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Media (R)evolutions: Internet penetration and income inequality

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.

Growing inequality is one of the defining challenges of our time. Seven out of 10 people live in countries where the gap between rich and poor is greater than it was 30 years ago, Oxfam reports. Inequality has also been on the radar of World Economic Forum topping its annual survey of global risks this year.  Christine LaGarde, head of the International Monetary Fund (IMF), has also recently warned that rising inequality is choking economic growth, and leaving “a wasteland of discarded potential”.

What role can the Internet play in helping to address inequality?  The Internet can be an enabler of equal opportunity and broad-based growth because, among other things, it can:

Unfortunately, over four billion people are not connected to the Internet; ninety percent of them live in the developing world. The following graph from Web Index shows, there is a very strong correlation between per capita income and access to the Internet, with the steepest increases in Internet penetration taking place as average income rises from $0 to $10,000 per year.

 Internet Penetration and Income Inequality

Weekly wire: The global forum

Roxanne Bauer's picture

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

Lagarde-ian of the Galaxy
The Huffington Post
The morning scene at New York’s Carlyle Hotel is about the most perfect illustration of the term “power breakfast” that you could envision. On the ground floor of the opulent art deco hotel—a longtime favorite of American presidents, and the preferred Manhattan residence of visitors from Princess Diana to Mick Jagger to George Clooney—impeccably attired men enjoyed the buffet as several different security details milled about the lobby. Christine Lagarde, the head of the International Monetary Fund, was sitting at a secluded table with an aide. Since Lagarde, 59, replaced Dominique Strauss-Kahn at the IMF—a formerly staid institution created in 1944 to ensure financial stability largely through the maintenance of exchange rates—she has found herself at the center of not one but several global emergencies.

The Complexities of Global Protests
Carnegie Endowment for International Peace
Major protests have occurred around the world with increasing frequency since the second half of the 2000s. Given the superficial resemblance of such events to each other— especially the dramatic images of masses of people in the streets—the temptation exists to reach for sweeping, general conclusions about what is happening. Yet it is in fact the heterogeneity of this current wave of protests that is its defining characteristic. The spike in global protests is becoming a major trend in international politics, but care is needed in ascertaining the precise nature and impact of the phenomenon.

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.

Discarding Democracy: A Return to the Iron Fist- Freedom in the World 2015
Freedom House
For the ninth consecutive year, Freedom in the World, Freedom House’s annual report on the condition of global political rights and civil liberties, showed an overall decline. Indeed, acceptance of democracy as the world’s dominant form of government—and of an international system built on democratic ideals—is under greater threat than at any point in the last 25 years.  Even after such a long period of mounting pressure on democracy, developments in 2014 were exceptionally grim. The report’s findings show that nearly twice as many countries suffered declines as registered gains, 61 to 33, with the number of gains hitting its lowest point since the nine-year erosion began.
 
Digital Inclusion: The Vital Role of Local Content
Innovations, MIT Press
The journal features cases authored by exceptional innovators; commentary and research from leading academics; and essays from globally recognized executives and political leaders.  The current issue contains lead essays entitled “Building a Foundation for Digital Inclusion”, “Inequitable Distributions in Internet Geographies”, and “To the Next Billion”.  It also includes case narratives entitled “A Mobile Guide Toward Better Health” and “A Social Network for Farmer Training” and more.

Winning the Game of Mining Taxation

Paul Barbour's picture

The last few years have brought an uptick in the number of mining investments that have been the subject of disputes between investors and governments. This trend is of considerable concern to the players in the sector across the globe.
 
Yet, there is a wealth of wisdom to be—pardon the pun—mined from the literature over the past few decades in an attempt to distill what the main risk factors are in agreements that govern investments in the sector, with specific focus on taxation regimes. 

Number of Expropriatory Acts by Sector – three-year rolling averages
 
Source: Chris Hajzler (2010), “Expropriation of Foreign Direct Investments: Sectoral Patterns from 1993 to 2006,” University of Otago in MIGA,World Investment and Political Risk 2011

Rethinking Sustainable Development

Nemat Shafik's picture

As the 2015 deadline for achieving the Millennium Development Goals approaches, much thought is being devoted to what should succeed that framework for measuring global progress against hunger, disease, and poverty. Any successor framework must reflect global aspirations and arise from a rich consultative process. I believe that the new framework must embrace a broader understanding of development — one that is relevant for all countries, rich as well as poor.

The world today looks very different from a few years ago. Many countries have high levels of debt that could make it difficult to undertake spending initiatives for many years. Financial sector incentives and regulation may have to be rethought, existing growth models refined to deliver sufficient new employment opportunities, and the functioning of the international monetary system revisited.

Mainstreaming Civil Society Participation at the Annual Meetings

John Garrison's picture

The participation of civil society representatives at the World Bank and IMF’s Annual Meetings, which brings together the world’s finance ministers to discuss international development policy, has grown steadily over the past six years.  The most recent Annual Meeting, held in October 2011, saw the largest CSO participation to date, with a total of 600 CSO representatives from 85 countries in attendance. They represented a variety of civil society constituencies: non-governmental organizations, youth groups, foundations, faith-based groups, and trade unions.  They came to discuss a broad range of issues ranging from financial transactions tax and aid effectiveness, to energy policy.  In order to ensure that Southern CSO voices are also heard, the Bank and Fund sponsored 60 CSO and Youth Leaders from developing countries to participate in the Meetings. 

Whither the development agency’s flagship report?

Adam Wagstaff's picture

The Economist carried a couple of stories recently about how two hitherto major institutions in my home country (newspapers and pubs) have been forced to adapt in the face of changes in public preferences. Many didn’t—as a result newspaper circulation and pub numbers have both fallen dramatically. The newspapers and pubs that did survive operate very different business models from the newspapers and pubs in existence even 10 years ago.

Some data I’ve assembled make me wonder whether—like the newspaper and pub—the development-agency flagship might not also be an institution in need of reform.

The flagship

Most big development and international agencies have a flagship. The World Bank launched its World Development Report in 1978. The IMF’s World Economic Outlook started two years later. The UNDP launched its Human Development Report in 1990, and WHO followed with its World Health Report five years later. Several other UN agencies have annual or periodic flagship reports too.

The good, the bad, and the ugly imbalances

Hans Timmer's picture

In a recent IMF Staff position note Olivier Blanchard and Gian Maria Milesi-Ferretti provide a useful classification of current account imbalances. They argue that deficits and surpluses on current accounts are "good" if they reflect optimal allocation of capital across time and space. That is the case, for example, when savings ratios differ across countries because of different ageing profiles or when investment ratios differ because of different productivity trends.

What's on the agenda?

Nina Vucenik's picture

Augustin Carstens, Development Committee Chair, Finance Minister, MexicoThe Development Committee is scheduled to meet on Monday, October 5.

The committee is a forum of the World Bank and the International Monetary Fund that facilitates intergovernmental consensus-building on development issues. Its mandate is to advise the Boards of Governors of the Bank and the Fund on critical development issues and on the financial resources required to promote economic development in developing countries.

At their meeting, the Development Committee will review the Bank's financial capacity to provide assistance to countries coping with the economic crisis and beyond, and discuss the issue of "voice" (ensuring people from all parts of the world have a say in key issues that affect them).

Annual Meetings preparations under way

Sameer Vasta's picture

Istanbul, by maistora

You might be noticing a few changes over here on the World Bank Meetings Center over the next few days — the elements around the main blog post area are slowly changing in preparation for the Annual Meetings.

The Annual Meetings are being held in Istanbul in early October, and over the next few weeks, we'll be bringing you updates about the run-up to the Meetings, as well as updates from Istanbul and the Meetings themselves.


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