of law producers’ organizations. The relationships that define these (ESCAP 2011)—is most difficult to provide in unconnected stakeholders are those that can be enhanced through ICT. and remote areas. It requires active citizen participation, gov- Services, partnership, regulations, and membership charac- ernment attentiveness, functioning accountability mecha- terize these relationships and define how rural institutions nisms, and the financial means to fulfill public demands. Yet function in remote communities. the expansive reach of ICT has made the provision of good governance more possible. For citizens and producers, public agencies provide services such as agricultural extension, land administration, and infra- Some of the earliest e-governance (electronic governance) structure; for civil society groups and NGOs, they provide initiatives began around the mid-1990s. With the Internet as services such as legal frameworks. For private enterprises, the principal device (in which information would eventually public agencies provide regulation services such as business be disseminated through other mobile tools), governments registration. Civil society groups, NGOs, and private enter- in developed countries began establishing technological win- prise can provide similar services to rural farmers. Because dows of information and public services. As broadband Internet of distance, limited resources, low human capacity, and service became more affordable and widespread, poorer widespread poverty, however, providing these services to countries tapped into this type of electronic government. rural citizens is not easy in developing countries. As the gap Innovative approaches to offering electronic services both in between public agencies and the agrarian sector continues, the agricultural and public service sectors as well as for the service provision and good governance risk deterioration. private sector are on the rise in Asia, Latin America, and even Four main governance challenges, most strongly felt in rural Africa. Mobile phones, radio, geographic information systems government offices, are briefly described below. These chal- (GIS), and other ICT applications expand government capac- lenges are addressed most effectively through the use of ICT. ity to reach out, target, and provide appropriate services to rural communities. Beyond service provision, governments, Human resource management challenges: civil society groups, and development institutions are now ƒ Human capacity: Limited education results in increasing rural public participation through electronic means. restricted human capital in public agencies. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 313 FIGURE 12.1. Relationships Between Key Stakeholders in the Agrarian Sector NGOs / Services, civil society groups partnership, and regulation Membership Membership Services Public Citizens and Producers / producer Services agencies consumers organizations Employment, Business products relations Services, partnership, and regulation Private enterprise Source: Authors. ƒ Low performance: Incentives like good wages are By digitizing its services, the public sector improves its ability minimal in poorly resourced governments. to address the governance challenges listed above through ƒ Poor supervision: Limited resources and staff reduce the mechanisms for transparency and accountability that ICT employee oversight. devices automatically invoke. For example, financial trans- actions through mobile phones or computerized systems Corruption and procurement challenges: discourage bribery and corruption because of their built-in ƒ Corruption: Loopholes and poor enforcement create traceability. Similarly, putting information online in a central spaces for unwarranted financial gain. location ensures accurate and more equal knowledge trans- ƒ Poor procurement: Unqualified staff and paper fer to all citizens, not just to those who are politically con- accounting result in poor transactions. nected. Using biometric data to transfer inputs or services to beneficiaries ensures that the targeted individuals are the ƒ Rent seeking: Funds obtained unfairly by government intended recipients. Short messaging service (SMS) mes- through private assets. sages containing prices for certain crops reduce intermedi- ƒ Bribery: Lack of legal mechanisms motivates political aries’ interference. As this module intends to demonstrate, and financial cheating. ICT applications adopted to improve only farm practices Targeting challenges: and producers’ situations actually increase transparency in government processes, hold elected officials more account- ƒ Elite capture: Better-off and politically connected able, reduce corruption, and boost citizen participation in farmers capture public programs. the agrarian sector (Katz, Rice, and Aspden 2001; Mercer ƒ Assessment: Low capacity to assess whether targets 2004; Selwyn 2004). Table 12.1 summarizes the applications are met. described in this module. ƒ Research: Low capacity to identify the most vulner- able or their needs. This module follows the outline in table 12.1, splitting the dis- cussion into three themes, with the most attention focused Bureaucratic procedures: on the first: (1) how the public sector can use ICT to improve ƒ High transaction costs for clients: Resources services and policies, (2) how civil society groups and NGOs needed to travel to, wait for, and pay for services. can use ICT to reach beneficiaries, and (3) how democracy ƒ High transaction costs for government: Resources and citizen participation can be improved through ICT. Each needed for logistics and travel to remote places. thematic section presents current trends, lessons learned, I C T I N AG R I C U LT U RE 314 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T TABLE 12.1. Examples of ICT in E-Governance E-GOVERNANCE Organization E-services (examples) E-democracy Public agencies E-government to citizens: Citizen report cards, complaint Tax payment, biometric identification cards, government websites, irrigation management, lines, discussion forums, virtual digitized land administration, SMS extension services, mobile or radio pricing information communities, participatory budget- ing, chat rooms, mailing lists, E-government to business: opinion polls, citizen juries, online Regulatory information, procurement, automated tax payments, electronic toll collection focus groups, petitions, blogs, online media, social networks, E-government to employees or government: online video or news broadcasts Knowledge management systems, intranets, financial management systems, automated payroll, online timesheets Civil society and NGOs E-services to citizens: Agriculture websites, e-learning, radio broadcasts, online petitions, video-based information dissemination, SMS alerts, innovation hubs Source: Authors. and benefits of using ICT, followed by summaries of innova- interoperability is critical in infrastructure development. tive practices from countries at a variety of electronic readi- India’s choice to pursue a government-wide centralized ness levels. administrative system reduces financial burdens over the long term and ensures that data and management systems are integrated over multiple departments. However, imple- KEY CHALLENGES AND ENABLERS menting a centralized system is much more difficult than The following sections highlight key challenges related to implementing singular systems. Oversight and technical sup- using ICT in efforts to improve the efficiency and overall port across diverse departments is a prerequisite, as are staff functioning of governance. They also discuss the enablers support, national leadership, and ample financial resources that can help to ease these challenges as interventions are (Reidl 2001). designed and implemented. Education and training: Computer literacy, outside of lit- Internal e-readiness: Human resources pose challenges eracy itself, is one of the biggest challenges to ICT devel- to e-government success. Staff and bureaucrats in public opment in rural areas. Countries implementing ICT for poor agencies often resist e-government development because communities must remember that training and education are they see it as a threat to job security (Jiang, Muhanna, likely to be a necessity in the initial stages. Without them, and Klein 2000). Internal e-readiness helps calm employ- users may struggle to use the Internet or other ICT appli- ees’ fears and prepares them for ICT interventions. The cations. The resulting frustration and reduced enthusiasm number of full-time IT employees and a firmly established IT about new technologies can spread quickly. For new users, department appear to be robust indicators of success- education increases both accessibility and confidence. Public ful e-government adoption (Norris and Kraemer 1996; extension services can help meet the need for education and Schwester 2009). To ensure internal e-readiness, countries training in the use of ICT. introducing e-government should try to condition staff through training and conferences. Privacy and security: Privacy and security are also major Interoperability: The ability of a government website to challenges to e-government development (OECD 2003; connect people to information or to other websites is impor- Schwester 2009). Even in developed countries, securing tant to e-government development. As well as frequently citizens’ profiles, credit information, addresses, and prefer- updating their Web pages, government agencies must pro- ences becomes a critical issue. Before implementing an vide clear, functioning links to other relevant information. e-government initiative, practitioners should consider privacy Interoperability can extend to culture relevancy and content. protection programs and inform the public about the risks Language is a major challenge. Providing government infor- and safety concerns related to using ICT. Leaks in personal mation in only one language, or even two, may not suffice information and increases in identity fraud are serious threats to reach citizens in the most rural and poor areas. Finally, to e-government success. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 315 Matching e-government projects to local infrastructure: Social access: Creating access for women (and other Investing in an e-government website when Internet access vulnerable groups) is usually the most difficult social task is limited for most households and businesses may not be a in ICT development. Democratic forms of participation smart financial commitment. E-government projects should like blogging often are unavailable to females who do not match the infrastructure capacity of the country or region. A have the time or cultural access to participate. If kiosks project aimed at connecting rural farmers to buyers through are intended to reach women, they should be placed in the Web is ineffective if the rural communities do not regu- women-centric locations like weekly markets or hospitals. larly have electricity. A kiosk, perhaps powered by a genera- Similarly, broadcasts for farmers should be run late in the tor, or SMS alerts may be more appropriate. The Kosovo case evening when farmers have returned from their activities. demonstrates that ICT for governance does not have to be Even more important is that leaders and donors must an all-or-nothing proposition. Building ICT requires creative reflect on their intended objective. Is the ICT truly reach- solutions and gradual progress. Developing e-government in ing disadvantaged groups? Do observations prove that the step with expanding technology capacities will sustain the ICT contributes to a wide range of smallholder produc- effectiveness of the ICT. tivity? If not, strategy, targets, and objectives should be reconsidered. Sustained leadership: Strong leaders are crucial for consis- tent e-government development. Public officials or leaders Content analysis: Content analysis is another crucial ele- that are frequently “seen” are most effective in mobilizing ment of successful delivery of e-services by government and citizen support for ICT. Increased and active leadership could civil society. The Internet, SMS alerts, newsletters, and other help institutionalize the ICT in business development. Yet ICT applications must be relevant to the user. Content that this type of “campaign support” for e-government initiatives may seem relevant may in fact not be relevant, depending on is not the only important leadership role. Country leaders the need. Technologies, climate change, and markets con- must also consistently and strategically prioritize ICT ahead stantly shift the importance of messages. During a drought, of other development needs so that e-government attempts radio broadcasts on collecting water for irrigation might be are not “stop-and-go” (InfoDev 2002). more appropriate than others. These analysis activities are particularly important in e-government because the informa- Investment and public-private partnerships: Financial tion provided by governments (such as market price informa- planning and long-term revenue inflows are important to tion) is not often up to date. Private sector initiatives offer e-government as they develop (OECD 2003; Relani 2004; more accurate and timely agriculture information compared Schwester 2009). Generating revenue is crucial to sustain- to the public sector. Thus one of the first steps in improv- able ICT and public-private partnerships should be pursued ing e-government services should be enhancing the quality in order to maintain long-term growth and expansion. of the information provided. Routine checks for information Governments can charge small fees to private enterprises accuracy are also critical. or citizens who use their services, yet modicum fees require many years to pass before returns on investment Userability: Userability is user-friendliness. Text options are significant. and clear links to other sites create this friendliness. The Cereal Knowledge Bank does an excellent job of fostering Interorganizational collaboration and coordination: A userability. Buttons like “home” and “back” make it easy major challenge to e-government success is coordination for people of all ages and skill sets to access information. between multiple public agencies. Almost all e-government The site offers downloadable printable information as well. services require interagency collaboration, particularly for Users can click on “small,” “medium,” or “large” text financial management. Yet this collaboration is difficult to options, providing reading material for a variety of eyesight encourage and facilitate. Simply computerizing internal capacities. Giving the user options is also part of usability. processes will not result in integration and flow if govern- Lack of options and links to nonexistent websites frustrate ment agencies have a history of performing their duties users. in “rigid silos of departments” (Fuchs and Horak 2008). Haphazard computerization can actually worsen govern- Active participants and institutionalization: Participants ment effectiveness. Shared infrastructure like the same matter in ICT development for governance. Just because intranet or knowledge management system may ease the an organization delivers an e-government website, virtual ICT transition. community, or radio broadcast does not mean citizens will I C T I N AG R I C U LT U RE 316 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T actually use it, so community involvement and buy-in are Political and cultural environment: Institutions introducing an critical to success. For example, while a virtual community ICT should consider the political and cultural environment dur- or extension service may have hundreds of members, only ing design and implementation. This consideration is particularly a few of those members may contribute to the knowledge important in e-democracy projects. For example, if women do base or discussion (Kim n. d.). Requiring participation in mes- not normally participate or have a voice in government issues or saging, radio programs, and virtual communities in order politics, introducing an ICT for women without proper prepara- to maintain membership, or rewarding contributions, may tion, like training and community meetings, may have minimal incentivize participants to comment, respond to queries, positive effect. Saxena (2005) puts it well, stating that “while and add value to the community or cooperative. To further e-government is an automated government, the reverse does activate wide participation, practitioners must obtain com- not inevitably hold true. Introduction of automation into the munity acceptance and buy-in, secure links to sustainable public sector will not automatically create better or more open revenue flows, and maintain government support (Madon governance unless it is based on open and democratizing prin- 2004). Stimulating valuable social interaction and interest ciples.” In other words, simply computerizing government or with relevant groups and leaders will increase the prospects services is not the same as improving e-governance (Fuchs and of successful ICT integration. Horak 2008). Topic Note 12.1: PUBLIC AGENCIES AND THE PROVISION OF E-GOVERNMENT TRENDS AND ISSUES to export markets. While improving service provision and Public agencies need to provide a wide array of public ser- rural livelihoods, these technologies also form more efficient vices to rural producers and citizens. However, providing relationships between the government and citizens, produc- agricultural services like irrigation and drainage systems, ers, private enterprise, civil society, employees, and other market assistance, extension and advisory services, or other public agencies. services like health and education is extremely complicated One way to clarify the opportunities and steps in an e- due to poor roads, few human resources, and corruption in government project is through the stages of e-government. rural areas. The public sector must also create a friendly busi- The simple framework outlined below shows how the public ness environment for small and medium-sized businesses, sector can improve its digitized services over time. The stages foreign investors, and innovative producers seeking to capi- in this e-government framework—publish, interact, and talize on a business idea. transact—are as follows (InfoDev 2002): Through ICT, government agencies can provide services to ƒ In the publish stage, a government might start with producers and private enterprise while enhancing the quality a website or two offering static information regard- of governance. E-government, or a government’s use of ICT ing public services. Hours of operation, addresses of to enhance public services, initially began as an intragovern- public agencies, and basic regulations or laws might mental communications tool (Moon 2002). Administrative be posted online. ICT applications—like knowledge management systems, ƒ In the interact stage, interests groups and citizens financial decision support systems, and intranets—were and can interact online with government officials, receive are still used to improve the internal workings of public agen- market information via SMS, and assist in irrigation cies. As technologies developed, the boundaries of ICT in projects through ICT. government expanded. Governments found that they could ƒ In the transact stage, producers can make financial decrease bureaucracy, cut transaction costs, and spread transactions through point-of-sale terminals, busi- information to other stakeholders like citizens and businesses nesses can obtain licenses online, and citizens can by digitizing public services. These advantages are quite pro- buy or sell land through digital land administration. nounced in the rural sector. For example, sending real-time price information through SMS increases producers’ bargain- Table 12.2 provides examples of e-government ICT with ref- ing power with traders, and tracking cattle through sensor erence to the publish, interact, and transact stages. Country technologies traces the health of the animals, opening doors examples are also included. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 317 TABLE 12.2. E-Government Stages STAGE TYPE OF ICT COUNTRY EXAMPLE Publish Website with ministry information Nigeria http://www.nigeria.gov.ng/ Market information systems India http://agmarknet.nic.in/ Databases and resources Brazil, EMBRAPA http://www.embrapa.br/english Interact Irrigation management Afghanistan (See Module 5, page 107) Email communication with government Singapore http://ele.ecitizen.gov.sg/news.htm Transact Rural finance system M-PESA, Kenya (See Module 7) Digital land administration Indonesia (See Module 13) Source: Authors. The e-government sector has continued to grow with the sector’s sources of information, efficiency, and scaling expansion of ICT and infrastructure. A number of key trends opportunities. should be noted: ƒ A change in legacy. Governments and development ƒ A major trend toward a central interministerial institutions are recognizing that electronic public committee. These committees, often housed by services are not improved through ICT if they sup- the head of state or in the cabinet, lead and cre- port rather than redesign dysfunctional policies and ate national e-government policies and strategies. procedures. E-government is being viewed as a more E-government committees at the national level help complex overhaul in public service provision and gov- generate significant visibility, funding opportuni- ernment function rather than as a series of individual ties, and push both public and governmental digital departmental projects (Hafkin 2009). transformation. Designating an ICT national leader also helps ease state and local governments into the Finally, it is important to note that ICT projects specifically national strategy and is now occurring more broadly purported to resolve agriculture development also address in developing countries. However, these committees governance challenges. Rather than repeat the examples have a tendency to stagnate, existing more for show covered in other areas of the Sourcebook, table 12.3 cross- rather than progressive ICT action. references ICT interventions from the public, private, and development sectors that are described in other modules. ƒ A shift from a computerized, technological Their components are highlighted to demonstrate the approach to a more service-driven approach. positive effects that ICT-enabled agriculture has on rural Governments are now looking into how technolo- governance even, when the intended objectives are strictly gies can integrate with public services and institution agricultural. building, rather than the opposite. The service-driven approach is much more effective than the technologi- cal approach, because it taps into public demand, which is often latent owing to limited access to new LESSONS LEARNED technologies and education about them. Public service providers and development institutions ƒ An increase in private-public partnerships. Private assisting in the development of government-sponsored ICT firms are increasingly involved in e-government proj- projects should be aware of the challenges associated with ects due to the technical features involved as well as them. Though impact studies are limited, there is some evi- the profitability of some services. This participation dence of the difficulties that may present themselves dur- is critical to financing infrastructure that the govern- ing or after implementation. These effects can weaken the ment cannot afford, as well as to refining the public relationship between the rural sector and the government, I C T I N AG R I C U LT U RE 318 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T TABLE 12.3. ICT-Enabled Agriculture Interventions and Their Impact on Rural Governance CORRUPTION AND BUREAUCRATIC HUMAN RESOURCE TARGETING PROCUREMENT INTERVENTION CHALLENGES CHALLENGES CHALLENGES CHALLENGES Risk ILRI created index-based For private firms and govern- Human discretion, which A lack of data reduces When government agents Management livestock insurance to ment alike, it is too costly is often used for assess- the chances of targeting collect premiums or pay Module 10 provide insurance to 3 mil- to assess the damages and ing damages, is highly the right farmers during indemnities without a lion pastoralist households collect premiums in remote fallible. Satellite images a disaster. To ensure the digital system, opportuni- in northern Kenya. Satellite areas. Administrative and improve the capacity to insurance was priced ties for bribery or theft images that captured the logistical costs are mini- analyze and accurately fairly and would reach the increase significantly. Using amount of vegetation on mized by satellite imagery assess damages. It most vulnerable, analysts point-of-sale systems not the ground were used to and point-of-sale systems also creates opportuni- created an index that only reduces the logistical assess damages. Premiums as government workers ties for long-term data predicted livestock mortal- costs of providing insurance and payments are collected no longer have to travel to collection, which could ity based on the amount of but also monitors financial by a rural agent through remote locations. improve environ- vegetation on the ground. transactions, prevent- point-of-sale systems. mental or production This was used in tandem ing both government and projections. with the satellite images to producer losses. ensure fairness. Market Esoko is a market informa- Providing market informa- Incentivizing the private Users have the option of Through mobile applications, Information tion service in Africa set up tion through bulletins and sector to advertise customizing the technology farmers can observe price Module 9 through mobile phones that other conventional means through mobile tele- to meet their needs. By fluctuations and financial (1) delivers a wide range takes considerable financial phones and Internet tracking harvest activities transactions. Even without of market information and resources and time and is significantly increased or selecting market infor- a subscription, farmers can (2) serves as a platform for often unreliable. Esoko.com the sharing of informa- mation for certain products, request market data for the buying and selling agricul- allows any farmer with an tion on prices, market farmers are finding cost of one SMS message. tural commodities. Internet connection to reg- preferences, supply, and relevant information faster Removing intermediar- ister for a free account and demand. The burden of than a traditional extension ies’ opportunities to take access 800,000 prices from sending trained govern- service could provide. advantage of uninformed a diverse set of markets. ment staff to collect this Governments can use data farmers drastically reduces Users can also connect with information is lightened; on farmers’ digital interests the need for government buyers and advertise their more resources and staff to target individuals or intervention. products. time can be allocated to areas for specific types of other needs. training or input programs. Land The Indonesian National Land titling, an often Using computers Digitizing the land system Digital systems raise red Administration Land Agency has created centralized service in and laptops reduces allows more people to flags when companies or Module 13 an SMS-based property developing countries, is not paperwork burdens access land and make persons obtain land without inquiry service and a accessible for citizens living for staff. Entering data transfers, even in remote going through proper legal remote land titling program in the periphery. Insecure directly into an electronic locations. Agencies can channels. It is also easier called the People’s Land land rights are problematic system connected to ascertain which properties to prevent discrimination Title Service (LARASITA). in rural locations, resulting the central database are not included in the land against certain groups as The service, which uses a in lower yields and poor also reduces the time it system and go about reach- rural awareness of rights vehicle and a laptop with farming practices. Mobile takes to complete these ing them. Using the mobile increases. Web portals and wireless connectivity, has land titling allows citizens service-related tasks. system also improves tar- digital land systems provide brought land services to do not have to spend unnec- Data entries should also geting, particularly because tighter accountability five rural provinces that essary time and financial reflect the rural situation rural inhabitants are most mechanisms that prevent would otherwise not have resources to travel to the accurately. prone to exclusion in land corruption, which also access to them. main city to register their titling systems. enhances citizen trust. property. Irrigation The Program for the Digitized irrigation manage- DOQs can be used over Using ICT in irrigation Local users, who are active Management Management of Irrigation ment systems reduce the time to anticipate water systems improves public in monitoring the irrigation Module 5 Systems by Water Users, in time spent in the field challenges like increas- agencies’ ability to target. networks, can hold contrac- collaborations with others, for M&E. DOQs capture ing salinity. Creating Satellite images such as tors accountable and reduce used digital orthophoto information to help public a database with these DOQs can distinguish land waste in financial resources. quads (DOQs) to help the agencies plan and imple- images allows users to plots, water sources, and In addition, water fees are government and local com- ment better-functioning be more active in the which producers have the easier to assign if there is munities manage address irrigation systems. Where irrigation network. Active most or least access to a more accurate picture of problems of maintenance, GPS cameras and mobile participation usually water from the system. the water situation in rural drainage, canal structuring, phones are used, water increases public demand With this information, areas. DOQs can prevent system monitoring, and users can send pictures for good services, and public agencies can adjust public agency discrimination payment in the Dominican of maintenance issues or it may lead to better water subsidies and infra- in prices and water access. Republic. system breakdowns, also staff performance and structure to better target reducing staff travel. oversight. those farmers with the fewest water resources. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 319 worsen situations for farmers, and reverse positive trends in areas are much less likely to have access to mobile phones the development of sound governance. or computers than men. In general, this disparity occurs because women do not have the income (often controlled Because ICT applications are “disruptive technologies” that by men in the household) to purchase mobile phones or gain restructure bureaucracies, redistribute power, and alter the the education to use them effectively. Contributing to the confidentiality of information (Hanna 2009), practitioners challenge are social norms in rural communities. One study should be wary of political apprehension. ICT is not a pana- found that men put restrictions on how women use mobile cea for development challenges, especially those relating to phones, further decreasing women’s freedom to use phones good governance. In fact, studies assert that the introduc- economically. Women’s incomplete understanding of how tion of digital services into certain bureaucracies is prone phones and even radio broadcasts could be used for agricul- to overlooking manifestations of “neopatrimonial” behavior tural and innovative purposes is a chief barrier to integrating (patronage taking place behind the facade of a modern state) women as users of ICTs. Most women see phones as secu- that could render ICT ineffective in improving governance rity measures, not ways to access public services or improve (Berman and Tettey 2001). livelihoods (E-Agriculture 2010). Evidence suggests that the gender disparity in ICT access decreases when women and Strained resources and an unstable state or emerging democ- men have similar educational backgrounds and incomes. racy can make the productivity of ICT even more difficult to Projects focused on increasing women’s primary education achieve. For example, because the results are not immedi- and basic computer skills should thus increase their effective ate, politicians do not always support e-government projects: use of ICT (Gillwald, Milek, and Stork 2010). Incentives to develop and begin implementing ICT are some- times limited in terms of reelection or political clout. Using Beyond these challenges are others related to infrastructure ICT in societies with thin models of citizen participation and cost. As noted, initial costs for mobile and broadband may produce minimal change (Dahlberg 2001). As a result, Internet networks are so high that the public sector cannot e-government projects should be dependent on the institu- extend them to rural areas. Incentivizing the private sector tional, political, and administrative capacity of the country. to finance infrastructure can reduce this burden. In addi- The use of ICT can also increase class divisions (Selwyn tion, public agencies might want to further consider how to 2004). The “digital divide” is a global, national, and local link mobile phone applications into online service systems, phenomenon, even in developed countries (Jung, Qui, and as many development institutions and private firms have Kim 2001; Loges and Jung 2001; Bonfadelli 2002). This done. Increasing the number of applications that can be used divide is most clearly visible between the wealthy and poor. through mobiles may improve rural access, as most rural pro- For example, traders or wealthy farmers, who typically have ducers do not have access to the Internet. (See Module 2 on higher incomes compared to producers, also have more affordability and accessibility for more information on these access to mobile phones, which can put poorer producers connectivity issues.) at an even greater disadvantage. Recent studies show that where citizens with higher levels of education and income use employment-related ICT like databases and bookkeep- INNOVATIVE PRACTICE SUMMARY ing, those with lower education and less income use ICT Building Public Service Provision through for games and entertainment (van Dijk 2006). As a result of Internet Applications these social challenges and others, institutions evaluating Government portals are one of the most prominent forms ICT for governance should examine “effective access,” or of e-public services that agencies provide. Most government the users’ “actual engagement with, or use of, the technol- agencies begin their ICT development with these websites ogy” (Selwyn 2004). and, over time, develop their capacity to provide more ser- vices electronically or simultaneously through SMS. Some Gender disparities in levels of ICT adoption are an additional initiatives are designed and implemented in all ministries at social and economic concern (see Module 4 for more details once; others are designed and implemented one by one. on gender issues). Evidence shows that women in rural At first, government websites may provide only bits of I C T I N AG R I C U LT U RE 320 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T information, but after years of sustained investment (includ- The National e-Governance Service Delivery Gateway (http:// ing adequate investment in rural infrastructure), these portals www.nsdg.gov.in/administration/index.jsp), which serves as can offer hundreds of transaction services. a data exchange board between all government agencies, will help the Indian government track, monitor, store, and Website development is a continuous process in all quickly reply to citizen inquiries. Whereas many government countries, developing and developed. Those involved in portals develop with singular infrastructure, India chose an e-government initiatives in countries with few resources and infrastructure system that would allow for standards-based low capacity can look to other public agency websites for interoperability between agencies (see figure 12.2). A cen- ideas on how to improve or enhance their own efforts to tral system that acts like a behind-the-scenes routing ser- reach citizens through ICT. Both http://www.regulations.gov/ vice eases the transition from paper to electronic services, in the United States and http://ec.europa.eu/ in the European reduces the amount of overlap in agency efforts, minimizes Union are good references for governments trying to dis- costs, and improves information sharing between depart- seminate information on policy and law in their countries. ments. Of particular importance, integrated infrastructure benefits the citizen: services should look similar and follow the same types of procedures in all government agencies. India’s E-Governance Initiative India, revered as one of the most progressive countries As NeGP moves forward, citizens will be able to access in e-government, began the National e-Governance Plan public services from each relevant ministry through depart- (NeGP) in 2006. In the past five years, the project has seen mental websites with the gateway portal. Grievance redress, substantial national growth in providing electronic informa- online permits and applications, and other relevant services tion and services online. The NeGP includes both telecom- are currently being implemented, along with programs that munication and internal government systems infrastructure allow people to track the status of their submission and development, simultaneously building electronic public ser- protect their privacy. The project has also made substantial vice delivery and strengthening rural access to the Internet. efforts to reach out to the large rural populations. E-District NeGP is composed of almost 50 projects, spread out over is a service that allows rural citizens without computers or all ministries and line departments at the federal, state, and Internet to access services through community centers. In local levels. Each state also has the ability to select five addition, the Department of Agriculture and Cooperation and e-government projects, which are dependent on and tailored the Directorate of Marketing and Inspection (http://agricoop to the state’s economic and social development needs. .nic.in/ and http://agmarknet.nic.in/) have developed impres- These services are being generated through public (51 per- sive agricultural public services, including a market infor- cent) and private funds (49 percent) funds (see http://www mation system, pages with technical advice, and even a .nisg.org/index.php). public grievance program dealing with agricultural issues. FIGURE 12.2. Singular Infrastructure versus Centralized Infrastructure in India NSDG Source: http://www.nsdg.gov.in/administration/. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 321 Finally, mobile government through SMS is an additional systems—both the Internet availability and computer train- e-government initiative. ing programs—benefit over 3 million people. Women and young adults with low incomes have preferential access to the services. In fact, over 50 percent of the users are female Success in Singapore (United Nations Department of Economic and Social Affairs Singapore’s e-government portal provides another useful 2009). example of e-government development. Now in the trans- act stage, the country’s e-government program is among the best in the world. Government workers were trained in ICT as early as 1981, starting with a civil service portal INNOVATIVE PRACTICE SUMMARY Agricultural and Rural Information through through IBM. By 2006, data were shared across 13 minis- Ministerial Websites tries that were connected through an integrated central ser- vice system. Internet technology and penetration increased Making It Work in Malaysia rapidly in Singapore. Even 10 years ago, 90 percent of the population already had Internet access. The expansion of Government websites can be specifically related to agricul- government-sponsored “Citizen Connect” centers—placed ture as well. The Malaysian Ministry of Agriculture’s Third in multiple strategic rural locations around the country—are National Agricultural Policy for 1998–2010 was formed to partly responsible for this broad access. Singapore, through improve agricultural productivity and competitiveness fol- its efforts to connect all citizens to the Internet, even despite lowing price increases in imported commodities. The use of resource and infrastructure constraints, has experienced ICT was a major aspect of the 12-year plan (Mathison 2002), impressive ICT gains. For example, it only takes 20 minutes which has made substantial progress over the last decade. to register a business online, and the government offers In one of its major projects, the Ministry of Agriculture, almost all of its 2,600 public services online, making govern- along with farmers’ organizations, developed a portal that ment interaction easier and possible in remote locations. allowed agriculturalists to share information. The website (now at http://www.doa.gov.my/web/guest/home) provides The 2,600 services range widely in scope and subject. Rather a wide array of services, including technical information on than printing documents to turn in to public agencies, people Malaysian agriculture, registered agriculture service provid- can complete most services fully through the Web. For exam- ers (like fumigators), pricing information for producers, open ple, they can apply for maternity leave, pay taxes, register forums through Agribazaar, permits, and archives. It also for university, make appointments with doctors, and search provides a bulletin service for advertisements and events. for information regarding housing (Hachigian and Wu 2003; All of the information can also be accessed by listening to a Riley 2003). Citizens can also apply for passports, change voice recorder easily visible on the website. Farmers can also addresses, and even register small court claims online (see contact officials to locate experts for technical assistance. http://www.smallclaims.gov.sg). Through SMS or through the website, farmers can also con- tact extension agents and report paddy pest outbreaks to the ministry. BiblioRedes in Chile Because of literacy and limited computer education, pro- The development of the now quite advanced Web (and grams that help educate farmers and other citizens are SMS) portal was done carefully. The ministry did a baseline crucial once network connections are available. Chile’s survey in certain rural areas before implementation. This Digital Equity Fund subsidizes broadband infrastructure survey included questions on farmers’ economic status, in remote areas and funds a project called BiblioRedes. A electronic education, literacy, and agricultural challenges. product of the Digital Literacy Campaign, the BiblioRedes Upon collecting the data, the leaders of the project found project connected 101 of 121 public libraries in munici- that 30 percent of respondents felt that they did not receive pal districts with low connectivity rates to the Internet. adequate agricultural information (through media, television, With this connection, even in isolated regions, a 14-hour radio, and other types of ICT). They also found that only “Digital Literacy” training program is available for new 15 percent of respondents owned a computer and 20 per- users to learn basic computer skills. A complementary cent were computer literate. Not only did this survey help course allows users to learn about other IT applications. shape the website and its services, but it also confirmed Chilean libraries are used often, and as a result, these that farmers would need additional support. The ministry I C T I N AG R I C U LT U RE 322 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T continues to survey farmers, which helps to update Web IMAGE 12.1. Online Access to Public Data, Such as the designers, experts, and the ministry on agricultural issues Ghana Living Standards Surveys, Can in rural areas. Stimulate Research and Development Aggregating Research Information in Ghana Making research results available to the public is also essen- tial to fostering innovative solutions to poverty and eco- nomic growth. Much internal research done in developing countries sits in an office, restricting dissemination. Some countries are now actively posting data and country analy- sis on their websites and open access software (See Topic Note 6.1 in Module 6 for more discussion on the dissemina- tion of research results.) For example, the Ghana Statistical Service, which is closely linked with the Ministry of Finance and Economic Planning, created a website for in-country research and data. The website offers aggregate informa- tion on macroeconomic variables, national surveys, and Source: Ghana Statistical Service (http://www.statsghana.gov.gh /Publications.html). downloadable publications like the Ghana Living Standards Surveys (http://www.statsghana.gov.gh/Publications.html) (image 12.1). Many of these survey results focus specifi- cally on rural demographics, such as households engaged identification. Identity theft or fraud is a common problem in agriculture, household income, assets, credit, expendi- in all countries and poses many challenges to providing pub- ture, seasonal patterns, and home processing of agricultural lic services. For example, a sick person might try to access products. The data serve as a resource for development health care under a relative’s plans by using the relative’s partners and universities trying to address rural challenges. identification, or a farmer who takes a loan one year might They also inform local governments and actors, as well as try to pass as another person to receive another loan the donors looking for new areas for investment. following year. Today, credit markets, voting, and targeting public service delivery are prominent identity challenges in It should be noted that Web portals specifically purposed to agriculture development. help rural farmers are often largely ineffective due to lack of access and regularly updated information. This is even more pronounced for government websites attempting to provide Bangladesh Takes on Biometrics market and price information (more information on these Biometric ID cards, which are like laminated identification government challenges can be found in Module 9). Rather cards but with a microchip or barcode, are being used in than abandon Internet portals that do provide worthwhile developing countries like Brazil, the Republic of Korea, India, and open-access information to some farmers, governments Senegal, and Bangladesh for public services like voting and should pursue SMS dissemination through Web-to-phone employment programs (image 12.2). In Bangladesh, the software, while continuing to build regularly updated and reli- Bangladesh Election Commission, the Bangladesh Army, and able content. international organizations took part in designing, funding, and implementing a biometric identification system for 80 mil- lion Bangladeshi voters in just three years. During this time, INNOVATIVE PRACTICE SUMMARY huge training activities took place to build capacity in election Using Biometrics to Provide Rural Services workers, and more than 15,000 computers were delivered to Websites offering research, services, and information are voting registration centers. The Bangladesh project had 14 not the only type of ICT that government can use to improve stages, including but not limited to form distribution and data the provision of public services in rural areas. Biometric cards collection, data verification, data export to server, proofread- are up-and-coming examples of government-sponsored ICT ing/editing, preparation of proof voter list and verification, tools in developing countries. Fingerprints, iris scans, and card preparation and handing over for distribution, card dis- electronic passports are all useful applications for accurate tribution, correcting mistakes in cards, and data safeguarding ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 323 and distribution (Islam and IMAGE 12.2. Biometric Identification Can Replace Traditional Forms of Identification Grönlund 2010). The proj- ect used an Automated Fingerprint Identification System, as well as a multi- biometrics Face-Fingerprint Recognition System that has proven to be very effective in capturing human traits (Jain and Ross 2006). The combined software package produced a two-dimensional barcode with fingerprint templates, along with a card including the person’s name, gender, birth date, photo, and signature. While the project had no shortages of trials, overall, the biometric card initiative in Bangladesh was considered Source: Simone D. McCourtie, World Bank. a success. Strategic planning and innovative methodolo- The use of these cards is expected to extend (and has gies helped the project deal with challenges like geography. already, in some pilot areas) and improve agricultural and rural Enumerators reached even the most rural areas using vari- employment programs. An example of this is the National ous types of transportation, including walking, human haul- Rural Employment Guarantee Act (NREGA), established in ers, speedboats, and helicopters (Islam and Grönlund 2010). 2006, which guarantees 100 days of annual employment at The UN stated that the biometric project produced the most minimum wage rates to all rural adults who are willing to credible election in the history of Bangladesh (UNDP 2008), perform unskilled manual work. The act involves all levels maintaining a 98 percent accuracy rate (UNDP 2009). The of government, including the local (panchayat) institutions success of these biometric identification cards has also that are primarily responsible for registering households, generated discussion about future uses. Although use of the issuing and distributing job cards, allocating employment, cards is now limited to conventional means (e.g., matching a and monitoring the job sites. Applicants to the program must person’s card to his or her features through physical exami- be issued a job card: Once it is issued, recipients can seek nations), the World Bank is exploring new and cost-effective employment from a local NREGA program officer (Raabe ways to use the cards for broader purposes, like agriculture et al. 2010) (http://nrega.nic.in). or rural public services, through electronic means. Despite the benefits resulting from the program (including the fact that more than half of the program’s beneficiaries Biometric Innovation in India belong to Scheduled Castes and Tribes, and more than half Over the next few years, over 1.2 billion people will be issued are women), it has also had its fair share of challenges. personal biometric cards that include simple data like birth Corruption by job card issuers, electoral politics that limit dates and sex; and in the future, more complex data like crimi- citizens’ ability to get access, misappropriations in pay- nal records, credit histories in India (image 12.2) (see http://uidai ment, and substantial delays in issuing cards are only some .gov.in/ for more information). Called “Aadhaar,” the unique of the problems experienced. In the last four years, more 12-digit identification numbers, which cost around US$3 than 1,200 complaints regarding program irregularities have each, will allow all citizens to gain access to public services come to the Ministry of Rural Development (“Biometric like banking and education anywhere in the country through Cards to NREGA Workers on Anvil,” 2010). However, bio- the biometric data and online verification systems. Already, metric cards and devices provide opportunities to address 30 million people have been given a number (Polgreen 2011). these challenges. Biometric cards, instead of job cards, are I C T I N AG R I C U LT U RE 324 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T being piloted in Andhra Pradesh and Bihar to better identify Many one-stop shops facilitate business start-ups. Business and ensure payments and accessibility. Wage dispersion will start-up involves numerous formalities—registration for also improve through the use of biometric ATMs (Patowary taxes, pensions, and insurances, screening procedures, 2009). These ATMs require fingerprint authentication so opening bank accounts, and obtaining environmental cer- rural employees can receive wages by way of a thumbprint tificates (de Sa 2005). Even in developed countries, these scanner instead of a personal identification number. This formalities take time. procedure will help to reduce delays, improve transparency, and reduce irregularities. One-stop shops are most effective online, but some countries can provide only start-up information and docu- Some issues in using biometric data should be noted. Aging ments online; entrepreneurs must travel to a city to com- or accidents that cause burning or deformities reduce the plete their business registration. In 2005, Kosovo provided biometric software’s ability to accurately capture all citizen e-government services in this manner. Forms could be down- groups (Giné, Goldberg, and Yang 2010). Costs can also be loaded from an e-government website that also specified the underestimated. The London School of Economics found sequence of procedures and costs, but the transactions had that in India, the government grossly underestimated the to be completed at a central location in the capital. Now the 10-year rollout costs (Giné, Goldberg, and Yang 2010). Also, Kosovo government is establishing completion locations in some societies do not support the use of biometrics. A sur- each of the municipalities. Reform efforts like these, along vey in the United Kingdom concerning biometrics found that with others aiming to expand business capacity, led to a 55 percent of respondents felt that biometrics infringed on 47 percent increase in registered businesses from 2005 to civil liberties (Giné 2010). Another problem is rollout costs. 2009 (World Bank 2009). For just this fiscal year alone, Aadhaar will cost around US$326 million (Polgreen 2011). Vietnam has worked for many years to develop quality e-commerce systems. In 2000, the Ministry of Planning and Investment began building a useful website for busi- INNOVATIVE PRACTICE SUMMARY nesses, particularly foreign investors. The first experiments E-Government to Business with e-commerce technology occurred in Ho Chi Minh City E-government to business is also important to ICT develop- and Hanoi (Desai and de Magalhaes 2001). Working to sim- ment and economic growth. Public agencies can use ICT to plify administrative procedures, the government created an bring foreign investment, expand small businesses, and link online, one-stop shop for private enterprise (Vasavakul 2002). farmers to buyers. Financial transactions like paying taxes can This website (in English and Vietnamese) now includes be carried out online. Electronic markets can facilitate sales license and permit applications as well as standardized and purchases. Businesses can also obtain regulatory informa- forms for the various departments with which firms must tion and permits or licenses through government-sponsored interact during or after registration (Wescott 2003) (For one- ICT. Often, businesses already conduct online transactions stop shop information, see http://www.dpi.hochiminhcity (e-commerce) with other firms. If the government also pro- .gov.vn/invest/index.html and http://www.business.gov.vn vides online services to businesses, many of the same ben- /mastertop.aspx?LangType=1033.) efits are gained. E-government services for firms diminish red While this one-stop shop certainly expanded capacity for for- tape and improve regulatory clarity. As a result, businesses are eign investors, small businesses in rural locations struggled to more competitive and efficient—qualities that are particularly access similar e-government services. A survey conducted in important to the agricultural sector. 2006 (five years after the one-stop shop was implemented) showed that most users living outside of the main cities had Providing Regulatory Information to Small and poor telecommunications services; one interviewee stated Medium-Sized Enterprises that the “connection in the rural Internet shop is very slow. Between 2003 and 2008, 24 governments created websites Many times I wanted to send a message but had to drop since dedicated to serving private enterprises, which use these “one- waiting so long” (Nguyen and Nguyen 2006). This rural/urban stop shops” to register, pay taxes, obtain licenses, and com- and domestic/foreign disparity increases the digital divide and plete other business processes (today, there are even more). reduces the participation of rural smallholders. Though foreign The service is often very efficient, cutting delays in bureaucratic firms have access to one-stop shops, rural owners of small procedures like registration by 50 percent (Djankov 2008). and medium-sized enterprises must resort to slow, costly, ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 325 IMAGE 12.3. One-Stop Shops Using ICT Can Increase Efficiencies in SME Start-Ups but not limited to corporate income tax, value-added tax (VAT), national pension scheme, and company registrations. The automated payment software facilitates a computerized rela- tionship between the banks, business, and government.1 Mauritius uses a Value-Added Network, which is a secured private network between banks and the government, operated by a trusted domestic service provider. When a firm registers for the service, the bank will remove cash from the businesses and send it to the government. The govern- ment will then send an email receipt to the business. Identity Source: Tran Thi Hoa, World Bank. management software is also used, offering syntax checks, bureaucratic procedures. Development partners like the user validation, and integrity checks, all of which are important World Bank have been working to expand the one-stop shop to building user confidence. service to Vietnam’s small and medium-sized enterprises by providing specific electronic and physical contact sites This transaction scheme has a number of outstanding ben- (image 12.3). (See http://www.business.gov.vn/index.aspx efits. Taxes and business fees are crucial to economic devel- for government efforts to help small and medium-sized enter- opment; in fact, in Mauritius “income taxes and VAT consti- prises and IPS “Vietnam’s One-Stop Shop for e-Government tute around 34 percent of government recurrent revenue” Services,” in Module 13 for application to land administration.) (Lollbeharree and Unuth 2001). The benefits of this faster electronic process include: ƒ Easing pressure on government during busy times like Securing Efficient Payment Systems and Tax Services tax periods. Automated payment software systems are very useful ƒ Reducing employee numbers on government payrolls e-government technologies. In 2000, the Contribution Network and preventing staff from making multiple data entries Project (http://mns.mu/index.php) was implemented as a for records (even in developing countries, paper tax public-private partnership between the Mauritian Government, forms typically enter a computer system at some point). Bank of Mauritius, and the World Bank. As an e-government to business service, the Contribution Network Project pro- ƒ Speeding up cash flow. vides one channel for all payments that Mauritian firms need ƒ Generating revenue for sustainability. to make to a variety of departments (Heeks 2002). A decade later, the Mauritius Revenue Authority (http://www.gov.mu Initial investment costs can be quite high for automated pay- /portal/sites/mra/index.htm), a product of the Contribution ment systems like these, but the returns on the investment can Network Project, in collaboration with the Companies Division surpass them. Setting up the main facility for the Contribution (http://www.gov.mu/portal/site/compdivsite/menuitem Network Project required a capital investment of around .e24cd2cc6b820a052eada 810f6b521ca/), collects revenue US$250,000. Employers then bear the costs for hardware, from both business and citizens electronically. connection to the network, and training (this totals around Businesses small and large can set up an account to automati- 1 For more on automated payment systems, see Sumanjeet (2009) cally pay a variety of government-required expenses, including and Frederick (2009). I C T I N AG R I C U LT U RE 326 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T US$1,410). There are communications fees based on the monitors traffic volumes, which help to predict potential volume of data transmitted—currently, employers are charged maintenance needs. about US$0.18 per kilobyte (Lollbeharree and Unuth 2001). Indian businesses face serious obstacles to smooth transporta- tion. The logistics of getting people and goods from Point A to Increasing Efficiency in Transportation and Logistics Point B constitute almost 10 percent of the country’s GNP, out Businesses, particularly agribusinesses, face major chal- of which almost 40 percent is transportation (Sriraman 2009). lenges in transportation infrastructure. Poor road conditions Moreover, the use of vehicles to transport goods has grown in like potholes and soft shoulders cause terrible accidents and past decades. Road quality and accessibility are important fac- traffic. The resulting high transaction costs reduce firms’ tors in transportation development, but another challenge is and growers’ international competitiveness (Sriraman 2009). the speed of transport. Truck drivers carrying goods, especially Import costs rise and trade declines when road infrastructure over state lines, are stopped and checked, fined, taxed, and is poor; studies have shown that a 10 percent increase in questioned. These activities slow traffic and increase transac- transportation costs lead to a 20 percent decrease in trade tion costs for both the government and the agribusiness. volumes (Limao and Venables 2000). Transportation costs can reduce the market value of rural producers’ goods to such an India is one of the first developing countries to implement elec- extent that it is not cost-effective for businesses to purchase tronic tolling systems. The National Highways Development them for export. Similarly, transportation costs for imported Project, chiefly funded by toll fees, began a long-term invest- commodities can double shipping charges and make them ment in improving road conditions on the country’s National unaffordable for rural citizens. In both cases, private enter- Highway Network. The primary initiative of the project was prises are deterred from reaching out to rural locations. to expand automated tollbooths. The government chose radio-frequency identification (RFID) technology, which uses Developing countries have adopted toll roads to overcome electromagnetic waves to exchange data between a terminal some of these challenges. Toll roads provide funding to and an object, like a vehicle, and costs less than other options maintain and expand roads, but collecting tolls and fines is (table 12.4). (For more information on RFID, see Shepard quite difficult. Toll operators can pocket fees and bribe driv- 2005 and Banks et al. 2007.) A number of activities can be ers for still more cash. Drivers can refuse to pay, and with- tracked with RFID, such as activities involved in supply chain out strong vehicle identification schemes, governments management, passport or other identification control, and cannot ensure that they are properly fined. Electronic toll animal identification. For India’s toll roads, RFID is coupled collection is a more efficient way of collecting road fees. It with a national, unified, central management system; a legal reduces the scope for bribery and loss of revenue by track- framework to handle violators; vehicle classifications; and a ing cash and vehicle flow, decreases waiting times, and prepaid system for interested users (Nilekani 2010). Users TABLE 12.4. Comparing Costs for Electronic Toll Collection, India ETC TECHNOLOGY COST SUPPLIERS IN USE COMMENTS Active Microwave 5.8 About Rs 2,000 per OBU Limited Yes (Japan) Due to higher bandwidth and data speed, sup- GHz About Rs 5 Lac per Reader ports many ITS applications DSRC Passive Microwave 5.8 Rs 1,000 for OBU Multiple Yes (Europe) Very Simple OBU GHz  Rs 2L for Reader Infrared ISO-CALM Rs 1,000 for OBU Limited Yes (Austria and Can be easily extended to a contactless card  Rs 2L for Reader Malaysia) and useful for other ITS applications Passive RFID About Rs 100 per Tag Multiple Yes (South America, Allows tamper resistant “stickers” About Rs 2 Lac per Reader Georgia, U.S.) Small, light, very cheap, almost unlimited life RFID Active RFID About Rs 1,000 per On Board Unit (OBU) Limited Yes (Florida) On-board transmitter, higher range, expensive Finite life, as the battery has to be replaced GNSS/CN About Rs 2 Lac per Reader Limited Yes (in Germany) Too sophisticated and due to absence of toll plazas, About Rs 2000 per OBU enforcement on violations is very difficult in India. Source: Nilekani 2010. Note: ETC = electronic toll collection; OBU = on-board unit; DSRC = dedicated short-range communication; GNSS/CN = global navigation satellite system and cellular network; Rs = rupees; 1 lac = 0.1 million; ITS = intelligent transportation systems. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 327 can also pay their bill through mobile phones and credit cards. transactions like procurement. In the long run, the systems Technologies like RFID are not limited to the federal govern- should be able to interface with other financial software like ment. In India, for example, Gujurat State has computerized payroll. Financial systems have extensive applications—they its 10 internal checkpoints, a step that dramatically increased track incoming revenue, monitor debt, and enable resource state tax revenue and reduced corruption (ADB 2003). management and audit operations (USAID 2008). An impor- tant feature is that they can also help federal agencies inte- Not only do technologies like RFID dramatically reduce trans- grate with local ones to monitor financial flows. action costs for travel; they also create more opportunities to extend e-government to businesses and citizens. Once RFID is A recent in-depth, qualitative study (Ezz, Papazafeiropoulou, established, it can be applied for tracking stolen vehicles, paying and Serrano 2009) conducted on an IFMIS in Bezuck2 illus- vehicle taxes, and paying driving or parking fines (Nilekani 2010). trates the challenges in implementing integrated financial systems. The IFMIS included a variety of public agencies— Even more important, these technologies benefit rural sec- the Central Bank, a number of ministries, and the Bezuck tors. If businesses have smoother transportation facilities Information Support Center (ISC), a prominent think tank and reduced road costs, they are more likely to travel further that guides cabinet leaders on economic, social, and politi- to buy or sell agricultural products. Similarly, the revenues cal decisions. In the early 2000s, these agencies were man- gained from toll collection can be applied to infrastructure for dated to interact and collaborate with the ISC to improve rural feeder roads. financial decision making. The ISC introduced an IT sys- tem to facilitate this process by tracking and documenting the various agencies’ transactions. As financial processes INNOVATIVE PRACTICE SUMMARY became digitized, the historical challenges to collaboration E-Government to Government became more apparent. Roles of certain ministries were This section discusses internal e-operations concerning not clear, and many employees did not understand the new government-to-government interactions. These ICT initia- system’s capabilities. Some traditional decision-making pro- tives are equally important to e-government–citizen and cesses were interactive, some were sequential, and others e-government–business relationships, because public agen- depended on another person’s completed tasks. Because of cies that use ICT to service other organizations or people this complexity, ministries struggled to use the new ICT to usually are required to use it themselves to make the ICT make financial decisions. Another challenge was overlap in IT effective. E-government to government involves “agency to support. Ministries have their own IT departments with their agency” interactions mentioned briefly in the NeGP exam- own procedures to deal with technology troubleshooting ple. E-government to government or employees is essen- (Ezz, Papazafeiropoulou, and Serrano 2009). Despite these tially an advancement of human resource and administration difficulties, the agencies’ attempt at financial integration led capabilities. For employees within a government agency, ICT to training for over 50,000 government employees (United projects can include human or knowledge management sys- Nations Department of Economic and Social Affairs 2009). tems, purchasing requisitions, payroll processing, position applications, and department transfers (Fang 2002). It is vital Decentralizing E-Government to Local Levels that internal e-government projects integrate service delivery Established in 2005, the Ministry of Local Government in channels and common interministerial infrastructure and do Uganda, in collaboration with DFID and the International not continue to reinforce fragmented ones (OECD 2003). Institute for Communication and Development, began to pilot e-government at district headquarters and subcounties. Improving Internal Public Financial Systems Called DistrictNet, the digital system aimed to improve data Integrated financial management information systems (IFMIS), and voice communications between district-level officials or the computerization of public expenditure management, are and the sublocal government actors below them. The sys- designed to support and track budget decisions and execu- tem was implemented in 76 districts in all regions, initially tion, fiduciary responsibilities, and financial reports in various focusing on 11 subcounties. Before the ICT was introduced, government bodies (USAID 2008). They help lock agencies subcounties collected data through hard-copy forms in the into a single, common platform for data storage and sharing. IFMIS involves standard data classification, internal controls 2 Bezuck is a name invented to preserve the country’s anonymity, over data entry and reporting, and common processes for because of the challenges in implementing ICT. I C T I N AG R I C U LT U RE 328 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T communities and sent the forms to district headquarters. volume of data exchanges, use of IT systems, and informa- This process yielded little data, caused backlogs of three to tion requests by citizens (United Nations Department of six months in paperwork, and caused data to be lost during Economic and Social Affairs 2009). paper shuffles (United Nations Department of Economic and Social Affairs 2009). Data are still collected on paper at the community level, but they are digitized by the subcounty and electronically for- The objectives of digitizing some of these processes warded to district planners, who analyze them and provide included increased coordination between district headquar- feedback to their local government counterparts. Impact ters and subcounties, reduced travel between these loca- studies show that feedback is better and timelier, owing tions, improved technical skills, and increased availability of to more accurate, digital data transmission. Because the information. To meet these goals, voice and data links were Ministry of Local Government is no longer involved in the established between district headquarters and subcounty district analysis, staff can focus their energy elsewhere. governments. Because many subcounties lacked electricity, Significant challenges to implementing the system included other energy sources were used to create the links. A valu- low levels of professional technical knowledge and low able aspect of the project was that it measured the initial computer literacy within the local government (Jager and results through a variety of indicators, such as the time it Reijswoud 2003). took subcounty officials to respond to district queries, the Topic Note 12.2: CIVIL SOCIETY AND THE PROVISION OF E-SERVICES TRENDS AND ISSUES more specific groups or needs and fill voids in public service, Civil society organizes in groups that are not part of the local, whereas government must sometimes function as a public state, or federal government. These groups include a wide service catchall. The environment, gender, agriculture, and range of institutions, such as unions, trade associations, education are all important niches for civil society operations, self-help groups, and NGOs. They can operate on a local, depending on the context. grassroots scale with a small, restricted membership or Civil society groups are a growing presence in rural areas; of have a presence in multiple countries and communities. these groups, the most active are domestic and international Their serious involvement in economic, social, and political NGOs. The innovative practice summaries focus on these development makes them important participants in the rural organizations because they have been so active in rural agricul- governance discussion. Moreover, ICT tools are important to ture. Over the last decade, other civil society organizations— their efficiency and ability to contribute to growth. producer groups and self-help groups, particularly in relation Civil society groups can use ICT tools to improve the lives of to agriculture—have become increasingly involved. Their use beneficiaries and internal management, especially given that of ICT, though related, is addressed in Module 8 on farmers’ these tools are widely recognized for their role in promoting organizations. democracy, fostering compliance with human rights accords, and improving livelihoods (Ganie-Rochman 2002; Hadiwinata 2003). They provide many digitized services similar to those LESSONS LEARNED of public agencies. Civil society groups can facilitate the Civil society groups can improve rural governance dramati- interactions between producers and extension agents or cally, especially through ICT. Civil society groups, which traders. They can partner with government and contribute are often present in their beneficiaries’ communities, have to electronic voting and toll collection systems, or they can more opportunities to influence cultural and social dynamics independently broadcast radio programs on agricultural tech- than federal or even local government. This role is important, nology or business. Yet civil society also has the opportunity because culture, upbringing, values, and norms influence the to use ICT in more sensitive activities. These organizations extent to which a person or farmer may desire to use ICT. For can publish information on political figures, political parties, example, younger people are usually more adept with new or new legislation. They can more easily direct their efforts to computer technologies, the Internet, or SMS applications, ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 329 yet in rural societies where senior staff or family members ideas transform into tangible tools, they struggle to gain have authority and the most access to information, younger attention and capital, limiting their viability as a business or citizens with the ability to learn these new technologies service. mLabs seeks to improve this situation. In five differ- often are not permitted to do so (Mercer 2004). At other ent regions (East Africa, Southern Africa, the Caucasus, East times, older people are not confident enough to experiment Asia, and South Asia), infoDev is establishing centers with with new technologies. Civil society groups, especially if the tools needed to experiment with and expand innovation, they are local organizations, can facilitate the knowledge including agriculture innovation. transfer from youth to senior community members. Again, ICT to enhance governance or even agricultural productivity mLabs (image 12.4) will provide entrepreneurs with high- is not just a matter of physical access and ownership, but quality equipment, stable Internet connections, and techni- also a matter of obtaining social access (Flor 2001; OECD cal and business training. These services will allow users to 2003; Madon 2004). test ideas, scale up software capabilities, expand scope, and hone the skills needed to capitalize on their tool or applica- The most positive institutional reforms have grown out of tion. Through events, competitions, and business mentoring, public demand. Limited understanding of ICT applications innovators will also have easier access to investors. mLabs and their economic usefulness can restrict the demand for provides an innovative civil service: a hub that allows cre- and success of these technologies in the agrarian sector. ativity, risk, failure, and success, coupled with the necessary Creating demand for ICT is often easiest when community tools and support needed to build new instruments that can leaders take a stand and engage both local citizen groups and service the population. This kind of hub is critical to develop- local politicians. Local civil society organizations can nurture ment, particularly because local entrepreneurs know their leadership figures and create forums for citizen education communities’ needs better than external providers. and awareness. mLabs are in incipient stages, starting with an investment of approximately US$380,000 each. This suggests that mLabs are largely unsustainable without additional and regular INNOVATIVE PRACTICE SUMMARY Providing ‘Hubs’ for ICT Innovation financing. While uncertain, mLabs does have a business model that may address common financial constraints. First, NGOS can offer dynamic services by creating ICT hubs “to depending on the business model used in that location, local channel the information that the farmers need or use to programmers, entrepreneurs, developers, or designers can help their work” (Mercer 2004) into one place. When NGOs become members of the mLab. Membership is based on the and development partners offer Internet or ICT support in services desired—some memberships are free and others a central rural location, many people, including farmers, can access e-services more easily. These hubs not only increase farmers’ knowledge communication with others, but they IMAGE 12.4. mLab in East Africa Assists Agricultural also help the government achieve results. Governments can- Entrepreneurs not provide overly ambitious public services in developing countries. The participation of development organizations in providing e-services may help to reduce the pressure on underresourced public agencies and promote innovation in rural communities while providing relevant and context- specific information to local people. InfoDev, in collaboration with a variety of other partners, has very recently developed an innovative hub: the mobile applications lab (or mLabs) (http://www.infodev.org/en /TopicBackground.34.html). Considering the rapidly expand- ing telecommunications infrastructure, mobile applications, and electronic public services, spaces that allow innovation and entrepreneurship to thrive are critical resources. In many developing countries, innovation is thwarted by financial, human, and technological constraints. Even where good Source: Tim Kelly, World Bank. I C T I N AG R I C U LT U RE 330 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T are fee based. “Incubatees,” which are at the highest level of systems and various cropping methods. Useful for nutrition membership, are members who are actually pursuing a busi- and crop development, the website contains a glossary on ness idea. Incubatee fees will vary based on location—some rice as well as downloadable handbooks on disease, hybrid will charge a monthly fee, and others will allow free use of the production, rice morphology, and natural disasters. The Cereal lab under the conditions that the lab receives an equity stake Knowledge Bank provides information on extension, such as in the company. These incubatees will have full use of the lab how to create an extension system, needs and opportunity and its services; they can also work for a paid salary within assessments, and a checklist for extension start-ups. the mLab. Without going into great detail on the remain- ing levels of membership, mLabs expects to collect fees The site demonstrates a high degree of user-friendliness, or or receive income from companies that land in commercial usability, a critical aspect of successful ICT implementation. markets. Additionally, mLabs will reach out to the private and Text options and clear links to other sites create this friendli- public sectors. Due to their entrepreneurial nature and mobile ness. Useful buttons (“back,” “home,” and “help”) are at the focus, the mobile applications generated in mLabs are likely top of each page and clearly marked, making it easy for people to attract seed investment (for more information on mLabs’ of all ages and skill sets to access information. Moreover, the business plan and sustainability prospects, see http://www Knowledge Bank maintains information on 13 countries. By .infodev.org/en/Article.705.html). clicking on the country flag, users can access the information in the country’s official language. Giving the user options is mLabs East Africa is currently the furthest along in develop- also part of usability; a lack of options and links to nonexistent ment. The lab has recently selected its first set of incubatees, websites frustrate users. which includes entrepreneurs focused on agriculture and market information systems (see http://www.ihub.co.ke Through ICT, development organizations can also provide /blog/2011/06/first-set-of-incubation-clients-selected-for-mlab online networking opportunities to citizens and farmers to -east-africa/ for further information on these start-ups, which increase their learning. Networking leads to empowerment, include mFarm and Zege Technologies). These start-ups, while gives citizens a voice, and makes it easier to disseminate receiving the opportunity to gain visibility, capital, and techni- technology in agricultural communities. The Indian Society of cal assistance, also receive the benefit of contributing to their Agribusiness Professionals (ISAP) is a civil society institution communities, country, and social and economic development that was established in 2001. A network of agricultural profes- (with the caveat that these hubs and technologies become sionals in India and other developing countries, it now hosts popular and widely known). mLabs, and the few similar to them over 15,000 associate members, including 1,500 agri-experts, (see Grameen AppLabs for innovative approaches on applica- 525 partner NGOs, 1,050 researchers, and over 824 individual tion development: http://www.grameenfoundation.applab.org users (according to its website, http://www.isapindia.org /section/index), have the potential to improve agriculture public /Default.aspx). One of the world’s largest agricultural networks, services and others by giving underresourced and contextually ISAP aims to serve farmers, rural entrepreneurs, and gradu- based entrepreneurs the opportunities to grow. ate students who do not find appropriate employment (Singh 2006). Its goals, as summarized on its website, include improv- ing the livelihood pattern of smallholders through improving access to affordable technologies and market-related informa- INNOVATIVE PRACTICE SUMMARY tion, extension services and advice, access to market capital E-Learning through the Web and SMS and risk management tools, as well as network development. Like government, civil society groups can also provide agri- culture information through websites tailored to particular The network has a number of projects to achieve these goals. technologies or needs. The Cereal Knowledge Bank is an It offers training and conferences on commodity futures and innovative, interactive website on rice, wheat, maize (corn), trading; to date, ISAP has trained almost 80,000 farmers at and cropping systems (http://www.knowledgebank.irri.org/). 2,064 locations in India. The network also offers programs to The International Rice Research Institute and International upgrade skills. The most innovative aspects of ISAP are its Maize and Wheat Improvement Center, which launched the membership program and network solutions. For free, individ- website in January 2008, offer useful tools for improving rural uals can apply for basic registration, which gives them access agricultural productivity. Users can click on a large button to Web sources like “Ask the Expert,” job search engines, named “Maize Doctor” to receive diagnostic tips. The Cereal an online query redress service, and technology assistance Knowledge Bank also offers information on rice evaluation for commercializing products. For Rs 600, an individual can ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 331 receive an annual subscription to Weekly Market Newsletter A user interface that uses words and icons (image 12.5) in Hindi, access peer-to-peer networks, and obtain a 15 per- allows nonexpert civil society groups to record a variety of cent discount on advertisements (posted on the ISAP site) and important data. The software can be installed on either a conference fees. These individuals can also participate in the PDA or smartphone to collect large amounts of field observa- ISAP consortium for consulting to receive or obtain referrals. tions, with spatial references through a GPS. Using a touch For various prices, other development agencies, academic screen, the technology can be customized to fit users’ needs institutions, government agencies, agribusinesses, and over- and improve efficiency in data collection (for example, users seas organizations can receive the same access. can select which icons or lists they would like shown on the screen). The software can also be customized to local Finally, the ISAP network connects producers to buyers. languages. With an icon-based, simple screen, local people The organization involves producers, traders, NGOs, and can use the technology to collect complex data. When the farmers groups, thus obtaining end-to-end solutions in sup- data are transferred to computers, interactive maps show ply management. Through its networks online and activities detailed patterns of ecological features like animal traffic or on the ground, ISAP provides training on markets and gives agricultural areas. Analyzing these patterns has high potential technical advice on production and postharvest management to project future trends, especially if data are collected in a to farmers. By tracking these farmers, private enterprises variety of locations (CTA n.d.). are assured of quality products because they know that the farmer or cooperative in question attended ISAP training. CyberTracker is used all over the world for many purposes. In Africa, it is used primarily to track animals and plants, with the intention of monitoring ecosystem changes caused by climate change. The technology can also be used to monitor INNOVATIVE PRACTICE SUMMARY crop growth and livestock movement. Local people, even if Collecting Data to Protect Local Knowledge they have little or no education, can be paid to track ecological and Ecosystems change using the technology, because the interface is so user Public agencies are limited in their ability to collect relevant friendly. Aside from creating jobs in the rural sector, the technol- data in all rural locations, but new ICT tools make easy data ogy captures invaluable local knowledge that is being lost as collection possible through civil society groups. CyberTracker indigenous populations disperse and new technologies enter (http://www.cybertracker.org/), originally created to track rural areas. Rural, indigenous populations gain a more effective animals and plants for conservation, has created opportu- position and voice in policy dialogue. Civil society groups work- nities for poor, rural, and illiterate people to collect useful ing to improve understanding of local needs in agriculture can information on a variety of subjects. The technology is open use CyberTracker to capture relevant data cost-effectively, with source software developed in South Africa by CyberTracker few outside resources. They can also use the technology to Conservation in collaboration with the European Commission. capture social data through digitized surveys (CTA n.d.). IMAGE 12.5. CyberTracker Gives Users Icon and Word Options Source: CyberTracker (http://www.cybertracker.org/). I C T I N AG R I C U LT U RE 332 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T Topic Note 12.3: INCREASING CITIZEN PARTICIPATION THROUGH E-DEMOCRACY TRENDS AND ISSUES Digital democracy—a “collection of attempts to practice Waves of new ICT applications have opened opportunities democracy without the limits of time, space, and other physi- for citizen participation in various types of regimes and loca- cal conditions, using ICTs” (Nugent 2001, cited in Schwester tions. In fact, experts feel that one of the most promising dig- 2009)—is not synonymous with electronic voting (as per- itized applications of ICT is to foster broad participation, local ceived in the past). Considering the taxonomy described innovation, and social learning (Hanna 2009). This potential, earlier, ICT can help citizens influence government decisions coupled with citizens’ recent ability to increase their voice in in many ways (Macintosh 2004). With ICT, institutions can state affairs and organize more effectively through ICT tools disseminate information faster through cell phones, radio, or (like those recently witnessed in the Arab Spring), motivates online. To participate in a policy meeting with the Ministry of this discussion, as does the fact that citizen participation Agriculture, farmers can use an ICT application like Skype and and demand for public goods is incredibly important in the eliminate typical logistical concerns (such as organizing hous- agrarian sector. The quality of governance in remote loca- ing and travel reimbursements for 30 participants). Virtual tions often depends on citizen involvement, because so few communities, Web complaint lines, email correspondence resources are available to reach those locations. between government officials and citizens, participatory bud- geting, online media, and Web-based political information Electronic democratic projects can be designed and sharing are all vectors of digital democracy. Fostering citizen implemented by a wide array of institutions. Using ICT to participation through ICT allows citizens to form and find improve democracy is just like using more traditional media groups that have similar interests; for example, agrarian to improve democracy. Town hall meetings, complaint communities can share information on crop diseases, pests, call lines, public surveys, petitions, and newspapers are prices, and technologies. In addition, these communities can all communications media. Residents of a village facing discuss and subsequently act on policies that directly affect an economic downturn can meet in a central location to their activities and livelihoods. Though ICT for citizen partici- discuss possible community-based options. Political parties pation is most heavily concentrated in wealthier countries, can organize a petition, and newspapers can present useful these tools are proliferating to poor countries. Botswana is facts on the activities of politicians or proposed legislation. in the top 25 percent of all countries using electronic means Each of these media has improved its methods through of participation, and five African countries have open Web technologies such as the Internet and SMS. Now people forums to discuss political topics (Hafkin 2009). around the world have faster, real-time capacity to involve themselves in democratic initiatives, meaning that more stakeholders can affect governance processes (Heeks LESSONS LEARNED 2001). The challenges faced by institutions trying to use ICT to The ICT tools used to foster citizen participation can involve a improve citizen participation are similar to those faced by pub- variety of complex processes. A practical taxonomy of these lic agencies and civil society. Technical and infrastructure chal- processes, or what ICT can help to create, is as follows lenges are especially strong for voice conversations, because (Macintosh 2004): poor network connections hamper effective dialogue. ƒ Information: One-way relationship; institutions Unlike e-government and civil society projects intended to produce and deliver political information to citizens improve public services, institutions using ICT to enhance through ICT. democracy may need to address more serious social and ƒ Consultation: Two-way relationship; institutions invite political difficulties. For example, increasing citizen participa- citizens to give feedback on issues; public agencies tion shifts the relationship between government and citizens set the agenda and manage the process through ICT. from vertical relationships to horizontal ones (Ndou 2004). ƒ Active participation: Partnership relationship; citizens Even decentralized and democratic governments have a fairly actively engage in setting the agenda and creating vertical power hierarchy, or a top-down structure. In many content for policy making through ICT. instances, ICT changes this structure rapidly (Fang 2002). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 333 Giving citizens increased access to govern- IMAGE 12.6. Rural Kiosks Can Lead to Information Sharing Between ment information, allowing quick transfer of Agrarian Communities knowledge through cell phones or email, and providing space for a real-time public forum reduces the vertical structure found in most governments and increases the horizontal one. This horizontal shift can dramatically challenge a societal structure (Saxena 2005). While this shift is generally a positive step toward citizen representation, it may provoke a far-reaching backlash from politicians, policy makers, elitists, traditional authorities, and others, reducing the effec- tiveness of the ICT for citizen participation. Some of these negative consequences are currently being witnessed in the regime changes occurring in the Middle East and North Africa. Using ICT for democratic projects also Source: Ray Witlin, World Bank. increases the visibility of cultural chal- lenges. Teaching rural citizens how to use ICT is a challenge employment news, and a landholder’s book of land rights in itself, as is fostering their understanding of participation. and loans. Yet Gyandoot also provides ICT that enhances If digital exercises in participation are meant to be inclusive, democracy, partly because it is an intranet system—all of the addressing perceptions of equality within the community is kiosks are connected to allow citizens to share information. also necessary. Women, youth, and other vulnerable groups An online rural newspaper updates citizens with local political are often excluded from political decision making within information like public expenditures and raises awareness in communities. Extending their participation to higher levels their villages. Complaint lines, expert opinions on legal mat- with new technologies is not effective unless root societal ters, and email are also available. dynamics are explored and addressed. Gyandoot has had its successes and challenges.3 First, pro- viding services like price information and village auctions INNOVATIVE PRACTICE SUMMARY online and directly to farmers removes the intermediar- Information Kiosks in India ies who commonly take advantage of rural impoverished The Gyandoot project (see http://www.gyandoot.nic.in/) citizenry (Meera, Jhamtani, and Rao 2004). Second, kiosk in drought-prone, rural Madhya Pradesh in India is a solid operators performed well. Third, almost 80 percent of users example of both e-government services and e-democracy. were satisfied with Gyandoot’s services. Finally, high rates of Thirty-eight government-owned telekiosks were established satisfaction match the fairly high rates of government action. in central locations like village markets and major roads in Sixty percent of complaints put forth through the Gyandoot Dhar District (Cecchini and Raina 2004), where 60 percent of system were addressed within one week; according to one the population lives below the poverty line (Jafri, Dongre, and survey, district administrators felt that officials’ performance Tripathi 2002) (image 12.6). Rather than using expensive local improved dramatically and immediately because they knew area networks and very small aperture terminal technologies, citizens could file complaints (Jafri, Dongre, and Tripathi the kiosks, which each serve approximately 25–30 villages 2002). through cybercafés (Meera, Jhamtani, and Rao 2004), oper- ate through a dial-up network with modems from existing telephone lines. E-government services within the cyber- 3 Though some of these figures are dated, they are worth includ- cafés include regularly updated price information, computer ing because the real effects of many ICT e-governance initiatives training, application for income and domicile certificates, have not been widely studied. I C T I N AG R I C U LT U RE 334 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T On the other hand, individual access to Gyandoot kiosks generating information on politicians, candidates, and policy. is fairly low. One survey showed that many kiosks served The United States has numerous websites that provide politi- only one to four people per day (Cecchini and Raina 2004). cal information and express views on elected representa- Electricity outages and distance to the kiosk often caused tives. DNet (http://dnet.org/) and Project Vote Smart (http:// this problem. Socioeconomic factors also posed challenges www.votesmart.org/) are led by NGOs. DNet provides infor- for Gyandoot. All surveys cited here found that most users mation about candidates’ positions on election issues. It also were wealthier male community members. Start-up and gives media reports, and encourages candidates themselves intranet costs of more than Rs 2.5 million (Bhatnagar and to post statements, biographical data, and endorsements. In Vyas 2001) were also high. Compared to user fees at Rs 5 some cases, citizens can communicate directly with candi- to Rs 25 per service, incoming revenues could not cover the dates via email and host live interviews. Discussion boards initial expenses. can also be generated for citizen-to-citizen communication. In developing countries, political communities like these INNOVATIVE PRACTICE SUMMARY are slowly coming online and may help generate more Virtual Communities public awareness and participation. As early as 2004, the The proliferation of virtual communities is another result of Tanzanian National Assembly introduced a website for par- expanding Internet connectivity. Presently, tens of thousands liamentary decisions and data. Called POLIS, the site pro- of virtual communities interact via Web-based technology. vides citizens with the proceedings of parliament and other Virtual communities are groups of people who join and par- government activities (http://parliament.go.tz/POLIS/Bunge ticipate in online organizations, usually for a specific purpose, /Polis.asp?Menu=0). Full texts of legislation, fact sheets, and practice, circumstance, or interest (Kim n.d.). The people information like parliamentarians’ voting records are housed in the community may never interact with one another in in this portal. Easy navigation tools—including the MP Profile person, yet with open source technology they can connect, Database, Bill Tracking System, Session Management discuss, and act on local, national, and international issues. System, and the Act and Documents Management System— help citizens find information (United Nations Department Types of virtual communities range widely. People create of Economic and Social Affairs 2009). To achieve further communities for commerce (such as eBay and Craigslist). transparency in rural areas and for illiterate citizens, future Development organizations create databases that members initiatives could include mobile phone applications or POLIS can access for research. Political groups can create websites radio broadcasts. for activists to sign petitions or receive information on events. Practitioners can also set up “communities of practice” and INNOVATIVE PRACTICE SUMMARY organize continuous dialogue on projects or provide useful Government Responsiveness through Citizen job-related material. These communities can help sustain Participation in Digitized Political Processes conversation. For example, after a conference or workshop, Government responsiveness is one of the foundations of interactions between participants usually cease. Yet some effective democracy. Innovative ICT tools give governments have found that forming an online community of practice the opportunity to respond more efficiently and broadly after the event helps to retain long-term participation (Kim through issue-based and policy-based forums. Participation in n.d.). Online communities could have potential for public political processes ranges from expressing online grievances agencies and civil society groups in developing countries. to electronic consultation to participatory budgeting. This Often, participants in meetings organized through ministries section provides an example for each of these interventions. are required to travel to the capital. After the meeting or workshop adjourns, they return to their rural communities. If The Government Information Agency in Korea is considered ministries could create a portal, or community of practice, for the best-practice example for implementing this type of ICT. these participants, facilitating future meetings and continu- Even before 1990, Koreans could access a number of online ing conversation over a sustained period of time might be services, including registering births and locating relevant easier. economic statistics (Sang, Tan, and Trimi 2005). In addition to a frequently updated webpage, secure e-signature system, Political virtual communities are also shaping democ- and personnel management system, the website also pro- racy, holding great potential for creating transparency and vides transparent and timely responses to citizens’ inquiries. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 335 (For more information on electronic signatures, see Gupta, Results were promising. After votes were in, public expen- Tung, and Mardsen 2004.) If someone requests information ditures were allocated from the central government to the related to a specific government policy, public officials collect provincial government and were then used in local projects the applicable information and post results within the week determined by the citizens within the given district. In some (Holzer and Manoharan 2004), demonstrating fast and reli- cases, over US$80,000 was invested in an intervention such able government responsiveness. as a school building, health clinic, roads, or irrigation struc- tures. In most cases, this was the first time that any real In addition, Korea has created e-People (see http://www investment was made in the districts. .epeople.go.kr/jsp/user/on/eng/intro01.jsp), an anticorruption portal that uses cloud computing, complaint lines, petitions, Despite the success of the pilot, there are many challenges and discussion forums to reduce corruption and boost citi- ahead. Implementing construction efficiently is challenging zen engagement in the country. All government ministries in rural areas because the work is often done in remote areas and local government departments, along with 448 public with few qualified staff. SMS hotlines or phones with cam- sector organizations are on e-People. The site receives era capacity could be an option to address this challenge. over 100,000 hits per day, and over 8,000 complaints were Scalability is also in question: once initial donor support documented in 2010 alone. When a complaint is made, it is ends, public and governmental support for the project (which categorized and forwarded to the relevant agency, where requires time and capital) may fade. SMS messaging is too the agency has an opportunity to respond. Citizens (and expensive for citizens to afford, and public subsidization may foreigners or diasporas, who are also allowed to use the be necessary for a number of years. (Source for all informa- site) can check the status of their complaint and evaluate tion: Weber, Maketa, and Tiago 2011). the response given as well. Users can also view a record of the complaints sent by others, allowing them to choose whether to withdraw or submit a similar complaint. This INNOVATIVE PRACTICE SUMMARY option reduces the amount of petitions going to the agen- Digital Media Forums in Developing Countries cies while also helping the government assess the magni- Media outlets also provide space for ICT initiatives to enhance tude of the problem. good governance. Traditional newspapers that have created online websites generate real-time public participation through Participatory budgeting, which is gaining traction around comments and letters. Live chat sessions are also possible the world, occurs when communities and citizens directly through online newspapers, and experts or writers can respond determine how a portion of the public expenditure will be to readers’ comments to carry on discussions about the topic. used. The first phase of a pilot project recently completed in These online and interactive news sources and chats are not the Democratic Republic of Congo has had remarkable suc- limited to more technologically capable countries. Zimbabwe, cess, despite what would appear to be great hurdles. The Bolivia, Nicaragua, the Philippines, and Ghana are only a few of World Bank, in partnership with the provincial government, the many developing countries providing media online. forged a partnership with Airtel, the largest cell provider in the Democratic Republic of Congo. Airtel provided geo- Online independent newspapers can be effective in strict graphic information and premium numbers to the team. After political regimes with little freedom of speech. One such districtwide deliberations, where discussants debated and newspaper, Malaysiakini (http://malaysiakini.com/), made selected five to six main priorities for their district, a short list an enormous impact on governance in a country where the of numbered priorities was created. Before voting day, SMS ruling party dominated the media. The newspaper provides messages were sent to the district’s Airtel users (almost information in four languages. Information includes alterna- 300,000 people), directing voters on how to participate. On tive views on local politics (Pang 2006), and articles explore voting day, users sent a four-digit code that represented their trade issues, government budgets, mining, foreign direct district to the premium number. Once they received the short investment, migration, religion, and agricultural develop- list of priorities for their district and responded, they received ment. New legislation, politics, and corruption are frequently a confirmation of their vote. Their votes were documented debated. When serious news arises, the online news source in real time in an online database, which was connected to also sends subscribers SMS alerts. a GPRS modem with a very low bandwidth. Conventional means of voting were also made available for those without In the last few years, the website has received almost cell phones or an Airtel subscription. 40 million page views and 800,000 video downloads per I C T I N AG R I C U LT U RE 336 M O D UL E 12 — ST RE NGT HE NING RURA L GOVER NA NC E, INSTITUTIONS, A ND C ITIZEN PA RTIC IPATION US ING IC T month (Malaysiakini 2008). Its success stems largely from to improve public access to information and opinion. Blogs the fact that it is only online. Online media cost less than provide writers a space to express personal views or experi- print media (Pang 2006), and the site is subscription based. ences and give readers the opportunity to learn from first- Users pay approximately US$40 to access the daily content. hand accounts. Most bloggers live in wealthier countries, but This fee may be high for rural citizens, yet civil society groups blogging is becoming more common in poorer ones. could help to pay this price to make the information available to poorer people through a hub like a telecenter. A significant Global Voices, an international nonprofit, offers a space for limitation is that because the newspaper is not produced in a bloggers and readers in almost 20 languages. With a com- traditional print format, it cannot receive press accreditation, munity of over 300 bloggers and translators, the organization so its journalists cannot enter political spaces and attend aims to “aggregate, curate, and amplify the global conver- potentially important meetings (Pang 2006). sation online” (http://globalvoicesonline.org). Global Voices partners with authors to produce relevant, region-specific An organization in Tanzania, Daraja (http://www.daraja.org/), is blogs in countries all over the world. Readers can access also experimenting with ICT and media to achieve improve- blogs written on specific subjects like agriculture. Of course, ments in local government and boost citizen inclusion in many bloggers on Global Voices tend to be urban and more political processes. The new organization intends to build educated than rural farmers. As a result, the organization links between government and communities on critical topics began an outreach project called Rising Voices. Twice a year, in Tanzania. One such project involves water services: over the initiative holds a microgrant competition to select new half of Tanzania’s rural water points are malfunctioning despite media outreach projects. Recipients of these grants teach increases in government funding and population growth. ICT techniques to communities that are poorly positioned to The three-year “Raising the Water Pressure” program uses take advantage of tools like blogging. local populations and the media to place political pressure on government officials in rural areas. Through mobile phones, There are certainly constraints to blogging in developing citizens can send feedback or grievances about their local countries, especially rural areas; lack of electricity and low water supply. This information is forwarded to the appropri- bandwidth are typical challenges. Blog tools are often in ate district officials and the local media. Local media can then English, which limits who can use them, but the number interact with district officials to determine their plan of action of blog tools is expanding quickly. A number of providers regarding the poor water service (image 12.7). like Wordpress, Google, and Aeonity offer free hosting and troubleshooting help for users. In fact, Weebly has a “drag The use of mobile phones also increases the voice of the common citizen or vulner- IMAGE 12.7. ICT Can Support Well Water Infrastructure Monitoring able group that may not receive access to the government. Since its inception, 500 texts have been sent to the water database, of which 100 have been for- warded to district officials. Only 100 have been forwarded due to challenges with illegibility; illiteracy is a major barrier to the program’s success. However, in the cases where grievances were passed to government officials, reactions have been positive. Daraja also plans to assist local governments in technical capacities, in order to build a positive relationship with local officials (Taylor 2011). (For more infor- mation on this project, see http://www .daraja.org/our-work/rtwp.) Blogging is another innovative and inex- pensive form of ICT used internationally Source: Curt Carnemark, World Bank. 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What Is Governance? http://go.worldbank.org ———. 2009. PERP Evaluation Report. Bangladesh: UNDP. /G2CHLXX0Q0, accessed February 2011. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 341 Module 13 ICT FOR LAND ADMINISTRATION AND MANAGEMENT ROBIN MCLAREN (Know Edge Ltd) and VICTORIA STANLEY (World Bank) IN THIS MODULE Overview. This module identifies how ICT is more effectively supporting land markets and land reform activities, explores how more open approaches to public sector Information policy and innovative business models are making investments in ICT more sustainable, recognizes how ICT is an essential component of good governance, and details how interoper- able ICT approaches to land information infrastructure extend and integrate land administration services into the wider e-government arena. Topic Note 13.1: Supporting Land Markets with ICT. Innovative and competing public and private property informa- tion services help buyers and sellers make intelligent decisions and allow policy makers to monitor market trends. These services also provide transparency and thereby discourage corruption. ƒ ICT-Based Property Value Estimate Information Services ƒ European Land Information Service Topic Note 13.2: ICT Support for Land Management, Planning, Development, and Control. Governments have established e-planning portals that allow citizens to access land-use control information, including access to zoning devel- opment plans and planning regulations. Public participation GIS is being applied to participatory community planning to help neighborhood community groups and individuals use mapping and spatial analyses in community development and public participation.  E-Planning Portal in Denmark  Virtual Landscape Theatre Topic Note 13.3: ICT Support for Land Reform. Using GIS to manage the spatial complexities of managing, analyzing, deriving, and communicating new, fair distributions of parcels has become an important tool for land reform. ICT sup- ports the entire life cycle of land reform, from identification of current owners and patterns of tenure through analysis of reallocation options to the provision of registration.  Sweden’s Large-Scale Land Consolidation Projects  Turkey Land Consolidation Project Topic Note 13.4: ICT Support for Good Governance in Land Administration. ICT significantly supports good gov- ernance in land administration by facilitating open, transparent access to land records for all. These records can now be obtained through mobile phones, either through Web- or SMS-based information services, greatly improving the outreach of land administration services, especially to groups that were long excluded from such information. The World Bank’s Land Governance Assessment Framework offers guidance on the role of ICT.  ICT and the Land Governance Assessment Framework  Improving Public Access to Land Administration Services in Indonesia (continued) I C T I N AG R I C U LT U RE 342 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT Topic Note 13.5: Public-Sector Information Policy Supporting Effective ICT-Based Information Services. Land administration agencies and policy makers must ensure the maximum exposure and reuse of land administration infor- mation in the public domain. Progress has been made in making copyright, licensing, and pricing arrangements as simple and consistent as possible. Governments have also developed open government licenses, which provide a single set of terms and conditions for anyone wishing to use or license government information.  A Policy Framework to Support the Lao People’s Democratic Republic’s National Land and Natural Resource Information System  Vietnam’s One-Stop Shop for E-Government Services Topic Note 13.6: Sustainable Funding of ICT in Land Administration. A number of countries have found that land registration systems and even the cadastre can finance themselves. Public-private partnerships are also being employed to spread the cost of development and maintenance more equitably among those who benefit from the systems.  ICT-Derived Efficiencies in the Kyrgyz Republic’s Benefit Land Office Staff  The Philippines: A Public-Private Approach to ICT Financing and Risk Sharing Topic Note 13.7: Designing Scalable and Interoperable Land Information Infrastructures. Data model standards help ensure that land information can be easily ported across generations of ICT, open interoperability standards allow same-generation systems to work well with each other, and Web services provide a standard means of interoperation among diverse software applications.  Combining Open Source Solutions with Open Geospatial Consortium Standards  The Kyrgyz Republic’s Open Source Strategy and GIS Solutions  Social Tenure Domain Model OVERVIEW ƒ Weak land markets, conflicts over ownership, land Good land administration creates accurate, accessible, grabs, and social disharmony. interoperable, timely, secure, and complete information ƒ Reductions in yields, diminished food security, nega- about land and property in an affordable and efficient way tive impacts on the environment. that promotes confidence between the public, its commer- ƒ Lack of an essential policy tool that can assist gov- cial enterprises, and government. The records commonly ernments in creating a civil society with democratic held for land administration are also the foundation for inte- norms. grated spatial information systems that link multiple users in ƒ Reduced potential for economic growth as the large the provision of government services by electronic means amount of capital typically invested in real property (e-government). They often provide the key data needed by is never formalized and integrated into the financial all local and central government organizations and, to a lesser system. extent, by the public. Figure 13.1 illustrates examples of the benefits of good land ICT has an increasingly fundamental role to play in improving administration (UNECE 2005), ranging from guarantee of the operation of land administration and in making informa- ownership and security of tenure through support for envi- tion services more readily available in support of land mar- ronmental monitoring to improved urban planning, infrastruc- kets and urban and rural economic development. ICT can ture development, and property tax collection. Agriculture provide innovative outreach channels to the poor and disad- productivity, though not explicitly featured, is also greatly vantaged to ensure that land administration and its benefits increased where good land administration practices exist. are more inclusive and can be pro-poor. Significantly, land administration information is providing fundamental refer- Where countries lack robust and tested land administration ence information, such as property addresses and transpor- systems, significant dysfunctions can occur, including the tation networks, which enables the integration of wider spa- following examples: tial information systems managed by the public and private ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 343 FIGURE 13.1. Benefits of Good Land Administration of determining, recording, and disseminating information about ownership, value, and use of land, when implementing Improved land management policies” (UNECE 1996). Typically, it is the Improved environment Improved formal governance structures within a nation that define and housing stewardship security of delivery tenure protect rights in land. Recognition is growing, however, that Improved Facilitated public land nonformal or customary institutions can and should play a safety reform role in defining and protecting land rights, and that they need Improved Improved to be included in the ongoing development of land adminis- service land resource tration. The following subsections describe the elements of delivery management Modern land administration systems, with an emphasis on the range Improved land of information they encompass. administration Land spatial disputes land-use system reduction planning Land Tenure Systems Improved Land management market The term “land tenure” refers to the way in which land of state stimulation rights are held. There are both formal systems, laid down lands Improved Improved public in statutes, and informal systems, conducted in accordance land market confidence in with custom and tradition. All formal systems are subject to monitoring Increased conveyancing Credit state-imposed restrictions, such as planning legislation that security revenue generation limits the use rights associated with any area of land and restriction of ownership by foreigners (McAuslan 2010). The Source: Adapted from UNECE 2005. most common formal systems include what in some jurisdic- tions is called “freehold” or “fee-simple” or “full title” (titulo sectors. This integration facilitates the building of spatial or dominio pleno), which represents the fewest restrictions data infrastructures (SDI) linking multiple users and allow- on the landowner’s ability to do what he or she likes with the ing the delivery of a wide range of integrated e-government land, and “leasehold,” under which these rights are held for services. (See http://inspire.jrc.ec.europa.eu/ on the Europe- a limited period. wide SDI program; http://www.anzlic.org.au/ on Australia- New Zealand SDI; and http://www.fgdc.gov/nsdi/nsdi.html Informal systems operate in traditional areas and where for U.S. SDI information.) formal systems have not been put in place or have broken down, as in squatter camps and other informal settlements. This is an unprecedented moment for ICT in support of land Traditional systems often impose restrictions on the dis- administration and management as geospatial information posal and use of land, which according to custom is usually improves and increases worldwide. The three core ICT regarded as belonging as much to deceased ancestors and technologies for land—the Internet, global navigation satel- future generations as to the present stewards of the land lite systems (GNSS), and geographic information systems and therefore is not a commodity that is open to market (GIS)—are converging and creating huge opportunities to forces. Customary law is, in general, not written but is estab- manage land and property using ICT in much more thor- lished through long usage (Delville 2010). Sometimes, as ough, inexpensive, and effective ways. It is still early in this in Uganda, customary law is recognized in formal statutes, process, and most countries are not fully prepared to take although in many countries this is still not the case. The inclu- advantage of ICT and this convergence in technology; nor are sion of informal systems of land rights is a challenge for land countries fully ready to embrace the bottom-up potential of administration agencies. the emerging technology. This module provides some guid- ance and examples of how some jurisdictions are increas- Land Registration ingly taking advantage of the new technology. A major component of any land administration system is a record of land ownership. Because of the uncertainties that Elements of Land Administration can arise over who owns the land and under what condi- Land administration has been defined by the United Nations tions, in many societies it became customary to document Economic Commission for Europe (UNECE) as “the process the transfer of land rights in the form of legal deeds and I C T I N AG R I C U LT U RE 344 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT certificates. To provide additional security, official copies of The Cadastre these records were kept in deeds registries, or what in some Records of land parcels began to be collected long before countries are called land books. Historically, the deeds sys- the invention of land titling. They were known as cadastral tem was inefficient, in that it did not prove who the owner records and were designed principally as an aid to tax col- was; it merely showed that two parties had exchanged a lection. They identified each taxable parcel of land with the deed of sale. Today, many deeds registries and land book name of the taxpayer on a cadastral map. The taxpayer is not systems have been computerized, with data on land rights necessarily the owner, and hence in much of Europe there linked to records of the land parcels, their addresses, and was and still is a dual system: The data on land ownership owners. appear in land books under the Ministry of Justice and are often managed by the courts, whereas the data on location, To improve on the deeds system, two versions of what is shape, and size of parcels are registered in the cadastre, known as a land titling or title registration system emerged usually managed under the Ministry of Finance. In the great in the nineteenth century, one in England and the other in majority of countries in Latin America, registries are under Australia (where it was known as the Torrens system). A the judiciary, whereas cadastres are under the executive. title is a proof of ownership. In both countries the basis for the register became the parcel of land, to which the name The original meaning of the term “cadastre” has been of the owner was attached. Given the address or other extended to include a variety of land records, with the land reference to any particular parcel, plot, or lot of land, one parcel, lot, or plot at the heart of the systems. For example: could look for it in the register and find the owner, and vice ƒ Fiscal cadastre, a register of properties recording versa. The certificate issued when this process is complete their value. is known as the certificate of title and is normally guaranteed ƒ Juridical cadastre, a register of parcels of land by the state. according to their ownership or use rights. Although quick and easy to do, the registration of title does ƒ Land-use cadastre, a register of land use based on assume that there has been a survey of the land so that its individual parcels. physical location, size, and shape can be described. It also ƒ Multipurpose cadastre, a register that includes many assumes that prior to compiling the register, the true owner attributes of land parcels and addresses the wide of the land and the nature and extent of the land rights range of issues identified in figure 13.1. have been established. The process for doing this is known as adjudication, which is a legal procedure that may entail Increasingly, the cadastral and land book records are com- investigations on the ground. Surveying and adjudication can puterized and linked electronically, though not necessarily be time-consuming, expensive processes. Once the informa- institutionally. In some cases—as in the Netherlands, where tion has been compiled, however, the mechanics of handling land records are integrated fully under the Dutch Kadaster—one the records can be fully computerized, and the system can organization manages both types of records. Similarly, in Albania, operate cheaply, efficiently, and effectively. the Czech Republic, El Salvador, Honduras, Indonesia, the Lao People’s Democratic Republic (PDR), Lithuania, Romania, The registration of deeds, land book systems, and registra- Serbia, the Slovak Republic, and Thailand, one agency—typically tion of title are often referred to as “land registration.” While the Department of Lands or a cadastre agency—undertakes many registration systems focus on the private ownership of base mapping for cadastral purposes, the development of land, either in outright ownership or in long-term leasehold, standards for adjudication, cadastral surveying, registration they can also include other forms of tenure such as land-use functions, and policy coordination. Many other countries, such rights and shorter-term leases. These variations are impor- as Croatia and Slovenia, have retained separate organizations. tant for countries where immovable property is technically “owned” by the government but where there are privately In Latin America, a lack of institutional integration is often held land-use rights. As a result of modernization and com- regarded as the single most significant challenge for achieving puterization, combined with rigorous quality control proce- ICT improvements to land registration. Land registration services dures, the distinction between these systems is now mini- are often a major source of revenue for the judiciary, which are mal, each mirroring the conditions on the ground, no longer often extremely autonomous and reluctant to hand over their requiring investigation of the history of a parcel, and giving in earnings to another part of government. In some cases, such as effect a guarantee of ownership. Brazil and Haiti, these services are carried out by private agents ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 345 who are similar to, but more powerful than, notary publics and telecommunications. In the context of land administration, are equally reluctant to surrender their autonomy. the terminology may be even a little broader and also covers surveying and positioning technology, including global naviga- Land Valuation and Taxation tion satellite systems (GNSS), such as the Global Positioning As noted, the cadastre has been most commonly used to System (GPS); measuring equipment, such as total stations support a system of land and property taxation. A land- and and electronic theodolites; Light Detection and Ranging property-based tax is cheap to administer, transparent, hard (LiDAR), digital aerial photography, and satellite data acquisi- to avoid, and imposes political accountability at the local level. tion systems and imagery processing; GIS; land data records In many countries, taxes on land and property provide a sig- management systems built on relational database manage- nificant source of revenue for local government, accounting, ment systems; workflow management systems; wide and in some cases, for as much as 40 percent of all subnational local area networks; wireless technology; data storage sys- tax revenue. tems, including data warehouses and Data as a Service on the Internet; and Web services delivered by Internet. The Land is both a cultural and an economic asset. In an eco- diversity of uses for ICT in land administration is remarkable. nomic sense, its value is determined from market informa- tion in countries where formal land markets exist. Land The evolution of ICT and location information infrastructures information infrastructures and GIS technology are used (also known as land information systems or services) in increasingly to support valuations and mass appraisals in underpinning land administration is illustrated in figure 13.2. which comparisons can be made between all properties in The initial phase focuses on large-scale programs for captur- a country. Aside from recording and transmitting relevant ing data by scanning records or conducting field surveys, with information, ICT tools can provide transparency, leading to a corresponding computerization of internal land administration reduction in the amount of fraud that can occur. Much of the processes. The next series of phases are all outward facing, cost of compiling land registers can be more than recouped improving the level of customer services and increasingly using enhanced tax collections. providing online services. Initially, this effort involved provid- ing extranet services to key customers; as Internet services Land Management and Development Control matured, they supported an increasing number of information Many land administration systems are regarded as a sup- services and e-transactions. Finally, as interoperability among port for land management and planning/development con- government agencies improves, radical changes and efficien- trol, which are seen as separate functions. Others see land cies will be achieved in delivering e-government services management as the end product of a process in which the based on land administration. resources of land are put to good use, and hence, as an Several key ICT applications support land administration. integral part of land administration. Often, land administra- Database management systems, usually of the relational tion officials will check and record building permits and notify variety, provide robust and secure repositories to manage the relevant authorities when regulations are breached. With the significant volumes of land information (textual and the growth of the multipurpose cadastre and extensions to geospatial) in a distributed environment and to support the use of the information recorded in land administration sys- efficient searching and querying of the information. The tems, the line of responsibility between agencies is becoming associated digital record management systems efficiently blurred. In land consolidation projects, for example, where the store and retrieve raster-scanned documents such as shape and size of parcels are redesigned, close cooperation paper deeds. Last, GIS supports the capture and editing between the recording agencies and the implementing agen- of geospatial information such as parcel boundaries and cies is essential and is helping to make land consolidation part interfaces to the land information repositories and wider of the wider rural development agenda. ICT has a crucial role national spatial data infrastructures (NSDIs) to support to play in sharing and analyzing land information among agen- spatial analysis and visualization, including a map-based cies and in communicating and testing change scenarios with interface for Web information services. the citizens involved. Location Information Infrastructure Land Administration Supporting Business “ICT” is an umbrella term that encompasses all forms Since 2005, 105 economies have undertaken 146 reforms of computing, information technology, the Internet, and making it easier to transfer property (table 13.1 provides I C T I N AG R I C U LT U RE 346 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT FIGURE 13.2. Evolution of ICT in Land Administration half as much time. Twenty-nine of 30 high-income OECD ICT in land administration Surveying and data capture economies have electronic registries, and 85 percent allow online access to information on encumbrances, either for 1970 Manual Traditional surveying all or for professionals such as notaries. Eleven—including France, the Netherlands, and New Zealand—offer electronic 1980 Internal data capture Scanning and digital registration.2 and computerization records management DBMS/DRMS Total stations 1990 Internet-based TABLE 13.1. Where Registering Property Is Easy GNSS information services and Where It Is Not 2000 Transactions with High-resolution satellite MOST BUSINESS LEAST BUSINESS customers over Internet imagery and digital FRIENDLY RANK FRIENDLY RANK aerial photos Saudi Arabia 1 Angola 174 2005 Interoperability Open data sources Georgia 2 Guinea-Bissau 175 with other government New Zealand 3 Liberia 176 agencies (e-gov/NSDI) United Arab Emirates 4 Belgium 177 2010 Web and mobile-phone- Armenia 5 Eritrea 178 based services and Belarus 6 Nigeria 179 e-transactions with customers and suppliers Lithuania 7 Timor-Leste 180 Source: Authors. Norway 8 Micronesia, Fed. Sts. 181 Note: DBMS = database management system; DRMS = digital record man- Slovak Republic 9 Marshall Islands 182 agement systems, NSDI = national spatial data infrastructure; GNSS = global national satellite systems. Azerbaijan 10 Brunei Darussalam 183 Source: Doing Business database, http://www.doingbusiness.org/data/ exploretopics/registering-property. examples of countries ranked by the ease of such transac- Note: Rankings are the average of the economy’s rankings on the proce- tions). Globally, the time to transfer property fell by 38 per- dures, times, and cost to register property. cent and the cost by 10 percent. The most popular feature of property registration reform in those six years, implemented Emerging Trends in ICT for Land Administration in 52 economies, was lowering transfer taxes and govern- Recent advances and convergence of technologies applied ment fees. This reform reduced the cost by 3.1 percent of the to land administration are creating new opportunities to gen- property value on average. Sub-Saharan Africa was the most erate greater efficiencies in delivering land administration active, with 22 economies lowering costs. The second most services, to reach out to excluded segments of society, and popular feature, implemented in 32 economies, was stream- to integrate land administration information into the wider lining procedures and linking or improving agencies’ systems e-government arena. This section summarizes some emerg- to simplify registration. These measures reduced interactions ing opportunities. between customers and agencies—saving two procedures on average—while maintaining security and controls.1 Surveying and Satellites Worldwide, 61 percent of economies have an elec- Advances in global positioning, mapping, and imaging tech- tronic database for encumbrances, including almost all nology present some of the most promising opportunities Organisation for Economic Co-operation and Development for ICT to support land administration services. By 2015, (OECD) high-income and Eastern European and Central multiconstellation GNSS will provide around 100 satellites Asian economies. But in Sub-Saharan Africa and South Asia, for global positioning. These new GNSS signals and constel- more than 80 percent retain paper-based systems. This lations will provide better accuracy and reliability, leading to lag in automation makes a difference. In economies with positioning to within centimeters in a mobile environment. computerized registries, transferring property takes about This capacity opens up the potential for GNSS technology to reach a wider range of stakeholders, including citizens. 1 “Registering Property.” Doing Business, http://www .doingbusiness.org/data/exploretopics/registering-property, accessed May 2011. 2 Ibid. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 347 The costs of surveying (and the time it takes) have prevented for free; examples include Google (http://earth.google.com/ many poor communities from being surveyed—the cost of and http://maps.google.com/) and Microsoft (http://www the survey surpassed the value of their land. Fortunately, this .bing.com/maps/). Prior to investing in ICT to update land situation is changing. National mapping agencies are intro- administration services, it is essential that legislation and ducing continuously operating reference stations, networks policies surrounding information transparency and access of geodetic-quality GNSS receivers that make data available are updated, wherever possible. This step will ensure more- for precise positioning for national survey and mapping efficient investments in ICT and the delivery of effective land programs, including cadastral surveying. This positioning administration services by removing many current restric- infrastructure increases the efficiency and consistency of tions, such as restrictions on involving foreign firms in valida- cadastral surveys and has multiple applications. A new gen- tion or requirements that all orthophotos must be produced eration of ground-based LiDAR, mounted on vehicles, is also within a country. emerging as the next “big” advance in surveying. Boundary features can be captured very quickly, to an accuracy of Integration with Wider Agendas for E-Government around half of a centimeter, just by driving around. Normally, and National Spatial Data Infrastructure Initiatives such precision is not required, although some surveyors may Most countries are developing initiatives to widen access to claim that it is necessary. However, the location of physical and use of geospatial information, but their maturity and suc- features does not necessarily coincide with the location of cess vary across the regions. In Latin America, for example, legal boundaries, which means that adjudication supported Chile, El Salvador, and Honduras are more advanced than by human interpretation is still needed and can be costly and others. A good example of this type of initiative is Australia time consuming. and New Zealand’s Spatial Information Council, which is Finally, although aerial photographs have been used in responsible for coordinating the collection and transfer of recording boundaries since the 1950s (in Kenya, for exam- land-related information between the different levels of gov- ple), digital cameras, high-resolution (less than 1 meter) ernment; and promoting the use of that information in deci- satellite imagery, digital terrain models, and new software sion making. NSDIs involve the cooperation of public and pri- techniques are increasing the availability of reasonably vate organizations to implement interoperable technologies, priced orthophotos, presenting opportunities for more cost- data standards, and business approaches within a policy effective, efficient, and participatory ways of registering the framework that facilitates the sharing and reuse of geospa- boundaries of land rights. These approaches have been used tial information (Williamson et al. 2010). This effort normally successfully in Ethiopia (Lemmen and Zevenbergen 2010), supports the discovery of geospatial information at first Rwanda, Thailand, and Namibia. In Namibia, however, the but eventually supports Web-based services based on that systematic registration of communal land rights was 32 per- information—in other words, Data as a Service. Over time, cent cheaper than surveying with handheld GPS (Kapitango the myriad versions of similar data sets will be harmonized and Meijs 2010). to generate and to reference common base themes in the data—such as transportation networks, property addresses, administrative boundaries, and land ownership—substantially Information Transparency increasing interoperability. Land administration information is Under governments’ transparency, accountability, and citizen a fundamental component of NSDIs. Participation in NSDIs participation agendas, public sector information policy is promotes the culture shift for government agencies to share changing (see Module 12 on governance for more examples interoperable land and property information and leads to of e-government interventions). Increasingly, public sector more integrated and effective e-government services for data sets once intended for internal consumption, accessed land administration, as experienced in Vietnam (Warnest and for a fee, or restricted owing to security concerns are pro- Bell 2009d). GIS technology provides the framework within vided as open data, free to be used for other purposes, NSDI to manage, integrate, and spatially analyze multiple under “data.gov” initiatives (see http://www.data.gov.uk/ sources of geospatial information. for an example). Although few countries currently release land ownership and rights information under their open data initiatives, primarily because of concerns related to revenue More Sources of Open Data, Both Formal generation and privacy, it is just a matter of time until the and Crowdsourced wider economic benefits are understood by more countries. “Crowdsourcing” is the term for citizens contributing con- The private sector already makes much mapping available tent, and its roots lie in the increasing convergence of three I C T I N AG R I C U LT U RE 348 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT phenomena: (1) the widespread use of GPS and image-based Zealand’s University of Otago. The initiative—involving the mapping technologies by professionals and expert amateurs; extension of the Open Source Cadastre and Registration (2) the emerging role of Web 2.0, which allows more user software development concept (FAO and FIG 2010) and its involvement and interaction (for example, “wikis,” which follow-on project, Solutions for Open Land Administration— allow any number of interlinked Web pages to be created will eventually offer governments a choice between licensing and edited via a Web browser; and standards-based authen- often restrictive and costly proprietary software and promot- tication processes to contribute information to the Web); and ing the development of free, nonproprietary applications and (3) the growth of social networking tools, practices, and communication software. (See the Solutions for Open Land culture. Within land administration, there is growing recogni- Administration, http://www.flossola.org.) tion that the current surveyor-based paradigm is not scalable to meet demand. Around 70 percent of land and property Open source GIS solutions are being implemented in land is unregistered, and this figure is increasing as urbanization administration in Bavaria, Bosnia and Herzegovina, Cambodia, generates ever-higher levels of informal settlements and Ghana, the Kyrgyz Republic, and Samoa, and in Solothurn, slums. One option to fill this gap is for surveyors to partner Switzerland. They underpin the initial prototyping of the with citizens and communities to provide crowdsourced land Social Tenure Domain Model (Lemmen et al. 2007). Open administration information. For example, community-sup- source land registration and cadastral solutions are likely to ported mapping recently occurred under the OpenStreetMap succeed in countries where the government embraces the (http://www.openstreetmap.org/) initiative in Nairobi’s Kibera idea of using open source software for its information sys- neighborhood, one of Africa’s largest slums. (See “Audio tems and supports its use in education and research. Such a Slideshow: On the Map,” BBC, http://www.bbc.co.uk/news/ national context makes it easier to find local ICT specialists technology-12164081.) Different levels of authentication who are familiar with free, open source products and form can be applied to crowdsourced data, from simple conflict the human resource base to maintain systems. checks to legal validation, to ensure that citizens obtain some Although the total ownership costs—including license, level of security of tenure along the continuum of rights. maintenance, and support costs—will probably be lower than costs for proprietary systems, the costs are not to be Free, Open Source Systems underestimated, especially the costs surrounding software Proprietary software has traditionally supported land admin- integration. Open source software may make maintenance istration systems, even though they have recently embraced easier (problems can be solved without external support and open standards. Over the past decade, however, free, open with advice from international user and developer communi- source systems have come to prominence. Licenses for ties) and cheaper (the absence of license fees releases funds these programs give users the freedom to run the program to maintain and further develop the system). The use of free, for any purpose, to modify the program, and to redistribute open source software will not change the fact that a proper copies of either the original or modified program without business plan is the key requirement for introducing ICT sys- having to pay royalties to previous developers. The promise tems for land administration (FAO and FIG 2010). of open source software is better quality, higher reliability, more flexibility, lower cost, and an end to proprietary vendor Risk-Sharing Relationships Between Clients and Suppliers lock-in. (See the Open Source Initiative, http://opensource .org/docs/osd, and the Open Source Geospatial Foundation, Under the traditional approach to investing in ICT to support http://www.osgeo.org.) The development of systems based land administration, the client assumed all of the risk: The cli- on open source software also encourages local capacity ent issued a tender for ICT and selected the best value propo- building. The obvious advantages of open source develop- sition; the chosen supplier would deliver and provide support ment can be seen in the emergence and success of major for the ICT solution. If the delivered solution defined by the projects like the Apache HTTP server (now running more client is delivered satisfactorily to specification but is subse- than half of all websites globally). quently found to be inappropriate or ineffective in operation, then the fault lies solely with the client. Under a number of The use of open source solutions for land administration will new partnership arrangements, however, risk is shared more increase in developing countries that cannot afford the high equitably. For example, the Government of the Philippines costs of licensing commercial solutions. A cooperative effort is engaging the private sector under public-private partner- among IT experts to foster open source software develop- ships and outsourced service provision models to build ment and accessibility is led by FAO with support from New computerized land information infrastructure, applications, ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 349 and land-related e-services. A private consortium is deliver- of the Internet and mobile phones, the implementation of ing a build/own/operate system that government will fully fully Web-based conveyancing, more local participation in the own after an agreed-on “concession” (payback) period is planning and development dialogue, and support for custom- concluded (Warnest and Bell 2009c). These private-sector- ary land rights. delivered solutions may increasingly consist of some open source components. Web- and Mobile Phone-Based Information Services Online access to information services related to land admin- Cloud Computing for Land Information Infrastructure istration is expanding with the expansion in broadband infra- Cloud computing is a set of services or resources offered structure and the use of mobile phones to deliver Internet and by different providers through the Internet. Characteristics of SMS-based services; Indonesia is one example of a country the cloud are (1) the cloud provides storage space for your that had taken this approach (Warnest and Bell 2009a). files; (2) the cloud provides software to process files (word Agencies that previously excluded many people, especially processor, photo editing, email, contact management, calen- in rural areas, are becoming more open and rapidly building dar); (3) the cloud automatically backs up files, and copies of public trust through the provision of simple, transparent, and files are stored in different geographical areas; and (4) data accessible services. can be accessed by multiple users at the discretion of the creator of the data. Within the land administration context, an Mobile phones have made a bigger difference to the lives agency could place its entire land information infrastructure, of more people, more quickly, than any previous com- including data, on the cloud and directly manage and main- munications technology, and their use is growing most tain it over the Internet through Web services. Customers significantly in developing countries. Mobile phones are would also access it over the Internet and be unaware that it connected to phone networks at ever-higher bandwidths, was on the cloud. The cloud is the next computing paradigm, which has opened real-time access to the Internet and and many land administration agencies will start to adopt information services. For those living outside of the main it over the next five years, once confidence in security and cities, mobiles may be their only means of accessing the portability is built. Internet. The main advantages of this approach are that clients can E-Conveyancing outsource the burden of maintaining servers and applica- Many land administration agencies are transforming paper- tions, scale systems up or down on demand, access their based conveyancing systems into a fully electronic proce- data and services from anywhere with an Internet con- dure, using electronic documents, applications, and signa- nection, and substitute regular, predictable operational tures. (Developments in England and Wales are described expenditures for occasional heavy expenditures on ICT (for at http://www.landreg.gov.uk/e-conveyancing/.) The aim is servers, for example). Cloud computing requires a robust, to reduce the delays and anxiety that can be experienced high-bandwidth broadband connection to the Internet and in current land and property transactions. Fully electronic has real benefits; but there are also reasons for caution. conveyancing procedures are enabled by encouraging open Risks include loss of service and data if the provider has access to property information and providing a mechanism downtime or goes out of business, regulatory problems for all payments relating to the transactions in a chain of when personal data are stored internationally, security property transfers to be paid simultaneously and electroni- concerns when users lose control of how their data are cally, with automatic registration on completion. The imple- protected, one-sided service agreements that give users mentation of this kind of system assumes that stakeholders little redress in the event of a calamity, and lock-in depen- have the capability to support all aspects of their transactions dency on proprietary cloud applications (Thompson and electronically, however. Waller 2011). Fostering Citizen and Community Participation Extended Scope of Land Administration Solutions Greater involvement of citizens in a dialogue with plan- In many countries, land administration services have been ning officials and property developers around development notoriously difficult for some segments of the population opportunities and development control should legitimize to reach and have focused exclusively on supporting formal political decision making and ensure that it is combined with land rights. ICT has changed this scenario through the rise responsibility for the financial, social, and environmental I C T I N AG R I C U LT U RE 350 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT IMAGE 13.1. Women Use GIS Instruments to Map Land and Measure Soil Qualities KEY CHALLENGES AND ENABLERS Work on improving land administration systems goes back many years. As a result of all this activity, a number of lessons have been learned, as discussed in the following subsections. A legal framework is needed to underpin ICT-based land administration services. As ICT and e-government services are introduced into land admin- istration, the legal framework underpinning land administra- tion needs to change to allow for electronic signature and new electronic services, such Source: Work funded by AgCommons, a program executed by the CGIAR. that computerized information/ records are accepted as being consequences of development. Many governments have legal and valid. Significant legal changes will also be required established e-planning portals that allow citizens to access to support the recognition and inclusion of customary tenure information related to land-use control, including zoning within the formal land markets and land tenure systems. This development plans, planning regulations, and general land- transition needs to be well planned, as passing new legisla- use information. A new generation of Web-based GIS initia- tion can be time consuming. The capacity within countries to tives in public participation provides citizens with tools to implement legal framework reforms is also necessary and may analyze proposals, suggest and evaluate alternatives, and affect the design of legal reform strategies. frame an online discussion of alternatives (Zhao and Coleman 2006) (image 13.1). It is necessary to create a land policy framework to let the land administration function more effectively. Land administration products and services must be aligned with Support for Social and Customary Tenure a country’s current needs. These requirements must be Until recently, land information infrastructure supported only defined in land policy, describing how governments intend the management of formal land rights, but a recent initia- to deal with the allocation of land and land-related benefits tive led by UN-HABITAT and the International Federation of and how land administration systems are supposed to facili- Surveyors (FIG) has developed a Social Tenure Domain Model tate the implementation of the policy. Such implementation (Lemmen et al. 2007), which was piloted in Ethiopia. The includes the rules for land tenure and land tenure security, Social Tenure Domain Model is a specialization of the Land the functioning of the land market, land-use planning, devel- Administration Domain Model, which is in its final stage of opment, land taxation, management of natural resources, reaching the status of a global International Organization for land reform, and so on. The formulation and subsequent Standardization (ISO) standard (Lemmen and Zevenbergen monitoring of land policies require access to appropriate land 2010). (See http://www.gdmc.nl/publications/2010/Spatially_ information. ICT in land administration has a key role in sup- Enabled_Society.pdf.) The inclusion of social tenure support porting and informing policy makers. in land information infrastructures will result in more secure tenure for many, and it directly supports the UN-HABITAT The poor do not necessarily benefit. Computerization “continuum of land rights” approach, which advocates reg- of land administration without outreach to otherwise- istering a range of informal rights rather than formal rights disconnected segments of the population can further disad- alone (UN-HABITAT 2008). vantage the poor. However, innovation in ICT and modeling ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 351 of customary tenure is supporting outreach to rural areas, ƒ Insist that the land administration change program has for instance in Indonesia. In many countries, although the political support and a sufficient time horizon to deal middle classes, entrepreneurs, and rich have benefited with the existing problems. from relatively easy and cheap methods to transfer land and secure title, the poor have been excluded by the costs Existing problems with land administration information and, more often, insufficient understanding of the ben- can greatly increase system modernization costs. The efits. Hardly anyone disputes the need for secure tenure costs of implementing modern land administration solutions and that citizens in both rural and urban areas should have in countries of the former Soviet Union have been greatly guaranteed rights to the land that they legitimately use. Not reduced compared to others since they were starting with everyone, however, agrees that state-backed certificates of fewer legacy issues to contend with. In other regions exist- title provide the best solution. Even where land titling is ing land administration systems are being modernized, with required to support a formal land market, titling may benefit inherent problems that significantly increase the costs and the rich but not the poor. Some form of land titling along time frames for implementation. One of the most serious the continuum of land rights may be necessary to bring issues is the poor quality of the data on immovable prop- about all the potential benefits that land administration can erty, with textual and geospatial data out of date. This can be provide, but land titling alone will not suffice to do so. Other further compounded by the number of land disputes in the institutional arrangements and social and economic support courts, and the number of potential disputes that are lying need to be in place. dormant, which might be triggered by the process of adju- dication. Simply eliminating the existing land administration Modernizing land administration can be challenging. system is usually not an option. The modernization program Significant legacy issues often exist, and professional and must be built around data upgrading and quality maintenance political biases are normally encountered. These can have mechanisms, along with streamlined processes for resolving serious detrimental effects on the modernization program disputes, preferably through dedicated land dispute resolu- unless the associated risks are understood and mitigated tion structures. Automation by itself brings less transforma- effectively. Here are some general principles for designing tive change in these cases, but can be the start of a long new land administration modernization programs: process of evolutionary improvement. ƒ If there is a no possibility to reduce multiple agencies involved, focus on improving coordination among Governments should accept and plan for high costs and them with formal memorandums of understanding long time frames. The implementation of a fully operational agreed on. land administration system involves high costs and can take ƒ Begin the land administration change program with many years before the majority of properties are registered. a business case and associated business cases to For example, the early Thailand project involved loans of sustain it. US$183 million over 18 years, covering capacity building, surveying and mapping, and the high costs of early ICT ƒ Adopt an approach that uses the same land admin- solutions. More recent initiatives have been less expensive, istration regime for urban and rural land, even if the especially when starting from scratch—where the cost institutions must be different. However, there may impacts of poor quality of the data on immovable property be variations in the precision of cadastral surveys and and large numbers of active and dormant land disputes can development control standards, for example, between be mostly avoided. In the Kyrgyz Republic, more than 2.5 city centers and remote rural areas. million properties (more than 90 percent of private proper- ƒ Build in an effective and dedicated dispute resolution ties in the country) were entered into a new registry system system that leaves the courts as a last resort. under a seven-year project costing less than US$12 million. ƒ Try to ensure that the land administration system A second four-year project costing about US$7.5 million is benefits all and that barriers to entry are low. currently making further improvements in the quality of the ƒ If the existing data are in poor condition and decades spatial data and overall ICT capacity, but the registry system out of date, there needs to be a plan and budget for is already highly functional. The process of surveying and data improvement and ongoing maintenance. registering each individual land parcel can be expensive and ƒ Bring land professionals (surveyors, lawyers) into the time consuming and, in some countries, open to corruption. process as partners and try to mitigate their inclination There is a need to understand the local context, to assess to lobby against introducing pragmatic change. existing judicial capacity, to prioritize implementation, adopt I C T I N AG R I C U LT U RE 352 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT faster and more innovative ICT techniques, reduce red tape Planners should avoid the fallacy that ICT is a silver and multiple procedures, and engage communities in the bullet. ICT is an enabling infrastructure requiring appropriate, process. Changes in ownership due to transfers or inheri- significant, full-life investment. Technology is changing rap- tance must be undertaken at the same time as new titles idly, and what was appropriate five years ago may not satisfy are being brought into the registers, so that as the project today’s demands. Land records may need to stand the test progresses, more staff can be taken off first registration and of time over centuries, so sustainable methods for archiving put onto record maintenance. Certificate of title holders do material are essential. Simply investing in new technology not necessarily report changes, for instance, in areas where without understanding citizen, state, and commercial cus- customary tenure still operates alongside the formal title tomer requirements; training staff; adequately testing and system. Failure to carry out record maintenance at the same piloting solutions; building capacity; and simplifying the busi- time as new titles are being added will cause records to be ness processes may not achieve the desired effect and can outdated before the system is complete. Full-life costs of a lower staff morale and customer satisfaction. ICT may also land administration system must include its maintenance. fail to achieve some of its objectives if delivered in isolation. Although significant evidence has been gathered around Business models should support continual investment the world that property titling and registration will enhance in ICT. Business models for land administration systems access to credit, it does not always do so (box 13.1). must directly generate revenue, obtain guaranteed state funding, or share the financial investment and risk with the private sector to ensure that ICT is sustainably maintained BOX 13.1. Outcomes of Automating Land Registration and replaced. However, choosing the appropriate business in Andhra Pradesh model is not easy, as it may change over time as the land Did the gradual computerization of land registry systems market matures. Guarantees of funding over the long term across Andhra Pradesh’s 387 subregistry offices influ- are unlikely from governments. The generation of revenue ence access to credit? Quarterly data on credit disbursed depends on information policies for the public sector, which by all commercial banks over 11 years (1997–2007) were often restrict access to land information, thus reducing aggregated at the subregistry office level and examined potential benefits and income streams as well as transpar- in light of the date when the land registry system shifted ency. The recent financial crisis has precipitated crises in from manual to digital records. Computerization had no property markets around the world, significantly reducing credit effect in rural areas but led to increased credit the number of land administration transactions. The result supply in urban areas. A marked increase of registered has been reduced revenue streams for many land admin- urban mortgages following computerization supports istration agencies and their ICT partners, leaving them in a the robustness of the result. At the same time, the esti- financial predicament. Projects need to start with a strategy mated effects of a reduction of the stamp duty (a tax lev- and a corresponding, robust business case, updating it as ied on legal instruments and transactions such as those needed. involved in sales of land or mortgages) are much larger, Effective and mature land administration systems need suggesting that, without further changes in the property computerization. The driving rationale behind the increas- rights system, the impacts of computerization will remain ing use of ICT for land administration is that the volume, marginal. complexity, and expected processing times of transac- Source: Deininger and Goyal 2010. tions can no longer be handled in an efficient and trans- parent manner through manual processes. The increasing demand by the general public and the private sector for Home-grown ICT solutions should be used where open access to land administration information cannot be possible. Within World Bank–financed projects in Europe met without ICT. For example, ICT can support greater and Central Asia, land information infrastructures have been access to and sharing of information, improve data quality developed either through large contracts bid out to the pri- and completeness, increase security and transparency of vate sector or through building systems in house. The inter- operations and information (potentially reducing the risk nal approach has generally been more successful, because of corrupt dealings in land), increase revenue generation systems can be built in a modular form as agencies build their around new services, and provide a basis for monitoring own capacity to use and manage the different modules and and evaluation. technology. Another advantage of in-house development is ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 353 that agencies can retain their own specialists (or use local FIGURE 13.3. Sustainable Development Needs Both companies) to amend and maintain the software rather than Urban and Rural Inputs being locked into their supplier’s source. Large, internationally bid contracts have proven very difficult to manage, very time Sustainable urban/rural living conditions consuming to tender, and very slow to produce a functioning system. Moldova was one of the first countries in the region to establish a system developed by the cadastre agency’s own staff with technical support, packaged software, and equipment financed by a World Bank loan. As it upgraded Urban/rural the system, the agency used part of the credit to hire interna- Urban Rural interrelationship tional consultants for advice on the design and latest technol- ogy, yet the agency remained in the leading role (World Bank 2009a). Successful in-house development processes for ICT Good governance Good land policy solutions have also been implemented in El Salvador and Honduras. Where in-house capacity is not available, the work Land & natural Institutions & Capacity building resource can be outsourced, but it is necessary to assess the capacity governance & development infrastructures of land agencies to manage large contracts and the capacity Source: FIG 2004. of the private sector to handle the work. Another option is to complete the work incrementally as capacity is built. Public Access to Land Administration Services in Indonesia,” Professional and institutional compartmentalization in Topic Note 13.4) that can provide land administration ser- must be eliminated. Professional and institutional com- vices to remote rural communities (Warnest and Bell 2009a). partmentalization can lead to a fragmented view of land. Cooperation, especially between ministries responsible for Significant investment is needed in capacity building. To land registration and those for the cadastre, often has been realize the full benefits of ICT investments in land administra- lacking. The lack of institutional cooperation reflects a lack of tion, countries must implement an effective program to build cooperation between professions, notably lawyers and the technical and management capacity across the public and surveyors, with each group taking a different view of the land private sectors and civil society. The public sector has signifi- and hence of priorities. Failure to take a holistic view and fun- cant issues with building the capacity of, and retaining, ICT damentally change business processes leads to inefficien- professionals, especially in developing countries. Younger cies, higher costs, and time delays, and ultimately heightens professionals, having received ICT training in government the cost and complexity of offering services to citizens. It service, often move to the private sector, where the short- is important to keep institutional arrangements as simple as term rewards tend to be higher. The rollout of ICT in land possible (World Bank 2009a), because simplicity will enable administration can strongly benefit from partnership with more integrated and effective ICT and e-government solu- the local private sector and corresponding capacity building tions. Single cadastre and registration agencies work best, for professionals. Finally, government needs to coordinate but they are not always politically feasible, and failure to awareness and capacity-building programs for the public, as agree on a single agency should not prevent projects from an increasing number of government services are electronic. going forward. Human capacity to carry out and sustain reforms in land administration, including the management of large ICT con- Land administration must operate efficiently in various tracts, is a long-term activity and should be built into project settings. From a land administration perspective, there design from the start. should be a unified land system for both urban and rural areas (see figure 13.3). There should be one land law and one set Early investment is the key to positioning infrastructures of procedures to accommodate the needs of all regions in a to realize benefits in a wide range of land applications. country, including customary tenure in rural areas. Many rural Historically, national triangulations (measurements) have communities, which make up the agrarian sector of a coun- formed the basis for consistency in land surveying. Today, try, are geographically excluded from land offices, reducing sophisticated positioning infrastructures not only constitute the levels of registrations in rural areas. Innovative ICT solutions basis for land surveying and place-based land information in all are supporting mobile land offices (see IPS “Improving its forms, but also support a wide range of land applications. I C T I N AG R I C U LT U RE 354 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT The performance of land administration has proven to be perspective has led, for example, to multiple purchases of enhanced strongly by applying appropriate ICT tools, includ- the same remote-sensing imagery by different agencies and ing satellite imagery, aerial photographs, and GNSS. Early the generation of multiple base maps with varying specifi- investments in this positioning infrastructure are crucial and cations. Apart from the simple collaboration approach, the significantly reduce the cost of data capture. adoption of interoperability standards and Web services is promoting the implementation of shared services, leading to ICT investments should be shared through interagency the creation of national spatial data infrastructures (NSDIs). collaboration. Too often, investments in ICT are isolated This approach allows different agencies to access and use within projects and do not consider the possibility of the the same geospatial information, reducing the initial and con- wider sharing and reuse of the resources. This narrow tinuing maintenance costs. Topic Note 13.1: SUPPORTING LAND MARKETS WITH ICT TRENDS AND ISSUES variety of forms of taxation on what is essentially wealth. The Land markets allow capital to be released, and hence influ- market can also encourage changes in land use and stimulate ence productivity and efficiency in agriculture and the level moves toward the optimal use of resources. In theory, market of investment in industry. An efficient land market underpins forces should result in the “highest and best use” of the land, the capacity of banks and other financial organizations to lend although in practice other factors may prevent this outcome. money and for landowners to invest. The form and success ICT plays a key role in providing information to stimulate, of any land market depend on a number of external factors support, and monitor land markets. ICT can be used for the (figure 13.4). The relationships between these elements and following purposes: the market operate in two directions: They influence the day- ƒ Provide a single point of access to all the relevant land to-day activities within the market, and they in turn are influ- and property information. enced by it. A successful market stimulates economic growth for individual landowners by releasing capital for investment ƒ Record and analyze all land held by the state. In many in other fields. It can also benefit government by facilitating a countries, the state is the largest landowner; but all too often, it fails to manage its assets in an efficient FIGURE 13.4. Influences on the Land Market and effective manner. ƒ Monitor the performance of property prices and make relevant information available to public and private Politics land and property companies, and to policy makers. (For examples on residential property, see http://www People & Sustainable .zillow.com/ for the United States and http://www culture development .zoopla.co.uk/ for the United Kingdom.) ƒ Map the location of formal property sales. ƒ Compare property values as part of a mass appraisal for land and property taxation (UNECE 2002), and Land market The economy monitor changes in land use that may affect the tax- Tenure & legal & financial able value of property. framework services ƒ Provide transparency, and thereby discourage corrup- tion in the land market. ƒ Monitor the gender and other demographics of those Land use & taking part in land transactions to discourage prejudice Fiscal environment policies against women and minority groups. controls Following the initial phase of computerization in land Source: Dale, Mahoney, and McLaren 2010. administration agencies, when land records are digitized ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 355 BOX 13.2. Augmented Reality in Real Estate Marketing Smartphones deliver innovative, location-based services Example of Augmented Reality in Real Estate Marketing for mobile real estate marketing. Using a smartphone, a person can walk up to the front of a house for sale, aim the phone’s camera at it, and within seconds view and capture all the information about the real estate listing. The viewer can see pictures of the property, watch a video walkthrough of the property, browse information about the property (such as the selling price), email the information, and contact the listing agent. This kind of mobile marketing is achieved using an augmented real- ity browser such as Layar (http://www.layar.eu/). The mobile phone opens a window into the virtual real world where you can directly point at features and obtain the associated information. Source: McLaren 2010; source for figure, http://buildar.com/. and land and property transactions are supported, land INNOVATIVE PRACTICE SUMMARY administration agencies normally start to provide informa- ICT-Based Property Value Estimate Information tion services on land market activities and trends, such as Services statistical trends in house prices by geographical region. In mature land markets, a number of innovative land and In many countries this land and property information is property information services allow users to identify proper- then made available to the private sector for other uses, ties for sale or rent that meet their specific requirements, either under a chargeable license or free. The release of obtain an estimated market value, and select and contact a this information usually requires amendments to public range of professional and financial services to support their sector information policy and associated legislation. Once transaction. Good examples can be found at http://www the information is in the public domain, the private sector .zillow.com/ in the United States and http://www.zoopla innovates and starts to deliver new information services .co.uk/ (figure 13.5) in the United Kingdom. to the land market. These services include locating a prop- erty to buy or rent in a specific area, identifying the price FIGURE 13.5. A Property Information Service in the paid for properties sold in an area of interest, estimating United Kingdom the market value of a property, and receiving an email or SMS alert if a property of a certain type, cost band, and location comes on the market. Some information services encourage owners of properties to enter more detailed information about their properties so that more accurate valuations can be estimated. GIS technology is also used to determine the amenities in an area of interest to support property-buying decisions. These applications are increas- ingly available on mobile phones, and some are starting to use augmented reality, in which a user can point the device at properties and obtain corresponding information (see box 13.2). These innovative and competing public and private information services reflect an open, transparent, and competitive land market that needs to be supported by effective ICT within land administration. Source: Zoopla.co.uk. I C T I N AG R I C U LT U RE 356 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT At the heart of these information services are computer-based INNOVATIVE PRACTICE SUMMARY value estimate systems, often known as automated valuation European Land Information Service models. The Zoopla valuation algorithm, for example, continu- The European Land Information Service (EULIS) (http://eulis ously analyzes property data from multiple sources—includ- .eu) is an online portal for professionals to access land and ing government, real estate agents, surveyors, and users—on property information from land registries across Europe. It is all 27 million homes in the United Kingdom. The model looks also a hub of information on land registration conditions in at the relationships between transaction prices and property each country. EULIS’s long-term mission is to underpin a sin- characteristics (type, style, number of bedrooms, and other gle European property market through cross-border lending, variables) and uses these patterns and trends to estimate involving 23 organizations representing the land registries present values. The algorithm uses previous sale prices for of 20 member states. Currently, the land registries of five the specific property and recent transactions nearby, changes countries are connected to EULIS: Austria, Ireland, Lithuania, in market values for similar local properties, various character- the Netherlands, and Sweden. istics of the property in question and those around it, current asking prices for specific properties and others in the local The main applications of this cross-border land and property area, the size of the property in question relative to those information service are as follows: around it, and the current values of comparable properties. ƒ Second home searches. Europe is becoming smaller The model works on an extremely local level and adapts to the because it is easier to travel, live, and work across specific information available for each property, thereby creat- borders. EULIS makes it possible for solicitors and real ing a custom approach to valuing each property. In effect, tens estate agents to check out property and land in other of thousands of models work together, each optimized for the countries for their clients, paving the way for second accuracy of the small set of properties they exist to serve. New home purchases. data are received continuously from a variety of sources, and ƒ Business acquisition. EULIS investigates premises the systems are built to absorb this information quickly into and land on behalf of international businesses seeking the valuation process, allowing estimates to take advantage of to acquire sites for their operations. the most recent data. Each day, the valuation algorithm knows ƒ Credit checks. A risk assessment is required when more than it did the day before. Estimates are found to be within citizens request credit or make other financial commit- 10 percent of the actual transaction price in the majority of ments. Lending institutions can use EULIS to confirm cases. The estimated valuations allow users to identify proper- ownership of any assets such as land and property ties within their price range and support their property bid price. proposed as collateral for such commitments. Topic Note 13.2: ICT SUPPORT FOR LAND MANAGEMENT, PLANNING, DEVELOPMENT, AND CONTROL TRENDS AND ISSUES A new generation of GIS-based tools is now available, sup- In countries fortunate to have mature ICT infrastructures, ported by maturing spatial data infrastructures, to enhance governments have established e-planning portals that allow the interaction experience and effectiveness with the citizen. citizens to access land-use control information, including Public participation GIS (PPGIS) is being applied to participa- tory community planning (Zhao and Coleman 2006) to help ƒ access to zoning development plans, planning regula- neighborhood community groups and individuals use map- tions, and general land-use information; ping and spatial analyses in community development and ƒ submission of development applications; public participation. A new generation of Web-based PPGIS ƒ access to proposed developments, associated draw- initiatives is providing users with tools to analyze existing ings, and their current status; proposals, suggest and evaluate alternatives, and frame an ƒ submission of comments associated with proposed online discussion of alternatives within a geospatial context. developments to be used as material evidence in the decision-making process; and The ease and increasing use of mashups (websites or applica- ƒ access to the results of development control decisions. tions that seamlessly combine content, typically sourced from ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 357 third parties via a public interface, into an integrated experi- areas and coastal protection zones Once the citizen has iden- ence) and wider access to open geospatial data allows com- tified the development plan of interest, the system provides munities, citizens, or pressure groups to create an accessible direct access to an electronic copy of the lokalplan and can simulation of the proposed development. This environment display and generate a list of all properties (cadastral parcel can then form the basis for dialogue among stakeholders. numbers) affected by the development plan. The e-planning portal also allows citizens to provide direct feedback on pro- Mobile phones are also opening channels for citizen participa- posed development plans during the statutory eight-week tion in the development control process and have significant consultation period. Citizens preparing to build or extend potential to increase constituents’ participation. For example, their house can use the system to determine what plan- citizens can register for mobile phone alerts on specific types ning restrictions apply in their area. This open, transparent and/or locations of new development proposals and can text e-planning portal also serves as an authoritative legal objections to development proposals to the planning authorities register. It is an excellent example of land registration and with associated authentication (Enemark and McLaren 2008). cadastral information services being integrated into wider e-government services. INNOVATIVE PRACTICE SUMMARY E-Planning Portal in Denmark INNOVATIVE PRACTICE SUMMARY One of the most advanced and participatory e-planning por- Virtual Landscape Theatre tals is in Denmark (see http://plansystemdk.dk). The solution For many citizens, the use of PPGIS environments is either provides public access to all statutory land-use plans, such as too advanced for their use or they are on the wrong side of municipal plans and development plans (called a lokalplan), the digital divide. However, there are emerging virtual and both adopted or proposed, across Denmark. The map-based augmented reality techniques that allow citizens to access interface provides a range of navigation tools, including sophisticated GIS and visualization technology through medi- address, cadastral parcel number, municipality, and area poly- ators. One such example is the Virtual Landscape Theatre, gons (see figure 13.6, showing the region of Aalborg). The developed by the Macaulay Institute in Scotland, which uses areas of the development plans can be displayed in combi- cutting-edge virtual reality technology to recreate landscapes nation with cadastral maps, topographic maps, orthophotos, and provide a forum for people to visualize and assess impacts and other kinds of land-use constraints, such as conservation of proposed change (Macaulay Institute 2011). By allowing FIGURE 13.6. Example of E-Planning Portal Source: http://plansystemdk.dk. I C T I N AG R I C U LT U RE 358 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT groups of people the opportunity to view, debate, and offer which people can be immersed in computer models of their informed opinions, the planning process benefits from a environment to explore landscapes of the past, present, and greater understanding of what is really valued in the land- future. Small groups have the opportunity to experience land- scape and what is not. The Virtual Landscape Theatre is scapes by moving around the virtual world and can provide composed of a mobile, curved-screen projection facility in feedback by means of a voting handset. Topic Note 13.3: ICT SUPPORT FOR LAND REFORM TRENDS AND ISSUES ƒ Map informal settlements, using aerial photography or The term “land reform” has different meanings in differ- satellite imagery, to plan any upgrades. ent regions or countries. At its simplest level, land reform ƒ Support the creation of forest inventories and associ- refers to the various processes involved in altering the ated valuations by using laser scanning. pattern of land tenure and land use of a specified area. It Land reform is costly and time consuming. There must be a is most often applied to rural areas to allocate more land strong business case or political driver for its implementation. for settlement by landless people, to provide stability in For example, large cooperative farms in Ukraine were broken up the pattern of land settlement through land tenure reform, and distributed to citizens as part of political and market reforms, or to consolidate land holdings and increase agricultural but it is still forbidden to buy and sell agricultural land, and there efficiency by redistributing an existing pattern of land par- is no formal land market. Prior to land reform in Moldova, parcels cels. For example, in Latin America it typically means land were so fragmented that agriculture was very inefficient, and no redistribution from large haciendas or latifundia to smaller active land market existed; now the land market is very active. farms, while in South Africa land reform also involves res- titution of lands and land tenure reform. The procedures Land consolidation is becoming an integral part of rural devel- adopted for land reform can be applied to urban areas and opment. ICT enables a more holistic approach that takes into used to address some of the problems of informal urban account broader environmental requirements, leisure and other settlement. social needs, rural business development, and other factors. Now it is also common to include land consolidation in urban ICT supports the entire life cycle of land reform, from identifi- settings to promote business districts and urban development. cation of current owners and patterns of land tenure through For example, Germany currently does more urban land consoli- the analysis of reallocation options to the provision of land dation than rural consolidation. The FAO advocates a voluntary registration. ICT can be used to: approach to land consolidation based on buying, selling, and ƒ Identify owners, extent of ownership, land use, and land exchanging parcels in a coordinated way (for a recent successful values in areas where land consolidation is planned. example, see Republic of Moldova 2009). Other approaches are ƒ Design new parcels using GIS, in which all landown- more formal and involve significant, compulsory intervention, as ers voluntarily trade land parcels or are allocated an in the examples from Sweden and Turkey that follow. area that is as equivalent as possible to the size and quality of their existing holdings. The GIS is also used to support citizens’ participation in the design and INNOVATIVE PRACTICE SUMMARY evaluation of reallocation options, speeding up the Sweden’s Large-Scale Land Consolidation Projects consultation and decision process. Sweden consolidates land through formal, large-scale proce- ƒ Calculate levels of compensation when necessary as dures that rely on compulsory rules in the Property Formation a result of adjustments to the status quo or when land Act. An intervention can cover 2,000–54,000 hectares, can has to be expropriated for state purposes. involve up to 2,000 participating landowners,3 and normally ƒ Help in planning new infrastructure, such as roads, takes five years to implement. Appeals of the principal deci- underground services such as drainage, and other sions are rare; since 1990, only 33 landowners have appealed subsurface and above-surface utilities. to the court and only seven appeals have been upheld. This ƒ Assist in the preparation of plans for land allocation to positive result comes from strong mediation and negotiation landless or otherwise-dispossessed people. with landowners and effective use of ICT. ƒ Maintain records of state land that is being held in 3 The information in this section was provided through personal anticipation of future needs. communication with Mats Backman, Telia. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 359 In 1995, Sweden introduced a customized GIS to help imple- of the parcels have access to irrigation and transportation ment its land consolidation reforms. The system, GISOM, networks. is based on ESRI products and other database and analysis tools; it manages layers of information from the land registry, Land consolidation was initiated in the 1980s, when legisla- cadastre, cadastral index map, and photogrammetric and tion was passed to support the Ministry of Agriculture and field data. Additional GIS applications have been developed Rural Affairs in its responsibility to prepare and implement to match the requirements of the authorities and landown- land consolidation projects. Further land consolidation legis- ers, including valuation methodology, reallotment design, lation was passed in 2005 to empower other government and decision support. The valuation methodology in forest ministries to implement land consolidation projects involving, land consolidation projects ranges from the complete enu- for example, irrigation and transportation infrastructure. The meration of trees to the use of aerial photointerpretation private sector is involved in implementing the projects. combined with laser scanning, which is now very successful. Turkey faces the tremendous challenge of consolidating The use of GIS allows landowners to view proposed reallot- approximately 8 million hectares in eight years. The govern- ment designs and show them the consequences of changes ment plans to meet this challenge through a major national in geographical location and size of the proposed reallotment. It land consolidation program, primarily intended to resolve agri- also allows changes to the reallotments to be made in real time. cultural issues. Under a project with the Netherlands, Turkey Normally, landowners wish to decrease the monetary compen- has developed a land consolidation approach, supported by sation in land consolidation as much as possible. The use of GIS ICT, which can be scaled to meet the ambitious targets of the has made it possible to match their desires to a great extent. national land consolidation program. A key component of the approach is a GIS-based solution, called TRANSFER, to support reallotment design within project areas. TRANSFER uses a INNOVATIVE PRACTICE SUMMARY variety of data sets to support reallotment, including soil maps, Turkey Land Consolidation Project productivity maps, digital terrain models, proximity to villages and roads, ownership boundaries, and owners’ preferences for Turkey’s rural population is growing rapidly. Because most new allocations. Figure 13.7 shows a project area before and rural dwellers cannot pursue livelihoods in sectors other after land consolidation. The result features a new parcel pat- than agriculture,4 agricultural land is often split into succes- tern, minimizing parcel transfer in accordance with the wishes sively smaller farms. Consequently, most farmers operate of villagers (the average parcel size is bigger than before); new on highly dispersed parcels whose small size is not suitable roads (placed to minimize the impact on agriculture and provide for irrigation and mechanization. On average, only 50 percent access to all new parcels); a new irrigation scheme accessible to all new parcels; and a reduction in the number of parcels per 4 This section draws on information from Jansen et al. (2010). farmer, which reduces transportation between parcels. FIGURE 13.7. Parcels Before and After Land Consolidation with New Irrigation Network Before After Source: Jansen et al. 2010. I C T I N AG R I C U LT U RE 360 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT Topic Note 13.4: ICT SUPPORT FOR GOOD GOVERNANCE IN LAND ADMINISTRATION TRENDS AND ISSUES BOX 13.3. Reducing Corruption in Land Offices The need for good land governance is reinforced by three The mobile phone can play an important role in reducing broad global trends. First, increased and more volatile com- corruption associated with financial transactions in the modity prices, population growth, and the resulting increased land sector. For example, in Pakistan’s Jhang District, all demand for rural and urban land make it all the more impor- clerks were asked to submit a list of their daily transac- tant to define and protect rights over land resources as a tions, giving the amount paid and the mobile numbers of precondition for the broad sharing of benefits from economic the buyers and sellers. Supervisors then called buyers development. Second, climate change is likely to have and sellers at random to find out whether they had been particularly damaging effects on land in areas traditionally asked to pay any extra bribes or commissions. After considered hazardous or marginal. Adequate land-use plan- charges were brought against one clerk who had asked ning, together with geospatial tools that use land administra- for a bribe, service improved markedly. This two-way tion information to manage disasters, can help mitigate or interaction with clients opens opportunities for essential adapt to these problems. Finally, global programs to provide feedback and quality checks. resources for environmental services (for example, reduced Source: “A Special Report on Telecoms in Emerging Markets,” The deforestation) are likely to affect behaviors at the local level Economist, 2009. and thus accomplish their objectives only if local land rights are recognized and resources are transferred effectively to right holders (Deininger et al. 2010). Aside from investing in broadband and mobile phone infra- Good governance requires a legal framework and a will to structures to extend coverage, land administration agencies enforce it. Legislation that, for example, outlaws gender dis- need to ensure that the national public sector information crimination is often flouted in practice when it comes to land policy supports open and transparent land records. They ownership and inheritance, which is why organizations such must also launch awareness programs to raise interest in and as the Huairou Commission were established (see http:// knowledge of the new information services. These informa- huairou.org/issue and http://huairou.org/land-housing). Good tion service initiatives are good opportunities for leveraging governance is essential, because land administration is often investment and knowledge from the private sector through perceived as one of the most corrupt sectors of government. public-private partnerships. Although individual amounts may be small, petty corruption on a wide scale can add up to large sums. In India the total amount of bribes paid annually by users of land administra- tion services is estimated at US$700 million (Transparency INNOVATIVE PRACTICE SUMMARY ICT and the Land Governance Assessment International India 2005), equivalent to three-quarters of Framework India’s total public spending on science, technology, and the environment. For an example of how ICT can stem corrup- Guidelines on how to achieve good governance have tion in land transactions, see box 13.3. been prepared by the World Bank. The Land Governance Assessment Framework (World Bank 2010) addresses five ICT significantly supports good governance in land admin- thematic areas: legal and institutional framework; land use istration by facilitating open, transparent access to land planning, management and taxation; management of public records for all. Until recently, land records were available only land; public provision of land information; and dispute resolu- on paper in land offices or to a few large customers over the tion and conflict management. Given that ICT in land admin- extranet. These records can now be obtained through mobile istration generates statistics to determine many of the Land phones, either through Web- or SMS-based information Governance Indicators, land administration computerization services. As the example from Indonesia indicates, ICT can projects need to be guided by the role of ICT in the Land greatly improve the outreach of land administration services, Governance Assessment Framework. The following are especially for groups that were long excluded from such some of the areas where ICT can support Land Governance information, and the cost of providing services has fallen. Indicators (LGIs) within this framework. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 361 LGI-2(iv): A high percentage of land registered to physical LGI-12(v): All the information in the public land inventory is persons is registered in the name of women, either individu- accessible to the public. ally or jointly. ICT can provide efficient Internet access to public registers ICT can increase the involvement of the so-called Third Sector that are transparent and searchable following a number of of nongovernmental and local organizations, including those criteria, including map-based searches. representing women. Transparency and analysis of land administration information will highlight any gender imbal- SMS-based property enquiry services via mobile phone ances in ownership across a country. Online communities remove the need for intermediaries to access land adminis- (for example, http://www.womenandhumansettlements.org/ tration services and provide simple, transparent, and acces- and http://www.huairou.org/) allow grassroots women’s orga- sible services that can rapidly build public trust. nizations to share experiences and advance their capacity to LGI-16(i): Most records for privately held land registered in collectively influence local to global political spaces on behalf the registry are readily identifiable in maps in the registry or of their communities. cadastre. LGI-5(iv): Information related to rights vis-à-vis land is avail- ICT can provide efficient access, including Internet informa- able to other institutions that need this information at reason- tion services, to public registers that are transparent and able cost and is readily accessible, largely due to the fact that searchable following a number of criteria, including map- land information is maintained in a uniform way. based searches. ICT can overcome the historic separation between the land LGI-18(iii): There is significant investment in capital in the registry and the cadastre by providing electronic linkages system to record rights in land so that the system is sustain- between both organizations. ICT can also be a catalyst for able but still accessible by the poor. better interoperability and integration with other departments of government, although there must be the political will to ICT can provide innovative channels to deliver services to make this happen. ICT can also reinforce links between the many who had previously been excluded, especially in rural public and private sectors. In recent years, many land admin- areas. Mobile phones can be used to deliver Internet- and istration functions and activities—from surveying through the SMS-based services, and remote access to the Internet can provision of ICT to the delivery of various land information support mobile land offices. services—have been shared with the private sector, often through formal public-private partnerships. INNOVATIVE PRACTICE SUMMARY LGI-7(i): In urban areas, public input is sought in preparing Improving Public Access to Land Administration and amending changes in land use plans, and the public Services in Indonesia responses are explicitly referenced in the report prepared With World Bank support, Indonesia’s National Land Agency, by the public body responsible for preparing the new public Badan Pertanahan Nasional (BPN), has set out an exciting plans. This report is publicly accessible. and ambitious plan for land reform, with ICT at the center. ICT, and especially GIS, can provide effective forums for pub- Improving public access to land services is a priority of the lic consultation, allow more scenarios to be presented, and BPN Karanganyar office in Central Java, where involvement extend the normal outreach of the consultations. in the land office computerization project triggered innova- tive uses of ICT to build public trust in land administration. LGI-10(i): The assessment of land / property values for tax The office has expanded its services to include an SMS- purposes is based on market prices, with minimal differences based property inquiry service, known as Interactive Land between recorded values and market prices across different Information. This service removes the need for intermediar- uses and types of users; and valuation rolls are regularly updated. ies to access BPN’s services. It is simple, transparent, and its accessible services rapidly build public trust. ICT can compare property values as part of a mass appraisal for land and property taxation, monitor changes in land uses The BPN Karanganyar office has also developed the People’s that may affect the taxable value of property, and compare Land Titling Service (LARASITA), a mobile land office (see prices paid for similar properties. image 13.2) that travels to villages to provide to BPN’s property I C T I N AG R I C U LT U RE 362 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT services to previously disconnected IMAGE 13.2. LARASITA: A Mobile Land Office in Indonesia communities. The mobile office (a modified van) is equipped with lap- tops connected to the main database in BPN’s Karanganyar office through wireless connectivity (WLAN), and a 2.4 GHz wireless antenna installed on top of the van and on top of a 60-meter tower behind the BPN office. This infrastructure enables the LARASITA van to operate in real time within a 20-kilometer radius of the tower. The head of the BPN Karanganyar office observed that “as long as we can bring BPN presence and services closer to the people, and provide the right information, then LARASITA has achieved its mission.” BPN rolled out LARASITA to an additional five prov- inces in 2009, increasing its outreach significantly. Source: Warnest and Bell 2009a. Topic Note 13.5: PUBLIC SECTOR INFORMATION POLICY SUPPORTING EFFECTIVE ICT-BASED INFORMATION SERVICES TRENDS AND ISSUES index.html.) This change involved close dialogue with Since open, transparent access to land administration infor- partners in the private sector and reduced the over- mation is a prerequisite for developing effective land mar- heads of public-private partnerships. kets, reducing corruption, and building a trusting relationship ƒ A number of governments recently introduced with civil society, it is essential that land administration agen- transparency agendas that emphasize the need for cies work closely with policy makers to ensure the maximum governments to be accountable to taxpayers and have exposure and reuse of land administration information in the driven programs to publish key government data sets public domain. Recent progress in making copyright, licens- through the establishment of a single access point for ing, and pricing arrangements as simple and consistent as government data. In parallel with this development, possible includes the following developments: governments have also developed open government ƒ Many countries release land administration infor- licenses, which provide a single set of terms and mation, at a charge, to the private sector to allow conditions for anyone wishing to use or license freely innovative information services to be created. Such available government information. This form of licens- services require robust copyright, licensing, and pric- ing allows developers and entrepreneurs wishing to ing arrangements; but if these arrangements are too use government data to create new applications with- complex and too variable across customers, they will out any formal application for permission. It is normally deter uptake, innovation, and potential revenues. The interoperable with other internationally recognized National Mapping Agency of Great Britain recently licensing models, such as Creative Commons overhauled and greatly simplified its licensing agree- (box 13.4). Although these government open data ments with partners. (See “Licenses and Agreements initiatives have not yet influenced land administration Explained, Ordnance Survey (United Kingdom), http:// domains, inevitably they will come under increasing pres- www.ordnancesurvey.co.uk/oswebsite/licensing/ sure to release their data as open data. This move will ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 363 BOX 13.4. Creative Commons Supports Open GIS and mapping applications, and in many instances still rely Government Licenses on paper-based processes. However, new approaches to computerizing land records and delivering e-government ser- Creative Commons (http://creativecommons.org) devel- vices are helping expand the land information services offered ops, supports, and stewards a legal and technical infra- to the Lao PDR’s urban and rural communities. structure that maximizes digital creativity, sharing, and innovation. The infrastructure consists of a set of copy- In 2004, with support from UNDP, the Lao PDR’s Science, right licenses and tools that create a balance inside the Technology, and Environment Agency (STEA) developed the traditional “all rights reserved” setting that copyright law ICT for Development Project under the Office of the Prime creates. The tools give everyone from individual creators Minister. The project’s main objectives were to develop a to large companies and institutions a simple, standard- policy framework for the management, standardization, and ized way to keep their copyright while allowing certain exchange of national digital information to implement the uses of their work—a “some rights reserved” approach government’s ICT master plan and strategy for 2006–10. to copyright—which makes their creative, educational, A critical component of a national information base is infor- and scientific content instantly more compatible with the mation on land and natural resources. The Lao PDR’s com- full potential of the Internet. This combination of tools and prehensive strategy for land information coordination and users is a vast and growing digital commons, a pool of management centers on the development of the Lao Spatial content that can be copied, distributed, edited, remixed, Data Infrastructure, a framework of land information, access and built upon, all within the boundaries of copyright law. policies, data standards, and ICT infrastructure that will ben- A recent example of an open government license was efit a range of users and agencies. Two key organizations are created by the National Archives in the United Kingdom, building the LSDI: the National Geographic Department, and where it is now being adopted by agencies providing STEA. LSDI is being piloted in Vientiane Capital City. open geospatial information services. Source: “Open Government License for Public Sector Information,” National Archives (United Kingdom), http://www.nationalarchives.gov As part of this effort, the second phase of the Lao Land Titling .uk/doc/open-government-licence/, accessed May 2011. Project (2004–09) developed a computerized national land information service to serve as the backbone for an efficient land administration system. The planned national information service will give registry officials access to a complete, reli- test the sustainability of their business models, as rev- able land inventory linked to information on who has rights enue streams from selling data and information services over land. This information will be stored in an interoper- will be challenged. Land administration agencies must able database available online, seamlessly linking textual work closely with their governments to ensure the fine and mapping information. The land information service will balance between supporting the transparency agenda free government agencies from paper-based processes and and the financial sustainability of their organizations. make it possible to deliver the full range of land services in each land office and online. Kiosks in rural districts will enable Policies ensuring that copyright, licensing, and pricing arrange- communities to access government land services online. ments are kept as simple and consistent as possible will enable strong business interoperability and generate coop- LSDI is viewed as an increasingly important factor in the Lao eration and shared services among government agencies PDR’s socioeconomic development. Integrating land use, own- and their partners. Two examples—one from the Lao PDR ership, planning, agricultural, and environmental data themes, and the other from Vietnam—emphasize the important role the LSDI will eventually support all land-related governance and of public information policy in e-governance. Information for management activities at the central and local levels. The far- the examples comes from Warnest and Bell (2009b, 2009d). reaching benefits will include improved natural resource man- agement and environmental protection, which are vital, given the increasing pressure on the Lao PDR from international investors. INNOVATIVE PRACTICE SUMMARY Success in implementing the comprehensive strategy for land A Policy Framework to Support the Lao information coordination and management has been achieved PDR’s National Land and Natural Resource by consolidating responsibilities for land under one organization, Information System formulating and approving land policy, implementing institu- In the Lao PDR, land registry officials, decision makers, and tional and regulatory reform, building institutional capacity, and urban planners use a variety of ad hoc and often nonstandardized strengthening project management mechanisms. I C T I N AG R I C U LT U RE 364 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT INNOVATIVE PRACTICE SUMMARY each department in the province is connected via fiber-optic Vietnam’s One-Stop Shop for E-Government networks to the provincial Data Integration Center. Services The government of Vietnam views land reform as a core com- The integrated land and house management information sys- ponent of its gradual market reforms (doi moi), which are rec- tem established in Nam Dinh City is a successful example of ognized as one of the most important drivers of Vietnam’s rapid the synergy between land administration, house management, growth and poverty reduction. The Vietnam Land Administration and ICT. The city’s new Center for Land and House Information Project (VLAP), approved in March 2008, will develop a land and Registration is a one-stop shop for critical and highly information system and deliver government land services demanded land services, extending from land titling and urban online. In this way, VLAP will provide greater accessibility and land plans to construction permits, management, and taxation. community participation in Vietnam’s land administration sys- ICT removed the walls between the local government agen- tem, improving transparency and strengthening accountability. cies involved in these procedures—such as the departments VLAP focuses particularly on modernizing the land registration for land, house management, and taxation and the people’s system and improving the delivery of land registration services. committees—in 25 wards. They have been able to review and streamline their business processes and maintain close collab- One of the most active e-government initiatives, the Bac oration through online data exchanges and process monitoring. Ninh land information system, is providing online services and electronic service centers in rural districts. Just 30 kilometers The prime minister has approved a Strategy for Information from Hanoi, Bac Ninh Province is Vietnam’s smallest and most Technology Application and Development for Natural densely populated province, with an estimated population of Resources and Environment to Year 2015 with a vision to 1 million. Twenty-one local area networks have been estab- 2020. A central element of the proposed reforms is the lished to serve government agencies, and an additional seven development of a system for accessing, retrieving, and dis- to serve rural districts outside the capital city. Remarkably, tributing land information nationwide. Topic Note 13.6: SUSTAINABLE FUNDING OF ICT IN LAND ADMINISTRATION TRENDS AND ISSUES Sustainable Business and Organizational Models Land administration systems need to be a revenue-generating, The experience of a number of Western countries and increas- self-sustaining activity. Most land administration agencies ingly of countries in Eastern Europe, Latin America, and Asia have adopted computerized technology, the life span of which (including Central Asia) shows that land registration systems is rarely more than four years and often less. The more an and even the cadastre can finance themselves. These agencies agency becomes capital intensive, the more it needs to spend can achieve full cost recovery by charging for the goods and on maintaining and replacing its ICT. services they provide, once the necessary basic investment has been made and services have been made more efficient. It is generally agreed that the state has primary responsibil- ity for ensuring that appropriate policy, legal, and institutional There are two elements in financing a land information frameworks for land administration are in place and that infrastructure: the building of the infrastructure, and its main- the formal land market operates efficiently. But should land tenance. Building a national cadastre and land registration administration be operated only by the state, and should it be solution is expensive. The cost of rebuilding an out-of-date paid for wholly by the state? Should there not, for example, cadastre can run into many millions of dollars, depending on be a partnership with the private sector to charge for ser- the size of the country and the precision of the survey data. vices based on the concept that those who benefit most Such an investment is hard to justify unless it can be shown contribute most to the cost? Strategic and business planning to generate sufficient revenue when it has reached a critical are needed to develop modern business models for land mass of transactions. For this reason, one of the first tasks in administration and for services to be provided in a business- modernizing land administration is to understand the differ- like, cost-effective manner. ent types of users, determine their specific requirements for ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 365 services, and create a business case for the corresponding consortium has been contracted to deliver a build/own/ investments in ICT. This type of strategic planning is often operate system for the Land Registration Authority over anathema to traditionally state-funded, output-based organi- an estimated 10-year project period. In such partnerships, zations such as land administration agencies. after the agreed-on concession (payback) period is con- cluded, the government fully owns the land administration It is generally accepted that building a land administration infra- infrastructure. Until that time, revenue generated through structure needs a substantial level of support from the state an agreed fee structure will be retained by the consortium or external funding sources. Maintaining the system is a dif- (Warnest and Bell 2009c). ferent story, and experience suggests that self-sufficiency is possible. Where there is no attempt at cost recovery and all There are risks associated with these long-term public-private operations are paid for by the state, there is always a risk that partnerships, as the assumptions underpinning the agree- the funds needed to improve service and replace equipment ments will inevitably change over the extended time frames. will not be provided, especially when government funds are in A good example is the recent global financial crisis, which short supply. With governments currently trying to reduce the depressed land and property markets and reduced the rev- burden of public services on their state treasuries, there is a enue streams that support ICT investments and service good opportunity to establish self-funding, autonomous, busi- provision. It is therefore essential that these public-private ness-oriented agencies. El Salvador, the Kyrgyz Republic, the partnerships have flexibility for change over their life cycle to former Yugoslav Republic of Macedonia, Serbia, and Singapore accommodate new business realities. have all planned autonomous, self-financing land administration agencies, while Lithuania, Moldova, and Georgia have attained When setting fee rates within a self-sustaining business self-financing agencies. The registration agency in Kazakhstan model, the danger is that the cost of transactions will deter was obliged to be self-financing from the day it was established. some people from registering property transfers, with the result that an informal land market runs in parallel with the formal one. The cost of transactions needs to be kept at a Leveraging Knowledge and Finance from the Private level that will encourage citizens to engage with and benefit Sector from land administration. While underpricing may encourage New models are being adopted for involving the private use of the data and generate volumes sufficient to achieve sector in sharing the investment and risk in designing, lower unit costs through economies of scale, there will come implementing, and sometimes operating land administra- a time when nonusers, including the poor, are effectively tion infrastructure and associated services. The complexity subsidizing the rich. and management requirements of these large, lengthy ICT programs are frequently underestimated. As discussed, Behavioral Change Requirements some of the earliest investment in ICT for land administra- tion featured large, internationally bid contracts that proved The idea that a government agency should operate as a difficult to manage, involved lengthy tendering periods, business making at least a marginal profit has required a and ultimately were slow to deliver operational solutions. significant cultural shift that is often very difficult for those In-house development has generally proven more success- who have been accustomed to a central government ful and allows agencies to either retain their own specialists service-driven environment. In reality, it should improve or use local companies to build and sustain local capacity. the provision of services, based on what people want and This approach is easier to manage; is more compatible with need rather than on what those in authority think is good incremental implementation; and, of particular importance, for the general public. Agencies become more accountable is very effective at amending and maintaining the solution to the public and develop an improved understanding and downstream. identification of those products and services that are of a commercial nature and those that are essentially a public An innovative approach is to engage the private sec- good. The downside of the commercial approach is that tor under public-private partnerships. For example, the financial incentives that benefit individual agencies may be Register of Scotland (http://www.ros.gov.uk/) has formed incompatible with “joined-up” government and attempts to a 10-year partnership with a technology provider under encourage cooperation between government departments. which it shares the ICT investment; but the agency still Yet if each department works to its own business plan and delivers the services. Another model of public-private part- the maximization of its own income, the common good can nership has emerged in the Philippines, where a private become marginalized. I C T I N AG R I C U LT U RE 366 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT INNOVATIVE PRACTICE SUMMARY private organizations or consortia.6 The Philippines has ICT-Derived Efficiencies in the Kyrgyz Republic adopted this approach for a 10-year project to computerize Benefit Land Office Staff 159 local and provincial Registries of Deeds, 16 regional Kant Registration Office is one of the Kyrgyz Republic’s most Registers, and the central Registry of Deeds office in successful land registration offices and is financially self- Manila. The project is implemented by the private consor- sufficient, with the status of a state enterprise.5 Growth in busi- tium LARES, which will deliver a build/own/operate sys- ness increased revenues from its services (land transactions, tem for the Land Registration Authority. The International information, and other services) from around US$90,000 in 2005 Finance Corporation, part of the World Bank Group, is one to US$265,000 in 2008. Fees are the standard (low) fees set by of the financiers, providing US$22 million. The project aims Gosregister, the national coordinating agency. Despite the low to digitize all Land Registration Authority records. Local and fees, the revenues cover all operating costs, including salaries, wide area network infrastructure will be installed to enable utilities, materials, and renewals of equipment and furnishings. interagency and public online access to land information (Start-up investments, however, were financed by the Land and and land titles. The revenue generated by the new system Real Estate Registration Project.) The land registration office will accrue to the consortium until the agreed-on conces- itself has funded the progressive digitization of old paper records. sion period ends, at which time the government will fully own the system. Kant Registration Office pays its staff well above government rates and adds bonuses quarterly and on special holidays. The The Philippines has also been successful with ICT innova- director has nearly tripled staff members’ salaries in the last four tions for e-government and online land services. Outsourcing years. She believes that such salaries develop trust and provide service provision to the private sector is the Philippines’ lead- incentives for quality work. As fees are modest in comparison ing strategy for harnessing ICT to communicate with citizens to those charged in most countries, financial self-sufficiency has and conduct business effectively. The telecommunications been achieved primarily through gains in efficiency. company SMART developed an innovative “I-Connect” SMS- based customer management service. The potential benefits of I-Connect are many when coupled with land information infrastructure technologies such as those in Leyte, Quezon, INNOVATIVE PRACTICE SUMMARY and the longer-term Land Administration and Management The Philippines: A Public-Private Approach to ICT program. It is anticipated that readily accessible online land Financing and Risk Sharing services and property inquiries via mobile phone will improve One approach for the public sector to finance ICT is to public perceptions of government and confidence in land share the risks and rewards of ICT investments with administration. Topic Note 13.7: DESIGNING SCALABLE AND INTEROPERABLE LAND INFORMATION INFRASTRUCTURES TRENDS AND ISSUES prematurely obsolete. A robust, extensible architecture Implementing land information infrastructures to support should be defined, tested, and available early in the project. land administration is a complex process, normally achieved There are no turnkey solutions. However, there is a great over a number of years. Many countries will take up to 10 deal of practice and experience worldwide on implementing years to achieve comprehensive coverage with a rich set of ICT for land administration, and there is no need to rein- e-services. Over this period, a number of disruptive technolo- vent the wheel. The following issues have been dealt with gies will arrive to challenge and potentially change the choice in other countries, and there is much to learn from those of ICT. This note aims to identify approaches to ensure that experiences. An ICT solution should never be developed in investments in ICT possess the scalability and interoper- isolation from trends and experience worldwide. ability that will potentially sustain the solution over the life cycles of new technology and reduce the risk of becoming 6 Information in this section is drawn from Warnest and Bell 5 Information in this section is drawn from World Bank 2010. 2009c. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 367 Data Model Standards platforms and/or frameworks. Web services are character- The major investment component in land information ized by their great interoperability and extensibility, as well infrastructure is in the collection and maintenance of land as their descriptions, thanks to the use of XML (Extensible registration and cadastral information. It is imperative that this Markup Language). Today, XML is one of the most widely information be easily ported across generations of ICT. This used formats for sharing structured information—between possibility is gradually being achieved through interoper- programs, between people, and between computers and able data model standards. For example, European countries people, both locally and across networks. Web services can implementing the EU INSPIRE Directive must be able to make be loosely coupled to achieve complex operations. Programs specific data themes discoverable and accessible through providing simple services, which can be built on different adherence to data specifications (that is, data model standards). hardware and software platforms, can interact with each One of these themes is “cadastral parcels.” (See http://inspire other to deliver sophisticated added-value services (see .jrc.ec.europa.eu/documents/Data_Specifications/INSPIRE http://www.w3.org/standards). _DataSpecification_CP_v3.0.pdf.) Another initiative in setting As an example of how Web services can be used, a message data model standards is the Social Tenure Domain Model under could be sent from a home location application to a Web- the wider Land Administration Domain Model developed by service-enabled properties-for-sale search website, such as UN-HABITAT and FIG (Lemmen et al. 2007), which provides a a real estate price database, with the parameters needed for standard model for social/customary tenure that ISO is ratifying a search. The property-search website would then return an and adopting. The Land Administration Domain Model is being XML-formatted document with the resulting data, such as used to support the Solutions for Open Land Administration prices, location, and features. Because the data are returned (SOLA) Project (see http://www.flossola.org ). in a standardized format, they can be integrated directly into the application. The home location application could then send Open Interoperability Standards messages to other Web-service-enabled sites to obtain other The implementation of shared information services within the property information on local amenities, crime statistics, concept of an NSDI has only been possible through the agree- public transportation facilities, and similar parameters. The ment on and adoption of open standards. ICT has a vast array information could be integrated easily into the home loca- of open standards, but within the geospatial domain, the Open tion application to support decision making. Service-oriented Geospatial Consortium, Inc. (OGC) is a nonprofit, international, architecture and Web services are increasingly used in voluntary, consensus standards organization that is leading the designing modern land information infrastructures to support development of standards for geospatial and location-based ser- incremental development, extension, and ease of integration vices (http://www.opengeospatial.org/). OGC standards are tech- with other Web-based information services. nical documents that detail interfaces or encodings. Software developers use these documents to build open interfaces and encodings into their products and services (see IPS “Combining INNOVATIVE PRACTICE SUMMARY Open Source Solutions with Open Geospatial Consortium Combining Open Source Solutions with Open Standards”). Ideally, when OGC standards are implemented Geospatial Consortium Standards in products or online services by two software engineers GeoServer, MapServer, and Deegree are open source map working independently, the resulting components “plug and server products focusing on Internet mapping applica- play” with other components compliant with the same OGC tions using Open Geospatial Consortium (OGC) WebGIS standards. OGC works closely with the ISO TC 211 Geographic standards. These OGC interoperability standards—such as Information / Geomatics and submits OGC standards for ISO WMS, WFS, and WFS-T—allow the cross-platform exchange approval and adoption (see http://www.iso.org/iso/iso_catalogue of geographic information over the Internet.7 Using these /catalogue_tc/). When bidding for land administration ICT, it is standards, map data stored in ArcSDE or Oracle Spatial and essential that the statement of requirements explicitly specifies PostGIS databases, for example, can be accessed over the the use of the appropriate OGC/ISO standards in the design of Internet with a standard Web browser or GIS client software. the solution to ensure interoperability of the solution. With WMS, map data can be accessed and displayed as an image that can be overlaid with GIS data from other data Service-Oriented Architecture and Web Services sources to produce composite maps. With WFS, users can Web services provide a standard means of interoperation among diverse software applications, running on a variety of 7 Information in this section drawn from FAO and FIG 2010. I C T I N AG R I C U LT U RE 368 MOD ULE 13 — ICT FOR LA ND A D MINISTR ATION A ND MA NAGEM ENT access the actual geographic features in vector format, while systems. Starting from a base of a few projects, the process WFS-T allows features to be created, deleted, and updated. should result in consistent economic growth. MapServer, GeoServer, and Deegree are server-based “map For example, the Land and Real Estate Registration Project engines” that display spatial data (maps, images, or vector in the Kyrgyz Republic was implemented to support the data, depending on the OGC Web service) over the Internet development of markets for land and real estate through to users based on their requests. MapServer has proven to be the introduction of a reliable and well-functioning land and a very mature and reliable product for distributing maps from real estate registration system. The open source approach GIS data sources over the Internet through the WMS, WCS, adopted by the project appears to be successful. For exam- and other OGC interoperability standards. GeoServer and ple, open source GIS software piloted by the Bishkek Land Deegree are more recent projects built with Java technology. Registration Office is being rolled out to the other 46 land reg- While comparable to MapServer in many ways, GeoServer and istration offices (World Bank 2011). The project has also been Deegree go further by supporting transactional WFS services, successful in the sense that the value of annual property sales allowing users to insert, delete, and modify geographical data rose from US$120 million in 2002 to US$1.5 billion in 2007, at the source from remote locations. In land administration and the annual value of new mortgages increased from less solutions, this functionality would allow notaries to sketch than US$100 million in 2002 to US$1.3 billion in 2008. new parcel boundaries resulting from property transactions on a digital map in their preferred GIS client software and From this experience, the open source initiative appears to send this new boundary information in the GML data format have potential to focus implementation of the national ICT for to the cadastral database on the WFS-T server. Development strategy and enable rapid ICT development in the Kyrgyz Republic. This model may be applicable in other A number of European cadastres already use WMS and/or developing countries that view ICT as a strategic tool for eco- WFS to give citizens access to public cadastral data sets over nomic development. the Internet, and are thus following the INSPIRE principles to provide public access to spatial data sets that are collected by the government. With the availability of high-quality, open INNOVATIVE PRACTICE SUMMARY Social Tenure Domain Model source Internet mapping tools, other national cadastre agen- cies are expected to follow this trend. In developing countries, large portions of land remain untitled, with less than 30 percent of cadastral coverage conforming to the situation on the ground.9 Where there is INNOVATIVE PRACTICE SUMMARY little land information, there is little land administration and The Kyrgyz Republic’s Open Source Strategy management. Conventional land information systems cannot and GIS Solutions adequately serve areas that do not conform to the land par- The Kyrgyz Republic has adopted a national strategy, “ICT cel approach applied in the developed world. A more flexible for Development,” that envisions ICT as an engine for eco- system is needed for identifying the various kinds of land nomic development throughout the country.8 The major tenure in informal settlements. This system has to be based components of the strategy are e-commerce, e-government, on a global standard, and the local community must be able e-education, and the public sector. In all of these areas, open to manage it. The Social Tenure Domain Model (STDM) intro- source technologies provide a mechanism for achieving duces new, unconventional approaches in land administra- strategic goals and overcoming the digital divide. ICT-based tion by providing a land information management framework development requires active growth in the local community that integrates formal, informal, and customary land systems of IT professionals, and open source projects provide local IT as well as administrative and spatial components. professionals with very effective opportunities to accumu- late and share experience. As local capabilities develop and STDM relies on tools for recording all forms of land rights, as support for open source systems grows, government and all types of rights holders, and all kinds of land and property industry can rely more on local firms to build cost-effective objects or spatial units, regardless of the level of formality. The open source solutions. In this iterative process, the more thinking behind STDM goes beyond established conventions. open source systems a country uses, the greater the growth For example, traditional or conventional land administration of the local ICT industry and the greater the possible savings systems relate names or addresses of persons to land parcels for government and industry in building more open source via rights. An alternative option provided by STDM relates 8 Information in this section is drawn from Abdrisaev et al. (2005). 9 Information in this section is drawn from FAO and FIG (2010). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 369 personal identifiers, such as fingerprints, to a coordinate point Stoter, J. E. 2004. 3D Cadastre. Delft: Netherlands Geodetic inside a plot of land through a social tenure relation such as Commission. tenancy. The STDM thus provides an extensible basis for an UNDP (United Nations Development Programme). 1998. “Capacity efficient and effective system for recording land rights. Assessment and Development in a Systems and Strategic Management Context.” Technical Advisory Paper 3, New York. FURTHER READING Williamson, I., A. Rajabifard, and M-E. Feeney. 2003. Developing Spatial Data Infrastructures: From Concept to Reality. London: Bell, K. 2005. Land Administration and Management: The Need for Innovative Taylor & Francis. Approaches to Land Policy and Tenure Security. Expert Group Meeting on secure land tenure, ESCAP, Bangkok, December 8–9. http://www Williamson, I., and J. Wallace. 2006. “Spatially Enabling Governments: .fig.net/commission7/bangkok_ 2005/, accessed May 2011. A New Direction for Land Administration Systems.” Proceedings of the 23rd FIG Congress, Munich, October 8–13. https://www.fig Cornia, G., and J. Riddell (eds.). 2008. 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Coleman. 2006. “GeoDF: Towards a SDI- ———. 2002. “Mass Evaluation Systems of Land (Real Estate) for Based PPGIS Application for E-Governance.” Proceedings Taxation Purposes.” Proceedings of the UNECE Working Party on of the GSDI 9 Conference, Santiago, November. http:// Land Administration Workshop, Federal Land Cadastre Service of www.gsdidocs.org / gsdiconf/GSDI-9/papers/TS9.3paper.pdf, Russia, Moscow. accessed May 2011. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 371 Module 14 USING ICT TO IMPROVE FOREST GOVERNANCE TUUKKA CASTRÉN (World Bank) and MADHAVI PILLAI (World Bank) IN THIS MODULE Overview. Information and communication technology (ICT) applications can be harnessed to enhance public participa- tion and transparency, make law enforcement more efficient, and improve forest management. This module uses the World Bank’s Framework for Forest Governance to assess the potential of ICT applications to address different aspects of forest governance. Topic Note 14.1: Pillar 1—Transparency, Accountability, and Public Participation. Approaches to increasing transpar- ency, accountability, and public participation for forest management through ICT include e-government services and open government applications, advocacy campaigns through text messaging and Internet social networking sites, community radio, crowdsourcing, and collaborative and participatory mapping.  Participatory Mapping in Cameroon  The Central Vigilance Commission Website in India  PoiMapper in Kenya Topic Note 14.2: Pillar 2—Quality of Forest Administration. Comprehensive forest management information systems have been seen as the ideal solution, yet it is possible to deploy smaller-scale ICT solutions to manage information requirements in key areas, such as the management of fires, inventories, and wildlife tracking.  Fire Alert Systems Integrating Remote Sensing and GIS  Kenya: Solving Human/Elephant Conflicts with Mobile Technology Topic Note 14.3: Pillar 3—Coherence of Forest Legislation and the Rule of Law. Effective law enforcement systems in the forest sector usually follow the steps of prevention, detection, and suppression. Technology has an important part to play in each of these steps in the efforts to curb illegal logging, transportation, and processing of timber and illegal trade in wildlife.  Ghana National Wood Tracking System  Liberia: LiberFor Chain of Custody Topic Note 14.4: Pillar 4—Economic Efficiency, Equity, and Incentives. ICT applications can promote business trans- actions with the private sector, as with the online auction of public timber, or e-auction. ICT applications such as RFID chips can increase productivity and improve efficiency in the supply chain.  RFID Chips for Efficient Wood Processing OVERVIEW focus is on institutions, their interaction with stakeholders, The management of forests is very dependent on informa- and how their performance can be strengthened. It does tion, knowledge management, and the capacity to process not cover forest inventories and technical resource assess- information. This module presents lessons learned on the ment. While the module is intended to be comprehensive use of ICT to promote good forest governance.1 The main on particular subjects, it does not present all possibilities and current practices of ICT use in forest governance. The objective is to demonstrate the range and diversity of 1 The module builds on the 2011 World Bank report “Forest Gov- ernance 2.0—A Primer on ICTs and Governance,” available at approaches and feasibility of using technology in forested http://www.profor.info. areas (see image 14.1). I C T I N AG R I C U LT U RE 372 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E Forest Governance as a Development Challenge IMAGE 14.1. Scanning Barcodes in Forests Enhances Good governance is a vital ingredient in development and Forest Management sustainable resource management (Collier 2007); invest- ments in sustainable development are widely recognized to yield better development outcomes within conducive gover- nance environments. Poor governance in the forest sector manifests itself in several ways. Forest crime—such as ille- gal logging, arson, poaching, or encroachment—is a problem in many areas. In many countries, corruption in the forest sector and rent seeking have caused forest agencies to lose both revenue and credibility. They have created an uneven playing field for legitimate private sector actors due to price undercutting and unreliable access to forest resources. The unpredictable business environment has also led to short- term profit maximization and has discouraged socially and environmentally responsible long-term investments in the forest sector. The Impact of Poor Forest Governance Poor governance in the forest sector is an impediment to achieving good development outcomes within the sector. In developing countries, an estimated 1 billion rural poor depend at least partially on forests for their livelihoods, and about 350 million live in and around forests and are heavily Source: Helveta Ltd. dependent on them for economic, social, and cultural needs. importance of good governance. Forests ensure the sustain- In developing countries, illegal logging in public lands alone ability of environmental services—biodiversity conservation, causes estimated losses in assets and revenue of more carbon sequestration, and watershed protection. All these than US$10 billion annually, more than eight times the total services are at risk if forests are not managed in a sustain- official development assistance dedicated to the sustainable able manner. management of forests. As much as US$5 billion is lost to governments annually because of evaded taxes and royal- Pilot projects around the world are currently testing differ- ties on legally sanctioned logging. In addition to financial and ent approaches to REDD+. Some projects are focusing on economic costs, the equity impact of poor forest governance increasing the involvement of and benefit sharing with indig- and illegality is considerable. These rough global estimates enous and local communities, especially in terms of mapping give an idea of the magnitude of the problem but mask coun- and measuring forest boundaries, degradation, and carbon try-specific variations. Despite the grim global estimates, levels. Interesting examples are the Community Carbon proj- the situation has improved in some countries. For example, ect in Mexico (Peters-Guarin and McCall 2010) and the Surui a recent Chatham House mapping shows that illegal log- Indigenous Peoples project in the Brazilian Amazon.3 Both ging has fallen more than 50 percent in the past 10 years in projects experiment with smartphones/PDAs with preloaded Cameroon, the Brazilian Amazon region, and Indonesia.2 software for data collection on biomass from sample plots and boundary demarcation using global positioning system Using ICT to Reduce Emissions from Deforestation (GPS) functions. These projects are training local communi- and Forest Degradation ties to update data and use simple interfaces on the devices All schemes to reduce emissions from deforestation and to convert the data into carbon estimates. forest degradation (REDD+) emphasize the fundamental 3 Amazon Conservation Team, Google Earth Outreach, and Moore Foundation (http://www.amazonteam.org/index.php/233/The_Sete 2 Information in this section was drawn from World Bank 2006a _de_Setembro_Indigenous_Reserve) & (http:// www.google.org and Lawson 2010. /earthengine/). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 373 A pilot project in Ethiopia4 also tried to have farmers access BOX 14.1. The Building Blocks of Forest Governance the international carbon offsets market and receive payments and Their Principal Components directly, through a mobile phone. In this case, smallholders near Bahir Dar were asked to measure the diameters of Pillar I: Transparency, accountability, and public trees on their land twice a year and put the information into participation a text message, which was sent, along with each farmer’s  Transparency in the forest sector unique identification code, to the regional Watershed Users’  Decentralization, devolution, and public participa- Association office. Standard software computed the amount tion in forest management of carbon stored on each farm as well as the change from the  Accountability of forest officials to stakeholders previous measurement; any increase in stored carbon diox-  Accountability within the forest agencies ide was converted into cash using the going rate of carbon dioxide on international markets, and farmers were paid by Pillar II: Stability of forest institutions and conflict their local association. management  General stability of forest institutions The Pillars of Forest Governance  Management of conflict over forest resources It needs to be recognized that even legal activities may lead Pillar III: Quality of forest administration to unsustainable management of resources and that good  Willingness to address forest sector issues governance and legality do not always deliver sustainability. The opposite also holds true: not all technically illegal activi-  Capacity and effectiveness of forest agencies ties are unsustainable. Development outcomes in forestry  Corruption control within the forest sector depend on many factors both inside and outside the sector.  Forest monitoring and evaluation To help improve forest governance, the World Bank has Pillar IV: Coherence of forest legislation and the rule developed a conceptual framework for forest governance of law that consists of five pillars or building blocks, each with  Quality of domestic forest legislation two to seven subcomponents (World Bank 2009) (see box 14.1). This module analyzes each principal component  Quality of forest law enforcement and assesses how information management and ICT can be  Quality of forest adjudication used to promote the specific dimension of forest governance.  Property rights recognized/honored/enforced It is clear that governance cannot be promoted by knowl- Pillar V: Economic efficiency, equity, and incentives edge management and technology alone; fundamentally, it is  Maintenance of ecosystem integrity—sustainable a matter of political choice and the capacity to implement forest use those choices. Therefore, the mere introduction of informa- tion technology will not lead to reforms and good governance  Incentives for sustainable use and penalties for if the overall environment is not conducive. violations  Forest products pricing  Commercial timber trade and forest businesses Information Management, Development, and Governance: The Role of ICT  Equitable allocation of forest benefits New technologies have dramatically changed the way this  Market institutions information is collected and applied in the forest sector. For  Forest revenues and expenditures example, World Bank experiences in Eastern Europe and Source: World Bank 2009. South Asia demonstrated the importance of appropriate management and generation of information and the need for These lessons gradually resulted in forest management infor- information on financial and operational issues, as well as mation systems (FMIS) becoming an essential element in for- performance assessment of state agencies. Public access est sector institutional reform programs. These systems were to this information is a prerequisite for greater accountability tried in forestry projects in countries as diverse as Argentina, (World Bank 2008, 2005). Bosnia and Herzegovina, Kazakhstan, the Russian Federation, Romania, Vietnam, and several states in India (World Bank 4 Personal communication, project team. 2008). The systems focused on forest administration in the I C T I N AG R I C U LT U RE 374 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E narrow sense and lacked cross-sectoral linkages.5 Information “back office” processes largely remained unaltered. Based system development has also been integrated into wider on these findings, it would be easy to assume that forestry forest sector reform programs, as described in the following departments did not need information technology to improve section and box 14.2. their functions. However, it would be more appropriate to con- clude that information management needs were insufficiently Experience of World Bank Support for Forest assessed before executing such a large-scale introduction of Management Information Systems new technologies. Other important reasons these projects Implementation completion reports for a sample of recent were not as effective include the following: World Bank forestry projects show that the introduction of ƒ FMIS components were too big and complex. computerized information management systems to facilitate ƒ Government staff were less familiar with the technical institutional reform had limited success. side of information management, and thus drawing up specifications for consultants to develop the systems For three forestry projects in India, the report notes that was difficult. the project objectives for FMIS implementation were not ƒ Delays in award of contracts meant that the systems achieved or were limited in their success due to delays in could not be tested by the client until the end of the assigning the consultancy contracts and a lack of technical project period. capacity.6 More positive outcomes have been noted in proj- ects in Romania and in Bosnia and Herzegovina.7 In Romania, ƒ Insufficient attention to “change management” to the report found that “the full system has been installed and generate “buy in” from staff at all levels. tested in headquarter and field office.” The project in Bosnia has had a positive outcome, and the reason for this seems BOX 14.2. Vietnam: Management Information System to be a phased approach. The initial focus was on develop- for the Forestry Sector ing overall IT capacity, followed by the introduction of more specialized capabilities such as geographical information sys- The Management Information System for the Forestry tems (GIS) mapping tools. Sector (FORMIS) aims to introduce modern approaches to information management in the Vietnamese forest While forestry administrations seem to have welcomed com- sector. This includes technological solutions for informa- puters, the link between technology, information manage- tion integration, remote-sensing technologies, and mobile ment, and institutional reform was not always maintained. The technologies. FORMIS will contain a number of subsys- most important reason often was the lack of clarity on how to tems and modules to provide information for steering and get the best from the technology. There was inadequate anal- managing the forestry sector toward sustainable forest ysis of how technology could be used to improve information management. The FORMIS information strategy will also management to improve core business processes. Technology guide the Ministry of Agriculture and Rural Development was seen as a means to spruce up the “front office” while in aligning IT investment in other development projects to obtain a harmonized, cost-effective system. 5 See, for example, the Bosnia and Herzegovina case study in World Bank (2008). FORMIS is expected to reduce the fragmentation of infor- 6 The report for the Andhra Pradesh Forestry Project notes that “the project has, in the latter stages, obtained up-to-date GIS mation by harmonizing standards within the Agriculture hardware and software and established a new Geomatics Cen- Ministry. The project will come up with consistent data tre . . . However, the system has only been fully operational in structures, standardized and consistent data collection the latter stages of the project.” The report for Uttar Pradesh Forestry Project notes that “the main weaknesses at (project) methodologies, and centralized coding systems. The frag- entry were . . . an expectation that the implementing agency mented nature of existing forestry information is partially would manage large consultancies (such as the Forest Manage- caused by a case-by-case approach when planning and ment Information Systems, FMIS) when its capacity in this area was limited. Other shortcomings were in the development of the building information systems, without having a strategic FMIS which was rudimentary and not a full-fledged planning tool overview. The project pays particular attention to the ini- at project closure.” The Madhya Pradesh Forestry Project report tial planning of the information strategy and the informa- found that “another shortcoming in sector management was the failure to deliver an improved macro-level planning process sup- tion system architecture of the systems to be built. ported by a FMIS and associated capacity building.” Sources: “Development of Management Information System for 7 Romania Forest Development Project (P067367) and Bosnia- Forestry Sector (FORMIS): Overall Work Plan” (March 3, 2010, Herzegovina Forest Development and Conservation Project unpublished); Fowler et al. 2011; Vietnam Development Report 2011. (P079161). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 375 ICT in Forest Governance: Experience hand, the growth of mobile phone connectivity in the country from Three Countries is being exploited by illegal loggers and poachers. Three detailed country reports were prepared to analyze what The experience in Uganda also demonstrates how linking lessons could be drawn from the experiences of countries with ICT and e-readiness assessment with extensive governance different forest governance challenges and different stages of diagnostics provides a good basis for reform. advancement in the application of ICT in development. The country reports are from Finland, Ghana, and Uganda. The important example from Uganda is the spontaneous development of ICT applications through radio and SMS in Finland is one of the world’s leading countries in applying ICT response to governance challenges (see box 14.5). Other across all levels of society and different economic sectors. initiatives led by the private sector are using technologies Forests have held a remarkable role in Finnish society for to optimize plantation management and processing. Thus, over a century. Alongside the rapid overall development of Uganda is an example where the government has created the ICT, forest sector actors have actively developed and applied space for ICT applications to be widely used, but has not really different ICT solutions to improve efficiency. Conventional provided direct support. It is an environment where low-cost, ICT applications have been developed to support decision innovative applications would thrive and where radio is still making and to improve the efficiency of the wood supply. the most influential technology to reach the rural population. During the past decades, the importance of communication between forest actors and the general public has become In the case of Ghana, while the country has made a lot of prog- an emerging requirement, and new solutions have been ress with Internet and mobile connectivity in general, appli- introduced in response. ICT solutions in Finland are currently cations in the forest sector are lacking. The National Wood in a transition period to second-generation solutions, with a Tracking System, which aims to establish a system for tracing large proportion of solutions and e-services being revised the chain of custody, is a notable exception. The system is and improved. The major drivers for this are the changes still being piloted and when complete will enable the forest in the operating environment and the rapid development of department to trace timber slated for exports all the way back hardware and communication possibilities. to the stump, thus meeting its requirements to certify legal timber under the Voluntary Partnership Agreement with the In general, the readiness for ICT solutions in the Finnish for- European Union. However, it is a donor-driven system, which est sector is very high, which reduces the need for capacity does raise questions regarding its sustainability after external building and technical support in introducing new solutions. funding ends.8 The key success factors for ICT solution development and application processes are the involvement of stakeholders, adequate capacity, and a high level of trust between the gov- Developing a More Integrated Approach ernment and private forest owners. For developing countries, The three main interlinked drivers of change toward a more the Finnish model presents two important lessons: (1) good integrated approach in forest sector information manage- outcomes from ICT solutions can be expected only through ment are as follows: a good communication strategy and upfront involvement of 1. Technological change and convergence: Enables stakeholders; and (2) piloting with a smaller user group is exploring data from anywhere in the world and col- beneficial for the final product quality. laborating with others. The Uganda report shows that the country has put in place 2. Increased openness, transparency, and partici- the legal and policy architecture for expanding the role of pation: The forest sector can no longer work in ICT in all spheres of development. However, in general, isolation and needs to share information with other the forest sector has been lagging behind in adopting these stakeholders. technologies. The high cost and specialized technical skills 3. National e-strategies and e-development pro- needed for traditional remote sensing and GIS applications grams: Forest sector information systems develop- have been a limiting factor. However, corruption, illegal log- ment needs to have a whole-government approach. ging, and other forest crimes are notable governance prob- lems in the country. The lack of avenues for citizens to hold 8 Information in this section is drawn from country reports for Finland, Uganda, and Ghana—unpublished consultant reports, their public office bearers accountable has been cited as one available at http://www.profor.info/profor/knowledge/information- of the governance challenges in the sector. On the other management-and-forest-governance. I C T I N AG R I C U LT U RE 376 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E ICT experiences in the forest sector have not been sys- summarizes the relationship of ICT to the five pillars. The tematically studied, but new applications are being piloted only pillar in the World Bank’s framework that has not been in various countries, and there is a wealth of experience specifically addressed is “Stability of Forest Institutions and from the field. Experience with ICT tools in other sectors— Conflict Management.” This is closely related to the four such as banking, agriculture, fisheries, and public sector other pillars. If issues such as transparency, quality of admin- governance—has also generated lessons on how ICT can be istration, and economic efficiency are ensured, conflicts in effectively used to improve governance and service delivery. the sector can be reduced. This module explores the range of ICT applications available and relevant for forest governance, using a sample of field experiences. While most of the cases are directly from the KEY CHALLENGES AND ENABLERS forest sector, nonforestry cases have been included for their Though there is great potential for using ICT to improve for- relevance to the forest sector. The discussion is focused est governance, there are no ready-made or easy solutions. on understanding what works under real-world conditions, This section looks at the operational challenges that confront the potential for replication and scaling up, and what can be national forest agencies and practitioners when using ICT for learned from other sectors. forest governance. It also reviews the key enablers that can help to overcome these challenges. Some of the following To understand how ICT can best serve forest governance discussions address issues generic to all agricultural ICT and needs, this module uses the World Bank’s framework for e-government initiatives, while others deal with issues spe- forest governance (see box 15.1) to classify the selected cific to forestry. examples. Information is a key crosscutting requirement for all the pillars of forest governance. The role of ICT in improv- Be familiar with national ICT policies and e-readiness. ing information management under each pillar is explored Projects can be developed in countries with low readi- with the help of field examples through the subsequent ness, but they must be designed accordingly. E-readiness topic notes (each topic note represents a pillar). Table 14.1 is an essential factor ensuring that e-services can be used TABLE 14.1. Pillars of Forest Governance and ICT PILLAR OF GOVERNANCE WHAT IS THE INFORMATION MANAGEMENT PROBLEM? WHICH ICT APPLICATIONS CAN HELP? I. Transparency,  Insufficient access to key information on forest management, land  E-government and open government applications Accountability, and tenure, concessions, etc.  Advocacy and awareness campaigns through text messaging Public Participation  No forums for public to share ideas, alert forest managers, or and Internet social networking sites register complaints.  Community radio  Lack of information or public consultations on planned development  Crowdsourcing to increase public participation projects and major land use changes.  Collaborative and participatory mapping II. Stability of Forest (Applications presented under other pillars.) Institutions and Conflict Management III. Quality of Forest  Costly and difficult to gather detailed information for forest invento-  Forest cover and carbon stock assessment with CLASlite and Administration ries and carbon estimation. airborne LiDAR  Extensive damage from forest fires and insufficient advance infor-  Real-time fire alerts mation for forest managers to take action.  Wildlife tracking and conflict management  Conflicts between humans and wildlife; wildlife poaching. IV. Coherence of Forest  Difficult to monitor movement of logs from forest areas.  Technologies for surveillance and deterrence—computerized Legislation and the  Information for legality verification is easily tampered with. check posts and GPS Rule of Law  Technologies for tracking timber—chain of custody systems  Lack of awareness of forest laws.  Surveillance of all critical areas for illegal activities is expensive.  Legal information management systems: Global Legal Information Network  Mobile and online crime reporting services V. Economic Efficiency,  Lack of transparency in auctions, sales, and allocations of licenses  Online timber sales, licenses, and auctions Equity, and Incentives for planting.  Logistics  Accurate information on distance and time needed to optimize  Mobile phone or PDAs for carbon estimation and receipt of timber transportation and increase cost-efficiency. payments Source: Authors. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 377 and that investments in new systems provide the desired public agencies or voluntary nongovernmental organizations outcomes. The existing and potential capacity needs to be (NGOs). Working at the local level ensures that applications assessed and mapped, and applications need to match the are responsive to local needs and that there is uptake of the capacity. Development programs may also have components models being developed. to strengthen the e-readiness in partner forest organiza- tions; this needs to happen in full alignment with national Information and communication technologies can e-government development strategies. Particularly in envi- improve forest governance, but operation, maintenance, ronments with weak capacity, there is a risk of systems and project design issues must be addressed. All cases being developed independent of each other, adding to the show that if planned properly, both mobile and Internet appli- difficulties associated with building e-government systems cations can be developed to improve various aspects of gov- across sectors. ernance. Moreover, these systems can be combined with others to provide a full range of services to public and forest Define the problem clearly, assess the information needs, professionals. But having appropriate technology alone is not and compare possible solutions. Defining the problem to adequate. One needs to consider two issues crucial to the be addressed is a fundamental requirement for any project, long-term sustainability of the applications: (1) Project design and ICT projects are no exception. ICT applications are tools has to be appropriate and focused on meeting demand; and or enablers, and having good devices alone is no assurance (2) operational and maintenance issues must be addressed. that forestry management will be improved. Therefore, it Recurrent issues like power supply (for recharging laptops, is essential to properly identify the underlying causes and mobile phones, and PDAs), spare parts (such as replacement effects before looking for a technological solution. The objec- batteries), and service also need to be addressed. tive is also to find the most cost-efficient and feasible solution. Mobile and Internet applications provide many benefits, but Some services are consumer driven and can become traditional communication channels may also be appropriate. financially self-sustaining, while others are public goods Particularly in environments where access to information and need to be financed from public sources. In designing networks and electricity is limited, lower-tech solutions may projects, consider costs, long-term financial sustainability, be needed. If no systematic feedback systems are required and scalability. Many pilot studies and applications are funded or the information is not time sensitive, conventional strate- and subsidized by international donors, NGOs, or national gies like public posters, community meetings, or radio can governments. However, particularly for commercial services, also help disseminate important information. the long-term sustainability of an application depends mainly on end user participation and out-of-pocket expenditures. Determine the best entry points and the appropriate These costs arise from the purchase of various information technology. In ICT, the gradual introduction of new services technology services, such as sending responses to text mes- based on existing ones can be also beneficial. In particular, sages, in which cases the total cost depends on the cost of systems that are aimed at the public and where extensive a text message. Very few pilot projects have focused on the end user training cannot be provided should be based on financial sustainability of the models, including how much familiar user interfaces. Another decision that needs to be investment is required. To be sustainable, programs need made when selecting entry points is the type of technol- to consider scaling up and replication. This is exceptionally ogy to be used. Technology choice depends heavily on the important for forestry because the sector is inherently public existing capacity; mobile phones and even smartphones are service oriented. For example, law enforcement is a public much more common in poorer developing countries than good and should be financed from public resources. Well- Internet-connected computers. functioning business models and reliable revenue streams are critical to public forest management (image 14.2). Design culturally appropriate and relevant content. Services provided have to be locally adapted and relevant and Address data security and privacy issues, and develop meet the requirements of the target audience. The key ele- risk mitigation to prevent the misuse of technology and ment is to ensure that applications do not require language inaccurate data. Having access to ICT to track illegal activities skills that are not widely available. Particularly in areas with facilitates better law enforcement; the converse could also be low literacy rates, it is essential that e-applications form part true. Loggers and wildlife poachers may intercept communi- of a more extensive service package where illiterate users cations between forest authorities and voluntary informers, can also access the information through various agents that and text messages can be used to mislead law enforcement help them with the applications. This can be arranged through agencies. Consequently, law enforcement bodies need to be I C T I N AG R I C U LT U RE 378 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E IMAGE 14.2. Long-Term Investments Are Critical to Scaling Up Interventions indigenous communities, which may have little formal knowledge of the sector and poor or no access to information networks. Also, within the communities, access may be unequal and women or the poor may be excluded, even if local elites have some access and knowledge. To avoid any potential unintended exclusion of key stakeholders, it is essential that any information system development plan include comprehensive stakeholder or client mapping. This should assess what the information needs are and how to provide the required information services, including training. Ensure buy-in from forest authori- ties at all levels. Ensuring adoption Source: Douglas Sheil, CIFOR. of an e-governance agenda in forest agencies may also happen through prepared to counter disinformation, have at least comparable other means. It may require strong normative guidance from resources, and be capable of investigating criminal activities. national e-government programs and agencies and may also If ICT applications are developed to encourage public partici- require the provision of financial incentives. Often, increased pation in forest law enforcement—for example, by opening use of new technology is driven by efficiency gains and cost hotlines for reporting corruption, illegal logging, poaching, or savings. If these can be clearly analyzed and demonstrated, other forest sector crimes—it is critical that the identities of agencies have incentives to stay engaged and expand the sources not be disclosed, as this could jeopardize their per- use of ICT. Even if many NGOs and international organiza- sonal safety. tions have been developing innovative models, if the right authorities are not involved, the new systems will have lim- Ensure that there is adequate information on the ited value if their operators do not have access to relevant resource (for example, forest inventories and resource information and data. Frequently, donor-funded projects have assessments) or readiness to improve data collection. been able to equip the project implementation units with Having adequate data to be processed in the system is a modern hardware and software while other departments precondition for transparent information sharing. The lack of remained much more poorly equipped. If wide-scale ICT data cannot be overcome by any investment in technology. reforms are expected to happen, it is essential that relevant Nevertheless, these investments do not need to be sequen- agencies be upgraded in a way that allows for their participa- tial. In most cases it is possible to collect inventory informa- tion. This requires adequate investment funding for upgrad- tion while developing ICT applications. ing hardware, system development, and human capacity building. Identify the right stakeholders and ensure their par- ticipation and avoid local elite capture; include indig- Users are able and willing to use new technologies, but enous peoples, women, and the rural poor. The forest they need to be aware of the service and motivated to sector, by its nature, has diverse stakeholders with varying use it. Even models that are fully functional from a technical levels of competence. Large enterprises, senior manage- perspective may fail to deliver or perform below expectations ment, and technical specialists in forest administrations and if users are not aware of them or do not have the right incen- international NGOs have better knowledge than rural and tives. It is essential for clients to be able to provide feedback ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 379 and to be genuinely involved. Making information available support. In many cases, the underlying technology already by the forest authorities serves several purposes: informa- exists and only applications need to be developed. The tion is a basis for public consultations and inclusive decision examples discussed in the topic notes clearly demonstrate making. However, even limited dissemination is beneficial; that many of the forest applications have been developed if the authorities disseminate information through websites, on existing platforms based on a demand-driven innovation. for example, the information is available to the media and These have been used in a number of ways to increase public NGOs for scrutiny, even if the public only has limited access participation and surveillance of forest areas, to monitor fires, to the information. and to reduce human/wildlife conflicts around protected areas. Applications using mobile phones, radio, and the Internet Additional observations and practical implications from the field can be deployed quickly with minimal technological examples in the topic notes are summarized in table 14.2. TABLE 14.2. Summary of Field Examples PILLAR OF GOVERNANCE SUITABLE ICT APPLICATIONS ISSUES TO BE CONSIDERED Transparency, Accountability,  E-government and open data initiatives  Applications are mostly Internet and mobile phone based, technologically and Public Participation  Advocacy and awareness campaigns through text less challenging, and cheaper to deploy. Cell phone applications would be messaging and internet social networking sites more useful in forested areas.  Community radio  Legal and political support is necessary for e-government and open data initiatives, and these applications are best led by government agencies.  Crowdsourcing to increase public participation  NGOs and civil society can establish and manage mobile phone applica-  Collaborative and participatory mapping tions, community radio, and participatory mapping.  Costs to users/communities need to be offset through funding from donors / private sector. Community radio (FM) stations can be set up for US$5,000– US$15,000 and managed by community members; SMS can be purchased at bulk rates from cell phone companies.  For mapping applications, GPS capability is necessary; PDAs (US$800– US$1,200) or smartphones (US$150–US$200) can be used, depending on how rugged the device needs to be. Quality of Forest  Forest cover and carbon stock assessment with  These applications are for government agencies. Administration CLASlite and airborne LiDAR  Satellite imagery is now available at lower or no cost; recent developments  Real-time fire alerts through MODIS have simplified software for interpretation. However, technical training is  Wildlife tracking and conflict management through essential to interpret images and generate maps. mobile phone applications  The LiDAR approach for carbon assessment is still in the early stages, and costs are estimated at US$0.10/Ha. Currently, the Carnegie Institution for Science (Department of Global Ecology) is the main provider of the LiDAR technology for forest cover and carbon assessment.  CyberTracker software is free to download onto PDAs and can be tailored for different uses: tracking wildlife, movement of logs, location of specific tree species, etc. It is a good technology for working in collaboration with communities.  Fire alerts from MODIS and through Fire Alert system are free text and email services. Coherence of Forest  Technologies for surveillance and deterrence: com-  Comprehensive chain of custody systems are expensive operations. They Legislation and Rule of Law puterized checkpoints and GPS tracking of vehicles are useful where the benefits of legality assurance outweigh the costs,  Technologies for tracking timber—chain of custody such as in timber exporting countries. Costs of these systems could be systems shared between industry and government as benefits accrue to both.  Legal information management systems: Global  Less expensive crime reporting hotlines could be set up to work through Legal Information Network voice and text messages. All crime reporting systems need to assure citizens anonymity and safety.  Mobile and online crime reporting services Economic Efficiency, Equity,  Online timber sales, licenses, and auctions  These applications would work well in situations where the forest sector is and Incentives  Logistics fairly advanced in the use of information technology. While the government agency may need to set up and maintain the applications initially, some services such as online auctions and inventory data, which are used by the industry can have a user fee to offset the cost to the public sector. I C T I N AG R I C U LT U RE 380 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E Topic Note 14.1: PILLAR 1—TRANSPARENCY, ACCOUNTABILITY, AND PUBLIC PARTICIPATION TRENDS AND ISSUES to receive information from the site’s users. A very advanced Information availability is a precondition for transparency, example is the website of the Forestry Commission of the accountability, and efficient public participation. Enhancing United Kingdom. This site provides users with information, the accountability of the government and its institutions, access to relevant policies and procedures, and links to wider including forestry institutions, is a key issue in all countries. e-government applications in the country (see box 14.3). Transparency and access to information are essential if pub- lic sector forest institutions are to be held accountable for BOX 14.3. Website of the Forestry Commission, United their performance. Making the public aware of forest sec- Kingdom tor’s policies, laws, and the rights and responsibilities of citi- zens and the state is the first step in increasing transparency The Forestry Commission of the United Kingdom is one and accountability. Public participation and support for forest of the best examples of e-government in action in the activities can be increased by actively seeking public opin- forest sector. The commission’s website (http://www ion and suggestions on government actions through easily .forestry.gov.uk/) not only disseminates information accessible avenues. Approaches to increasing transparency, on the forests under its jurisdiction but also serves as accountability, and public participation through ICT include a platform for interaction with citizens, including the following: e-commerce services. The site is user friendly and, from ƒ e-government services and open government a governance perspective, has a number of features: applications  Information on all aspects of forestry (educational, ƒ advocacy campaigns through text messaging and recreational, scientific, and industrial). Internet social networking sites  Up-to-date statistics on timber production, sales, ƒ community radio and inventory. ƒ crowdsourcing—mapping for the people, by the  Information search feature through the land infor- people mation search, which is a map-based tool giving ƒ collaborative and participatory mapping. information about land designations.  Information on grants and licenses for planting E-Government and Open Government / Open Data and felling, with a feature for online comments on Applications individual applications. Open government, open data, and e-government initiatives  Environment impact assessment register shows are meant to increase access to government-owned informa- details of the decisions that the commission tion and increase transparency and accountability in general. makes after assessing the potential environmental Open government and open data initiatives are giving more impact of work to carry out afforestation or defor- access to information that would otherwise be out of bounds. estation or to build forest roads or quarries. On the other hand, e-government solutions are designed  Online auctions through the e-timber sales portal. from the perspective of increased efficiency, reduced corrup- In addition to these interactive features, the site provides tion, and better service delivery. While open government / data the commission’s policies and standards for sustainable may not strictly be the same as e-government, all of these forest management, the government’s policies on free- approaches use ICT to make governments more transparent dom of information, the rights of citizens to information and efficient. held by state agencies, and the process of consultation the commission follows before planting or felling in any Websites are the first and simplest point of communication woodland. The commission also carries out an annual with the public in the digital world. Several ministries of for- survey where public opinion on forestry is gathered and ests and the environment have websites with information on posted on its site. key policies, programs, and organizational responsibilities; Source: http:www.forestry.gov.uk. however, only a few have interactive features that allow them ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 381 Australia, New Zealand, and the United Kingdom have open BOX 14.4. Advocacy and Awareness Tools government or open data policies to share information with the public. There are numerous benefits of having access to FrontlineSMS is free, open source software that turns a such large volumes of public data. For example, budget infor- laptop and a mobile phone into a central communications mation for the forest sector could be used to monitor the per- hub. Once installed, the program enables users to send formance of state agencies’ projects; and data on harvesting and receive text messages with groups of people through volumes and area could be used by interested civil society mobile phones. Its features include the following: organizations to monitor whether harvest levels are sustain-  No Internet connection is required. able and whether critical ecosystems are being protected.  A phone and SIM card can be attached, and the local mobile phone service operator paid per SMS While open data policies are primarily initiated by govern- as usual. ment agencies, the Open Budget Initiative demonstrates  All phone numbers and records of all incoming and that it is possible for civil society organizations to generate outgoing messages are stored. demand for open data policies. The Open Budget Initiative is a global advocacy program to promote public access to  Data are stored on the user’s computer, not on budget information and the adoption of accountable budget external servers. systems. It is anchored in a biennial Open Budget Survey  Messages can be sent to individuals or large that evaluates whether governments give the public access groups and can be replied to individually, which is to budget information and opportunities to participate in the useful for fieldwork or during surveys. budget process at the national level. To measure the overall  Easy to install and requires little or no training to commitment of the countries surveyed for transparency and use. for comparisons among countries, the Open Budget Index  Developers can freely take the source code and (OBI) was developed, which is a score assigned to each add their own features. country based on the information it makes available to the  It can be used anywhere in the world by switching public throughout the budget process. The OBI was initiated the SIM card. by the NGO International Budget Partnership. The OBI could Source: http://www.frontlinesms.com/. also be applied in the forest sector, and NGOs could initi- ate an OBI for the forest sector in their country. The role of ICT in this case could be to increase access to information through websites or mobile phones.9 The Central Vigilance Commission in India is another example of a “partial” open government initiative. Advocacy and Awareness Campaigns through Text Messaging and Social Networking Sites E-government services have been high on the agenda of The large number of mobile phone subscribers in develop- many countries for over a decade. The primary motive for ing and developed countries and the relatively simple tech- launching e-government services, from the perspective of nology for setting up mass text messaging systems (see the government, is often to improve the efficiency and cost- box 14.4) are helping NGOs and advocacy groups reach out effectiveness of operations; reducing corruption is often to greater numbers than is possible through traditional mass not stated as one of the objectives. However, studies have media. NGOs have used text messages effectively in their shown that e-government programs have a great impact on campaign for a new forest law in Argentina and to generate user perception of corruption and transparency. For example, public pressure on a food company to stop it from sourcing the World Bank (2009) found that in India, users’ perception palm oil from companies that cut down primary rain forests of corruption in the electronic land registration and records to make room for oil palm plantations. Sites such as http:// services called Bhoomi, CARD, and Kaveri was lower when www.mobileactive.org connect NGOs and advocacy groups compared to the older manual systems. (For a discussion of using mobile technologies for social change and help them ICT in land management, see Module 13.) with information on the latest trends, do-it-yourself guides, and reviews of mobile applications. 9 http://www.internationalbudget.org/what-we-do/open-budget- The growth of text messages in advocacy campaigns could initiative/. be attributed to the following: I C T I N AG R I C U LT U RE 382 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E ƒ Mobile phones are carried everywhere as a personal BOX 14.5. Uganda—Environment Alert: Civil Society accessory and are kept switched on almost 24 hours Organizations Use ICT in Advocacy each day, so the target audience is almost always Campaigns accessible. ƒ Messages targeted at individuals are more likely to In 2007, the government of Uganda wanted to give generate a response than those broadcast to a mass away a third of the Mabira Central Forest Reserves to audience. a sugar company after the government was asked to remove the reserve status of the forest and allocate the ƒ Responding to a text message is easier and quicker land to the company. At the same time, sensitivity to than making phone calls or sending letters, especially environmental matters had been heightened in Uganda when the responder does not have to pay for sending by the campaigns about the impact of the loss of forests the message. on floods, unpredictable weather, and rising food prices. ƒ Mobile phones allow two-way interaction, and feed- back can be received almost instantly. As a result, civil society organizations used ICT to alert individuals about official actions that would affect them NGO campaigns have started using Internet social networks adversely and to mobilize them to save the Mabira such as Facebook and Twitter to target the youth, who are Forest. Environmentalists took their fight to discussion the primary users of these networks. For example, an inter- groups on FM radio stations and used text messages to national NGO carried out a two-month campaign through campaign against buying the company’s sugar until the Twitter, Reddit, Facebook, and online video against an inter- plan to grab part of Mabira Forest was dropped. national food company during 2010 for its use of palm oil The text messages were particularly effective. The com- from suppliers linked to rainforest destruction. As a result pany saw a decline in sales, and some retail businesses of the campaign, the food company announced in May 2010 withdrew their products from store shelves entirely. that it would partner with the Forest Trust, an international Environmentalists argued that apportioning part of the nonprofit organization, to rid its supply chain of any sources Mabira Forest would bring more adverse effects than involved in the destruction of rain forests.10 This approach the sugar shortage. Opposition politicians also picked may be more feasible in medium- and high-income coun- up the slack and started criticizing the government for tries, where there is more access to the Internet, than in its lack of concern. In this particular example, text mes- low-income countries. In many developing countries, text sages helped by alerting people what would happen messaging is still the primary means of data collection next if they did not join the movement to stop the forest and dissemination. A combination of media can be used giveaway. The campaign of the civil society organiza- successfully, as the example from Uganda demonstrates tions was complemented by other actions in the country (see box 14.5). and strong reaction from the international development partners. Eventually, the plan was withdrawn. Community Radio Source: Uganda country report (available at http://www.profor.info/ profor/knowledge/information-management-and-forest-governance). The use of radio to broadcast development issues is not new. However, community radio is relatively new, and over the past decade several community radio stations have been established around the world to help women and marginal- areas of the globe, radio is the medium of choice, far out- ized groups to build networks and gain access to information stripping other mass media in terms of audience numbers. on health, livelihoods, farming, weather, and markets, as well For instance, in West Africa, radio ownership dwarfs that of as to educate communities on democracy, citizen rights, and all other communication equipment, including TV and mobile gender issues. phones. In Africa in general, between 80 and 90 percent of Radios are relatively cheap and easily repaired and widely households have access to radio.11 available, even in the poorest regions. In several African Radio programs can be combined with other media as well. countries, radio broadcasts are the primary medium for com- Radio browsing of the Internet is a more recent format that municating political and religious messages. In the poorest 11 Statistics for 11 countries for which consistent data were avail- 10 http://www.mongabay.com and http://www.greenpeace.org. able, Myers (2010). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 383 combines the power of the Internet with the reach of the radio. were presented in the form of drama in several local dialects During the program, the presenter browses the Internet with and were listened to in community meetings, where the a local expert (for example, a forestry or agriculture extension questions raised by the key characters were discussed by official or a community development expert), and together they the gathering. This technology could serve forest communi- describe, explain, and discuss the information in the languages ties in other countries as well, to keep them aware of policy used by the community. This has been successfully demon- changes and developments that can affect their resources strated by the community media centers piloted by UNESCO in and their lives. Box 14.6 summarizes how community radio Sri Lanka, Bhutan, and Nepal, among others. Similarly, mobile can help promote better forest governance. (See IPS “Farm technology is being combined with radio programming, where Radio International Involves Men and Women Farmers,” in listeners can call or text message the program. Module 6, for more on participatory radio.) With the availability of bandwidth on WorldSpace satellite radio subscription through First Voice International or RANET, Crowdsourcing to Increase Public Participation community radio stations in remote locations can access news Combining a Web-based platform with inputs from text and entertainment programs on other stations. However, the messages increases the versatility of information gathered. main benefits of community radio are in programming that is Information can be instantly geo-referenced and provide an in local languages, in formats that communities relate to, and overview to a decision maker on where activities should be on issues of local importance. For example, in Papua New prioritized. In addition to increasing transparency and public Guinea, a mix of community radio and digital audio program- ming has been used to convey messages on forest manage- 12 http://ictupdate.cta.int/en/Feature-Articles/Digital-audio-in- ment and sustainable land management.12 The programs Papua-New-Guinea. BOX 14.6. How Can Community Radio Benefit Forest Governance? Fighting corruption and increase awareness of citizens’ rights: In Malawi, the Development Communications Trust broadcasts “village voice” recordings from a network of radio clubs around the country. These programs report (among other things) on local-level delays, corruption, malpractice, and mismanagement by service providers, including interna- tional NGOs and local authorities and politicians. These problems are then broadcast on national radio, and the ministry, individual, or organization responsible is invited to reply on air in a context of a mediated dialogue with the community in question. The Development Communications Trust says that 70 percent of radio club problems are resolved satisfacto- rily after they have been aired nationally. It is currently supported by UNDP, Oxfam, and the Malawi national AIDS body. Reporting on corruption and governance: In Sierra Leone, KISS-FM in Bo and SKY-FM started a series called “Mr. Owl” to report on local police corruption. This resulted in increased pay for the police and the establishment of a commu- nity affairs department. A voter education program, “Democracy Now,” resulted in higher voter turnout in the station’s listening area compared to other parts of the country. Increasing women’s empowerment: USAID’s Women in Governance pilot program in Mali distributed more than 500 Freeplay radios to women’s listening groups in April 2004. The radios were designed for rural African conditions and can function without batteries. Instead, batteries can be charged manually by winding or through solar power. Increasing awareness of environmental issues and public participation in policy development: In September 2009, Developing Radio Partners (DRP), a U.S. NGO, launched a year-long pilot project called “Our Environment, Our Future” that brings residents the information they need in the way they can best use it. DRP is working with 99.6 Breeze-FM, a community-oriented private station in Chipata, Zambia, to help six radio stations in rural Zambia and Malawi create and broadcast local environmental programming. It also encourages innovative use of mobile phones to expand the stations’ interaction with listeners, using the text messaging software FrontlineSMS (box 14.4). The project is helping build skills in environmental reporting and in developing relevant content on topics such as the impact of deforestation on local agriculture, sustainable farming methods, and many others. Sources: Myers 2010; USAID 2005; http://developingradio.org. I C T I N AG R I C U LT U RE 384 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E participation, it can also serve as a means to track account- Technologies (IT) in Combating Illegal Logging” was started ability of civil servants. This application gained popularity in 2008 by developing a broad network of active citizens and after Ushahidi became a success story in the aftermath of NGOs to support the integration of a Web-based platform for the Kenyan riots in 2008, as a means of keeping citizens information alerts about instances of illegal logging into the informed on safety and security through information reports work of Bulgaria’s forestry administration. from individuals. The success of Ushahidi has led to its rep- lication in other countries for other purposes (see box 14.7). Crowdsourcing can be used for many different purposes. While it is a useful and cost-efficient way of collecting infor- A similar application by the Blue Link Information Network in mation, there needs to be a way to ensure that the data Bulgaria was initiated to gather information on illegal logging, entered are valid and have not been fabricated. The manag- which was simultaneously posted on the website, to show ers of the urban forest map in San Francisco, California, have the authorities where the illegal activities were concentrated. built in some specific algorithms to raise red flags in case of The project “Expose and Improve—The Power of Information dubious data inputs. They also propose carrying out random verifications in the field (box 14.8). Alerta Miraflores in the BOX 14.7. Public Participation and Crowdsourcing municipality of Miraflores in Peru is an expansive system for of Data tracking and reporting incidences of crime. Ushahidi, which means “testimony” in Swahili, is a platform designed to take input from hundreds of people by mobile phone or e-mail. It uses free software called BOX 14.8. Citizen-Powered Urban Forest Map FrontlineSMS that turns a laptop and a mobile phone of San Francisco into a text-broadcasting hub. As an SMS is sent from An example of crowdsourcing, this project is a collaboration a hot zone, the message syncs with the Ushahidi soft- of the government and nonprofits and businesses and citi- ware and shows up in a Web administrator’s inbox. The zens of San Francisco to map every tree in the city. Citizens Web administrator can decide to send a text message can create an account and upload a tree’s location, its diam- back to the sender to verify the information, send out eter, and a photo of the tree following instructions on the a blast alert to large numbers of people, or post the website. There is a link to an online guide called “Urban information onto a Web page with location information Tree Key” to help in the identification of the trees. from Google Maps (or do all three). Ushahidi is free, and although it was primarily developed as a quick The project is the first of its kind, and there has been information-gathering and broadcasting tool during the concern regarding the quality and authenticity of the riots in Kenya in 2008, it has quickly been adapted for data entered by the public. The collaborators intend to uses other than crisis response. The following programs overcome this challenge by carrying out field verification use the Ushahidi platform to gather information from of random samples of data. people and then show on a map where the events are Sources: http://www.urbantreekey.org; http://www.urbanforestmap .org; Friends of the Urban Forest (http://www.fuf.net). happening and how large an area is affected:  Wildlife Trackers is a citizen science project in Kenya. Collaborative and Participatory Mapping  Stop Stockouts is an initiative to track near-real-time Maps are vital for decision making in forestry. While public stockouts of medical supplies at pharmacies (in a sector forestry institutions prepare maps to record changes in medical store or health facility) in Kenya, Uganda, cover with data from satellites, day-to-day changes at a smaller Malawi, and Zambia. scale are often not recorded or not available in easily acces- The Ushahidi platform combines the benefits of the sible formats to a wider audience. Mapping devices and soft- Internet and mobiles phones and could be used to gen- ware have been out of reach for nonspecialists until recently. erate near-real-time information on forest crimes, fire, However, new software makes it possible to put the power of wildlife sightings, and so on. The advantage of mobile creating and updating spatial information in the hands of field SMS-based data inputs is immense in remote and rural staff and local communities (see image 14.3). Open source areas. programs make this more affordable for application develop- Source: http://www.ushahidi.com/. ers. Communities can partner with forest agencies to help create and update information on forest maps. Information ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 385 IMAGE 14.3. User-Friendly Tools Allow Local Participation in Forest Mapping Moabi is a collaborative mapping system that enables groups and individuals to build a large database for sharing, viewing, editing, and dis- cussing spatial information relevant to REDD+. The system has been developed by the World Wildlife Fund (USA) and is current being applied in the Democratic Republic of Congo. Moabi allows policy makers, research institutions, and carbon project devel- opers to view, download, and edit relevant spatial data. It will facilitate on-the-ground monitoring of activi- ties such as illegal logging, mining, and the bush-meat trade. By using mobile mapping devices, data can be collected and directly uploaded to the system either through the Internet or mobile phones. To compensate for slow Internet connectivity, data Source: Helveta Ltd. can be sent to proxies who will upload the data, making it available on boundaries, use rights and planned developments, and to global users. The site is built on open source, widely used small-scale logging or clearing for agriculture have implications free software such as Google Maps and Drupal, which is a for land-use management and governance. Information pre- Web content management system. This helps ensure that sented on maps is a powerful visual tool for decision making. the design is flexible, easily customizable, and functional on a It also increases transparency, which is essential when the wide variety of computers and Web browsers. interests of several stakeholders are involved. Any registered user in Moabi can post data to the website, Collaborative mapping is a tool to facilitate spatial data collection but the data can only be approved by a peer review mem- and analysis. This tool is more appropriate for the forest sector ber. Users will be able to view both approved and unap- than basic crowdsourcing, as it allows mapping of points of inter- proved data in the system and provide ratings on comments est and other geo-referenced information such as specific routes on any material posted. The system provides users with and areas. It can be useful for the staffs of forest departments, incentives to contribute information by recognizing regular NGOs, and national-level planning and policy-making bodies. contributors through elevated status or promotion to the peer review panel. For mobile phone contributors, incen- With the availability of open source and simpler software for tives may be offered through phone credit awards. Moabi desktop computers, even nonspecialists can view and upload is being developed with funding from a donor. However, data to maps. Greater accessibility to data is expected as a once the first pilot is successfully tested in the Democratic result of high-speed Internet services around the world, and Republic of Congo, it is thought that subsequent replica- data on forest cover, deforestation rates, density, and so on tions can be developed with a smaller budget of US$30,000 are now accessed by a wide range of audiences. Collaborative to US$50,000.13 mapping has the potential to increase and widen the scope of stakeholder participation in project design and manage- Moabi has a high level of utility in forest governance, to ment and to facilitate the viewing and updating of project increase transparency and public interest and participation in data. Three applications relevant for forestry are discussed: development activities that could lead to deforestation and ille- ƒ PoiMapper gal logging and to promote law enforcement. This application ƒ World Wildlife Fund’s Moabi ƒ CI Earth’s Participatory Mapping 13 WWF (USA), pers. comm. I C T I N AG R I C U LT U RE 386 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E will be more useful when it allows data collection and uploads computers with the specially developed icon-driven software via mobile phones to offset the lack of Internet connectivity CI Earth, which requires no literacy skills, to create forest inven- in rural areas. However, the peer review process for informa- tory maps. Data are captured using CI Mobile and GPS reader tion displayed on the portal may become a point of contention technology. CI Mobile combines handheld data entry with between different stakeholder groups, and it would be impor- data from GPS, RFID, and barcode readers to gather accurate tant to ensure the integrity of the peer review process. records of how assets are being managed and processed in the forest or factory. CI Earth uses a CI Mobile interface config- Participatory mapping is used extensively by development ured to record data types that are relevant to the particular user agencies and NGOs around the world. However, custom- or region. CI Earth data are synchronized with CI World through izing a handheld PDA with icons and images and training any locally available means of Internet connection, ranging members of local and indigenous communities in its use from satellite to dial-up modem. GPS-referenced data are then are important advances in this area. Helveta Ltd., an inter- made available within CI World in chart form and through GIS national corporation that develops and deploys supply chain applications such as Google Earth and ESRI’s ArcView. and asset management software for timber and agrocom- modities has pioneered the use of its Control Intelligence (CI) The communities are meant to use the devices during their Earth software to create maps of forest inventory in an online daily expeditions to the forest, recording their use of the environment accessible by all registered users. resources and their observations of illegal logging activi- ties. These data are then transferred to a secure website This innovative project is not without its share of problems. via satellite to a data center in the United Kingdom and can An interim review pointed out a number of concerns, mainly be accessed by authorized users and translated into maps. with project management and coordination between project Accurate manipulation of these devices will thus create partners and improvements in technology, such as more reliable data and maps that can define resource use, docu- appropriate methods of recharging the GPS batteries, for ment customary areas, and expose illegal logging practices. which the communities currently travel long distances, and So far, data have been collected south of Dimako in eastern to improve the icon designs.14 Cameroon. Logging activities were monitored both in and outside communal forest areas where Baka Pygmies cur- The use of handheld computers by local communities shows rently reside or hunt. Forest communities in the Mbalmayo that technology can be customized for all needs, and that region recorded bulldozer tracks that indicated industrial it need not be a barrier for illiterate members of the com- logging activities near illegally felled trees found outside of munity. However, the handheld devices currently used in the the legal commercial logging boundaries. Data gathered by project cost between US$800 and US$1200, putting them local communities assisted a logging company operating in out of reach for most forestry departments. The need for the area in identifying which communities it should consult such expensive devices may be justified by the nature of the over management plans for local forest areas as part of their task—extensive data collection in remote locations neces- Forest Stewardship Council certification process. sitating the need for rugged devices—but the appropriate technology has to be selected on a case-by-case basis. The CI Earth software with handheld computers has also been used in Nigeria to monitor biodiversity in the Afi Mountain Wildlife Sanctuary, which is home to a subpopula- INNOVATIVE PRACTICE SUMMARY tion of the critically endangered Cross River gorilla.15 Participatory Mapping in Cameroon This project has been implemented in a partnership between local and indigenous forest communities across the southern INNOVATIVE PRACTICE SUMMARY forest zone of Cameroon and the Forest Peoples Programme, The Central Vigilance Commission Website in India University College London, Centre pour l’Environnement et The Central Vigilance Commission (CVC) was designed to le Développement, and Helveta Ltd. Local forest-dependent be India’s top vigilance institution, free of control from any communities were trained in using GPS-enabled handheld 14 Interim evaluation report of project, “Enabling Independent 15 The source of information within this section is http://corpo- Monitoring of Forest Resources by Local and Indigenous Forest rate.helveta.com/uploads/news/20100107015150-Helveta%20 Communities” (unpublished, November 2009). Cameroon%20CaseStudy_2009.pdf. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 387 executive authority. It monitors all vigilance activity under the INNOVATIVE PRACTICE SUMMARY central government and advises various authorities in central PoiMapper in Kenya government organizations on planning, executing, reviewing, PoiMapper (“Poi” stands for “point of interest”) is being and reforming their vigilance work. The CVC is a statutory piloted by Plan in Kenya to develop a geospatial database body, and its website (http://cvc.nic.in/) contains the follow- for project planning and management. Plan Kenya field staff ing sections and features: upload answers to preloaded questionnaires on mobile ƒ Information on its role, responsibilities, and strategies phones and take photos to record the status and use of to combat corruption. development infrastructure such as schools, drinking water ƒ Communication directly with the public through sources, and clinics. Information collected includes the num- messages and speeches to bolster confidence in the ber of school-age children and population without access to institution. sanitation facilities; each point of interest, such as a school, ƒ Instructions for how any citizen can lodge a complaint is tagged with GPS referencing. This information is uploaded against corruption, without fear of disclosure or reprisal. to the PoiMapper portal, where it is overlaid on a digital map ƒ Central vigilance officers list: Each organization is to provide the agency with a spatial overview of its projects. expected to nominate a senior officer to whom an This database provides the management of Plan Kenya a employee can take a complaint on corruption. comprehensive overview of its projects in the field, and facili- tates better planning for available resources. One feature of ƒ Statistical reporting of the achievements of the CVC this application is that it allows organizations to share their and its annual report. data, especially when working in the same region. ƒ Details of convictions of public servants by the courts, along with information on officers against whom PoiMapper is a mobile geomapping, data management, an inquiry has been initiated or a penalty imposed. visualization, and sharing solution that can be integrated This section also highlights the performance of with open source portal tools such as Drupal or Vaadin and various departments responsible for conducting map engines such as Google Maps or Geoserver. It runs on investigations. standard low-end GPS-enabled phones as well as on smart- phones. It enables mapping of A decade ago, publishing the names of officers undergoing ƒ places, such as locations of schools and water points; inquiries on charges of corruption on the CVC website cre- ated a stir in the media, but it quickly caught the public’s ƒ routes, such as roads and water pipes; attention. Despite the low level of access to computers and ƒ areas, such as community boundaries, forests, and fields; the Internet, the information was widely disseminated by ƒ structured survey data, such as numbers, text, radio and print media throughout the country. Thus, the site exclusive, and multiple choice; and has had a wider impact than what could be expected based ƒ multimedia. on India’s computer density alone. PoiMapper can be used in offline mode for work in locations Given the explosion in mobile phone ownership and wide- where connectivity is unavailable and allows viewing data on spread use of the Internet, the CVC has stepped up its digital maps on a Web browser. It eliminates the need for use of ICT. The “Blow Your Whistle” site is a technology- expensive hardware and license investments or the need supported anticorruption initiative of the CVC. The site for software licenses. The application allows open access of allows citizens to report through mobile phones and the the stored data and the possibility to integrate open source Internet by uploading text, audio, and video files. Known as analytics tools such as Pentaho for data mining (image 14.4). Project Vigeye, the system requires registration, and once a complaint is filed, the complainant can log in and check The system requires a subscription fee and registration for the status of the complaint. The “Blow Your Whistle” site users to download the software and upload their data to the also has discussion forums and podcasts on corruption in portal. It will be tested for use in the forest sector through a the country, videos, and links to other resources.16 pilot in Vietnam. Having offline and online capabilities is an advantage in the forest sector, where access to the Internet 16 The source of information within this section is http:// or cellular networks is often erratic. The cost of the application blowyourwhistle.in/pages/about-us/. as a software-as-a-service is a monthly fee per active user. The I C T I N AG R I C U LT U RE 388 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E IMAGE 14.4. POIMapping in Kenya required and US$150 with embedded GPS, making them affordable for cer- tain project-specific applications. Field staff already use mobile phones, and the application, if useful for project management, is no more compli- cated than text messaging. Multiple users can browse and update the same information, and previous versions of data are main- tained for tracking purposes. Data are accessible via a Web browser, with appropriate authorization. Once an organization registers on the PoiMapper website and creates its account, the software can be downloaded to the mobile phone. Questionnaires relevant to the organization’s work can be created and downloaded to the Source: Plan Kenya. mobile phones. Existing data from a particular location on the portal price depends on volume, whether a project is associated with can be downloaded, and only new fields can be updated, it, and in which country it is used. The current default pricing which makes the system fast and efficient. The applica- is US$15 for NGOs and local users in developing countries tion is available for a monthly subscription fee per user, and US$30 for commercial organizations and users in devel- which allows the organization to store its data and edit oped countries. The developer currently requires a minimum them on the PoiMapper portal. At this stage, PoiMapper monthly engagement of US$750 (25 users) to set up a new does not have options for data input through icons, which database and support agreement. The price of mobile phones can be developed if needed, but this would restrict the on which the system works starts from US$50 if GPS is not type of data that could be collected or monitored.17 Topic Note 14.2: PILLAR 2—QUALITY OF FOREST ADMINISTRATION TRENDS AND ISSUES to input data, how to perform regression analysis, and how High-quality professionals and good information manage- to generate reports in the program.18 ment are key requirements for effective forest management. Not all online training courses have been sustainable. For exam- Distance learning programs are now available on the Internet ple, in Chile, the Catholic University of Chile developed exten- from a wide range of universities around the world. In addi- sive online professional development courses and modules for tion, some public sector forest service websites host custom- forestry professionals called UC Virtual. After some time, these ized training packages online. For example, the U.S. Forest had to be discontinued due to lack of user demand.19 Service has several online training programs for a number of technical tasks, ranging from basic statistics to cruising and scaling. One application on this site is the “Timber Theft 17 The source of information within this section is http://www .pajatman.com. Program,” which uses regression analysis to estimate stand- 18 http://www.fs.fed.us/fmsc/measure/index.shtml. ing tree volumes from stumps. Demonstrations include how 19 Gurovich (2006) and pers. comm. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 389 Information management—and, more specifically, spatial and images that make the presentations more appealing and information management—is the second key requirement for make it easier for nonspecialists to comprehend the long- forest administration. In Finland, MESTA is a free, Internet- term outcomes of the proposed management actions. based software application that is used to prepare and discuss forest management plans with communities (see box 14.9). The quality of forest administration also depends on good Similarly, in the United Kingdom, the Forestry Commission policy and administration, financial and human resource man- found that discussions about management plans with com- agement, law enforcement and land tenure, and timber sales munities were more productive when the commission was and revenue management—all of which require unhindered able to present digital plans with three-dimensional maps information flows both within the forestry department and with other parts of the government, as well as with the pri- vate sector and citizens. Comprehensive forest management information systems have been seen as the ideal solution BOX 14.9. MESTA: Participatory Forest Management to enhance the capacity of public sector forestry institutions Application to manage these information flows. However, it is possible MESTA is open access Internet software developed and to deploy smaller-scale ICT solutions to manage information funded by Metla (a Finnish forest research institute). It requirements in key areas, such as the management of fires, was first developed to serve as a tool for Metsähallitus inventories, and wildlife tracking, without investing thou- (a state entity that manages state forests and most pro- sands of dollars in hardware and software. Four such applica- tected areas) for participatory forest management, but it tions are discussed below: has become available to private forest owners for evalu- ƒ Real-time fire alerts ating different management strategies. Developed for ƒ Forest cover and carbon stock assessment with holistically evaluating different decision alternatives, it is CLASlite and airborne LiDAR based on the definition of so-called acceptance borders ƒ Google Earth Engine for decision criteria (for example, the minimum income ƒ Wildlife tracking from the forest cuttings). The strength of the software is that it can facilitate the Real-Time Fire Alerts illustration of the effects of different strategy alterna- One innovation in forest management is the near-real-time tives at stakeholder meetings. A better understanding fire alert system that has been developed by combining of the different alternatives and corresponding results NASA’s Moderate Resolution Imaging Spectro-radiometer can help one stakeholder group in accepting the needs (MODIS) data with GIS. The Fire Information for Resource of another stakeholder group. Through the evaluating Management System (FIRMS) by the University of Maryland process, the stakeholders will get information concern- analyzes the data from MODIS and presents it in a form that ing potential costs and benefits. is easy to use by field personnel. The system can deliver MESTA has been used in participatory forest manage- email alerts to subscribers with information on likely fires in ment by Metsähallitus in eastern and western Lapland, their area of interest. where decision making often requires difficult compro- mising on different objectives and needs, such as com- A more focused alert system is being developed by bining logging with nature-based tourism. Conservation International. The Fire Alert System has been developed for use in specific biodiversity hot spots around Compared to other methodologies for evaluating differ- the world and is currently being piloted in Madagascar, ent management alternatives, MESTA allows the study Bolivia, Peru, and Indonesia. This system delivers alerts on of alternatives with less input information and knowl- fires within a few hours after the NASA satellites sweep the edge on the subject. Therefore, it is considered to be Earth. The Fire Alert System is a fully automated analysis and efficient, especially when used in communicating with alert system that delivers a range of products tailored to a stakeholder groups that have less direct contact with user’s specific needs. forestry. Sources: Finland country report (available at http://www.profor.info/ There are some other highly advanced fire management sys- profor/knowledge/information-management-and-forest-governance); http://mesta.metla.fi/index_eng.cfm. tems, such as the one used by the New South Wales Rural Fire Service in Australia, which received a Meridian Award I C T I N AG R I C U LT U RE 390 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E in 2007 (http://www.meridianawards.com). HeliFIRE turns 1. Mapping of vegetation type and forest condition MapInfo Professional into a purpose-built application for the using freely available satellite data and CLASlite. airborne mapping of fires. Using a GPS connection, HeliFIRE 2. Large-area mapping of forest canopy three- becomes a moving map application, showing the user’s dimensional structure using airborne LiDAR. current position. Fire features such as active/non active fire 3. Conversion of LiDAR structural data to above-ground edge, fire trails, threatened properties, water sources, and carbon density estimates using LiDAR-carbon met- firefighter locations can be recorded accurately as the aircraft rics along with a tactical use of field calibration plots. flies over the features. This information is transmitted imme- 4. Integration of the satellite map with the airborne diately via the Internet to users on the ground who make the LiDAR data to set a regional, high-resolution baseline response decisions. carbon estimate. A second application, MapDesk, turns this information into CLASlite runs on standard Windows-based computers and updated fire maps. This custom application from MapInfo can map more than 10,000 km2 (at 30 m spatial resolution) Professional has several features that have been standard- of forest area per hour of processing time. While CLASlite ized to allow the quick generation of maps with minimal is highly automated, its user guide recommends a level of training. Information derived from these applications is deliv- training corresponding to the complexity of the forest area. ered to all 70,000 personnel, many of whom are volunteers, as well as to other agencies and the broader community.20 These custom systems are expensive to build and maintain. IMAGE 14.5. Satellite Imagery Can Map Levels of But the email and text message updates such as the ones Vegetation, Forest Cover, and Forest sent by FIRMS are free. Degradation Forest Cover and Carbon Stock Assessment with CLASlite and Airborne LiDAR The Carnegie Institution for Science’s CLASlite (Carnegie Landsat Analysis System-lite) is a software package designed for highly automated identification of deforestation and forest degradation from satellite imagery. Outputs from CLASlite include maps of the percentage of live and dead vegetation cover, bare soils, and other substrates, along with quantitative measures of uncertainty in each image pixel (see image 14.5). CLASlite converts satellite imagery from its original (raw) format—through calibration, preprocessing, atmospheric correction, and cloud-masking steps—and then performs a Monte Carlo Spectral Mixture Analysis to derive high- resolution output images. Its algorithms easily identify and accentuate areas where clearing, logging, and other forest disturbances have recently occurred. CLASlite does not pro- vide a final “map” but rather a set of ecologically meaningful images identifying forest cover, deforestation, and forest degradation that can be readily analyzed, processed, and presented by the user. The new approach involves four steps undertaken in con- cert to produce a rapid high-resolution assessment of forest carbon: 20 http://www.meridianawards.com/hall-of-fame/view/combating- bushfire-wild-land-fires-in-the-state-of-nsw-australia/. Source: CIFOR. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 391 According to the developers of the system, the cost of using ƒ New features that will make analysis easier, such as a combination of commercial and free data sources is approxi- tools that preprocess the images to remove clouds mately US$0.10 per hectare and is likely to fall further. Free and haze. licensing of CLASlite is granted to nonprofit/noncommercial ƒ Collaboration and standardization by creating a com- organizations in Latin America following completion of techni- mon platform for global data analysis. cal training. The CLASlite website21 reports that as of June 2010, more than 150 governmental institutions, NGOs (non- Google Earth Engine can be used for a wide range of commercial), and academic or research institutions had been applications—from mapping water resources to ecosystem trained in the use of CLASlite. services to deforestation. Initial use of Google Earth Engine is most likely to support the development of systems to moni- The developers of CLASlite have also tested airborne Light tor, report, and verify efforts to stop global deforestation. Detection and Ranging (LiDAR) in conjunction with remote sensing and ground mapping to carry out carbon stock During the United Nations Framework Convention on Climate assessments, to establish it as a low-cost and efficient Change, COP 16, in Cancun in December 2010, it was method of assessing carbon in different types of tropical announced that 10 million CPU-hours a year over the next two forests (see Module 5 on productivity for more on LiDAR).22 years would be donated on the Google Earth Engine platform to strengthen the capacity of developing-world nations to track the state of their forests, in preparation for REDD. The Mapping in the Cloud: Google Earth Engine Earth Engine was developed in collaboration with the Gordon Google Earth Engine is a technology platform that puts an and Betty Moore Foundation, the U.S. Geological Survey, unprecedented amount of satellite imagery and data— Mexico’s state forest agency (CONAFOR), scientists at the current and historical—online for the first time. It enables Carnegie Institution for Science, the Geographic Information global-scale monitoring and measurement of changes in Science Center at South Dakota State University, and Imazon Earth’s environment. The platform will enable scientists to to develop and integrate their desktop software to work use Google’s extensive computing infrastructure to ana- online with the data available in Google Earth Engine.23 lyze this imagery. The images of Earth from space contain a wealth of information. Scientific analysis can transform these images into useful information—such as the locations and Wildlife Tracking and Management extent of global forests, detecting how forests are changing Conflicts between humans and wildlife are common where over time, directing resources for disaster response, or map- communities live in or near wildlife sanctuaries and parks. ping water resources. The challenge has been to cope with The following applications prove that ICT can be used for the massive scale of satellite imagery archives and the com- wildlife tracking and management with the assistance of putational resources required for their analysis. As a result, communities. Even simple mobile text messages sent on many of these images have never been seen or analyzed. a regular basis to communities to keep them updated on Now scientists will be able to build applications to use these the movement of wild animals can go a long way in helping data on Google Earth Engine and will be able to take advan- people stay safe and in turn not harm the wildlife. “Push to tage of the following features and benefits: talk” is a rather infrequently used feature of mobile phone ƒ Landsat satellite data archives over the last 25 years networks in developing countries. However, there is an for most of the developing world available online, interesting example of its use to alleviate conflicts between ready to be used together with other data sets, includ- humans and elephants in the Laikipia District of Kenya. This ing MODIS. A complete global archive of Landsat is case demonstrates that park management, communities, expected to be available soon. and the private sector can, assisted by the innovative use of ƒ Reduced time to do analyses, using Google’s comput- mobile phones, come together to find a viable solution for ing infrastructure. By running analyses across thou- management of wild elephants and crops. sands of computers, for example, unthinkable tasks are now possible for the first time. 21 http://claslite.ciw.edu/en/index.html. 23 Information in this section is drawn from Google Blog (http:// 22 The sources of information within this section are Asner et al. googleblog.blogspot.com/2010/12/introducing-google-earth- 2009, http://claslite.ciw.edu/en/index.html, and http://claslite engine.html) and http://www.unep.org/stap/Portals/61/docs/ .ciw.edu/documents/CLASlite_PeruREDD.pdf. SFM/20.Moore.pdf. I C T I N AG R I C U LT U RE 392 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E Another example of ICT being employed to track wildlife is location represents the center of a 1-kilometer (approx.) pixel CyberTracker, a free software application that was developed flagged as containing one or more hot spots or fires within to enable indigenous communities with little or no literacy that pixel. FIRMS is currently being transitioned to an opera- to track wildlife in game parks. The software uses icons and tional system at the United Nations Food and Agriculture pictures to guide data inputs and works on handheld comput- Organization. ers with GPS capability. One of the longest ongoing uses of CyberTracker is at Kruger National Park in South Africa, Conservation International’s Fire Alert System where rangers collect vast amounts of data on, among other things, the movements and behaviors of key species, The Center for Applied Biodiversity Science at Conservation fires, availability of water, illegal presence and activities of International, International Resources Group, Madagascar’s humans, and the presence of new or invasive species of Ministère de l’Environnement, des Forêts et du Tourisme, plants. CyberTracker has been piloted in several countries in and USAID have teamed up with the MODIS Rapid Africa, mainly for recording and monitoring wildlife and biodi- Response System and FIRMS to develop an email alert versity data to aid research and management (CyberTracker system for fires in or around protected areas and areas of Conservation 2007). high biological importance. This system currently focuses on four biodiversity hot spots: Madagascar, Bolivia, Peru, and Indonesia. The Fire Alert System is a fully automated analysis and alert system that delivers a range of products tailored INNOVATIVE PRACTICE SUMMARY Fire Alert Systems Integrating Remote Sensing to a user’s specific needs. These include simple text-based and GIS emails containing the coordinates of active fires within pro- tected areas, areas of high biodiversity, different vegetation Remote sensing and GIS are now being integrated to pro- and land cover types, administrative units, or user-defined vide timely information on large-scale fires in the tropics. The regions. The emails can include JPEG attachments show- Moderate Resolution Imaging Spectro-radiometer (MODIS) ing a satellite image of a protected area with the active fire that orbits on NASA’s Aqua and Terra satellites as part of the depicted as red squares, ESRI shape files for importing into NASA-centered international Earth Observing System pro- GIS software, and KML files for importing data into Google vide the data. Both satellites orbit Earth from pole to pole, Earth. Each email alert also provides information on the time seeing most of the globe every day.24 and date of satellite observations and a confidence value for each fire detected. Subscribers may select from a range of The Fire Information for Resource Management System background images and maps. The next phase of this sys- While NASA’s MODIS Rapid Response system provides tem will include multivariate/multicriteria analysis, which near-real-time images and data on global fires in the public enables more flexible user customization, and an advanced domain on the Internet, forest managers in the field would report generator. be unable to find the time and technical skills to analyze the In addition to fire response and management, the Fire Alert data quickly. The University of Maryland developed the Fire System is now being extensively used to monitor and inform Information for Resource Management System (FIRMS) to enforcement officials of suspected illegal activity, such as ille- serve MODIS fire observations to this community. FIRMS dis- gal logging and encroachment taking place in protected areas. plays active fires detected in near-real time using thermal and mid-infrared data from the MODIS instruments; this means the data are processed and available on the Web four to six hours after the satellite passes over. Subscribers can sign up INNOVATIVE PRACTICE SUMMARY for email alerts on fires in their area of interest. The Web Fire Kenya: Solving Human/Elephant Conflicts Mapper of FIRMS is an open source, Internet-based mapping with Mobile Technology tool that delivers locations of hot spots and fires. These can The Laikipia District is home to the second-largest population of be viewed on an interactive world map showing hot spots wild elephants in Kenya. There is competition for land between or fires for a specified time, combined with a selection of the wealthy farmers who own large ranches and private con- GIS layers and satellite imagery. Each hot spot / active fire servancies, small agriculturists, and the elephant herds whose natural habitat and corridors have been made inaccessible by 24 Information within this section is drawn from Davies et al. 2009 human activity. The frequent encounters between people and and https://firealerts.conservation.org/fas/home.do. elephants have caused human and elephant deaths. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 393 To find a viable solution to this situation, the GSMA elephant conflict: 73 percent of the users in the pilot said that Development Fund—in collaboration with the University the technology provided early warning of elephant raids and of Cambridge Laikipia Elephant Project, the Laikipia Nature allowed the farmers to take preventive actions. Sixty-five per- Conservancy, Laikipia Wildlife Forum, Safaricom, Wireless cent of the users also reported that the system helped prevent ZT, Nokia, and Nokia Siemens Networks—devised a closed- theft of livestock and recover stolen livestock. Twenty-one per- group communication network between the park staff, ranch cent also reported that the management response improved, owners, and farmers in the district with special push-to-talk especially by the Wildlife Service staff. An important obser- mobiles. This technology combines the functionality of a vation by one user was that group communication increased walkie-talkie or two-way radio with a mobile phone and pressure on the government staff, because several members enables communication between two individuals or a group listen in to a request for intervention. Thus, accountability of of people, as needed, with the push of a single button. With the Wildlife Service staff seems to have increased. The use of stakeholder consultations and training, the pilot project initi- this technology was also appreciated by the Wildlife Service, ated communication between the Kenya Wildlife Service which reported that receiving reliable information over a larger staff, ranch owners, farmers, and NGOs that normally would area helped it to be more effective in the job. not take place in a systematic way. The pilot was meant to reduce human/elephant conflict by facilitating early commu- While the results of this pilot were very encouraging, the nication between the stakeholders regarding elephant move- service was not rolled out on a larger scale. Cellular operators ment and seeking the help of wildlife rangers when needed. did not find this technology commercially attractive in Kenya. Nevertheless, the pilot proves that “push to talk on cellular” has The results of this pilot proved that improved communication benefits in specific situations and could be used in other loca- between the various stakeholders significantly reduced human/ tions where similar challenges in wildlife management exist.25 Topic Note 14.3: PILLAR 3—COHERENCE OF FOREST LEGISLATION AND THE RULE OF LAW TRENDS AND ISSUES usually follow the steps of prevention, detection, and sup- In the forest sector, various types of resource use, both com- pression. Technology has an important part to play in each of mercial and noncommercial, are governed by various laws. these steps in the efforts to curb illegal logging, transporta- At the same time, forests have several characteristics that tion, and processing of timber and illegal trade in wildlife. A make them prone to timber theft and other illegal activities:26 variety of ICT applications can be used to improve deterrence and response measures, and these have been discussed in ƒ owner absent detail in previous World Bank reports.27 A few innovative ƒ potential witnesses indifferent or hostile to owner ones are reviewed here: ƒ easy to bribe way out of trouble ƒ asset unsupervised/unguarded ƒ prevention—e.g., crime mapping, corruption hotlines ƒ loot easy to sell ƒ detection—e.g., timber tracking, chain of custody sys- ƒ owner/manager unaware of inventory and value tems, checkpoints, satellite images, GPS surveillance ƒ police untrained, underequipped, uninterested ƒ suppression—e.g., crime databases, case manage- ment systems ƒ staff untrained and underpaid ƒ lax business practices/procedures Mobile and Online Crime Reporting Services Many of these vulnerabilities can be addressed through Governments around the world are increasingly involving ICT. Effective law enforcement systems in the forest sector citizens in crime reporting through e-government services 25 Information within this section is drawn from Graham et al. 2009. 26 William Magrath, “Presentation at the World Bank–FAO Workshop on Forest Law Enforcement and Governance in the Asia-Pacific,” 27 See, for example, Magrath et al. 2007, Asia-Pacific Forestry Kuala Lumpur, November 2009, unpublished. Commission 2010, and Dykstra et al. 2003. I C T I N AG R I C U LT U RE 394 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E to report incidences of corruption and crime. Members of in the system since its launch in July 2009) and by support- the public can send text messages, leave a voice message, ing NGO experts in the preliminary checks on the registered or send emails to report incidences of corruption and crime. alerts. Alerts are checked against a checklist of indicators Allowing citizens to report crime to the authorities is a cost- to verify the criminal character of the case before submit- effective and reliable way of preventing crime. The website ting it to the authorities. Established environmental NGOs in of India’s Central Vigilance Commission has a similar sys- Bulgaria have demonstrated their genuine interest and active tem, where anonymous callers can report corrupt officials support of the project by providing expert advice on forestry of state agencies. The example from a crime prevention issues, participating in preliminary checks, and lobbying for project in Peru shows how citizens can effectively contribute the integration of the online platform into the work of the to law enforcement and crime reduction in a municipality. Bulgarian forestry administration. While this project was The municipality of Miraflores in Peru and has developed a developed and executed by an NGO, it could be easily under- system called Alerta Miraflores to manage crime, using an taken by forest law enforcement agencies. The system could Internet- and phone-based system that does the following: enlist the services of interested NGOs and citizens to report ƒ gives citizens a way to report incidents to local secu- suspicious activities that can trigger additional investigation rity officials to record and take action by the forest agency. The ability to receive information via ƒ captures data electronically and displays the informa- mobile text messages or voice messages helps the system tion on reports and maps to let public safety officials to be used by anyone.28 pinpoint the areas from which citizens are calling, A key issue to be solved is the confidentiality of information define priorities, and dispatch the closest officers and safety of the informants. It is essential that all information ƒ allows municipal officials to manage citizen security is dealt with very carefully both to ensure the safety of the proactively, respond more rapidly, and analyze results individuals who report crimes and to ensure that the report- ing system is not used for spreading unfounded allegations. By improving its ability to rapidly respond to reported inci- dents, providing timely feedback to citizens, and capturing Tracking and suppressing illegal logging and trade in endan- detailed crime information, the municipality was better gered wildlife often needs information beyond the borders able to prevent crime and increase citizen security. Alerta of a single country. The United Nations Office on Drugs and Miraflores has reported a 68 percent drop in robberies since Crime has developed a series of software applications to 2003, a 30 percent reduction in assaults, and a significant help countries collect, analyze, and share intelligence and reduction in overall crime. information on international crime (see box 14.10). The tools and methods used in this project have a lot to offer to the forest sector. One application was used by Technologies for Surveillance and Deterrence the Blue Link Information Network’s project in Bulgaria While there are several sophisticated technologies available called “Expose and Improve—The Power of Information for crime detection, only some are specific to the forest Technologies (IT) in Combating Illegal Logging.” Individuals participate by registering alerts (30 alerts have been logged 28 http://www.spasigorata.net/ and http://www.bluelink.net/en/. BOX 14.10. UNODC’s “Go” Family of Products The Information Technology Service of the United Nations Office on Drugs and Crime (UNODC) specializes in the devel- opment, deployment, and support of software applications for use by member states in a range of UNODC’s program areas. The Government Office (“go”) family of products is part of UNODC’s strategic response to crime, particularly seri- ous and organized crime. The “go” family includes integrated investigative case management and intelligence analysis tools for financial intelligence units, law enforcement, investigative, intelligence, regulatory, prosecution, and asset recov- ery agencies, and for courts and other government agencies involved in the criminal justice process. All the software products include multifaceted integration and can function as stand-alone applications or together to form one global system, depending on the needs of the country. The application of systems able to interface with each other encourages interagency and cross-border cooperation and information sharing at the national, regional, and international levels. (continued) ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 395 BOX 14.10. continued Intelligence And Investigative Case Management System - Develop general criminal - Collect data intelligence - Identify targets - Develop financial intelligence on identified target(s) - Initiate parallel financial investigation (s) - Identify possession of illicit assets - Document case proceedings - Prosecute the suspect - Disseminate the intelligence - Document the assets - Obtain conviction(s) Anti-Money Laundering And Counter Terrorist Financing System DETECT – INVESTIGATE – FORFEIT/RECOVER COMPLETE MULTI-AGENCY SYSTEM Source: http://goidm.unodc.org/goidm/en/products.html. sector. The computerization of checkpoints in Gujarat, India, in a position to monitor vehicle movement inside forests, the is a good example of how technology can lead to better law forest authorities could use similar means to track vehicle enforcement and increased revenues for the state. movement in unauthorized locations. A slightly different approach to surveillance—with the help of GPS—has been tried with success in fisheries in West Technologies for Timber Tracking and Chain of Custody Africa under the Sustainable Fisheries Livelihoods Program, Systems sponsored by FAO and the UK Department for International Radio-frequency identification (RFID) holds considerable Development. Community surveillance of fishing grounds in promise for use in systems tracking the timber supply chain. Guinea has succeeded in reducing illegal incursions by indus- RFID uses radio waves to exchange data between a reader trial trawlers by 59 percent. Members of the fishing commu- and an electronic tag attached to an object, for the purpose nity on Guinea’s northern coast use GPS technology to track of identification and tracking. Some tags can be read from poachers. The fishermen can calculate the exact location of several meters away and beyond the line of sight of the a poaching trawler using a handheld GPS receiver and radio reader. the information to the nearest coast guard station. The GPS coordinates generate an alert if the trawler is in within the On average, an appropriate RFID chip costs from US$0.07 prohibited zones.29 The fisheries example has a lot of rel- to US$0.15. An important advantage of RFID systems for evance for the forest sector; while communities may not be log tracking is that signals can be read rapidly, remotely, and under difficult conditions. RFID labels can potentially store a large amount of data with a high level of security. The labels are difficult to counterfeit or tamper with and can provide a 29 Peter Lowrey, 2004. “SFLP: Arming Fishermen with GPS to high level of covert security. These devices can significantly Combat Poachers.” ICT Update No. 16, February 2004 (http:// ictupdate.cta.int/en/(issue)/16); http://www.fao.org/english facilitate data capture, data processing, and security audits. /newsroom/focus/2003/sflp4.htm). It is possible to encode RFID labels at all stages of the wood I C T I N AG R I C U LT U RE 396 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E supply chain from the field to the end user. RFID labels can More technologies and two examples of timber tracking are enhance logistics and inventory functions. discussed in IPS “Ghana’s National Wood Tracking System” and IPS “Liberia: LiberFor Chain of Custody.” Microtaggant tracers are microscopic particles composed of distinct layers of different colored plastics that can be com- bined to form a unique code. Millions of permutations are Legal Information Management Systems: Global Legal possible by combining several colors in different sequences. Information Network Codes can be read in the field with 100-power pocket micro- The Global Legal Information Network (GLIN)31 is an electronic scopes. These tracers can be used together with other labels online tool that gives access to authentic and updated official to provide additional security and to aid investigations of log legal information at a low maintenance cost. The system was theft or log laundering. They do not represent a stand-alone developed by the U.S. Library of Congress to improve access labeling technology. to original legal texts. In Gabon, GLIN has been used by the government to publish the primary sources of the law and all Chemical and genetic fingerprinting offer promise for the environmental legal information. The government chose to future but are currently too expensive and have not been become a member of GLIN to provide the stakeholders (forest fully developed for routine use in wood supply chain track- administrations, the private sector, donors, civil society, NGOs, ing systems. They are likely to prove most useful in prov- and so on) with a modern legal archiving system. The system ing the origin of wood in investigations of log theft or log helps to strengthen the rule of law and to start a discussion laundering. among stakeholders. Experience in courts and government institutions has shown that the Internet was their only source GPS tracking devices for vehicles can be used to track the of access to reliable, up-to-date legal information. movement of vehicles and can quickly point to vehicles in unauthorized locations. The GPS vehicle tracking unit can have a wireless modem that is able to communicate with INNOVATIVE PRACTICE SUMMARY global tracking systems30 (image 14.6). Ghana’s National Wood Tracking System The Ghana National Wood Tracking System (WTS), devel- 30 Information in this section is drawn from http://gpstrackit.com/ faq and Dykstra et al. 2003. oped by Helveta Ltd., provides a timber legality assur- ance system that is an important IMAGE 14.6. Tracking through Barcodes, RFID, GPS, and Other Technologies tool in reducing illegal logging—a Improves the Chain of Custody key initiative under the EU–Ghana Voluntary Partnership Agreement. The system addresses the trace- ability of wood in on-reserve areas destined for export. However, a chain-of-custody system should track all wood and wood products in circulation in a given market. Otherwise the system makes it easy to “launder” illegal wood— that is, mix it with legitimate sources. The system uses hand- held computers in remote forest areas in conjunction with plastic barcoded tree and log tags to cap- ture data such as species, diam- eter, length, and geospatial loca- tion. WTS is based on an existing 31 http://www.glin.gov and PROFOR Source: Tuukka Castrén. (2010). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 397 system from Helveta Ltd. called CI World. It consists of INNOVATIVE PRACTICE SUMMARY four main components: Liberia: LiberFor Chain of Custody ƒ identification and tagging of individual products or LiberFor is a public-private partnership developed in 2007 consignments using barcoded labels or RFIDs to implement a tracking system for the forest product sup- ƒ incorporation of these tag numbers onto the statutory ply chain. The chain extends from the stump to the point of forms used for declarations, inspections, and other export to prevent illegal timber from entering the supply chain relevant records and reports and being exported. The system is currently managed by a ƒ use of electronic technology for data collection and private international company, but management will be gradu- transmission ally transferred to the Liberian Forest Development Authority. ƒ development of a database to receive, analyze, and The system will be able to monitor all timber flows in Liberia report on all wood production and movements and ensure the integrity of regulatory documents and sam- WTS allows Ghana to demonstrate compliance and control across pled field checks. It will also prepare all the timber sales and to their timber supply chains and secure access to premium taxation invoices and monitor payments made by logging markets in the European Union and the United States. Trees are companies to the government. Ultimately, after checking that numbered (engraved on the tree), and next to the numbering is all requirements have been met and payments have been a white tag that has a barcode with the corresponding number. made, LiberFor issues an export permission for the timber. A PDA equipped with GPS, scanner, camera, and data input is Forests cover 45 percent of the total land area in Liberia, handed out to the enumerators, who venture into the reserve and they are an essential source of revenue and economic with the field rangers and supervisors. The stock enumera- development for the country. After coming out of a 14-year tion involves numbering and tagging the yet-to-be-harvested civil war, the country needed to build a system to manage timber with a barcode near the base of the tree. When its forest resources professionally and in an sustainable way. harvested, the timber will also have a replica number and Previously, illegal logging had been a key driver of corruption barcode, allowing tracking of the timber through the process and financial, social, and legal problems. For example, in 2006 to export. Information collected includes the following: approximately US$64 million of logging revenues were in arrears and only 14 percent of revenues were accounted for. ƒ Allocation of reserves, compartments, and lots ƒ Consortium holding The new chain-of-custody system has been designed to ƒ Consortium harvesting schedule and by whom ensure that there is no return to the past uncontrolled log- ƒ Plant species and how harvesting is done ging in the country. Like WTS in Ghana, LiberFor is based on the Helveta platform. Its main components are as follows: ƒ Where to mill ƒ CI Earth—mapping ƒ Due diligence on taxes • block maps ƒ GPS position of trees • stock surveys The timber flows monitored and verified are standing • plantation compartment maps trees in the lots or compartments in the forest reserves; ƒ TracElite—chain of custody the system has not yet proceeded to tracking the timber • tree felling through logging and processing, import to processing, • crosscutting, dressing, and log registration and local sales or export. WTS will enable the tracking of individual logs and consignments of processed products. • transporting of logs and wood products It will include product labeling, physical inspections, and ƒ Performance management documentation checks electronically. The use of ICT in • data reconciliations this case allows a more comprehensive review of all wood • data verifications movements than paper-based systems alone can provide, • random samplings and inspections which is the current method.32 ƒ Document management • concession registrations 32 Information in this section drawn from the Ghana country report, available at http://www.profor.info/profor/knowledge/ • invoicing and regulatory document information-management-and-forest-governance. • management tag control I C T I N AG R I C U LT U RE 398 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E The system has tagged and located approximately 440,000 trees, base in the forest, which is a precondition for sustain- verified approximately180,000 trees in the system, and invoiced able forest management. more than US$11 million in revenue, mainly from areas fees. The LiberFor chain-of-custody system is being operated on With the new system, the Liberian Forest Development a build/operate/transfer basis by SGS Liberia. While the sys- Authority will be able to do the following: tem is technically functioning and able to meet the require- ƒ Manage the supply chain for all wood products from the ments of law enforcement and revenue collection, there are point of origin to the export gate or domestic markets. severe concerns regarding the sustainability and feasibility of the system. Both public and private sector stakeholders have ƒ Manage the conditions for release of timber export permits. raised concerns that the system is extremely complicated, ƒ Ensure that taxes and fees related to timber produc- has increased transaction costs unnecessarily, and is inap- tion and trade are collected. propriate for the Liberian context. The main concerns were ƒ Invoice and monitor payments by logging companies based on the need to have a 100 percent inventory (above a to the government through an information sys- threshold size) of the logging sites (as opposed to only col- tem involving the forest administration, Ministry of lection information on commercial species), inappropriate Forestry, and Central Bank. design of the tags, and dependence on LiberFor inspectors. ƒ Strengthen the capacity of the Liberian Forest One issue of concern is that the system runs on Helveta Development Authority. servers in the United Kingdom rather than in Liberia. Long ƒ Help both the Forest Development Authority and pri- distances and limited international bandwidth may lead to vate concession holders to better know the resource reliability issues.33 Topic Note 14.4: PILLAR 4—ECONOMIC EFFICIENCY, EQUITY, AND INCENTIVES TRENDS AND ISSUES has a help feature that tackles most of the common problems Timber sales and auctions and concession-allocation pro- faced by users. The site explains the different types of auctions cesses are prone to unfair practices, collusion, and nontrans- and allows bidders and nonbidders to view sales events, which parent decision making. This ultimately has an impact on increases transparency. All terms and conditions are posted, so both state revenues and private sector competitiveness. In that bidders are fully informed before bidding. In addition, there general, participatory design and proper enforcement of the are links and phone numbers to provide help. As a truly online law should result in more equity and economic efficiency. auction, the sale closes automatically when the bidding closes Thus, technologies aiding law enforcement could be consid- and the winner is informed, with no further need for paperwork. ered tools for enhancing equity and efficiency as well. Bidders cannot see other bidders’ quotations, and losing bidders are only given the name of the winning bidder on request. The system has been operational since 2004, and about one-third of Online Timber Sales, Licenses, and Auctions the Forestry Commission’s annual production of about 6 million There are examples of ICT applications that are designed to m3 is sold on the open market, indicating that electronic sales promote business transactions with the private sector. One are an effective model. Cost-benefit analyses carried out by the such example is the online auction of public timber, or e-auction. commission reveal that approximately £100,000 is being saved Most forest agencies in developing countries do not have inte- annually as a result of electronic sales.34 grated and well-functioning forest management and informa- tion systems that would enable e-auctions. Even in developed The commission also operates an online grants and licenses countries there are only a few instances of fully online systems. system that provides private forest and farmland owners an opportunity to apply for grants to plant trees or seek per- The Forestry Commission of the United Kingdom has an mission to fell trees on their lands. The system enhances advanced online auction system (image 14.7). The auction transparency by displaying all applications on the website, process is fully online and integrated into the e-government 33 Information within this section was provided by the LiberFor team. service of the United Kingdom. This site is simple to use and 34 Pers. comm. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 399 linking each application by a case number to the map, which methodology. According to this methodology, each felled tree shows the location of the proposed activity. has a unique code through an embedded microchip connected to a database. The chip or tag can also include information about the log parameters, felling location, and time of felling. This infor- Logistics mation is used in subsequent stages of the production chain to Two examples from Finland demonstrate the use of track- optimize process exploitation. Within the project, a new type of ing devices to improve efficiency and productivity. One proj- RFID tag was developed. By using new, pulping-compatible raw ect, called Indisputable Key, used RFIDs to reduce waste material, the tag does not affect any of the processing options. and increase the usable volume of wood from the harvest, The project also resulted in the development of transponders while the Metka project was aimed at reducing transporta- that could read and modify tag data in harvesters and in tools tion costs to increase productivity. Transportation costs are such as large metallic saws, which had been problematic with optimized when only those piles of bioenergy wood that the old transponders. The system was designed to be usable in have dried to the right moisture content are transported all possible field conditions within the European Union, from the by the company. Both examples could be adapted to any northern icy conditions to the southern warm and dry conditions. wood-processing unit around the world. The increased efficiency of the timber supply is achieved through the ability to source the raw material from the har- INNOVATIVE PRACTICE SUMMARY vesting point all the way to the most profitable producing unit. RFID Chips for Efficient Wood Processing Currently, the forest industry consumes timber in bulk without The multinational development project Indisputable Key was a taking full advantage of the different characteristics of wood three-year, EU-funded endeavor with a total budget of €12 mil- harvested from different origins. By being able to identify dif- lion. It was launched in 2006 and held its final seminar in March ferent sources, manufacturers can take into account the dif- 2010. The primary objective of the project was to decrease the ferences in timber quality in the processes. The quality aspect proportion of timber that is wasted or used for lower-value end is noticed in market transactions through premiums for better products than the initial timber quality would have warranted. timber quality. The methodology and technology behind the The data management is based on Individual Associated Data system are fully transferable to any geographical area. IMAGE 14.7. Online Timber Sales in the UK Source: UK Forest Commission. I C T I N AG R I C U LT U RE 40 0 MOD ULE 14 — USING ICT TO IMPR OVE FOR EST GOV ER NA NC E Metka and Distributing MODIS Active Fire Data.” IEEE Transactions on Geoscience and Remote Sensing 47 (1): 72–79. Metka is a development project that uses an RFID tracking system. The project’s objective is to develop an operational Dykstra, Dennis P., George Kuru, Rodney Taylor, Ruth Nussbaum, William B. Magrath, and Jane Story. 2003. “Technologies for tracking system for local bioenergy supplier Vattenfall; the Wood Tracking: Verifying and Monitoring the Chain of Custody client benefits from increased profitability of wood-based and Legal Compliance in the Timber Industry.” World Bank, bioenergy production. The software developer Protacon Washington, DC. built the information database, basing the system on exist- European Commission. 2007. FLEGT Briefing Notes: Forest Law ing Oracle-based stock management software. The tracking Enforcement, Governance and Trade. Briefing note number 01. system is built on RFID tags attached to the bioenergy wood Fowler, M., P. Abbott, S. Akroyd, J. Channon, and S. Dodd. 2011. piles when harvested. The cost-efficiency of the system is “Forest Sector Public Expenditure Reviews: Review and achieved by using cheap, low-capacity bulk tags. This makes Guidance Note.” Program in Forests (PROFOR). it possible to track low-value items as well. The tag allows Graham, M. D., C. Greenwood, G. Kahiro, and W. M. Adams. 2009. the company to follow the chain of custody more carefully “The Use of ‘Push to Talk’ Mobile Phone Technology to Reduce and to optimize the processes to reduce transportation Human Elephant Conflict, Laikipia District, Kenya.” Working costs. Another benefit of the information in the tags is the Paper 2, Laikipia Elephant Project, Nanyuki. ability to optimize the drying time of harvested wood in order Gurovich, Luis A. 2006. “UC Virtual: A New Educational ICT Based to minimize transportation costs and maximize the calorific Platform for Professional Updating of Knowledge and Abilities for Agricultural and Forestry Engineers in a Virtual University Campus.” value per transported unit. This has a remarkable effect on Journal of Information Technology in Agriculture 1 (1): 1–9. the chain’s profitability. The system has been taken into operational use by Vattenfall. At the moment, the system is ICT. 2004. Update No. 16, February. Wageningen: Technical Centre for Agriculture and Rural Cooperation. in use in the areas of two forest management associations and by two operators. The total number of vehicles and for- Lawson, Sam. 2010. “Illegal Logging and Related Trade: Indicators of the Global Response.” Chatham House briefing paper, Chatham est tractors using the system is about 10.35 House, London. Magrath, William B., Richard Grandalski, Gerald L. Stuckey, Garry B. Vikanes, and Graham R. Wilkinson. 2007. Timber Theft REFERENCES Prevention: Introduction to Security for Forest Managers. When the source is a personal communication, website, or Washington, DC: World Bank. unpublished report, it is mentioned in the footnotes and not Myers, M. 2010. “Why Radio Matters.” Developing Radio Partners, listed in the references. Washington, DC. Peters-Guarin, Graciela, and Michael K. McCall. 2010. Community Asia-Pacific Forestry Commission. 2010. Forest Law Enforcement Carbon Forestry (CCF) for REDD: Using CyberTracker for and Governance: Progress in Asia and the Pacific. Bangkok: UN Mapping and Visualising of Community Forest Management in Food and Agriculture Organization. the Context of REDD. Think Global, Act Local (K:TGAL) Report, Asner, G. P. 2009. “Tropical Forest Carbon Assessment: Integrating Kyoto. http://www.communitycarbonforestry.org. Satellite and Airborne Mapping Approaches.” Environment Program on Forests (PROFOR). 2010. Rapport de Fin de Mission— Research Letters 4. GLIN Gabon. http://www.profor.info. Asner, G. P., D. E. Knapp, A. Balaji, and G. Paez-Acosta. 2009. “Automated USAID (U.S. Agency for International Development). 2005. Women’s Mapping of Tropical Deforestation and Forest Degradation: Participation in Decision-Making at the Local Level Increased. CLASlite.” Journal of Applied Remote Sensing 3: 1–11. Final report. Washington, DC: USAID. Collier Paul. 2007. The Bottom Billion: Why the Poorest Countries Vietnam Development Report 2011: Natural Resources Management. Are Failing and What Can Be Done About It. Oxford: Oxford University Press. World Bank. 2005. “Forest Institutions and Transition: Experiences and Lessons from Eastern Europe.” ECSSD, World Bank, CyberTracker Conservation. 2007. “CyberTacker Monitoring Washington, DC. Programme.” CyberTracker Conservation, Cape Town. http:// www.cybertracker. ———. 2006. Strengthening Forest Law Enforcement and Governance: Addressing a Systemic Constraint to Sustainable Davies, D. K., S. Ilavajhala, M. M. Wong, and C. O. Justice. 2009. Development. Washington, DC: World Bank. “Fire Information for Resource Management System: Archiving ———. 2008. Forests Sourcebook. Washington, DC: World Bank. 35 Information in this section is drawn from the Finland country study (available at http://www.profor.info/profor/knowledge ———. 2009. Roots for Good Forest Outcomes: An Analytical /information-management-and-forest-governance) and http://www Framework for Governance Reforms. Washington, DC: World Bank. .indisputablekey.com). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 401 Module 15 USING ICT FOR REMOTE SENSING, CROWDSOURCING, AND BIG DATA TO UNLOCK THE POTENTIAL OF AGRICULTURAL DATA JOSH WOODARD (FHI 360), with contributions from MECHTELD ANDRIESSEN (eLEAF), COURTNEY COHEN (aWhere), CINDY COX (IFPRI), STEFFEN FRITZ (IIASA), DREW JOHNSON (TechnoServe), JAWOO KOO (IFPRI), MORVEN MCLEAN (ILSI Research Foundation), LINDA SEE (IIASA) TARAH SPECK (aWhere), and TOBIAS STURN (IIASA). OVERVIEW Virtually all of these paths to offsetting current trends and By 2050, the global population is projected to reach approxi- increasing the growth of agricultural productivity can benefit mately 9 billion. Population growth will be concentrated in from revolutionary changes in how data are collected, gener- poorer countries, particularly the low-income countries of ated, shared, analyzed, and visualized. Agriculture is notori- Sub-Saharan Africa. By some estimates, agricultural produc- ously complex, characterized by wide variation across time and tivity will need to double to meet everyone’s needs for food space in terms of producers, production systems, biophysi- (Foley 2014). For instance, if current trends continue, yields cal conditions, and myriad other variables, at scales smaller of the world’s foremost food crops—maize, rice, wheat, than the smallest plot or larger than multiple agroecologies. and soybeans, which supply roughly two-thirds of calories Advances in information and communication technology (ICT) consumed globally—appear likely to grow significantly more over the past 20 years have enabled individuals to gather, slowly than required to meet the projected global demand in analyze, and share data more effectively, as well as to visual- 2050 (Ray et al. 2013). Some productivity growth will come ize and understand, as never before, what this information from using more of the world’s arable land for agriculture, but means for agriculture. The capacity to capture and analyze most of the available arable land is unevenly distributed, and data has been growing exponentially with the global spread about half of it is found in only seven countries. of relevant ICT tools, including geospatial statistical methods. Big data (the proliferating types and amounts of data being If agricultural productivity is to grow sufficiently to meet collected), together with advanced ICT capabilities (such as the world’s expanding demand for food, producers must be more sophisticated computer processors and algorithms), able to increase yields and cropping intensity (Alexandratos are providing a more accurate understanding of existing et al. 2012), improve the productivity of their livestock, and conditions and generating better predictions of future con- quite possibly diversify their portfolio of economic activities ditions, enabling more informed (often real-time) decision on and off of the farm. At the same time, producers are making. In agriculture, ICT and big data are helping to lever- only too aware of the challenges and risks presented by a age the global engagement of development practitioners, changing climate and growing population pressure. Multiple researchers, scientists, and producers across borders. New approaches are needed to support their efforts, including approaches combining enhanced productivity with environ- those to improve natural resource and farm management, mental sustainability are being developed. to develop better crop varieties and animal breeds, to devise and use innovations in crop and livestock production (such as For example, since the 1990s, commercial producers in high- technologies for precision agriculture or livestock identifica- and middle-income countries have increasingly taken advantage tion and tracking), to generate and share knowledge, and to of precision farming technologies such as global positioning improve access to markets, among others. systems (GPS), geographic information systems (GIS), remote sensors, and satellite imagery to improve productivity (box 15.1). This module was originally written in 2015, with minor revisions in Such technologies are increasingly within reach in low-income early 2016. All content was accurate at the time of writing. economies. In 2005, the median price of a computer was The reviewers of this module were Lyudmila Bujoreanu (World Bank US$1,500 and a GPS device cost more than US$2,000 (Martin Group), Terhi Elisa Havimo (World Bank Group), Holger Kray (World Bank Group), Trevor Monroe (World Bank Group), and Eija Pehu et al. 2005); a decade later, a smartphone with a GPS receiver (World Bank Group). and more computing power than a computer available in 2005 I C T I N AG R I C U LT U RE 402 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING cost less than US$100. The array of sensors in smartphones BOX 15.1. The Intersection of Remote Sensing, has expanded to include barometers and thermometers that Crowdsourcing, and Big Data can collect hyperlocalized weather information. Small-scale pro- ducers with access to mobile phones are beginning to benefit In the United States, the agricultural firm John Deere from improved tools also for networking, decision making, and exemplifies how remote sensing, crowdsourcing, and analysis based on these technologies. big data can be combined to offer farmers precise insights to increase efficiency and productivity. The The same big data sets are used by a wide array of stakehold- company’s online portal pulls in data from farmers’ sen- ers in distinctly different ways. With hyperlocalized weather sors. The aggregated data from thousands of farmers data, for instance: are combined with external data sets (such as weather data) and, powered by big data analytics, used to advise ƒ Farmers can make better planting decisions based on farmers on what to plant on certain areas of their land. more accurate weather predictions and better prepare The system can also predict when machinery is likely themselves to adapt to changing conditions. to break and notify a nearby parts distributor to stock ƒ The Ministry of Agriculture can use more accurate that part. Despite the obvious benefits to farmers, information on local weather patterns and disease and some farmers have questioned whether they should pest populations to tailor the extension messages it be compensated for how John Deere uses their data provides to producers. to enhance its commercial services.a This question ƒ Government agencies responsible for disaster risk needs to be addressed as similar types of services and reduction and response can use this information to the business models that support them are rolled out better allocate resources based on hyperlocalized throughout the world, especially in middle- and low- weather events. income countries where producers have far more lim- ƒ Donors can use this data to design programs that are ited potential to pay for subscription services. better attuned to local needs. Source: Authors. a. Marr 2015. ƒ The private sector can use these data to offer a whole range of services that it could not deliver previously, such as weather insurance for smallholder farmers. Two examples are the Agriculture and Climate Risk BOX 15.2. Visualizing Data Sets for Development Enterprise Ltd. (ACRE) in East Africa and the weather- based crop insurance offered by private insurance The World Bank’s Spatial Agent app enables users to providers in India (Greatrex et al. 2015).1 access global data sets in the public domain and to dis- play the data in a graphic or other pictorial format that Big data analytics makes it increasingly possible to combine makes the implications easier to understand. The Spatial multiple types of data in a single interface, often referred to as a Agent app includes spatial and temporal data from a mashup, which improves the prospects of gaining insights that number of global institutions and is available for free for would not have been accessible before. A growing community Android and iOS mobile operating systems. of scientists and agricultural development practitioners is able Source: Authors. to perform more complex analyses using different types of data generated in very different ways and assembled in global data sets, which are increasingly available to the public (box 15.2). For example, analyses combining data from the World Bank’s Living Standards Measurement Study–Integrated Surveys on Both the public and private sectors clearly recognize the Agriculture (LSMS–ISA) with satellite or aerial images could potential value of investing in big data aggregation and analy- potentially help policy makers to develop a more robust picture sis for agriculture. The agricultural technology sector, which of the challenges facing various types of producers than they includes the ICT applications highlighted in this module, could derive from either set of data alone.2 received more than US$2.3 billion in investments in 2014, surpassing investments in financial technology and clean technology in that same year. The level of investment in 2014 1 ACRE was previously known as Kilimo Salama. 2 To learn more about LSMS-ISA, see http://go.worldbank.org represented an increase of 170 percent over the previous /BCLXW38HY0. year, and this strong growth trend appears likely to continue ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 403 BOX 15.3. Separating the Hype from Reality It is easy to understand why some people are skeptical about the potential of remote sensing, crowdsourcing, and big data to improve the lives of the poorest producers. The reality is that even as global mobile phone penetration rates continue to grow, a significant number of poor producers, especially women, do not own a phone, much less any way of accessing the benefits of remote sensing and big data. To some, these technologies represent a luxury reserved for high-income countries and affluent producers, rather than tech- nologies with practical applications for less thriving economies and producers. There is some truth to that sentiment. The World Economic Forum’s 2014 Networked Readiness Index identifies a number of countries, particularly in Sub-Saharan Africa, that are lagging in leveraging the potential of ICT.a Because advances in some technologies tend to move faster than many can imagine, they may become more readily available throughout the world over the next few years. Smallholders may not actually use remote sensors and big data analytics themselves, yet it is very likely that—at the very least—the institutions that support those producers will be able to access such technologies and use them to benefit the individuals they serve. Policy makers and donors who ignore these factors and simply write off the technologies mentioned in this module as a pipe dream do so at the risk of exacerbating the digital divide. It is important to examine how smart investments can leverage these technologies over the short and long terms to benefit the agricultural sector as a whole and especially poorer producers, many of whom have yet to benefit. This module should be seen as the beginning, not the end, of examining the prospects for applying these technologies, given that their evolution and deployment are so dynamic. Source: Authors. a. Bilbao-Osorio et al. 2014. (Leclerc and Tilney 2015). Notable investments since 2013 of a National Agricultural Information System have included: decision-support tool.3 ƒ The Government of India’s launching of the Digital ƒ Monsanto’s US$1 billion acquisition of the Climate India initiative. Although not specific to agriculture, Corporation, an agriculture analytics and crop insur- it includes a crowdsourcing platform (mygov.in) to ance company that uses weather data (Tsotsis 2013). gather citizens’ feedback. ƒ An investment of US$95 million in Planet Labs, which operates a legion of Earth-imaging microsatel- A strong case can also be made for public investments in lites used by several sectors, including agriculture big data as a public good. These kinds of innovative invest- (Lawler 2015). ments have a strong history of success that includes Landsat, ƒ Qualcomm Ventures’ US$50 million investment into the Global Agricultural Monitoring system, the Famine Early 3D Robotics, a drone manufacturer whose products Warning Systems Network, and ALEXI—and that belies are used, among other things, for precision agriculture skepticism that remote sensing, crowdsourcing, and big data (Burns 2015). analytics can benefit low-income economies and the poorest ƒ Google Ventures’ US$15 million investment in the producers (box 15.3). Given the very large investment required Farmers Business Network, a massive farming data- to support some types of remote sensors and big data ser- base and decision-making tool (Reader 2015). vices, it may be some time before commercially available ser- vice providers find that it pays to target small-scale producers ƒ The £12 million invested by the UK government in in Sub-Saharan Africa and Asia. Deeper analysis may reveal the Centre for Agricultural Informatics and Metrics of particular opportunities for public investment to yield positive Sustainability, which will focus on using big data ana- returns for society—for example, investments in services that lytics to support agricultural development (Crawford are highly likely to improve smallholders’ productivity but rela- et al. 2015). tively unlikely to be commercially viable. ƒ Uruguay’s investment of US$55 million, with support from the World Bank, in the Sustainable Management of Natural Resources and Climate 3 Learn more here: http://www.worldbank.org/projects/P124181 Change Project, which includes the development /sustainable-management-natural-resources-climate-change?lang=en. I C T I N AG R I C U LT U RE 404 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING Key Challenges and Enablers now has over 100 partners from the public and private sectors. The world currently produces a lot of data, and this amount GODAN advocates for open data and open access policies in will continue to grow exponentially over the coming the public and private sectors, as well as for the release and decades. In 2013, the world’s stock of digital data was esti- reuse of data for social, economic, governance, and environ- mated to be around 4.4 zettabytes.4 By 2020, that amount mental benefit.7 Another example is the Open Ag Data Alliance, is expected to increase tenfold, to 44 zettabytes, with launched in 2014 to help farmers access and control their data most of those data coming from emerging markets. Part of “by building an open source framework and a community of that growth is expected to come from data from embedded commercial vendors, farmers, academics, and developers systems, as more and more devices begin communicating upon which the emerging ag data market can rapidly grow.” directly with each other.5 This phenomenon—referred to as Some of the world’s largest agricultural companies support the the Internet of Things (IoT)—enables devices to share data Open Ag Data Alliance, which can potentially serve as a model directly, without a human intermediary, although by 2020 for the types of collaboration required to overcome the chal- the vast majority of data (90 percent) will still come from lenges of fragmented and unusable data.8 humans (IDC 2014). Aside from the technical barriers to using data, there are sig- nificant skill barriers. Many organizations find it challenging Access to data also remains a challenge. Many governments to hire individuals with the right experience to fully harness and organizations, including the World Bank, have promoted the value of data. The information technology research firm open data, yet much of the world’s data remains proprietary Gartner has estimated that 4.4 million jobs would be created or exists in inaccessible formats.6 Despite efforts to promote in 2015 to support big data, but that only one-third of those the opening of data for the public good, significant portions positions would actually be filled due to limited talent within of the world’s digital data are likely to stay outside the realm the industry (Gartner 2012). of public use for some time. Agriculture is no stranger to this challenge. The collection Both the public and private sectors have important roles in and management of agricultural data is often fragmented helping to bridge these gaps in human and technological among government agencies, development practitioners, resources. Public and private educational institutions, with and agribusinesses. Centralized and comprehensive agricul- encouragement from governments where necessary, need tural databanks remain the exception rather than the rule. to be preparing more students to take on the development A recent commentary on data-driven agriculture in Nigeria of next-generation remote sensors and build a robust big notes that “the dearth of information is making it difficult to data analytics ecosystem (figure 15.1 provides more detail translate data into useful information for producers and other on the components of a big data ecosystem). Organizations players in the value chain” (Essiet 2015). and companies will need to provide on-the-job training to ensure that their employees are equipped to use the new While a reluctance to share data sometimes adds to this chal- systems and processes introduced as a result of the trends lenge, it is important to recognize that the problem stems highlighted in this module. largely from barriers related to data standards and the lack of interoperability. Hardware and software systems for collecting Informed consent and fair compensation for data collection agriculture-related data are not all interoperable, meaning that are two other significant challenges. The issue of informed they use incompatible formats. In some instances, standards consent is particularly thorny when data are collected without that would facilitate interoperability between different systems a human intermediary—for example, through a crowdsourc- are lacking as well. Public institutions can play a significant role, ing platform or via a short messaging service (SMS) survey in as they have already done, by promoting the use of open data which participating individuals may not fully read the lengthy sharing and standards. The Global Open Data for Agriculture terms of service that convey this information. The develop- and Nutrition (GODAN) initiative was launched in 2013 and ment community is only just beginning to explore these issues seriously. In late 2014 in Nairobi, for instance, the Responsible Data Forum hosted an event in partnership with 4 One zettabyte is the equivalent of just under 1 trillion gigabytes. Amnesty International on “Consent and Crowdsourcing.” 5 Embedded systems are computing systems within a device, such as a computing system within a refrigerator. 6 Open data are defined as data that are made freely available for use, reuse, and distribution, for any purpose, without restriction. 7 To learn more about GODAN, see http://www.godan.info/about The World Bank’s Open Government Data Toolkit is a good starting /statement-of-purpose/. point for learning more about open data in practice. It is available 8 To learn more about the Open Ag Data Alliance, see http:// for free online at http://opendatatoolkit.worldbank.org/en/. openag.io. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 405 FIGURE 15.1. Example of a Big Data Analytics Ecosystem External ecosystem Customers Data Extended ecosystem providers Data customers Executive sponsor Core ecosystem Data owners End user tools and dashboards Social networks CAO and blogging Rugulators Operational Discovery and Business Data repository: data stores advanced analytics users Big data and EDW tools Internet of things, Analytics Data mobile,car, architect Infrastructure steward and home SME Business applications Data scientist and systems and/or analysts Vendors and consultants Developers Analyst Crowdsourcing Cloud, analytics platform as a service (APaaS), business analtyics as a service (BAaaS) Source: IBM Big Data & Analytics Hub.10 Note: Used with permission. Further permission required for reuse. In examining that topic, participants attempted to address ƒ Can ethics-based and consent requirements be built some of the following questions:9 right into software, or do these responsibilities always ƒ Do organizations that collect and use crowdsourced lie with the organization using the software? information have a responsibility to disclose those ƒ Is consent more appropriate as a precondition for data facts to users? If so, might disclosure affect the collected for “research” versus other purposes? quality and quantity of information collected?10 Not all companies or organizations that offer data-enabled services to farmers are explicit about how they seek informed 9 For details on this event, see https://responsibledata.io/forums /consent-and-crowdsourcing/. The outputs of the event should eventually appear at https://wiki.responsibledata.io/RDF_Nairobi. 10 This graphic originally appeared in the article “Going Beyond Fattah, which was published on the IBM Big Data & Analytics Data Science toward an Analytics Ecosystem: Part 2” by Ahmed Hub Blog on March 14, 2014. I C T I N AG R I C U LT U RE 406 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING BOX 15.4. Monitoring and Evaluating Investments in Remote Sensing, Crowdsourcing, and Big Data for Analytics The monitoring and evaluation of investments in any of the three big data trends covered in this module will vary, depend- ing on the extent of the investment and anticipated outcomes. Even so, the following common indicators of outputs and outcomes are likely to be useful:  Remote sensing ÿ Outputs: Amount of data collected. ÿ Outcomes: Impact of remote sensing on productivity and/or cost.  Crowdsourcing ÿ Outputs: Number of people engaged; number of contributions; amount of data collected. ÿ Outcomes: Impact of contributions on overall outcome being tracked; cost-benefit comparison between crowdsourcing and traditional methods.  Big data for analytics ÿ Outputs: Number of insights gained; number of insights deemed accurate. ÿ Outcomes: Impact of insights on efficiency or cost of overall outcome; changes in policy. Source: Authors. consent from farmers to use their data. Plans for using individu- As the emphasis on using data and evidence on crafting als’ data might be contained in a service agreement that mar- development interventions is relatively recent but growing, ginally literate farmers cannot read or understand. It behooves we have pooled together a few key questions to support the any development practitioner who promotes the use of ICT by monitoring and evaluation of data-centered approaches in farmers to understand exactly how farmers’ data will be used box 15.4. and who owns their data, and in turn to clearly explain these issues to farmers so that they can give their truly informed consent. ORGANIZATION OF THIS MODULE The related question is what rights individuals have to receive The topic notes that follow cover three ICT trends that some portion of the value generated from their data. For are enabling producers, agribusinesses, policy makers, instance, a hypothetical weather service could generate researchers, and agricultural development practitioners to millions of dollars in revenue from the sale of its hyperlocalized optimize resources, connect people, and overcome data weather data. The data that were fed into the service’s algo- fragmentation: (1) remote sensing, (2) crowdsourcing and rithms were crowdsourced from local farmers, who received crowdmapping, and (3) big data for analytics. Although dis- free weather information in exchange for their participation. cussed separately, these trends are interrelated. The first Should those farmers also have some right to compensation two trends are driving the production of massive amounts for the revenue generated by the service, or is the value of of raw agricultural data, and big data analytics is the process free weather information a fair exchange? through which these data is meshed, refined, and analyzed. Each topic note is followed by one or more innovative prac- Resolving these and other questions related to informed con- tice summaries highlighting a particular application or aspect sent, privacy, and ownership rights must be at the center of of the topic at hand. Box 15.5 defines some key terms cov- organizational policy discussions in relation to data collection ered in this module. from crowdsourcing and remote sensors.11 Topic Note 15.1, “Remote Sensing for Sustainable Agriculture,” focuses on the different types of geographi- cal solutions that producers and others in agricultural 11 The book Ways to Practise Responsible Development Data is value chains can use to increase efficiency, reduce waste, a great resource for learning more about responsible data prac- tices. Download it for free at https://responsibledata.io/ways-to and ultimately bring about more sustainable agricultural -practise-responsible-development-data/. practices. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 407 BOX 15.5. Key Terms Used in This Module Remote sensing technologies are used to collect both spatial and temporal data. For comprehensive definitions of the most common types of remote sensing technologies, see Module 5. Crowdsourcing is the process of obtaining data from a large group of people over a digital connection—for example, by broadcasting a call on the radio for farmers to send an SMS to report whether they have experienced any crop failure that season. Crowdmapping is a subset of crowdsourcing. Data collected from a crowd are plotted onto a map using georeferencing, meaning that the data are associated with a particular point on a map. For example, farmers participating in the crowd- sourcing example mentioned above could be asked to include their location in their response so their location can be associated with their response on a map. If farmers respond by SMS, this georeferencing may have to be done manually. If respondents use a mobile app or website combined with the GPS receiver on their phones, their geographical informa- tion can be collected automatically and tagged to the information they supply with a fairly high degree of accuracy (often within a few meters). GPS receivers are available primarily on smartphones and newer feature phones; georeferencing is not possible on basic and older feature phones. Big data analytics has an evolving definition but generally refers to mining and analyzing data for improved decision mak- ing using software and hardware (using complex algorithms and artificial intelligence, for instance) that are much more sophisticated than those used by traditional databases. Some of the techniques used to process big data are defined in Module 5. Source: Authors. Topic Note 15.2, “Crowdsourcing and Crowdmapping: The Topic Note 15.3, “Big Data for Analytics,” focuses on how Power of Volunteers,” focuses on how advances in social all of these agriculture-related data collected globally can be networking and data collection are enabling individuals to mined and analyzed in ways that lead to meaningful insights share hyperlocalized data in ways that have the potential to about how agriculture can be made more sustainable and benefit society more broadly. productive. Topic Note 15.1: REMOTE SENSING FOR SUSTAINABLE AGRICULTURE TRENDS AND ISSUES Since most remote sensors are digital devices, they collect Remote sensing covers a range of technologies, many of a lot of data, and the potential impact of their data can be which are described in detail in Module 5. This topic note enhanced significantly through integration with big data focuses on the types of data collected by remote sensing analytics (see Topic Note 16.3). While remote sensors can devices and on how such data can be used to assist pro- (for instance) be used to monitor crop growth and identify ducers, policy makers, and researchers. In simplest terms, anomalies, the technologies are even more powerful when remote sensing refers to the use of devices to remotely they are paired with systems that can identify issues auto- monitor information from fields, grazing areas, storage matically and offer advice on actions to mitigate them. containers, irrigation plots and alike, and in some cases to Generally speaking, remote sensing devices can be classified remotely take specific actions. For example, remote sensors into three types: ground, air, and space. are integral to precision agriculture, which aims to maximize farming efficiency and minimize waste through data to guide Ground sensors capture data based on circumstances on hyper-localized agricultural practices. the ground. They can be embedded in farm equipment, such I C T I N AG R I C U LT U RE 408 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING as sensors that track yield data, or they can be stand-alone BOX 15.6. The Future of Drones for Smallholders devices, such as soil and water monitors, normalized differ- ence vegetation index (NDVI) sensors, and weather stations. Will drones enable remote sensing to become a less Some of these sensors are controlled by producers them- remote prospect for smallholders? The International selves, although others (portable soil sensors, terrestrial laser Potato Center received a grant from the Bill & Melinda scanners, or weather stations) are managed by a third party. Gates Foundation in late 2014 for local institutions to pilot As mentioned in the overview, farmers also increasingly use the use of drones for remote monitoring of sweet potato smartphones as on-the-ground sensors. The sensors and GPS fields planted by smallholders in Tanzania and Uganda.a receivers embedded in smartphones are making it easier to In addition, new firms such as Raptor Maps in the United collect certain types of climatic and location data. States and CI-Agriculture in Indonesia are combining big data analytics with data from drones and other remote Scientists, including breeders, are also benefiting from a sensors to provide farmers with precise information on new wave of ground sensors. High-throughput plant pheno- their farms. It is too soon to tell whether either firm will typing, for example, uses a combination of spectral imaging succeed, but they are a bellwether of what is to come.b cameras and other sensors to provide data for develop- Source: Authors. a. Quinn 2014. ing improved crop varieties (Fahlgren, Gehan and Baxter b. Lavars 2015; Freischlad 2015. 2015; Thomasson 2015). Aerial sensors consisted until recently of small aircraft armed with tools such as GPS, light detection and ranging IMAGE 15.1. Different Spectral Bands for Satellite (LiDAR) laser sensors, and digital still, multispectral, and Imagery thermal-imaging cameras. Flying low over a field, aerial sensors could obtain high-resolution images capable of pro- Slash pine Jack pine viding farmers with information about weed growth, water Spruce pine stress, and even the locations of anthills (USDA 2005). This Pitch pine type of sensing is out of reach of the majority of the world’s Pine farmers, although it has applications for governments Cedar Spruce and larger agribusinesses. The commercial availability of Fir unmanned aerial vehicles (UAVs, or drones) is removing Evergreen some of the limitations on using aerial sensors and may Deciduous eventually give many more producers, including those in Trees middle- and low-income countries, a cheaper alternative to Minerals aircraft (box 15.6). Buildings Cars Even more removed from the field are space-based satellites. Any ground or aerial sensor that uses GPS relies on satellites to calculate its positioning. Satellites also have a Source: DigitalGlobe. range of other imagers and sensors. Different spectral bands can capture different types of information. For instance, ther- mal infrared can measure surface temperatures, whereas Landsat data). A satellite or a constellation of satellites will also green can be used to assess plant vigor. Spectral bands also vary in the frequency with which complete coverage of the provide different levels of information about specific physical globe can be provided, which in turn affects how frequently objects that are seen. Image 15.1 illustrates how different they capture new data on a specific location. For example, spectral bands provide different levels of granularity about Landsat 8 and Landsat 7 take 16 days to cover the globe. trees, ranging from identifying an object as a tree with pan- Microsatellite firms, such as Planet Labs, on the other hand, chromatic (black-and-white) imagery to indicating what class aim to provide daily coverage of the world’s entire landmass. of tree it is and even identifying the specific species with short wave infrared (SWIR) imagery. In many cases, certain levels of skill and expertise are still required to analyze and make sense of satellite data. This Not all satellites capture data across all spectral bands, and only situation is changing, however. Advances in satellite tech- some satellite data are made publicly available (for instance, nologies and increased competition are making it possible for ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 409 even small-scale producers to receive insights from satellite Possibly other types of basic ground sensors and potentially sensors that are pertinent to their farms, or at least to their even small drones could find their way into the hands of general geographic area, directly on their mobile phones. poor, small-scale producers. In the short term, however, Farmers generally do not access the satellite data directly; it remains likely that most of the world’s farmers will they subscribe to a mobile service that makes use of it. have access to these types of devices at best through an intermediary. For example, coffee farmers in Rwanda can use the WeatherSafe app, which combines satellite and farm- Researchers and policy makers potentially have much to gain specific data, to receive localized weather information and from advances in remote sensing, which should significantly farming recommendations (European Space Agency 2014). increase the amount of precise agricultural data available to While eLEAF, which is based in the Netherlands, uses a them (box 15.7). These data, combined with big data analyt- combination of meteorological and remote sensing data to ics (discussed in Topic Note 15.3), could drive the future of monitor crop growth and water use on farms in real time (see agricultural research and also guide the design of more pre- the innovative practice summary below). Another interesting cise interventions by governments and development orga- example of expanding access to satellite information is the nizations seeking to support specific subsets of producers partnership between the Food and Agriculture Organization (poor smallholders, transhumant livestock producers, women (FAO) and Google to increase the accessibility of its geo- diversifying into horticultural crop production, and so on). spatial tracking and mapping products (Graziano da Silva The potential for increased precision at the farm level to 2016). One recent output from this partnership is the Water improve the efficiency of resource use will be particularly Productivity Open-access Portal (WaPOR), which currently important for the ability of all producers and for all types of has 250m spatial resolution data on agricultural water pro- agriculture to adapt to climate change. ductivity for all of Africa and the Near East.12 Of course, the policy implications of some of these technolo- The trend toward increasingly sophisticated and in some cases gies must be addressed first to ensure that benefits can be miniaturized remote sensors will undoubtedly continue in the gained from them without undermining broader public inter- coming decades, and prices for many of them will almost ests. For instance, many countries have yet to resolve legal certainly continue to fall. It is estimated that the precision issues related to the use of personal drones for agriculture. farming market will see a compound annual growth rate of Some have opted to control personal drone use from a public over 13 percent from 2015 through 2022 (BIS Research 2014). nuisance perspective, while others approach the issue from a national security perspective. Many governments also It is important to understand that even though remote sens- restrict the use of satellite imagery. Until recently, the U.S. ing technologies are becoming more accessible, access to government restricted the sale of satellite images at resolu- those technologies will not be distributed evenly. The major- tions sharper than 50 centimeters. Those restrictions have ity of producers, especially smallholders, are likely to benefit been eased somewhat, and now black-and-white images from remote sensors that are built into or are accessible up to 25 centimeters in resolution and color images up to via mobile phones, although their use will depend partly on whether producers have access to smartphones capable of using the technology. GSMA Intelligence calculated BOX 15.7. Advances in Remote Sensing that 43 percent of people in developing countries owned a mobile phone in 2014, a figure that they expect to grow to At the ICT for Ag conference in Washington, DC, in only 55 percent by 2020. Over that same period, however, 2015, presenters noted that a couple of trends in remote GSMA anticipates that smartphone ownership will grow sensing for agriculture could greatly unlock the value of from around 25 percent to over 60 percent.13 Those trends their data (Zoltner 2015): are both positive but clearly show that significant portions of  Free and open source platforms for interpreting the population will remain without direct mobile access. the data are becoming more available.  High numbers of low-cost sensors can match the 12 WaPOR can be accessed online at http://www.fao.org/in-action accuracy of high-end sensors through a greater /remote-sensing-for-water-productivity/database/database- number of data points. dissemination-wapor/en/. 13 Accessed on https://gsmaintelligence.com/. All data © GSMA Source: Authors. Intelligence 2015. I C T I N AG R I C U LT U RE 410 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING 1 meter in resolution may be sold to non-U.S. customers use it. In turn, FAO will train its staff and technical experts in (Ferster 2014). member countries on how to use this technology (Graziano da Silva 2016). Measuring the impact of remote sensing for sustainable agri- culture depends entirely on the type of sensing that is used Expand the Capacity to Interpret Data and its purpose. Broadly speaking, though, farmers using The next step beyond understanding how to use remote remote sensors are anticipating seeing improvements in pro- sensing tools is to understand how to interpret the resulting ductivity and/or reductions in costs, not to mention a reduction data and translate those insights into action. The data tend to in negative effects on the environment. be highly technical and potentially difficult for someone with a basic level of education to understand. Any remote sensing tool that aims to benefit such producers will need to closely LESSONS LEARNED consider this reality during its design. Until recently, even in high-income economies, full use of the spectrum of remote sensing technology required tens Ensure Interoperability and the Adoption of Standards of thousands of dollars in investment, meaning that large numbers of farmers often could not benefit. In low-income A major impetus for creating the Open Ag Data Alliance was countries, producers’ use of remote sensing remains in an the lack of interoperability between precision agriculture extremely nascent phase. The world is embarking on a new technologies and data standards. The Open Ag Data Alliance era of more affordable remote sensing, however. In moving was particularly concerned with the fragmentation of data forward, policy makers, researchers, and practitioners can across the different devices and platforms used by a typi- benefit from applying some lessons gained from using these cal U.S. farmer.14 The lack of application program interfaces technologies to date. (APIs) connecting different software applications prevented producers from easily seeing all of their data in one place. As development organizations begin to promote the use of Clarify Legal Limbos remote sensing technology among producers, especially Precision agriculture technologies, including remote sensing, disadvantaged producers, it is crucial to avoid these pitfalls will remain on the cutting edge of technological capabilities by partnering with providers that adhere to open standards for some time. As new technologies emerge or previously and interoperability—or to encourage providers that do not restricted technologies are made commercially available, adhere to open standards to do so. governments will need to move quickly to address any legal issues that could impede their use. The legal uncertainty Strike an Appropriate Balance between Privacy surrounding drones is the current case in point, although and the Public Interest undoubtedly other technologies will find themselves in the This lesson is explored in more detail in the Lessons Learned same situation. section of Topic Note 16.3 on big data. In short, while access to all of the hyperlocalized data generated by ground and Expand Digital Literacy aerial sensors could be of huge value to researchers, it may Remote sensing relies on a variety of digital hardware and not be in producers’ best interest to share those data. While software. Producers, especially poor producers, will benefit providers of remote sensor software may embed their right from these tools only if they understand how to use them. to sell user data to third parties in their terms and condi- Fostering digital literacy is potentially no small feat, and may tions, practitioners should ensure that producers are asked require continuous training and support for some groups for explicit informed consent to do so. In some cases, this of producers. In the short term, since many producers approach will mean resisting the temptation to enable indi- will not have direct access to remote sensing tools, there viduals to opt in by default in order to ensure a rich data is an opportunity to acquaint them with these tools via an set. At the same time, researchers, practitioners, and policy intermediary, such as an extension agent or lead farmer. makers should promote strong data privacy standards to One such example of strengthening intermediary capacity comes from the partnership between FAO and Google men- tioned earlier. As part of that partnership, 1,200 FAO staff 14 Two figures on the Open Ag Data Alliance website clearly illus- trate the current disconnectedness of remote sensing systems and partners will receive trusted tester credentials on the and the envisioned future interoperable state; see http://openag Google Earth Engine, as well as receiving training on how to .io/about-us/principals-use-cases/. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 411 protect the personal data of producers, including their farm- Union Sentinel satellites in 2015, resolutions as high as or enterprise-specific data. In some instances, it may be 10 meters are within reach. The lower-resolution data can necessary to explore standards that promote unlinking farm- be used for monitoring large areas at a regional or national related data from exact geographic coordinates—providing scale, such as entire river basins. The higher-resolution data them at the village or district level instead—to balance pro- allow identification of individual fields to monitor crop growth ducers’ interests in protecting their specific farm data with changes on individual farms. researchers’ and policy makers’ desires for access to some level of aggregate information to use in their research and Using eLEAFs FieldLook-platform, individuals can access decision making. a range of PiMapping data, including biomass produc- tion, evapotranspiration, transpiration, evaporation, bio- mass water productivity, leaf area index (LAI), NDVI, and INNOVATIVE PRACTICE SUMMARY fractional vegetation cover (FVC). In addition, by delivering Using Multispectral Satellite Images and Energy both historical and real-time data, users can use PiMapping Surface Balance Models to Calculate Crop and data to monitor changes over time as well as to check on Water Productivity current conditions.15 The Netherlands-based firm eLEAF has developed a series In Sudan, the Hydraulics Research Center (HRC), with fund- of algorithms that use a combination of meteorological and ing from CTA, used eLEAF’s technology to monitor the remote sensing data to monitor crop growth and water use Gezira Irrigation Scheme, which is one of the world’s largest on farms in real time. A technology called Pixel Intelligence Mapping (PiMapping) delivers data at a range of spatial reso- lutions (image 15.2). Widely used are 250-meter data and 15 Information taken from eLEAF’s Company Profile on its website 20–30-meter data; however, with the launch of the European (http://www.eleaf.com/) and confirmed by eLeaf staff. IMAGE 15.2. Examples of Low- and High-Resolution Pimapping Data Source: eLEAF. Note: Images are used with permission; further permission required for reuse. On the left: Evapotranspiration in mm/year for the entire Nile Basin at a resolution of 250m; on the right: 30m resolution biomass production makes growth variations within individual grain fields visible in South Africa. I C T I N AG R I C U LT U RE 412 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING irrigation schemes. Specialists from HRC used the data to Helpful resources send registered farmers SMS notifications to let them know ƒ Remote Sensing Technology Trends and the best time to irrigate their fields and to apply fertilizer. The Agriculture, https://dg-cms-uploads-production service was piloted with 44 farmers during the 2014/15 plant- .s3.amazonaws.com/uploads/document/file/31 ing season. All of the farmers increased their productivity as / DG-RemoteSensing-WP.pdf. a result of participating in the pilot. One farmer, for instance, ƒ International Society of Precision Agriculture, saw wheat production increase to 12 sacks per acre, up from https://www.ispag.org/. 3 sacks per acre in the previous year (CTA 2015). Topic Note 15.2: CROWDSOURCING AND CROWDMAPPING: THE POWER OF VOLUNTEERS TRENDS AND ISSUES From a data collection perspective, crowdsourcing can be This topic note explores how volunteers are contributing combined with georeferenced data (often referred to as agricultural data to larger and broader data sets, as well as crowdmapping), which often come from GPS coordinates helping to ground truth the accuracy of maps and underlying collected via a mobile phone—although, in some cases, the data sets. It explores the implications of this practice for indi- location is reported by the respondent. Through this pairing, vidual producers as well as for implementers, researchers, an individual with access to the data can see exactly where and policy makers. In particular, it provides a perspective on in the world these data came from. Another advantage is that how organizations are capitalizing on ICT-enabled approaches because these data can be processed in real time by data col- to collect data from a wider population than would have been lection platforms, the parties collecting the data can access feasible using traditional data collection methods, such as them almost immediately. The only delay occurs when data surveys conducted by enumerators. The note also examines are input into a mobile data collection tool in offline mode, how organizations are using those same ICT applications to when the phone is out of network range. In those instances, share insights gleaned from analysis of the raw data with the the data will not be synchronized to the main database until respondents who provided that data. the phone is connected to the Internet again. The term “crowdsourcing” was coined in Wired magazine Crowdsourcing can also be used in combination with in 2006 but its origins may date as far back as the early geospatial images, calling on the power of the crowd to 18th century, when the British government put out an open help identify changes to a specific location. For example, call to find a reliable method to calculate the longitude of DigitalGlobe released images before and after Typhoon a ship (Dawson and Bynghall 2012). Crowdsourcing in the Haiyan struck the Philippines in 2013. The images covered modern sense of the word tends to refer to information that 100,000 kilometers. More than 4,600 individuals tagged is collected or tasks that are performed by a large group of over 400,000 items, including 143,155 damaged buildings people, often in different locations, via some form of digital and residences.16 This example is not specifically related to device (such as a computer or mobile phone). Crowdsourced agriculture, but it clearly demonstrates the power of crowd- data are collected primarily via SMS, websites, mobile apps, sourcing and crowdmapping. social media, email, and voice calls. In the context of devel- opment, crowdsourcing’s rise to global prominence can per- It is easy to see why this approach would appeal to anyone haps be dated to early 2008, when a group of technologists who needs data from a wide geographic range. Unlike tra- and activists developed a platform, dubbed Ushahidi, to track ditional data collection methods that require enumerators, outbreaks of violence in postelection Kenya. Ushahidi was not the first use of crowdsourcing in development, but the international attention it garnered helped many more people 16 To learn more, see https://www.digitalglobe.com/sites/default/files to realize the potential of this approach. /Crowdsourcing-DS-CROWD.pdf. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 413 often using paper forms, to be on the ground, crowdsourc- spread and take action accordingly. In 2012, Zambia’s ing enables the collection of data from a significantly larger Disaster Management and Mitigation Unit created a number of individuals, across a broader geographic area, crowdmap to track armyworm sightings, which could in much less time and for less money. Crowdsourcing be submitted by SMS or voice calls using a short services can also be designed to be bidirectional, giving code. Given this information, the government was individuals, even if they have not contributed data, near- able to target resources and contain the outbreak instantaneous access to the aggregate data and analysis. (Silversmith and Tulchin 2013).19 A similar approach This immediacy is a positive shift from traditional methods was used in Uganda to monitor banana bacterial of data collection, whereby it took months for data col- wilt using Ureport, an SMS-based polling service lected from communities to make it back to those com- (Bujoreanu 2013). munities, if at all. ƒ Collecting local weather information. For weather forecasts to be useful to producers, they need to Crowdsourcing is predicated on the fact that the target be hyperlocalized to their farms. Traditional weather population has some form of digital connection—most forecasts, based on a blend of satellite data and likely via a mobile phone. As discussed in the overview, ground-based weather stations, generally cannot the reality is that only slightly more than two-thirds of provide that level of specificity. The next generation the world’s adult population owns a mobile phone.17 Nor of weather forecasts is taking advantage of sensors does simply owning a phone mean that an individual will built into smartphones to collect extremely localized use it to provide information to a crowdsourcing initiative. weather information. Apps such as PressureNet, Differences in literacy, numeracy, and digital literacy all Sunshine, and WeatherSignal all provide such ser- affect the ability to use a mobile phone effectively. Users vices, although primarily for urban users. Eventually, also need access to sufficient electricity18 to keep a phone these types of services will be practical for most charged and sufficient income to purchase airtime to keep smallholders. the phone number active. ƒ Collecting market prices. Market information services (MIS) have long relied on enumerators Given these variables, the feasibility of crowdsourcing will reporting daily prices for select markets. Services like depend on the local context. It is also important to be mind- AGROAM are experimenting with the possibility of ful of those without access to ensure that their opinions or indirectly crowdsourcing market prices by offering a inputs are included—or that if they are excluded, those limita- buyer-seller matching service. By taking an average tions of the data are clearly stated. of what prices are paid for specific crops in specific areas, they are able to provide a snapshot of actual Assuming that the local context is conducive to crowd- market prices. This method is highly dependent on sourcing, the approach can be used in agriculture in a num- volume, since low volumes of transactions for certain ber of ways. Some of the most likely uses are as follows: crops or in certain areas could skew the actual mar- ƒ Tracking pest and disease outbreaks. Delays in ket price average. Esoko is doing something similar traditional pest and disease reporting often prevent with its MarketPlace app, taking price data from the authorities from taking decisive action to contain purchases made through the system to show price outbreaks. By crowdsourcing information on the trends over time. incidence of pests and diseases, governments and ƒ Facilitating access to markets. Among a number of researchers may identify outbreaks before they other mobile services, the Connected Farmer Alliance, highlighted in the innovative practice summary below, is using mobile phones to enable smallholder farm- 17 This figure was roughly calculated at 69 percent as of June 1, 2015, ers to market their produce to prospective buyers in based on total unique mobile subscribers from GSMA Intelligence divided by the total global population over the age of 15, which Kenya, Tanzania, and Mozambique. was calculated from the Population Reference Bureau’s 2012 data ƒ Agriculture knowledge sharing. Agricultural knowl- and U.S. Census Bureau data. As young people under the age of edge has actually been crowdsourced for decades, 15 do own mobile phones, this estimate is likely to be higher than the real number of adults with mobile phones. 18 Some estimates state that by 2030, almost 900 million peo- ple globally will still lack access to electricity (Practical Action 19 The crowdmap from that outbreak can be found at https:// 2012). armyworms.crowdmap.com/main?l=en_US. I C T I N AG R I C U LT U RE 414 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING in the form of radio call-in programs on which farm- ƒ Monitoring food security. The UN Global Pulse has ers direct their questions to experts. With mobile used numbers of tweets to track inflation in the rice phones and social media, new channels are available price (Crimson Hexagon 2011). Although this type of for individual producers to pose questions and receive social media sentiment analysis may not always be responses from experts as well as their peers. One effective for determining whether changes in food example is the Awaaz.De interactive voice response security are occurring, it is an area worth further platform, which has been used by organizations exploration. in India to provide agricultural information to farm- How the success of a crowdsourcing initiative is mea- ers. The service allows callers to record questions sured will vary depending on how and why crowdsourcing for experts to respond to, listen to questions and is being used. At the output level, the number of people answers from others, and also to record their own engaged in the crowdsourcing effort and the total number responses to questions. of contributions made can be tracked. At the outcome ƒ Facilitating land administration. Indigenous level, two key indicators can help to measure the suc- communities in some parts of the world have fallen cess of a crowdsourcing initiative. The first is the impact victim to land grabs by outsiders because they have of crowdsourced contributions on the overall outcome not been able to demarcate their traditional rights to being tracked. For instance, if the overall project aims to land on a map. The Rainforest Foundation UK has increase farmers’ knowledge of a particular topic, what, if been helping communities in the Congo River Basin any, changes to that indicator can be attributed to farmers’ use GPS-enabled mobile phones to map the land access to crowdsourced resources? Another method of that they use for hunting and gathering. Module 14 measuring outcomes is to compare the cost versus ben- contains more information on crowdsourcing for land efit of crowdsourcing and traditional methods. When using administration. crowdsourcing to conduct research, ask how the cost of ƒ Crop and livestock monitoring. One method for crowdsourcing and the benefit derived from it compare to crowdsourcing crop and livestock data is to ask the costs and benefits of traditional methods of conducting producers to submit information about the crops research. that they are growing and their livestock numbers. Results of such efforts have been uneven. For instance, the Mauritius Breadfruit Sector Consortium LESSONS LEARNED tried to map all of the island’s breadfruit trees with less than impressive results—fewer than 70 out of It is easy to get excited about crowdsourcing. This approach an estimated 3,000 trees were mapped (Hosenally potentially facilitates engagement with a large and dispersed 2012). A more globally focused example, high- audience, often at a fraction of the cost of traditional meth- lighted in the innovative practice summary below, is ods of engagement, and can deliver information in near-real Cropland Capture, a game developed by Geo-Wiki time. that shows players a satellite image and asks them As great as all of this sounds, experience from the field whether they see any cropland (Gustafson 2013). reveals some challenges in using crowdsourcing effectively. ƒ Conducting research. As noted, the proliferation Thankfully, good practices are emerging from the experiences of mobile phones offer researchers opportunities of practitioners, including lessons on specific challenges and to survey farmers without sending enumerators to specific actions that can be taken to mitigate them. meet them in person. Short polls can be conducted via SMS, while voice, mobile apps, and websites can be used for longer polls, particularly those requiring Data Quality qualitative responses. GeoPoll’s Food Security Service Since crowdsourcing tends to entail the collection of is one example of a service that crowdsources data information from people who are not experts on the sub- for research. The service has a database of 200 mil- ject, the likelihood of error is perhaps higher than what lion users in roughly a dozen countries and currently one might expect from data that are input by trained offers surveys to capture data on two indicators: enumerators. Sometimes participants can be intention- Food Consumption Score (FCS) and Reduced Coping ally misleading; for example, AGROAM, which shares Strategies Index (rCSI). market price information, encountered individuals who ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 415 were deliberately trying to game the system for their own users placed some trees in the sea or in the middle of the benefit (Conor 2014). street (Hosenally 2012). One approach to reducing data input errors is to design Understanding users in advance will help to mitigate this and test the platform rigorously with the target audience challenge to some extent. Designing a platform or service to ensure that the platform is intuitive and easy for them to aligned to users’ current capacity, as opposed to one that use. Methods such as user-centered design can be helpful depends on massive amounts of user training, is always for doing this. IDEO.org’s Field Guide to Human-Centered preferable. It will rarely be possible or cost-effective to train Design is a great resource for learning how to employ this large amounts of people to use the platform. It also helps to approach. design checks into the platform to catch errors and notify users of the correct way to do something. It is a bit more complicated to protect against people who are gaming the system or simply sharing incorrect informa- tion that they believe to be true. This issue is truly a chal- User Interest/Incentive lenge only when the number of contributors is small. With Crowdsourcing initiatives can succeed only if they attract a a large enough pool of contributors, such outliers can be sufficient number of people to participate. Limited participa- identified and discarded—assuming that there are no large tion will likely yield data of limited value for analysis. If users group biases. For that reason, the best protection against see no value in contributing, they are less likely to do so. gaming is to have a large pool of contributors who can vali- In some cases, users may have an inherent interest to con- date and crosscheck each other. Some technology providers tribute. In other cases, some level of incentivization may be have also developed algorithms to determine the reliability of necessary. The incentive can be something as basic as offer- contributors in order to weight inputs, such as DigitalGlobe’s ing points and badges in some cases, although it may also CrowdRank. extend to small financial rewards, particularly if contributors need to use their own airtime to participate. Younger, more During the design phase, it is advisable to think about all of tech-savvy producers may also be more likely to participate the reasons why someone would submit false or incorrect than older producers. data so that checks can be devised for them. Devising a clear data verification process will also help to mitigate data quality Again, start by developing an understanding of the target issues. users. What are their interests? What are their needs? What might incentivize them to participate? The Field Guide to Human-Centered Design has good activities for learning Accessibility about users, both in the mainstream and at the extremes, Because not everyone has access to mobile phones or the to design incentive systems and marketing campaigns Internet, a subset of the population will probably be excluded appropriately. from any crowdsourcing initiative. The issue of limited acces- sibility is not one that any single project will be able to fix. At Protecting Privacy a minimum, however, it should be possible to learn about and understand the access of the target audience. Remember Since individuals will be asked to share information, it is to ask such questions as: What groups of people have less important to consider how their privacy will be protected. access than others? How dependable is people’s access (to Privacy becomes an even more important issue when crowd- electricity, network coverage, airtime)? How can access be sourced data are georeferenced and can reveal where people extended to those without it (e.g., can the project promote live. When using a third-party provider, be clear on how they device sharing)? use the data as well. The U.S. Federal Trade Commission report, “Protecting User Capacity Consumer Privacy in an Era of Rapid Change: Recommendations Participants need to know how to use the crowdsourcing for Businesses and Policy Makers,” is a useful resource for platform or service properly to input data. In the Mauritius starting to consider these challenges. Questions to ask, par- breadfruit mapping initiative mentioned earlier, one of the ticularly when working with third-party providers, include: main reasons for people’s failure to contribute was their How will the provider secure disaggregated data? Will the limited ICT skills. Limited skills also reduced data quality, as provider sell data to other parties? If so, how will the provider I C T I N AG R I C U LT U RE 416 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING notify users that their data are being sold, and will users be create a better ecosystem for mobile services in the agri- compensated in some way? cultural sector, affecting production throughout the supply chain. Unintended Consequences One of the benefits of crowdsourcing is its potential to democratize data and increase transparency, yet it is also pos- Data Generation sible that the data can be used for nefarious purposes. For One of the main focus areas of the Connected Farmer example, an unscrupulous government or company armed Alliance involves enterprise solutions that enable enterprises with detailed information about a marginalized community to better source from small farmers and allow farmers bet- might be able to use that information to take advantage of ter access to markets. The data are gathered and distributed them. It is not farfetched to imagine a scenario in which small- through a suite of modules, including a registration module holder farmers who have reported higher-than-normal pro- allowing an agent of an enterprise to register a farmer who ductivity via a georeferenced crowdsourcing campaign find supplies a particular type of produce. Farmers may also regis- themselves in the sights of land grabbers (McLaren 2015). ter themselves as suppliers. In this way, the service enables the remote gathering of crowdsourced data to identify who It is difficult to think about what types of unintended conse- and where farmers are and what types of crops they pro- quences might arise. That said, it is important to try to iden- duce. The data are highly structured. They are referenced tify potential risks, such as the misuse of any data that are temporally and spatially and clearly identify individuals so made available, and to develop mitigation strategies based that participating enterprises can distinguish specific farmers on the likelihood of those risks occurring. and their products. The typical participating enterprise is a mid-sized national company that sources produce from small Helpful resources farmers and seeks more detailed data and interaction with ƒ Ushahidi Toolkits include a wealth of advice and guid- available suppliers. ance, including 10 questions to ask before starting a crowdsourcing initiative see https://wiki.ushahidi.com Building upon the crowdsourced supplier data are a series /display/WIKI/Ushahidi+Toolkits of additional modules, including two-way communication ƒ Crowdsourcing Applications for Agricultural Development that enables enterprises to share information with, or sur- in Africa, http://pdf.usaid.gov/pdf_docs/PA00J7P7.pdf vey, farmers. A receipting module, integrated with M-PESA ƒ ICT Update: Crowdsourcing and engagement, http:// (a mobile money service), allows enterprises to send wayback.archive-it.org/3908/20150511072324/http:// receipts and pay farmers at the point of sale, identifying the ictupdate.cta.int/(issue)/69 time, price, and volume of the purchase, which increases transparency. Another module allows enterprises to offer short-term loans through M-PESA, enabling cash advances INNOVATIVE PRACTICE SUMMARY that are later deducted from payments for produce. The Crowdsourcing Supplier Data via Mobile Phone enterprise can use the data generated through the regis- The Connected Farmer Alliance is a public-private partner- tration and receipting modules to assess farmers’ credit- ship between Vodafone, the U.S. Agency for International worthiness, something that was not previously possible for Development (USAID), and TechnoServe focused on the majority of agribusinesses. A tracking module enables promoting commercially sustainable mobile agriculture enterprises to better track collection processes and points to services for smallholder farmers in Kenya, Tanzania, and streamlined product collection. At this time, the size of the Mozambique.20 The Alliance pilots initiatives aiming to crowdsourced data set does not yet approach big data, but Vodafone is bringing this first suite of modules to commercial markets for much broader deployment. 20 This innovative practice summary originally appeared in the World Bank’s report Big Data in Action for Development. The original case study can be found on pages 39–41 of that report, which is available at http://live.worldbank.org/sites/default/files/Big%20 Data Interpretation Data%20for%20Development%20Report_final%20version.pdf. Vodafone works with its subsidiary, Mezzanine, on the It was slightly updated for this module based on inputs from Drew Johnson, interim regional program director of the Connected development and management of the data collection plat- Farmer Alliance, which were provided in February 2016. form, which is locally hosted in the Kenyan, Tanzanian, and ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 417 Mozambican markets and protected by high-level security one of the main challenges with current global land cover mechanisms. Data are available only to the enterprise and data sets—the large discrepancies between them. The participating farmers. For the surveys, enterprises receive project asks a network of volunteers to help identify, only aggregated responses, not individual records. Vodafone among other things, human impact in satellite imagery of is working with enterprise customers on the most conve- land cover (see image 15.3). nient way for farmers to submit data while ensuring confi- A good understanding of the location of the world’s cropland dentiality for them and for businesses. The details of data is important for a number of reasons, including identifying privacy will be governed by Vodafone’s data privacy policies where the best investments could be made to increase to ensure ongoing protection. production (Gustafson 2013). The good news is that experts are not needed to identify cropland accurately, as research Within the Connected Farmer Alliance partnership, by IIASA has revealed. A comparison of 53,000 data points TechnoServe is charged with analysis and interpretation input by experts and nonexperts found that the nonexperts of how the modules are performing for the enterprises were just as good as experts at identifying human impact and farmers. Insights are currently being gathered (specifically, cropland) in satellite images (See 2013). A com- through traditional survey methods. Those methods parison of the accuracy of crowdsourced cropland maps to include assessing goals for the participants at the outset three major cropland maps (GLC [Global Land Cover]-2000; of the project, determining areas of measurement, and Moderate Resolution Imaging Spectroradiometer, MODIS; collecting input through questionnaires during the process. and GlobCover) in Ethiopia found the crowdsourced data to Additionally, the Connected Farmer Alliance supports be the most accurate (See et al. 2013). enterprise partners in their own data analyses of informa- tion and outcomes. IMAGE 15.3. Screenshot of Cropland Capture Insights for Action Although enterprises are just starting to adopt the technol- ogy, some insights are emerging into the benefits of the modules. Farmers who receive M-PESA for loans and pay- ments reduced their costs by avoiding expensive, time-con- suming, and risky trips to the enterprise office to collect cash. The receipting module has reduced the costs of enterprises by increasing their operational efficiency and transparency. A key benefit of mobile solutions for farmers is the increased access to information. It is difficult to make generic con- tent services meaningful to small farmers whose local realities may vary significantly within a distance of just a few kilometers. The targeted information flow permitted by the two-way information module appears to provide information that is particularly relevant to the stakeholder farmers and to enhance the face-to-face interactions among farmers and enterprises. INNOVATIVE PRACTICE SUMMARY Combining Gaming and Crowdsourcing to Identify and Monitor Cropland The Geo-Wiki project was established by the International Institute for Applied Systems Analysis (IIASA), the Source: Geo-Wiki Project. University of Applied Sciences Wiener Neustadt, and the Note: Used with permission. New request for permission is required if image University of Freiburg (Germany) in 2009 to try to address is reused. I C T I N AG R I C U LT U RE 418 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING With this information in hand, Geo-Wiki launched a The game was launched in 2013, followed by 25 weeks of mobile and Web-based game called Cropland Capture that competition rewarding the top three players of the week with transforms anyone in the world into a citizen scientist. prizes to incentivize participation. Although the game is still The concept is quite simple. Players of the game are available for download, the lessons learned from the game shown an image and asked if it shows cropland at a certain have been used to develop a more generic version of Cropland site (answering “yes,” “no,” or “maybe”) (figure 16.4). Capture called Picture Pile, which is being used to gather infor- Images contested by players are sent to an expert to mation on evidence of deforestation.21 make the determination. The resulting crowdsourced data have been used to create a new global cropland map that 21 More information on Cropland Capture is available at http://www Geo-Wiki hopes will be more accurate than other available .geo-wiki.org/oldgames/croplandcapture/. Picture Pile can be sources. found at http://geo-wiki.org/games/picturepile. Topic Note 15.3: BIG DATA FOR ANALYTICS TRENDS AND ISSUES As mentioned in the overview, no widely accepted standard It is perhaps only mildly hyperbolic to state that big data will definition of big data exists, although many people talk about big have a dramatic impact on the 21st century economy. In 2014, data as having the following characteristics, referred to as the the big data market generated more than US$27 billion in rev- “3 Vs,” defined in 2001 by analyst Doug Laney (Laney 2001): enue from the sale of hardware, software, and professional ƒ Volume refers to the sheer volume of digital data services. Within the next 10 years, it may generate more than being produced globally. US$80 billion in global revenues (Kelly 2015). Even that figure pales in comparison to the potential revenue that might be ƒ Velocity refers to the speed at which data can be generated and costs saved from the application of big data. captured and analyzed. The McKinsey Global Institute, for instance, estimated in 2011 ƒ Variety refers to all of the different types and formats that big data could have a value of more than US$1 trillion of data being produced. annually from just three sectors: the U.S. health care system, European public sector administration, and personal location Since then, some people have opted for additional Vs. data (McKinsey Global Institute 2011). For instance, SAP Business Innovations has added veracity, which refers to the quality of the data, and value, which refers to the potential business value derived from it (Saporito 2014). Within the next five years, big data will become the norm, enabling a new horizon of personalization for both Figure 15.2 shows the full life cycle of data from creation to products and services. Wise leaders will soon embrace consumption. Numerous types of digital devices and software the game-changing opportunities that big data affords amass data from a variety of places, including individuals, the for their societies and organizations, and will provide the public sector, and the private sector. Data can be volunteered necessary sponsorship to realize this potential. Skeptics (explicitly shared), observed (captured by recording actions, and laggards, meanwhile, look set to pay a heavy price. such as Web browsing history or call detail records, CDRs), or —“Big Data Maturity: An Action Plan for inferred (based on an analysis of volunteered and/or observed Policy Makers and Executives.” Chapter 1.3 data) (World Economic Forum 2011). The data are stored and in The Global Information Technology Report aggregated by a range of entities, including websites, mobile 2014 (World Economic Forum and INSEAD). network operators, and development organizations. The next step is analysis, which is sometimes done by the same enti- This topic note examines how agriculture could make use of big ties that store and aggregate the data and sometimes by third data and discusses what has been learned so far. Topic Notes parties. A growing number of companies offer what is known 16.1 and 16.2 focus on sources of data—remote sensors and as BDaaS (Big Data as a Service). These providers offer crowdsourcing—whereas this topic note focuses on how all of access to analytics tools and services for a fee, as opposed these data can be more effectively analyzed and acted upon. to firms that sell insights based on analysis they conduct. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 419 FIGURE 15.2. Life Cycle of Digital Data Source: Bain & Company.22 Note: Used with permission. New request for permission is required if image is reused. The last step in the chain is the consumption of the insights ƒ Early warning—analyzing data in order to, for and intelligence gleaned from big data analytics; the consum- example, identify disease or pest outbreaks before ers can include governments, businesses, researchers, and they spread. sometimes even individuals. ƒ Forecasting—using big data tools to predict future Broadly speaking, big data can be used to support six areas trends, such as prices for specific crops in specific areas. with potential applications in agriculture: ƒ Financial services—using big data to overcome bar- riers to providing credit and insurance to people who ƒ Awareness—learning that something is happening by lack access to such financial services (for instance, using sentiment analysis to identify potential trends small-scale producers with no credit history and in people’s opinions or concerns. For example, as limited collateral). Big data could potentially transform mentioned, the UN Global Pulse roughly tracked the credit and insurance models by drawing in many more inflation of the price of rice in Indonesia by analyzing data sources about producers, their farm or other tweets on Twitter. enterprise, the climate, and other factors. For example, ƒ Understanding—learning why something is happen- GroVentures has aggregated and analyzed dispersed ing, such as why food prices have risen or why water data sets from several dozen countries, enabling busi- shortages have arisen. nesses to evaluate risk more effectively, resulting in ƒ Advice—providing targeted and specific advice, based more affordable crop insurance (World Bank 2015).22 on big data, to individual farmers based on their cir- cumstances, or to decision makers based on a wider 22 This figure originally appeared in the report “Personal Data: The geographic area to enable them to make more data- Emergence of a New Asset Class,” which was prepared by the driven decisions. World Economic Forum and Bain & Company in January 2011. I C T I N AG R I C U LT U RE 420 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING Some of these applications of big data will benefit producers Grameen Foundation’s Community Knowledge directly, while others have the potential to help researchers Worker program, in partnership with Palantir, devel- and policy makers form recommendations and policies that oped a platform that enables them, among other will shape the future of farming in the face of climate change, things, to understand the link between the applica- increasing population, yield lags, demographic shifts, and tion of good agronomic practices (GAP) and farm depleting natural resources, among other challenges. productivity (World Bank 2015). Box 15.8 describes studies of prospective applications for ƒ Predictive analytics uses predictive modeling to antici- big data in Senegalese agriculture. pate what will happen next based on past and current data. Back in 2007 agricultural consultancy firm Making sense of the data for these purposes requires spe- Lanworth, now part of Thomson Reuters, was able to cific analytical tools and methods. The five most common predict the volume of the U.S. corn crop with relative types of big data analytics are23: accuracy, using a mix of data including satellite images, weather forecasts, soil maps, crop conditions, and ƒ Descriptive analytics, the most common and widely rotation patterns. In contrast, the U.S. Department of used form of analytics, tells what has happened in Agriculture, which used old-fashioned farmer surveys, the past and what is happening now. An example overestimated that year’s crop (Paynter 2008). in agriculture is Esoko’s MarketPlace service, which provides historical price trends of crops. ƒ Prescriptive analytics takes the trends identified in predictive analytics and recommends potential courses ƒ Diagnostic analytics help explain why something of action and their likely outcomes. It uses simulations, has happened. This form of analytics includes localized rules, and decision logic to identify options. the analysis of correlations and relationships in For example, in Colombia, the International Center data to better understand causation. For example, for Tropical Agriculture (CIAT) and the Colombian Rice Growers Federation (FEDEARROZ) developed a com- BOX 15.8. Big Data for Agriculture in Action puter model including an artificial neural network24 that incorporated 10 years of agricultural data, seasonal In 2014, Sonatel and Orange Group made anonymized forecasts, and climate data. They predicted that a drought call detail records of mobile subscribers in Senegal avail- would occur and advised farmers against planting crops, able to researchers as part of a Data for Development saving those who adhered to their advice US$3.8 mil- Challenge. Agriculture, one of the five priority areas, was lion (Clark 2014). The initiative received a UN Big Data the subject of four research papers analyzing whether Climate Challenge award and has plans to scale up over mobile network data could be used for: the next one to three years to include other crops and to  Developing mobility profiles and calendars for food expand into other countries in Latin America and Africa. security and livelihood analysis. ƒ Cognitive analytics uses a mix of artificial intelli-  Understanding the genesis of millet prices in gence, machine learning algorithms, and in some case Senegal (including the roles of production, markets, natural language processing to, in essence, mimic the and their failures). cognitive capacity of humans. Although in many ways  Improving disaster resilience through a visual experimental and not yet widely available, cognitive analysis of call data records. analytics has the potential to completely change our  Unraveling correlations between agricultural events ability to make sense of massive amounts of data in and phone traffic. ways that our unaided minds are simply not capable of handling (Ronanki and Steier 2014). The papers are available in the Data for Development Challenge The best way to measure the effectiveness of big data analytics Senegal Book of Abstracts: Scientific Papers, available at http:// in agriculture may be to determine how the insights revealed www.d4d.orange.com/fr/content/download/43453/406503 by the service have contributed to changes in efficiency and in /version/1/file/D4DChallengeSenegal_Book_of_Abstracts _Scientific_Papers.pdf. Source: Authors. 24 An artificial neural network is a type of machine learning algorithm that mirrors the interconnectedness of neurons in the human brain. These networks, which are helpful for analyzing complex and often 23 The five types of analytics cited here are based on IBM’s classifica- incomplete data, are used for such things as detecting potential tions (see http://www.ibm.com/analytics/us/en/analytics-technology/). credit card fraud or the presence of explosives in airports (Kay 2001). ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 421 the cost of the overall outcomes that the service was intended They have always been present to some degree in develop- to deliver. The capacity for realizing any benefit from big data is ment—data collection is nothing new. With the advent of predicated on two factors at the output level. The first is that big data, what has changed is the role of third parties. Given the analytic tools being used actually generate insights based the complexity of the computer systems needed for big data on the data available, so (at a very basic level) one output that analytics, third parties increasingly store and analyze the data can be tracked is the number of insights generated. The sec- that organizations collect. Policymakers and practitioners need ond, and more important, output is the number of insights gen- to think seriously about protections for these data, particularly erated that are deemed to be accurate or worth acting upon. data related to individuals, and implement them. The next section of this note highlights lessons and issues One example (mentioned earlier) of the risks involved in failing surrounding big data, and the three innovative practice to protect data is the potential for individuals to be displaced summaries that follow present more detailed examples of from their land. In a context where land grabs are prevalent how big data analytics is coming into its own in agriculture. and rights to land are protected ineffectively, failure to prevent The first two summaries describe open access resources: detailed information about the quality of farmers’ soil and HarvestChoice, with spatially explicit, harmonized data layers production capacity from falling into the wrong hands could on numerous major indicators for Sub-Saharan Africa, and the put producers with high-quality land at greater risk. Anecdotal Crop Composition Database (CCDB), with rigorously vetted reports note that farmers in high-income countries have already data on the nutritional composition of specific crop species. expressed concern that they might be penalized if the govern- The third summary describes aWhere, a service that collects ment or environmental activists discover that they have applied global meteorological data and matches them with informa- fertilizer incorrectly (Gilpin 2014) or that traders might manipu- tion from farmers; the resulting data can be analyzed not only late market prices based on access to information about what to develop personalized agronomic recommendations for farmers are planting (Banham 2014). If producers perceive that farmers but also to contribute significantly to development their data are not secure or might be used against them, they policy, especially with respect to climate change. may resist using tools that ultimately could help them. LESSONS LEARNED Crowdsourced data are particularly affected by the poten- The case for using big data for analytics is pretty clear. The tial of people to report incorrect information based on their world is increasingly interconnected, volatile, and complex. perceptions rather than fact. It turns out, for example, that The sheer volume of data that the world produces makes Google Flu Trends was not actually that good at predicting it simply impossible for humans to make sense of it all and the occurrence of influenza; instead, it reflected the inci- react in real time. An added consideration is the inherent dence of illnesses with flu-like symptoms (Fung 2014). If this cognitive biases in human brains, which can lead to illogical tool had been applied to agriculture and used, for instance, to conclusions or associations (Kahneman 2011). predict outbreaks of avian influenza, policy and commercial decisions based on such predictions could have mobilized Given these trends and concerns, it is not hard to see why such resources to cope with an outbreak that did not exist. excitement surrounds the potential for big data to play a major role in contributing to the agricultural productivity gains that are Limitations in data sharing, compatibility, and availability also needed to meet the world’s food needs by 2050. Of course, constitute barriers to fully realizing the potential of big data realizing this potential is not as easy as simply turning on a in agriculture. In a number of countries, for example, cen- switch. To maximize the impact of big data on agriculture, poli- suses and farm surveys are sporadic, incomplete, and often cymakers and practitioners will need to consider and address a exclude smallholder farmers. The FAO’s Global Strategy to number of issues, outlined here. In broad terms, these issues Improve Agricultural and Rural Statistics is attempting to can be clustered into three groups: issues related to data address this challenge through the introduction of an inte- ownership, access, and quality; issues related to analysis and grated survey system that countries can use to regularly col- interpretation; and issues related to implementation capacity. lect and produce comprehensive agricultural data (Graziano da Silva 2016). Data Ownership, Access, and Quality For the most part, structures and standards for sharing propri- Determining who owns the collected data and how those data etary data are also lacking. Unlocking those data will require sets are protected are issues worthy of serious consideration. public-private partnerships; it will also require stakeholders to I C T I N AG R I C U LT U RE 422 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING understand how they will benefit, both individually and col- location of all calls made on their network. The analysis of lectively, from doing so (World Economic Forum 2015). CDRs has been suggested as a way to track population move- ments during times of conflict or disease outbreaks, but the A strong open data movement, which the World Bank and network operators’ limited commercial interest in sharing others are promoting, seeks to bring more of the world’s such data is often overlooked. The analysis of CDRs also gen- data into the public domain, including agricultural data (see erally ignores principles of informed consent, since individual box 15.9 and the innovative practice summary below). A vast callers have not consented to having their data analyzed for share of these data remain closed to the public, however. Of those purposes (Letouzé and Vinck 2014). the 1,290 data sets of public records surveyed from 86 coun- tries by the Open Data Barometer in 2014, only slightly more Analysis and Interpretation than 10 percent met the definition of open data by being “published in bulk, machine-readable formats, and under an The challenges related to analysis and interpretation can be open license” (World Wide Web Foundation 2015). broadly classified into three types of limitations: data, human, and machine. Data limitations refer to shortcomings in data Even members of the development community, which sets that prevent their meaningful analysis, such as an insuf- should have many incentives to share data with each other, ficient amount of data, erroneous data, or unreadable data. have responded unevenly to the call for open data. Part of Many of the human limitations relate to cognitive biases and the challenge in making data public is to develop internal pro- poor interpretation of the data or of their implications.25 Even in cesses for managing data and to compile data sets that may the case of cognitive analytics, which aims to reduce the poten- be sitting on hundreds of different hard drives around the tial effect of such limitations, ultimately it is still humans who will organization. Another part of the challenge is to overcome make decisions based on the outputs from the analytic tools. At resistance to change among individuals who are simply used least in the near future, human judgment will retain a significant to handling their data in one way, and have yet to adjust role in benefiting from analytic insights, because most big data to new data management processes. Both of these issues analytics will remain outside the realm of cognitive analytics. speak to the need for organizations in the development com- munity to put forward very clear guidance on open data set The supply/demand gap between the number of professionals requirements and to implement clear data management pro- with the requisite skills to analyze and make decisions from cesses that are effectively communicated to all employees. big data, and the number of professionals needed across all industries with an interest in big data, has been reported by Not surprisingly, gaining access to data in the private domain a number of sources over the past few years. Governments, is even more complicated. Many private businesses are reluc- academic institutions, and development organizations, in tant to share data with third parties without either selling the addition to the private sector, need to address this talent data to them and/or requiring legal agreements, such as non- gap in the agricultural sector through capacity building and disclosure agreements. CDRs are a good example. CDRs col- education. Skills must be developed at the farm level as well lected by mobile network operators indicate the approximate as among development practitioners and researchers, all of whom will benefit from better understanding how to make sense of data and act upon that knowledge. BOX 15.9. Suggestions for Unleashing the Power of Data for Agriculture Although, one day, artificial intelligence, driven by machine learning algorithms, may be virtually indistinguishable from Participants in the 2015 International Open Data human intelligence, machines—at least for the present—also Conference (Canada) identified seven ways that data can have limitations. Even Watson, IBM’s supercomputer—a be made more effective in agriculture: (1) open up data, system much more powerful by far than anything the reader (2) identify data users, (3) bring intermediaries into the is likely to access in the near future—made very basic mis- game, (4) develop new tools for data collection, (5) look takes in common sense during its triumphant run on the U.S. beyond technology, (6) foster cross-sector collaboration, television show Jeopardy! several years back (Hamm 2011). and (7) address the need for disaggregated data. More detailed information can be found online here.a Source: Authors. a. Halais 2015 (https://www.devex.com/news/7-challenges-the-agriculture 25 The UN Global Pulse’s Big Data for Development: Challenges -sector-must -address-to-unleash-its-data-revolution-86310). & Opportunities has a thorough section on challenges in the analysis of big data, mostly related to human limitations. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 423 Implementation Capacity For governments seeking to implement big data systems to A 2013 worldwide survey by Gartner found that 64 percent support agricultural development, the challenges are likely of organizations had invested in or were planning to invest to be even greater, given the scale. In an examination of the in big data systems (Gartner 2013). Over the next few sources of the initial failure of the U.S. healthcare.gov web- years, this figure is likely to continue to grow rapidly, as site, Clifford Winston of the Brookings Institution identified an increasing number of medium-sized and large agribusi- four primary contributors: (1) limited technical expertise and nesses in high- to low-income countries will probably invest an overreliance on contractors; (2) little, if any, rigorous and in some form of big data solution. A good portion of those transparent ongoing assessment because of a fear of expos- firms will also probably fall victim to at least one of the eight ing problems; (3) a status-quo bias and an inflexibility and implementation challenges identified by Svetlana Sicular at inability to make important changes in managing a project; Gartner (Sicular 2014): (1) management inertia, (2) selecting and (4) constraints that may affect budgeting and adoption wrong use cases, (3) asking wrong questions, (4) lacking the of state-of-the-art technology (Winston 2013). right skills, (5) unanticipated problems that are wider than All such factors should be considered and taken into just a big data technology, (6) disagreement on the enterprise account in supporting and deploying any big data system. strategy, (7) siloed big data, and (8) solution avoidance.26 The relevance of each factor depends somewhat on how much the use of big data has advanced in a particular coun- try or organization. Figure 15.3 provides a useful framework for understanding the different stages of big data use in an 26 This figure originally appeared in the chapter “Big Data Maturity: An Action Plan for Policymakers and Executives” within The organization, as well as the internal capabilities and ecosys- Global Information Technology Report 2014. tem enablers that need to be in place first. FIGURE 15.3. Big Data Maturity Framework Source: Strategy& (formerly Booz & Company), part of the PwC network of firms.26 Note: Used with permission. New request for permission is required if image is reused. I C T I N AG R I C U LT U RE 424 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING Helpful resources Data are harmonized across domains and country borders, ƒ Big Data in Action for Development, http://live allowing for complex spatial analyses and evidence-based .worldbank.org/big-data-in-action-for-development. investment strategies. For example, HarvestChoice’s Spatial ƒ Big Data, Big Impact: New Possibilities for Production Allocation Model (SPAM) uses a cross-entropy International Development, https://www.weforum approach on a variety of inputs, from subnational crop produc- .org/reports/big-data-big-impact-new-possibilities tion statistics to market information, to generate plausible, -international-development. disaggregated estimates of crop distribution for 42 crops and their performance around the globe (You et al. 2014). SPAM ƒ Big Data for Development: Challenges & results are useful for understanding production and land- Opportunities, http://www.unglobalpulse.org use patterns and for identifying geographical trends. They /sites/default/files/BigDataforDevelopment also provide a means for understanding the causalities of -UNGlobalPulseJune2012.pdf. cropping outcomes within disaggregated units. SPAM data can be manipulated via Mappr or downloaded from www .mapspam.info. INNOVATIVE PRACTICE SUMMARY Generating Open Access, Spatially Explicit Pooled data from georeferenced household surveys, Data Sets, and Analyses for More Productive such as Demographic and Health Surveys29 (DHS) and the Farming and Better Livelihoods in Africa LSMS30, are filling critical information gaps with respect A growing community of scientists is taking advantage of to nutrition, health, gender-related variables, wealth (con- publicly available global data sets remote sensing imagery, sumer durables, housing characteristics), education, and GIS, computer modeling, and georeferenced data pooled access to services (water, sanitation, health facilities, from the bottom up (or crowdsourced) to capture the het- schools). When it comes to agricultural activities, income, erogeneity of humans and agriculture and gain a better and infrastructure, however, the survey data are weak understanding of the complex spatial relationships between (although improving). This is where the interoperability of agriculture, the environment, climate change, and social harmonized data becomes important. By combining popu- well-being.27 A problem in many settings, but especially in lation data from household surveys with HarvestChoice low-income countries and among low-income and vulnerable spatial data on agriculture, biophysical characteristics, and populations, is that critical data are difficult to obtain from market access, it is possible to produce a well-rounded set administrative offices or to generate through experiments of variables and facilitate studies on nutrition and agricul- and observations on the ground. The growing availability of ture across or within countries. cross-harmonized data and geospatial tools is helping to alle- viate some of those constraints. HarvestChoice currently holds many spatial layers on nutri- tion and dietary outcomes based on crowdsourced surveys, HarvestChoice is hub to a large number (more than 750 and allowing Mappr users to visualize the spatial distribution growing) of spatially explicit, harmonized data layers for Sub- of diet quality and nutritional outcomes across subnational Saharan Africa, including indicators of health and poverty regions in Sub-Saharan Africa. Such data can support analy- variables, agricultural production and area, climate and soil, ses of how diet and nutrition are related to market character- and access to markets (box 15.10). Web-based data analytics istics, the environment, and agricultural systems, and they tools, such as HarvestChoice’s Mappr, allow development can provide the context for understanding the scalability of practitioners and analysts to dip into HarvestChoice’s core research outcomes. data holdings and visualize geographical impacts for invest- ment and policy design at scale (HarvestChoice 2012). More Economic and crop modelers are also increasingly taking advanced users can plug directly into HarvestChoice data advantage of granular data sets, especially those harmo- through an open API28 (HarvestChoice 2014b). nized on high-resolution global grids in modeling analyses that explore future consequences of climate change (Nelson 2014; Rosegrant 2014). Crop models such as Decision Support System for Agrotechnology Transfer (DSSAT) make 27 This innovative practice summary was developed by Cindy Cox and Jawoo Koo at the International Food Policy Research Institute (IFPRI). 29 Available at http://dhsprogram.com/data. 28 A publicly available application programming interface. 30 Available at http://go.worldbank.org/BCLXW38HY0. ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 425 BOX 15.10. Aggregating and Visualizing Data in Mappr Mappr users can aggregate ~10 × 10 kilometer pixels in meaningful ways, such as by farming system, watershed, or agro-ecological zone. HarvestChoice uses remote sensing, GIS, open source subnational data sets, crop and economic modeling (DSSAT and IMPACT), and georeferenced household surveys to generate over 750 layers of subnational socio- economic and biophysical data for Sub-Saharan Africa; see, for example, images B15.10.1 and B15.10.2. IMAGE B15.10.1. HarvestChoice’s Mappr HarvestChoice’s Mappr (http:// apps.harvestchoice.org/mappr) allows users to easily explore +700 multi-disciplinary geospa- tial indicators across SSA with- out needing to use advanced GIS software or spatial analysis skills. Users can browse the data catalog, select multiple indica- tors of interest, visualize them on the map, and execute a set of spatial analysis. This screenshot shows an example of spatial domain analysis output gener- ated from three user-selected indicators (rural poverty, maize harvest area, and growing period) presented on the map and a series of charts. IMAGE B15.10.2. HarvestChoice’s grid-based multi-disciplinary indicator database (CELL5M) Learn more about CELL5M, which powers a suite of spatial target- ing analyses and applications, at http://dx.doi.org/10.12688/f1000 research.9682.1. This tool (available online at https://public.tableau.com /profile/ifpri.td.hc#!/vizhome/cell5m _a4nh_v2_ssa/CELL5M_A4NH) pro- vides an easy-to-use, interactive indicator-level mapping and filtering interface to identify the areas meet- ing multiple search criteria of agri- culture and nutrition baseline. Maize yield (kg/ha, 2005) Stunting, Moderate (z-score –6 to –2) More than just pretty maps, georeferenced data can help development practitioners visualize where populations are most vulnerable, the farming systems they most depend on, the biological and geophysical constraints and risks that limit farm produc- tivity, the investments and innovations that could raise farm productivity most sustainably, and the broader impacts of such change. Source: Authors. Note: Images used with permission. New request for permission is required if image is reused. I C T I N AG R I C U LT U RE 426 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING it possible to explore global changes in agricultural produc- consistency. Users can query the database to generate mean tivity (Jones et al. 2003). Results from crop models can be levels and ranges of nutritional components in various crop spe- integrated with economic models (such as the IMPACT cies. Environmental factors such as soil type and temperature and DREAM models) to study alternative projections of can affect the levels of important nutrients in plants, and the global food supply, demand, trade, prices, and food security moisture content can vary based on field conditions at harvest (HarvestChoice 1995; Rosegrant 2008). Agritech Toolbox, a and when samples are handled. The database includes features geo-tool available from HarvestChoice, allows users to explore that allow the user to retrieve a subset of data for samples pro- simulation results from those two types of models and visu- duced in a specific year or location, and the analyst search filter alize the impact of agricultural technologies around the globe can be applied to retrieve a predetermined subset of data. (HarvestChoice 2014a). This analytical capacity is particularly important in regions of the world where the effects of global The CCDB is accessible to scientists from academia, gov- changes in the environment, including the effects of climate ernment agencies, and industry as well as to the general change, are most pressing and consequential. public, and it is a well-used resource. From July 2014 to July 2015, the CCDB logged 81,838 unique site visits from users in 122 countries around the world. It is referenced in peer- INNOVATIVE PRACTICE SUMMARY reviewed publications, regulatory guidance documents, and The ILSI Crop Composition Database in many regulatory dossiers submitted in support of geneti- cally engineered food safety assessments. This database The CCDB (https://cropcomposition.org), launched in 2003, is complements existing food and nutrient databases, and it a curated, open resource that provides data on the natural vari- is an important but probably underused resource for food ability in the nutritional composition of specific crop species scientists, nutrition practitioners, and others interested in (e.g., information on nutrients, anti-nutrients, and secondary the interface between agriculture and nutrition. metabolites) (Alba et al. 2010; Ridley et al. 2004).31 These data have multiple uses, although the CCDB was originally devel- One of the strengths of the CCDB—the completeness and oped to provide information for risk assessors and regulators quality of the data sets for each of the subject crops—is to undertake intraspecies comparative assessments of the also potentially one of its limitations, however. The analyti- nutritional content of conventional versus transgenic crops cal rigor required for data submitted to the CCDB means (CAC 2003). The non-profit International Life Sciences Institute that sample testing is expensive, so it is not surprising that (ILSI) Research Foundation maintains the CCDB, and criteria most data has been provided (at no charge) by the private for accepting data are overseen by the CCDB Working Group, sector, and for a very limited range of crops (currently which comprises scientists from the public and private sec- canola, field corn, sweet corn, cotton, rice, and soybeans). tors. The most recent version of the CCDB was released in The ILSI Research Foundation and the CCDB Working 2014 and includes more than 840,000 data points representing Group are committed to including data for other crop spe- 3,150 compositional components. cies, particularly of important staple foods. For such data to become available, public sector breeding programs, as Data in the CCDB are derived from numerous samples of well as breeding programs run by small and medium-sized hybrids and/or varieties cultivated in controlled field trials private firms, must be able to submit data, but it is also using standard commercial cultivation practices at various imperative to ensure that data for new crops are verifiable locations throughout the world. Representative plant samples and robust. Resolving how to balance these imperatives are obtained from field-grown crops with known production remains a significant challenge. locations and dates. The analytical methods used to generate the data must be indicated, validated, and use certified or his- torically verified standards. Data are uploaded in a standardized format by an authorized provider using a secure data provider INNOVATIVE PRACTICE SUMMARY tool. As the comma-delimited file is uploaded, it is checked for Using Big Data to Provide Localized Weather and Agronomic Information to format and duplication at the file and sample level. The content Producers of successfully uploaded data is then tested for validity and Throughout the world, a great number of producers use traditional knowledge of weather-related signs and con- 31 This innovative practice summary was written by Morven ditions to make their agricultural choices. This knowl- McLean of the ILSI Research Foundation. edge—which has sustained countless generations of ICT IN AGR IC ULTUR E S E C T I O N 4 — I M P ROVING P UBL IC SE RVICE P ROVISION 427 producers—has become a less reliable guide as more and longitude of his or her farm and the crops planted, variable weather patterns have brought less predictability, the information can be more tailored to that farmer’s higher risk, and a growing sense of uncertainty to farmers circumstances. In practice, aWhere has found that farm- and to agriculture.32 ers typically provide the name of a village, for which the coordinates can be identified. Given that many farmers do Uncertainty can affect behavior by making people even more not have GPS-enabled phones or, if they do, may not know averse to risk. Farmers who are more risk averse may be less how to collect their coordinates, it may be necessary for likely to experiment with or adopt new approaches, including someone else to collect that information on their behalf. approaches that could increase agricultural and environmen- Once their specific information is input into the platform, tal sustainability in an era of climate change and less pre- however, they can begin to receive crop-specific advice, dictable weather. The connection between uncertainty and localized weather forecasts, details on nearby input provid- subsequent environmental degradation can create a vicious ers, and local market prices. cycle in which the impact of increased weather variability on agriculture continues to grow. Services that tailor agricultural Key Lessons from aWhere information to highly local settings can help farmers adjust to weather variability, increase the productivity and profitability ƒ Combining data from multiple sources provides a lon- of farming, and create an opportunity to improve sustainable gitudinal view of climate effects and produces insights food production. that can be extremely beneficial to farmers. ƒ Simply collecting the data and generating insights is By combining localized weather information with farmer- not enough; the use of technology to make sure that specific tips, aWhere is seeking to address these issues. Its the message reaches the right stakeholders at the predictive analytic platform collects over 1 billion data points right time is also important. daily on temperature, rainfall, humidity, solar radiation, and wind from satellites, weather aggregators, and drone opera- Most of a Where clients are based in the United States, tors, resulting in a global meteorological data set that covers although the service is expanding into Africa, Asia, and the all agricultural geographies. As a result, all weather data, from Caribbean, where it partners with agricultural information a 20-year history to 8-day forecasts, are consistently available providers such as Esoko in Ghana, which makes aWhere’s globally. At the same time, the platform is quite localized, weather data and agronomic models available to its clients matching farmer-specific agricultural tips with growth stage (Storum 2015). models that are specific to each region. Access to this combination of weather intelligence and agronomic recommendations is expected to help farmers While aWhere provides historical weather information, make more informed decisions—for example, to delay forecasts, and agronomic models, the platform relies on planting because of a projected delay in the start of the data inputs from partners for other types of information, seasonal rains. Policy makers, researchers, and develop- such as cropping calendars and agronomic tips for each ment practitioners can also use aWhere’s online platform crop and variety. This information is generally acquired for their own analysis and decision making (image 15.4). through local resources such as agricultural extension ser- By importing their own data sets into the platform, they vices, universities, and local knowledge. The combination can identify correlations that might be helpful, such as of aWhere’s agronomic models and a well-defined crop correlations between rainfall levels and market prices or calendar effectively results in a personalized crop calendar disease outbreaks. for every farmer. An added capability is that researchers and commercial The relevance of the intelligence farmers receive from practitioners can combine weather data with historical aWhere depends, in turn, on how much information they information on crop yields to generate field-specific agro- provide to the service. If the farmer provides the latitude nomic models, as well as management recommendations for weather-smart agriculture. These models and recom- 32 The majority of the text provided in this summary was adapted mendations generate new agricultural intelligence that can from content that came directly from Tarah Speck at aWhere. enhance traditional agricultural practices and provide guid- Some of the text is from the module’s primary author, and was drawn from publicly available information about aWhere. To learn ance to farmers for mitigating the risks of adverse weather more about aWhere, visit http://www.awhere.com/. events and climate variability. This new, real-time information I C T I N AG R I C U LT U RE 428 MOD ULE 15 — USING ICT FOR REMOTE S ENSING, CR OWD S OUR C ING IMAGE 15.4. Screenshot of aWhere’s Online Dashboard Source: aWhere. Note: Used with permission. New request for permission is required if image is reused. allows farmers and stakeholders across the world to make Bilbao-Osorio, Beñat. 2014. The Global Information Technology evidence-based agricultural decisions and optimize farming Report 2014: Rewards and Risks of Big Data. World Economic Forum, Cologny. http://www3.weforum.org/docs/WEF_Global practices as the dynamics of agriculture change. InformationTechnology_Report_2014.pdf. All of aWhere’s weather and agronomic data can be deliv- BIS Research. 2014. Global Precision Agriculture Market Analysis & Forecast (2015–2022) Technology (VRA, Soil Mapping, Yield ered through RESTful APIs, allowing for their integration into Monitoring, Precision Irrigation, Others), Components and customized apps or widgets. More details, including samples Systems. http://www.researchandmarkets.com/research/ and JavaScript visualizations, can be found on their devel- fk898n/global_precision. oper’s portal (http://developer.awhere.com/). 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World Economic Forum. 2011. “Personal Data: The Emergence of Zoltner, John. 2015. “The Future Is Here with Sensors and a New Asset Class.” http://www3.weforum.org/docs/WEF_ITTC Geospatial Analytics in International Development.” ICTworks. _PersonalDataNewAsset_Report_2011.pdf. http://www.ictworks.org/2015/06/15/the-future-is earlier- ———. 2015. “Data-Driven Development Pathways for Progress.” here-with -sensors-and -geospatial-analytics-in-international http://www3.weforum.org/docs/WEFUSA _DataDriven -development. Development_Report2015.pdf. I C T I N AG R I C U LT U RE G LO S SA RY 433 GLOSSARY 2G, 3G, 4G. Second-, third-, and fourth-generation [developments Chain traceability. Recording and transferring product or process data in mobile wireless technology]. 2G mobile wireless has basic through a supply chain between various organizations and loca- functionality: voice and short messaging service (SMS); 3G has tions involved in the provenance of food. See internal traceability. advanced functionality: general packet radio service; and 4G has Cloud computing. A model for enabling ubiquitous, convenient, broadband functionality: long-term evolution (LTE). on-demand network access to a shared pool of configurable Active infrastructure sharing. The shared use of electronic infra- computing resources (e.g., networks, servers, storage, applica- structure such as network components (for example, access tions, and services) that can be rapidly provisioned and released node switches), radio transmission equipment, and core net- with minimal management effort or service provider interaction. work software systems. See passive infrastructure sharing. Cloud computing permits organizations without the resources to invest in extensive computing power to rent this service from a Aerial photography and orthophoto mosaic. An image (once a provider and access it remotely. (Based on http://en.wikipedia photograph, now a digital image) of the ground taken from an .org/wiki/Cloud_computing?oldid=0, accessed August 2011.) airplane, helicopter, or radio-controlled aircraft at a given altitude. Aerial images are presented as an orthophoto mosaic that is an Commercial supply chain. In agriculture, a supply chain in which alternative to a map. These images are higher in resolution (deci- a private agribusiness is sourcing agricultural produce from meter) than satellite images, proving useful for those who want farmers or selling products to farmers in accordance with a more details of the terrain such as crop conditions or land use. profit-seeking business model. Often used interchangeably with supply chain and value chain. Agricultural innovation system (AIS). A network of organizations, enterprises, and individuals focused on bringing new products, Commodity futures exchange. A market in which multiple buyers new processes, and new forms of organization into economic and sellers trade commodity-linked contracts on the basis of use, together with the institutions and policies that affect their rules and procedures set out by the exchange. Such exchanges behavior and performance. typically act as a platform for trade in futures contracts (stan- dardized contracts for future delivery of a commodity). (Based Application. A software program or groups of programs enabling on a definition by the United Nations Conference on Trade and users to perform particular operations. They consist of systems Development.) software (operating systems for managing computer resources, for example) and programs such as those for data processing, Crowdsourcing. Shorthand for leveraging mass collaboration word processing, and a multitude of functions that run on systems through ICTs by distributing tasks to or requesting information software. An IT application for managing dairy cooperatives, for from a large group of people or community (“crowd”) through example, relies on numerous kinds of applications running on the an open call or message. operating systems of any number of devices and the Internet. See Data mediation. The process of using many data sets to produce http://www.webopedia.com/TERM/A/application.html. a single, coherent set of information. Data mediation software Basis risk. In index-based insurance, the imperfect relationship organizes different types of data (such as hourly versus daily) and between the policy holder’s potential loss and the behavior of the synthesizes different approaches to classification (for example, index. One farmer’s loss from drought may not perfectly match the use of a different classification vocabulary), helping to medi- that of all others; some farmers will lose more and some less. ate differences between data sources—particularly those on the Internet. Biometric cards. Identification cards with a microchip or barcode that contains information on the physical characteristics of the Data mining. The extraction of stories or patterns from large holder. These cards can help prevent fraud and identity theft by amounts of data. Data mining can follow four major patterns: providing a more accurate means of identification. clustering (discovering groups), classification (forming a struc- ture), regression (finding a function), and associations (finding Broadband. Specifically, a signaling method that handles a rela- relationships). tively wide band (spectrum) of electromagnetic frequencies. More generally, the term refers to a telecommunications signal Digital divide. Differences in the capacity to access and use ICTs or device of greater bandwidth than another standard or usual among individuals, men and women, households, geographic signal or device (and the broader the band, the greater the areas, socioeconomic groups, ethnic groups, and so forth. The capacity for traffic). The wider (or broader) the bandwidth of a capacity to access ICTs encompasses physical access as well as channel, the greater its information-carrying capacity, given the access to the resources and skills to participate effectively as a same channel quality. (Based on http://en.wikipedia.org/wiki “digital citizen.” (Based on the definition in http://en.wikipedia /Broadband#Internet_access, accessed July 2011.) .org/wiki/Digital_divide, accessed July 2011.) I C T I N AG R I C U LT U RE 434 GLOS SA RY Digital orthophoto quads. Digital maps that combine the geometric that allows mobile phones to function smoothly with the fixed information of a regular map with the detail of an aerial photograph. network infrastructure. FMC seeks to optimize transmission of all data to and among end users, no matter their locations Digital soil mapping. The creation and the population of a geo- or devices. (Based on the definition in http://searchmobile graphically referenced soil database generated at a given resolu- computing.techtarget.com/definition/fixed-mobile-convergence, tion through field and laboratory observation methods, coupled accessed July 2011.) with environmental data through quantitative relationships. A variety of technologies—including satellite, remote sensors, and Genetically modified (GM). A genetically modified organism cameras—can be used to survey soil and collect data to create (GMO) in which the genetic material has been transformed using digital soil maps. the techniques of genetic engineering. Examples include cotton that has been genetically transformed to resist a particular herbi- Digital terrain model. A digital representation of an area’s terrain on cide. Many countries strictly control the production, use, export, a GIS that provides accurate position and elevation coordinates. and import of GM plants and animals. Such models can be used to meticulously engineer projects such as roads, drainage, gravity-fed irrigation works, and detention Geographical information system (GIS). Geographic data col- reservoirs. At the field level, digital terrain models can monitor lected through computer hardware and software to capture, and improve areas affected by waterlogging or flooding. store, update, and display all forms of geographically referenced information by matching coordinates and time to other variables. e-government. A government’s use of ICT to enhance public services. Data sets formed by a GIS constitute “layers” of information (for e-Learning. is the use of electronic technologies to deliver, facili- example, on topography, population size, or agricultural house- tate, and enhance both formal and informal learning and knowl- hold income) that can be merged and analyzed to establish rela- edge sharing at any time, in any place, and at any pace. tionships and produce maps or charts that visualize geographical traits. Elite capture. When better-off or politically connected farmers cap- ture public programs. Georeference. To establish the position of something through its geographical coordinates. Enterprise resource planning (ERP). Software integrates the many functions of an enterprise into a single system. It centrally stores Global positioning system (GPS). A satellite-based navigation many kinds of organizational data and manages data transmis- system with three basic components: satellites that orbit the sion and use between departments within the organization and Earth, control and monitoring stations on the Earth, and the GPS external partners, such as suppliers. ERP is more of a methodol- receivers owned by users. GPS receivers pick up signals from ogy than a piece of software, although it does incorporate sev- the satellites, including precise orbital information (latitude, lon- eral software applications under a single, integrated interface. gitude, and ellipsoidal GPS altitude) of a given object or location, as well as the time. e-readiness. The ability to use ICT to develop or improve one’s economy or situation through proper preparation. ICT. Information and communication technology. Farmer-led documentation (FLD). A process in which local communi- Index-based insurance. Insurance that substitutes individual loss ties take the lead role in the documentation process. The results are assessments with an indicator that is easy to measure (such used by community members for learning within the community as weather) as a proxy for the loss. Weather indices have been (internal learning); exchange between communities (horizontal shar- used in insurance products protecting against drought and loss ing); and cooperation between communities, development agents, of inputs. Vegetation has been used in livestock insurance prod- and policymakers (vertical sharing). See www.prolinnova.net/fld.php. ucts as an indicator of livestock losses. See also weather-based index insurance and basis risk. Feature phones. A modern low-end phone that is not a smartphone. Feature phones do not run a mobile operating system like smart- Infomediary. An infomediary works as a personal agent on behalf of phones but run on specialized software enabling them to access consumers to help them take control over information gathered various media formats in addition to offering basic voice and about them for use by marketers and advertisers. (Based on http:// SMS functionality. They substitute for multiple ICT devices that en.wikipedia.org/wiki/Infomediary, accessed September 2011.) are also available as stand-alone appliances (digital camera, voice Internal traceability. Data recorded within an organization or geo- recorder, flashlight, radio, and MP3 player). Rural consumers pre- graphic location to track a product or process. See chain traceability. fer the combined devices because of their affordability. (Based on Laser scanning, or light detection and ranging (LiDAR). An active http://en.wikipedia.org/wiki/Feature_phone, accessed July 2011.) airborne sensor using a set of laser beams to measure distance Financial inclusion. The delivery of affordable financial services to from an aircraft to features on the ground. Airplanes and helicop- disadvantaged and low-income segments of society. Research ters can be used for laser scanning. The data from laser scanning on financial exclusion and its direct correlation with poverty are three-dimensional at very high accuracy, and they also allow has made the availability of banking and payment services to ground elevation under the tree canopy to be measured. the entire population without discrimination a prime objective Market intelligence. Information relevant to the markets that a of public policy. (Based on http://en.wikipedia.org/wiki/Financial producer (or company) wishes to reach, which is gathered and _inclusion, accessed July 2011.) analyzed specifically for making strategic decisions that will help Fixed-mobile convergence. The increasingly seamless connectiv- to maximize profits in relation to market opportunities, market ity between fixed and wireless telecommunications networks, penetration, and market development. Market intelligence is devices, and applications. Also refers to any physical network necessary when entering a new market (foreign or domestic). ICT IN AGR IC ULTUR E G LO S SA RY 435 Mobile application. Software on a portable device (such as a (3) animal or plant life from pests, diseases, and disease-causing mobile phone handset, personal digital assistant, or tablet com- organisms; and (4) a country from other damage caused by the puter) that enables a user to carry out one or more specific tasks entry, establishment, or spread of pests. Such measures include that are not directly related to the operation of the device itself. national control of contaminants, pests, and diseases (vaccina- Examples include the ability to access specific information (for tion programs, limits on pesticide residues in food) as well as instance, via a website), make payments and other transactions, international controls to prevent their inadvertent spread (for play games, and send messages. example, the rejection of insect-infested food shipments that pose a risk to domestic food production). Nanotechnology. The ability to engineer new attributes by control- ling features at or around the scale of a nanometer (one-billionth Satellite imagery. An image of Earth taken from satellites in orbit. of a meter, or about 1/80,000 the width of a human hair). Satellite imagery can be spatial (size of surface area); spectral (wavelength interval); temporal (amount of time); and radiomet- Passive infrastructure sharing. The sharing of nonelectronic ric (levels of brightness). Each type of images captures a variety infrastructure, equipment, and services at mobile network base of variables about a given area of varying size. The resolution (in stations, including the site space, buildings, towers, masts, and meters) of these images depends on the satellite system used antennas; power supply, back-up batteries, and generators; and its distance from Earth; weather can interfere mainly with security; and maintenance. satellite systems utilizing visible wavelengths of light. Precision farming (precision agriculture). Farming based on observ- Side-selling. A farmer sells produce to a buyer other than the ing and responding to variations within a field detected through agreed-on buyer. Farmers may fail to honor contracts with buy- ICTs, such as satellite imagery. Precision farming also makes use ers for a number of reasons (buyers pay late, or prices in the of GPS, GIS, and variable rate technology to match practices more local market are higher than the original price agreed on with the closely to the needs of crops, soils, animals, or fisheries. buyer, for example). Primary wholesale market. A market large enough to dominate trade Smartcard. A pocket-sized (usually plastic) card with embedded in some goods over a large area. (Based on http://www.merriam integrated circuits containing volatile memory and microproces- -webster.com/dictionary/primary%20market, accessed July 2011.) sor components. They include credit cards, identification cards, Radio-frequency identification (RFID). Uses radio waves to and the SIM cards used with mobile phones. As discussed in transfer data between a reader and an electronic tag attached this sourcebook, one of their most influential roles has been to to a product, animal, or person for identification and tracking. extend the use of mobile phones in financial transactions such The technology uses hardware (readers) and tags (also known as purchases of subsidized inputs, conditional cash transfers, as labels) as well as software. Most tags contain at least two agricultural credit, and agricultural information services. (Based parts: one is an integrated circuit for storing and processing on http://en.wikipedia.org/wiki/SmartCard#Cryptographic_smart information, and the other is an antenna for receiving and trans- _cards, accessed July 2011.) mitting the signal. (Based on http://en.wikipedia.org/wiki/Radio Smartphone. A high-end mobile phone that offers more advanced -frequency_identification, accessed July 2011.) computing ability and connectivity than a contemporary feature Risk. Imperfect knowledge where the probabilities are known. phone. A smartphone runs a complete mobile operating system Traditional risks to agriculture in developing countries include and combines the functions of a personal digital assistant (PDA) inclement weather, pests, disease, outbreaks, fire, theft, and a mobile phone. Today’s models typically serve as portable and conflict. Newer risks include commodity and input price media players and camera phones with high-resolution touch- volatility. Risks can be idiosyncratic—affecting only individual screen, global positioning system (GPS) navigation, Wi-Fi and farms or firms—or covariate, affecting many farms and firms mobile broadband access. (Based on http://en.wikipedia.org simultaneously. /wiki/Smartphone, accessed July 2011.) Risk coping. Actions that help the victims of a risky event (such as a SMS (short messaging service). A service to send text mes- drought, flood, or pest epidemic) cope with the losses it causes. sages via mobile or fixed-line phones, usually limited to about They include government assistance to farmers, debt restructur- 160 characters. ing, and remittances. Soil carbon sequestration. Transferring carbon dioxide from the Risk mitigation. Actions that prevent events from occurring, limit atmosphere into the soil through crop residues and other organic their occurrence, or reduce the severity of the resulting losses solids (like mulch), is one technique to restore carbon levels in (for example, pest and disease management strategies). soils. Risk transfer. Actions that transfer risk to a willing third party, at Soil organic carbon. Carbon held within the soil as a result of the a cost. Financial transfer mechanisms trigger compensation or decay of once-living plants and animals. The amount of carbon reduce losses generated by a given risk, and they can include within the soil is used as a measure of soil organic matter; soils insurance, reinsurance, and financial hedging tools. with high levels of organic matter are better at holding water and contain more nutrients. Sanitary and phytosanitary (SPS) protection. Measures, includ- ing regulations and agreements, to protect: (1) human or animal Spatial modeling (among other models). Closely related to spa- health from risk arising from additives, contaminants, toxins, or tial analysis or statistics, models are an attempt to simulate real- disease organisms in food, drink, and feedstuffs; (2) human life world conditions and explore systems using their geographic, from risks associated with diseases carried by plants or animals; geometric, or topological properties. I C T I N AG R I C U LT U RE 436 GLOS SA RY Spectrum rights. Rights to specific parts of the radio spectrum communications networks somewhere, at a public place. used for radio transmission technologies and applications. The (Generally, the goal is to have at least one point of access per radio spectrum is typically regulated by governments, and in settlement over a certain population size.) As a policy objec- some cases is sold or licensed to operators of private radio trans- tive, UA is used primarily in developing countries, which seek mission systems (for example, cellular telephone operators or to expand geographic access to ICTs by the population at large, broadcast television stations). (Based on http://en.wikipedia.org often for the very first time. UA obligations provide for a mini- /wiki/Radio_spectrum#Broadcasting, accessed July 2011.) mum level of coverage, especially of remote communities. Subscriber identity module (SIM). An integrated circuit that securely Universal service (US). A concept underpinning the definition of stores the service-subscriber key used to identify a subscriber on access to ICTs, US occurs when every individual or household mobile devices (such as mobile phones and computers). A SIM is can have service from communications networks, accessing ser- held on a removable SIM card, which can be transferred between vices privately at home or increasingly through portable wireless different mobile devices. (Based on http://en.wikipedia.org/wiki devices. US focuses on upgrading and extending communication /Subscriber_Identity_Module, accessed October 2011.) networks so that a minimum level of service is delivered, even in the least accessible areas. As a policy objective, US is used Supply chain. The set of buy-sell interactions as goods flow from primarily in developed countries and generally pursued by impos- raw materials through production to the final retailer where con- ing universal service obligations on network operators. For some sumers can buy them. Often used interchangeably with com- services, a goal of US is too ambitious at present in a develop- mercial supply chain and value chain. ing country, because the services must be affordable as well as Supply-chain management (SCM systems). Software running on available. Goals may be cast in terms of the proportion of the networked computers and handheld devices to perform some or all population that can afford private service. of the following functions: store information about suppliers; trans- Userability. The degree to which an ICT application is user friendly— mit an order to the supplier (in an agricultural supply chain, often a critical aspect of successful ICT implementation. the farmer); monitor production and quality; transfer payments; and track goods from the farm gate to the warehouse or retailer. Value chain. The whole ecosystem of players involved in producing and marketing an article, from the retailer back to the producer. Technological neutrality. A leading regulatory policy principle for Often used interchangeably with commercial supply chain and ensuring the affordability of ICTs, technology neutrality is the supply chain. principle of refraining from specifying technology requirements within telecommunications licenses. Variable rate technology. Technology enabling farmers to vary the rate of an input applied to a crop. This technology uses a variable rate Telecenter. A public place where people can use digital technolo- control system in combination with application equipment to supply gies (computers, the Internet, even mobile phones) to gather inputs at the precise time and/or place where they are required. information, create, learn, and communicate with others. Some Components of the technology include a computer, software, dif- centers are established specifically for people to learn these ferential GPS receiver, and controller. See precision farming. essential digital skills; others simply operate profit. But telecen- ters often help to support community, economic, educational, Weather-based index insurance. Insurance that substitutes an and social development—reducing isolation, bridging the digital indicator that is easy to measure for individual loss assessments divide, and creating economic opportunities. (Based on http:// (in this case, weather) as a proxy for the loss. Weather events en.wikipedia.org/wiki/Telecenter, accessed July 2011). or visible vegetation have served as typical indicators. This practice reduces the cost of assessing damage and problems Traceability (product tracing system). The information system of adverse selection, because the insured cannot influence the necessary to provide the history of a product or a process from index or the loss assessment. origin to point of final sale. Traceability is used in the food sec- tor primarily for food safety, but agrifood and nonfood sectors Web 2.0. Web 2.0 sites (unlike websites where users passively such as forestry and textiles have instituted traceability require- view content) incorporate applications that facilitate participatory ments for product identification, differentiation, and historical information sharing, interoperability, user-centered design, and monitoring. For food products, traceability systems involve the collaboration through the Internet. Examples include social net- unique identification of products and the documentation of their working sites, blogs, wikis, video sharing sites, and hosted ser- transformation through the chain of custody to facilitate supply vices. (Based on http://en.wikipedia.org/wiki/Web_2.0, accessed chain tracking, management, and detection of possible sources September 2011.) of failure in food safety or quality. WiFi. Wireless local area network that allows various devices to Uncertainty. Imperfect knowledge, where the probabilities are not connect to the Internet remotely. known. Many losses expected from risks inherent in modern Wireless sensor network. A group of small sensing devices, or agrifood systems are related to uncertain events for which there nodes, that capture data in a given location and send it to a are no known probabilities. base station in the network, which transmits the data to a cen- Universal access (UA). (also termed “public,” “community,” tral computer that performs analyses and extracts meaningful or “shared” access) occurs when everyone can access information. ICT IN AGR IC ULTUR E