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World Development Report 2019

Social media beyond entertainment

Rong Chen's picture

Social media has flourished with increasing digital connectivity. Internet users in the Philippines, Brazil, Mexico, Argentina and the United Arab Emirates spend more than 3 hours per day on social media. Global social media platforms such as YouTube and WhatsApp as well as local ones such as Mxit, an instant messaging application in South Africa, and Odnoklassniki, the Russian version of Facebook, are attracting people's attention. The social interaction aspect of those communication initiatives redefines how individuals, business and government engage with each other.

Tax policy should recognize the true value of user data

Davida Connon's picture

The latest revelations regarding covert data sharing practices by large tech companies demand governments finally take action to curb the unwanted exploitation of user data. To date, attention has been focused on privacy regulation; governments would be well served to look at tax policy, too. Digital taxes would better align taxation rights with value creation in the digital economy. They might also serve to communicate the growing frustration with abusive data management practices by the biggest offenders.

Gig economy growth pains

Rong Chen's picture

The gig economy matches businesses to consumers through digital platforms. It serves local communities such as Tutorama, an Egyptian online platform connecting students with local private tutors. In Jordan, refugee women who have limited mobility are able to make a living by selling home-cooked dishes through Bilforon, a food-delivery platform. In 2018, more than five thousand women domestic workers earned income through SweepSouth, a home cleaning service platform in South Africa.

Digitizing to succeed in MENA

Federica Saliola's picture

The Middle East and North Africa region have some of the best educated, unemployed people in the world. High-skill university graduates currently make up almost 30 percent of the unemployed pool of labor in MENA, many of them women. In Tunisia, slightly more than half of the working age population is out of work, the vast majority being women. Part of the problem is that, despite some economic growth, not enough new jobs are being created.

Missing in action: Where is the “demand” for jobs when we prepare for jobs?

Federica Saliola's picture

Are robots, friends or foes of the future of work? Automation is eliminating some routine jobs but, on the positive side, robots are good partners for workers engaged in tasks that demand analytical, interpersonal, and creative skills, as well as manual physical skills involving dexterity.

Addressing tax avoidance

Davida Connon's picture

The OECD base erosion and profit shifting initiative, aimed at closing tax avoidance gaps in the international system, is meant to be inclusive. Today roughly two-thirds of the initiative’s members are emerging economies. Yet, as discussions expand to questions regarding who gets to tax what in the digital economy, it is becoming clear that the OECD is an unlikely forum for the task. Instead, institutions like the World Bank or the International Monetary Fund are the obvious conveners. These institutions have the global membership required for such decision-making.

Digital platforms in China

Rong Chen's picture

From the e-commerce site Taobao.com to the social media app WeChat, China has drawn global attention to its digital platform economy. A third of the top-200 digital platforms were born in China according to the Global Platform Survey 2016. They are also growing fast. A 2017 report published by Ali Research shows that the digital platform sector contributes to 10.5% of China’s GDP.

The jobs train now departing from platform ...

Federica Saliola's picture

We have been living with digital platforms for about a decade now and their impact on changing how we work is beginning to make itself felt. Even so, it merits much greater attention and investigation, but until now the spotlight has been trained firmly on robots and automation.

The rich can stop feeling guilty – and start paying taxes

Davida Connon's picture

Tax avoidance by the world’s wealthiest people and largest companies is widespread. The excuse is that such avoidance is legal. Rich individuals and corporations look for jurisdictions that have low or no tax on personal or corporate income, on dividends, on capital or R&D expenditure. They base their business activities there, at least for the purposes of taxation.

Corporate tax avoidance in an era of changing firms

Davida Connon's picture

It is widely accepted that corporate tax avoidance is commonplace, but experts disagree over the precise amount of tax that corporations successfully avoid. One estimate for 2012 suggests that 50 percent of all foreign income of multinationals is reported in jurisdictions with an effective tax rate below 5 percent; another suggests it’s more like 40 percent. The OECD estimates that governments worldwide are missing out on anything between four and ten percent of global corporate income tax revenue every year, or US$100–$240 billion. While the accounting varies, one fact is clear:  there is an unacceptable level of corporate tax avoidance, no matter how you do the math. 


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