ict for greater development impact new world bank group ict strategy discussion with medef 9 march...
TRANSCRIPT
ICT FOR GREATER DEVELOPMENT IMPACT
NEW WORLD BANK GROUP ICT STRATEGY
DISCUSSION WITH MEDEF
9 March 2012
New WBG ICT Strategy
CONNECT Scale up affordable access to broadband
TRANSFORM Scale up the Use of ICT to Transform Service Delivery and Promote Open and Accountable Development
INNOVATE Support ICT Innovation for jobs and competitiveness across economy
IMPLEMENT Do Business Differently
CONNECT:Impact of ICT Sector Reforms with Bank Group support
410 non-lending TAs in 91 countries
95 lending operations (incl 59 DPLs)
8 IFC advisory mandates 61 IFC projects 13 MIGA guarantees“Countries with WBG support for ICT policy reform and investments increased competition and access to ICT services faster than countries without such support” (IEG, 2011)
What worked less well:Support to Universal Access Funds often superseded by market expansion
Mobile revolution triggered by reforms and private sector investment Past support and impact
Competition push
1995 2000 2005 20100
1
2
3
4
5
Mobile phone users in developing countries
(billion)4.7 bn
Focus on Broadband Going Forward
Africa:ICT infra contributed to 1% of per capita economic growth: half of growth acceleration over1990-2005 (AICD, 2010)
Broadband impact on growth
Clients are asking for support on next generation policy reforms Infra PPP business models
More private capital Increased certainty for
private investment
Strategy to Scale Up Support to Broadband
MIGA guarantees
WBG (WB, IFC, MIGA)support to PPPs
IFC financing
• World Bank policy support• IFC advisory services• infoDev broadband toolkit
• World Bank policy support• IFC advisory services• infoDev regulatory handbook
- Low competition- Low penetration of services
Stage of Market
Development
Key Issues
Political risks
Need for catalytic PPPsfor backbone networks
Difficulty toaccess capital
Need for next-generation reforms
Need to open marketto competition
- High competition- High penetration of
services
INNOVATE - ICT for competitiveness and jobsTwo major opportunities
Impact of ICT Use on Firm Performance in Developing Countries
1. ICT for Innovation across Industries
2. IT industry development
Enterprises not using ICT
using ICT Differen
ce
Sales growth (%) 0.4 3.8 +750%
Employment growth (%)
4.5 5.6 +24%
Profitability (%) 4.2 9.3 +113%
Labor productivity ($, value added per worker)
5,288 8,712 +65%
~800
~160
Estimated Addressable market
Estimated penetrated market 2010
Global IT-based Services market ($ billion)
WBG impact limited to date• infoDev support to 20,000 MSMEs through 300 incubators• IFC support to skills development in 54 ICT Service companies• Recent WB skills development programs (ACCESS Nigeria: 3,000
students tested against int’l benchmark; MexicoFIRST: 10,000 students industry-certified)
• High growth (40% CAGR) • Natural positive bias towards
youth and women employment
Strategy to Support ICT Innovation
Shared agenda with infoDev, FPD and Education regional units
Develop a skilled workforce aligned with industry requirement
Promote business incubation and entrepreneurship
Policies to support ICT innovation
Promote bottom-up/user-centric approach for ICT innovation
Selectivity based on country potential
TRANSFORM: Increasing Reach and Efficiency of Service Delivery across sectorsLargest ever delivery platform: 4.7 bn mobiles in developing countries
Climate ChangeTra
de
Governance
Energ
y
AgricultureH
ealt
h
FinanceTra
nsp
ort
Chile: Taxes online (from 25 days to 12 hours)
India: Land Title Certificate (from 3-30 days to 5-30 min)
India: interstate check posts for trucks (from 30 min to 2 min)
Philippines: customs online (from 8 days to 2 days)
Kenya: m-payments (15 million users)
Rwanda: Reaching HIV/Aid patients (from <30% to over 70% treated at early stage)
Botswana: Quality reporting and m-payment of energy bills
Smart grids, water resource management, Early Warning system
WBG support: high volume but mixed results
Low performance comparable to benchmark on IT spending (50-70% success rate in public and private IT sector projects)
Lack of IT expertise in project teams Procurement not adapted Lack of capacity in government
ICT component in 1,300 out of 1,700 World Bank projects
Low success rate: 40% of projects do not achieve their objectives
4 projects
94 projects
24 projects
77 projects
144 projects
96 projects
35 projects
75 projects
144 projects
83 projects
258 projects
140 projects
17 projects
106 projects
Financial Management, Procurement
Energy and MiningSocial Development
WaterTransport
Urban DevelopmentEnvironment
Social Protection
Health, Nutrition and Population
Financial, Private Sector Development
Agriculture and Rural Development
Education
Economic Policy, Poverty Reduction
Public Sector Governance100%
56.3%
58.5%
58.8%
64.9%
70.1%
71.4%
72.1%
78.3%
78.3%
81.4%
85.9%
89.5%
98.1%
+ Small IFC and MIGA portfolio but growing
Tandale Citizen Mapping:Helping Prepare Urban Revitalization Project in Dar Es Salaam
August 2011 September 2011
TRANSFORMOpportunity for open and accountable development
Asset Mapping Service Validation
Using GPS cameras to monitor irrigation program in Afghanistan
TRANSFORMOpportunity for open and accountable development
Using mobile phones to obtain patient feedback on health
service delivery in Karnataka
Strategy to Scale up the use of ICT for Transformation
Promote open government and open data
Improve aid accountability (Mapping for Results, E-ISR+)
Use ICT Knowledge Platform to improve accountability in clients programs
Open and Accountable Development
Transformation of Service DeliverySector lending: focus on reach and efficiency of service delivery + private sectorCross-sector: enabling environment, shared IT services infrastructure, institutions
Implementation – Doing business differently
Intensifying collaborationinternally and with partners
Becoming a connector with externalexpertise (knowledge platform)
Promoting stronger cross-sector and cross-region leadership (ICT Leadership Group; ICTGET; replicating Africa business model)Focusing on staff skills development
Adopting selectivity lens
Developing Trust Fund programs: Broadband TA Facility; Transformation Project Preparation Facility
AFR, EAP, ECA, LCR, MNA, SARFPD, HD, PREM, SDNDEC, EXT, ISG, LEG, OPCS, WBI