The International Labour Organization estimates that 73.4 million people aged 15-24 do not have a job (43% of global youth), and three times as many young people are underemployed. At the same time, 40% of employers report skills shortage for entry level vacancies, according to McKinsey (Social Initiative 2015). Hence, skill gaps have become an issue to both employers and the unemployed. This trend is exacerbated by technological advancements which are rapidly replacing manual jobs, leaving millions of young people unprepared to participate in the 21st-century knowledge economy.
Three aspects of the skills gap problem need to be addressed in order to find a sustainable solution: urgency, proficiency in technology, and job market readiness. The 2016 World Development Report finds that returns to education are particularly high for ICT-intensive occupations. The wage premium for working in ICT-intensive occupations is around 5% for both men and women in developing countries (WDR 2016). This suggests a tremendous potential of technology education for reducing poverty and boosting prosperity in the developing world.
In the 1990s and early 2000s, the World Bank Group and other development partners actively promoted the mobile revolution, opening up telecommunication sectors that were largely monopolistic and state-owned. The mobile phone, which was seen initially as a luxury good, became a key driver of growth and social inclusion in Africa, South Asia and throughout the world.
This post is the first in a series about the Principles for Digital Development. Future entries will unpack the individual Principles through case studies of successes and failures.
The World Bank recently endorsed the Principles for Digital Development, a set of nine evolving guidelines to help practitioners integrate technologies in development projects. With this endorsement, the Bank joins dozens of development organizations including DFID, USAID, and UNICEF in recognizing the importance of supporting technologies in operations through human-centered, contextually appropriate, collaborative, safe, and sustainable design.
These Principles seek to mitigate challenges that pervade the digital development ecosystem: an abundance of pilot projects that rarely scale, redundant and bespoke tools built in silos, rigid program design and implementation, and a lack of coordination among stakeholders, to name a few. The Bank’s endorsement of the Digital Principles reflects a commitment to support and implement ICTs in a way that avoids these trappings and furthers its twin goals of boosting shared prosperity and eradicating extreme poverty by 2030.
Why is the Bank endorsing these Principles?
The Bank endorses these Principles partly because they align closely with key recommendations from the 2016 World Development Report. While recognizing the potential of ICTs to support development outcomes, the report urges us to think carefully about the analog elements surrounding a digital deployment. Several Digital Principles reflect this concern, reminding practitioners to devote time to understanding the ecosystem in which a technological intervention is implemented, to think pragmatically about sustainability plans, and to address privacy and security.