Subhash Bhatnagar Indian Institute of Management, Ahmedabad Empowering the poor through telecenters in India: Critical Issues for Sustainabilty Subhash Bhatnagar Indian Institute of Management, Ahmedabad

Telecenters Projects in India

Report Card on Gyandoot Declared successful after one year, based on anecdotal evidence. Being expanded with support from Media Lab Asia -CORDECT Survey of 31 users, 41 non users, 28 kiosks Offers 22 services: Mandi prices (30%), grievance (13%), certificates promised in 8 days (25%) A user fee of Rs 10-15 for services Kiosks offer training, copying, word processing services for bulk of revenue

Doubtful Economic Viability Dwindling attendance at Kiosks. 5602 (85% males) over 2 years logged in 18 kiosks. Attendance averages to one a day per kiosk Handle very small proportion of any type of transactions Investments of Rs 2.5 million for network. Kiosk needs Rs 75K worth of equipment Solar power will need Rs 75 K of investment Operating expenses of Rs 1200 pm Average revenue from user fee Rs 150 pm/ kiosk

Sustainability Risk Factors Change of initial team. Not a part of state wide program. Frequent changes in administrative leadership Hurried implementation and/or lack of resources. Many Kiosks not functioning. Problems of power outage (6-72 hours), connectivity(50%) Inadequate value delivered to clients Survey reports unsolved grievances and price data not updated. Lack of awareness amongst poor( 80% non users) Not implemented in a context of wider administrative reform Change based on tighter monitoring and supervision Close identification of a project with a single champion Back end not computerized or reengineered. Needs visits to district and speed money for collection of documents.

Learning from Evaluations Success is measured as Implementation and use sustain over long periods Measurable benefits delivered to all stakeholders Success can not be measured in first 1-2 years. Projects are still vulnerable. Success needs to be measured through independent evaluation seeking formal feedback from all stake holders Awards instituted by multilateral agencies, Governments, professional bodies to rate egovernment have been dysfunctional: Not based on systematic evaluation. Provide incentive for over projection of achievements Premature stamp of success distracts from acknowledging short comings and correcting them

Key Learnings Small centers in rural areas Reliable and robust-technology is necessary but not sufficient Government service can be a killer application Delivering real value requires a lot of community inputs, resources and back end reform and computerisation. One year is too early to make a judgement.