ICT and Development

1. ICT and Development April 1, 2008

2. Guest Presentation by Faheem Hussain, EPP Ph.D. student

3. ICT and Development • Also called ICT for Development • “ICT4D”

4. Development in Context • 50-60 years ago, the world was VERY different • Much of the world was not independent • Much lower population • Much greater disparities • Urban/rural • By ethnicity or sub-group • Limited granular data

5. Development Trajectories • Post WWII • Intl. Agencies + the state = big development • Rapid industrialization, e.g., Japan/USSR • 1960s/70s • State guiding the economy to the provision of “basic needs” • Lots of “appropriate technology” ideas • 1980s • State is incompetent, let markets take care of things • Economies liberalize

6. Development Trajectories (cont.) • 1990s • Markets are central • BUT liberalization/globalization may bypass the poorest, so need civil society to increase “participation” • USSR falls apart, liberalization accelerates • 2000s • Market to the poorest: consumer = citizen. • IT is everywhere. • State must be guarantor of private interests

7. Where did (does) Technology Fit In? • Incremental changes within processes • Changes to processes within economy (e.g., Services/Knowledge Economy) • ICT • Large investments and growth • Infrastructure buildout • What were large US buildouts? When? By Whom? • US Govt. played an emorous role, e.g., Tennessee Valley Authority (TVA)

8. Internet - Innovation at the Edge • Some innovation is expensive • Pharmaceuticals • Chip design (and building) • Some innovation can be done in the archetypal “garage” or with limited resources • Firefox (originally) • Podcasts • RSS (co-invented by a 14-year old) • GIS Mashups (e.g., Google maps + Craigs List) • Street theaters and songs for HIV education • The Internet by design is meant to allow innovation at the edge • “Dumb” cloud in the middle

9. ICT4D - Scholarly Work • Earlier, was segmented by domain • Developmental Economics • Energy, Healthcare, etc. • IT • Newly emerging field of ICT and Development • Nascent • Many “events” are not rigorous (e.g., WSIS) • Lack of metrics is a serious challenge • ICTD2006, ICTD2007, etc. (we are helping co-organize) are important efforts • WWW conference now has an emerging regions track • A few journals are there (e.g., ITID)

10. Field Work • Theory vs. Practice • “In theory there is no difference between theory and practice. But, in practice, there is” – Jan L.A. van de Snepscheut

11. Student Activities at CMU • TechBridgeWorld • www.techbridgeworld.org • Has opportunities for student research and participation • SURG • Student Undergraduate Research Grant …and more

12. ICT for Sustainable Development • Challenges of sustainable development • Is ICT just “Toys for rich”? • Atoms, bits, and more – Going beyond the digital divide • Case examples • Educational programs to meet the challenges • Interdisciplinary • Why this is difficult (but important)

13. Applies an economic filter as to what you’d spend money on “good projects” vs. “bad projects” What other filters/frameworks might one apply to determining projects for global sustainability? Timeframe Likelihood of success Cost-benefit analysis (CBA) Copenhagen Consensus 2004

14. Millennium Development Goals (MDGs) • Goals for development globally adopted after the Millennium Summit • Specify quantitative targets over ~15-20 years • Most deal with basic human development • Nothing directly relating to Information and Communications Technology (ICT), or even infrastructure

15. Millennium Development Goals

16. MDGs Don’t Mention a Number of Things • ICT • Only peripherally mentioned in Topic 8 • Doesn’t even mention Energy • Wealth (GDP) • Doesn’t lead to a composite measure of Human Development • E.g., HDI – Human Development Index, which spans literacy, infant mortality, etc.

17. Enabling ICT Human-Computer Interaction, Sensors, Communication, Databases/Information Systems, Controllers/Actuators/Effectors Themes Infrastructure Development Basic Human Needs and Development Economic Development Empowerment Energy & Transportation Healthcare Job Creation & Poverty Reduction Alienation, Peace, & Prosperity Agriculture Education Transparency, Democracy, & E-Governance Water & Sanitation ICT and Development (Groups)

18. Is ICT Even a Factor? • Services are the largest portion of global economy (over agriculture and manufacturing), SO • If you’ve got a in your hand… • …then everything starts to look like a

19. Bill of Rights for the Information Age “Getting the right information to the right people in the right language in the right timeframe in the right level of detail” Jaime Carbonnel (1997) • To this, we can add “for the right value” • Challenges • Subjective • Lots of competing goals

20. What would a Farmer do with ICT? • Needs seed, soil, water, fertilizer, money (credit), etc. • But, with information, could • Know what to plant • When to plant • How to manage • Reduce diseases • Optimize sales (negotiation, supply-chain) This is starting to look like a Decision Support System (DSS)

21. (Barely) Making a Living • How do we obtain fair prices for farmers? Source: Guardian

22. Impacts of Technology - Productivity Source: Lal (2003) • Advanced technologies include sensors, drip irrigation, robotics, etc. • Even simple laser soil levelers can be valuable for saving water

23. Allocation of resources to an MDG sector and ICT Allocation of resources to ICT in the sector Allocation of resources to the sector ICT-related increased efficiency in delivering Non ICT-related increased efficiency in delivering Impact on this MDG sector Increased efficiency in delivering in the sector ICTs and MDGs Source: World Bank

24. Investing in ICTs for Development • Simple RoI calculations may be difficult • Greatest “bang for buck” may be direct, e.g., distributing condoms • But education plays an enormous role • ICT’s best promise is in increasing efficiency, transparency, and empowerment • Effects may be disperse and hard to appropriate • If a government kiosk is established, is it Min. of Communications that should pay? Or Min. of Education? Healthcare? Commerce? • Investments may be modest • A telecom network is 10-100x less expensive than roads

25. Infrastructure Development Basic Human Needs and Development Economic Development Empowerment S S Advanced Urban Transport Disaster / Weather Forecasting and Warning Distance and e-Learning DB/IS DB/IS DB/IS CTRL C HCI HCI C CTRL C DB/IS Electricity Theft Reduction Health Monitoring and Epidemiology Agricultural Price Discovery E-Governance S DB/IS DB/IS S HCI C HCI C C CTRL C HCI DB/IS S DB/IS DB/IS Electricity Load Management National and Global Inclusiveness Remote Medical Detection / Diagnosis Expanding Markets for Rural / Traditional Goods S DB/IS HCI HCI HCI HCI C C C C CTRL S S DB/IS Digital Libraries Water Management Drip and Advanced Irrigation DB/IS HCI C C C CTRL CTRL Enabling ICT Sensors, Communication, Databases/Information Systems (DB/IS), Controllers/Actuators/Effectors (CTRL), Human-Computer Interaction (HCI) Incorporates issues of: OS, Protocols, Robustness, Software, Hardware, Power Management, Regulation, Security, etc. Development Needs Drive ICT Research (examples only, non-exhaustive)

26. e-Choupal Agriculture Supply-Chain Power Connectivity Training Content Helps millions of Indian farmers; is a model for replication worldwide

27. The e-Choupal System • ICT Infrastructure: • Computer • Internet • Multimedia • Broadband • Smart Card • VSAT • Solar Power • Physical Reach: • Choupals within walking distance • Multipurpose Warehouse hubs within driving distance • Key Intermediaries: • Sanchalak (1 per cluster of 5-6 villages) 1500/state • Sanyojak (1 per group of 10-15 choupals) 100/state • ITC (support the farm produce marketing end) Committed Multinational

28. The Mandi Chain Transaction Costs Rs per MT Trolley Freight to Mandi = 100 Filling & Weighing Labour = 70 Labour Khadi Karai = 50 Handling Loss = 50 Farmer Incurs 270 Commission to Agent = 100 Cost of Gunny Bags (net) = 75 Labour (Stitching, Loading)= 35 Labour at Factory (Unload) = 35 Freight to Factory = 250 Transit Losses = 10 Processor Incurs 505 Source: ITC 775 Total Chain

29. The eChoupal Chain Transaction Costs Rs per MT Trolley Freight to Mandi = 100 Filling & Weighing Labour = 70 Labour Khadi Karai = 50 Handling Loss = 50 Farmer Incurs 270 Sanchalak 50 Commission to Agent = 100 Cost of Gunny Bags (net) = 75 Labour (Stitching, Loading)= 35 Labour at Factory (Unload) = 35 Freight to Factory 100 = 250 Transit Losses = 10 Processor Incurs 505 185 Source: ITC 775 185 Total Chain

30. e-Choupal • Technologies were largely off the shelf • Information was free to farmer • ITC and Sanchalak only make money if he/she chooses to transact • Trust was a key ingredient to the success of e-Choupal • Information is only one ingredient – ITC provided the supply chain to actually fulfill the transaction (warehouses nearby) • They are extending the infrastructure for other uses

31. Successful Development • Sustainable • Institution and capacity building • Stakeholder participation • Empowerment • Feedback and flexibility • Transparent metrics