www.worldbank.org/ict/strategy [email protected] strategy consultations 2011 connect...
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www.worldbank.org/ict/[email protected]
Strategy Consultations 2011CONNECT • INNOVATE • TRANSFORM
CommunicationTechnologies
Information &
World Bank Group
ICTObjective
The World Bank Group is developing a new ICT Sector strategy.
We seek views from stakeholders on where and howto focus our financial and advisory services
www.worldbank.org/ict/[email protected]
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3
20102000
Phone
Smart Grids
Green Technology
Video on Internet
Social Networking
Mobile Banking
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ICT Going Forward
Climate Change
Ed
ucatio
n &
Health
Governance &
Social Develop.
Urb
an
Finance
Rur
al
Social Protection
Infrastructu
re
Largest Ever Delivery Platform:> 3 Billion Mobile Phones in Developing Countries
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ICT2001 Strategy Preliminary Assessment
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Sector Reform Access to ICT ICT Applications
Human Capacity
Clear positive outcomes Promising pilots but unrealized potential
ICTSector Reform & Access to ICT: Clear Positive Outcomes
• Sector reforms in > 100 countries (including >60 IDA countries)
• Outcomes: • Large impact on economic growth• US$ 30 billion private sector investment
(1997-2007, IDA countries)
• US$ 3.2 billion for 203 projects (US$1.8 billion in 32 IDA countries)
• Mobilized another US$ 1 billion• 225 million new mobile subscribers
• Recognized tools for telecom regulators and policy makers in other sectors eg ICT in Education
• Global network of business incubators innovative SMEs and job creation
• 38 Guarantees ~ US$ 1.3 billion for 21 projects (12 in Africa)
• Contributed to ~ US$6 billion FDI7
ICT Applications: Unrealized Potential but Promising Pilots
Examples of Promising Pilots
• IFC:– Mobile banking in South Africa– Mobile health in Rwanda
• Bank:– Ghana: e-Customs PPP– Afghanistan: Use of geo-referenced photos
for verification of project outputs– Sri Lanka: Satellite imagery for fisherman
communities– Tunisia & Ethiopia: Access to Internet for
disabled
Unrealized Potential
QAG Assessment: • Low quality of ICT components• ICT inputs insufficient in most cases• Focus on automation, recent focus on
transformation
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20060%
10%
20%
30%
40%
50%
60%
70%
0% 1% 2% 8%11%
22%
40%
47%
55%61%
51%
57%
More than half of WB projects include active ICT components (US$ 7.7 billion, FY07)
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ICTICT Human Capacity: Promising Pilots, but not at scale• Examples of promising projects and initiatives
– infoDev’s incubator network: 300 incubators supporting 20,000 + micro-enterprises and SMEs in over 80 countries
– WBI courses for policy makers– infoDev’s ICT in education toolkit– E-Development thematic group: 1,600 external members and > 300 internal
members– IFC: ~ 57,000 IT jobs created in 54 companies– World Bank: New Economy Skills for Africa Program in 8 African countries (especially
Kenya, Nigeria and Ghana)– World Bank: South-South knowledge exchange on IT industry development
However, not at scale and models not fully mature 9
ICTWBG in ICT Sector: 2000 - 2010
Sect
or R
efor
m /
Ac
cess
to IC
TIC
T Ap
plic
ation
sH
uman
Cap
acity
an
d In
nova
tion
• Sector reform: Bank active in 105 countries in last 10 years, infoDev’s regulatory toolkit and Open Access research• PPPs for backbone infrastructure: IFC-led EASSy Project (22 countries, 30 operators, 4 other DFIs) in Africa – Bank-led Regional
Communications Infrastructure Program (RCIP)• Wireless: IFC financing have so far contributed to 225 million mobile subs • Infrastructure: IFC financing for Shared towers (Turkey and Brazil); Bank support for rural infrastructure (India, Sri Lanka);• New broadband solutions: WiMax (Ukraine, Uruguay), Cameroon / Central Africa (Pipeline), West Africa (Electricity Transmission),
Broadband wireless (Afghanistan)
• Banking the unbanked: IFC support to m-banking - WIZZIT (South Africa), Digicel in Caribbean, Millicom; infoDev’s m-banking knowledge map and research
• e-Government: Bank support in Vietnam, Ghana, Mongolia, Kenya; IFC support to Sonda (Chile), IBS (Russia), Meteksan (Turkey), Chinasoft; infoDev’s egovernment toolkit
• e-Health: Investing in cellular-based health systems, Voxiva (Africa – LAC), health data management• Education: IFC support to Socket Works (Nigeria), new Bank-led ICT Skills development Initiative, infoDev’s ICT in education
toolkit in partnership with UNESCO• Partnerships and Knowledge: M-Banking Conference (GSM Assoc., DfID, CGAP), Industry Partnerships, Government
Transformation Initiative
• Supporting the growth of IT/IT enabled service industry: Bank’s support in Ghana, Mexico, Kenya, Sri Lanka; infoDev’s research on ITES industry and IT parks
• Cellular Distribution Facility: IFC- financed working capital facility program offering local banks creditline to cellular distributors to buy bulk airtime aimed for retail market
• Supporting the development of an ICT-Enabled innovation network: Leveraging infoDev’s business incubator initiative, which provides financing and TA to over 300 incubators for 20,000 MSME businesses in over 80 countries
• Supporting the development of holistic ICT policy frameworks: Increasingly developing countries are recognizing the linkage between innovation and economic development and GICT is working with several countries
• Creating systems of innovations: DFID Low Carbon Innovation Centers, clean energy innovation centers
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ICTTrends in ICT Sector
• Growing role of high-speed internet in developing countries
• Information and content available at high-speeds on phones
• Mobile phones as the single largest service delivery platform in the world
• IT-enabled services industry an engine of growth and employment generation
• Convergence causing disruptions in government policies and business models
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ICTMarket Gaps in ICT Sector
IN COVERAGE
2002 2008
India: Rural versus urban teledensity
RuralUrban
Access to the Internet remains a challenge
IN SERVICES
IN COST
% of global revenues 2007(total market - US$89 billion)
US & Canada61%
Middle East1%
Latin America2%
Asia8%
Europe28%
Africa0%
Market for business information
IN CONTENT
$0
$200
$400
$600
Low Income
Low-MidIncome
Up-MidIncome
HighIncome
Average Monthly Lease Cost for a High Speed Internet Connection (2Mbps)
10x More
10x More
0
2
4
6
2000 2008
Total Telephone Lines
To be Connected: 1.8 bn
Developing Countries: 2.9 bn
Developed Countries: 1.3 bn
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ICTLessons Learned
• The role of private sector continues to be paramount
• The level of connectivity in client countries varies and requires a differentiated approach to ICT sector development in client countries
• Skills are a binding constraint in developing local IT-enabled service industries and supporting ICT applications
• ICT applications present high-risk, high-reward opportunities, and require selectivity and greater checks and balances
• IT coordination across sectors of government can help lower costs and create operational efficiencies
• Deliberate policies are needed to promote social inclusion and gender equality
• IT-enabled service industries are capable of creating opportunities for youth and women
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ICT
Transform Innovate
Connect
Emerging Directions for the New StrategySe
ctor
Ref
orm
Acce
ss to
ICT
Hum
an C
apac
ity
ICT
Appl
icati
ons
2001 Strategy Emerging Directions
CONNECT – Maintain a focus on the connectivity agenda with an emphasis on high-speed Internet
INNOVATE - Increase support for the use of ICT to unleash innovation across the economy and for the growth of local ICT industries
TRANSFORM – Scale up support to client countries to use ICT to transform all areas of the economy 16
Connect: Maintain Focus with an Emphasis on High-Speed Internet
ICT and Growth• 10% point increase in high-speed Internet
connections accounts for 15-25% of a country’s growth
Significant gaps remain in High-Speed Internet• Only 250 million subscribers in developing
countries• Private sector investments lagging behind
policy objectives
Areas of WBG Interventions• Continue reform agenda for more private
sector investment• Need for public-private partnerships• Public sector financing interventions ramping
up across country segments. Examples: Finland, Australia, Germany, USA, Russia, Brazil, Uganda, Ghana, Rwanda, etc.
Policy and Regulation
(WB, infoDev)
Private sector investments (IFC)
Guarantees (MIGA)
Catalytic public sector investments (WB)
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Policy and Regulation Infrastructure R&D and Skills
Ecosystem for Innovationand ICT Industry Development
Start-up Growth Established
Venture Capital Public Equity Markets
Credit (Debt) Markets
Stages of Enterprise Development
Finance
Policy, Infrastructure and Skills
• 300 incubators of ICT-enabled enterprises in over 80 developing countries supported by
infoDev • 20,000+ enterprises creating over 220,000 jobs
INNOVATION AT THE GRASS ROOTS
Innovation at the Micro-Enterprise and SME level
Innovate: Promote innovation across the economy and grow local ICT industries
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SME Development & Job Creation
Young firms contribute to over 60% of job creationOver 80% of incubated SMEs stay in local communities50 jobs created by an incubator client generate 25 in community
Transform: Increase Support to Leverage ICT Across All Sectors
Cross-Sector Agenda Strategic Template
Sector / Theme
Outcomes
Climate Change
Infra-structure
Human Develop-
ment
Gover-nance
Mobile and Other
e-Services Government Private Sector & NGOs
Back-end Applications (MIS, FMS, Procurement, etc.)
Enabling Environment:• Regulatory framework (sector-specific)
• Policies and standards• Shared infrastructure
• Interoperability framework• Cyber security
Foundations
Environment &Climate Change
Ed
ucatio
n &
Health
Governance &
Social Develop.
Urb
an
Finance
Rur
al
Social Protection
Infrastru
cture
Largest Ever Delivery Platform:> 3 Billion Mobile Phones In Developing Countries
Need for Sector/Theme Specific Strategies (Annexes) – for Sector-Led Implementation
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Working with partners: The eTransform Initiative
COMPONENTS
Fast-track implementation
Provide access to expertise
Spark interest
• Project Development Facility
• Leaders Network/P2P• Community of Practice• Knowledge Repository
•Global Forum•Showcase best in class projects/initiatives
ICTConsultations & Strategy Preparation
Internal and External Consultations for
Strategy Preparation
November 2010 – February 2011
Analytical Work• Broadband policy• ICT and Climate Change• Mobile applications for development• ICT for Innovation, ICT in Agric• AFR ICT-enabled Transformation,
AFR ICT in Health
Global Consultationson Full Draft
Strategy
July2011
Internal Management
Reviews
PreliminaryBoard review
June 2011
Board Discussion
September 2011
Strategy drafting
November 2010 – May 2011
www.worldbank.org/ict/strategy22
ICTConsultation Questions
Q6 SELECTIVITYWhich activities—lending, equity investments, guarantees, technical assistance, capacity building, research and
other analytical work, and the provision of public goods—are the most effective in supporting countries and what is the optimal mix of the activities?
Q1 WBG ROLEin Where do you think the help of the World Bank Group in the ICT sector in developing
countries is most needed?
Q2 NEEDS OF COUNTRIESDo the proposed priority issues – connect, innovate and
transform – adequately address and balance the needs of countries?
Q3 CONNECTWhat is the role of public sector
financing and the World Bank Group in advancing the connect
agenda and overcoming the gap in high-speed internet connectivity?
Q4 INNOVATEShould the World Bank Group be
active in the innovation space (ICT skills Development, SME job creation, IT-enabled industry
development) and how?
Q5 TRANSFORMHow could the World Bank Group
adequately support countries planning to use ICT to transform
their economies and the way governments deliver services to
citizens and businesses?
www.worldbank.org/ict/strategy
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