World
Bank
Group
Information &
Communication
Technologies
Strategy Consultations 2011
CONNECT • INNOVATE • TRANSFORM
www.worldbank.org/ict/strategy
ICTStrategy@worldbank.org
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
www.worldbank.org/ict/strategy
ICTStrategy@worldbank.org
2
2000
2010
Green Technology
Mobile Banking
Phone
Social Networking
Email
Smart Grids
Video on
Internet
3
3
ICT Going Forward
Largest Ever
Delivery Platform:
> 3 Billion Mobile Phones
in Developing Countries
4
2001 ICT Sector Strategy
2001 Strategy
Preliminary Assessment
Sector Reform
Access to ICT
Clear positive outcomes
ICT
ICT
Applications
Human
Capacity
Promising pilots but
unrealized potential
6
Sector 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)
• 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
ICT
• 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
• 38 Guarantees ~ US$ 1.3 billion for 21
projects (12 in Africa)
• Contributed to ~ US$6 billion FDI
7
ICT Applications:
Unrealized Potential but Promising Pilots
Unrealized Potential
Examples of Promising Pilots
More than half of WB projects include active ICT
components (US$ 7.7 billion, FY07)
•
–
–
70%
61%
60%
55%
50%
47%
40%
57%
51%
40%
30%
•
10%
0%
1%
2%
8%
11%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
QAG Assessment:
•
Low quality of ICT components
•
ICT inputs insufficient in most cases
•
Focus on automation, recent focus on
transformation
Mobile banking in South Africa
Mobile health in Rwanda
Bank:
–
–
22%
20%
0%
IFC:
–
–
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
8
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
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ICT
ICT Applications
• 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
Human Capacity
and Innovation
Sector Reform /
Access to ICT
WBG in ICT Sector:
2000 - 2010
• 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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The ICT Sector in 2010
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
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Market Gaps in ICT Sector
ICT
IN COST
IN COVERAGE
Total Telephone Lines
6
To be Connected: 1.8 bn
Average Monthly Lease Cost for a High Speed Internet
Connection (2Mbps)
$600
10x
More
$400
4
Developing Countries: 2.9 bn
$200
2
Developed Countries: 1.3 bn
0
2000
2008
$0
Low
Income
Up-Mid
Income
LowMid
Income
IN CONTENT
IN SERVICES
Access to the Internet remains a challenge
Market for business information
India: Rural versus urban teledensity
Latin America
2%
Asia
8%
Middle
East
1%
Africa
0%
% of global revenues 2007
(total market - US$89 billion)
Urban
Rural
Europe
28%
2002
High
Income
2008
US & Canada
61%
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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
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Proposed ICT Sector Strategy
Emerging Directions for the New Strategy
Emerging Directions
ICT Applications
Human Capacity
Access to ICT
Sector Reform
2001 Strategy
ICT
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
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Connect:
Maintain Focus with an Emphasis on High-Speed Internet
ICT and Growth
Areas of WBG Interventions
•
•
10% point increase in high-speed Internet
connections accounts for 15-25% of a
country’s growth
Significant gaps remain in HighSpeed Internet
•
•
•
•
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.
Only 250 million subscribers in developing
countries
Private sector investments lagging behind
policy objectives
Policy and
Regulation
(WB, infoDev)
Private sector
investments (IFC)
Guarantees (MIGA)
Catalytic public sector
investments (WB)
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Innovate:
Promote innovation across the economy and grow local ICT industries
Ecosystem for Innovation
and ICT Industry Development
Innovation at the MicroEnterprise 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
Stages of Enterprise Development
Start-up
Growth
Established
Finance
Venture Capital
Public Equity
Markets
Credit (Debt)
Markets
Policy, Infrastructure and Skills
Policy and
Regulation
Infrastructure
R&D and Skills
SME Development & Job Creation
INNOVATION AT THE GRASS ROOTS
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
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Transform:
Increase Support to Leverage ICT Across All Sectors
Cross-Sector Agenda
Strategic Template
Sector /
Theme
Outcomes
Mobile and
Other
e-Services
Largest Ever
Delivery Platform:
Foundations
> 3 Billion Mobile Phones
In Developing Countries
Need for Sector/Theme Specific Strategies (Annexes) – for Sector-Led
Implementation
Climate
Change
Infrastructure
Government
Human
Development
Governance
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
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Working with partners:
The eTransform Initiative
Fast-track
implementation
• Project Development
Facility
• Leaders Network/P2P
• Community of Practice
• Knowledge Repository
COMPONENTS
Provide access to
expertise
Spark interest
•Global Forum
•Showcase best in class
projects/initiatives
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Consultations
Consultations & Strategy Preparation
ICT
Internal and External
Consultations for
Strategy Preparation
November 2010 – February 2011
Strategy drafting
November 2010 – May 2011
Analytical Work
•
•
•
•
•
Internal
Management
Reviews
Preliminary
Board review
Global
Consultations
on Full Draft
Strategy
July
2011
Board
Discussion
September
2011
June 2011
Broadband policy
ICT and Climate Change
Mobile applications for development
ICT for Innovation, ICT in Agric
AFR ICT-enabled Transformation,
AFR ICT in Health
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www.worldbank.org/ict/strategy
Consultation Questions
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?
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?
ICT
Q2 NEEDS OF COUNTRIES
Do the proposed priority issues – connect, innovate and
transform – adequately address and balance the needs of
countries?
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?
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www.worldbank.org/ict/strategy