Economic shocks can be painful and destructive, especially in fragile countries that can get trapped into a cycle of conflict and violence. Effective policy responses must be implemented quickly and based on evidence. This requires reliable and timely data, which are usually unavailable in such countries. This was particularly true for South Sudan, a country that has faced multiple shocks since its independence in 2011. Recognizing the need for such data in this fragile country to assess economic shocks, the team developed a real-time dashboard to track daily exchange rates and weekly market prices (click here for instructions how to use it).
Information and Communication Technologies
If you have been listening lately to Robert ‘Bob’ Gordon, an economics professor at Northwestern University, he will tell you that the days of great inventions are over. This in turn, has led to a significant slowdown in total factor productivity – a measure that economists use to measure innovation and technical progress. Falling productivity is one of the main reasons for growth shortfall in advanced economies like the United States.
Eager to know more about this seemingly worrisome and pessimistic thesis, which has attracted a lot of attention among economists and the media, we invited Gordon to give a talk at the World Bank.
There is increasing evidence that labor markets in developed countries are polarizing or hollowing out. On the one hand, the share of employment in high-skilled, high-paying occupations (managers, professionals and technicians) and low-skilled, low-paying occupations (elementary, service, and sales workers) is growing. On the other hand, the share of employment in middle-skilled, middle-paying occupations (clerks, plant and machine operators) is being squeezed. There is ample evidence of polarization in the United States (see Acemoglu and Autor, 2011; Autor and Dorn, 2013; and Autor (2014) for a less technical discussion), and also in Western Europe (Goos, Manning, and Salomons, 2014). Harrigan, Reshef and Toubal (2016), more recently, document the same phenomenon in France, using firm-level data.
The most recent International Women’s Day focused on accelerating gender parity, which makes it a perfect time to highlight the urgent need to boost women’s economic participation worldwide. One way of doing that is by tapping into the power of digital payments and digital financial services.
Advances in earth observation, computing power, and connectivity have tremendous potential to help governments, and us at the World Bank, support better land management, and ultimately reduce poverty and promote shared prosperity.
There are three ways in which these technologies profoundly change the scope of our work.
Pop quiz: Which of these statements do you agree with?
- If you build “IT” they will come.
- Poor people don’t need mobile phones. They need clean water and food instead.
- Digital skills are only relevant for people who work in the ICT sector. The rest of us don’t need them.
Digital technology dominates our everyday lives, and with each passing day, even more so. How can the global community benefit from the new digital era?
The World Bank’s World Development Report 2016 (WDR 2016) provides a useful framework and guidance for harnessing the potential of the internet for development. “To get the most out of the digital revolution, countries also need to work on regulations, skills and institutions—by strengthening regulations that ensure competition among businesses, by adapting workers’ skills to the demands of the new economy, and by ensuring that institutions are accountable,” says the Report. This may sound familiar, but it is not. Let me explain.
- Male, from Madurai, India, Age between 16-25, intermediate diploma holder
“ I am a full time independent freelancer and my 100% earning comes from online. So definitely internet is one of the most important things in my life”
- Male, from Dhaka, Bangladesh, Age between 26-45, completed Bachelor and above
These quotes are just a glimpse at the power of digital technologies, coming from many amazing stories as people answered the following question online: “how has your life changed (personally or professionally) after you began to use the internet?” A key message from the responses is “Internet provides an opportunity to learn, earn, make friends, connect with family and friends, apply for jobs easily, and shop online.” As discussed in the upcoming World Development Report 2016 “Digital Dividends,” the internet, and other digital technologies, are changing the way people work, entertain, interact, and find jobs across high, middle and low-income countries.