The idea of “Inclusive growth” and how to achieve it was talked about a lot in the days ahead of the 2014 World Bank-IMF Annual Meetings. Among the solutions on the table was a new initiative that could help unlock billions of dollars for infrastructure and improve the lives of many.
About 1.2 billion people live without electricity and 2.5 billion people don’t have toilets. Some 748 million people lack access to safe drinking water. The Global Infrastructure Facility (GIF) announced by World Bank Group President Jim Yong Kim this week hopes to lower these numbers by developing a pipeline of economically viable and sustainable infrastructure projects that can attract financing.
Private Sector Development
This is the story of a country located next to the largest and most connected economic block in the world, with fairly low labor costs and a relatively well educated workforce. You would expect that country to do well. However, the state of Serbia’s economy is problematic. Today, Serbia’s output is below what it was in the 1980s (in the time of Yugoslavia) and only half of its working age population has a job in the formal sector.
At the heart of Serbia’s problems are two interconnected imbalances, which explain why the country appears to be stuck on its path to prosperity. First, the economy is running on domestic consumption, which was fueled by financial inflows since 2000, while exports remain well below potential. Second, employment is driven by the state, not the private sector, with almost half (45%) of all formal jobs in the government or State Owned Enterprises.
Earlier this month, the Government of Rwanda convened a “Smart Rwanda Days” conference, bringing together participants from seven countries. During the two-day event, attendees were asked to “take the pulse” of digital development across Africa – as well as within their own countries – and then set concrete roles and responsibilities for current members of the Smart Africa alliance (Burkina Faso, Mali, South Sudan, Rwanda, Kenya, Uganda, and Gabon). The event was co-sponsored by the International Telecommunications Union, the African Union and several private-sector companies.
- More on Smart Africa: http://www.worldbank.org/en/news/feature/2013/07/17/imagining-a-smart-country-Rwanda
- More on Smart Rwanda: http://smartrwandadays.rw/spip.php?rubrique1
- International Telecommunication Union
- information and communication for development (ICT4D)
- Information and Communication Technologies
- broadband policy
- Private Sector Development
- Public Sector and Governance
- Information and Communication Technologies
A former hotel owner in one of the region’s major cities, who wants to remain anonymous, tells a story that should have had a happy ending. Her 40-room hotel was doing well. It had built a reputation for excellent service. She decided to capitalize on her success and expand the business by adding a restaurant. This would have provided her with another revenue steam and allowed her to attract more customers, especially foreign tourists. Apart from expanding her business, the need for new kitchen and wait staff would have meant jobs for the local community. It would also have meant more business for local suppliers of everything from food to tablecloths.
With such a long list of potential benefits, who would want to stand in the way?
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By now, developing countries are exporting parts and components used in some of the most sophisticated products on the planet. With the rise of global value chains (GVCs), workers in these countries are no longer just assembling imported parts for local sale, as has been done for decades. They are now participants in international production networks – in factories that cross borders.
This change is significant for economic development, as we argue in our forthcoming book, “Making Global Value Chains Work for Development.” GVCs will also be the subject of a discussion by World Bank Group President Dr. Jim Yong Kim, World Trade Organization Director-General Roberto Azevêdo, General Electric Vice Chairman John G. Rice, and Colombia Minister of Finance and Public Credit Mauricio Cárdenas -- and moderated by World Bank Trade and Competitiveness Senior Director Anabel González -- on Friday at “Transforming World Trade: Global Value Chains and Development,” a flagship event of the World Bank-IMF Annual Meetings.
Over the past several years, I have attended many Open Data-related events in Washington, DC and elsewhere. But as far as I remember, no one has addressed the opportunities and potentials of Open Data for greater government accountability, citizen engagement, empowerment of the poor, and inclusive rural growth as speakers and presenters did in early September in Hyderabad, India.
Being transparent — through Open Data in this context — is an achievement itself. Transparency has been at the center of attention of the Open Data movement for some time. However, as many of us know, being open is a means to an end — the more important questions are what to open, as well as for what purpose, for whom and how.
On the morning of September 4, 2014, I was sitting in a packed conference room for a workshop with high-level government officials, members of the project implementation unit, civil society organizations, academics, IT firms, and media. We were all blown away by the opening speech delivered by the Honorable KT Rama Rao, Minister of IT and Rural Development for the Government of Telangana, one of India’s 29 states. This opening speech set the tone for the workshop on Open Data Solutions for Rural Development and Inclusive Growth.
Think Tanzania and you may imagine yourself in the plains of the Serengeti or the peaks of Mount Kilimanjaro. This week I was in Ruaha National Park, the second largest national park in all of Africa, but merely a blip on the tourist map. It is not just geographically large but ecologically rich and mega diverse – it has more than 1,400 species of plants and is home to abundant iconic wildlife species. Compare the tourism traffic: while Serengeti has 300,000 visitors annually, Ruaha has only 20,000 per year. Despite its share of nature’s bounty, Ruaha symbolizes a missed opportunity to be an engine of growth for Tanzania. By building an effective sustainable tourism policy, this reality could change fairly quickly.
Did you know 25% of economies covered by the 2014 Women, Business and the Law pilot indicator on protecting women from violence have no laws in place on domestic violence? The Women, Business and the Law dataset and report provide a breakdown of the legal framework affecting women’s ability to contribute to entrepreneurial and economic activity in 143 economies.
The report, which is fully available online for download as of today, covers legal differences that affect women’s economic empowerment including areas such as personal capacity, property, and employment legislation. For the first time, the report also includes data on violence against women legislation.
It is important that men are part of the discussion about the inequalities faced by women and girls around the world. The actor Emma Watson, in her speech on behalf of the HeForShe campaign at the United Nations this week, called on men to be part of the change. But the process of change should not stop there—around the world, women need enforceable legal protection and mechanisms that guarantee their rights.
Cities are becoming the new ecosystems for innovation. Recent studies on venture capital (VC) investment in the United States reveal that innovation is moving from suburbs to downtown areas. Today, San Francisco hosts more VC investment than Silicon Valley and New York – a city where the innovation startup scene was merely anecdotic 10 years ago – has become the third-largest technology startup ecosystem in the United States, with more than US$2.4 billion VC investment in 2011.
This trend is not unique to the United States. Start-ups are surging in other major cities around the world, including London, Berlin, Madrid, Moscow, Istanbul, Tel Aviv, Cape Town, Mumbai, Buenos Aires and Rio de Janeiro, to name a few.
New technology trends have reduced the cost of technology innovation. Cloud computing, open software and hardware, social networks and global payment platforms have made it easier to create a startup with fewer physical resources and personnel. If in the 1990s, an entrepreneur needed US$2 million and months of work to develop a minimum viable prototype, today she would need less than US$50,000 and six weeks of work (in some cases, these costs can be as low as US$3,000). This trend is allowing entrepreneurs to take advantage of cities’ agglomeration effects: entrepreneurs “want to live where the action is,” where other young people, social activities and peers and entrepreneurs are. They look for conventional startup support, such as mentor networks or role models, but also for nightlife, meet-ups, social activities and other potential for “collisions” – a combination best provided by cities.