Digital Bihar, Inclusive Growth

Image generated using AI

Bihar has a rich historical and cultural heritage and is one of the most populous states in India, with a population exceeding 13 crores[i] and a predominantly rural population. The state faces several challenges in digital literacy, access to technology, digital inclusion, economic development, and equitable growth. However, recent initiatives in e-governance, education, and entrepreneurship hold much promise and potential for contributing towards India’s vision of a digitally empowered society.

Digital literacy remains a significant challenge, with rates below 30% (national average 38% for household digital literacy[ii]), as reported by Ideas for India[iii]. Bihar’s low digital literacy follows its socio-economic conditions, including high poverty rates[iv] (33.76% below the poverty line and 51.91% multidimensional poverty as of 2021) and limited access to digital devices. Rural areas, which hold 75% of the state’s population face challenges due to inadequate infrastructure and low literacy levels. The state’s overall literacy rate, as per 2017 data, stands at 70.9%[v], with rural areas at 69.5% and urban areas at 83.1%. Female literacy, at 60.5%, is significantly lower than male literacy at 79.7%, further complicating efforts to bridge the digital divide.

The digital divide in Bihar is a significant barrier to inclusive development. According to the India Inequality Report 2022 by Oxfam India[vi], Bihar has the lowest internet penetration among Indian states and a wide urban-rural digital divide, with only 31% of rural residents using the internet compared to 67% in urban areas. This rural-urban divide is further worsened by socio-economic disparities.

The digital divide affects important sectors like education, healthcare, and finance. For example, in 2017-18 only 9% of students enrolled had access to a computer with internet for education[vii]. Initiatives like BharatNet, aimed at providing rural connectivity, have been unable to deliver effective outcomes. Bihar is one of the focus states for the Digital India Programme, but execution lags due to infrastructural challenges.

In recent years, Bihar has made significant strides in leveraging digital services in improving governance and public service delivery. The National Informatics Center (NIC) Bihar State Centre, established in 1988, plays a central role in this transformation (https://bihar.nic.in/). It supports departments such as revenue, district administration, rural development, finance, agriculture, employment, election, social welfare, and food and civil supplies with IT solutions. The ServicePlus portal is a key platform, offering services like certificate issuance and case status checks, though rural access remains a hurdle, particularly for marginalized communities, requiring better infrastructure and awareness. These barriers require continued investment in training and infrastructure to ensure widespread digital literacy. Common Service Centres (CSCs) and Vasudha Kendra are crucial for providing government and private services to rural and remote areas in Bihar, enhancing digital inclusion and accessibility. However, they are not enough to cater to the growing needs of the rural population. People travel to block towns and larger villages, to access even basic G2C services, indicating the lack of any nearby facility.

For bridging the digital divide, a digital entrepreneurship program in 500 villages from five districts, viz., Darbhanga, Samastipur, Patna, Nalanda, and Gaya was launched in 2023. Bihar is witnessing a transformative wave of service accessibility led by women digital entrepreneurs. These trailblazing women are not only redefining the entrepreneurial landscape but also catalyzing inclusive development across the state. This initiative provides capacity building and mentoring in digital skills, customer service, entrepreneurship development, financial support and resources, and digital tools to women from socially and economically disadvantaged communities, helping them become successful rural digital entrepreneurs and build a Digital Entrepreneurship Ecosystem. This holistic approach equips them to offer essential digital services in their communities, such as facilitating access to government schemes, online education, and digital financial services. From being computer illiterate to providing a host of over 70+ digital services, these digital entrepreneurs have come a long way only within 9 months of their venture-start in their villages. Some of their services include a large suite of G2C services, design & printing services, online form filling, Banking services, and Mobile payments, among several others. They have also been cross-selling and diversified in selling non-digital products. In this short period, they have already served over 250,000 rural customers (around 40% female customers), and is expected that as their businesses mature, they will be providing digital services to over 7.5 lakh population. Apart from making digital services easily accessible at the village level, they are generating income and securing their futures, with some of them steadily earning upwards of INR25,000 monthly. This program is not only bridging the digital divide but also promoting economic security and social equity, local inclusive economic development, gender equality, awareness, and opening opportunities for skills development.

While government efforts are underway, a coordinated approach involving public-private partnerships, local community engagement, and targeted digital inclusion programs is essential. Programs like these need to be scaled up across the state covering the entire 8,387 Gram Panchayats for bridging the digital divide and contributing significantly to Bihar’s and India’s digital economy.


Data is Divine

In God we trust. All others must bring data.” This quote, made by W. Edwards Deming holds true (and may even supersede God for some as Divine).

I have been in love with data right from my school years and the mysteries of the world it holds. I have tried to develop data driven models on human relationships, the movement of animals, finding patterns in the ways of the world, and later designing programs of social impact for challenging poverty, and policy development. In the end, we all are data, from the moment we are an idea until long after we pass away.

“Data is divine” highlights the growing understanding of data’s vital significance in modern society, in much the same way that religious or spiritual values have directed civilizations throughout history. In today’s digital age, data powers innovation, decision-making, and advancement in all fields, including governance, research, business, healthcare, and lifestyle.

1. Data as a source of truth: Data is frequently regarded as an impartial depiction of reality, providing information on trends and occurrences that may be imperceptible to anecdotal experience or intuition. In this way, data has a unique position as the basis for making well-informed decisions and uncovering hidden facts.

2. The power of data in innovation: Data is driving advancements in domains like healthcare, finance, and climate science and is revolutionizing industries as it powers AI/ML and sophisticated analytics. This emphasizes how data has the “divine” ability to spark significant change. The use of data for enhancing human welfare, from preventing pandemics through data-driven epidemiology to lowering inequality by studying societal trends has been in use. When applied sensibly and morally, it can aid in resolving some of the most pressing issues facing society.

3. Data as omnipresent: From the apps we use daily to the systems that manage our cities, data is present everywhere in the modern world. Its pervasiveness is comparable to a certain “divine” quality in that it affects almost every facet of contemporary life, whether we are conscious of it or not.

4. Data and ethics: Data carries a great deal of responsibility along with its power. Similar to supernatural knowledge, there are significant ethical ramifications to the way we collect, use, and safeguard data. Data misuse can result in inequality, manipulation, and privacy violations. As a result, it is crucial to handle data with dignity, openness, and ethics.

“Data is divine” also implies that we must treat it with deference and accountability while simultaneously appreciating its immense importance in shaping our future. We need to balance the power of data with ethical considerations as our world grows more and more data driven. The following are some crucial strategies to preserve this equilibrium,

1. Data privacy and informed consent: People ought to be in charge of how their information is gathered, kept, and utilized. It is not appropriate to force them to divulge information. Companies must be open and honest about their data practices so that users know what information is being gathered and why. Clear and informed consent should not be buried in complicated terms and conditions. Data literacy is essential among general population so that they are aware of the consequences of disclosing personal information, and the dangers of data misuse.

2. Data minimization: Only gather information that is absolutely required for the current job. This reduces the possibility of abuse and shields people from needless exposure. I’ve seen in recent years how social development initiatives gather and store vast amounts of data, with donors coercing their nonprofit partners to obtain it, yet this doesn’t address any societal issues. It is crucial to have a conscious grasp of what is needed.

3. Data bias and fairness: AI/ML systems may reinforce or increase biases found in the training data. Therefore, diversifying datasets, employing inclusive development techniques, and reviewing algorithms for bias are all necessary to ensure fairness.

4. Equitable data access: One way to lessen inequality is to make sure that data access and its advantages are shared equitably among all communities. This entails preventing the reinforcement of systemic disadvantages while ensuring that marginalized groups have access to data-driven insights.

5. Data governance and accountability: To ensure that data is utilized properly, organizations and governments must establish robust data governance policies and ethical frameworks. To stay up with the latest developments in technology, these policies must be revised regularly. It is imperative to establish unambiguous lines of accountability for the handling and utilization of data. Data practices can be kept moral and in line with social standards with the support of independent oversight organizations or ethics boards.

6. Regulation and legal safeguards: Strong data protection laws that impose restrictions on how businesses and organizations can gather, keep, and handle personal data must be enforced by governments. Laws that address issues like accountability for algorithmic judgments, eliminating discrimination, and safeguarding human rights in AI-driven systems are crucial for the ethical application of automation and artificial intelligence. Because technology is changing so quickly, regulatory models must be adaptable and flexible to support innovation and enable quick responses to emerging ethical dilemmas.

7. Data for social good: Data can and should also be used positive social impact including lowering inequality and poverty, combating climate change, and improving public health. Governments, corporations, and civil society organizations working together can help guarantee that data is used morally and for the good of society. These collaborations may result in common frameworks for the ethical use of data.

A multifaceted strategy including legislation, transparency, public education, and proactive governance is needed to strike a balance between the power of data and ethical issues. Prioritizing the defence of individual rights, maintaining equity, and advancing the common good while fostering innovation should be the main goals of ethical data use. Through cultivating a culture of accountability and responsibility, we can leverage data’s promise (and divinity) without sacrificing moral principles.

Disclaimer: The opinions expressed are those of the author and do not purport to reflect the views or opinions of any organization, foundation, CSR, non-profit or others

Cover Photo: This is an AI generated image.

Navigating the Road to Sustainability for Nonprofits in India

Source: Idea taken from Foraker group model

Sustainability has become a buzzword across industries, and for nonprofits in India, it’s more than just a trend—it’s a necessity! Sustainability in the nonprofit sector is a critical issue that encompasses not only environmental stewardship but also financial stability, organizational resilience, and long-term impact. Nonprofits, by their nature, are dedicated to addressing social, economic, and environmental challenges, often with limited resources and high expectations. With India’s rapid economic shifts and evolving social landscape, understanding and overcoming these hurdles is essential for nonprofits striving to make a lasting difference.

Key Challenges Facing Nonprofits in India

1. Funding Instability:  One of the most significant challenges facing nonprofits is financial instability. Nonprofits rely heavily on donor contributions, government grants, and CSR grants, which can be unpredictable and subject to economic fluctuations. Furthermore, many donors prefer to fund specific projects rather than general operations, leaving nonprofits vulnerable to financial shortfalls. The global economy, changing donor priorities, and a lack of diversified income streams often impact an organization’s ability to plan and execute long-term projects. This gets further compounded by competition among nonprofits for limited resources.

Nonprofits must constantly innovate and demonstrate their impact to attract and retain donors. This requires significant investment in fundraising and partnership strategies, donor relations, and marketing, which are resource-intensive and divert attention from core mission activities, often resulting in chicken-egg situations.

2. Administrative and Operational Inefficiencies:  Many nonprofits in India struggle with limited administrative resources and inefficient operational practices. Limited resources lead to outdated technologies, inefficient processes, and a lack of professional expertise. Inefficiencies in management, compliance, accounting, and reporting undermine the effectiveness of programs and reduce transparency, negatively impacting stakeholders and donors’ trust. This is more challenging for smaller organizations with limited administrative capacity.

3. Regulatory and Compliance Maze: Managing the complex regulatory landscape in India is challenging for nonprofits. Compliance with legal requirements, such as the Foreign Contribution Regulation Act (FCRA) and the Goods and Services Tax (GST), requires careful attention to detail and significant administrative effort. Changes in regulations and stringent reporting requirements add to the administrative burden. Staying compliant while adapting to new regulations can strain organizational resources and divert attention from mission-critical activities.

4. Capacity Building and Skill Gaps: The nonprofit sector often faces challenges related to human resources. There is a growing need for skilled professionals who can handle strategic planning, fundraising, and program management, leading to organizational sustainability. The sector often faces challenges in attracting and retaining skilled professionals due to budget constraints and lower salaries compared to the private sector.

Capacity building requires investing in learning and development for employees. However, many organizations lack the resources to provide comprehensive training programs or to hire experienced professionals. This often limits their ability to effectively manage programs, drive strategic initiatives, and ensure organizational growth.

5. Measuring Impact: Measuring and presenting evidence-backed impact is essential for donor confidence and organizational effectiveness. Nonprofits need to develop robust monitoring and evaluation frameworks to assess the outcomes and effectiveness of their programs. However, many organizations struggle with setting up these systems due to limited resources and expertise.

 Strategies for Enhancing Sustainability

1. Diversifying Funding Sources: To address funding instability, nonprofits need to explore multiple revenue streams. This includes engaging in social entrepreneurship and blended finance opportunities, establishing partnerships with businesses, leveraging online crowdfunding platforms, and digital fundraising. Creating a diversified funding base helps in reducing dependency on a single source and enhances financial stability.

2. Leveraging and Embracing Technology: Technology offers significant opportunities for enhancing operational efficiency and reach. Digital tools can streamline administrative processes, improve data management, and facilitate better communication with stakeholders through online platforms and social media. Adopting technology also opens avenues for online fundraising and virtual program delivery such as webinars, workshops, and training.

3. Building Stronger Partnerships: Collaboration with other nonprofits, governmental agencies, and private sector organizations can amplify the impact of initiatives and improve sustainability. Strategic partnerships can provide access to additional resources, expertise, and networks. Strategic alliances can also lead to cost savings through shared services and joint initiatives. By working together, organizations can leverage each other’s strengths, reduce duplication of efforts, and achieve greater impact.

4. Investing in Human Capital: Prioritizing the development of human resources is crucial for organizational growth and sustainability. Nonprofits should invest in training and capacity-building programs for their staff and volunteers through training programs, workshops, and professional development opportunities. Creating a culture of continuous learning and career advancement opportunities can enhance program delivery, improve management practices, organizational resilience, and employee retention. Leadership development is particularly important for long-term sustainability. Cultivating strong leaders within the organization can drive strategic planning, innovation, and effective decision-making.

5. Enhancing Transparency and Accountability: Building trust with stakeholders through transparency and accountability is essential for long-term success. Nonprofits should adopt the best practices in financial management, regularly publish impact reports, and engage in open communication with donors and stakeholders. Transparency not only attracts more funding but also strengthens community support. Implementing robust internal controls and conducting regular audits can help maintain financial integrity and accountability. Additionally, engaging stakeholders in decision-making processes and soliciting feedback can enhance organizational credibility and responsiveness.

6. Adopting Sustainable Practices: Integrating sustainability into program design and organizational operations can drive long-term impact. Nonprofits should consider the environmental impact of their activities and seek to minimize their footprint. This might involve adopting green practices, such as reducing waste, conserving energy, and promoting eco-friendly initiatives. Sustainable practices also include ensuring the long-term viability of programs. This involves designing initiatives that can be sustained over time, building local capacity, and fostering community ownership. By promoting sustainability within programs, nonprofits can create a transformative impact.

The road to nonprofit sustainability is full of challenges, but with innovation, partnership, and a commitment to continuous improvement, nonprofits can navigate these challenges and continue to make a meaningful impact on society.  As the sector is continuously evolving, embracing sustainability will be key to ensuring that nonprofits can adapt to changing circumstances continue to remain steadfast in their mission, and drive positive social change for years to come.

Disclaimer: The opinions expressed are those of the author and do not purport to reflect the views or opinions of any organization, foundation, CSR, non-profit or others