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ITforChangeCaseStudyDrishteeITforChange2008Thiscasestudyispartofaresearchprojectthatsoughttoanalysehowdifferenttelecentremodelsapproachdevelopmentontheground,proceedingtoelaborateatypologybasedonthecornerstonesofparticipationandequity.Toconductthisassessment,fourtelecentreprojectswereexamined:theGujaratgovernmentsE-gramproject,thecorporate-ledventurebyITCcallede-Choupal,theprivateenterprisemodelofDrishtee,andthecommunity-ownedtelecentresoftheM.S.SwaminathanResearchFoundation(MSSRF).Twomaincriteriawereusedinselectingthecasestudiesthediversityofownershipmodels,andtherequirementofasufficientscaleoftheintervention.Inadditiontothefieldresearchconductedin2008usingqualitativemethods,theresearchalsobuiltonsecondarysources.AreviewoftheliteratureinthefieldofInformationandCommunicationTechnologyforDevelopment(ICTD)showedthatwhiletelecentresareviewedascontributingpositivelytodevelopmentingeneral,theyarelargelynotreallyseenasaspaceforcatalysingtransformativesocialchange.Instead,thereremainsinthenotionoftelecentresfordevelopmentaperpetuationofmarket-ledapproaches,whereintelecentresareviewedasastrategicmeansforexpandingmarketsinruralareas,especiallyforcorporates.Inthisapproach,poorcommunitiesarerepositionedasanopportunityforbusiness,withICTsasthemosteffectivewayofconnectingthemtotheglobalmarketsystem.Thisespousesaversionofinclusionthatinstumentalisesdisadvantagedsections,overlookingthepotentialoftelecentrestoserveasatoolforequitableandparticipatorydevelopment.Suchsubjugationoflocaldevelopmentandthelocalcommunitytotheneo-liberalideologyc

anbeseenastheWalmartisationormarketisationofdevelopment(Gurstein,2007:6)1AcriticalquestionfortelecentrerelatedpoliciesandprogrammesthereforeexamineshowICTscantriggerstructural-institutionalchangesthatpromoteoverallhumandevelopment,goingbeyondexclusivemarketframeworks.Basedonacriticalanalysisoffindingsfromthefield,theresearchattemptedtoexaminetwohypotheses.ThefirstrelatestotheneedforthecommunitisationofICTD,asisastrongmovetowardscommunisationinotherareasofdevelopment,likehealth,livelihoods,education,etc.Second,thedevelopmentofanICTgovernanceregimefavouringanopen,inclusiveandparticipatorysocio-technicalarchitecture.Thelatterseekstoempowertheperipheries,actingagainstthestrongtendencytowardscentralisationofpoweroftheunregulateduseofICTs.ThefollowinganalysisoftheDrishteeprojectwillbesituatedwithinthislargerdebate.2

BackgroundandapproachtodevelopmentDrishteeisafor-profitcompanywhichaimstocreatenewICT-enableddistributionnetworksandaccesspointsforretailproductsandservicesinruralIndia.Seekingtoconnectcommunitiesvillagebyvillage,DrishteeaimstocapitaliseontheabilityofICT-

basedplatformstoenhanceefficienciesandremote-managelargesystems.Thus,itplanstodoawaywiththenumberofindividualintermediariesinvolvedinprovidingproductsandservicesinruralareas.BystreamliningprocessesthroughasingleDrishteechannel,ruralcommunitiesgainaccesstotraditionallydifficult-to-obtaincommercial,health,educationandgovernmentservices.

Drishteesapproachtoenablingtheopeningupofruralmarketsisoperationalised

throughafranchiseandpartnership-basedbusinessmodel.TheDrishteemodelwaspilotedin2001inthestateofHaryanaandhasspreadtoover12statesincludingAssam,Meghalaya,Manipur,ArunachalPradesh,Bihar,Orissa,UttarPradesh(UP),Uttarakhand,andTamilNadu.Thismodelaggregateslocal

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ITforChangeCaseStudy,Drishteemarketsaroundanindividualmicro-enterprise,whileprovidingICTandnon-ICT-basedincomegeneratingpotentialforruralentrepreneurs.AsofDecember2007,theDrishteenetworkhad2,059kiosks,eachcateringtoapproximately1,200households.Thedirectdeliverysupplychainhasresultedinsignificantcostandtimesavings,andDrishteeaimstoreach10,000villagesbefore2010,thusconsolidatingitspositionasaprofitableruralsupplychainforlast-mileretailing.Withaclearprofit-basedbusinessstrategy,thekioskoperator(KO)isavillagebusinessman,andanentrepreneurwiththefreedomtoinnovateonthescopeoftheservicesprovided.Further,theDrishteeaccentontheprovisionofcommunitydevelopmentservicesineducationandhealthcaststheKOinthemouldofasocialentrepreneur,who,inthewordsofoneKO[]canearnanincomeandalsohelppeopleatthesametime.Drishteeaimstofulfilitsdevelopmentvisionbyunlockingthepotentialofruralmarketsinawaythatmakesbusinesssenseforthecompany.ICTbasedkiosksandKOsarethefoundationsonwhichthiswinwinmodelofdevelopmentisconstructed.DrishteesmarketbasedICTDmodelrelyingonthetrickle-downeffectispositionedasadrivingforceforbringingaboutpositivesocialchange.ThistrickledownapproachencompassesDrishteeslong-termmodelvillagevision,whereinthematureICTkioskoperatortrainsandsupportsothervillagememberstoinitiateindependententerprisestoleveragetheICTinfrastructureofhiscentre.Programme(CEEP)isthemostpopularICT-basedactivityatthekiosks,attractingvillageyouth,andparticularlyyounggirls.InHaryana,incollaborationwiththestateChiefInformationCommissioner(CIC),DrishteeispilotingonlineRighttoInformation(RTI)casefilingbecauseitisaneasilydigitis

edprocess,andcontainshighdemandpotential.FortheKOshowever,higherrevenuesaccruefromsellingnon-ICTrelatedproductsandservices.Thisincludesinsuranceschemes,smallelectronicgoodsandotherfastmovingconsumergoods(FMCGs),whichareintroducedintothesupplychainthroughdecisionstakenattheDrishteeHeadquarters.ThecompanyestablishescontractualorrevenuesharingagreementswithnationallevelcorporatesforroutingproductsandservicesthroughICTkiosks.KOsarefreetodecideonmarketratesfortheseservices,withDrishteereceivingafixedpercentage.Anynon-Drishteeservicesatthekioskslikemobilephonerecharging,provideonehundredpercentincometotheKOs.WithaveragemonthlyearningsofRs.5,000-6,000,thekiosksarepopularasaonestopshopforruralretailneeds,contributingdirectlytoruralmarketexpansion.InastrategytointegratemarginalisedgroupsintotheDrishteemodel,thecompanyisalsotargetingalowerentrypointforeconomicallydisadvantagedmenandwo

menKOsinthestatesofUPandAssam,withminimalinitialcapitalinvestment.Drishteeisalsotailoringproductsand

ImplementationmodelandactorsICTkiosksareestablishedbyDrishteeundertheownershipofvillageentrepreneurs.Thesekiosksprovideaccesstoonlineinformationlikegovernmentrecords,agriculturaldata,andcommodityproductrateseducationserviceslikecomputercourses,andspokenEnglishprogrammes;anddigitalprocessingofhealthinsuranceandthepurchaseofconsumerdurables.Kioskselectionfollowsaclusterapproach,withasinglekioskservingaradiusof4-5villages.Drishteestaffcollaboratewiththesarpanch3ofthepanchayat4toidentifyvillagersforthisrole,themajorityofwhomarerelativelywell-offmenwiththeabilitytoundertakecapitalinvestment.Replacinganinitialmodeloffinancialsupportprovisionto

KOsforkioskestablishment,DrishteecurrentlyselectscommunitymemberswithexistingbasicinfrastructureandsomecomputerskillsfortheroleofKOs.Initialtrainingonmarketing,salesandaccountingisprovidedbyDrishtee,andtechnicalsupportisprovidedonaneed-onlybasis.KioskspaceandrecurrentcostsarebornebytheKO,withfixedrevenuesharingforservicesprovidedthroughtheDrishteechannel.Drishteealsohasvariablerevenuesharingagreementswithserviceproviders.ComputerliteracytrainingthroughDrishteesCentreforEducationandEntrepreneurship

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ITforChangeCaseStudy,DrishteeservicesforwomenKOs,withanemphasisonhealthandmicro-financerelatedofferings.AlthoughthisdeliberatetargetingisworkingtoattractafairnumberofwomentotakeuptheroleofKOs,theinitiativeisstillinitsinfancy.Asanearlypioneerinthefieldofthedigitalprovisionofgovernmentalservices,Drishteehaslargelywithdrawnfromthegovernancearenabecauseoffailedundertakings,otherthanafewsuccessfulkiosksinthestateofUP.Thefailureofthegovernmentservicesventureoccurredinthecontextofaccountabilityconcernsandmonitoringgapsvis-a-visKOs.Furthermore,Internet-basedgovernmentserviceprovisionusuallyreachesaplateauafteraninitialdemandsurgefollowingitsintroduction.Itisunabletoremainviableasastrategyforthelong-termrevenuegenerationofkiosks,thusthe[]breadcannotcomefromgovernmentservices,onlythebuttercan[...],accordingtoSatyanMishra,Co-FounderandManagingDirectorofDrishtee.InUPhowever,recentconnectionstodistrictcollectorshavefacilitatedtheestablishmentofe-PrashasanKendras(e-governancecentres,EPK),whicharemanagedatthedistrictlevelbyDrishteeintheroleofanoutsourcinghubforgovernmentalservices.EPKsassumeresponsibilityforthedeliveryofapre-determinedsetofgovernmentschemesandservicesthroughtheInternet,withtheprocessingofapplicationsandbenefitsfrontendedthroughindividualKOsatthevillagelevel.Drishteegainsfixedrevenuesfromthedistrictadministrationforserviceprovision,apercentageofwhichisdisbursedtoparticipatingKOs.FortheKOsinvolvedinDrishteessecondwaveofgovernmentserviceprovision,adheringtoastrictonlinedailymonitoringsystemismandatorytoenabletheidentificationofdiscrepanciesinrevenuesandanyunderlyingcorrup

tionsurroundingthedeliveryofgovernmentservices.Drishteeattemptedtoengagewithservicedeliverythroughe-governanceinitiativesinKurukshetraandFatehabadinHaryana.Builtonacommissionmodel,theKOsprovidingtheseservicesallowedcorruptiontoseepintothesystem,resultinginthelocalpublicadministrationrevokingthelicensegiventoDrishtee.Thekeydifferencebetweentheinitialandthissecond(current)waveofe-governanceservicedeliveryarethestringentmonitoringsystemsintroducedthroughouttheDrishteesystemcoupledwithcentralisedcontrolmechanismsforgovernmentservicedelivery.However,DrishteehasnotinvolveditselfwithIndiasflagshipe-governancetelecentrescheme,CommonServiceCentres(CSCs),wherethegovernmentisprovidinganinitialsubsidyforrunningtelecentres.ThisisinstructivebothofDrishteesfocusonprofitability,independentofthekindofservicesitprovides,aswellasitsdoubtsaboutthesustainedviabilityofthecommercialfrontendingofgovernmentse

rvices.

MarketasapanaceafordevelopmentOnthemarketbasedmodelThemarket-baseddevelopmentmodelthatDrishteesubscribestoisbestreflectedthroughexcerptsfrominterviewsofmembersoftheorganisation.SatyanMishra,co-founderandMDofDrishtee,explainsthereasoningbehindadoptingthisapproach.Hestates,[]wewanttoworkwithefficientkioskoperatorswhoperformatahighlevelandusethemasahubfordevelopingothervillageoperators.Ifwegroomthem,wewillbeabletomakeafundamentalimpactonthelargereconomyofthevillage,throughthecreationofanecosystemwhereenterprisecanthrive.Headdsthatentrepreneurshavehadtostruggletosurvive,sothefocusnowistoengagebetteroffvillagerstoformacompanyandmakeinitialinvestments.Villagerscanusetheirownequitytostartacompanya

ndprovidebasicinfrastructure,inadditiontowhichruralenterprisescanberun.Thisvillagecompanycansellpower,waterandspaceinthevillagehubforshops,forwhichtheywillchargerent.OnthedifferencebetweenDrishteebusinessanddevelopmentRameshKumarKharab,adistrictlevelExecutive,states,Wemakeruralcentresurbanised.All[other]formsofdevelopmentareinthehandsofthepanchayat,buttherearedeficienciesintheirfunctioning.

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ITforChangeCaseStudy,DrishteeHeaddsthatDrishteechargesmoneyforservices,butalthoughvillagershavedevelopmentalneeds,toaddressandmeettheseneeds,linkageshavetobecreatedwiththegovernment,andthesedirectivesmustcomefromtheheadoffice.AnotherdistrictlevelExecutive,AjithKatariaaffirmsthelimiteddevelopmentalfocusofDrishtee,Ononehandthereisincomegeneration,andontheotherhandthereissocialdevelopment.Youneedtimeforthelatter,andrelationshipshavetobebuilt.Youcannotdobothtogether,asoneisincomefocusedandtheotheris[development]assistanceandthereisnoincomefromdevelopment.[...]Drishteeonlyprovidesanindirectbenefittodevelopmentfromourotherservices.TheproblemisthereforenotwithwhatDrishteeisdoing,butwhatsuchamodelofdevelopmentisseekingtoreplacetraditionaldevelopmentpracticethatcentresonsocialmarginalisationandrelyingequallyoncollectiviststrategiesasonindividualeconomicdevelopment.Workingindependentlyasanewkindofruralbusinessstrategyisnotawrongapproachtoadopt.Inthisregard,itcouldlearnfromgovernmentagenciesinchargeofentrepreneurialdevelopment.However,toposititselfasamodelofdeliveryofsocialdevelopmentaswellasgovernanceservicestendstotakeattentionawayfromfocusedeffortsthatareneededtouseICTsfordevisingdevelopmentmodelsthatarebasedonequityandsocialjusticeandseektodisproportionatelyaddresstheconcernsoftheweakestsections.Thisisespeciallytruewhendespitethefactthatthismodelhasshownlittlerealgovernanceorsocialdevelopmentimpact,ithasbeencelebratedasanICTDandtelecentremodel,winningnumerousawards.Thefalsesheenofbeingasocialentrepreneurattractsconsiderabledonorandotherpublicinterestfunds,whereasit

isdifficulttosee,eveninDrishteesownpronouncements,howthisisdifferentfromaEditorEditorialsupportPrintedby

normalbusiness.Agreateraccentonbuildingsocialrelationshipsforsuccessfulbusinessinruralareasmaybemoreofarequirementthangenerosity,asaKOcomments,KOswillmovetowardsincomegeneratingaspectsthatDrishteeprovides,buttheywillnotrefuseanydevelopmentalrelatedassistancethatvillagersapproachhimfor,orelsehewillgetabadnameinthevillage.Presentingsuchruralbusinessmodelsasdevelopmentmodels,andpushingthemthroughwell-orchestratedpublicityclaimshastheimpactofproppingdevelopmentideologieswithoutanyrealsupportingproof,ontheground.Inthisregard,itissurprisingthattheIndiangovernmentincomingoutwithitsflagshipe-governancetelecentre

projectbyrelyingonthehypeofsuchmarket-basedmodelsratherthanexaminingthefactthattheyhavealmostuniversallyfailedinprovidinggovernmentservicesinamannerthatgovernmentsaremandatedto.ThisfactisclearlyreflectedintheDrishteecasestudy.:ParminderJeetSingh,DeepikaKhatri:KrittikaVishwanath:NationalPrintingPress,Bengaluru

Endnotes1ThiscasestudyispartofabroaderresearchundertakingfundedbytheSocialScienceResearchCouncil(SSRC),anindependentnonprofitorganisationbasedinNewYork.ThestudywascommissionedundertheCollaborativeGrantsinMediaandCommunications:NecessaryKnowledgeforDemocraticPublicSphereprogrammeofSSRC2GursteinM.(2008),TowardsaCriticalTheoryofTelecentres:IntheContextofCommunityInformatics,ITforChange:Bengaluru3Sarpanchisthe

headofthepanchayat4PanchayatisanadministrativeunitofthegovernmentatthevillagelevelCreditsCoordination:ChloZollmanDesign:VarunDhanda,KrupaThimmaiahResearchreport:RoshniNeggehalli,DeepaShankaranResearchcoordination:ParminderJeetSingh,AnitaGurumurthy

ITforChange(ITfC)isanon-profitorganisationlocatedinBengaluru(India)thatworksforaninnovativeandeffectiveuseofICTstopromotesocio-economicchangeintheglobalSouth.ITforChangesresearchandadvocacyworkingender,educationandgovernanceaimstoinfluencetheinformationsocietydiscourseandpolicyspacesatglobal,nationalandlocallevels,seekingtobuildcuttinged

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getheoreticalconceptsandpolicyresponsesfromaproSouthstandpoint.Moreinformationonwww.ITforChange.net.

Adetailedversionofthiscasestudycanberequestedfromcommunications@ITforChange.net.CreativeCommonLicense:Attribution-NonCommercial-ShareAlike3.0

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