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Media (R)evolutions: Internet penetration and income inequality

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.

Growing inequality is one of the defining challenges of our time. Seven out of 10 people live in countries where the gap between rich and poor is greater than it was 30 years ago, Oxfam reports. Inequality has also been on the radar of World Economic Forum topping its annual survey of global risks this year.  Christine LaGarde, head of the International Monetary Fund (IMF), has also recently warned that rising inequality is choking economic growth, and leaving “a wasteland of discarded potential”.

What role can the Internet play in helping to address inequality?  The Internet can be an enabler of equal opportunity and broad-based growth because, among other things, it can:

Unfortunately, over four billion people are not connected to the Internet; ninety percent of them live in the developing world. The following graph from Web Index shows, there is a very strong correlation between per capita income and access to the Internet, with the steepest increases in Internet penetration taking place as average income rises from $0 to $10,000 per year.

 Internet Penetration and Income Inequality

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.


If Everyone Gets Electricity, Can the Planet Survive?
The Atlantic
Last week, the vast majority of the world’s prime ministers and presidents, along with the odd pontiff and monarch, gathered in New York to sign up to the United Nations Sustainable Development Goals (SDGs). Across 169 targets, the SDGs declare the global aspiration to end poverty and malnutrition, slash child mortality, and guarantee universal secondary education by 2030. And they also call for universal access to modern energy alongside taking “urgent action to combat climate change.” These last two targets are surely important, but they conflict, too: More electricity production is likely to mean more greenhouse-gas emissions.

Special Report: Connected Citizens - Managing Crisis
Developing Telecomms
As connectivity extends to the remotest parts of the world an unprecedented and transformational development of ICT knowledge and skills is taking place. This is resulting in an urgent reappraisal of the ways in which crisis situations are managed and to the concept of 'disaster relief'.  Connected citizens become proactive partners in crisis management and recovery, finding ICT based solutions to problems, guiding and channelling emergency relief efforts and leading rebuilding activities.

Universal Service Funds & connecting schools to the Internet around the world

Michael Trucano's picture
maybe there's another way to support this?
maybe there's another way to support this?

We need to connect our schools to the Internet. While it may not (yet) be viable to do so in many countries, few education policymakers would question this general aspiration.

Of course, questions related to the speed and nature of this connection are being articulated and considered in different ways around the world, with answers determined by a mix of factors, including what is technologically feasible, what is pedagogically useful and, in the end, what is affordable. Calculations around what it may cost to connect schools to the Internet, and to keep them connected, in ways that are useful and relevant to learners and teachers (as well as to administrators and families), differ widely from place to place -- as do approaches on how to pay for these costs.

Over the past two decades, I have spent a lot of time helping to facilitate policy planning sessions with governments around issues related to technology use in education. Whether this work was part of efforts by the World Links program, linked to the use of the ICT in Education Toolkit supported by infoDev and UNESCO, or as part of more mainstream World Bank advisory activities, mechanisms and approaches by which countries can connect their schools to the Internet have always been a major area of discussion.

It may seem like a small thing, but one of the signature successes of many of these planning efforts wasn't the development of a related policy document outlining a vision and approach for how new technologies could and would be used to support a variety of education objectives. That was almost always the stated goal, but, as anyone who has worked in policymaking circles knows well, committing something to paper is no guarantee that what was drafted will ever actually be implemented -- nor that what's implemented will in the end have any beneficial impact 'on-the-ground'. No, in many cases the most important thing that happened in practice was to connect a diverse set of actors from outside the education sector together with the 'usual suspects' from within education ministries. The fact that you had, in the same room and at the same time, education officials sitting together with officials from the telecom authority, and the IT and finance ministries, as well as representatives from civil society and the private sector -- often times we found that this was the first time ever that all of these groups had talked collectively about how they might work in coordination to help meet some of the shared goals that all of them had related to technology use and education.

One mechanism that is integral to initiatives to connect schools in some countries (and thus which features prominently in these sorts of planning discussions), but which is largely unknown in others (and thus doesn't feature at all), is the use of so-called Universal Service Funds to help pay for such efforts.

For those not familiar with the concept or practice:

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Illicit financial flows growing faster than global economy, reveals new report
The Guardian
$991.2bn was funneled out of developing and emerging economies through crime, corruption and tax evasion in 2012 alone, according to the latest report by the Washington-based group, Global Financial Integrity (GFI), published on Monday.  The report finds that, despite growing awareness, developing countries lose more money through illicit financial flows (IFF) than they gain through aid and foreign direct investment. And IFFs are continuing to grow at an alarming rate – 9.4% a year. That’s twice as fast as global GDP growth over the same period. Though China tops the list of affected countries in terms of the total sum of money lost, as a percentage of the economy, sub-Saharan Africa was the worst affected region as illicit outflows there average 5.5% of GDP.
 
Development’s New Best Friend: the Global Security Complex
International Relations and Security Network
The United Nations’ blueprints for the upcoming Sustainable Development Goals (SDGs) reveal an interesting trend. Whereas the Millennium Development Goals (MDGs) focused exclusively on development initiatives, the SDGs look set to interweave security into what was once solely a development sphere with the inclusion of objectives that seek to secure supply chains, end poaching and protect infrastructure. This shift reflects lessons learned from 15 years of implementing the MDGs and, even more so, broader global trends to integrate security and development initiatives.

Quote of the Week: Bill Gates

Sina Odugbemi's picture

“I certainly love the IT thing.  But when we want to improve lives, you’ve got to deal with more basic things, like child survival, child nutrition.  As a priority? It’s a joke. Take this malaria vaccine, [this] weird thing that I’m thinking of.  Hmm, which is more important, connectivity or malaria vaccine? If you think connectivity is the key thing, that’s great. I don’t.”

- Bill Gates,  an American business magnate, investor, programmer, inventor and philanthropist. He is the founder and current Chairman of Microsoft.

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Is Connectivity a Human Right?
Facebook

“For almost ten years, Facebook has been on a mission to make the world more open and connected. Today we connect more than 1.15 billion people each month, but as we started thinking about connecting the next 5 billion, we realized something important: the vast majority of people in the world don't have access to the internet.

Today, only 2.7 billion people are online -- a little more than one third of the world. That is growing by less than 9% each year, but that’s slow considering how early we are in the internet’s development. Even though projections show most people will get smartphones in the next decade, most people still won’t have data access because the cost of data remains much more expensive than the price of a smartphone.

Below, I’ll share a rough proposal for how we can connect the next 5 billion people, and a rough plan to work together as an industry to get there. We'll discuss how we can make internet access more affordable by making it more efficient to deliver data, how we can use less data by improving the efficiency of the apps we build and how we can help businesses drive internet access by developing a new model to get people online.” READ MORE 
 

Three Pillars for Prosperity in Montenegro

Željko Bogetic's picture

Over the last decade Montenegro has trebled its gross national income (from $2,400 in 2003 to $7,160 in 2012), has reduced its national poverty headcount from 11.3 percent in 2005 to 6.6 percent in 2010, and enjoys the highest per capita income among the six South East European countries.

Despite this considerable progress, however, Montenegro remains a country in need of a new economic direction. The global financial crisis has exposed Montenegro’s economic vulnerabilities and has called into question the country’s overall growth pattern. The period between 2006 and 2008 was characterized by unsustainably large inflows of foreign direct investments (FDI) and inexpensive capital, which fueled a domestic credit consumption boom and a real estate bubble. When the bubble burst in late 2008 and in 2009 real GDP shrank by almost 6 percent, triggering a painful deleveraging and a difficult recovery that is not yet complete. With the base for Montenegro’s growth narrowing and the country’s continued reliance on factor accumulation rather than productivity, it has become clear that this old pattern cannot deliver the growth performance seen just a few years ago.
 
So, what kind of growth model can drive Montenegro’s next stage of development in the increasingly competitive environment of today’s global economy?
 
As spelled out in the recent report “Montenegro – Preparing for Prosperity” this country can go a long way toward returning to the impressive economic gains it was making just a few years ago by emphasizing three critical areas of development: sustainability, connectivity, and flexibility.
 

Connecting Cities for Growth

Parul Agarwala's picture

The emergence of mega-regions, as metropolitan areas merge to form a system of cities, has demonstrably contributed to growth in the developed countries. With South Asia experiencing one of the highest urbanization rates, connecting cities presents opportunity to mobilize people, goods and services, and develop supply chains over larger spatial areas. However, this also implies unraveling overlapping commuting patterns, economic linkages, social networks, multiple jurisdictional boundaries- which add to the complexity of decision-making for policymakers and practitioners.

Trade: The World Is Not Flat Yet

Otaviano Canuto's picture

Thomas Friedman’s bestseller The World Is Flat highlights the strong forces pushing the world towards a single economic platform. The technology-fueled globalization in the provision of services, and the widespread organization of production processes as global value chains are part of his narrative.

South Asia and the Geography of Poverty

Otaviano Canuto's picture

The world has become relatively less poor in the last few decades. People under conditions of extreme poverty -- that is, living on less than $1.25 per day -- have declined as a proportion of the world population, from 52 percent in 1981 to 22 percent in 2008. Thirty years ago almost 75 percent of the developing world lived with $2 a day or less, this number is down to 43 percent today.


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