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2016WDR

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.

World Development Report 2016: “The internet unites people; its governance divides nations”

Sina Odugbemi's picture
© John Stanmeyer/National Geographic Creative. Used with the permission of John Stanmeyer/National Geographic Creative. Further permission required for reuse.The World Development Report (WDR) 2016, a World Bank Group Flagship Report, is titled Digital Dividends. At 330 pages, it is a big piece of work, and it is an Aladdin’s Cave of information gems, brilliant analysis, and the fulfilled promise of a thorough-going education on its chosen subject.

According to the press statement announcing the report, the…
 

…report says that while the internet, mobile phones and other digital technologies are spreading rapidly throughout the developing world, the anticipated digital dividends of higher growth, more jobs, and better public services have fallen short of expectations, and 60 percent of the world’s population remains excluded from the ever-expanding digital economy. According to the new ‘World Development Report 2016:  Digital Dividends,’ authored by Co-Directors, Deepak Mishra and Uwe Deichmann and team, the benefits of rapid digital expansion have been skewed towards the wealthy, skilled, and influential around the world, who are better positioned to take advantage of the new technologies. In addition, though the number of internet users worldwide has more than tripled since 2005, four billion people still lack access to the internet.

In what follows, I am going to discuss a small part of the report that I am particularly interested in. And that is the vexed subject of internet governance. As we all know by now, the dream of the founders of the internet was that it would be a libertarian paradise and a virtual monument to a transcendent cosmopolitanism: a truly free and borderless world. Sadly, all kinds of companies and governments are turning the internet into something else entirely.  How to govern the internet is now a bone of discord.

Digital IDs: A powerful platform for enhanced service delivery across all sectors

Mariana Dahan's picture
Lack of personal official identification (ID) prevents people from fully exercising their rights and isolates them socially and economically — voting, legal action, receipt of government benefits, banking, and borrowing are all virtually closed off. The widespread lack of ID in developing countries is a critical stumbling block to national growth.
 
Digital IDs can help provide access to
critical services, including health care.

Digital IDs, combined with the already extensive use of mobile devices in the developing world, offers a transformative solution to the problem — a simple means for capturing personal ID that can reach far more people, as well as and new, more efficient ways for government and business to reach and serve the population.
 
Given the importance of the topic, the 2016 World Development Report (WDR) includes a Spotlight on Digital Identity, which has been developed by the authors in collaboration with various stakeholders within and outside the World Bank Group.

The 2016 WDR — the World Bank's major analytical publication — aims to advance our understanding of how economic growth, equity of opportunity and public service delivery are being affected by rapid diffusion of digital technologies. This section in 2016 WDR focuses on critical aspects, such as benefits to developing countries and implementation arrangements for Digital ID programs.

What happens when the economics of everything meet the internet of things?

Miles McKenna's picture

What will digital innovation mean for trade and development? Source - RiderofthestormWhen we think of eradicating extreme poverty, most of us associate this idea with the provision of basic needs. Food. Water. Shelter. Some argue to include clean air, security, even access to basic healthcare and primary education. But what about access to the internet? Where does the internet fit into development?

This is one of the overarching questions put to the authors of the upcoming 2016 World Development Report: Internet for Development. It was also the topic of a recent roundtable discussion entitled Digital Trade: Benefits and Impediments here at the World Bank Group, where economists and development professionals, including representatives from the public and private sectors, sat down to discuss some of these issues in detail.

The conversation hinged on what the internet meant for trade, especially for online entrepreneurs in developing countries. The internet, in many ways, signifies innovation. How then can we ensure that individuals seeking to introduce their ideas to the world and tap into the global marketplace can best do so? Is this a question of infrastructure? Is it a question of regulation?

Here’s what the numbers tell us.