Photo Credit: The Economist

I participated in a very informative event this week in Washington DC where a researcher was sharing his experience on “Weather-Index based Crop Insurance for Smallholder Farmers in Ethiopia”. As I listened to the discussion as an agricultural information specialist, my concern was what is the role of mobile technologies in this?

According to the researcher, Dr. Shukri Ahmed a Senior Economist, Food and Agriculture Organization (FAO), the concept of crop insurance has a long history from Asia with the leadership of India. However, due to the challenges associated with insurance in general and access to credit to smallholder farmers, the idea somehow waned. But according to Index Insurance Innovation Initiative (I4), there is overwhelming evidence that uninsured risk can drive people into poverty and destitution, especially those in low-wealth agricultural and pastoralist households. There is therefore a re-emergence of insurance for smallholder farmers across the globe.

The speaker gave a detailed background to the study in Ethiopia and the importance of partnership in the design and implementation of the study. The difference, however, with this new approach to crop insurance for smallholder farmers is the use of index (indices) to support the insurance service, and intervention against emergency situation. But at the same time the study is targeting farmers that are relatively better off and who are already engaged in the market but are not investing in insurance due to the anticipated risks. The outcome of the pilot study is expected to help protect the livelihoods of smallholder farmers, who are vulnerable to severe and catastrophic weather risks particularly drought, enhance their access to agricultural inputs, and enable the development of ex-ante market based risk management mechanism which can be scalable in Ethiopia.

Dr. Shukri Ahmed, Senior Economist at the United Nations Food and Agriculture Organization (FAO)

Unbanked or Branchless Services

Adding another concept to an already very complex issue that tries to combine weather, insurance, credit/finance, and smallholder farming, should be carefully considered. But the key question is whether mobile technologies can play a catalytic role in this entire complex system?

Among the reasons for choosing a given area for the pilot study, include availability of Nyala Bank branches, the vulnerability of yields to drought, the availability of nearby weather stations, and the willingness of cooperatives in the area to purchase the new product. As the pilot study progresses, the possibility of scaling the project across the country is high. But what will be the implications for the absence of banks in the rural farming communities in a country that has an approximately one bank loan per 1000 adults? Can Mobile Banking help understand why smallholder farmers under-investment in agriculture?

A success story of mobile banking by  the Dutch-Bangla Bank Limited (DBBL) in Bangladesh was recently highlighted by the GSMA Mobile Money for the Unbanked. Interestingly, the story pointed out how DBBL learnt from Kenya’s famous mobile money program M-PESA. Kilimo Salama (KS) is an innovative index-based insurance product that insures farmers’ inputs (seeds, fertilizer, pesticides), and outputs (crop harvests), in the event of drought or excessive rainfall. It uses weather stations to collect data and implements SMS-based mobile technologies to administer and distribute the payouts. Mobile technologies will not only help with the financial transactions such as seen in Kilimo Salama’s case but also in support of the weather stations for timely and accurate decision making for pay-outs.

My conversation with Dr Shukri about the possibility of integrating mobile money into the project to address the challenge of absence of banks in rural Ethiopia, revealed the huge untapped market for Mobile Banking in that country. However, the success of such services depends on a convincing business case for both the banks and Mobile Network Operators (MNOs). Most importantly, however, is the state of telecommunication infrastructure and regulation in the country. These need to be in place for services and applications to thrive. With this huge investment

Outside Ethiopia, I believe it is time for African countries to take advantage of the increasing mobile phone penetrations in the continent beyond social networking to general development applications such as for agriculture, health, education, and rural development.

To listen to the audio recording of the event, visit Center for Strategic and International Studies (CSIS).

Photo Credit: The World Bank

There is no doubt that the current surge in mobile innovations for agricultural development is defying the normal progressive growth of agricultural technologies over the past decades. For centuries, innovations in agricultural technologies have been progressively slow. The emergent of information and communication technologies (ICTs) and their innovative use to support agricultural extension and advisory services has, however, changed the history forever. According to the World Bank report Information and Communications for Development 2012: Maximizing Mobile, close to 6 billion mobile phones are in use today, a jump from less than 1 billion subscriptions in 2003. About 77% of the 6 billion subscriptions is located in the developing nations in which 70% of the world’s poor whose main source of income and employment comes from the agricultural sector.

Agricultural Technologies and the Future In her 1991 paper “Beyond Tractors: The History of Technology in American Agriculture,” Deborah Fitzgerald, Professor of the History of Technology in the Program in Science, Technology, and Society (STS) at MIT, argued that the history of agricultural technology is in a very nascent stage of development, and it is difficult to predict the outlines of a more orderly, systematic future. Barely 20 years after her observation, the developments in mobile technology for agriculture have confirmed her argument. Little is known about any prediction of the current growth of mobile technologies, especially in the world’s poorest regions. It is also becoming more difficult to predict what the market will look like in the next decade given the fast pace at which the technology is growing.

So Why This Sudden Spurt? The 2nd chapter of the World Bank report referenced above titled “Mobilizing the Agricultural Value Chain” has identified a number of factors that are driving the increased adoption of mobile phones for agriculture in the developing nations:

• Improved accessibility and affordability through expansion of mobile networks.
• Increased capacity or bandwidth availability on mobile networks as the technology evolves.
• Increasing data-enabled mobile devices with increasing affordability.
• Innovative development of remote wireless sensors and identification technologies.
• Increasing availability of specialized mobile services targeted to specific agricultural functions.

These and other factors, such as wide ownership of mobile phones, instant and convenient service delivery, increasing functions, and falling prices of mobile handsets, will continue to drive its adoption.    

Looking into the Future of Mobile Innovations for Agriculture

Photo Credit: American Public Health Association

According to USAID, innovations must lead to substantial (not incremental) improvements  in addressing development challenges. But this does not seem to be the case in the mobile agricultural sector. The role of mobile agricultural projects in addressing development challenges in the developing nations is yet to be empirically tested in most countries. Anecdotal results have been reported here and there, but there is little to cite about any substantial impact on agriculture and rural development. An interesting trend with the mobile innovations for agriculture pointed out by the report is that, the applications are usually designed locally and for specific target markets, with localized content specific to the languages, crop types, and farming methods. It continues that while these local designs may offer exciting opportunities for local content and applications development, they may also limit the economies of scale realizable from expanding from pilot programs into mass markets, potentially hindering the spread of new and promising applications and services. So while development practitioners are careful not to repeat the traditional “technology transfer” approach in the ICTs for development sector, they are also faced with the limitations of scalability of the locally developed mobile applications for agriculture.

Is Reverse Innovation a Possible Solution to Limited Scaling of Locally Developed Mobile Apps? The local app development market in the emerging economies is being boosted by the proliferation of Technology Hubs & Parks in these countries. But what are the approaches to development of applications within these hubs? How can we learn from the past challenges with technology transfer and the current scaling limitations of locally developed apps for agriculture? The concept of reverse innovation developed by Vijay Govindarajan, and Chris Trimble and explained in details with practical applications in their book, “Reverse Innovation: Create Far From Home, Win Everywhere”,  could bring these two challenges together. A key component of the concept is about building Local Growth Teams (LGTs). Within the mobile agricultural sector, LGTs comprising of ICT developers, marketing specialists, and content developers in the emerging economies with strong link with global market could be developed. This will ensure that locally developed ICTs apps with inexpensive models and limited infrastructure to meet the needs of developing nations, can be easily repackaged as low-cost innovative goods for Western buyers. This could address the scaling challenge brought up by the report and at the same time limit the traditional diffusion of technologies from the developed to developing nations.

Oversights: Mobile Solutions for R&D and Data Collection? I would like to recap my recent work on “Mapping ICTs Along the Agricultural Value Chain” for USAID’s Global Broadband and Innovations (GBI) program. Two key components of the value chain, which seem to be overlooked, are ICTs for agricultural research and development (R&D), and ICTs for data collection to inform monitoring and evaluation (M&E). Firstly, mobile technologies for agricultural R&D are emerging, but due to the traditional under-estimation and under-investment in agricultural R&D in developing countries, little attention is being paid to its potential. There is huge potential in the use of mobile technologies to support the work of agricultural researchers, agricultural science students, extension staffs, and farmers to facilitate access to scientific knowledge and exchange of information between and among these actors. Unfortunately, this has been overlooked by this important report. Secondly, mobile technologies are being used along the agricultural value chain for data collection in order to inform policy and decision-making. The report did mention briefly the importance of mobile in agricultural data collection, for example the work of Grameen Foundations Community Knowledge Worker (CKW) program in Uganda and the Reuters Market Light (RML) in India. But in addition to these programs, there are host of new mobile applications that are being used in this area that need to be acknowledged. Examples include iFormBuilder, EpiSurveyor, Open data Kit, among others. These new mobile applications are essential for the work of extension staff – both public and private to facilitate their work. Most importantly, timely and accurate data through these applications will lead to actions that will benefit the smallholder farmer in a number of ways, thereby increasing their productivity.

Conclusion The growth of mobile technologies for agriculture has outpaced the speed of past technological developments within the sector. While the invention of tractors in the 1800’s was acclaimed a significant breakthrough for agriculture, not even the green revolution in the 1900’s can be compared to the extensiveness and intensiveness of mobile technologies for agriculture. The World Bank report reference in this post has done excellent job by carefully selecting experts in the field of ICTs for development to delve into a number of cases worth following. Specifically on the second chapter that deals with mobile technologies and agriculture, I believe practitioners, researchers, technology developers, policy makers, and users of agriculture and mobile technologies should look critically into the recommendations given at the end – business models, ICT skills and the supporting infrastructure to insure the growth and sustenance of the revolution.

Ambassador-at-Large for Global Women’s Issues, Melanne Verveer. (Photo: US Dept of State)

On Monday, July 23, 2012 the Center for American Progress hosted Ambassador-at-Large for Global Women’s Issues, Melanne Verveer for a discussion on “Women’s Economic Success and Global Growth.” Amb. Verveer’s talk focused on the crucial role women play in sustainable development and economic growth worldwide. US women generate $3.5 trillion yearly, and women’s employment in developing countries contributes more to the global economy than China. By 2050, women will control 2/3 of all spending worldwide. Noting that women traditionally spend their earnings in sectors that create a multiplier effect (i.e., health, education, food), Amb. Verveer emphasized the tremendous consumer power women will wield in global markets. She also highlighted growing research that shows how countries where women’s rights are more closely equal to those of men are more peaceful and prosperous than  countries that ignore, marginalize or limit the role of women.

Amb. Verveer spoke of three main areas the State Department focuses on increasing the role and influence of women: Economic Empowerment, Women in Development, and Peace and Security.  Within the Women in Development sector, three initiatives discussed fit squarely within Integra’s areas of expertise: Feed the Future (Agriculture), Global Climate Change Initiative (Environment) and mWomen (Information and Communications Technology).

Agriculture: Women are vital to agricultural development, often making up the majority of farmers in developing countries and the backbone of agriculture-based economies. FAO reports claim that if men and women farmers had equal access to credit, training, property rights and technical inputs, yields could improve 20 to 30 percent and the number of malnourished people worldwide could be reduced by 150 million people.

Environment: Women bear the burdens of climate change disproportionately more than men. Yet women are uniquely empowered to address climate change because of their central role in agriculture, forest management, and running the home (i.e., making crucial energy decisions as pertains to energy sources used in the home).

ICT4D: Increased technological access creates opportunities for financial security and independence. With mobile access, women are able to gain information about the current market, including data on pricing and weather systems, in addition to business insights and trainings, access to support networks, and the ability to transfer and save funds. “The significance of mobile technology cannot be underrated,” said Ambassador Verveer, who emphasized both the economic and social value of mobile technology. While 350 million women still do not have access to cell phones, the State Department is working to bridge this gap in connectivity through various initiatives, including the GSMA mWomen initiative. mWomen is committed to reducing this gender gap in connectivity by 50%.

In each development sector highlighted, Ambassador Verveer reiterated that gender equality is not only smart economics, but in line with US values and “a moral imperative of the 21^st Century.” While the State Department and USAID continue to add gender guidance components to trainings and major international initiatives, true change will only be achieved once gender equality becomes institutionalized and integrated across all bureaus. Women’s rights need to be viewed as human rights essential to fostering economic growth, social stability and a more peaceful prosperity worldwide.

To view full event video, click here. To read Ambassador Verveer’s article on “Why Women Are a Foreign Policy Issue,” click here. 

Photo Credit: Danny Morgan

National Broadband Strategies (NBSs) are becoming a necessity for each nation nowadays considering the immerse benefit of such policies or strategies or plans to unlock the full potential of the broadband network and maintain an open Internet. As a result, a NBS should be seen as a social contract to develop the industry base within any country. It should aim at bringing about a stronger foundation for effective governance, private investment and more active citizenship, leading to a desirable social and economic future.

Below are the 9 points distilled from the World Bank’s Broadband Strategies Handbook and another Conference Paper by Prabir K. Neogi and Rekha Jain that reviews some national broadband strategies.

1) A National Broadband Strategy (NBS) should take an Ecosystem Approach by considering both the demand and supply of broadband: This must include a) Networks – by creating the environment to reduce barriers for international connectivity, domestic backbones, metropolitan connectivity, and local connectivity; b) Services – by providing broadband services to schools, government agencies, etc.; c) Applications – by making available e-applications and content (local) creation; d) Users – by considering Customer Premise Equipments (CPEs) and Personal Computers (PCs), and digital literacy.

2) In order for the ordinary citizen to benefit from broadband investments, a NBS of any country should aim at having the greatest economic impact on the country: This could be achieved by creating and making available broadband-enabled services and applications; and then building the capacity of users to use the broadband-enabled services and applications in a productive and efficient way.

3) NBS should describe the broadband supply chain from a topological perspective: Such a topology should take into consideration a) The international, regional, national, and local connectivity and access deployment solutions; b) The technologies for each of these segments – fiber optics, satellite, microwave, mobile wireless, and traditional copper wire; and c) The implementation issues associated with these technologies – open access, quality of service, and spectrum constraints.

4) NBS should describe demand in order to make broadband services available to the users: By clearly defining the private and public sector roles to facilitate adoption after the networks are created; go beyond the market demand to reach where demand is stifled because consumers are not aware of the benefits of broadband; where broadband is not affordable; and where broadband is not attractive or relevant to potential users.

5) NBS should aim at building the capacity of users: The presence of broadband services without the capacity of the citizens to use them may be a waste of investment. Hence capacity for citizens, businesses, and government should be build to understand, learn, and apply broadband benefits and capabilities across the economy and society: Absorptive capacity in the areas of the economy’s macroeconomic environment; the business environment; the quality of human capital; and the governance structure are key for consideration.

6) Stages of NBS: NBS should be design to include three stages: a) Promotion stage when the market is incipient and the aim will be to promote the build-out of broadband networks, encourage the use of broadband services and applications, explore options for funding the development of the strategy and address  issues associated with measuring the effectiveness of policies designed b) Oversight stage will key as competition begins to drive growth. The traditional legal and regulatory frameworks need reforms in order to address supply and demand issues with convergence of the technologies. Government’s role in creating the environment for oversight through competition policy, guard against monopolistic, oligopolistic, and unfair practices and regulate essential facilities. c) Universalization stage comes as the market matures. The role of governments is needed when market mechanisms do not meet goals for broadband access and use. This can be done through universal service and access programs. Government should also narrow or eliminate gaps between markets and the country’s development needs to allow for private-led competitive markets.

7) Scale and scope of the strategy: NBS should be seen as a component of a larger, long-term phased national economic plan for the adoption and use of ICTs to improve competitiveness and productivity. Countries such as Australia has taken a comprehensive national strategy approach that is rather supported by all levels of government. Others also have a standalone or ad hoc programs at various levels of government, to improve broadband connectivity in rural and remote areas.

8) Duration of the broadband strategy: A NBS should be developed in such as way that it is not too long that technology solutions might have radically changed, but covers a longer time frame than electoral cycles in most countries. Example of short/medium term initiatives, such as 2-3 year programs of the U.S. DOC/NTIA $4.2 billion Broadband Technology Opportunities Program/BTOP), funded under the American Recovery and Reinvestment Act of 2009. On the other hand, the Australian National Broadband Network (NBN) initiative and the Federal Communications Commission’s proposed National Broadband Plan are long term strategies extending over 5-10 years.

9) Funding and implementation model: NBS should consider the degree and nature of public sector funding and support such as direct funding, loan guarantees, targeted tax incentives. In most cases, governments are provide one-time, up front capital grants to fund the deployment of the broadband infrastructure. But the main challenge is with the provision of continuing subsidies for the ongoing operation of the network facilities which mostly may be the function of the private sector. The model of greatest interest is the Public-Private Partnership (PPP), with joint ownership of the deployed infrastructure as seen in Singapore, Australian NBN, and New Zealand.

In conclusion, there is no ‘one size fit all’ for National Broadband Strategies but a good NBS should have the following key characteristics:

a) Be  forward looking to keep up with the pace at which technology is being developed

b) Become a permanent fixture of economic development and the embodiment of a shared vision

c) Be resilient to the checks and balances brought about by politics

d) Be endorsed by all policy-makers at the time of conception

e) Demarcate respective roles of public and private sector participation, and the potential for partnerships

f)  Should contribute to demand through e-services, expertise centers, government services online, and capacity building.

Note: Key points in this post were distilled from the: The World Bank’s Broadband Strategies Handbook, edited by Tim Kelly and Carlos Maria Rossotto (2012) in preparation for the release of Broadband Strategy Toolkit as done for Telecom Regulation and National Broadband Strategies: and A Comparative Review and Possible Lessons for Developing Countries by Prabir K. Neogi and Rekha Jain (2011/12), presented in a conference in India, February 2012.

Bandwidth problems in West Africa may soon become a thing of the past when the Africa Coast to Europe (ACE) broadband submarine cable comes online this December. The US$700 million will interconnect a total of 23 countries in Europe and West Africa, including two Integra and GBI clients, Nigeria and Ghana. This massive infrastructure project aims to bring high-speed broadband internet to these developing countries in order to reduce the digital divide and serve as “a vector of social development and economic growth in Africa.”

Led by the France Telecom company, this broadband system will extend over 17,000 km to from Brittany in France to Cape Town in South Africa. Parts of Europe and 16 West African countries will be interconnected by the submarine cable. Connectivity will extend even to the landlocked nations of Mali and Niger who will be connected via their own terrestrial links.

The cable itself has an initial 1.92 terabytes per second (Tb/s) capacity that can be upgraded to a whopping 5.12 Tb/s. ACE will use cutting edge fiber optic technology developed by Alcatel-Lucent that offers a higher quality of high-speed broadband than satellite at a lower cost. Utilizing new wavelength-division multiplexing (WDM)technology, the ACE stations can be upgraded without any actual modifications to the cable itself. This is a significant increase in the broadband capacity for these countries. Gambia for example, is estimated to have an increase in capacity by a factor of 16.

Increasing bandwidth capacity is crucial for enabling increased broadband penetration rates within a county. In 2011, the Broadband Commission for Digital Development issued a report that identified broadband as a “tool of unprecedented power” in helping countries meet the millennial development goals in 2015. Additionally, a report from the World Bank showed that a 10% increase in broadband penetration in developing economies correlates with a 1.38% contribution to economic growth.  With ACE online, West Africa will be able to access a plethora of new opportunities.