WorldBank IC4D Blog

Electricity and the internet: two markets, one big opportunity

4 days 16 hours ago
The markets for rural energy access and internet connectivity are ripe for disruption – and increasingly, we’re seeing benefit from combining the offerings.
 
Traditionally, power and broadband industries have been dominated by large incumbent operators, often involving a state-owned enterprise. Today, new business models are emerging, breaking market barriers to jointly provide energy access and broadband connectivity to consumers.
 
As highlighted in the World Development Report 2016, access to internet has the potential to boost growth, expand economic opportunities, and improve service delivery. The digital economy is growing at 10% a year—significantly faster than the global economy as a whole. Growth in the digital economy is even higher in developing markets: 15 to 25% per year (Boston Consulting Group).
 
To make sure everyone benefits, coverage needs to be extended to the roughly four billion people that still lack access to the internet. In a testing phase, Facebook has experimented with flying drones and Google has released balloons to provide internet to remote populations.
 
But as cool as they might sound, these innovations do nothing for the one billion people who still live off the grid… and don’t have access to the electricity you need to use the internet in the first place! The findings of the Internet Inclusion Summit panel which the World Bank joined recently put this nicely: “without electricity, internet is only a black hole”.
 
That’s why efforts to expand electricity and broadband access should go hand in hand: close coordination between the energy and ICT sectors is probably one of the most efficient and sensible ways of making sure rural populations in low-income countries can reap the benefits of digital development. This thinking is also reflected in a new generation of disruptive telecom infrastructure projects.
Anna Lerner

Who shares in the European sharing economy?

6 days 17 hours ago
Photo: SkyPics Studio/Shutterstock Data on the sharing economy (Uber, Airbnb and so on) are scarce, but a recent study estimates that the revenue growth of these platforms has been dramatic. In the European Union (EU), the total revenue from the shared economy increased from around 1 billion euros in 2013 to 3.6 billion euros in 2015. While this estimate may equal just 0.2% of EU GDP, recent trends indicate a continued, rapid expansion.

This is important, as the sharing economy has the potential to bring efficiency gains and improve the welfare of many individuals in the region.

This can also generate important disruptions.

While online platforms represent a small fraction of overall incomes, the share of individuals participating in these platforms is large in many European countries. For example, roughly 1 in 3 people in France and Ireland have used a sharing economy platform, while at least 1 in 10 have in Central and Northern Europe (see figure below).

At the same time, the share of the population that has used these platforms to offer services and earn an income is also significant, reaching 10% or more in France, Latvia, and Croatia. This means that at least one out of every ten adults in these countries worked as a driver for a ride-sharing platform such as Uber, rented out a room of his or her house using a peer-to-peer rental platform such as Airbnb, or provided ICT services through an online freelancing platform such as Upwork, to name a few examples.
Hernan Winkler

How can developing countries make the most of the digital revolution?

2 months 3 weeks ago

Also available in: French

Photo: Jonathan Ernst/World Bank Digital technologies have been transforming the global economy. Yet many countries have yet to experience the full developmental benefits of digital technologies, such as inclusive and sustainable growth, improved governance, and responsive service delivery. Given the magnitude of change in competitive advantage that digital technologies can confer on adopters, the risks of slow or poor adoption of these innovations can be dire for industries, governments, individuals, and nations. So, how can policy makers successfully harness the digital revolution for development? This is the motivation behind my new publication: Mastering Digital Transformation (Emerald, 2016).

From my long experience in development assistance, I saw how information poverty in its many forms has led to policy planning and management without facts, disconnected enterprises, inefficient markets, poor service delivery, disempowerment, corruption, and more. The ongoing ICT revolution has been long ignored in development thinking and practice. Development practitioners and ICT specialists remain disconnected. I studied the experiences of countries pursuing digital transformation, and captured key lessons and takeaways in several books.

Digital transformation is not a technological fix, a blueprint plan, a one-off event, or a one-size-fits-all strategy. Rather, it is a social learning process, sustained over time, involving diverse stakeholders. Its ultimate objective is to harness the global digital revolution to meet a country’s specific socio-economic priorities. This process is a marathon, not a sprint. It is driven by vision, leadership, innovation, learning, and partnerships among government, business, and civil society.
Nagy K. Hanna

Ten Principles on Identification for Sustainable Development

3 months 3 weeks ago
The global identification gap is a significant challenge for sustainable development. We hope the new Principles on Identification are an important step to closing it. 
 
In the modern world, many everyday transactions—such as opening a bank account, registering for school, activating a SIM card or mobile phone, obtaining formal employment, or receiving social transfers—require individuals to prove who they are. For the estimated 1.5 billion people in developing countries who lack proof of identity (World Bank data, 2016), this creates a serious obstacle for full participation in formal economic, social, and political life.  Like individuals, governments also need robust, secure identification systems to perform core state functions and administer many of the programs and services vital for development, including social transfers, education and healthcare, and emergency and disaster response.
 
Growing awareness of the need for more inclusive, robust identification systems has led to a global call to action, embodied in Target 16.9 of the Sustainable Development Goals (SDGs): “by 2030, provide legal identity for all, including birth registration”. As public attention is increasing, a number of successful initiatives from around the world have highlighted the development benefits of reliable identification systems.
Vyjayanti T Desai
Checked
1 hour 44 minutes ago
Subscribe to WorldBank IC4D Blog feed