Conference draft: Paper presented to the Chinese Economist Society Annual Meeting, Hangzhou, June 2004

New interactions, new possibilities: transport, new information communication technology and the reduction of rural social inequalities. 

http://www.geocities.com/transport_and_society/newinteractions.html

 

Margaret Grieco, Professor of Transport and Society, Napier University, Edinburgh  and Visiting Professor, Institute for African Studies, Cornell University

Abstract

This paper summarises the existing global evidence on the contribution that  a new interaction between communication technology and transport  infrastructure can make to the reduction of rural social inequalities. It  identifies key dimensions of social and economic activities which can benefit from this new interaction; it also identifies cutting edge projects and programs which have harnessed this new interaction in the reduction of  rural social inequalities. The paper concludes by indicating the potential  relevance of such developments for China.

1.     Introduction: information technology, transport organization and rural development.

 

 

“In 2003, the Chinese government launched a nationwide inter-county and rural highway construction program. Under the plan, more than 5,300 projects will begin in 2003, representing 78,000 kilometers of construction for a planned investment of 75 billion yuan. In October, the Ministry of Construction (MOC) expanded the plan to 15,500 projects representing 162,000 kilometers of construction at a planned investment of 109.5 billion yuan. This program is an important signal that China will promote rapid development of rural highways in its efforts to eradicate poverty.” @

http://www.worldbank.org/wbi/reducingpoverty/docs/case-summ-China-ICT.pdf

 

 

“While much progress has been made, much remains to be done. Some 30 million poor people in the middle and western areas of China still must cope with poor transportation conditions.” @ http://www.worldbank.org/wbi/reducingpoverty/docs/case-summ-China-ICT.pdf

 

The evidence is clear: China is undertaking major investment in the development of rural transport infrastructure as part of its poverty alleviation strategy.  Developing rural transport networks is at the heart of the rural development strategy.  However, it is equally clear that the challenge of rural poverty remains a major issue and the resource constraints on the near term satisfaction of major rural transport needs are very severe.  In such a context of resource constraint, it is important that resources are used efficiently.  Constructing rural highway networks can alleviate poverty in the construction phase – “Food for Work” Programs have already been used within the Chinese transport strategy – but in order for such highways to make their full contribution to poverty alleviation other transport organization issues also require attention.

 

One such issue is the interaction between information flows and the utilization of transport infrastructure. Modern telecommunications are taken as a for-granted aspect of urban infrastructure and transport organization but the application of such telecommunications within rural poverty alleviation projects, programs and strategies is often minimal, side-lined or completely neglected.  Yet there is evidence from a range of countries that information technology aligned with transport organization can play an important part in rural development.

 

In respect of China, there has been a recognition that rural telecommunications have an important part to play in alleviating rural poverty:

 

“The next best investment is rural telecommunications, which gives the second largest impact on poverty reduction and the third largest impact on agricultural growth.” @ http://www.ifpri.org/divs/eptd/dp/papers/eptdp66.pdf

 

This recognition of the returns to public investment in terms of poverty reduction within China is crucial. In fact, the returns to public investment in rural telecommunications in terms of poverty alleviation exceed the returns to public investment  in roads in terms of poverty alleviation.

 

“Investment in rural telecommunications has the third and second largest impact on production growth and poverty reduction, respectively. Road investments rank fourth in their production and poverty alleviation impacts. Investment in electricity has the fifth largest impact on poverty reduction and production growth. These investments in infrastructure (telecommunication, roads, and electricity) contribute to poverty reduction through increased nonfarm employment, as well as through agricultural production growth. The former often accounts for more than 50 percent of the total poverty reduction effect. Investment in irrigation has the least impact on both production and poverty alleviation”. @ http://www.ifpri.org/divs/eptd/dp/papers/eptdp66.pdf

 

However, the interaction between telecommunications and transport efficiency remains under-recognised.  Furthermore, the discussion that telecommunications can play in supporting remote communities within China maintain their social and economic viability has received little discussion.

 

 

 

2.         Benefitting from a new interaction between transport and telecommunications: the global evidence.

 

The time has come to rethink rural infrastructure services and rural development - and to factor in access to information and communications technology. Rural infrastructure services can not simply be about village level infrastructure or local rural transport networks. And the evidence is that in many locations such a rethinking has begun – most particularly within Asia with the Pondicherry  village information technology project in India and  the field phone developments of the Grameen Bank in Bangladesh.

 

Historically, physical transport and communications were poor in rural locations as compared with their urban counterparts. Colonial relationships of extraction left many developing countries with inefficient and highly imbalanced transport and communication structures - fast transport corridors were tied to extractive industries such as mining or export crops with little focus being placed on developing nationally equitable transport and communications structures post decolonisation. Providing modern transport and communication structures in the post colonial period was an expensive undertaking with the consequence that many locations in Africa, for example, are poorly served in terms of motorised transport and electrical provision.

 

The prospects of solar power and hand held, satellite linked, digital technologies open up new rural infrastructure services which can assist the disadvantaged of remote locations to enter and benefit from the modern ICT (Information communications technology) world. Through such technologies information can be obtained on market prices which assist small farmers in bargaining for the right price for their crops, medical assistance can be summoned in times of crisis, better banking and credit arrangements can be organised (both the Grameen bank in Bangladesh and the Self Employed Women's Association in Gujarat, India, have begun to make use of these technologies in reducing the social exclusion of women).

 

Both accessibility planning  (Edmonds, 1998) and  mobility planning are key in undertaking the reduction of social exclusion or poverty in rural locations in developing countries. Accessibility planning would have historically been confined to the range of services and facilities which are physically provided within a locality: in the present, accessibility planning can be expanded to include those services which can be accessed electronically within a locality.  A good example of such a service would be tele-health which is now being provided  in many forms in many countries across the globe – remote islands in the Pacific make use  of Information Communications Technology to enable remote diagnosis of ailments and to set up programs of treatment (Pacific Basin Telehealth Initiative @ http://telehealth.hrsa.gov/pubs/pacific.htm ) and the same technologies which are used to link remote islands can be used to link scattered, remote mainland communities.  Mobility planning should be concerned not simply with whether roads are built but  who can access them and under what conditions: indeed, research into gender and transport  in a range of countries reveals that women often do not have the same access to motorized transport as men even as passengers (Grieco, 2002; World Bank @ http://www.worldbank.org/gender/transport/ ). There is increasing recognition within development agencies and within governments that the provision of roads where local communities neither have resources to maintain the road nor have the necessary income to travel on motorised vehicles is problematic. Road building must be matched by measures which enable the vulnerable to make use of such facilities before it can be viewed as a social inclusion measure: historically this condition has not been well met.

 

This means that explicit consideration has to be given to transport organization  - that is to say, attention must be given to developing resources and institutions which enable local people who are meant to benefit from the construction to properly utilize the highway facility.  This may mean developing credit institutions which can play an active part in the acquisition of community vehicles or developing information facilities which permit the full utilization of the existing local fleet of vehicles in a timely and economic fashion.

 

The development of new fleet management technologies combined with information communication technologies open up the prospect of new forms of transport organisation in additional to conventional transport markets such as community transport and demand responsive transport.  The principle behind demand responsive services is that rather than running underutilized fixed route services through technology vehicles can be  pulled towards the customer at the point of need.  Translated into the developing rural village context,  villages with products ready for market can summon vehicles within the local  fleet at the point of their need. 

 

The new technologies enable a pooling of resources amongst a wider set of communities in the joint operation of a vehicle or vehicles and enables the multi-use of public service vehicles.  Integrated fleet management of the pool of vehicles within a region or locality through new information communication technologies can be used to address issues such as maternal mortality.  Information technology under such a mode of organization becomes as much a part of the transport infrastructure as the road surface itself.

 

Although these potentialities are already present within the developing context,  and enacted within the rural context in the developed world albeit as scattered projects rather than fully developed transport strategies, the joined up thinking which links transport development with rural telecommunications has yet to happen.   Given the development of rural telecommunications in China and the massive investment in road construction presently underway, it may very well be that China is the location in which such linkages becomes fully realized.

 

 

3.         Best practice projects and programs: concrete approaches to reducing rural inequality.

 

Within my review of the field, I have found no explicit discussion of the ways in which information technology is used to coordinate travel and transport organization and there is indeed a need for such a study.  However, that information technology permits the better coordination and scheduling of transport and travel is a respectable hypothesis.  As a consequence of this deficiency in the existing literature, the focus of this section is on  best practice within reviewed rural information communication technology projects (Grieco, 2002).

Within the developed world, there has been a major discussion of the benefits that the new information communication technologies can bring rural areas - the death of distance - and of the danger of new information technology bypassing rural communities unless there is direct policy intervention. There is a recognition that new information communication technologies will strengthen urban bias unless effective intervention takes place. There is a growing and parallel discussion in the developing world and it is a discussion in which gender is a central theme http://www.unifem.undp.org/pap_itu.htm; http://www.undp.org/info21/text/bg/b-dary.html. The development of rural information technology infrastructure services in India (http://www.mssrf.org/informationvillage/assessment.htm) provides a useful example of current policy trends. In a group of six villages in Pondicherry in South India, a

'project has established a hub-and-spoke model of data-cum-voice communication. The village centers can communicate with each other as well as to the Internet. A hybrid of technologies is used-wired with wireless for communication and solar with mains for power supply. The hub provides connectivity to the Internet through dial-up telephone lines, and the staff there creates locally useful content. The village centers receive queries from the local residents and transmit information, collected from the hub, back to them. An important feature of this project is the strong sense of ownership that the village communities have developed towards the village centers. The other key feature is the active participation of rural women in the management of the village center as well as in using it. A system of close consultation between the project staff and the rural users has been evolved, so that information needs are realistically assessed'.

 

The Pondicherry model, like the Grameen Bank's fieldphone for women (www.grameen.org ), creates new expectations in respect of the composition of rural infrastructure services and delivery.  Within China’s official poverty reduction statements, women have been identified as a target group (http://www.chinaembassy.org.il/eng/32276.html ): in this respect, the Pondicherry development is an appropriate Best Practice for consideration.

 

 

Although using solar power, the Pondicherry project also makes use of mains electricity, however, there are rural communication infrastructure projects which do not.  The SELF project in Brazil provides a particularly interesting example. 

 

“The Solar Electric Light Fund, Inc. (SELF) is a non-profit charitable organization founded in 1990 to promote, develop, and facilitate solar rural electrification and energy SELF-sufficiency in developing countries. @ http://www.self.org

 

The SELF project located in a remote area of the Amazon uses solar power, a satellite dish and a lap top for a range of social and economic purposes. SELF’s own summary of the project gives us an indication of the benefits achievable in remote locations through solar powered information communication technology:

 

The Problem: Xixuaú-Xipariná is extremely isolated, accessible only by a 30-40 hour boat trip from the city of Manaus.  This isolation has helped to preserve hundreds of species, making the Reserve an important element in rainforest conservation efforts.  

However, the viability of the Reserve crucially depends on ensuring that the local people are able (to lead healthy, prosperous lives in ways that keep the environment whole and flourishing.  The Reserve's isolation—and lack of electricity—leaves the native Caboclo Indians with virtually no access to modern health care, education, and economic opportunities.

The Solution:Working with the Associação Amazônia, a group largely composed of indigenous Caboclo Indians, SELF has provided solar power and satellite Internet access to the previously unelectrified Reserve. The project was funded by the Ernest Kleinwort Charitable Trust.

Project Successes Include:

·        Improving health care for local people by electrifying the Reserve's new health clinic.  The solar-powered clinic now has a Sunfrost refrigerator that reliably preserves fragile vaccines and snake bite serums. Solar lights allow emergency surgical operations to be performed at night.

·        Furthering scientific research and the cataloging of endangered species by powering an Internet-connected satellite dish that helps the Reserve stay in contact with scientific research teams.

·        Enhancing educational opportunities for the local people at the Reserve's new school. The solar powered, Internet-connected computers provide access to distance learning programs, and adult education classes are held in the evenings thanks to solar-powered compact florescent lighting.

·        Advancing economic opportunities by coordinating eco-tourism and e-commerce ventures.

The Self project in the Amazon demonstrates the utility of  telecommunications aligned with solar power to overcome dramatically inhospitable transport circumstances.  It also enables the summoning of  resources from a distance and improves transport organization on the natural transport facilities which already exist.  It is a development which is worth considering as useful in the context of extremely remote communities: pilot projects along similar lines may be useful to consider in the Chinese context of a large number of such remote communities .

 

4.         The Chinese context: preliminary indications

 

From the literature reviewed, it appears that discussion of the development of highway networks within rural China and discussion of the development of rural telecommunications take place within different domains. 

 

“The Roads Improvement for Poverty Alleviation (RIPA) program was launched with World Bank support in selected provinces in the mid-1990s. RIPA focuses on linking those rural villages and townships which do not currently have basic all-weather access to the existing road networks. In the case of Henan Province, quantitative analysis resulting from an ex-post evaluation of the RIPA components showed that remote settlements that had been engaged in subsistence farming prior to the program had made markedly better progress in economic development, social development, and poverty alleviation than comparable populations in control areas. The number of vehicles, and passenger and freight transportation developed quickly in the RIPA impact zone. With the improvement of transportation infrastructure and growth of the farmer’s income, more and more rural household purchased motors and vehicles to undertake nonagricultural industries or facilitate travel. The improvement of transportation infrastructure has transferred the potential transportation demand into the real demand and boosted the development of passenger and freight transportation.” http://www.worldbank.org/wbi/reducingpoverty/docs/case-summ-China-ICT.pdf

 

There is no discussion within this document of the value added that a rural telecommunications component might make to transport organization and to agricultural organization itself.  Relying solely on travel along transport infrastructure to obtain necessary information on market prices, potential markets and for the scheduling of deliveries generates unnecessary costs and substantial uncertainties in the context of a hostile transport environment.  The mountainous conditions of parts of rural China appear to represent such a hostile transport environment:

 

Among all transportation facilities, roads are the most crucial to rural development. However, the mountainous topography in many parts of China has hindered the development of roads. @ http://www.ifpri.org/divs/eptd/dp/papers/eptdp66.pdf

 

 

These are the very conditions in which information communication technology can operate as both a partial substitute and an important supplement to the construction of physical infrastructure. The evidence from China is that rural  telecommunications is already positioned to play this very important role:

 

“Prior to 1980, growth in government investment in telecommunication was very slow (Figure 2), increasing from 166 million Yuan in 1953 to only 738 million Yuan in 1980. However, there has been explosive development in recent years, and the number of rural telephone sets increased from 3.4 million in 1992 to 17.8 million in 1997. This is the result of both public and private investments in the sector: from 1989 to 1996, public investment alone increased more than 10-fold. “@ http://www.ifpri.org/divs/eptd/dp/papers/eptdp66.pdf

 

Information communication technologies, as we saw with the SELF project, can also be used to render education more accessible.  The relationship between government expenditure on education and the reduction of rural poverty has already been established:

 

“Government expenditure on education has the largest impact on poverty

reduction and the second largest impact on production growth; it is the dominant

“win-win” strategy. Government spending on agricultural research and extension has

the largest effect on agricultural production growth, and the third largest impact on

poverty reduction. Government spending on rural infrastructure (communication,

roads, and electricity) has the second, fourth and fifth largest impacts on rural poverty

reduction, respectively. These poverty reduction effects mainly come from improved

nonfarm employment and increased rural wages. Irrigation investment has had only

modest impact on growth in agricultural production and an even smaller impact on

rural poverty reduction even after trickle-down benefits have been allowed for.”

@ http://www.ifpri.org/divs/eptd/dp/papers/eptdp66.pdf

 

Using information technology as a tool in the education of the most remote  communities within distance education programs is worthy of explicit policy discussion.

 

China's rural poor are mostly concentrated in the central and western regions, especially in the western region, living in scattered areas in deserts, hills, mountains and plateaus. These regions are characterized by the largest number of poor people, and the deepest degree and most complicated structure of poverty. Of the 592 poverty-stricken counties named by the Chinese Government on its priority poverty relief list in 1994, 82 percent are situated in the central and western regions. @ http://www.chinaembassy.org.il/eng/32276.html

 

Third, development through relocation, whereby poor households are persuaded to move from their native places, where production and living conditions are exceptionally bad, to places with better conditions, so as to help lift them out of poverty. http://www.chinaembassy.org.il/eng/32276.html

 

The use of information communication technology to service education and health needs as well as to provide routine information access for economic purposes and for the scheduling of periodic travel and transport  could be used to diminish the necessity of development through relocation.  Under traditional communication arrangements remoteness necessarily reduced high levels of interaction between the remote location and the predominant economic centers and regions: under new information conditions, this need no longer be the case.

 

Within China, a strategy of “twinning” wealthy regions with poorer regions as mechanism for mobilizing support for the poor has already taken place:

 

Mobilizing the whole of society to assist with the development of the poor areas. To enlist greater social involvement in this sphere of endeavor, the state will mobilize society at large to take part in the poverty alleviation drive, in addition to the resources provided by the government. In accordance with the development-oriented poverty reduction program, further efforts will be made to promote counterpart cooperation between the eastern developed coastal region and the poverty-stricken western region, enlarge the scale of the cooperation and increase the momentum of the relief work. It is necessary to encourage and guide non-governmental exchange and cooperation at different levels and in diverse forms, especially cooperation for common development between enterprises. It is also necessary to give play to the important role of all social sectors in the development-oriented poverty reduction efforts and actively create conditions for non-governmental organizations to take part in or implement the government development projects in the poor areas. http://www.chinaembassy.org.il/eng/32276.html

 

Rural telecommunications and access to information technology can be utilized to heighten the effectiveness of such twinning programs over distance.  The twinning strategy of China represents a cutting edge innovation in poverty reduction: combined with an appropriate and explicit telecommunications/transport  strategy, the potential benefits are great.

 

 

5.         Conclusion:  rethinking transport based development.

 

In the contemporary world, simply building highway networks without considering other aspects of transport organization makes little sense.  The simultaneous development of highways and rural telecommunications enables historically disadvantaged populations to better interact with distant markets and determine the demand for their goods and skills; it permits the more efficient and more effective organization of existing transport services as such interactivity can enable the better coordination of supply and demand across identifiable time windows.  In circumstances where the interaction of cost and terrain combine to preclude high grade roads and electrification, the combination of portable satellite technologies with solar power can be used to enable information activities and economic activities within remote communities and connect them with the greater economy and society. Trips made within such a framework from and to remote communities can be more productive.

 

In the Chinese context, the scale of the poverty reduction programme, the distribution of the poor, the strategies already adopted for mobilizing society at large in anti-poverty programs, the character of the terrain, all invite a careful consideration of how rural telecommunications can be aligned with transport development in effecting major social and economic change.

 

 

 

 

 

References:

Edmonds,Geoff  (1998) Wasted Time: The Price of Poor Access International Labour Organisation: Geneva http://www.ilo.org/public/english/employment/recon/eiip/publ/1998/ratp3/

 

Grieco, M. (2002) Gender, social inclusion and rural infrastructure services. Final report: 14th June, 2002. Prepared for the World Bank  @ http://www.geocities.com/transport_and_society/ruralinclusion.html

 

People's Republic of China, Information Office of the State Council , (October 2001) The Development-oriented Poverty Reduction Program for Rural China  @ http://www.chinaembassy.org.il/eng/32276.html

 

Shenggen Fan, Linxiu Zhang, and Xiaobo Zhang,(2000) Growth and poverty in rural china: The role of public investments @ http://www.ifpri.org/divs/eptd/dp/papers/eptdp66.pdf

 

http://www.acca21.org.cn/info21/comm/page6.htm

 

World Bank, (2003) China: Infrastructure, Growth, and Poverty Reduction, 

http://www.worldbank.org/wbi/reducingpoverty/docs/case-summ-China-ICT.pdf    Shanghai Poverty Conference: Case Study Summary