Information & Communication Technologies

Size: px
Start display at page:

Download "Information & Communication Technologies"

Transcription

1 World Bank Group Information & Communication Technologies Strategy Consultations 2011 CONNECT INNOVATE TRANSFORM

2 Objective ICT The World Bank Group is developing a new ICT Sector strategy. We seek views from stakeholders on where and how to focus our financial and advisory services ICTStrategy@worldbank.org 2

3 Mobile Banking Green Technology Phone Social Networking Smart Grids 3 Video on Internet 3

4 ICT Going Forward Largest Ever Delivery Platform: > 3 Billion Mobile Phones in Developing Countries 4

5 2001 ICT Sector Strategy

6 2001 Strategy Preliminary Assessment ICT Sector Reform Access to ICT ICT Applications Human Capacity Clear positive outcomes Promising pilots but unrealized potential 6

7 Sector Reform & Access to ICT: Clear Positive Outcomes ICT Sector reforms in > 100 countries (including >60 IDA countries) Outcomes: Large impact on economic growth US$ 30 billion private sector investment ( , 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 FDI 7

8 ICT Applications: Unrealized Potential but Promising Pilots Unrealized Potential Examples of Promising Pilots 70% 60% 50% 40% 30% 20% 10% 0% More than half of WB projects include active ICT components (US$ 7.7 billion, FY07) 0% 1% 2% 8% 11% 22% 40% 47% 55% 61% 51% % IFC: Bank: Mobile banking in South Africa Mobile health in Rwanda 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 QAG Assessment: Low quality of ICT components ICT inputs insufficient in most cases Focus on automation, recent focus on transformation 8

9 ICT Human Capacity: Promising Pilots, but not at scale ICT 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

10 Human Capacity and Innovation ICT Applications Sector Reform / Access to ICT WBG in ICT Sector: ICT 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 10

11 The ICT Sector in 2010

12 Trends in ICT Sector ICT 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 12

13 Market Gaps in ICT Sector ICT IN COVERAGE IN COST Total Telephone Lines To be Connected: 1.8 bn Developing Countries: 2.9 bn Average Monthly Lease Cost for a High Speed Internet Connection (2Mbps) $600 10x $400 More $ Developed Countries: 1.3 bn $0 Low Income Low- Mid Income Up-Mid Income High Income IN SERVICES Access to the Internet remains a challenge India: Rural versus urban teledensity Market for business information Latin America 2% Asia 8% IN CONTENT Middle East 1% Africa 0% Urban Rural % of global revenues 2007 (total market - US$89 billion) Europe 28% US & Canada 61%

14 Lessons Learned ICT 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 14

15 Proposed ICT Sector Strategy

16 Sector Reform Access to ICT Human Capacity ICT Applications Emerging Directions for the New Strategy ICT 2001 Strategy Emerging Directions Transform Innovate Connect 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

17 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) 17

18 Innovate: Promote innovation across the economy and grow local ICT industries Innovation at the Micro- Enterprise and SME level 300 incubators of ICT-enabled enterprises in over 80 developing countries supported by infodev 20,000+ enterprises creating over 220,000 jobs Ecosystem for Innovation and ICT Industry Development Stages of Enterprise Development Finance Start-up Growth Established Venture Capital Public Equity Markets Credit (Debt) Markets Policy, Infrastructure and Skills Policy and Regulation Infrastructure R&D and Skills INNOVATION AT THE GRASS ROOTS SME Development & Job Creation Young firms contribute to over 60% of job creation Over 80% of incubated SMEs stay in local communities 50 jobs created by an incubator client generate 25 in community 18

19 Transform: Increase Support to Leverage ICT Across All Sectors Cross-Sector Agenda Strategic Template Sector / Theme Outcomes Climate Change Infrastructure Human Development Governance Mobile and Other e-services Government Private Sector & NGOs Largest Ever Delivery Platform: > 3 Billion Mobile Phones In Developing Countries Foundations Back-end Applications (MIS, FMS, Procurement, etc.) Enabling Environment: Regulatory framework (sector-specific) Policies and standards Shared infrastructure Interoperability framework Cyber security Need for Sector/Theme Specific Strategies (Annexes) for Sector-Led Implementation 19

20 Working with partners: The etransform Initiative Fast-track implementation Project Development Facility Provide access to expertise COMPONENTS Leaders Network/P2P Community of Practice Knowledge Repository Spark interest Global Forum Showcase best in class projects/initiatives 20

21 Consultations

22 Consultations & Strategy Preparation ICT Internal and External Consultations for Strategy Preparation November 2010 March 2011 Strategy drafting November 2010 May 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 Internal Management Reviews Preliminary Board review June 2011 Global Consultations on Full Draft Strategy July 2011 Board Discussion September

23 Consultation Questions ICT Q1 WBG ROLE in Where do you think the help of the World Bank Group in the ICT sector in developing countries is most needed? Q2 NEEDS OF COUNTRIES Do the proposed priority issues connect, innovate and transform adequately address and balance the needs of countries? Q3 CONNECT What 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 INNOVATE Should the World Bank Group be active in the innovation space (ICT skills Development, SME job creation, IT-enabled industry development) and how? Q5 TRANSFORM How 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? Q6 SELECTIVITY Which 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? 23

24 Draft Outline for the Forthcoming Strategy Chapter 0 - Executive Summary Chapter 1 - Taking Stock Chapter 2 - Introducing the New Strategy Chapter 3 - Connect : Expand affordable access to voice, high-speed Internet and information networks Chapter 4 - Innovate : Use ICT for innovation across the economy and promote the growth of ICT industries Chapter 5 - Transform : Use ICT applications to transform how sectors operate and how public sector services are delivered for an increased development impact Chapter 6 - Implementation of the Strategy and the ICT Sector Results Framework Annex 01 ICT and Health Annex 02 ICT and Education Annex 03 ICT and Finance Annex 04 ICT and Investment Climate Annex 05 ICT and Public Financial Management Annex 06 ICT and Energy Annex 07 ICT and Agriculture, Food Security, and Water Resource Management Annex 08 ICT and Transport Annex 09 ICT and Climate Change and Environment Annex 10 ICT and Good Governance and Social Accountability Annex 11 ICT and Disaster Relief, Risk Management, and Mapping for Results Annex 12 Role of World Bank Group in Media Annex 13 Results Framework Annex 14 World Bank Regional Action Plans to Leverage ICT across Sectors