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financial inclusion

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.

Blockchain technology: Redefining trust for a global, digital economy

Mariana Dahan's picture



a longer version of this blog post is available on the
MIT Media Lab’s Digital Currency Initiative platform

With Google Trends data showing that searches for the word “blockchain” have exponentially increased, we may be entering the peak of the hype cycle for blockchain and distributed ledger technology.

But here’s the thing: the blockchain is a major breakthrough. That’s because its decentralized approach to verifying changes in important information addresses the centuries-old problem of trust, a social resource that is all too often in short supply, especially amid the current era’s rampant concerns over the security of valuable data. It turns out that fixing that can be a boon for financial inclusion and other basic services delivery, helping to achieve the global objectives laid out in the Sustainable Development Goals (SDGs).

Sorting out hype from reality may depend on how well we identify where institutions that have until now played a role in mediating trust between people are falling short, especially in the key area of money. Deploying the blockchain in those settings to generate secure, decentralized trust could achieve great strides in inclusion and innovation.

What do we mean by decentralized trust? The concept is unfamiliar in part because its converse -- centralized trust – is something that we often take for granted, at least while it’s working. But if we look at the history of transactions since the early barter systems to modern-day digital money exchanges, we can see how different trust protocols for keeping track of our exchanges of value have evolved and how, in each case, centralizing trust within particular institutions has periodically caused problems.

As strategies for dealing with this challenge evolved and as the complexity and frequency of transactions grew, different trust bearers emerged. We went from relying on the memory and discretion of tribal leaders, to central governments issuing currencies in the form of precious metals, to commercial banks acting as trusted intermediaries and issuing their own bank notes, to central banks managing a hybrid system in which sovereign fiat banknotes circulate alongside a debt/credit form of money managed by regulated banks and internal ledgers.

Making the invisible billion more visible: the power of digital identification

Vyjayanti T Desai's picture
There are an estimated 1.5 billion people around the world, largely in Asia and Africa, who do not have an officially recognized document to prove their identity.  In Sub-Saharan Africa, more than a third of its population faces this challenge and over 40% of births (in the 0-4 age group) are left unregistered. 
 
Having a formally recognized form of identity provides the poor and vulnerable with the opportunity to climb out of poverty. This is critical for achieving a wide range of development outcomes: from opening a bank account and paving the way for broader financial inclusion to accessing education services, tracking childhood vaccinations, and empowering women.  It can also strengthen the efficiency and effectiveness of the state in providing critical services, such as government to person (G2P) payments, and reduce unnecessary waste of resources through better targeting.  
Photos: World Bank / Authors at Flickr World Bank  


 With the advances in technology including biometrics, data management, and the ubiquity of mobile connectivity, there is an unprecedented opportunity to deliver services faster and more efficiently than ever before.  And a country like India has also shown how, with these advances, a unique identity can be done at a scale not previously possible.
 
To reach the transformational potential of digital identification, the World Bank Group launched the Identification for Development (ID4D) initiative to support progress towards identification systems using 21st century solutions.  We are shaping country priorities through technical assistance, financial support and global expertise.  At present we are engaged with approximately 20 countries – either supporting through financial and technical advice, or through our assessment to determine gaps and help develop a forward looking roadmap.    

Towards a world that counts: an ID for every woman and every child

Mariana Dahan's picture

This week, the World Bank is hosting the Data2X and the Gender Data Revolution event to draw attention to some of the most disturbing issues in development. Too many people are still uncounted. Too much data is out of date, unreliable or simply not available. Too many people are not able to access and use the data they need to make informed decisions and hold others accountable.

Lack of data on women and girls has hindered efforts to advance gender equality and design evidence-based policies that can lift the multiple constraints holding them back – and shed light on many aspects of their work, health, economic status, financial inclusion, ownership of and control of assets, access to services, voice, and agency. In many countries, particularly in the developing world, these data simply do not exist.

Created by former U.S. Secretary of State Hillary Clinton,Data2X is an exciting initiative that aims to build new partnerships to improve data collection and demonstrate how better data on the status of women and girls can guide policy, leverage investments and inform global development priorities.

All over the world, women are denied basic services and protection of their rights because of deficient civil registration and national identification (ID) systems. Lacking records of their birth and civil status, they are excluded from health coverage, schooling, social protection programs, and humanitarian response in emergencies and conflicts.

Means versus ends: Deconstructing the Sustainable Development Goals and the role of identification

Mariana Dahan's picture
The post-2015 development agenda is being shaped as we speak. The United Nations recently released a report that synthesizes the full range of inputs received from various stakeholders. These inputs, among which the ones from the World Bank Group, are a substantive contribution to the intergovernmental negotiations in the lead up to the September 2015 Summit that will officially launch the new Sustainable Development Goals (SDGs) agenda.

But today, with 17 goals and 169 targets, the SDGs are a big mouthful for the global development community to chew on, let alone to digest. Some see a risk that they will be simply unimplementable.

However, the problem becomes a little more manageable if we reflect on the means towards the goals. Not all of the goals are unrelated. Measures towards some targets can open up new ways to achieve others. 

Consider, for example, target 16.9: By 2030, provide legal identity for all, including birth registration. These are actually two different, though related, targets as explained in the recent working paper by the Center for Global Development. Regardless the modalities to achieve it, the recognition of legal identity – together with its associated rights – is becoming a priority for governments around the world. Although there is no one model for providing legal identity, this SDG would urge states to ensure that all have free or low-cost access to widely accepted, robust identity credentials.[1]

With legal identity – including name, nationality and recognized family relationships – one of the basic human rights set out in the Declaration of Human Rights and the Convention on the Rights of the Child can be achieved and target 16.9 can stand on its own merits.