The Role of ICT in WBG Strategies and Priorities

Transcription

1 Mohsen Khalil, Director Global Information and Communications June 19, 2008 InfoDev Donors Committee Meeting 1 The Role of ICT in WBG Strategies and Priorities

2 Who we are Policy / Regulation Public Investments 2 A Comprehensive Global Practice offering a full range of services Technical Assistance Full Spectrum of Involvement Policy & Regulation Development Programs Multi Donor Knowledge Program Private Investments Investments

3 Our Vision To unleash the power of human capital and give opportunities to the poor through easy access to information 3

4 Impact of the Sector ICT s contribution to economic growth...and on investments Wireless economic impact, 2005 USD billions, percent % of GDP Telecom FDI versus Total FDI in SSA ( ) CHINA $108 5% End user surplus* Enterprise productivity Consumer Use $37 1.7% Telecom FDI, 20 Billion Indirect impact from non-operator players along value chain $47 2.2% Other FDI, 38 Billion Direct impact from operators $24 1.1% 1.3 Source: World Bank WDI (2007) Source: McKinsey & Co. 10% increase in teledensity contributes to 0.6% of GDP growth 35% of total FDI in SSA was from telecom 4

5 World Bank Group Activities The IFC has been a major financier with an outstanding record CIT commitments by business line ($US M) IT Media Over 225 million mobile subscribers as a result of IFC investments Central Asia, 14 East Asia, 21 MENA, 11 Eastern Europe, 8 Africa, Mobile 100 Latin America, 51 South Asia, 67 - Fixed Current portfolio: $1 billion Broadband Millions of subscribers directly linked to IFC investments 5

6 World Bank Group ICT Strategy Focus on 3 strategic themes 1. ACCESS Information Infrastructure 2. MAINSTREAMING Delivery of public / private services 3. INNOVATION ICT Enabled Industry / Entrepreneurship; Empowerment 6

7 Access: The Unfinished Agenda A lot of progress but market gaps remain 1. Coverage Total Telephone Lines 6 To be Connected: 2+ Billion 4 7 Billions Developing Countries: 2.5 B 2 2. Service Developed Countries: 1.5 B and the WBG has a major role to play 1 billion Market Driven 3. Cost Income 2 billion 3 billion 4 billion IFC 5 billion 4. Local Content WB Policy Driven 6 billion

8 Access: Gaps in Coverage 70% of the population covered but only 30% of the geography 100% 80% 60% 40% 20% 0% CHALLENGE WHAT ARE WE DOING? 1% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Universal Access Funds Community solutions Shared infrastructure Regulatory Toolkits and Training Geographic Coverage 8 Population Coverage 50% INDIA: Teledensity in urban vs rural areas 40% 30% 20% Urban teledensity Rural teledensity 10% 0%

9 Access: Gap in Services 40.0 CHALLENGE WHAT ARE WE DOING? Despite impressive growth in access to voice, access to the internet remains a challenge PPPs for backbone infrastructure: IFC-led EASSy Project, Bank-led RCIP, other projects in Africa and Indonesia x 15x more more internet internet users users New broadband solutions 20.0 Broadband networks on other infrastructure: Chad, Cameroon / Central African Republic, DRC Americas Europe LAC SSA (IDA) Internet Users / 100 PCs / 100 INDIA: 225 million mobile phones vs 15 million computers 9

10 Case Study: RCIP / EASSy Project InfoDev Funded initial feasbility study IFC Led EASSy Project with 22 countries, 30 operators, 5 DFIs in Africa World Bank $424 million Regional Connectivity Infrastructure Program Phase I: $164 million includes Kenya, Burundi and Madagascar Open to 25 countries in East and Southern Africa RCIP: Addressing Africa s Missing Link 10

11 Access: Gap in Cost CHALLENGE WHAT ARE WE DOING? Avg. Mobile Revenue / Minute $0.40 Investing in alternative operators $0.30 $ x More 10x More Reforming State Owned Enterprises $0.10 Implementing open access policies Shared networks Average Monthly Lease Cost for a High Speed Internet Connection (2Mbps) $600 Developing community solutions $400 10x More 10x More $200 $0 Low Income Low-Mid Income Up-Mid Income High Income 11 India Bangladesh Pakistan Peru Nigeria Angola East Timor Cost of 1 MB/month Bandwidth Eastern African Countries: $7,500 World Average: $ 200

12 Access: Gaps in Local Content CHALLENGE Relevance of Content to our Goals Almost 90% of the market for business information is in the North America and Europe Latin America 2% Asia 8% Middle East 1% Africa 0% Economic Development Increased employment opportunities, exports, competition, tax revenue; lower costs of doing business; and greater FDI Improved Governance / Transparency Freedom of expression on economic, political and social issues drives greater transparency and dialogue Europe 28% US & Canada 61% Cultural Exchange Local content and distribution outlets, greater outreach into the population, lower production costs, are creating more participatory forms of media. % of global revenues 2007 (total market - US$89 billion) 12

13 Tremendous Potential THE LARGEST DISTRIBUTION PLATFORM IN THE WORLD As of today: 3.5 Billion mobile subscribers 70% of the world population is covered by mobile In the next 15 minutes 15,000 people will be added 13

14 Mainstreaming: Leveraging the largest distribution platform in the world CHALLENGE WHAT ARE WE DOING? Access to formal financial services still a significant challenge 1 Billion have bank accounts 3.5 Billion mobile phones Mobile Banking Investing in stand-alone solution companies: WIZZIT, an m-banking company (South Africa) Piloting projects with operators and banks 2.5 Billion potential impact Partnerships and Knowledge: M-Banking Working Group (IFC, CGAP, InfoDev); Mobile Micro-Payment Systems (with GSM Assoc.); Knowledge Map of Micro- Banking in Africa (with DfID); M-Banking Conference (GSM Assoc., DfID, CGAP), Industry Partnerships 6.5 Billion World Population Other Applications Financial Sector: Investments in Marco Polo (Global), Fino (India), Egar (Russia) Total global remittances $250 billion Transaction costs as high as 25% 14

15 Mainstreaming: Transforming government & businesses CHALLENGE WHAT ARE WE DOING? 60 Interaction with government costs more in developing countries Days to import 2,500 US$ per container e-government Analytical work: infodev s e-government primers and PPP model frameworks OECD SSA 2,000 4x 1,500 4x longer At longer At more than more than 2x 2x 1,000 the the cost cost OECD SSA Ghana: Customs clearances went from 2-3 weeks to 1-2 days with a 50% increase in revenue after apply IT systems. India: $4.2 million in land records systems resulted in $18.3 million in annual savings (bribes) Korea: Investment of $80 million in e-procurement generated $2.7 billion in annual savings e-government policy frameworks and programs Private investments in IT companies providing e-gov services Sectoral e-applications Health: Investing in cellular-based health systems, Voxiva (Africa LAC), health data management Education: infodev s ICT in Education toolkits and regional surveys 15

16 Founded in 2001, Voxiva provides mobile information solutions, which enable users to collect and analyze real-time health data from the field, communicate and interact with their clients more effectively. Systems are now live in countries such as Peru, Argentina, Rwanda, Kenya, Indonesia, India and Nigeria. Case Study: VOXIVA infodev grant ($250,000) in 2002 Supported the successful piloting of a disease surveillance application in Peru IFC Investment in 2007 $5M investment to grow Voxiva s sales/delivery capacity for a wider market roll out 16

17 Access to financial services is costly and limited in Africa, particularly in rural areas. It is estimated that 40% of South Africa s 47 million people have little or no access to formal banking. Nearly 60% of South Africans do have mobile phones. The proliferation of cellular services created an opportunity to provide financial services over mobile networks. Case Study: WIZZIT infodev Research Published two reports on m-banking in 2006 Reports highlighted opportunities and areas for donor intervention IFC Investment in 2007 $1.8M to expand WIZZIT s operations in South Africa and regionally 17

18 Innovation: Enabling innovation through ICT CHALLENGE WHAT ARE WE DOING? Local innovation is a key driver of social and economic development SMEs 80% of the workforce employed by SMEs, in developing countries Grassroots innovation constrained 90% reported difficulty finding/retaining qualified staff 85% reported risk aversion in their community 85% reported insufficient access to private capital 80% reported lack of policy incentives to encourage new business creation Supporting the development of an ICT-Enabled innovation and entrepreneurs network: Leveraging infodev s business incubator initiativeand supporting other vehicles and policy initiatives. 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 (Results from infodev s Monitoring, Evaluation and Impact Assessment 2007) 18

19 Case Study: InfoDev Incubator Network Launched Launched in in Incubators Incubators in in countries countries 8,900+ 8,900+ start-ups start-ups (annually) (annually) 75% 75% of of their their clients clients continue continue to to operate operate three three years years after after graduating graduating 70% 70% of of the the incubators incubators have have leveraged their infodev leveraged their infodev grant to obtain additional grant to obtain additional funds funds ICT, ICT, Agri-business, Agri-business, Women, Women, Youth, Youth, Post- Post- Conflict Conflict and and SIDS SIDS Launched Launched the the first first global global network network of of business business incubators incubators 19

20 ICT Opportunity for All ICT Opportunity for All 20