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In many parts of the world, the sharing economy is ever-present for individuals, allowing them to use personal assets—for example, houses and cars—to their fullest potential. If you plan to be away for a period of time, why not rent your space for a few extra bucks?
Such a phenomenon exists in infrastructure economics, where the level of asset utilization matters for end-cost. As more consumers use the same infrastructure more frequently, the unit cost for all consumers goes down. Recent projects combining expertise from the World Bank’s digital development and energy teams demonstrate this.
Information and Communication Technologies
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Critically constrained public resources on the one hand, and huge existing infrastructure needs for basic services on the other, make private participation in emerging markets and developing economies (EMDEs) not just critical, but in fact, imperative. Crowding in private finance is essential to spur economic development and meet the twin goals of shared prosperity and elimination of extreme poverty, as well as to achieve the Sustainable Development Goals.
The Private Participation in Infrastructure (PPI) Database, with data spanning over almost 27 years, has become a powerful tool and measure for gauging the level of private investment in infrastructure in EMDEs.
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A few years ago, I participated in a meeting to discuss best practices in Public-Private Partnership (PPP) regulation. There was no shortage of examples. In fact, PPP practitioners were eager to share their experiences from countries around the world, but we did not have a systematic way to make all that information accessible to policy makers. Moreover, at the time, I kept thinking that there were many more good examples beyond those we were sharing at the meeting.
The lack of systematic data on the quality of PPP regulation was a serious issue. What we needed was a comprehensive, systematic way to go beyond individual examples. How could we collect available information, organize it in a rigorous and systematic way, and make it all accessible to policy makers?
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Last week, the European Court of Auditors (ECA) published a report providing new, relevant evidence on public-private partnerships (PPPs). It addresses a small sample of PPP transactions, many of which were concluded in a period of financial crisis. Nevertheless, .
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The digital economy has emerged as a key driver of growth and development across the world. According to Huawei and Oxford Economics, it accounted for 15.5% of global GDP in 2016 and this share is expected to increase to 24.3% by the year 2020—growing 2.5 times higher than the overall growth of the global economy.
However, along with rapidly increasing digitization, we are witnessing an exponential increase in cyber risks. These have potentially huge financial impacts that could place entire economies and societies in jeopardy. Such threats now typically include privacy breaches, cyber fraud, denial-of-service attacks, and cyber extortion. There are many examples just within the last few years. For instance, a cyber attack on Ukraine’s power grid in 2015 caused serious power outages, and in 2016, the Central Bank of Bangladesh lost $81 million in a cyber heist. That same year, more than 3.1 billion records were leaked globally.
While traditional approaches such as establishing computer emergency response teams and national cyber security agencies are important, there is a need to engage more actively with both public and private entities through new institutional structures, new technologies, and new business models. Cyber risk insurance is one tool that can help address these challenges.
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디지털 경제는 최근 글로벌 경제의 성장과 발전의 핵심 동력으로 부상하였다. 화웨이(Huawei)와 옥스퍼드 이코노믹스(Oxford Economics)의 공동연구에 따르면, 디지털 경제는 2016년에는 전 세계 GDP의 15.5%를 차지하였으며, 2020년에는 세계 경제 성장율 보다 2.5배 더 빠르게 성장하여 그 비율이 24.3%까지 증가할 것으로 전망된다.
하지만, 글로벌 경제의 급속한 디지털화에 따른 성장의 이면에는 사이버 리스크의 기하급수적인 증가도 자리하고 있다. 다양한 사이버리스크가 현실화 된다면 막대한 경제적 손실 발생에 따른 관련 국가의 경제와 사회를 큰 혼란에 빠뜨릴 수도 있다. 주요한 사이버 위협으로는 개인정보유출, 사이버사기, 서비스장애 및 사이버협박 등이 있다. 최근 사례를 살펴보면, 2015년 우크라이나 변전소에 대한 사이버 공격으로 인한 대규모 정전사태와 2016년 방글라데시 중앙은행의 8,100만 달러 해킹 도난사례가 있다. 2016년 전세계적으로 한해에만 31억 건 이상의 기록이 유출된 것으로 파악된다.
각 국가 차원의 사이버 보안 기관 및 사이버사고 대응팀 설립 등 기존의 접근방식도 중요하지만, 공공 부문과 민간 부문이 공동으로 필요한 제도를 구축하고 최적의 기술을 활용할 수 있는 지속가능한 비즈니스 모델을 제시하는 새로운 솔루션이 필요한 시점이다. 사이버 리스크 보험은 이와 같은 과제를 해결하는 데 가장 적합한 해결책이다.
A major factor hindering infrastructure implementation and delivery is the absence of good governance, according to the 130 delegates from 27 countries who came together for the first Regional Roundtable on Infrastructure Governance in Cape Town in November.
There’s no denying infrastructure is crucial to Africa’s growth prospects. Nor can one ignore the ever-growing need for infrastructure on the continent—in Sub-Saharan Africa, only 35% of the population has access to electricity, and 23% still lack access to safe water and sanitation. Despite an estimated shortfall of nearly $100 billion in infrastructure investment in Africa, lack of financing is not the biggest problem.
The landmark Roundtable brought together representatives from African governments, the global private sector, multilateral and international organizations, civil society organizations and other development partners, for a discussion on the challenges and practical solutions to the governance impeding successful infrastructure delivery in Africa.
Recent conversations I have had about the value of regulation and private participation in telecoms has prompted me to do some quick calculations using the Caribbean as a test case. The results? Market reforms have had significant impacts in the region.
Reforms in the Caribbean began in the late 1980s although start times vary greatly across the region. Drives varied, including prompting by the World Bank Group, by the United States, and by potential private investors. Sometimes leading countries in the region served as examples for others to follow.
The largest Public-Private Partnership deal in Central America was recently highlighted at one of the world’s most prestigious universities during the Massachusetts Institute of Technology’s (MIT) 9th Annual Sustainability Summit. Under this year’s theme, Funding the Future, the event brought together more than 300 participants from students, startup CEOs, academia, think tanks and financial investors.
One of my favorite songs when I was growing up was John Lennon’s “Imagine.” A few months ago, UNICEF created a project around it to highlight the plight of millions of refugee children. As 2016 drew to a close, I couldn’t help but imagine a world with high-quality, affordable, sustainable, well-maintained infrastructure services for everyone.
I’m not sure a video of infrastructure projects set to “Imagine” would fire people up as much as the UNICEF video does. But there is value in reflecting on what we have accomplished in 2016, and what we might hope for and imagine in 2017, to bring this vision closer to reality for millions of people.
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