Information note March 2018

DIGITAL INNOVATION

Tackling poverty and hunger through

August 2018 Photocredit cover: ©FAO

CONTENTS

1. IINTrODuCTION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4

2. ITHE CHALLENGES AHEAD � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 5

3.IMAKING DIGITAL INNOVATION WOrK FOr SMALL-SCALE PrODuCErS AND rurAL

DEVELOPMENT � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 8

3.1 Rural advisory services and e-learning .................................................................................. 9

3.2 Meteorological information .............................................................................................. 10

3.3 Risk management in agriculture ........................................................................................ 11

3�3�1 Early warning / drought-flood alert � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �11

3�3�2 Control of pests and diseases � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �11

3�3�2 Insurance schemes �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �13

3.4 Market information and e-commerce ................................................................................... 14

3.5 Natural resource management and productive inclusion ........................................................... 14

3.6 Farm registries ............................................................................................................... 15

3.7 Financial inclusion .......................................................................................................... 16

3.8 Social protection programmes ........................................................................................... 17

3.9 Sharing knowledge and innovation...................................................................................... 17

4.IMAKING BETTEr uSE OF ICTS TO ACHIEVE SDG 1 AND SDG 2 IN rurAL ArEAS� � � � � � � � � � � � � � � � � � �18

5. ITHE WAY FOrWArD: PArTNErING FOr DIGITAL INNOVATION � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �19

rEFErENCES � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �21

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1. INTrODuCTIONInformation and communication technologies (ICTs) make a significant contribution to growth and socio-economic development in countries and regions around the globe� The widespread adoption and integration of ICTs has reduced information and transaction costs, improved service delivery, created new jobs, generated new revenue streams, and helped conserve resources� ICTs have also transformed the way businesses, people and governments work, interact, and communicate�

ICT innovation is also revolutionizing the agriculture and food sectors� In developed economies, innovations such as artificial intelligence, the Internet of things, data analytics and block-chain are changing the way agriculture does business� Remote sensors collect data on soil moisture, temperature, crop growth and livestock feed levels, enabling farmers to achieve better yields by optimizing crop management and reducing the use of fertilizers, pesticides and water�

ICT companies, multinationals and large machinery manufacturers, as well as small and medium farm input suppliers, provide services (including extension) to farmers and their organizations through digital means� Downstream, supermarkets and agricultural product buyers engage in the food value chain through ICTs� New technologies are also used by farmers’ cooperatives, international organizations, civil society, and governments to provide information on many aspects of farming, including regulation�

However, the rapid global revolution in ICT stands in stark contrast to the continuing high numbers of extreme poor and hungry individuals in the world� The new digital technologies and innovative use of ICTs creates enormous opportunities and poses daunting challenges to ending poverty and hunger� On one hand, there is potential to increase productivity and wealth, generate new activities, products and services, and improve livelihoods�

On the other hand, such opportunities can lead to further alienation of marginalized communities and an exacerbation of existing socio-economic inequalities� In fact, not all communities benefit from emerging technology and ICT-driven innovation�

Many continue to rely on traditional ICTs or have limited access to ICTs� To what extent can digital innovation better serve those farthest behind? Can ICTs benefit the more vulnerable layers of our society living in rural areas? Can they help reduce risks in agriculture and increase profit for small-scale producers? Can they provide alternative livelihoods to new generations of rural youth looking for a better future? How can digital innovation and new use of ICTs in agriculture contribute to eliminating rural poverty and hunger, and provide alternatives to migration?

This information note explores these questions and the potential for ICTs and digital technologies to accelerate the achievement of Sustainable Development Goals 1 (No poverty) and 2 (Zero hunger) within the context of rural areas�

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targeted poverty reduction programmes in prioritized and marginalized areas� Access to ICTs can help reduce rural isolation, enhance family solidarity, increase access to information and services, improve the ability to find employment and, at a community level, lead to higher economic capacity and productivity and wider citizen participation in democratic processes� Experience shows that this can be achieved with affordable devices and Internet access, especially if these services are delivered through local entrepreneurs or community access networks�

2. THE CHALLENGES AHEAD

Reaching SDG 1 and SDG 2 requires governments, international organizations and society to take all necessary measures to eliminate extreme poverty and ensure access by all people to safe, nutritious and sufficient food all year round – all of this within the next 12 years�

Considerable progress has been achieved in reducing poverty in the last three decades, mainly driven by China’s economic transformation� However, over 2 billion still live in poverty, including 783 million people living below the extreme poverty line� From 1993 to 2013, while overall levels of extreme poverty dropped, the share of the extreme poor living in sub-Saharan Africa and South Asia increased from 18 percent and 29 percent to 51 percent and 33 percent, respectively (World Bank, 2016b)� The estimated number of undernourished people actually increased, from 777 million in 2015 to 815 million in 2016 (FAO, 2017a)�

With future population growth concentrated in sub-Saharan Africa, it is there in particular that the struggle to achieve SDGs 1 and 2 will take place� Out of the additional 2�2 billion people who may be added to the global population between 2017 and 2050, 1�3 billion will be in Africa� There will be more youth in sub-Saharan Africa than anywhere else in the world (UNDESA, 2017)�

Traditional and new ICTs, such as radio, the Internet, television, mobile applications, drones and satellites facilitate communication and the processing and transmission of information� They can be effective instruments for empowering rural populations, increasing choices for rural men and women, especially youth, and enhancing their abilities in order to increase incomes and better participate in the development of their communities�

The application in agriculture of digital trends, such as artificial intelligence, machine learning, data science and analytics, the Internet of things, remote sensing, crowdsourcing, and block-chain, is helping the world move beyond information delivery to knowledge sharing� When effectively deployed, ICTs facilitate the provision of and access to formal and informal education, the delivery of public services, and the implementation of

Key FactsIn the last 15 years, Internet and digital usage has increased rapidly; more people now have mobile phones than sanitation or clean water. Today, there are nearly 4.3 billion mobile-broadband subscriptions in existence (ITU, 2017). Over 3.6 billion individuals use the Internet, and even among the poorest 20 percent of the population, 7 out of 10 households have a mobile phone (World Bank, 2016a).

But the role of ICTs and digital innovation for poverty and hunger elimination requires addressing the digital divide between rich and poor� There is a gap between those developing and using new technologies and those relying on others to develop solutions� The number of mobile-broadband subscriptions in least developed countries (LDCs) has grown more than 50 percent annually over the last five years� However, only 15 percent of households in LDCs have Internet access at home, and just over 20 percent have a mobile-broadband subscription – four times less than in developed countries (ITU, 2017)� Furthermore, only 22 per 100 inhabitants use the Internet in Africa, compared with 48 per 100 globally (ITU, 2017)�

For this reason, the impact of these technologies could be negative if the digital divide is not addressed, increasing the probability of the most vulnerable being left behind� The risk is increasing inequality between those who have access and those who do not, thus increasing the rewards for people with skills and access while upping the penalties for those without (World Bank, 2016a)� These inequalities are reflected between industrialized and agricultural economies, urban and rural areas, men and women, and among economic classes�

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As with other productive resources and services, women in rural areas have less access to ICTs than men� The gap in the proportion of women worldwide using the Internet compared with men was 12 percent in 2017 (ITU, 2017)� This gap correlates with levels of economic development and is largest in LDCs, at 33 percent� Regional disparities are significant, ranging from 25 percent in Africa to 2 percent in the Americas - the latter in favour of women (Figure 1)� While the gender gap has narrowed in most regions since 2013, it has widened in Africa (ITU, 2017)�

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Figure 1. Internet user gender gap (%), 2012 and 2017

Source: ITU, 2017.

On the other hand, youth are particularly connected: 71 percent of young people aged 15–24 use the Internet, compared with 48 percent of the total population (ITU, 2017)� And, youth represent a higher share of people online in LDCs compared with youth in developed countries (Figure 2)� However, youth in LDCs remain less connected than youth in developed countries� Most poor youth live, and will continue to live, in rural areas� Agriculture will continue to be the main source of employment for this demographic group, particularly in Sub-Saharan Africa�

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Proportion of youth (15-24) Internet users Proportion of youth (15-24) in the population

Figure 2. Proportion of youth (15-24) Internet users and youth in the population, 2017

Source: ITU, 2017.

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The four categories of barriers to Internet adoption are: low incomes and affordability, user capability, infrastructure and incentives, (McKinsey, 2014)� The limited availability of ICT applications and content directly relevant the world’s poor is a disincentive� Overcoming these barriers requires skilled human resources, institutional capacity to ensure the right information in the right formats, and a broader range of e-government services that use open Information Technology standards� Moreover, ICT training should be tailored to the particular needs of poorer rural populations, including their language, culture and traditions�

For young people, access to information means better access to capital, markets and training needed to pursue a career or studies; increased participation in political processes; and recognition of youth as responsible citizens in today’s society� Youth entrepreneurship – which is facilitated by access to technology, the Internet and information – is fast being positioned as a solution for youth employment, whether it is in urban or rural areas� Boosting ICT adoption among poor young people will require facilitating access to cheaper and more reliable access to ICT devices and connectivity and making services more relevant for them�

Efforts in this field must go hand in hand with increased capacity development in ICT for the poorer layers of the population as well as support for ICT-based innovations aiming specifically at vulnerable populations� Training and digital innovation ecosystems can help stimulate the development of youth-driven ICT and digital services to address concrete challenges faced by local communities� Innovation enablers must be created in local communities to support entrepreneurship and innovation, ultimately generating inclusive growth�being positioned as a solution for youth employment, whether it is in urban or rural areas�

Boosting ICT adoption among poor rural people, especially women and youth, will require facilitating access to cheaper and more reliable access to ICT devices and connectivity and making services more relevant for them� Efforts in this field must go hand in hand with increased capacity development in ICT for the poorer layers of the population as well as support for ICT-based innovations aiming specifically at vulnerable populations� Building up human capacity is as critical as the development of infrastructure for better connectivity�

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A review of several applications and studies suggests that the information relayed by ICTs should be properly targeted in order to guide livelihood decisions� In the case of agriculture, for example, the information provided to farmers must be locally relevant and specific to their needs (e�g� prevailing food prices in local markets)� This requires local knowledge and significant resources (Nakasone, Torero and Minten, 2014)� The manner or mode in which information is delivered is also a crucial determinant of effectiveness� ICTs encompass many different types of technologies, from computers and the Internet to radio and television to mobile phones�

Impact varies widely depending on which specific technology is used, but also on users’ level of literacy� SMS, voice messages, short video trainings, audio messages, social media interventions and virtual extension platforms that can improve peer networks (though online platforms/websites) can effectively enable one-to-one information sharing� Audio or voice-based question and answer services may overcome the limitations of text-based platforms� SMS messages can be effective for simple price or weather information, but to facilitate and revolutionize learning and make knowledge widely accessible, other more innovative methods will be necessary�

3. MAKING DIGITAL INNOVATION WOrK FOr SMALL-SCALE PrODuCErS AND rurAL DEVELOPMENT

Rural households are economic agents that make their choices using all of the information available to them� Based on this information, they choose which economic activity to pursue, what to plant, which inputs to use and how, when to plow or fish, when to seed, when to harvest, how much to keep for consumption in the household, how much to sell to raise cash, and how much to store� They often make their choices in an adverse economic environment in which markets do not function well, they face the difficult challenge of managing risk, and where very little information is available to inform their decisions� As a result, their choices are often not optimal� ICTs and digital innovation can play a crucial role in bridging this critical information and advisory gap (Figure 3)�

Figure 3. The role of ICTs for information in agriculture

Agricultural extension & advisory service

Promoteenvironmentally

sustainablefarming practices

Disaster management &early warningsystem

Enhanced market access

Food safety andtraceability

Financial inclusion, insurance

& riskmanagement

Capacitybuilding &

empowerment

Regulatory & policy

The role of ICTS in

agriculture

ICTs can widen the reach of local communities, including women and youth, and provide newer business opportunities, thereby enhancing livelihoods.

ICTs assist with implementing regulatory policies, frameworks and ways to monitor progress.

ICTs increase access to financial services for rural communities, helping to secure savings, find affordable insurance and tools to better manage risks.

ICTs help deliver more efficient and reliable data to comply with international traceability and standards.

ICTs bridge the gap between agricultural researchers, extension agents and farmers theyreby enhancing agricultural prodiction.

ICTs improve access to climate-smart solutions as well as appropriate knowledge

to use them.

ICTs provide actionable information to communities and governments on disaster

prevention, in real-time, while also providing advice on risk-mitigation techniques.

ICTs facilitate market access for inputs as well as product marketing and trade in a

variety of ways.

Source: FAO & ITU, 2016a.

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Sharing information, practices and knowledge among farmers facing similar challenges is also crucial to help them improve their productivity and livelihoods� ICTs can also facilitate dialogue between stakeholders and across levels, and trigger learning through knowledge networks and platforms that provide a venue for the diverse actors to connect (FAO, 2013a)�

By increasing communication linkages between farmers, extension agents and research centres, ICTs can improve the flow of relevant information among all these agents (Aker, 2010)� They can also enhance access to private information from social networks, thus facilitating learning from one’s peers, which is crucial for technology adoption� Finally, ICT and digital innovation have enabled increase availability of local and hyper-local knowledge and data such as cloud-based crowdsourcing innovations to collect real-time information from individuals�

The following paragraphs explore how digital innovation can make a significant contribution towards the eradication of poverty and hunger� Traditional and new ICTs, can help provide access to rural advisory and financial services, market and weather information� They can help mitigate and adapt to different types of risk, including providing early warning on droughts or floods, animal and plant diseases and pests, as well as other production risks� ICTs can also help with resource management and sustainable intensification of production, as well as broader, complementary policies key to rural smallholders, such as development of farmer registries or social protection programmes�

To effectively contribute to the 2030 Agenda commitment of leaving no one behind, this contribution must happen in two dimensions� First, ICTs must be geared towards fostering more inclusive growth, allowing family farmers, smallholder producers and other poor rural households to participate in, and benefit from, the growth process� Second, the access to, and use of, ICTs by the hungry and poorest of the poor in rural areas requires addressing the particular vulnerabilities that they face in developing sustainable livelihoods�

3.1 rural advisory services and e-learningTraditional extension services face several challenges in developing countries that limit their efficiency� Poor infrastructure makes it harder and more costly to visit remote areas� For this reason, extension programmes often provide only one-time information to farmers, lessening their long-term impact� In addition, traditional extension is plagued by principal-agent and institutional problems, including a lack of accountability (Nakasone, Torero and Minten, 2014)�

Knowledge sharing and training methods innovatively using ICTs are important vehicles for improving access to information and enhancing knowledge on sustainable production intensification technologies� Mobile learning, e-learning and advisory services all offer a major opportunity for the poor to overcome many obstacles to information and education, such as time availability, costs, distance and sociocultural norms� ICTs can increase smallholder access to timely information while reducing the cost of extension visits, enabling more frequent two-way communication between farmers and agents, and increasing agents’ accountability (Cole and Fernando, 2012)�

Agricultural services and digital inclusion in AfricaIn 2017, FAO launched the project Agricultural Services and Digital Inclusion in Africa to improve the provision of relevant information and advisory services to poor farmers through the development of mobile apps.

Four applications were developed using local content (crop calendar, market information, animal production/health, human nutrition) in Senegal and Rwanda. A particular emphasis is placed on the needs of young, self-employed entrepreneurs and female-headed households, breaking down the barriers for access and use of information through digital technologies.

Source: FAO, 2017d

A number of barriers need to be overcome for mobile learning to attain its full potential� Mobile devices are often viewed as offering entertainment rather than education and the technology is sometimes dismissed as distractive or disruptive� The costs related to owning a mobile phone and mobile learning also remain a barrier to accessibility, but sharing mobile devices can reduce costs and increase cooperative learning (FAO, 2018)�

A good example of innovative use of ICTs for advisory services is the Community Knowledge Workers initiative of the Grameen Foundation (2018)�

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3.2 Meteorological informationWeather and climate services and products are important instruments for small-scale producers, allowing them to plan agricultural activities, optimize production, manage climate-related risks and integrate climate change adaptation in their decisions� ICTs are used by meteorological agencies to collect, disseminate and analyse agrometeorological and agro-climatological data and information�

Basic weather information provided via SMS can be complemented by more complex information on crop production, water, soil and vegetation, as well as early warning and disaster preparedness� All this information can be provided at the farm level, as user-friendly, comprehensive services, directly to farmer groups� Services can also be broadened to include information related to water use, such as irrigation schedules, crop water requirements, warning for pests and diseases, crop advice, and markets�

For example, SmartCampo (2018) is a mobile application through which farmers can check current weather conditions in Paraguay and Brazil from available stations, and then generate custom reports of farms and fields based on planting date, soil texture and irrigation practices� Farmers may also choose to receive daily or weekly notifications with weather conditions observed in their fields�

Continually updated climatic and weather information is also used in data platforms and modelling systems, which provide monitoring and early warning on food security� The Global Information and Early Warning System on Food and Agriculture (GIEWS), based at FAO, continuously monitors food supply and demand and other key indicators for assessing the overall food security situation in all countries of the world� It issues regular analytical and objective reports on prevailing conditions and provides early warnings of impending food crises at the country or regional level�

GIEWS also strengthens national capacities in managing food security-related information with country-level application of tools for earth observation and price monitoring�

The initiative brought together a network of community agents in Uganda who act as intermediaries between smallholders and smartphone app content developers� This initiative overcame a number of challenges associated with traditional extension services – such as lack of extension agents, remoteness and difficulties in reaching rural areas – as well as those associated with access and affordability of ICTs� Technology has become more accessible for these poor communities since the Community Knowledge Worker is the focal point and thus the only one who needs access to a smartphone (Yonazi et al., 2012)�

Dimitra clubsThe FAO Dimitra listeners’ clubs are groups of women, men and young people – mixed or not – who decide to organize themselves to work together to bring about changes in their communities. They meet regularly to discuss the challenges they face in their daily lives, make decisions and take action to resolve their problems.

The clubs aim at promoting the leadership and voice of rural areas’ most vulnerable people, particularly women and youth, in an effort to improve their livelihoods and food security, mainly in Africa. They make extensive use of simple ICTs such as wind-up solar radio sets and mobile phones operating in fleets.

Today, there are more than 1000 of these clubs in Niger alone and their numbers keep growing. The clubs also allow women to share skills and experiences with each other and learn about agricultural activities that help them make an income.

Source: FAO, 2015c

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3.3 risk management in agriculture

3.3.1 Early warning/drought-flood alertThe effects of climate change are making the goals of achieving food security and improving rural livelihoods increasingly challenging� In this context, information is key to preparedness; for farmers, this could mean the difference between a successful and a failed harvest� ICT-based tools can assist in reducing the risks faced by smallholders�

One of the most effective ways to disseminate early warnings as well as agricultural pest and disease information is through the use of SMS� Increased digital capabilities and innovative solutions enable rapid, real-time information to be shared to warn individuals and communities contributing to disaster risk reduction and resilience building� ICT innovations for early warning and disaster information systems to mitigate climate related risks exist worldwide�

3.3.2 Control of pests and diseases

Plant pests and diseases

Monitoring and providing early warning on the spread of pests (such as locusts and other migratory pests) and outbreaks of plant diseases is crucial to ensure that timely and appropriate action can be taken when an emergency arises�

ICTs and emerging technologies have become essential for linking global weather and ecological information with disease and pest related information� Real-time, georeferenced data is collected in the field, sometimes remotely, and then centralized and analysed on a daily basis to alert when conditions are prone to the spread of pests for example�

FAO plays an important role in coordinating efforts to improve management of plant pests and diseases at the global level – including as part of the Emergency Prevention System for Transboundary Animal and Plant Pests and Diseases (EMPRES) Programme� ICT technologies and innovations, used for example by the FAO Desert Locust Information Service (DLIS), drastically improved early warning, forecasts and control of desert locust outbreaks�

Working together for climate change adaptationFAO and the World Meteorological Organization (WMO) have recently strengthened their cooperation to help poor farmers adapt to climate change. The two organizations are working on strengthening agro-meteorological services and making them more accessible to farmers and fishers through digital services, starting in Senegal and Rwanda. A key objective of this collaboration is to develop national capacities to provide meteorological and climate data for improved agricultural information to facilitate their integration into agriculture policies, plans and strategies.

Another platform is SERVIR, jointly developed by NASA and USAID, which works in partnership with leading regional organizations worldwide to help developing countries use information provided by orbiting satellites and geospatial technologies to manage climate risks and land use (NASA, 2018)�

AfricaAdapt in Senegal facilitates vulnerable communities’ access to information on climate change adaptation from researchers, policy-makers and civil society organizations� It acts as a community of practice, and is supported by a website where members can share updates on face-to-face meetings about their work and adaptation techniques�

At the micro level, the provision of timely updates on local meteorological conditions can allow for sending early warning messages related to extreme weather events – such as potential flooding, for instance�

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First detected in Africa in 2016, the Fall Armyworm feeds on more than 80 plant species, including maize, rice, sorghum and sugarcane, but also vegetable crops and cotton, with devastating impact on agriculture in Africa� FAO has developed a mobile app to enable farmers, agricultural workers and other partners at the frontline of the fight against Fall Armyworm in Africa to identify, report the level of infestation, and map the spread of this destructive insect, as well as to describe its natural enemies and the measures that are most effective in managing it� The app helps with monitoring and early warning� The data will eventually feed into a cloud-based global platform for the mapping and analysis of Fall Armyworm location and movement�

Regarding transboundary plant diseases, ICTs are used for collection and processing of surveillance data as well as for sharing findings and alerting the relevant stakeholders and farmers� Status of diseases can be monitored either through formal surveillance networks or through open crowdsourcing platforms� In addition to standard networks, mobile communication tools can help real-time collection of data from the field�

The Global Wheat Rust Monitoring System is a good example of a tool for close monitoring of a disease situation, allowing decision-makers to mobilize funds and people to prevent or control disease outbreaks� The tool can also serve for early warning of producers about emerging threats and outbreaks, as well as facilitating collection and exchange of data on the spread of wheat rust diseases and the varieties affected, thus helping both researchers and decision-makers�

Animal diseases

The fast growth in global demand for livestock products countries all over the world offers new opportunities for rural households to generate additional income, provided that one of the main constraints, infectious diseases, is controlled�

ICTs have become essential in the continuing fight against these diseases� Early warning through use of ICTs allows for quick and efficient response to control transboundary and high-impact animal diseases� ICTs also help addressing zoonotic diseases where there is a risk of transmission to humans�

Many examples also exist of national veterinary services switching from paper reporting to smartphone-based disease reporting systems, greatly reducing the time gap between outbreak declaration and response�

The FAO Desert Locust Information Service (DLIS)The Desert Locust Information Service (DLIS) continuously monitors the locust situation. Satellites cannot detect the insects themselves but can accelerate identification of potential breeding areas and make ground interventions more effective. Remote sensing imagery is used to detect desert areas in which rain has fallen, where soil is sufficiently moist for egg-laying, and where vegetation is green to provide food and shelter for locusts. Google Earth Engine technology is used to deliver these products faster to affected countries and decision-makers. In addition, national locust survey and control teams use rugged handheld tablets in the field to record their observations, and then transmit them in real time via satellite to their national locust control centres and to FAO DLIS.

Georeferenced data in the field are collected and analysed on a daily basis. This analysis, carried out by the national control locust centres and FAO DLIS, relies on a range of computer-based software tools which were developed by FAO and several partners for early warning purposes, as well as specific hardware such as the handheld device called eLocust. These components constitute the oldest migratory pest monitoring and early warning system in the world. FAO is currently investigating the use of drones to support survey and control operations.

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3.3.3 Insurance schemesInsurance services are a key determinant for the adoption of sustainable production intensification approaches, especially in the context of climate change� Insurance builds resilience and unlocks opportunities that facilitate investment in new agricultural technologies or inputs�

Innovative instruments, such as index insurance, differ from traditional indemnity insurance, where payouts are explicitly based on measured loss� Instead, in index insurance farmers can purchase coverage based on an index that is correlated with those losses, such as wind speed, the amount of rain during a certain period (i�e� weather-based indices), or average yield losses over a larger region (area yield indices)�

ICT innovations in earth observation, satellite rainfall estimations and remote sensing, combined with in situ data, have helped overcome the high transaction costs associated with traditional multi-peril crop insurance� Millions of smallholder farmers, of which many were previously considered uninsurable, have now access to market-based index insurance products (Greatrex et al�, 2015)�

Microinsurance programmes, such as Kilimo Salama, use ICTs to enhance access to insurance products� Kilimo Salama allowed Kenyan smallholder farmers to insure farm inputs against droughts or excessive rain through prepaid mobile phone fees – for example, a USD 2 bag of seeds would be insured for 10 cents� The initiative evolved into the Agriculture and Climate Risk Enterprise Ltd� (ACRE) that now undertakes risk assessments, product development and risk monitoring to facilitate access to insurance products for smallholders in Kenya, Rwanda and the United Republic of Tanzania (van Vark, 2012)�

The FAO Global Animal Diseases Information System (EMPrES-i)The Global Animal Diseases Information System (EMPRES-i) is today a global reference database for animal diseases including zoonosis. As part of FAO’s EMPRES programme, this is a web-based platform that provides real-time information on animal disease distribution and current threats at national, regional and global levels. EMPRES-i makes accessible to stakeholders epidemiological data on animal disease outbreaks and surveillance such as African swine fever, avian influenza, foot-and-mouth disease and Rift Valley fever. This platform stores disease outbreak records and monitors diseases for provision of health threat alerts, and has become a global reference database for animal diseases including zoonosis.

One of the main tools of EMPRES-i is the Event Mobile application (EMA-i), a digital tool used by veterinary services that provides real-time disease information from the field. The FAO EMA-i app allows for the collection and transmission of georeferenced data on animal health events in the field. The app includes mapping and reporting sections. All data collected and transmitted with EMA-i is stored in EMPRES-i, with access restricted to authorized users. The system is in use in Uganda, the United Republic of Tanzania, and Mali, with expansion foreseen in other African countries.

These early detection/early response systems have prevented the spread of diseases that may have led to regional or national crises if no action had been taken� The use of individual microchips also allows for traceability of livestock (origin, vaccination status) thereby facilitating both intra- and cross-border trade and movement of livestock, which is very relevant to rural economies in sub-Saharan Africa for example�

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orders from online consumers and delivers sorted and cleaned groceries, vegetables and fruits� China’s e-commerce market, the world’s largest, is opening the doors to the huge rural market for companies and farmers� The two biggest companies, Ali Baba and Jing Dong, have set up service stations in villages to help local consumers with fewer skills to shop online� Jing Dong has special programmes that contribute to the government’s priority of eradicating poverty and one strategy is through direct support to local districts for building online halls of special local products�

The use of e-commerce for rural poverty reduction has potential that goes beyond connecting small-scale agricultural producers with clients� In areas where agriculture is seasonal, e-commerce can be used to sell artisanal and other products produced in the counter season� In Thailand, the sales of ecotourism and socially responsible tourism activities using electronic platforms has also grown thanks to an ITU-FAO collaboration, contributing to the diversification of economic activities in rural areas�

3.5 Natural resource management and productive inclusionDigital technology tapping into satellite imagery is revolutionizing the way countries can access, monitor and plan the use of their natural resources, including monitoring deforestation and desertification� Access to easy-to-use digital tools that monitor forest cover, land-use patterns and their changes over time are destined to become increasingly important as countries around the world implement measures to adapt to and mitigate climate change�

FAO and Google have partnered to enhance access to geospatial data and analysis through the Open Foris initiative� This initiative combines Google’s Earth Engine with the Organization’s international expertise to address complex issues relating to forestry, land cover and land use� The open source app allows even a smallholder equipped with a smartphone to better measure and monitor a piece of land no bigger than an acre, in order to assess deforestation and forest degradation�

ICTs can also facilitate access to inputs and information that are crucial for poor farmers to increase their production� E-vouchers for example, allow farmers to access inputs (seeds, fertilizer, etc�) using their mobile

3.4 Market information and e-commerceICTs can bring significant benefits to small-scale agriculture through better price information on markets� Prices signal opportunities for producers, consumers and traders – such as when excess demand is creating more profitable opportunities to sell� They also reflect changing consumption patterns and contain information that can be used by small scale producers when they decide what and how much to produce� Farmers can better plan production and investments based on supply-and-demand fundamentals, thus increasing market efficiency�

Facilitating market access by providing price information is the most frequent ICT application in agriculture and is considered an area where new technologies hold significant potential for impact� A number of studies provide a range of estimates for the effect of price information on smallholders’ sale prices and profits� In rural areas of Niger, agricultural price information obtained through mobile phones has reduced search costs by 50 percent (Aker and Mbiti, 2010)� The dissemination of price information in Uganda resulted in a 15 percent increase in farmgate prices for maize (Svensson and Yanagizawa, 2009)� Similar effects are suggested by researchers in Peru and the Philippines (Beuermann, 2011; Labonne and Chase, 2009)�

One example of market information service is the one proposed by RML AgTech Pvt� Ltd� (Formerly known as Reuters Market Light)� Launched in the Indian state of Maharashtra in 2007, it provided an affordable SMS service with daily updates on prices, markets and weather to subscribing farmers� The platform later evolved to offer this information through a smartphone application, and currently also provides customized market data reports to banks, procurement companies and other organizations on market prices, volumes and other information covering many crops and 1 300 markets across India (RML Global, 2017)� An estimated 5 million farmers have benefited�

E-commerce itself is an increasingly important market mechanism� Per capita spending on Internet retailing worldwide has doubled each year for the last three years (Krishna, 2017)� E-commerce presents advantages to both consumers and sellers, as it eliminates most intermediaries and helps reduce inventory� There are innumerable examples in India and China of applying e-commerce in agriculture – for example, through an online grocery portal that receives

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The FAO Collect Mobile appAnother good example of use of the OpenForis set of software tools is the Collect Mobile app in Kazakhstan where over two million families earn a living from milk production. Smallholders produce approximately 80 percent of the national milk output. However, owing to long and complex value chains, milk producers and processors are often not in contact with one another.

Using the FAO-borne Collect Mobile app, milk processors conduct field-based surveys to capture, validate and analyse data on milk availability. With GPS-equipped Android devices, processors use the app to geo-locate and manage this vast network of milk suppliers. It also helps to optimize collection routes in order to reduce transportation costs and forecast capacity needs of cooling tanks and refrigeration transport. Furthermore, Collect Mobile allows for direct interaction between processors and farmers and enables dairy companies to provide advice on various topics from improved hygiene to farm management.

phones or electronic voucher cards� Instead of using middlemen, farmers source inputs directly from seeds producers and suppliers� In Zambia, the Farmer Input Management Voucher System has successfully addressed many of the challenges in distributing inputs to smallholders, enabling real time monitoring of farming activities and facilitating reconciliations and payments for agro-dealers and suppliers�

3.6 Farm registriesRegistries serve as a mechanism for targeting and creating effective demand for government services� The establishment of a farmer’s registry is now being recognized as a way to establish legal recognition of farmers, thus removing barriers to access to several forms of social and financial benefits�

The registry can be used as a basic tool for agricultural development and provision of agricultural services as well as for social assistance programmes� It aims to ensure a starting base for effective reach and coverage of targeted agricultural services and benefits, with potential social protection/rural services benefits (health, crop insurance, basic income, old age pension, credits and others) for farmers and groups of farmers through a well-defined, established farmers’ registry within the Ministry of Agriculture�

Examples of ICT use in registries include the Unique Identification Number Project of the Government of India (Sahu, 2011) and Brazil’s Unified Registry for Bolsa Familia (Ministerio do Desenolvimento Social, 2018)�

Supporting farm registries in LebanonIn the context of the Regional Initiative on Small-scale Family Farming, FAO has worked with the Government of Lebanon to establish a national farmers’ registry in the governorates of Akkar and the Bekaa, to ensure farmers’ and workers’ access to agriculture and social services.

The system gathers information on farms and their production, a Land Parcel Identification System, cadastral maps, and land cover/land use maps. It also includes socio-economic information on households and workers.

FAO is also supporting the country in developing a legislative and institutional framework for establishing the registry on a national scale. This was a critical first step to ensure access to agriculture and social services, social security and assistance benefits for farmers and rural workers.

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3.7 Financial inclusionIn many cases, smallholders lack access to formal banking services� Village Savings and Loans Associations (VSLAs) allow them to save and access credits� Saving and taking out loans facilitate investment and consumption smoothing� While VSLAs are both convenient and flexible, they are not as secure as larger formal institutions� ICTs can reduce costs and address this issue� Transfers and payments, credit, savings and insurance are examples of financial services that are now offered through ICTs and innovative digital solutions�

On the provider’s end, ICTs can significantly help improve rural communities’ access to such services by giving financial institutions the means to enter rural markets without the need for high-cost branches� On the client’s end, mobile and smart phones can now be used for receiving money and making payments and access loans� Sending and receiving money through mobile phones has the added advantage of avoiding the need and cost to visit the bank in person, saving

valuable time� It also contributes to the empowerment of women and a positive shift in men-women relationships�

CARE in East Africa is experimenting with connecting its VSLAs to the formal banking system� Each association has a single account tied to a bank, which can be tracked and managed via a mobile phone� The advantages of these links and innovative use of ICTs are that they provide access to additional products from the bank, reduce the likelihood of theft or loss of the savings, and improve the management and accounting of associations’ finances (AllAfrica, 2011)�

M-Pesa (M for mobile and pesa for money in Swahili) by Safaricom Ltd is probably the best known mobile finance application� Highly successful in Kenya, M-Pesa allows people from all around the country, even in the most remote areas, to transfer money directly, saving considerable amounts of time and money� The service is now used by about 70 percent of the adult population of Kenya� Since its founding, it has expanded significantly into other services, such as savings, and new clients, such as businesses�

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3.9 Sharing knowledge and innovationNot only do ICTs facilitate farmer-to-farmer exchange but they can also help sharing knowledge at the global level� In 2007, in collaboration with 13 founding partners, FAO launched the e-agriculture community of practice, a platform where people from all over the world can exchange information, ideas and resources related to the use of ICTs for sustainable agriculture and rural development� With over 14,000 members from 170 countries and territories, the e-Agriculture Community is made-up of individual stakeholders such as information and communication specialists, researchers, farmers, students, policy makers, business people, development practitioners, and others� Its members have a common interest: improving policies and processes around the use of ICT in support of agriculture and rural development, in order to have a positive impact on rural livelihoods�

More recently, FAO, together with ITU, is leading a worldwide initiative to engage young innovators and entrepreneurs through hackathons and challenges: #HackAgainstHunger aims to develop ideas into impact and to support young entrepreneurs by incubating and accelerating innovative tech-driven solutions that contribute to ending hunger and food insecurity� #HackAgainstHunger 2018 included hackathons in the Caribbean, Egypt, Rwanda and Switzerland, bringing together private and public experts to guide hackers to identify practical interventions and approaches to address challenges around food and agriculture� Hackathons, accelerators, hubs, labs all work as platforms for social change in the food and agriculture sector and contribute to employment creation� Similarly, the FAO-ITU biennial E-agriculture Solutions Forum brings together various actors to facilitate knowledge sharing on the use of sustainable ICTs for agriculture�

3.8 Social protection programmesSocial protection is recognized as a critical strategy for reducing poverty, building resilience and enabling development� Evidence from Latin America and sub-Saharan Africa shows that it increases food security, nutrition and human capital development, as well as productive and economic capacity of the poorest (FAO, 2015a)�

Access to predictable, sizeable and regular social protection benefits can, in the short term, protect poor households from the impacts of shocks, including erosion of productive assets, and can minimize negative coping practices� In the longer term, social protection can help to build capacity, smoothing consumption and allowing for investments that contribute to building people’s resilience in the face of future threats and crises�

ICTs are increasingly used to leverage social protection programmes, increasing their scale and outreach� They play an important role in modernizing social protection systems, enhancing social services quality and equal opportunity/fair access (Misuraca et al., 2017) by:

> supporting the process of social services delivery reform, given the potential opportunities for open collaboration and participation;

> digitalizing processes and improving the efficiency of payment mechanisms, allowing for savings on operational costs and benefit provision;

> increasing intervention effectiveness and reducing social services fragmentation and duplication across organizations and countries;

> making social services more proactive and closer to the point of need, through effective identification and targeting of beneficiaries;

> increasing accountability, and transforming and extending the reach of service delivery to the underserved�

Moreover, in the context of risk-informed and shock-responsive social protection, ICTs can be a powerful tool to support the effective linkages of early warning systems and social protection management information systems, and in this way deliver a response before potential crises arise� Additionally, state-of-the-art management and information systems enhance transparency in terms of reaching beneficiaries before, during and after specific shocks�

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International organizations such as FAO play a special role in the production and dissemination of this knowledge� Since 2013, FAO has collaborated with the International Telecommunication Union (ITU) to support countries in developing their national E-agriculture strategies� The world’s first e-agriculture strategies were developed in Bhutan and Sri Lanka�

Since then, FAO and ITU have replicated the experience in the Philippines, Papua New Guinea, Fiji and Afghanistan and are now planning to scale up the initiative at the global level� An E-agriculture Strategy Guide (2016) was recently piloted in Asia Pacific countries with the supported of partners, including the Technical Centre for Agricultural and Rural Cooperation (CTA)� The guide is an excellent starting point for developing e-agriculture strategies that support poverty and hunger eradication at national levels in low- and lower-middle-income countries�

Nevertheless, while digital innovation, ICTs and e-agriculture can contribute to rural poverty reduction, it is not a magic bullet either� They do not replace the key elements of sustainable livelihoods in agriculture and/or rural areas that the poor are often lacking, such as access to and ability to sustainably manage natural resources; access to land, other assets and labour; and quality education and health�

Moreover, policies and strategies for agriculture and rural development need to be accompanied by a reversal of historic underinvestment in agriculture and rural areas� They require physical and institutional infrastructure development, particularly at the village level; investment in quality health and education services; addressing of water and soil constraints; effective rural financial institutions, and social protection programmes in place�

4. MAKING BETTEr uSE OF ICTS TO ACHIEVE SDG 1 AND SDG 2 IN rurAL ArEAS

The benefits of ICTs should be made available to all citizens of the world in order to facilitate communications and achieve more effective development� ICTs are a powerful means of implementing change for rural poverty reduction in the speed and scale of uptake, reduced deployment costs, growth in public awareness and delivery of innovation (Sachs et al., 2015)� In order to leave no one behind, specific efforts will be required to bring the benefits of ICTs to the poorest and most vulnerable�

In developed countries, the private sector engages in innovative ICT applications, providing commercial services to their clients who have access to the Internet and mobile devices� These companies have made significant investments in ICT services, leveraging on economies of scale and their market share�

Through their ICT services they collect data on the farming practices of their clients, process and analyse it, and relay the results back to them, thus enhancing production efficiency and in many cases providing wider benefits – such as preserving natural resources, as in the case of precision agriculture� The sale of innovative inputs and the provision of specific know-how to farmers through ICTs generate returns for these companies, which often are protected by patents and copyright�

But many aspects of agricultural information are public goods� This has policy implications, and governments play a role in its provision to ensure that it is not undersupplied� For example, knowledge on how to adapt to and mitigate the negative impacts of climate change on agriculture is considered a global public good� In recognition of this public good, governments have affirmed the importance of education, training, public awareness, public participation, public access to information, and cooperation at all levels on the matters related to climate change (UNFCCC, 2015)�

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5. THE WAY FOrWArD: PArTNErING FOr DIGITAL INNOVATIONIn August 2017, FAO established the Digital Innovation Unit with the mission to lead, coordinate and promote FAO’s work on digital innovation for rural development� From earth observation satellites to mobile technology to block-chain and machine learning, the Digital Innovation Unit is embracing innovation to complement FAO long history of compiling on-the-ground information� Sustainable and responsible innovation is never a stand-alone activity, but rather a process involving different actors to find joint solutions to shared global challenges� FAO’s approach relies on new partnerships with the private sector, civil society and academia to source ideas from across the world, leveraging combined expertise�

The FAO Digital Innovation Unit seeks to create a Digital Innovation Ecosystem, bringing together UN experts, young entrepreneurs, public entities, researchers, investors, and civil society organizations to find innovative joint solutions that address the global challenges in the food and agriculture sector� This ecosystem will drive digital innovation from ideation to implementation to explore, test, and scale new technology solutions and business� The Digital Innovation Ecosystem will consist of Digital Innovation Labs, Incubators and Accelerators in less developed countries and across the globe working together as creative, collaborative and fast-paced environments to foster entrepreneurship, sustainability and scalability�

FAO has also launched a Digital Innovation Programme to eliminate the barriers to adoption of digital innovations and promote open innovation and digital inclusion in rural areas� FAO’s extensive knowledge, field expertise, and wide-ranging networks are leveraged to support the development of digital innovations that address global challenges to food and agriculture�

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Figure 4. FAO Digital Innovation Model

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This will unlock new market opportunities and deliver significant socio-economic benefits to transform livelihoods of the rural poor, with positive impact on poverty reduction, job creation, and food security� The programme will focus on rural households, youth and self-employed entrepreneurs, in particular female-headed households and businesses� Starting in Africa and Latin America, and combining a global and country specific approaches, the programme works to:

Scale up digital innovation that directly contributes to poverty reduction and job creation by innovating all current flagship and system solutions to ensure coverage, impact, sustainability and replicability of successful development initiatives� This process also involves strengthening national capacities and improvements of global, national and local policies to ensure their long-term sustainability and impact�

Promote local innovation and youth entrepreneurship, through partnerships aimed at strengthening local level capacity to innovate in the food and agriculture sector� This includes initiatives such as #HackAgainstHunger that provides young developers and entrepreneurs with promising solutions with expert mentorship from public and private sector experts�

Develop new digital services to empower rural smallholders, such as family farmers, fishers, pastoralists, and forest-dwellers with localized, real-time advisory services and increasing national government capacity to collect, process, and disseminate data and information�

Promote innovative multi-stakeholder partnerships to identify breakthrough solutions to joint global challenges leveraging diverse expertise, experience, and knowledge to strengthen country-level and global interventions� Frontier thinking and new technologies offer opportunities to disrupt traditional processes and to spark rapid digital transformation to achieve the SDGs� Investing in the exploration of cutting-edge technologies for use in low- an middle-income countries is a critical path to improving livelihoods of the rural poor�

FAO’s priorities> Provide support to countries in the development and implementation of their e-agriculture policies and strategies with a focus on equality of access, inclusiveness, rural women’s economic empowerment, and rural employment creation for youth.

> Support the establishment of broader digital innovation programme for rural areas, associated with targeted interventions to give equal access to the poorest.

> Develop open solutions to make its knowledge and databases available to all categories of users, in a format adapted to their needs and making best use of the wide range of existing ICTs.

> Support national and local administrations in establishing an ICT culture in rural regions, and in guaranteeing information and communication rights for all categories of rural populations.

> Provide capacity development programmes and activities using innovative methodologies to improve human skills and facilitate knowledge exchange and mutual learning among communities with similar needs to improve the use of digital services.

> Spread technology to the benefit of the youth across Africa, Asia and Latin America and boost investment by creating the enabling environment for innovation and entrepreneurship.

> Develop specific content and capacity development for women and increase their participation in the development of tools to ensuring equity in access to ICTs.

> Help national and local actors develop context-specific applications using traditional and new technologies that are adapted to the needs of poorer, more vulnerable households that are multilingual, multimodal, and integrate language interaction and visualization technologies, and that can be used where no continuous and high-speed Internet connection is available.

> Support innovation in the use of ICTs to build resilience and respond to emergencies affecting poor rural households and build capacity to prepare and respond to both natural and man-made disasters.

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More information

FAO Strategic Programme to Reduce Rural Poverty fao.org/reduce-rural-poverty SPL3@fao.org

FAO Information Technology Division Digital-Innovation@fao.org

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