World Development Report 2016

102724 A World Bank Group Flagship Report DIGITAL DIVIDENDS world development report Digital technologies are spreading rapidly, but digital dividends— the broader benefits of faster growth, more jobs, and better services—are not. If more than 40 percent of adults in ast frica Public Disclosure Authorized pay their utility bills using a mobile phone, why can’t others around the world do the same If  million entrepreneurs in hina—one third of them women—can use an e commerce platform to e­port goods to €‚0 countries, why can’t entrepreneurs elsewhere achieve the same global reach nd if India can provide uniƒue digital identifica tion to € billion people in five years, and thereby reduce corruption by billions of dollars, why can’t other countries replicate its success Indeed, what’s holding bac„ countries from reali…ing the profound and transformational effects that digital technologies are supposed to deliver †wo main reasons. ‡irst, nearly ˆ0 percent of the world’s population are still offline and can’t participate in the digital Public Disclosure Authorized economy in any meaningful way. Šecond, and more important, DIGITAL the benefits of digital technologies can be offset by growing ris„s. Štartups can disrupt incumbents, but not when vested interests and regulatory uncertainty obstruct competition and the entry of DIVIDENDS new firms. mployment opportunities may be greater, but not when the labor mar„et is polari…ed. †he internet can be a platform for universal empowerment, but not when it becomes a tool for state OVERVIEW control and elite capture. †he World Development Report 2016 shows that while the digital revolution has forged ahead, its “analog complements”—the regulations that promote entry and competition, the s„ills that enable wor„ers to access and then leverage the new economy, Public Disclosure Authorized and the institutions that are accountable to citi…ens—have not „ept pace. nd when these analog complements to digital investments are absent, the development impact can be disappointing. Žhat, then, should countries do †hey should formulate digital development strategies that are much broader than current information and communication technology ‘I†’ strategies. †hey should create a policy and institutional environment for technology that fosters the greatest benefits. In short, they need to build a strong analog foundation to deliver digital dividends to everyone, everywhere. Public Disclosure Authorized SKU 32984