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Where are the ‘Digital Dividends’ from the ICT revolution? The new World Development Report

Duncan Green's picture

© John Stanmeyer/National Geographic Creative. Used with the permission of John Stanmeyer/National Geographic Creative. Further permission required for reuse.Earlier this month I headed off for the London launch of the 2016 World Development Report, ‘Digital Dividends’. The World Bank’s annual flagship is always a big moment in wonkland, and there has been a lot of positive buzz around this one.

Here’s how the Bank summarizes its content (Frequently Asked Questions, pg. 5):

"What is the Report about? It explores the impact of the internet, mobile phones, and related technologies on economic development.

What are the digital dividends? Growth, jobs, and services are the most important returns to digital investments." (pg. 5)

How do digital technologies promote development and generate digital dividends? By reducing information costs, digital technologies greatly lower the cost of economic and social transactions for firms, individuals, and the public sector. They promote innovation when transaction costs fall to essentially zero. They boost efficiency as existing activities and services become cheaper, quicker, or more convenient. And they increase inclusion as people get access to services that previously were out of reach.

Why does the Report argue that digital dividends are not spreading rapidly enough? For two reasons. First, nearly 60 percent of the world’s people are still offline and can’t fully participate in the digital economy. There also are persistent digital divides across gender, geography, age, and income dimensions within each country. Second, some of the perceived benefits of the internet are being neutralized by new risks. Vested business interests, regulatory uncertainty, and limited contestation across digital platforms could lead to harmful concentration in many sectors. Quickly expanding automation, even of mid-level office jobs, could contribute to a hollowing out of labor markets and to rising inequality. And the poor record of many e-government initiatives points to high failure of ICT projects and the risk that states and corporations could use digital technologies to control citizens, not to empower them.

Education is the topic for the new World Development Report

Kaushik Basu's picture
Education is central to improving human welfare and to achieving the goals of eliminating extreme poverty and boosting shared prosperity.  Schooling was recognized as vital to achieving the MDGs, and it remains front and center in the SDGs.  Yet there has never been a World Development Report (WDR) on education.  

Digital IDs: A powerful platform for enhanced service delivery across all sectors

Mariana Dahan's picture
Lack of personal official identification (ID) prevents people from fully exercising their rights and isolates them socially and economically — voting, legal action, receipt of government benefits, banking, and borrowing are all virtually closed off. The widespread lack of ID in developing countries is a critical stumbling block to national growth.
 
Digital IDs can help provide access to
critical services, including health care.

Digital IDs, combined with the already extensive use of mobile devices in the developing world, offers a transformative solution to the problem — a simple means for capturing personal ID that can reach far more people, as well as and new, more efficient ways for government and business to reach and serve the population.
 
Given the importance of the topic, the 2016 World Development Report (WDR) includes a Spotlight on Digital Identity, which has been developed by the authors in collaboration with various stakeholders within and outside the World Bank Group.

The 2016 WDR — the World Bank's major analytical publication — aims to advance our understanding of how economic growth, equity of opportunity and public service delivery are being affected by rapid diffusion of digital technologies. This section in 2016 WDR focuses on critical aspects, such as benefits to developing countries and implementation arrangements for Digital ID programs.

What happens when the economics of everything meet the internet of things?

Miles McKenna's picture

What will digital innovation mean for trade and development? Source - RiderofthestormWhen we think of eradicating extreme poverty, most of us associate this idea with the provision of basic needs. Food. Water. Shelter. Some argue to include clean air, security, even access to basic healthcare and primary education. But what about access to the internet? Where does the internet fit into development?

This is one of the overarching questions put to the authors of the upcoming 2016 World Development Report: Internet for Development. It was also the topic of a recent roundtable discussion entitled Digital Trade: Benefits and Impediments here at the World Bank Group, where economists and development professionals, including representatives from the public and private sectors, sat down to discuss some of these issues in detail.

The conversation hinged on what the internet meant for trade, especially for online entrepreneurs in developing countries. The internet, in many ways, signifies innovation. How then can we ensure that individuals seeking to introduce their ideas to the world and tap into the global marketplace can best do so? Is this a question of infrastructure? Is it a question of regulation?

Here’s what the numbers tell us.

Human Nature is Not Always Rational- How Behavioral Science can Aid Development

Paolo Mefalopulos's picture

I am not sure if I was more surprised, glad, or excited to see the recent 2015 World Development Report published by the World Bank Group. Knowing well this institution, I admit I did not expect to see the day when it would acknowledge that human behavior is not necessarily guided by rational considerations and that behavior change is not a linear process and needs to reflect the complexity of factors affecting such process. The possibility that rational thought is not at the basis of every human action is something quite revolutionary, at least within the mainstream boundaries of economic discourse.

The WDR entitled “Mind, Society and Behavior” seems to suggest that economists might actually have something to learn from behavioural scientists! However, such concepts have been floating around for a quite some time. A handful of social scientists, development scholars, and practitioners have been exploring, advocating, and applying to a different degree principles, which are now illustrated in the WDR and applying approaches that promote human agency and facilitate social change.

A Matter of Trust: Governance and Service Delivery in the Time of Ebola

Hana Brixi's picture
WHO team are preparing to remove dead bodies of people who died from Ebola.
"WHO logistician Jose and team are preparing to remove dead bodies of people who died from Ebola." Source: WHO

Why do people  sick with the Ebola virus in West Africa avoid public hospitals?  Or, why do children not learn basic skills in schools despite significant public investment in education? 

In response to such situations, development specialists typically call for sector-wide reforms. And the design of such reforms draws on sector policy analysis and on the assessment of service delivery arrangements and capacity. Increasingly, since the 2004 World Development Report, sector reforms also seek to make teachers, health professionals and other service providers accountable to citizens and communities.

What have We Learned on Getting Public Services to Poor People? What’s Next?

Duncan Green's picture

Ten years after the World Development Report 2004, the ODI’s Marta Foresti reflects on the past decade and implications for the futureMarta Foresti

Why do so many countries still fail to deliver adequate services to their citizens? And why does this problem persist even in countries with rapid economic growth and relatively robust institutions or policies?

This was the problem addressed by the World Bank’s ground-breaking 2004 World Development Report (WDR) Making Services Work for Poor People. At its core was the recognition that politics and accountability are vital to improve services and that aid donors ignore this at their peril. Ten years on, these issues are still at the heart of the development agenda, as discussed at the anniversary conference organised jointly by ODI and the World Bank in late February.

As much as this was a moment to celebrate the influence of the WDR 2004 on a decade of development thinking and practice, it also highlighted just how far we have to go before every citizen around the world has access to good quality basic services such as education, health, water and electricity.

Three Changes to the Conversation on Service Delivery

Shanta Devarajan's picture

IN054S13 World Bank Back in 2003, when we were writing the 2004 World Development Report, Making Services Work for Poor People, we had no idea that it would spawn so much research, innovation, debate and changes in the delivery of basic services.  Last week, we had a fascinating conference, in collaboration with the Overseas Development Institute, to review this work, and chart the agenda for the coming decade.   Being a blogger, I wanted to speak about what WDR2004 got wrong, but some of my teammates suggested I should start by describing what we got right.  So here are three ways WDR2004 changed the conversation about service delivery (what we got wrong will be the next post).
 

A Lesson from Malala: Girls’ Education Pays Off

Sri Mulyani Indrawati's picture
Originally published on the World Bank 'Voices: Perspectives on Development' blog

 

When I heard the news last autumn that 15-year-old Malala Yousafzai of Pakistan had been shot simply for standing up for her right as a girl to get an education, I was horrified.

It also reminded me how lucky I was.

When I was offered a rare scholarship to study abroad, it wasn’t acceptable for me, as a young married Indonesian woman, to live apart from my husband. My mother laid out two options: Either he would join me, which meant giving up his job, or I had to decline the offer.

I know it was her way to advocate for my husband to support me, which he did without hesitation. We both went to the United States to complete our master’s degrees. I combined it with a doctorate in economics, and we had our first child, a daughter, while we both were graduate students.

A Lesson from Malala: Girls’ Education Pays Off

Sri Mulyani Indrawati's picture



When I heard the news last autumn that 15-year-old Malala Yousafzai of Pakistan had been shot simply for standing up for her right as a girl to get an education, I was horrified.

It also reminded me how lucky I was.

When I was offered a rare scholarship to study abroad, it wasn’t acceptable for me, as a young married Indonesian woman, to live apart from my husband. My mother laid out two options: Either he would join me, which meant giving up his job, or I had to decline the offer.

I know it was her way to advocate for my husband to support me, which he did without hesitation. We both went to the United States to complete our master’s degrees. I combined it with a doctorate in economics, and we had our first child, a daughter, while we both were graduate students.


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