BIG DATA’S BIG POTENTIAL IN DEVELOPING ECONOMIES Impact on Agriculture, Health and Environmental Security This page intentionally left blank BIG DATA’S BIG POTENTIAL IN DEVELOPING ECONOMIES Impact on Agriculture, Health and Environmental Security Nir Kshetri The University of North Carolina at Greensboro, Greensboro, USA CABI is a trading name of CAB International CABI Nosworthy Way Wallingford Oxfordshire OX10 8DE UK Tel: +44 (0)1491 832111 Fax: +44 (0)1491 833508 E-mail: info@cabi.org Website: www.cabi.org CABI 745 Atlantic Avenue 8th Floor Boston, MA 02111 USA T: +1 617 682 9015 E-mail: cabi-nao@cabi.org © N Kshetri 2016 All rights reserved No part of this publication may be reproduced in any form or by any means, electronically, mechanically, by photocopying, recording or otherwise, without the prior permission of the copyright owners A catalogue record for this book is available from the British Library, London, UK Library of Congress Cataloging-in-Publication Data Names: Kshetri, Nir, author Title: Big data's big potential in developing economies : impact on agriculture, health and environmental security / Nir Kshetri Description: Boston, MA : CABI, [2016] | Includes bibliographical references and index Identifiers: LCCN 2016022766| ISBN 9781780648682 (hbk : alk paper) | ISBN 9781780648705 (epub) Subjects: LCSH: Big data Developing countries | Agriculture and state Developing countries | Medical policy Developing countries | Environmental policy Developing countries Classification: LCC QA76.9.B45 K74 2016 | DDC 005.7094 dc23 LC record available at https://lccn.loc.gov/2016022766 ISBN-13: 978 78064 868 Commissioning editor: David Hemming Editorial assistant: Emma McCann Production editor: Tim Kapp Typeset by AMA DataSet Ltd, Preston, UK Printed and bound in the UK by CPI Group (UK) Ltd, Croydon, CR0 4YY Contents Abbreviations About the author Preface and Acknowledgements xi xiv xv Big Data in Developing Countries: Current Status, Opportunities and Challenges 1.1 Introduction 1.2 Definitions and Explanations of Key Terms 1.2.1 Algorithm 1.2.2 Big Data 1.2.3 Business model 1.2.4 Cloud computing 1.2.5 Developing economies 1.2.6 Drip irrigation 1.2.7 Environmental monitoring 1.2.8 Institutionalization 1.2.9 Least developed countries (LDCs) 1.2.10 The Internet of Things 1.2.11 Machine-to-machine connections 1.2.12 Precision agriculture 1.2.13 Radio-frequency identification 1.2.14 Sensor 1.3 Characteristics of Big Data 1.3.1 Volume 1.3.2 Velocity 10 1.3.3 Variety 11 1.3.4 Variability 12 1.3.5 Complexity 12 v vi Contents 1.4 Key Areas of Big Data Deployment in Developing Countries 13 1.4.1 E-commerce 13 1.4.2 Oil and gas 14 1.4.3 Banking, finance and insurance 14 1.4.4 Improving disaster mitigation and preparedness 14 1.4.5 Enhancing transparency and reducing corruption 15 1.5 The Relationship between Big Data, Mobility, the Internet of Things and Cloud Computing in the Context of Developing Countries 17 1.6 Determinants of the Development of the Big Data Industry and Market 17 1.6.1 Social and political dimensions 18 1.6.2 Economic dimension 19 1.7 Some Forces to Overcome the Adverse Economic, Political and Cultural Circumstances 20 1.7.1 Multinationals launching Big Data applications in developing countries 20 1.7.2 The roles of international development agencies 21 1.8 Agriculture, Health and Environment: Intricate Relationship 22 1.9 Discussion and Concluding Comments 22 Big Data Ecosystem in Developing Countries 2.1 Introduction 2.2 Context Dependence in Big Data Models 2.3 Barriers, Challenges and Obstacles in Using Big Data 2.3.1 Low degree of digitization 2.3.2 Costs associated with participating in the digital economy 2.3.3 Data usability 2.3.4 Poor data quality 2.3.5 Low degree of value chain integration and disconnection between data users and producers 2.3.6 Interoperability and standardization issues 2.3.7 Big Data skills deficit 2.3.8 Values and cultures 2.4 Some Encouraging and Favourable Signs 2.5 Big Data-Related Entrepreneurship and Some Notable Big Data Companies Operating in the Developing World 2.5.1 Alibaba 2.5.2 Mediatrac 2.5.3 Nedbank 2.6 The Internet of Things as a Key Component of Big Data 2.6.1 Health care 2.6.2 Environmental security and resource conservation 2.6.3 Agriculture 2.7 Creating a Virtuous Circle of Effective Big Data Deployment 2.7.1 Existing actors in the Big Data ecosystem 2.7.2 Entry of new actors in the Big Data ecosystem 2.8 Discussion and Concluding Comments 30 30 32 32 33 35 37 37 38 39 40 41 42 43 43 44 45 45 46 46 47 47 48 51 52 Contents vii Big Data in Environmental Protection and Resources Conservation 62 3.1 Introduction 62 3.2 Various Data Sources in the Context of Environmental Monitoring and Protection 65 3.2.1 The Internet of Things 65 3.2.2 Social networking websites 66 3.2.3 Remote sensing technologies 67 3.3 Characteristics of Big Data in the Context of Environmental Monitoring and Protection 67 3.3.1 Volume 68 3.3.2 Velocity 68 3.3.3 Variety 68 3.3.4 Variability 69 3.3.5 Complexity 69 3.4 Foreign and Local Big Data Technologies in Environmental Monitoring and Protection 70 3.4.1 Role of foreign multinational corporations 70 3.4.2 Big Data applications created in developing countries 71 3.5 The Roles of Philanthropic and International Development Organizations 71 3.6 Big Data and Transparency: Fighting Environmental Crimes and Injustices 73 3.6.1 The 2015 Indonesian fires 73 3.6.2 Deforestation of rainforests in the Peruvian Amazon 74 3.7 Discussion and Concluding Comments 75 Big Data in Health-Care Delivery and Outcomes 4.1 Introduction 4.2 Big Data Deployment in Delivering Health-Care Services in Developing Countries: Some Examples 4.3 Foreign as well as Locally Developed Big Data-Based Health-Care Solutions 4.3.1 Solutions developed in industrialized countries 4.3.2 Locally developed solutions 4.4 The Role of Big Data in Expanding Access to Health-Care Services 4.4.1 Geographic accessibility 4.4.2 Availability 4.4.3 Financial accessibility 4.4.4 Acceptability 4.5 Big Data-Based Solutions to Fight Fake Drugs 4.5.1 The prevalence of fake drugs and some Big Data-based solutions to fight the problem 4.5.2 Expansion to new market segments 4.5.3 Some challenges faced 4.6 The Role of Big Data in Promoting Transparency and Accountability in the Health-Care Sector 83 83 85 87 87 87 87 88 88 91 92 92 92 94 94 95 viii Contents 4.7 The Internet of Things and Health Care 4.8 Discussion and Concluding Comments 96 97 Big Data in Agriculture 101 5.1 Introduction 101 5.2 Various Data Sources and Technological Trends 103 5.2.1 The Internet of Things and agriculture 103 5.2.2 Drip irrigation systems 104 5.2.3 Soil infrared spectroscopy 104 5.2.4 Data and information created via agriculture and farming platforms 105 5.3 The Origin of Big Data-Related Innovations in the Agricultural Sector 107 5.3.1 Big Data technologies developed in industrialized countries 107 5.3.2 Undertaking Big Data-related innovations locally 108 5.4 The Appropriateness and Impacts of Big Data Tools on Smallholder Farmers in Developing Economies 109 5.4.1 Access to inputs and resources 111 5.4.2 Access to insurance and other risk-spreading mechanisms 111 5.4.3 Impacts on farming process and productivity 113 5.4.4 Increase in small-scale farmer’s access to market, marketability of products and bargaining power 113 5.4.5 Improving efficiency of the downstream activities in the supply chain 114 5.4.6 Improving crop quality 115 5.5 Some Challenges and Obstacles 115 5.6 Adapting to Various Types of Pressures 117 5.7 Agricultural Big Data Projects with Diverse Impacts: A Comparison of TH Milk and Agrilife 118 5.7.1 The TH Milk facility 118 5.7.2 The Agrilife platform: expanding access to credits for African farmers 120 5.7.3 A comparison of Agrilife platform and TH Milk facility 121 5.8 Relevance of Big Data Dimensions 123 5.9 Discussion and Concluding Comments 124 Big Data’s Roles in Increasing Smallholder Farmers’ Access to Finance 132 6.1 Introduction 132 6.2 Diverse Models and Multiple Approaches to Assess Creditworthiness 134 6.3 Big Data Companies Operating in the Developing World 135 6.2.1 Cignifi 135 6.2.2 Kreditech 135 6.2.3 Lenddo 136 6.2.4 Alibaba 136 Contents ix 6.3 6.4 6.5 6.6 6.2.5 Tencent 138 6.2.6 Kueski (Mexico) 138 6.2.7 JD.com (Jingdong Mall) 139 The Role of Big Data in Facilitating Access to Finance for Smallholder Farmers 139 6.3.1 Utilizing different categories of financial and non-financial information 140 6.3.2 The role of BD in reducing information opacity and transaction costs 142 Enabling and Incentivizing Smallholder Farmers to Participate in the Market 143 Risks and Challenges 145 Discussion and Concluding Comments 146 Data Privacy and Security Issues Facing Smallholder Farmers and Poor Communities in Developing Countries 7.1 Introduction 7.2 Privacy, Data Protection and Security Issues Associated with Big Data in Developing Countries 7.2.1 Agriculture 7.2.2 Health care 7.3 Variation in Institutionalization of Cybersecurity and Privacy Issues Across Developing Countries and Groups of People 7.3.1 Variation in consumers’ orientation to data security and privacy 7.4 Institutionalization of Data Privacy and Security Issues in Developing Countries 7.4.1 National level 7.4.2 Industry standards 7.4.3 Trade associations 7.4.4 Professional associations 7.4.5 Inter-organizational networks 7.4.6 Company-specific guidelines 7.4.7 Individual farmers 7.5 Discussion and Concluding Comments Lessons Learned, Implications and the Way Forward 8.1 Introduction 8.2 The Appropriateness of Big Data in the Developing World 8.2.1 Relative advantage 8.2.2 Compatibility 8.2.3 Complexity 8.2.4 Observability 8.2.5 Trialability 8.3 The Meaning and Significance of Big Data in the Context of Developing Countries 8.4 Big Data and Transparency 152 152 153 155 156 157 157 158 158 159 160 160 160 161 162 163 169 169 171 171 171 172 173 173 173 174 ... DATA’S BIG POTENTIAL IN DEVELOPING ECONOMIES Impact on Agriculture, Health and Environmental Security This page intentionally left blank BIG DATA’S BIG POTENTIAL IN DEVELOPING ECONOMIES Impact on... (epub) Subjects: LCSH: Big data Developing countries | Agriculture and state Developing countries | Medical policy Developing countries | Environmental policy Developing countries Classification:... sector to improve economic, health, social and environmental conditions in developing economies Consequently, the BD application areas in developing economies are also numerous and growing steadily