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Public ICT Center for Rural Development Inclusiveness, Sustainability, and Impact

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Public ICT Center for Rural Development Inclusiveness, Sustainability, and Impact Public ICT Center for Rural Development Inclusiveness, Sustainability, and Impact Cybercafés play a key role in providing internet access to developing countries. This paper examines the challenges of internet connectivity in rural and remote areas and how cybercafés now serve as a model behind government efforts to set up telecenters to extend internet connectivity to rural communities. Find out why telecenters remain popular as highlighted in two case studies: a government run initiative in the Philippines and a public–private partnership in Sri Lanka. About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to a large share of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. PUBLIC ICT CENTER FOR RURAL DEVELOPMENT INCLUSIVENESS, SUSTAINABILITY, AND IMPACT ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK www.adb.org PUBLIC ICT CENTER FOR RURAL DEVELOPMENT INCLUSIVENESS, SUSTAINABILITY, AND IMPACT ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2017 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved. Published in 2017. ISBN 978-92-9257-895-4 (Print), 978-92-9257-896-1 (e-ISBN) Publication Stock No. TCS178927-2 DOI http://dx.doi.org/10.22617/TCS178927-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Notes: In this publication, “$” refers to US dollars. ADB recognizes “China” and “Korea” as the People’s Republic of China and the Republic of Korea, respectively. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda iii Contents Tables and Figures vi Abstract viii Acknowledgments ix Executive Summary x Abbreviations xvi Introduction 1 Part I. A Framework for Understanding the Rural ICT Center Challenge 3 A Common Objective 3 Sustainability, Resilience, and Impact 3 The Rural ICT Center Sustainability Challenge 4 High Costs of Service Supply 5 Insufficient Demand 6 Program Features 7 Funding and Incentives 7 Location Choices 8 ICT Center Services 8 Links between Program Features and Constraints 8 Part II. Program Types and Evidence Used 10 Private for Profit Initiatives 14 Cybercafés 14 S. Kumars 14 e-Choupals 14 n-logue 15 Government-Run Programs 15 Chile’s BiblioRedes 15 Philippines Community e-Centers Case Study 15 iv Contents Public–Private Partnerships 20 Chile’s Experience with Reverse Auctions 20 Akshaya 21 Pusa Internet 1 Malaysia 22 Bangladesh’s Union Digital Centers 22 Sri Lanka’s Nenasala Case Study 22 Part III. User-Customer Profile 26 Age 26 Gender 27 Rural–Urban Divide 28 Occupation and Income 29 User Profiles Drive ICT Center Service Offer 31 Part IV. ICT Center Services 32 On-Site Services 32 Communications: Effect of Mobile and Home Use on ICT Center Demand 32 Basic Information and Communication Technology Skills Training 34 Office Services 38 Other Services 38 Services Using Content Produced Off-site 38 e-Government 38 Remedial Education 41 English Language Training 42 Agriculture 43 Health 44 Part V. Rural ICT Center Sustainability, Resilience, and Impact 45 Financial Self-Sustainability 45 Philippines 45 Sri Lanka 47 Resilience 49 Philippines 49 Sri Lanka 49 Effect of Location and Population on Resilience 51 Resilience and Center Type in Sri Lanka 53 Program Overreach in Sri Lanka? 53 Impact of Sri Lanka’s Nenasala Program 56 User Perceptions 56 Operator Assessments 57 Impact and Closure Rates 58 Contents v Part VI. Recommendations: ICT Centers for Rural Development 59 Should Rural ICT Center Programs be Supported? 59 Sustainability 59 Risks 59 Center Type 60 Location 61 Services 61 Access to Computers and the Internet 61 Basic Information and Communication Technology Skills Training 61 Remedial Education 62 English Language Training 62 e-Government 63 Agriculture 63 Gender Balance 63 Service Fees 64 Time Limited Subsidies 64 Digital Inclusion and the Future of Rural ICT Centers 64 References 65 vi Tables and Figures Tables 1 Distance Traveled to Cybercafés in Selected Countries, Various Years 7 2 ICT Centers—Typical Functions and Agents Involved 11 3 Institutional Arrangements of Sample Rural ICT Center Programs 12 4 Basic Features of Select Rural ICT Center Programs 13 5a Philippines—Select Features of CeC or Tech4ED Centers Visited in Southern Luzon 18 5b Philippines—Select Features of CeC or Tech4ED Centers Visited in Western Visayas 19 6 Philippines—Basic Features of the Municipalities where Centers Visited are Located 20 7 Chile—Rural Telecenters Sponsored in 2002 Using Reverse Auctions, by Type of Institution Winning Bids and Status on 26 December 2005 21 8 Sri Lanka—Distribution of Nenasalas Established by Type and Location 25 9 Public Shared Access Users by Age in Bangladesh, Brazil, Chile, Ghana, and the Philippines 26 10 Age and Gender of Rural ICT Center Users in Malaysia and Sri Lanka 27 11 Income, Population, and Internet Penetration in Brazil, Chile, the People’s Republic of China, India, Malaysia, and Peru 29 12 Digital Literacy Training in BiblioRedes, Chile; and Akshaya, India 35 13 Philippines—Digital Literacy Training in Select Showcase Community e-Centers 36 14 Philippines—Common Types of Digital Literacy Trainees 36 15 Sri Lanka—Number of Operating, Sufficient, and Insufficient Centers Providing Various Services 37 16 Bangladesh—Services Offered by Sample of 19 Union Digital Centers in Jessore 39 17 Online Government Content—United Nations Indexes and Rankings of Select Countries, 2004 and 2014 40 18 Philippines—Mina Center Revenue and Expense, July 2011–December 2014 46 Tables and Figures vii 19 Philippines—Mauban Center—Revenue and Expense, January 2014–June 2015 (pesos) 46 20 Sri Lanka—Operating Centers Installed in 2003–2011, by Type, Location, and Income Status 48 21 Sri Lanka—Operating and Closed Centers as a Proportion of Installed in 2003–2011, by Type and Location 50 22 Philippines—Distribution of Municipalities by Population, Urban Population, and Income Class 51 23 Sri Lanka—Number of Centers and Closure Rates of Mature Nenasalas, by Population and Location, 2003–2011 52 24 Sri Lanka—Mature Common Type Nenasalas in Four Locations 53 25a Sri Lanka—Number of Common Centers by Type, Location, and Establishment Period 55 25b Sri Lanka—Closure Rates of Common Centers by Type, Location, and Establishment Period 55 26 Sri Lanka—User Perceptions of Impact 56 27 Sri Lanka—Important Outcomes of Nenasala Program According to Users 57 28 Sri Lanka—Operator Assessment of Achievement of Nenasala Program Objectives 57 Figures 1 Distribution of Public Access Venues in 25 Landscape Study Countries, by Venue Type 1 2 Rural Telecenter Sustainability Challenge and Program Features 5 3 Gender Distribution of Users in Select Urban Cybercafés 28 4a Peru—Distribution of Lima’s Internet Users by Socioeconomic Group, 2017 30 4b Peru—Places of Access Used by Different Economic Groups in Lima, 2007 30 5 People’s Republic of China—Millions of Internet Users by Year and Access Mode; and Frequency of Mode Use, 2006 and 2015 33 6 Philippines—Malvar Community eCenter on Wheels 37 7 Philippines—Alternative Learning System Training in Malvar Community eCenter using eSkwela Software 42 8 Farmer Videoconferencing with Agricultural Expert, 2005 44 9 Cumulative Number of Nenasalas Established in 2003–2011, and Number Still Operating in 2014–2015 50 viii Abstract Cybercafés are self-sustaining and common in urban areas. In most countries, the information and communication technology (ICT) penetration frontier lies in rural areas, precisely where commercial venues are unviable. Cybercafés have served as a model behind government efforts to set up one form or another of ICT centers to try to bring the benefits of ICT to rural communities.
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