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digital dividends

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.

Who shares in the European sharing economy?

Hernan Winkler's picture
Data on the sharing economy (Uber, Airbnb and so on) are scarce, but a recent study estimates that the revenue growth of these platforms has been dramatic. In the European Union (EU), the total revenue from the shared economy increased from around 1 billion euros in 2013 to 3.6 billion euros in 2015. While this estimate may equal just 0.2% of EU GDP, recent trends indicate a continued, rapid expansion.

This is important, as the sharing economy has the potential to bring efficiency gains and improve the welfare of many individuals in the region.

This can also generate important disruptions.

While online platforms represent a small fraction of overall incomes, the share of individuals participating in these platforms is large in many European countries. For example, roughly 1 in 3 people in France and Ireland have used a sharing economy platform, while at least 1 in 10 have in Central and Northern Europe (see figure below).

At the same time, the share of the population that has used these platforms to offer services and earn an income is also significant, reaching 10% or more in France, Latvia, and Croatia. This means that at least one out of every ten adults in these countries worked as a driver for a ride-sharing platform such as Uber, rented out a room of his or her house using a peer-to-peer rental platform such as Airbnb, or provided ICT services through an online freelancing platform such as Upwork, to name a few examples.

How can developing countries make the most of the digital revolution?

Nagy K. Hanna's picture

Also available in: French

Digital technologies have been transforming the global economy. Yet many countries have yet to experience the full developmental benefits of digital technologies, such as inclusive and sustainable growth, improved governance, and responsive service delivery. Given the magnitude of change in competitive advantage that digital technologies can confer on adopters, the risks of slow or poor adoption of these innovations can be dire for industries, governments, individuals, and nations. So, how can policy makers successfully harness the digital revolution for development? This is the motivation behind my new publication: Mastering Digital Transformation (Emerald, 2016).

From my long experience in development assistance, I saw how information poverty in its many forms has led to policy planning and management without facts, disconnected enterprises, inefficient markets, poor service delivery, disempowerment, corruption, and more. The ongoing ICT revolution has been long ignored in development thinking and practice. Development practitioners and ICT specialists remain disconnected. I studied the experiences of countries pursuing digital transformation, and captured key lessons and takeaways in several books.

Digital transformation is not a technological fix, a blueprint plan, a one-off event, or a one-size-fits-all strategy. Rather, it is a social learning process, sustained over time, involving diverse stakeholders. Its ultimate objective is to harness the global digital revolution to meet a country’s specific socio-economic priorities. This process is a marathon, not a sprint. It is driven by vision, leadership, innovation, learning, and partnerships among government, business, and civil society.

Traffic jams, pollution, road crashes: Can technology end the woes of urban transport?

Shomik Mehndiratta's picture
Photo: Noeltock/Flickr
Will technology be the savior of urban mobility?
 
Urbanization and rising incomes have been driving rapid motorization across Asia, Africa, and Latin America. While cities are currently home to 50% of the global population, that proportion is expected to increase to 70% by 2050. At the same time, business-as-usual trends suggest we could see an additional 1 billon cars by 2050, most of which will have to squeeze into the already crowded streets of Indian, Chinese, and African cities.
 
If no action is taken, these cars threaten literally to choke tomorrow’s cities, bringing with them a host of negative consequences that would seriously undermine the overall benefits of urbanization: lowered productivity from constant congestion; local pollution and rising carbon emissions; road traffic deaths and injuries; rising inequity and social division.
 
However, after a century of relatively small incremental progress, disruptive changes in the world of automotive technology could have fundamental implications for sustainability.
 
What are these megatrends, and how can they reshape the future of urban mobility?

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.

Media (R)evolutions: Trends in information and communication technologies

Darejani Markozashvili's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Every year the International Telecommunication Union (ITU) publishes Measuring the Information Society Report that looks at the latest developments in information and communication technologies (ICTs).

Here are some of the latest ICT trends according to ITU.  

Regional comparisons:
  • Europe continues to lead the way in ICT development;
  • A number of countries in the Americas significantly improved their performance in the ICT Development Index (IDI);
  • The Commonwealth of Independent States (CIS) region is the most homogeneous in terms of ICT development;
  • The Asia-Pacific region is, by contrast, the most heterogeneous;
  • There is great diversity in ICT development across the Arab States;
  • Africa is working on pushing up its IDI performance.
Internet potential underused:
  • Many people have access to Internet, but many do not actually use them;
  • The full potential of the Internet remains untapped;
  • Many people still do not own or use a mobile phone;
  • Progress in Least Developed Countries (LDCs) – mobile-cellular prices continued to decrease in 2015, and the price drop was steeper than in previous years;
  • Affordability is the main barrier to mobile-phone ownership;
  • Fixed-broadband prices continued to drop significantly in 2015 but remain high – and clearly unaffordable in a number of LDCs.
The issue of affordability of various ICT services needs to be at the forefront of the development agenda in order to decrease the digital divide. Despite the fact that the overall mobile-cellular prices, as well as fixed-broadband and mobile-broadband prices have dropped in recent years, affordability of ICT services is still one of the key barriers to ICT uptake.  The role of ICTs is crucial in ending poverty, providing millions with access to a wealth of educational resources, and supporting the Sustainable Development Goals.

The recent report also finds that the gender gap is prominent in many aspects of technology. For example, “data on mobile-phone usage by gender shows that the percentage of male users is higher than that of female users in most countries, although differences are small in most economies.” However, in some countries gender gap is significant in the mobile-phone ownership. For example, in Bangladesh, India, and Pakistan, men are twice as likely as women to own a mobile phone.
 

Great Gatsby Goes to College

Shwetlena Sabarwal's picture


Nick Carraway, the narrator in F. Scott Fitzgerald’s The Great Gatsby, remembers his father saying, “Whenever you feel like criticizing anyone … just remember that all the people in this world haven't had the advantages that you've had.”

What advantages? For starters, wealth, power, and in today’s developed world - college.

In the U.S., the college wage premium has risen rapidly since 1980 – causing a widening earnings gap between the college and non-college educated. Those with a bachelor’s degree earn over $800,000 more in lifetime income, on average, than those with high school diplomas. In the OECD, the college wage premium averages at 28 percent for male, full-time working employees - ranging from 18 per cent in Sweden to 50 per cent in the Slovak Republic. 

As higher education expanded, college wage premiums were expected to decline. So why are they high and, often, increasing?

The consensus seems to point to increased computerization and automation in labor markets. Technology is expanding the demand for the college educated, at the expense of the non-college educated. This ‘job polarization’ in the labor market, manifests as the growth of high-education/high-wage jobs at the expense of middle-education/middle-wage jobs. This is increasingly visible not just in advanced economies, but also in the developing world. According to the Word Development Report 2016 on Digital Dividends, the share of middle-skilled employment is down in most developing countries for which detailed data are available.

Watching Tanzania leapfrog the digital divide

Boutheina Guermazi's picture
 
Digital opportunities are the fuel of the new economy. They have significant impact on both the economy and society. They contribute to growth, create jobs, are a key enabler of increased productivity, and have significant impact on inclusion and poverty reduction. They also provide the ability to leapfrog and accelerate development in key sectors like health and education.
 
Why is this important?  It is important because “going digital” is not a temporary phenomenon. It is a revolution—what the World Economic Forum calls “the 4th industrial revolution”. It is happening before our eyes at a dizzying pace, disrupting every aspect of business, government and individuals’ lives. And it is happening in Tanzania.

Media (R)evolutions: Making broadband policy universal for inclusive development

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

In order to ensure economic and social development is inclusive, all citizens, including the poor and those living in rural areas, must have access to information. Communication services, which includes mobile broadband, remains a crucial element in this goal. However, cost, competition, demand and affordability, and customer distribution (among others) all influence how telecommunication firms view the feasibility of providing specific technology services.

National broadband plans (NBPs) and universal access and service (UAS) policies that provide regulation, financing, and access goals are essential to ensuring that a country can provide broadband services. These policies, which can be tailored to ensure they will provide access to poor and rural communities, should not be viewed as an obligation but an opportunity for growth. The World Bank acknowledges this in the 2016 World Development Report: Digital Dividends:

Government policies and regulation of the internet help shape the digital economy. Particularly through their policies for the ICT sector, governments and regulatory agencies create an enabling environment for the private sector to build networks, develop services, and provide content and applications for users. Increasingly, governments seek to cooperate across borders on issues such as cybersecurity, privacy, and cross-border data flows. Internet-enabling policies have evolved over time, especially those for the ICT sector [...] Broadband internet, in particular, is seen as a general-purpose technology, essential for the competitiveness of nations, and governments have invested more than US$50 billion in broadband networks since 2009 as part of stimulus packages. Most also have national broadband plans.


With this in mind, the Broadband Commission tracks national progress towards a set of targets, the first of which is to make broadband policy universal. Advocacy target 1 states, “All countries should have a National Broadband Plan or strategy or include broadband in their UAS definitions.” According to its latest annual report, The State of Broadband: Broadband catalyzing sustainable development, growth in the number of countries with NBPs has progressed over the past eight-year period, but has stabilized in the past three. There are now 151 countries with a NBP, and 38 have not yet developed one. Azerbaijan is the most recent addition to the list of countries with an approved NBP, and another seven countries are planning to introduce one: Cape Verde, Cuba, Dominica, Iraq, Solomon Islands, Saint Lucia and Togo.

Could the digital revolution get more women into work?

Leora Klapper's picture

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.


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