International Conference on “GOVERNANCE IN AGRICULTURE AND ALLIED SECTORS - ISSUES AND WAY
FORWARD”
Centre for Good Governance, 19 December 2014, Hyderabad, India
Putting Farmers First
Technology Matters But
Good Governance More So
Vikas Nath
Inlaks Scholar, London School of Economics, UK
Associate Director, Future UN Development System, Geneva / New York
Former Special Advisor, South Centre (Intergovernmental organisation) , Geneva
Founder, DevNetJobs.org DevNetJobsIndia.org DigitalGovernance.org GenevaJobs.org
VikasNath.com
vikas.nath@gmail.com
Relevance of UN Agencies (Ranked by Developed and Developing Countries)
For people in
developing countries,
Agriculture matter
more than Trade.
Trade is meaningless
if households do not
have a Surplus to
trade.
Source: Future UN Survey 2012
Indian Agriculture: Global Powerhouse
• World's third largest agricultural
producer (behind China and the US)
• World’s largest producer of milk, pulses,
banana and spices.
• Second largest producer of rice, wheat,
cotton, sugarcane, farmed fish, fruit,
vegetables and tea.
• In terms of net exports, world’s sixthlargest net exporter, with net exports
double those of the EU-28, and rising!
Source: International Agricultural Trade Report,
FAS/USDA, 2013
But performs far below its potential….
• 70% of Indians live in rural areas but
agriculture share in Indian economy
has declined to 15 percent.
• Agriculture growth rate has been
around 3% over the past 20 years.
• Productivity rates are very low - even
in comparison to developing countries.
• Too many farmers compared to
available land.
India uses the most land to grow rice and wheat. At Chinese
levels of productivity, we could nearly double our output.
It is clear that Indian Agriculture faces
Ongoing and Emerging Challenges …
• Food Security
• Livelihoods Security
• Economic Security
• Environment éSecurity
• National Security
GDP growth from agriculture benefits the income of poor people two to four times more than
GDP growth in other sectors of the economy.
Need to ensure that agriculture becomes a profitable enterprise for all farmers engaged with it.
Governance in Agriculture Sector
Too Much Governance?
Is it possible that we have too much governance in agriculture sector that it is difficult
to challenge existing ways?
This hinders professionalization, modernisation, productivity, innovations and significant
improvement in lives of millions of farmers?
Too little Governance?
Is it possible that governance has overlooked agriculture and rural sector and
focused more on the service sector and urban issues?
This has neglected the agriculture sector and it fails to attract the attention and resources it
deserves, and available resources are not optimally allocated.
Or is it too much governance in some areas and too little in others?
What role can ICT play in Agriculture Sector?
Case A: pre-Information Technology Situation
V= Value of Service derived by the Agriculture User «U»
A
B
U1
U2
C
U4
U3
V3D
D
U5
AGRICULTURE USERS (5)
AGRICULTURAL SERVICES (A, B, C, D)
Public Value of Agricultural Services = U1v1 + U2v2 + U3v3 + U4v4 + U5v5
Three ways ICT can Increase Public Value of
Governance Services in Agriculture Sector
• Bring more Farmers under the reach of government services
• Enhance the quality of existing services being offered to the
farmers
• Provide new Services to farmers
This is how we can put Farmers First
Case B: post-Information Technology Situation
G
U6
U8
A
B
U1
U7
C
E
U2
U3
U4
F
D
U5
AGRICULTURE USERS (8)
SERVICES (A, B, C, D, E, F, G)
New Public Value of Agricultural Services = U1V1 + U2V2 + U3V3 + U4V4 + ... + U8V8
Role of ICT: Matching diverse Agriculture Groups with equally diverse
Service Providers
AGRICULTURE
SERVICE PROVIDERS
Urban Consumers
Banks
Agriculture
Markets
Private
Companies
Global Regimes
WTO, WIPO
I N FO R M AT I O N TECHNOLOGY
Government
AGRICULTURE
USER GROUPS
Artisans
Farmers
Farm
Labour
Agriculture
Community
Fishermen
Livestock
Herders
How to increase public value of agriculture
services using ICTs?
• Land and Water Ownership
• Technology and Advisory Services
• Financial Inclusion
• Access to Urban India
• Skill Building
• Become Agenda Shaper in Global Governance
Improving Agricultural Land Administration
Improved land administration can lead to greater farm productivity.
ICTs can help by:
• Digitisation of land records
• Improved agriculture extension by recording information about soil
types
• Improved irrigation planning through data on available water source
• Modernizing the legal framework (where it exists) through use of
electronic certificates and digital signatures.
LARASITA: A Mobile Land Titling Office in Indonesia
The People’s Land Titling Service (LARASITA), a mobile land office (see image 14.2) that travels to villages to
provide to property services to previously disconnected communities. The mobile office (a modified van) is
equipped with laptops connected to the main land record database through wireless connectivity (WLAN).
Did the gradual computerization of land registry systems across
Andhra Pradesh’s 387 sub-registry offices influence access to
credit?
Quarterly data on credit disbursed by all commercial banks over 11
years (1997–2007) were aggregated at the sub-registry office level and
examined in light of the date when the land registry system shifted
from manual to digital records. Computerization had no credit effect in
rural areas but led to increased credit supply in urban areas.
At the same time, estimated impacts from reduction of the stamp duty
(a tax levied on legal instruments and transactions such as those
involved in sales of land or mortgages) are much larger, suggesting that,
without further changes in the property rights system, impacts of
computerization will remain marginal.
Source: Deininger and Goyal 2010, World Bank
Strengthening of Local Institutions and Farmer
Participation
Greater use of ICTs can lead to:
• Improved Transparency and Participation: More farmers can become
more aware of schemes and subsidies available to them, and can avail
them.
• Greater Accountability and Reduced Corruption: By making information
available to all users instead of select few.
• Better procurement: E-Tendering and procurement can bring greater
competition, reduce transaction costs, and bring improvement in
products/services procured.
• Participatory Planning and Budgeting: Easier access to information and
greater accountability of government officials can encourage greater
participation by farmers.
The “West” is ahead of the “Rest”
Global e-Gov Leaders 2012 /2014
....as per several global rankings
Regional e-gov Trend (2002 - 2012)
Source: UNPAN 2012, Waseda University Institute of e-Government
(Japan), Rutgers University (USA)
No developing countries – what are
the reasons?
Good Governance : Prerequisite or Outcome of use of ICTs
United Kingdom
Source: World Justice Project, 2012- 2013
India
For Top-ranking countries: Open and transparent government, absence of corrupton, rule of
law were largely existing when they embarked on use of IT in Governance.
Developing countries: Are trying to achieve them as outcomes of use of ICT in governance
Access to Financial Services
Lack of access to financial services is a major impediment for farmers to
make investments in improving productivity and choosing the optimal
cropping pattern. Farmers end up growing crops based on their
financial and technological capability rather than based on market
demands.
Financial Services required by Farmers:
• Credit
• Savings
• Insurance
• Transfer and Payment facilities to easily accept and make payments
ICT and Financial Services
ICTs can :
• Ensure all farmers have a bank account.
• Provide range of banking services in rural areas where no bank or
institution may be physical present.
• Provide services which are timely and customised to farmers.
Example: Financial products with a time horizon extending over
multiple crop cycles.
• Can provide banking services to even those who are not literate.
Nigeria: E-Wallet Scheme for Farmers
(Targeting Subsidies)
• Farmers in Nigeria receive 50 per cent subsidy on their
farms inputs.
• E-Wallet allows farmers to register and receive SMS
alerts on their mobile phones and proceed to the nearest
agro-dealers to redeem the inputs with 50 per cent value
of the inputs price.
• Earlier only 11% of the farmers received subsidised
fertilisers while rest were sold in open market. Now over
80% of farmers receive them.
Brazil: Bolsa Escola
Conditional Cast Transfer / Monthly payments on education to poorer
families, especially in rural areas.
The Bolsa program, which started in the 1990s and expanded rapidly in
2001 and 2002, provides monthly cash payments to poor households if
their children (between the ages of 6 and 15) are enrolled in school.
Success replicated in several countries and in different sectors including
agriculture.
Online Payments: 2011 GEAR study (Developing countries
progressing in Financial Services)
(by Visa International in 64 countries)
Source: Visa International http://corporate.visa.com/_media/2011_GEAR_Study_Overview.pdf
Innovative Government Services and Service Providers
Need to encourage formation of dot.gov and not just dot.com either
through Public-Private Partnership route or Entrepreneurship / Start-Up
Route
•
•
•
•
•
•
•
Weather Forecasting
Crop Insurance / Livestock Insurance
Green / Climate Credits
Water Markets
Organic Certification
Traceability / Geographical Indicators
Linking Farmers to Urban / Global Markets
Skymet.net: Private Sector run Weather Forecasting Service
Can provide accurate
forecasts at the village
level. Skymet can provide
reliable seasonal forecast
for the next 7 months,
including the monsoon.
Skymet is venture backed
by Omnivore Partners
(www.omnivore.vc).
Omnivore Partners is a
venture fund investing in
early stage agricultural
technology ("agtech")
companies in India.
Traceable Coffee: Linking Farmers and Farmer
Cooperatives to Global Markets
Pachamama Coffee Cooperative Of Small-Scale Coffee Producers www.traceablecoffee.org/
Linking Farmers to Consumers….. profitably
Australia: Waterfind / Water Trading Made Easy
Promoting better
valuation,
conservation and
efficient use of
water.
Africa: ESOKO / Apps for Agriculture
Proof of Good Governance in Agriculture
India is set to become the youngest country in the world by 2020 when the
median individual will be just 29 years.
Who wants to be a Farmer?
By Choice?
Pride, Profit, Professionals in Agriculture: Mentorship, Incubation and Seed
Funds
Because of Lack of Choice?
Lack of other opportunities, High Rural-Urban divide, Focus on economic
growth but without creation of jobs, Neglect of youths
International Conference on “GOVERNANCE IN AGRICULTURE AND ALLIED SECTORS - ISSUES AND WAY FORWARD”
Centre for Good Governance, 19 December 2014, Hyderabad, India
Putting Farmers First
Technology Matters But Governance More So
Thank You
Vikas Nath
Inlaks Scholar (London School of Economics, UK)
Associate Director, Future UN Development System, Geneva / New York
Former Special Advisor, South Centre (Intergovernmental organisation) , Geneva
Founder, DevNetJobs.org DevNetJobsIndia.org DigitalGovernance.org GenevaJobs.org
VikasNath.com
vikas.nath@gmail.com