We accelerate our knowledge about complex problems hampering development with a specific source of evidence: grassroots innovations -solutions that are already in place and people unfold in their daily life- from low-income neighborhoods, like this one we scaled in two local governments. It has been mapped in many places throughout Argentina and appears to be a cost-effective approach to the digital gap; recognised by UNDP as a bottom-up smart solution.

It is innovative because it takes advantage of the positive effect of peers and acquaintances at a local level to encourage people to do more things online. Many lack the necessary devices, but others simply do not dare to do it themselves; thus, we rely on social capital networks at the local level to promote digital inclusion. This solution has a threefold impact: beyond enabling digital inclusion, it also boosts sales for local stores and saves neighbors’ time and money by allowing them to do their errands closer to their houses.

As of this date of submission in 2022, this project has been implemented twice: the first one in 2021, and we have just launched the second edition, which is expected to be escalated until July 2023, and afterward, it will be evaluated. With this information, we will aim to help other local governments and other partners use these lessons.

Sabrina, owns a store of school supplies in a community market in a low income neighborhood, she helps her neighbors with their online errands. She inspired us and, in 2021, we partnered with the Municipality of Concepción del Uruguay to scale a pilot creating a network of nearby stores that support digitalization. In 2022, along with the Undersecretariat Administrative Innovation (National Cabinet of Ministers) we got a 60,000 USD fund to scale this action in Fray Mamerto Esquiú, Catamarca.

• Officers of the administrative innovation office of the federal government learned about a project that broadens the reach of the state, while addressing uneven access to the Internet.
• Local bureaucrats benefit because more neighbors fulfill public procedures online, avoiding crowded offices.
• Citizens save money and time by doing paperwork near their homes.
• Small business owners are encouraged to have pcs and internet access, they play a new role in their communities, and get more sales.

We used OLS regressions, descriptive statistics, continuous assessment via surveys to evaluate the three groups of the pilot program.

The Network customers’ profile was people with high school diploma (54.2%), female (58.8%), 25-54 years old (65.7%). Most lacked means or knowledge to carry out these procedures online by themselves.

Clients travelled a total of 293.7 km less and saved up to 637 hours. The closer a Network store wasto their home, the greater the savings.
Online procedures increased significantly, as well as the demand of goods and services sold by the store owners.

From our current implementation in northern Argentina, we hope to have escalated to 25-40 nearby stores by December, with owners fully trained and ready to deploy the program. By July 2023, we expect to have reported better performance: increased ownership by the stakeholders; differential outcomes in terms of gender, socioeconomic status, and age; and a series of public policy recommendations.

The main challenge has been the incentives for store owners to help us track the performance of the action. We We tried to foster this variable within demand (coupons and discounts) and supply (some stores got printers); and we unfold strategies to cope with them not completing the surveys, such as signing a written agreement to do so, a weekly follow-up done by the promoters and a paper form that each client could complete with personal data.

Despite these efforts, the difference in the number of procedures carried out by each experimental group made it impossible for us to compare them so we could assess the magnitude of the method used and determine whether the stimuli provided attracted a greater number of customers.

In this new edition, we have devised a different strategy. We are going to give store owners cash for data. This means they will get an additional amount of money for each form they fill after each neighbor uses their digital services.

The first condition is the full collaboration of the local government where the action is implemented. Human resources, that means both technicians and local professionals, and their expertise, is a key factor that mainly depends on the funding. Our Co_Lab’s focal point has dedicated many hours daily for the success of the project.

Store owners who take part in the project are mainly motivated by personal values for helping others, but they also need engagement factors.

Moreover, having an identity and a narrative is also crucial. Although stores are eligible if they already have a computer and Internet access, an unexpected result was that some shops felt encouraged to get both to be part of the Network, meaning that this action also promoted the digital inclusion of the store owners as well.

The project has already been replicated in different districts. There are handbooks and tutorials already available. Its implementation has a very low cost. Since it implements a solution already found at neighborhood level, it is highly likely to be adopted by the local population. It is also very sustainable since it relies on the existing infrastructure of local stores. It is aligned with clearly stated hypotheses and methodology, and it opens strong collaboration opportunities and high potential for scaling. The project has no risk.

The insights we found shed light on the fact that there is a need for policies that promote decentralization of procedures and errands both from public and private services. This would result in higher levels of autonomy for those who cannot perform these tasks on their own in person. Based on differentiated outcomes in terms of age, gender, and socio-economic levels, we now know that it is necessary to adapt the strategies to foster digitalization for each specific group.

Another important learning is that policymaking can begin upon an existent innovation. This solution is already used in a very uneven and non-systematic fashion and has a lot of potential. It is cost-effective: it requires a low investment to start with, it is sustainable because it does not require a long-term follow up, and, due to its familiarity, neighbors may be more likely to adopt and use them.