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Innovation

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.

 
The Internet
Global Governance Monitor

The Internet has revolutionized communication and radically altered the conduct of business, politics, and personal lives. Information is now widely available and shared through instant message, email, and social media. Businesses can operate internationally with virtually no delay, enabling previously unimaginable opportunities such as providing medical advice across oceans. Moreover, the embedding of sensors, processors, and monitors in everyday products links the physical and virtual worlds, expanding vast streams of data and creating new markets. The Internet has also altered the relationship between governments and societies. Low-cost, nearly ubiquitous communication platforms allow citizens to mobilize and build transnational networks. The speed of communication can make governments more accountable, and open-data initiatives enable the participation of nongovernmental organizations and increased transparency. Though the technology has facilitated unprecedented economic growth, increased access to information, and delivered innovative solutions to historic challenges, the expansion of the Internet has also brought challenges and vulnerabilities.
 

The 2016 Brookings Financial and Digital Inclusion Project Report, Advancing equitable financial ecosystems
Brookings Institution

The 2016 Brookings Financial and Digital Inclusion Project (FDIP) evaluates access to and usage of affordable financial services by underserved people across 26 geographically, politically, and economically diverse countries. The 2016 report assesses these countries’ financial inclusion ecosystems based on four dimensions of financial inclusion: country commitment, mobile capacity, regulatory environment, and adoption of selected traditional and digital financial services. The 2016 report builds upon the first annual FDIP report, published in August 2015. The 2016 report analyzes key changes in the global financial inclusion landscape over the previous year, broadens its scope by adding five new countries to the study, and provides recommendations aimed at advancing financial inclusion among marginalized groups, such as women, migrants, refugees, and youth.

‘Smartest Places’ via smarter strategies: Sharpening competitiveness requires ingenuity, not inertia

Christopher Colford's picture

Seeking an antidote to the gloom-and-doom bombast of this election year? Try a dose of optimism about urban“hotspot hustle and cutting-edge cool” – with a book that champions smart public policy, delivered through a shrewd approach to Competitiveness Strategy.

Gazing into the rear-view mirror is a mighty reckless way to try to drive an economy forward. Yet backward-looking nostalgia for a supposedly safer economic past – with voters' anxiety being stoked by snide sloganeering about “taking back our sovereignty” and “making the country great again” – has infected the policy debate throughout this dispiriting election year, in many of the world’s advanced economies. Scapegoating globalization and inflaming fears of job losses and wage stagnation, populists have harangued all too many voters into a state of passivity, lamenting the loss of a long-ago era (if ever it actually existed) when inward-looking economies were, allegedly, insulated from global competition.


Optimism has been in short supply lately, but an energetic new book – co-authored by a prominent World Bank Group alumnus – offers a hopeful perspective on how imaginative economies can become pacesetters in the fast-forward Knowledge Economy. Advanced industries are thriving and productivity is strengthening, argue Antoine Van Agtmael and Fred Bakker, now that many once-declining manufacturing regions have reinvented their industries and reawakened their entrepreneurial energies.

Welcome to the brainbelt,” declares “The Smartest Places On Earth: Why Rustbelts Are the Emerging Hotspots of Global Innovation” (published by Public Affairs books). Now that brainpower has replaced muscle-power as the basis of prosperity in an ever-more-competitive global economy, the key factor for success is "the sharing of knowledge." Longlisted for the Financial Times/McKinsey Business Book of the Year Award, “Smartest Places” is receiving well-deserved attention among corporate leaders and financial strategists – and it ought to be required reading for every would-be policymaker.

The era of “making things smart” has replaced the era of “making things cheap” – meaning that industries no longer face a “race to the bottom” of competing on costs but a “race to the top” of competing on creativity. Knowledge-intensive industries, and the innovation ecosystems that generate them, create the “Smartest Places” that combine hotspot hustle and cutting-edge cool.





Those optimistic themes may sound unusual to election-year audiences in struggling regions, which are easy prey for demagogues manipulating populist fears. Yet those ideas are certainly familiar to readers at the World Bank Group, where teams working on innovation, entrepreneurship and competitiveness have long helped their clients shape innovation ecosystems through well-targeted policy interventions that strengthen growth and job creation.

“Smartest Places,” it strikes me, reads like an evidence-filled validation of the Bank Group’s recent research on “Competitive Cities for Jobs and Growth.” That report, published last year, offers policymakers (especially at the city and metropolitan levels) an array of practical and proven steps that can help jump-start job creation by spurring productivity growth.

Real social innovation needs empathy and understanding- podcast with Richard Hull

Enrique Rubio's picture

In this podcast, Richard Hull says that real social innovation needs empathy and understanding of the people and context upon which we want to make a difference. Richard is the Director of the Master’s Program in Social Entrepreneurship at Goldsmiths in the University of London. One of the things that I found most interesting about his program is the motto of thinking of social entrepreneurship “outside of the box”, which Richard explains during the podcast.

He describes the strong connection that exists between creativity, which is the foundation of the program, and social entrepreneurship. Particularly, even though there’s a lot of innovation, creativity, and technology that is very visible, he says that there’s a lot of work going on quietly in the background, and it is important to understand its lessons, too.

Richard talks about the example of participatory market development approaches, where the design of innovation revolves around the poorest and most marginalized people. He mentions how some western technologies are dumped in developed markets, becoming totally inappropriate. Richard highlights that it is fundamental to create the innovations with the people who are going to end up using them, rather than imposing on them.

The changing face of entrepreneurship

Ganesh Rasagam's picture


Members of the World Bank Group’s Innovation & Entrepreneurship team – along with two of the entrepreneurs supported by the team (with their affiliations in parentheses) – at the Global Entrepreneurship Summit. From left to right: Temitayo Oluremi Akinyemi, Loren Garcia Nadres, Natasha Kapil, Kenia Mattis (ListenMi Caribbean), Ganesh Rasagam, Charity Wanjiku (Strauss Energy), Komal Mohindra, Ellen Olafsen.


What do you picture when you hear of new technologies and hot startups? Perhaps a trendy office space overlooking the Golden Gate Bridge and tech moguls from San Francisco? Well, think again.

At the recent Global Entrepreneurship Summit (GES) in Silicon Valley — an annual event hosted by President Barack Obama and attended by nearly 700 entrepreneurs — one message came across clearly: Great ideas come from anywhere. And, increasingly, they’re coming from talented entrepreneurs who are overcoming the odds in cities like Nairobi, Kenya or Kingston, Jamaica.

Increasing internet and mobile-phone access is bringing new opportunities to young entrepreneurs from developing countries. More than 40 percent of the world’s population now has access to the internet and, among the poorest 20 percent of households, nearly 7 out of 10 have a mobile phone.

Businesses that can take advantage of the widespread use of digital technologies are growing at double-digit rates — in Silicon Valley, as well as in emerging markets. Ground-breaking technologies and business ideas are flourishing across the world, and a new, more global generation of tech entrepreneurs is on the rise.
 
The potential impact — economic and social — is significant. Entrepreneurs have a powerful ability to create jobs, drive innovation and solve challenges, particularly in developing economies, where technology can address old inefficiencies in key sectors like energy, transport and education.
 
“[I]n our era, everybody here understands that new ideas can evolve anywhere, at any time. And they can have an impact anywhere,” said John Kerry, the U.S. Secretary of State. “In my travels as Secretary, I have been absolutely amazed by the groundbreaking designs I’ve seen, by the ideas being brought to life everywhere — sometimes where you least expect it.  By the men and women striking out to create new firms with an idea of both turning a profit as well as improving their communities.”
 
But for many of the brightest minds in developing countries, entrepreneurship is not an easy path.

As President Obama said during the Summit: “It turns out that starting your own business is not easy. You have to have access to capital. You have to meet the right people. You have to have mentors who can guide you as you get your idea off the ground. And that can be especially difficult for women and young people and minorities, and others who haven’t always had access to the same networks and opportunities.”


President Barack Obama on stage at the Global Entrepreneurship Summit with Mark Zuckerberg and entrepreneurs.
 

Keeping pace with digital disruption: Regulating the sharing economy

Cecile Fruman's picture
Globalization in the 21st century is increasingly driven by digitization, as is described in new research by the McKinsey Global Institute. MGI's recent report notes that, since 2007, trade flows have slowed and financial flows have not fully recovered while digital information flows have soared. [See Footnote 1.]

The World Economic Forum describes this transformation as the “Fourth Industrial Revolution,” because the speed and extent of disruption is unprecedented.

A key trend of this revolution is the emergence of technology-enabled, peer-to-peer and business-to-peer platforms that facilitate commerce. These platforms – most commonly referred to as the “sharing economy” or the “collaborative consumption economy” – have grown exponentially in recent years, disrupting existing industry structures and value chains in developed and emerging markets.

Notably, growing internet and mobile penetration catalyzed the growth of disruptive firms and innovations, such as Uber and Airbnb, in a number of middle-  and low-income countries. However, as highlighted by the 2016 World Development Report, for this digital revolution to be inclusive, and for it produce dividends for the poor, its “analog complements” – such as the institutions that are accountable to citizens and the regulations that enable workers to access and leverage this new economy – should also be in place.

The global proliferation of these collaborative platforms poses new challenges for regulators trying to keep pace with rapidly evolving business models. This issue was at the heart of discussions between former Head of Public Policy at Facebook, Uber and DJI, Corey Owens, and Professor of Law at Howard University and former regulator at the Federal Trade Commission, Andy Gavil, at the 2016 Business Environment Forum that took place in Washington from May 17 to 19.
 




 

Blockchain technology: Redefining trust for a global, digital economy

Mariana Dahan's picture



a longer version of this blog post is available on the
MIT Media Lab’s Digital Currency Initiative platform

With Google Trends data showing that searches for the word “blockchain” have exponentially increased, we may be entering the peak of the hype cycle for blockchain and distributed ledger technology.

But here’s the thing: the blockchain is a major breakthrough. That’s because its decentralized approach to verifying changes in important information addresses the centuries-old problem of trust, a social resource that is all too often in short supply, especially amid the current era’s rampant concerns over the security of valuable data. It turns out that fixing that can be a boon for financial inclusion and other basic services delivery, helping to achieve the global objectives laid out in the Sustainable Development Goals (SDGs).

Sorting out hype from reality may depend on how well we identify where institutions that have until now played a role in mediating trust between people are falling short, especially in the key area of money. Deploying the blockchain in those settings to generate secure, decentralized trust could achieve great strides in inclusion and innovation.

What do we mean by decentralized trust? The concept is unfamiliar in part because its converse -- centralized trust – is something that we often take for granted, at least while it’s working. But if we look at the history of transactions since the early barter systems to modern-day digital money exchanges, we can see how different trust protocols for keeping track of our exchanges of value have evolved and how, in each case, centralizing trust within particular institutions has periodically caused problems.

As strategies for dealing with this challenge evolved and as the complexity and frequency of transactions grew, different trust bearers emerged. We went from relying on the memory and discretion of tribal leaders, to central governments issuing currencies in the form of precious metals, to commercial banks acting as trusted intermediaries and issuing their own bank notes, to central banks managing a hybrid system in which sovereign fiat banknotes circulate alongside a debt/credit form of money managed by regulated banks and internal ledgers.

Leadership for results

Ajay Tejasvi Narasimhan's picture
In my experience, when development practitioners are called in to help address a complex challenge, they are not alone. Every development project requires an implementation team – people working together to achieve development objectives and outcomes. Depending on the nature of the challenge, practitioners may work with government officials, staff from NGOs and CSOs, community leaders, sector specialists, and others. It, thus, becomes vitally important for members of these teams to understand one another and the stake each has in the project, the perspective from which they approach it, and their assumptions about it, their history with, and their commitment to it.
 
In addition, development professionals must become knowledgeable about the reality of the communities in which they work to avoid designing implementation plans that don’t always work out as intended. For example, we have all heard the stories of cook stoves or toilets that are introduced into communities, but are used as storage objects. This attention to personal, political, and social factors affecting project design and implementation is precisely what the Collaborative Leadership for Development Program helps operational teams achieve and maintain, to get desired results.
 
In the 2015 World Development Report on Mind, Society, and Behavior, the World Bank identifies three kinds of thinking we all do by reflex.
  • Thinking automatically, rather than carefully and deliberatively – we typically do not bring our full analytical prowess to bear on the issues and experiences of our daily lives;
  • Thinking socially, or in ways that are related to how others around us think – the influence of peer-pressure on our thought process is an example; and
  • Thinking with mental models generated by societal norms and the culture in which we live that tacitly influence how we perceive and think about our world.

These ways of thinking, research suggests, are implicit and fundamental and they shape human behavior, including interpersonal and collective interactions and decision making. This insight has enormous implications for our development work. If we do not account for and bring to the surface such social, cultural, and psychological realities in the design and implementation of projects, we can expect to be setting ourselves up for failure. Most challenges today are a complex mix of technical problems and behavioral or adaptive challenges.

Undeterred, Success Habits of Women in Emerging Economies with Rania Anderson

Enrique Rubio's picture

Rania Anderson talks about her book Undeterred, The Six Success Habits of Women in Emerging Economies. Rania walks us through the habits. 

  1. to be undeterred, not to give up in the face of obstacles;
  2. to prepare yourself with your confidence and courage, and externally through the skills;
  3. to be focus, having goals and plans;
  4. work and life integration;
  5. accelerate, taking the actions that propel you forward and advance and
  6. lead, from wherever you are and whatever you do.

For the book, Rania interviewed ordinary woman who in normal environments and circumstances are being successful. She purposefully wanted to showcase women from emerging economies who have overcome the challenges around them to build successful ideas. Rania wanted to share her findings and the ideas that apply for women in developing countries.

Undeterred

Part 1: Five principles to behavior change: Why don’t they use these toilets?

Marta Milkowska's picture
They were simply not used. A few dozen toilets constructed in a small village in India worked well, except the villagers were not using them. Some conversations later, researchers discovered what had been overlooked during the planning phases: the morning open defecation practice was the only social activity for local women, otherwise spending all their time under the guardianship of their husbands. It was the highlight of their day, the time when they could freely talk, laugh, and gossip without the constraint of men and their day to day life.

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