USING INFORMATION TECHNOLOGY (IT) FOR THE DEVELOPMENT OF

URBAN POOR – AN ACTION AGENDA

Somnath Bandyopadhyay

Abstract
Communities in urban slums are poor in fiscal terms but are rich in terms of a variety of
skills. Information technology can help in generating better market value for services
rendered using these skills. In addition, IT can play a major role in enhancement of
knowledge and specialised skills at a relatively cheap rate.
While IT is a useful catalyst for leap-frogging the developmental process, the core of the
issue is development of human resources. The development and strengthening of
community based organisations (CBOs) at every slum is advocated. In addition, a
mechanism for micro-enterprise ventures for marketing of services through the use of
information technology is also suggested. These information service companies (ISCos)
will become the fulcrum for the economic development of the slum communities and
their faster integration into the urban milieu.
A five-year action agenda has been suggested for the urban centres of Gujarat, with a
focus on these two local institutions. The action points for the first three years include
surveys, database development, need assessment, setting up of the infrastructure and
leasing it and orientation and training of communities to prepare them for the
information age. The action points for the next two years include mainly technical
assistance to these two institutions and their capacity building.

Keywords: development, communities, information, marketing, services, training,

networking, governance.

Introduction (What is needed?)

Urban areas have the potential to generate wealth. The poor in the urban areas
are generally those who migrate from the rural areas in search of improved
livelihood opportunities. The fact that most choose to stay on is a pointer to the
fact that they do perceive an improvement in their living conditions – compared
to the other option available to them – return to the villages.
Another important conclusion may be safely drawn from the continued presence
of urban poor – his ability to specialise and integrate with the urban economy.
Either he hones up his existing skills or he picks up new skills, or both, in order
to provide specialised services in an economy that is discerning enough to be
able to keenly value these.
The earlier stages of our economic development have focused on restricting
migration of the rural poor to the urban centres. Realisation has now dawned
that this is not viable. The focus needs to shift to the development of an
enabling environment that will lead to a faster integration.
Rather than considering slum communities as a mere vote-bank, at best, or a
breeding ground of anti-social elements, at worst, these communities need to be
regarded as a pluralistic resource-bank that provide vital support to the
mainstream development of the cities and, with some support, has the potential
to radically transform the overall economic scenario.

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Setting the agenda (What should be the focus?)
A strategy to empower the urban poor through improved economic integration
will be based on recognition of the potentials, an assessment of the possibilities
and a realistic evaluation of the present policies. Some of the basic elements of
this strategy, where IT can be an important tool, will be mechanisms for
marketing of services, enhancement of skills and participation in development
programmes.
Marketing of services: The entire range of services, such as those of domestic
help, plumber, carpenter, mason, electrician, barber, rickshaw driver etc.,
can be made available in a value-added mode through a computerised
database. These are the services that are increasingly assuming
significance in the modern economy. While consultants, catering industry
and even beauty parlours, have been recognised as service sector
industries and have been brought under the service-tax net, we generally
fail to recognise the services of the unorganised sector delivered by
individuals who generally live in the poorer sections of the urban
conglomerates. Creating a market by providing consumers with a range of
specialised services to choose from will benefit all sections of the
community.
Enhancement of skills: Since improved services will mean better economic
returns, there will be an automatic demand for skill enhancement. People
will be willing to pay for training and education that will equip them with
better, more relevant and more specialised skills. This means that they
become consumers of an emergent knowledge market which provide
relevant and focused training. Ultimately, a competitive market based on
continuous enhancement of knowledge and specialisation of services will
provide the basis of sustained economic development.
Participation in development programmes: The urban poor is often deprived of
basic municipal services such as drinking water supply and sanitation,
access to infrastructure such as roads and power supply and basic human
development programmes like health care and education. While the
government deems most of these settlements as illegal, proper markets
are also not created because such services demand a degree of guarantee
from the residents, normally not available from the ephemeral populace
in these localities. A lasting solution is possible only if the government
legally recognises the existing individual ownership of land and property.
Since this is beyond the civil society, the second best option is to develop
peoples’ institutions that provide counter-guarantees to developmental
initiatives either in the form of operation and maintenance (O&M) of
infrastructure facilities or in the form of collective payments which are
more secure and easy to manage.

Elements of the action plan (What is the road-map?)

Information technology (IT) has the potential to play a key role in translating
this agenda into a viable action programme. The basic steps will include the
development of a database that is wide in scope and deep in content, setting up
a network for easy access and evaluation of comparable data and professional
management that maximises economic returns.
Development of database: An urban slum profile is created through the
development of a detailed database on the human resources and the
physical infrastructure. The data on human resources will focus on
individual skills and professional abilities. Aggregation will be available at
the household level and the entire slum level. Data on physical
infrastructure will be available at the slum level, to be linked to the
household level at a later date.

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 The development of the database on human resources will begin with the
census records and the voters’ list – their verification and validation –
and move on towards details on individuals. Data on health will be most
important, particularly for children below the age of fifteen, and will
include medical history pertaining to vaccination, major diseases and any
known genetic traits. In addition, reproductive health data for women
between the age group of 15-45 will be collected and collated. At the
social level, incidences of malaria, water-borne, air-borne and other
specific health hazards will be documented.
Data on education will not be restricted only to the formal mode, but also
assess the skill levels acquired through experience and other non-formal
modes of learning. Relating this to livelihood, in terms of nature of work,
mode of operation and available references, will be a more precise
method of assessing the knowledge level. Given the fact that a large
number of individuals in this country are under-employed, rather than
unemployed, it is also necessary to probe for skills that are not self-
evident to the individuals themselves, e.g. traditional songs, dances,
handicraft etc.
Data on physical infrastructure will include details on roads, water supply,
drainage, electricity etc. In addition, details of the available public
facilities like health centres, educational institutions etc. are important.
An important aspect will be the details on cost – both capital as well as
recurring – of infrastructure. Related to the costs will be the institutional
mechanisms for meeting these expenses. The role of civic authorities,
people’s representatives and funding agencies need to be spelt out clearly
with regard to each available infrastructure in a particular slum area.
Networking of information: This is needed at three different levels – the intra-
community network, the slum-city network and the worldwide network.
The intra-community network will seek to enhance the basic awareness of
the communities regarding developmental programmes, their costs and
management framework. Community ownership and decentralised
management mechanisms will lead to reduced transaction costs at the
macro level while ensuring better utilisation of facilities at the micro
level. Transparency in adherence to norms developed by the
communities, particularly with respect to the payment of individual user
charges, will be a major disincentive for default. On the economic front,
individuals will have the option to pool their resources in order to
generate better opportunities. Even from the social perspective, objective
information will replace half-baked information and gossip, thus leading
to better decision-making in issues such as marriage.
The slum-city network will seek to improve the marketing of services
available from the slum areas by increasing the reliability of the services,
improving valuation through an evaluation of the services and raising the
standards of services by inducing competition. Registration of the service
providers at the community level and referrals from previous clients will
go a long way to provide reliability of the services offered – something
that becomes a major bottleneck in an economic transaction in the urban
setting. The prospect of positive reference from a client, especially in a
competitive environment, will ensure higher quality of services. Thus, the
system will work through a set of positive feedback that will ensure
proper valuation of services and a constant effort towards increased
value-addition.
The world-wide network may seem redundant in the initial stages.
However, it is a low-cost option that offers a fabulous choice to the
enterprising individuals to explore larger vistas. Increased global

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 awareness is also likely to bring about an impetus for faster development
through the use of innovative strategies. Also, the international
developmental agencies are more likely to assist such communities, since
these are more visible, lend themselves to independent evaluation and
are transparent in their operations.
Management of information: In the information age, management of information
has to be a profit-making business venture – a challenging task indeed
given the poor understanding of what constitutes valued information,
particularly in the context of the urban poor.
The basic information has to be detailed, multi-sectoral and free. It is the
depth and the breadth of this database that will determine the success of
a business model based on value-added services thereafter. This critical
step needs imaginative leadership, professional management and
financial resources. The investments are bound to be front heavy and the
returns will only start trickling after some time-gap.
The value-added services will be in the form of facilitating transactions,
providing customised information and back-end services. Each successful
transaction, be it hiring a rickshaw or hiring a domestic help, will entail a
service charge levied on either the provider or the consumer, or both.
Even before an actual transaction, a consumer might like to obtain a
comparative statement of the various service providers in a particular
manner, which may merit an additional payment. Development of skills
through specialised training programmes, obtaining feedback from
consumers for use as future references and other forms of documentation
will constitute some of the back-end services.

Operationalising the action agenda (How to go about?)

There will be two clear phases of operation: the first needs heavy investment in
terms of human and infrastructure development while the second needs
effective governance and technical assistance.
Phase I (0-3 years): A competent development agency is an absolute pre-
requisite to spearhead the process. In the present context, it could either
be a professional NGOs or socially oriented business establishment, or
both, in order to bring in the financial resources, management skills and
social sensitivity. The major action points in this phase will include:
• Survey and data collection may be done by a professional agency, in
collaboration with the spearhead agency. There are three major sub-
components – (i) human resources, (ii) civic amenities and infrastructure
and (iii) policies, programmes and institutional set-ups. Government and
civic records, group interviews and questionnaire surveys, and
mechanisms for volunteering information will have to be used. Active
participation of local persons, preferably those who would later play an
important role in managing the information kiosk, would be important.
• Assessment of needs maybe done through a competent market-research
agency, along with the spearhead agency. The assessment will seek to
explore the nature and diversity of services required, degree of skills
demanded and willingness to pay.
• Development of the database application is another specialised activity
requiring the involvement of professional software developers. Ease of
operation, flexibility of analysis and ease of enhancement are some of the
key features, necessary for success. In addition, managing transactions,
either through registrations or payments, or both, will have to be secure,
swift and simple.

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 • Orientation and training of communities, preferably through a hands-on
approach, in collecting, using and updating of information. A variety of
training modules could be designed – some aimed towards imparting
general understanding and use of IT by the entire community, and some
aimed towards development of entrepreneurial skills for a few select
members who would then be able to sustain the business model, either on
their own or through partnership ventures. The spearhead agency, in
collaboration with specialised agencies, will have to conduct these
programmes.
• Setting up of infrastructure, including an information booth – a kiosk – in
every slum area that will house not only the computer systems, but also a
blackboard and a notice board. The amount of electronic resources,
including bandwidth, will be assessed separately by professionals
developing the database application.
• Leasing out of the infrastructure to entrepreneurs, on the basis of norms
developed by the spearhead agency, in consultation with the CBOs.
Policy/ institutional support, in the form of incentives to establish micro-
enterprise ventures in urban slums, facilitation in data collection and networking
and legal support to the CBOs, will provide a major boost to the process and
add to its sustainability.
There is already a favourable climate for the establishment of business ventures
in Gujarat. Apart from the general entrepreneurial skills available, there are
specialised institutes like the Enterprise Development Institute (EDI), Institute
of Rural Management, Anand (IRMA) and Lokbharati (Sanosara) that train
professional managers and development specialists. Tax and other incentives
are often given to the manufacturing sector on a routine basis. One could,
therefore, push for both fiscal as well as non-fiscal incentives to such micro-
enterprise ventures in urban slums of Gujarat, preferably in partnership with
local persons, that provide a wide array of information related services –
Information Service Companies (ISCos).
Government and civil society work closely for the development of poorer
sections of the society in many parts of the State of Gujarat. The Urban
Planning Partnerships (UPP) is one such example. A pro-active role of the
government in data collection and networking of different slums of the city will
strengthen the programme in many ways. Data related to the physical assets,
their costs of maintenance and persons responsible for managing these will be
made available to the general public, who will act as a watchdog in enforcing a
better work culture. Improved awareness will also lead to enhanced
participation of the communities in the process of governance.
The most crucial policy support will be the legal recognition of the community-
based organisations (CBOs) at the slum level as key partners in the process of
decentralised governance. Some of the key functions of these CBOs will be to
• formulate norms for operation and maintenance of physical infrastructure
and essential services;
• register the service providers from their areas and provide necessary counter
guarantees for economic decisions at the community level;
• act as market regulators at the micro level by registering individual service
providers, regulating norms for transactions and arbitrate in case of internal
disputes.
Phase II (4-5 years): A couple of year’s handholding by the spearhead agency
would be necessary to provide for additional strengthening of these
institutions. The major action points in this phase will include:
• Capacity building of the CBOs: In addition to the policy support, the CBOs
will need to develop an ethos of debates and discussions – the basic

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 principles of democratic governance. While on the one hand it would
serve as a single entity for managing any major external development
programme, it needs to have a detailed set of norms for internal
management – be it payment of user charges, providing participatory
labour inputs or election of office bearers.
• Capacity building of the ISCos: In addition to the policy incentives, the
ISCos will need to develop managerial and entrepreneurial skills in order
to sustain themselves. They need to be encouraged to innovate and
create a shelf of value-added services, while strengthening the few that
ensure steady returns. A professional evaluation of the quality of services
offered, their market value and consumer feedback could be used to
develop a system of rating and even instituting an award.
• Development of back-end services: A variety of teaching and training
modules need to be developed for the enhancement of skills within the
communities. While the basic knowledge related to hygiene, public
conduct and citizen’s responsibilities would be freely available, those
skills that ensure economic returns to the individuals need to be paid for.
In addition, basic education for any person below the age of 15 would be
available free of cost in a modular format. Basic accounting and
communication would be the focus of these teaching modules. Ideally,
these services could be rendered through an independent, professional
agency working through a separate, focused programme supported by the
government. Independent rating agencies and certification mechanisms
will also develop in due course of time.

Critical elements (What will decide its success?)

In order to realise the full potential of this programme, it is necessary to know
the critical elements involved.
Managing human skills: It is necessary to overcome our initial awe of the
various gadgets that are involved and start recognising the human
element that drives it. Investments in training and education of persons
are much more rewarding than investing in the latest hardware alone.
Managing change: There is often a tendency towards complacency once a
“project” is done. In contrast, old information has no value and hence
needs constant updating. Enhancement of skills, persistence of individuals
and upgradation of technology is vital for success.
Managing exchanges: Swift response, ease of communication and credibility of
the institutions are essential in realising the full benefits of the
programme.