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How to become a digital innovator in Pakistan

Anna O'Donnell's picture
Students Learning at the Earn through Freelancing Training
Students learning at the Earn through Freelancing training. Credit: Empower Pakistan/World Bank
It is possible today to be sitting almost anywhere in the world and -- provided you have access to a computer and the internet -- you can be working on international projects, learning through online courses, or collaborating with other young people worldwide.

These kinds of connected communities can be a great short-term solution to some of Pakistan’s challenges in creating jobs.  

Pakistan is home to a large youth population, with nearly 100 million youth under the age of 24. Creating more and better jobs for this new generation will be a major development challenge. According to Pakistan’s own estimates, the country will need to grow at around 7 percent a year to absorb all these young people into productive economic participation. But constraints on energy supply as well as budget and capacity constraints on government are going to make this challenging in the short term.

What we have seen working in Pakistan over the last few years is that there is an emerging cultural shift that is becoming more accepting of self-employment and entrepreneurship as legitimate employment pathways for young people.

Given the constraints of the domestic economy to absorb all these young people, many of the employment opportunities will come through the establishment of new businesses. And the tech industry in Pakistan has shown a steady and healthy growth rate in recent years, with the potential both to drive growth through the development of new business models, startups and innovation.

One of the major issues we have seen working here is that many young people are curious about how the internet and technology can offer employment, but are not sure where to start.

Want a digital career? Here’s how to get started:

For those interested in learning some skills and linking to work through international marketplaces—also called freelancing—there are resources available to help with training.
Many of the top freelancing sites offer introductory materials to learn basic freelancing, such as Upwork and SamaSchool. Independent online learning sites also offer courses and certificates, most notably Coursera.

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.

Why is the World Bank on Medium?

Elizabeth Howton's picture
A woman in a market in Guatemala City, Guatemala. © Maria Fleischmann/World Bank

The World Bank is working toward two incredibly ambitious goals: ending extreme poverty by 2030 and ensuring shared prosperity for the bottom 40% of the population in each developing country. To achieve these goals will take not only the World Bank Group, the United Nations and all the national and multilateral development agencies, it will take all of us.

5 ways to close the global innovation divide

Anabel Gonzalez's picture
Participants gather at a hackathon in Nairobi, Kenya (Photo by Flickr user Erik (HASH) Hersman)

High income economies are dominating global innovation. Led by Switzerland, the top 10% are outpacing the rest in innovation as measured by the 2014 Global Innovation Index. This rich-poor innovation divide is striking with a handful of high income countries, mostly in Europe accounting for most of the top 10%. The bottom quintile consists of predominantly low income economies with more than half from Sub Saharan Africa.

 Global Innovation Index Report, 2014
Source: Global Innovation Index Report, 2014

The top innovating economies rate strongly on the quality of their institutions including a stable political environment and an effective regulatory and business environment. They benefit from and continue to invest heavily in human capital, research and development and infrastructure. They score highly on business and market sophistication – good management is fundamental for private sector innovation. They have also established most if not all of the elements of a successful innovation ecosystem. These countries consequently dominate in knowledge outputs including on most measures of knowledge creation, impact and diffusion as well as in technology and creative outputs.

It is difficult to imagine that poor countries or emerging markets without innovation will be able to catch up and become high-income economies in the 21st Century, an era already characterized by previously unimaginable technological progress and, importantly, international diffusion. Populations in these countries are in dire need of innovative solutions to deliver clean water and energy, health and education services, better housing, sanitation and transportation and increased food production while battling the adverse impacts of climate change. These economies need to create jobs for millions of unemployed youth leveraging the benefits of an increasingly digital global economy.

What can be done to bridge this yawning innovation and competitiveness gap?

Pathway to profitable women-owned enterprises

Francesco Strobbe's picture

Pathway to profitable women-owned enterprises @ Evgeni Zotov / FlickR

Women entrepreneurs in Ethiopia are disadvantaged from the start. They have less access to the finance, networks, and education which help their male counterparts advance. They face regular discrimination and harassment from society--sometimes even from their own families and communities. The challenges a woman entrepreneur in Ethiopia faces in growing her business are overwhelming.

Innovation and Enterprise: A Driving Force for Social Impact

Adarsh Desai's picture

Traditionally innovation and entrepreneurship are seen as drivers of jobs and competitiveness, however we think it can also be an important driver of inclusiveness and social development.

We see how private actors are driving social development – the example of the Development Marketplace and its spin-off Social Enterprise Innovations program demonstrate the potential for scaling inclusive businesses, grassroots innovations and social entrepreneurship to solve development challenges like sanitation, clean water, early childhood nutrition, health-care services, and many more. We have examples in our portfolio of how social enterprises are delivering low cost TB treatments in poor communities, delivering clean water to urban and rural poor, and offering education opportunities to girls.

The World Bank’s Caribbean Entrepreneurship Program: One Woman’s Story of Growth

Michael Grant's picture

After managing businesses in television and tourism, Shirley Lindo returned to Jamaica with a desire to create a community-enriching enterprise. As the daughter of a St. Ann farmer, she chose natural products, free of additives, that could be grown on her "Outa Earth" plot in the old Bernard Lodge sugar lands.

Since castor beans grow fairly easily on Jamaica’s plains, she settled on the production of castor oil, a versatile commodity valued as a food additive, manufacturing element, cosmetic ingredient and healing agent. As a testament to the oil’s quality, it has won blue ribbons at the Denbigh Agricultural show, Jamaica’s largest, three years running.
Shirley discovered, after a few years of producing the oil using a laborious traditional process and selling to local and American customers, that her product generated large quantities of waste. Rising everywhere were piles of bean shells and leftover bean pulp, plus the leftover trash from another crop, the moringa seeds that were becoming a popular health food on the island.

After doing some research on uses for these agricultural byproducts, Shirley applied for a grant to use them to develop a sustainable soil conditioner and low-smoke briquettes.

From 300 entrants, Shirley was one of 11 winners selected from across the CARICOM (Caribbean Community and Common Market) region, and one of four women in that group. Her initial progress was slow, as she grappled with the cost of scaling up castor oil production in order to create the critical mass required for producing the newer products more efficiently.

Prosperity of Nations: Does culture matter for entrepreneurship?

Shankha Chakraborty's picture

Economists have been increasingly looking at culture to explain the divergent economic fortunes of nations. Does culture matter for development? If it does, what kind of culture?  In a recent paper we argue that differences in economic development across countries can be explained by a culture of entrepreneurship, that there is a role for government policy to shift culture towards risk-taking and innovation but that, ultimately, culture is subordinate to institutions.

Sowing the Seeds of Green Entrepreneurship: Startup Bootcamps and Pitching Competitions

Julia Brethenoux's picture

Heading back from a recent mission to Ghana, I felt really proud of what we have accomplished: training 20 of the most promising local clean-tech entrepreneurs through the Green Innovators Bootcamp. The words used to inaugurate the event are still in my head: “This bootcamp is not an end in itself. It’s the beginning of your journey as entrepreneurs.”

Indeed, bootcamps for startups and SMEs – as well as close cousins like Hackathons, Start-up Weekends, and Business Plan Competitions – are an increasingly popular activity used to catalyze innovative ideas and provide entrepreneurs with the tools and resources they need to launch their ventures.

In Ghana for example, infoDev -- a global innovation and entrepreneurship program in the World Bank Group -- organized a two-day training event to help a group of 20 early-stage entrepreneurs assess the feasibility of their business concept, identify their customer base, and refine their business model.
Organizing a bootcamp can be very challenging and time-consuming, but, when done properly – read “7 things you need to do to prepare for the perfect bootcamp” – the payoff is big. "Bootcampers" find these initiatives very useful to identify new solutions to the challenges they face to launch their businesses -- mostly access to finance, product development, and marketing. Furthermore, "pitching competitions" and "business contests" offer new entrepreneurs an excellent and safe stage to refine their business pitch -- a key tool of every successful entrepreneur.
One of the goals of bootcamps and pitching competitions is to bring together different stakeholders – from entrepreneurs to investors and policymakers – to facilitate the creation of ecosystems in which entrepreneurs can grow and thrive. But is it realistic to expect that bootcamps and similar training initiatives are enough to enable promising entrepreneurs to reach their full potential? The answer is simply: No. Make no mistake: Bootcamps are an exciting tool to create buzz and interest in countries that have little entrepreneurial history and culture. In most contexts, however, there is no follow-through with effective action plans that can keep the momentum going. This not only limits the value of these initiatives, but can also cause harm to a nascent ecosystem.