DRAFT:NOT FOR QUOTATION OR CIRCULATION INTERNET for DEVELOPMENT World Development Report 2016 WORKING VERSION, JUNE,2015 www.worldbank.org/wdr2016
Benefits Framework Impact Explanations Policy 1 World Development Report 2016 WORKING VERSION, JUNE, 2015 www.worldbank.org/wdr2016
DRAFT:NOT FOR QUOTATION OR CIRCULATION 2 There are millions of reasons to like the internet IS ACCELERATING DEVELOPMENT ONE OF THEM? A DAY IN THE LIFE OF THE INTERNET 186 MILLION INSTAGRAM 152 MILLION 36 MILLION photos SKYPE AMAZON calls purchases 2.3 BILLION 8.8 BILLION GB of WEB 4.2 BILLION TRAFFIC 803 MILLION YOUTUBE GOOGLE TWEETS videos watched searches 207 BILLION EMAILS sent SOURCE:WDR 2016 team;http://un.internetlivestats.comlone-second/ (As compiled on May 29,2015) Benefits Framework Impact Explanations Policy
Benefits Framework Impact Explanations Policy 2 There are millions of reasons to like the internet IS ACCELERATING DEVELOPMENT ONE OF THEM? SOURCE: WDR 2016 team; http://www.internetlivestats.com/one-second/ (As compiled on May 29, 2015)
DRAFT:NOT FOR QUOTATION OR CIRCULATION The internet can be transformative: DIGITAL IDENTITY ++ch THE变NEW INDIAN EXPRESS Trafficking Victims see New life in Aadhaar By Daniel Thimmayya Published:30th March 2015 06:00 AM Last Updated:30th March 2015 10:57 AM Indians with digital identity: The New Indian Ex 850 MILLION COUNTING SOURCE:http://ww.newindianexpress.com/citieslchennailTrafficking- Victims-see-New-life-in-Andhaar/2015/03/30larticle2737396.ece Benefits Framework Impact Explanations Policy
Benefits Framework Impact Explanations Policy 3 The internet can be transformative: DIGITAL IDENTITY Indians with digital identity: 850 MILLION & COUNTING SOURCE: http://www.newindianexpress.com/cities/chennai/TraffickingVictims-see-New-life-in-Aadhaar/2015/03/30/article2737396.ece
DRAFT:NOT FOR QUOTATION OR CIRCULATION The internet can be transformative: DIGITAL MARKETPLACE ←bC 令ALIZILA China's Online Cowboy Rounds Up Buyers wto圆smg图ep6⊙日ua Number of small medium By Kerry Seed Apr 09.2011 1 12-00 PM enterprises on Tencent (Alibaba): 5 MILLION COUNTING SOURCE:http://oww.alizila.com/chinas-online-cowboy-rounds-buyers Benefits Framework Impact Explanations Policy
Benefits Framework Impact Explanations Policy 4 Number of small & medium enterprises on Tencent (Alibaba): 5 MILLION & COUNTING SOURCE: http://www.alizila.com/chinas-online-cowboy-rounds-buyers The internet can be transformative: DIGITAL MARKETPLACE
DRAFT:NOT FOR QUOTATION OR CIRCULATION 5 The internet can be transformative: DIGITAL PAYMENTS Number of mobile money accounts wvorldivide: 203 MILLION CoUNTING 0une2013) Where mobile money accounts outnumber bank accounts SOURCE:John Owens,Alliance for Financial Inclusion,June 2013. Benefits Framework Impact Explanations Policy
Benefits Framework Impact Explanations Policy 5 The internet can be transformative: DIGITAL PAYMENTS Number of mobile money accounts worldwide: 203 MILLION & COUNTING (June 2013) SOURCE: John Owens, Alliance for Financial Inclusion, June 2013. Where mobile money accounts outnumber bank accounts
DRAFT:NOT FOR QUOTATION OR CIRCULATION 6 How the internet affects development DECREASING MARKET AND NON-MARKET TRANSACTION COSTS ACCESS TO SERVICES BY THE POOR 0000 ○FINDING CUSTOMERS SENDING REMITTANCES 00000-0 PRE-INTERNET INTERNET TRANSACTIONS Inclusion Efficiency Innovation SOURCE:WDR 2016 Team Benefits Framework Impact Explanations Policy
6 Benefits Framework Impact Explanations Policy How the internet affects development DECREASING MARKET AND NON-MARKET TRANSACTION COSTS SOURCE: WDR 2016 Team
DRAFT:NOT FOR QUOTATION OR CIRCULATION 7 Organizing framework of the WDR The INTERNET Overcomes Augments Generates information barriers existing factors economies of scale INCLUSION EFFICIENCY INNOVATION SOURCE:WDR 2016 Team Benefits Framework Impact Explanations Policy
7 Benefits Framework Impact Explanations Policy Organizing framework of the WDR SOURCE: WDR 2016 Team
DRAFT:NOT FOR QUOTATION OR CIRCULATION 8 COMPETITION BETWEEN Innovation or divergence? Traditional 回yR Taxi OOLA ICT 4-6%of GDP Elance ODesk 1-2%of jobs Professional freelancer 15-20%of investment Services TaskRabbit Traditional airbnb Hotels ANALOG HomeAway ECONOMY DIGITAL ECONOMY Traditional 宝k》 Banks 到-rsn Traditional eX Universities coursera JUMIA Brick女 a Mortar Stores E2Abab22四 Traditional TransferWise SLOW REGULATORY Money DIGITAL xoom ADOPTION UNCERTAINTY MONOPOLY Transfer Agents ⑧ SOURCE:WDR 2016 Team Benefits Framework Impact Explanations Policy
8 Benefits Framework Impact Explanations Policy Innovation or divergence? SOURCE: WDR 2016 Team
DRAFT:NOT FOR QUOTATION OR CIRCULATION 9 Efficiency or polarization? DECLINE OF MIDDLE-SKILLED JOBS IN MANY DEVELOPING COUNTRIES +2.5 ☐High-skilled ■Middle-skilled ■Low-skilled +2.0 occupations occupations occupations Intensive in non-routine cognitive Intensive in routine cognitive Intensive in non-routine and interpsersonal skills and manual skills manual skills +1.5 +1.0 SVHS IN WAOIW +0.5 Share of middle-skilled 0.5 H jobs is falling in -l0 20of22 developing 1.5 countries 2.0 25 souddmud DISKDIDW puvuivyl vipul SOURCE:WDR 2016 Team based on ILO KLIM data.For China, the data come from the Population Census Benefits Framework Impact Explanations Policy
9 Benefits Framework Impact Explanations Policy DECLINE OF MIDDLE-SKILLED JOBS IN MANY DEVELOPING COUNTRIES SOURCE: WDR 2016 Team based on ILO KLIM data. For China, the data come from the Population Census Efficiency or polarization? Share of middle-skilled jobs is falling in 20 of 22 developing countries
DRAFT:NOT FOR QUOTATION OR CIRCULATION 10 Inclusion or control? CHANNELS IMPACT OUTCOMES Informing citizens H Automating tasks M GOVERNMENT M CAPABILITY Citizens feedback Provider management L Free and fair elections H SERVICE DELIVERY Informed voting M CITIZEN EMPOWERMENT Collective action L INCLUSION EFFICIENCY INNOVATION SOURCE:WDR 2016 Team,Pew Research Benefits Framework Impact Explanations Policy
10 Benefits Framework Impact Explanations Policy Inclusion or control? SOURCE: WDR 2016 Team, Pew Research Informing citizens H GOVERNMENT CAPABILITY Automating tasks M Citizens feedback M Provider management L Free and fair elections H CITIZEN EMPOWERMENT Informed voting M Collective action L CHANNELS IMPACT OUTCOMES SERVICE DELIVERY INCLUSION EFFICIENCY INNOVATION
