Syndicate content

e-commerce

E-commerce is booming. What’s in it for urban transport?

Bianca Bianchi Alves's picture
Também disponível em: Português
 

Worldwide, e-commerce has experienced explosive growth over the past decade, including in developing countries. The 2015 Global Retail E-Commerce Index ranks several of the World Bank’s client countries among the 30 most important markets for e-commerce (China ranks 2nd, Mexico 17th, Chile 19th, Brazil 21st, and Argentina 29th). As shown in a 2017 report from Ipsos, China, India, and Indonesia are among the 10 countries with the highest frequency of online shopping in the world, among online shoppers. Although growth in e-commerce in these countries is sometimes hindered by structural deficiencies, such as limitations of banking systems, digital payment systems, secure IT networks, or transport infrastructure, the upcoming technological advances in mobile phones and payment and location systems will trigger another wave of growth. This growth will likely lead to more deliveries and an increase in freight volume in urban areas.

In this context, the Bank has been working with the cities of Sao Paulo and Bangalore to develop a new tool that helps evaluate how different transport policies and interventions can impact e-commerce logistics in urban areas (GiULia). Financed by the Multidonor Sustainable Logistics Trust Fund, the tool serves as a platform to promote discussion with our counterparts on a subject that is often neglected by city planners: urban logistics. Decision-making on policies and regulations for urban logistics has traditionally been undertaken without sufficient consideration for economic and environmental impacts. For instance, restrictions on the size and use of trucks in cities can cause a number of side effects, including the suburbanization of cargo, with warehouses and trucks located on the periphery of cities, far from consumers, or the fragmentation of services between multiple carriers, which may lead to more miles traveled, idle truck loads, and inefficiencies.

Media (R)evolutions: What’s the potential of mobile payments?

Darejani Markozashvili'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. 

There is a lot of discussion right now about mobile payments and its potential in rural and urban communities. Who uses these services and how will this impact various key markets?

According to the latest Mobile Payments report by the GlobalWebIndex, the next wave of growth in mobile payments will be in rural areas. Defined as the financial transactions performed via mobile devices, mobile payments may offer solutions to traditional methods of delivering financial services. Currently 7 in 10 mobile payment users live in urban environments.
 

Globally, there are about 2 billion adults without access to a basic bank account. Although this is a 20 percent decrease from 2.5 billion adults in 2011, it’s still a high number. Regardless of barriers of opening a bank account (lack of enough money, distance to the nearest financial service provider, lack of proper documentation papers, etc..), one thing is clear: traditional financial services are not meeting the needs of the low income users. Will mobile payments fill this gap?

Media (R)evolutions: How users purchase goods online differs by country

Darejani Markozashvili'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.

The 2017 CIGI-Ipsos Global Survey on Internet Security and Trust conducted by Ipsos (global research company), on behalf of the Centre for International Governance Innovation (CIGI), the United Nations Conference on Trade and Development (UNCTAD) and the Internet Society reveals interesting findings on Internet security, user trust, and e-commerce behaviors.

The survey found stark differences between countries in terms of how users purchase goods online. While in China, India and Indonesia more than 86% of respondents expect to make mobile payments on their smartphone in the next year, only 30% in France, Germany and Japan expected to do so. The chart below shows the percentage of respondents likely to use mobile payments on their smartphone in the next year.
 

Source: Ipsos

Most G-8 countries mark near the bottom of this list, while emerging economies are near the top, with Indonesia leading at 55%. 

The survey also found that among those surveyed 49% said that lack of trust is the main reason they don’t shop online, suggesting that Internet users are increasingly concerned about their online privacy.

Sustainable mobility: can the world speak with one voice?

Nancy Vandycke's picture

 
The transport sector is changing at breakneck speed.
 
By 2030, global passenger traffic is set to rise by 50%, and freight volume by 70%. By 2050, we will have twice as many vehicles on the road, with most of the increase coming from emerging markets, where steady economic expansion is creating new lifestyle expectations and mobility aspirations. Mega-projects like China’s One Belt, One Road could connect more than half of the world’s population, and roughly a quarter of the goods that move around the globe by land and sea.
 
These transformations create a unique opportunity to improve the lives and livelihoods of billions of people by facilitating access to jobs, markets, and essential services such as healthcare or education.
 
But the growth of the transport sector could also come at the cost of higher fossil fuel use and greenhouse gas emissions, increasing air and noise pollution, a growing number of road fatalities, and worsening inequities in access.
 
Although these are, of course, global challenges, developing countries are disproportionately affected.
 
The vast majority of the one billion people who still don’t have access to an all-weather road live in the developing world. Although low and middle-income countries are home to only 54% of the world’s vehicles, they account for 90% of the 1.25 million road deaths occurring every year. If we don’t take action now, transport emissions from emerging markets could triple by 2050, and would make up 75% of the global total.
 
While the case for sustainable mobility is evident, the sector still lacks coherence and clear objectives. There is a way forward, but it requires pro-active cooperation between all stakeholders.
 
That’s what motivated the creation of Sustainable Mobility for All (SuM4All), a partnership between a wide range of global actors determined to speak with one voice and steer mobility in the right direction.
 
SuM4All partners include Multilateral Development Banks, United Nations Agencies, bilateral organizations, non-governmental organizations, civil society organizations, and is open to other important entities such as national governments and private companies. Together, these organizations can pool their capacity and experience to orient policymaking, turn ideas into action, and mobilize financing.

Weekly wire: The global forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

How democratic institutions are making dictatorships more durable
Washington Post
Voters in Uzbekistan, Sudan, Togo, and Kazakhstan will go to the polls in the coming weeks. Freedom House and others classify these countries as authoritarian and the elections are widely expected to fall short of being “free and fair.” How should we think about these elections — and the presence of other seemingly democratic institutions like political parties and legislatures — in non-democratic regimes? Why do leaders of authoritarian countries allow pseudo-democratic institutions? In a recent article in the Washington Quarterly, we use data on autocracies worldwide from 1946 to 2012 to show that authoritarian regimes use pseudo-democratic institutions to enhance the durability of their regimes.

Information Economy Report 2015 - Unlocking the Potential of E-commerce for Developing Countries
United Nations Conference on Trade and Development (UNCTAD )
The 2015 edition of UNCTAD’s  Information Economy Report examines electronic commerce, and shows in detail how information and communications technologies can be harnessed to support economic growth and sustainable development. Electronic commerce continues to grow both in volume and geographic reach, and is increasingly featured in the international development agenda, including in the World Summit on the Information Society outcome documents and in the outcome of the ninth Ministerial Conference of the World Trade Organization. The Information Economy Report 2015 highlights how some of the greatest dynamism in electronic commerce can be found in developing countries, but that potential is far from fully realized.  The report examines opportunities and challenges faced by enterprises in developing countries that wish to access and use e-commerce. 
 

Media (R)evolutions: E-Commerce Will Rise in Emerging Markets

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.

E-commerce is a technology ‘megatrend’ that is expected to become more popular in the future. As it achieves higher penetration rates in developing countries, it will overcome obstacles to adoption like the need for high-speed data networks that are fast enough for smartphones and inventory and shipping costs. These obstacles are only overcome with better infrastructure and greater scale. As its popularity grows, the retail sector, online businesses, logistics and supply chains and other connected industries will need to adjust.

As the table below demonstrates, a larger share of the online population in many countries will be purchasing goods online in 2018 than now. Around 50% of the online population in emerging markets will shop online by 2018, not far from the average penetration of 63% in developed countries.



Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Accountability, Transparency, Participation, and Inclusion: A New Development Consensus?
Carnegie Endowment for International Peace
Four key principles—accountability, transparency, participation, and inclusion—have in recent years become nearly universal features of the policy statements and programs of international development organizations. Yet this apparently widespread new consensus is deceptive: behind the ringing declarations lie fundamental fissures over the value and application of these concepts. Understanding and addressing these divisions is crucial to ensuring that the four principles become fully embedded in international development work.
 
Ebola communication: What we've learned so far
Devex
This week, a World Health Organization infectious diseases expert reported the death rate due to Ebola in West Africa has now climbed to 70 percent, higher than previous estimates. And by December, new cases could hit 10,000 a week. For front-line medical workers, the projections couldn’t be grimmer. They are overwhelmed and their numbers are dwindling — Médecins Sans Frontières has already lost nine staff members to the epidemic — but reinforcements remain sparse. For organizations involved in communication and awareness-raising campaigns, meanwhile, this situation means they need to be more aggressive and robust, and their messaging fool-proof.  We know many of them are on the ground, conducting door-to-door campaigns and spot radio announcements, putting up posters and distributing pamphlets to inform communities about the disease. Some have even resorted to using megaphones to reach people who choose to remain indoors, conduct skits in schools and communities via youth drama troupes. A few aid groups are even considering perceived viral forms of communication like music and video messaging led by former football player and now UNICEF ambassador David Beckham.  But are these campaigns actually working? Will the new plans be effective?
 

Grassroots Business Initiative shows social enterprises how to fish

Michael Figueroa's picture

The Grassroots Business Initiative (GBI) is the brainchild of the World Bank Group’s International Finance Corporation (IFC).  Launched in 2004, the GBI supports innovative social enterprises – dubbed Grassroots Business Organizations (GBOs) – that directly engage the poor as