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Scaling up access to services and information for India's rural poor presents a formidable developmental challenge in a country as vast and varied as India. It was in this context that Skoch Development Foundation undertook the first-ever nationwide multi-stakeholder study entitled "National Study on Speeding Digital Inclusion."

Team Skoch, since 2003, has visited various places and projects in North Eastern Region. Projects include Rajiv Gandhi Computer Literacy Program; Aamar Seva; Community Information Centres;Property Registration;Land Records; Sales Tax Computerization and so on.        more


Skoch e-Governance Report Card 2005, October 2005.

The project was executed over the space of eight months during Skoch visits to over a score of e-governance projects spread across the country, from Punjab in north to Sikkim in the east, down to Andhra Pradesh in the south. more




Integrated Governance for Large Cities

This was essential as urban centres are the growth engines for the countyr’s as economy, already contributing over 50 per cent of the country’s GDP. According to Mr M Ramachandran, Secretary, Ministry of Urban Development, the task on hand was a significant one, specially as the country today has the world second largest system of urban settlements. “With over 5,161 towns and cities, we today face challenges on all urban governance issues, beit drinking water, urban transport, solid waste management or housing.

What is important that there should be commonality in all development efforts, targeting all sections of society.” Integrated Governance: Accepting that market forces were going to shape the urban structure of the future, the speakers agreed that there was need to take governance in urban centres to the local level, bringing the governors and those governed onto a common platform.

“Today, the recommendations of the 74th Amendment on giving more powers to urban local and bodies and panchayats have yet to be implemented by many states. And, if people at the local level are not involved in the development process, growth will not be inclusive,” added Ramachandran. Our current model of governance does not provide for any institutional involvement of citizens or devolution of decision-making to the lowest unit, he added.

Agrees Dr Jairaj Phatak, Municipal Commissioner, Municipal Commission of Greater Mumbai, “today,MCGM presents one of the best and largest models of urban governance in India. This has been possible as we have implemented a number of steps that take governance to the people. While the first phase of such changes involved only the inner administration processes, in the second phase we have significantly increased the citizen interface.” As a result, today, there are a large number of services that have been available to Mumbaikars through the use of ICT technologies. And, recognising the fact that not everyone is IT-savvy, MCGM has also significantly simplified the procedures and norms to ensure faster service delivery to all citizens.

This improved delivery of government services to citizens, speakers pointed out, was not limited to MCGM alone. Today,local bodies in areas as apart as Jammu and Kanpur had realised the importance of IT in government service delivery, becoming more citizen-centric in the process. Emphasised Mubarak Singh, Commissioner, Jammu Municipal Corporation, “today, permissions for building houses, complaints on illegal constructions, and issue of births and death certificates are all available online.


And, while enabling the citizens, this has enabled us to check malpractices that were associated with such services in the manual mode.” Concurs Prakash Rane, Managing Director, ABM Knowledgeware, “it is not only technology that has enabled easier availability of services to the citizens. Instead, it is the blending of administrative reforms with ICT that led to this paradigm shift in the mode of delivery of government services.”

However, he conceded that we have just opened the doors to more citizen interface in governance, with the major challenge being in capacity-building, both within government departments and among citizens as also in overall awareness about such initiatives. Taking the technology point a notch further, Niraj Prakash, General Manager-Public Services, SAP, said that it was necessary that for IT-enablement of governance, work on both the back-end and the front-end takes place simultaneously.

“Also, the technology that is adopted must be relevant to the needs of the services being offered and by the people it is being offered. We should be able to integrate such technology with other process being used by different department and even upscale the services that are made available.”

Accepting the role that ICT could play in improving governance, Mr Ramachandran said that it was because of this that the Central Government was considering issuing benchmarks for IT enablement of urban local bodies like it has issued in the case of drinking water, solid waste management, sewerage and drainage. More importantly, he pointed out that the challenge before urban planners was how to improve and expande the economic and social infrastructure of cities, ensure access to basic services at affordable prices, including security of tenure in land and housing, and strengthening municipal governments and their functions.

“Balanced development matters not only for the sake of social justice, but also for social cohesion and economic development. Inequalities within cities have the potential to turn into social protests and generate instability. It is, therefore, at this level that such issues need to be addressed.”

Financial Inclusion Taking on the issue of balanced development in the urban areas, speakers in the special plenary on “Financial Inclusion for the Urban Poor” were unanimous that today the urban poor were one segment of society for which there were no directed policies or programmes. In fact, they agreed that while the stringent ‘know-your-customer’ norms had been eased for the rural poor, the urban poor continued to be denied this facility.
As K J Udeshi, Chairperson, Banking Codes and Standards Board of India, pointed out “the urban poor are today not the focus of any group, have no links with the banking or the insurance sectors and, in fact, were today one of the most excluded sections of society. Today, while anyone can open an account in a post office, with just a photograph, the KYC norms made it impossible for them to open bank accounts.”


A major reason for such exclusion, the speakers noted, was because they lacked the group identity that came naturally to the rural poor given the small size of their habitations. “This prevented them from taking advantage of the cluster approach or the self-help group approach to access various financial services,” pointed out Sanjay Bhargava, Chief Mentor at the Eko Group.

This was even though the urban poor were located in areas where proximity to banks was not an issue, with most major urban centres having more than one bank branch in a radius of 5 km. What was needed here, the speakers emphasised, were measures that enabled the urban poor to establish a link with the banking an insurance sectors. Stressing that the insurance sector was ready to extend coverage to the urban poor also, M Ramadoss, CMD, Oriental Insurance Co Ltd, said that they were restrained in this regard by the regulatory framework that governs the sector.

“Today, in case of any insurance product, it is mandatory that the premium is paid in advance for the policy to become effective. And, this is something that is not possible for the urban poor to do.” Here, he stressed that, if a suitable linkage developed between the urban poor and the banking system, the banks could help the accountholder by financing the cost of the premium.”


Making social security an issue, the speakers stressed on the need to set up a national body to cover the urban poor, who today were mainly in the unorganised sector. “Such a body could be used to extend a large number of financial products to the urban poor even as it covered their social security needs. It would also enable banks to extend group-based products to them,” added M Narendra of Bank of India.

Conceding that the challenges faced by the banking sector in improving outreach was the urban poor’s lack of collateral security, difficulty in evaluating and monitoring cash flow cycles and human resources constraints, the speakers agreed that there was the need for more innovative services.

It is not that the poor are unbankable, what is needed are innovative products that meet their immediate needs, they pointed out. One reason why this was happening was because of the stereotype that the banking system had come to represent.

Today, technology is yet to be seen as a facilitator with most banks continuing to rely on systems of accounting that are archaic in nature. “If technology regulations are made permissive, the cost of transactions in case of low-value urban accounts would come down substantially, enabling access to various financial services by a greater number of people,” pointed out Mahesh Jain.

“It is not that the urban poor today need financial services that are very different from those being used by the affluent sections, be it savings, loans or remittances, what they needed was primarily access to these services without the long-winding procedural overhangs that they carry,” noted S K Kale of NABARD. Today, a vegetable vendor is ready to pay atrocious rates of interest just because of the easy access and simple rules that such loans come with. Banks and insurance companies have to innovate to facilitate greater financial inclusion, he added.


 

Digital Inclusion Day || 22nd September 2010

 




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10th-11th Nov 2010
New Delhi


 
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