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World Development Report 2016

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.

Burkina Faso’s digital ambition: transforming through eGovernment and digital platforms

Samia Melhem's picture

Burkina Faso has embarked on a journey to put public data infrastructure at the heart of social and economic development. But what does this mean? And why should ICT and digital data be a priority when a large segment of your population still cannot access to the internet? This is precisely the question that the upcoming World Bank-funded eBurkina project is meant to answer.

First Burkina Faso open data e-services realized with support from the World Bank

Burkina Faso, a low-income landlocked country in West Africa, has the ambition to reform public administration differently. More specifically, the country sees ICT and digital innovation as a key opportunity to accelerate development and meet the objectives of its national development strategy (PNDES). This approach is consistent with the World Development Report 2016 on Digital Dividends, which found that, when used properly and with adequate policy interventions, ICTs can be a powerful tool for social and economic development.

What will it take for Romania to fully reap the dividends of digital transformation?

Marc Lixi's picture
Last week I was in Bucharest and attended the launch of the World Development Report (WDR) 2016: Digital Dividends. The event was co-hosted by the National School of Political and Administrative Studies (SNSPA) and the World Bank.

It was the first country-focused launch in an EU member state and brought together academics, business executives, regulators, journalists, former and current policy-makers to discuss the digital agenda and its implications for Romania’s EU2020 targets, growth and development.

But this launch is not the only reason why Romania stands out.

The country actually represents a paradoxical case study in terms of digital transformation.    

Romania boasts nine of the world’s top fifteen cities with the fastest broadband internet, yet over 40% of the population is at risk of poverty or social exclusion – the highest rate in the EU.

Stuck on the periphery of international trade and global value chains

Daria Taglioni's picture
Firms that are able to access and use the Internet, mobile telecommunications and other digital technologies are much more likely to export, to export to more destinations, to become part of global value chains (GVCs) and to connect to and survive in the global marketplace. They also grab a larger slice of a country’s total exports, and their products tend to be more diverse.

In Jordan, for example, the use of ICT and digital technologies affects firms’ export performance across multiple dimensions (figure 1) – share of exports, sales, market share and survival. This trend can be seen in other developing countries as well, including Chile, India, Indonesia, Peru, South Africa, Thailand and Ukraine.
 
Figure 1. Jordan: Performance of technology-enabled vs. traditional exporters (Source: eBay, 2014)

Yet, as the 2016 World Development Report Digital Dividends highlights, despite the many individual success stories and the rapid spread of digital technologies, aggregate effects on development, growth, jobs, and services of low-income developing countries (LIDCs) is lagging. The lack of ICT capacity and access is often most evident in limiting the opportunities of small- and medium-enterprises (SMEs), as illustrated in the World Bank-OECD report Inclusive GVCs.

Development in the digital age

Kaushik Basu's picture
I have spoken only once before at the UN. I was then just a professor and was invited to speak on my research on labor market regulation. I was told it would be a distinguished audience. However, as I got up to speak, almost all distinguished people seemed to leave the room. Only six hardy souls stayed behind to listen to me.