Tag Archive for: Pakistan

Banner for Telenor's mobile banking product

Photo Credit: CGAP

As written in this blog before, there has been continued innovation in the mobile banking sector in developing countries this year. But, as surmised by CGAP, there is a greater need to find a balance of products that meet the specific needs of those who traditionally have not  had  access to formal financial services. While mobile payments, transfers, credit and savings have all expanded using the branchless banking model, there has been a lack of products that provide insurance via mobile phones. That is not to say that microinsurance has not been available in the past. But its availability came from the social sector side, instead of the private side. But there has been a shift as the business case becomes more valuable to both insurers and mobile network providers alike.

Just over a year ago, Swiss Re, re-insurance company, stated that the market size for microinsurance for those making under $4 a day in developing countries totals $40 billion. For businesses, that is a tough opportunity to miss. But simply because the market is there does not make it a profitable opportunity. Many of the targeted customers live in rural regions and have never purchased insurance. With a lack of access and knowledge, the case for profitability would need to include a large upfront investment. But technology and innovation can help to fill in those access and knowledge gaps. According to a recent report by Accenture entitled “Succeeding at microinsurance through differentiation, innovation and partnership,” technology offers real-time connectivity, flexibility and scalability which will help insurance companies to reach new customers in emerging markets. With an estimation of 2.3 billion people who are low-income and need to protect their income and assets, Accenture argues that insurance companies need to view these potential customers as “tomorrow’s premium prospects.” A clear example of this is the millions of individuals who have rose out of poverty through the economic prosperity in China and India over the last decade. By providing products that fit the needs of low-income customers, companies can build brand loyalty and reputation in these regions and reap the benefits as their customers improve their economic state.

As stated in the report, the need to leverage technology in order to reach the customers will be key to creating the short and long term business cases. By permitting customers to purchase and/or manage their accounts via mobile phone, this allows for the business structure to be profitable in the short-term. At least that would have to be the rational thinking as MNO (mobile network operators) are partnering with banks and insurance providers to offer a suite of financial service products (including microinsurance) to their customers.

Two Recent Examples

As a part of a larger suite of products, Airtel Ghana has partnered with uniBank Ghana Limited and Star Microinsurance to provide insurance free-of-charge to Airtel’s subscribers using their mobile money product. As long as the customer maintains an average minimum balance of GHC 5 (roughly $2.84) at the end of every month, they, along with their direct family, will be covered by insurance. Airtel Ghana sees the partnership and new products leading to an improved return on assets, an increase in the customer base and the creation of a one-stop shop for uniBank clients. But one of the challenges will customers registration as an individual must have a valid photo ID and complete an application along with having an Airtel SIM card.

In Pakistan, the MNO Telenor also will be releasing a free microinsurance product through Easypaisa, a branchless banking services company. Easypaisa was created in 2009 by Telenor Pakistan and their Tameer Micro Finance Bank. The free life insurance will be provided through Easypaisa and in partnership with Adamjee Life Insurance Company Limited (also located in Pakistan).

As you can see, mobile technology and the focus of creating value-added service by MNOs has increased the access to microinsurance in developing nations. Even in Kenya, insurance associations are pushing their members to utilize mobile phones in order to reach clients in new and untapped markets. In the push to increase access to financial services, the business cases for microinsurance are being shaped around mobile technology. And amazingly enough the insurance is being provided for free.

Farmer with Mobile Phone

Photo Credit: OpenIdeo

Let’s imagine the state of the global food security in the next 3-5 years, if rural women decide to back out of agriculture and food production today? Secondly, let’s visualize how access to information and communication technologies (ICTs) by rural women could reverse the negative impacts that this could make on the globe – that is the magic!

Rural women in most of the developing world play an indispensable role in improving the quality of life through agriculture, food production, processing and decisions concerning nutrition and diet. According to the United Nations Food and Agriculture  Organization (FAO), over two thirds of all women in Africa are employed in the agriculture sector and produce nearly 90% of food on the continent. As the world recognizes the importance of rural women on the International Day of Rural Women (2011), I would like to highlight some of the key roles that rural women play across the globe in sustaining life. The piece concludes with the ‘envisioning’ of ICTs to improve the current deplorable conditions of these rural women. While each of these cases highlights the “role” of rural women in agriculture, they also inform the public (in general) and our policy makers (in particular) about the plight of this hardworking social group within our society.

In Bangladesh, rural women are known for their traditional role in a wide range of agricultural activities including post-harvesting, cow fattening and milking, goat farming, backyard poultry rearing, horticulture, and food processing. Women, almost equal to the contribution of male family labor, carry out some 40-50% of field irrigation and non-farm water management.

Depending on the geographic location in Bhutan, rural women may dominate agricultural production. The population consists of 49% women, and 62% of them work in agriculture. Agriculture remains the primary economic activity in the rural areas of Bhutan in addition to other dominant activities as kitchen garden and livestock. Women considerably contribute to household income through farm and non-farm activities.

The situation is not different in India where the national rural female work participation rate is around 22%. While agriculture is a household enterprise, social norms demarcate the division of labor based on sex and age. Activities like transplanting and weeding are regarded as women’s jobs, whereas both men and women perform activities like harvesting and post-harvesting.

About 79% of Kenya’s population lives in rural areas and relies on agriculture for most of its income. The rural economy depends mainly on smallholder subsistence agriculture, which produces 75% of total agricultural output. The poorest communities are found in the sparsely populated arid zones, mainly in the north and made up of households headed by women, herders, and farm laborers. Subsistence farming is primary – and often the only – source of livelihood for about 70% of these women.

In Rwanda, women account for about 54% of the population, and many households are headed by women and orphans. Agriculture remains the backbone of the economy contributing an average of 36% of total GDP, and employs more than 80% of the population. Rural livelihoods are based on agricultural production system that is characterized by small family farms, practicing mixed farming that combines rain-fed grain crops, traditional livestock rearing and some vegetable production and dominated by women.

A substantial proportion of Nepalese women (40%) are economically active. Most of these women are employed in the agriculture sector, the majority working as unpaid family laborers in subsistence agriculture characterized by low technology and primitive farming practices. As men increasingly move out of farming, agriculture is becoming increasingly feminized in Nepal.

In Pakistan, women are key players in the agriculture sector, which employs almost 12 million women in the production of crops, vegetables and livestock. The cotton crop, accounting for half of national export earnings, depends heavily on female labor. Women have the exclusive responsibility for cotton picking, exposing themselves in the process to health hazards emanating from the intensive use of pesticides.

In Sri Lanka, about 80% of the population lives in rural areas in which women play an important role in the agriculture sector. About 42% of the female labor force is engaged in agricultural activities. Gender roles in slash and burn cultivation, rice paddies and home gardens vary according to the cultivation practiced in these systems of production. Women take on activities related to transplanting, post-harvesting and household level processing of home garden produce.

The agriculture sector of Ghana contributes about 33.5% of GDP and remains the country’s major engine of economic growth. Over half the country’s population lives in rural areas. About six in ten small-scale farmers are poor, and many are women. Women bear heavy workloads. In addition to their domestic chores, they are responsible for about 60% of agricultural production. More than half the women who head households in rural areas are among the poorest 20% of the population.

In Côte d’Ivoire, most of the country’s poor people are small-scale farmers. They face problems of market access, low prices for export crops and inadequate basic social services. Rural women, who lead the sector, have limited or no decision-making power over the allocation of land, and they are dependent on men for access to land. Yet gaining access to land is crucial for these women because their livelihoods depend largely on the production of food crops.

In Indonesia, women represent the mainstay of rural households, providing family as well as farm labor. Agriculture accounts for the highest share of rural employment. Since most rural households control small amounts of land or have no land at all, rural women often seek to supplement household income and food security through off-farm employment in small and medium enterprises, some of which have links to agricultural production.

The East African country of Ethiopia, has about 12.7 million smallholders who produce about 95% of agricultural GDP under extremely vulnerable conditions such as drought and other natural disasters. Households headed by women are particularly vulnerable. Women are much less likely than men to receive an education or health benefits, or to have a voice in decisions affecting their lives.

Poverty in the Sudan is deeply entrenched and is largely rural. Poverty particularly affects farmers who practice rain-fed agriculture. It is more widespread and deeper in rural areas dominated by women and children and in areas affected by conflict, drought and famine. In general, small-scale farmers and herders in the traditional rain-fed farming and livestock sectors are poorer than those in the irrigated agricultural sector.

Tanzania has about 85% of its poor people living in rural areas and relies on agriculture as their main source of income and livelihood. Within the agriculture sector, food crop producers who are mainly women, are generally poorer than cash crop farmers, but both operate under cyclical and structural constraints and are subject to frequent natural calamities.

Despite all these contributions of women to agricultural sector under the aforementioned harsh conditions, their role has tended to be seen as secondary to that of men. Unfortunately, the opportunities offered by ICTs in the digital age, are not immediately available to the poorest of the poor – who are mostly ‘rural’ women. Rural women in most developing countries face important constraints with respect to ICTs. Some of these include the limited time availability to participate in training and use of ICTs due to the nature of their role at home, low literacy level, minimal access to technology such as mobile telephones or computers, and social and cultural stigma that goes with the social group.

Notwithstanding, there is an increasing body of evidence that shows how ICT is contributing positively to women’s socio-economic empowerment. A range of ICT models have been used to support the empowerment of women all over the world and there is evidence to show that ICTs have improved women’s access to information, and provided them with new employment opportunities.

While the Food and Agriculture Organization (FAO) estimates that giving women the same access as men to ‘agricultural resources’ could increase their farm production by 20-30%, I would like to state that giving women same access as men to “ICTs” could increase their farm productivity by 20-30%.

Photo Credit: Stop TB Partnership

Earlier this month, the Indus Hospital in Karachi, Pakistan reported a substantial increase in Tuberculosis (TB) detection rates after the start of a program that uses mobile technology and financial incentives to get people to test for the disease.

Since the implementation of the program in January 2011, reported TB cases more than doubled at the hospital. Doctors reported a total of 420 cases in the first quarter of 2011, up from 200 in the last quarter of 2010, before the program was in place.

The program is anchored by a financial incentive scheme and use of mobile technology. In the program, doctors and community health workers who screen for TB are rewarded with a financial incentive through their mobile banking account. Health professionals are rewarded based on both the number of sputum samples that they collect and the number of patients that test positive for active TB following sputum test results.

Mobile banking centers that have emerged in Karachi make this program possible. Health professionals use SMS to send their TB data to the Indus Hospital TB Reach mobile data collection system and in return receive a text message which tells them how many cases they have helped to detect. The incentives are then tabulated and distributed at the mobile banking centers on a monthly basis by the data collection system, called OpenMRS Mobile.

Tackling TB is a big deal in Pakistan and the South Asian region as a whole. According to estimates by the World Health Organization, Pakistan developed nearly 300,000 new cases of TB in 2009, making them 8th on the list of countries most burdened by TB. Case detection is imperative in treating TB because according to TB Reach, for every 10 additional cases detected, an estimated 5 lives are saved and 100 infections are prevented.

The Indus Hospital received a grant from the Stop TB partnership’s TB Reach program. The TB Reach program focuses on promoting increased case detection of TB cases, ensuring their timely treatment, all while maintaining high cure rates within the national TB programs. Working in two “waves,” the first wave targeted 19 countries with $18.4 million worth of funding. The project at the Indus Hospital in Karachi is a product of the first wave. Under its Wave-2 funding, TB Reach has approved US$ 31 million for 45 projects in 29 countries.

The Indus Hospital program’s success has caught local attention as the Indus Hospital health workers are now training local private general practitioners on TB screening and detection. Furthermore Indus Hospital has launched a communications campaign complete with billboards, posters and local cable television ads that encourage people to get tested for TB. The Indus Hospital, also Pakistan’s first hospital to go paperless, hopes to expand the program nationally and even beyond.

Pakistani Prime Minister Syed Yusuf Raza Gilani held a press conference on Tuesday, declaring that ICT access and use is vital to the development of Pakistan.  Given recent modifications in the allocation and use of USF funds in Pakistan, Gilani’s strong support for ICT investment is particularly noteworthy.

At the 24th Board Meeting for USF Pakistani, presiding Gilani stated that ICTs potential could not be overemphasized in terms of socio-economic development and job opportunities.  He went on to explain that the ability to communicate in the information driven era was a basic human right.  These are strong words, especially in light of current debates about the Internet as a human right at the UN and amongst practitioners.

Gilani’s support comes just weeks after Pakistan’s USF announced an agreement with national telecommunications consultant Pakistan Telecommunications Company Limited (PTCL) to “promote development of telecom services in underserved areas.”  In the partnership, PTCL will help USF to meet its targeted goals, advancing Gilani’s agenda of providing IT access as a human right.

Gilani

Photo Credit: The Express Tribune News Network

 

The USF-PTCL partnership to focus on the underserved is important to the success of Pakistan’s efforts to provide ICT access to all its citizens.  According to other reports, however, previous USF funds in Pakistan were not utilized due to the Prime Minister’s failure to attend meetings with the board and approve spending for the entire last year.

The ICT industry in Pakistan has major changes as of late.  USF Pakistan terminated a contract with telecommunications giant Telenor, citing security concerns that limited project completion.  Another project, to provide fiber optic cables to the Balochistan region, was approved this week.  And Telenor and Boston Consulting Group also completed a study finding that mobile financial services could increase the GDP by 3%.

USF funds disbursement is not a problem unique to Pakistan.  In fact, just last month, reports circulated about the U.S. FCC’s failure to disburse USF funds.  Despite this, however, public-private partnerships (PPP) offer hope for more effective USF fund usage.

 

This article written by Babar Bhatti discusses how public policy is being used to drive long term benefits for society, the Universal Service Fund of Pakistan has made the use of renewable energy compulsory for all Base Stations funded by USF

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