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Disruptive Technologies

Electricity and the internet: two markets, one big opportunity

Anna Lerner's picture
The markets for rural energy access and internet connectivity are ripe for disruption – and increasingly, we’re seeing benefit from combining the offerings.
 
Traditionally, power and broadband industries have been dominated by large incumbent operators, often involving a state-owned enterprise. Today, new business models are emerging, breaking market barriers to jointly provide energy access and broadband connectivity to consumers.
 
As highlighted in the World Development Report 2016, access to internet has the potential to boost growth, expand economic opportunities, and improve service delivery. The digital economy is growing at 10% a year—significantly faster than the global economy as a whole. Growth in the digital economy is even higher in developing markets: 15 to 25% per year (Boston Consulting Group).
 
To make sure everyone benefits, coverage needs to be extended to the roughly four billion people that still lack access to the internet. In a testing phase, Facebook has experimented with flying drones and Google has released balloons to provide internet to remote populations.
 
But as cool as they might sound, these innovations do nothing for the one billion people who still live off the grid… and don’t have access to the electricity you need to use the internet in the first place! The findings of the Internet Inclusion Summit panel which the World Bank joined recently put this nicely: “without electricity, internet is only a black hole”.
 
That’s why efforts to expand electricity and broadband access should go hand in hand: close coordination between the energy and ICT sectors is probably one of the most efficient and sensible ways of making sure rural populations in low-income countries can reap the benefits of digital development. This thinking is also reflected in a new generation of disruptive telecom infrastructure projects.

Who shares in the European sharing economy?

Hernan Winkler's picture
Data on the sharing economy (Uber, Airbnb and so on) are scarce, but a recent study estimates that the revenue growth of these platforms has been dramatic. In the European Union (EU), the total revenue from the shared economy increased from around 1 billion euros in 2013 to 3.6 billion euros in 2015. While this estimate may equal just 0.2% of EU GDP, recent trends indicate a continued, rapid expansion.

This is important, as the sharing economy has the potential to bring efficiency gains and improve the welfare of many individuals in the region.

This can also generate important disruptions.

While online platforms represent a small fraction of overall incomes, the share of individuals participating in these platforms is large in many European countries. For example, roughly 1 in 3 people in France and Ireland have used a sharing economy platform, while at least 1 in 10 have in Central and Northern Europe (see figure below).

At the same time, the share of the population that has used these platforms to offer services and earn an income is also significant, reaching 10% or more in France, Latvia, and Croatia. This means that at least one out of every ten adults in these countries worked as a driver for a ride-sharing platform such as Uber, rented out a room of his or her house using a peer-to-peer rental platform such as Airbnb, or provided ICT services through an online freelancing platform such as Upwork, to name a few examples.

Campaign Art: Disruptive technologies and development goals

Darejani Markozashvili's picture
People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

Disruptive technologies are redefining the way of life. Everyone is buzzing about drones, driverless cars, autopilot planes, robots, and supply chains, starting from the entertainment industry, to agriculture and food sector, to private sector, to humanitarian and development fields. Drones delivering food, water, or health supplies, using off-grid power, innovative mobile apps, and other technological developments are all very exciting and unknown at the same time.

How will drones impact the supply chains and service delivery in the future? What are the opportunities and risks associated with utilizing drones to deliver supplies? What is the role of technology in helping us reach Sustainable Development Goals? I can’t pretend I have answers to any of these questions, nor do I dare predict what our future may look like in 10,20,30 years. However, it sure is interesting to look at the recent technological developments and try to understand what their role may be in the future.  

That’s where the unlikely and innovative story of Zipline International Inc. and the Government of Rwanda comes in. Last fall the Government of Rwanda partnered with the California-based robotics company Zipline International Inc. and became the first country in the world to incorporate drone technology into its health care system by delivering blood and medical supplies to 21 hospitals across Rwanda’s Southern and Western provinces.
 
Delivering blood

Source: Zipline

Media (R)evolutions: Digital companies don't need to 'own' anything when they can share

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Traditionally, those with the largest empire or who controlled the most resources were considered to be the most powerful and successful. However, recent developments in digital technology have spawned a new breed of enterprise that dominates their respective industries without actually “owning” tangible assets.

The world's largest accommodation provider, Airbnb, doesn't own real estate. Alibaba, the world's leading e-commerce company, doesn't have any inventory. Facebook, the most popular media owner worldwide, doesn't create its own content. And Uber, the largest taxi company in the world, does not own any vehicles.

Nowhere is the sharing economy more disruptive than in rental/leasing services. This graphic, from PricewaterhouseCoopers in the UK, illustrates the expected growth of various rental sectors within the sharing economy.  These sectors are likely to grow much quicker than traditional rental sectors, and "the least developed sectors today, such as P2P finance and online staffing, could grow the quickest of all."

PWC Sharing Economy graphic

Makers and education, part one: how are disruptive technologies affecting the way we educate?

Saori Imaizumi's picture
Girls learning how to design and make a toy with a laser cutter, which increases
interest in STEM career options. Photo: Saori Imaizumi/World Bank Group

Affordable, accessible technologies can democratize opportunities for EVERYONE to become innovators and inventors. Countries can take advantage of this opportunity to create new jobs, new industry and skilled workers to achieve further economic growth and increase competitiveness. Also, preparing citizens with problem solving skills and entrepreneurial mindsets helps solve various social problems in the country in an innovative manner.
 
In a 2013 report entitled “Disruptive Technologies: Advances that will transform life, business, and the global economy,” the McKinsey Global Institute identified 12 potentially economically disruptive technologies, including mobile internet, automation of knowledge work, the Internet of Things, advanced robotics, 3D printing, and advanced materials.
 
Team-based learning through
technologies. Photo: Saori
​Imaizumi/World Bank Group

​I touched upon how these disruptive technologies and low-cost technologies affect the pedagogy of skills development and education, as well as their implications for international development in my previous blogs (New Technologies for Children Learning STEM/STEAM Subjects and the 21st Century Skills and What’s the implication of 3D printers for the World Bank’s mission?) and a feature story (Communities of "Makers" Tackle Local Problems).
 
Elaborating on these posts, I will explore the topic on “how can kids, youth and adults prepare in response to rapid technological changes” from the pedagogy and institutional model perspectives. My analysis is derived from the lively discussion that I recently attended on “Exploring 3D Printing for Development,” organized by IREX and my work at the World Bank.

Quote of the Week: Andre Geim

Sina Odugbemi's picture

“We are in the midst of a technology crisis. Disruptive technologies now appear less frequently than steady economic growth requires. Even bankers complain about a dearth of new technologies in which to invest.”

Andre Geim, 2010 Nobel Prize Winner for Physics and Research Professor at the School of Physics & Astronomy, University of Manchester

A quote from the article, Be afraid, be very afraid, of the world’s tech crisis, Financial Times, February 6, 2013