. As we said in this month’s Global Economic Prospects report, for the first time since the financial crisis, the World Bank is forecasting that the global economy will be operating at or near full capacity. We anticipate growth in advanced economies to moderate slightly, but growth in emerging markets and developing countries should strengthen to 4.5% this year.
world development report
Over the past decades, education investments in the developing world have led to unprecedented enrollment rates. Yet, even with these historic investments, children sit in classrooms every day without learning. More than a schooling crisis, we face a learning crisis. Despite progress in countries as diverse as Vietnam, Colombia and Peru, millions of children leave school without knowing how to read a paragraph or solve a simple two-digit subtraction.
There is need for urgent action toward a global solution to leave no area behind because persistent spatial disparities in living standards can adversely affect national unity and social cohesion, foster political instability, and increase the risk of conflict. In identifying priorities, it is essential to remind ourselves that leaving no area behind is NOT equal to “doing the same everywhere.” And to advance on the lagging areas agenda, we must recognize that the heterogeneity of challenges across territories needs to be met with a heterogeneity of policy instruments. To leave no area behind, each local challenge needs to be matched with a specific set of policy instruments. Policies should seek unity, NOT uniformity.
Strengthening the link between research and policy for a combined agenda is critical. Georeferenced data provides a tremendous opportunity for analysis of risk factors. In East Africa, for example, the issue of lagging lands is addressed by work in high-risk and conflict-affected areas, by addressing the underlying drivers of vulnerability and by reducing exposure to hazards of people. In the Horn of Africa, the EU has successfully applied geographical targeting in cross-border areas across the region, collaboration across borders through specific actions, and a regional approach based on research and evidence. In Cali, Colombia, the “Territories of Inclusion and Opportunities,” a land-based strategy addressing multiple risk factors, has been a successful tool in combating poverty, exclusion and violence.
Earlier this month I headed off for the London launch of the 2016 World Development Report, ‘Digital Dividends’. The World Bank’s annual flagship is always a big moment in wonkland, and there has been a lot of positive buzz around this one.
Here’s how the Bank summarizes its content (Frequently Asked Questions, pg. 5):
"What is the Report about? It explores the impact of the internet, mobile phones, and related technologies on economic development.
What are the digital dividends? Growth, jobs, and services are the most important returns to digital investments." (pg. 5)
How do digital technologies promote development and generate digital dividends? By reducing information costs, digital technologies greatly lower the cost of economic and social transactions for firms, individuals, and the public sector. They promote innovation when transaction costs fall to essentially zero. They boost efficiency as existing activities and services become cheaper, quicker, or more convenient. And they increase inclusion as people get access to services that previously were out of reach.
Why does the Report argue that digital dividends are not spreading rapidly enough? For two reasons. First, nearly 60 percent of the world’s people are still offline and can’t fully participate in the digital economy. There also are persistent digital divides across gender, geography, age, and income dimensions within each country. Second, some of the perceived benefits of the internet are being neutralized by new risks. Vested business interests, regulatory uncertainty, and limited contestation across digital platforms could lead to harmful concentration in many sectors. Quickly expanding automation, even of mid-level office jobs, could contribute to a hollowing out of labor markets and to rising inequality. And the poor record of many e-government initiatives points to high failure of ICT projects and the risk that states and corporations could use digital technologies to control citizens, not to empower them.
Digital IDs, combined with the already extensive use of mobile devices in the developing world, offers a transformative solution to the problem — a simple means for capturing personal ID that can reach far more people, as well as and new, more efficient ways for government and business to reach and serve the population.
Given the importance of the topic, the 2016 World Development Report (WDR) includes a Spotlight on Digital Identity, which has been developed by the authors in collaboration with various stakeholders within and outside the World Bank Group.
The 2016 WDR — the World Bank's major analytical publication — aims to advance our understanding of how economic growth, equity of opportunity and public service delivery are being affected by rapid diffusion of digital technologies. This section in 2016 WDR focuses on critical aspects, such as benefits to developing countries and implementation arrangements for Digital ID programs.
When we think of eradicating extreme poverty, most of us associate this idea with the provision of basic needs. Food. Water. Shelter. Some argue to include clean air, security, even access to basic healthcare and primary education. But what about access to the internet? Where does the internet fit into development?
This is one of the overarching questions put to the authors of the upcoming 2016 World Development Report: Internet for Development. It was also the topic of a recent roundtable discussion entitled Digital Trade: Benefits and Impediments here at the World Bank Group, where economists and development professionals, including representatives from the public and private sectors, sat down to discuss some of these issues in detail.
The conversation hinged on what the internet meant for trade, especially for online entrepreneurs in developing countries. The internet, in many ways, signifies innovation. How then can we ensure that individuals seeking to introduce their ideas to the world and tap into the global marketplace can best do so? Is this a question of infrastructure? Is it a question of regulation?
Here’s what the numbers tell us.
I am not sure if I was more surprised, glad, or excited to see the recent 2015 World Development Report published by the World Bank Group. Knowing well this institution, I admit I did not expect to see the day when it would acknowledge that human behavior is not necessarily guided by rational considerations and that behavior change is not a linear process and needs to reflect the complexity of factors affecting such process. The possibility that rational thought is not at the basis of every human action is something quite revolutionary, at least within the mainstream boundaries of economic discourse.
The WDR entitled “Mind, Society and Behavior” seems to suggest that economists might actually have something to learn from behavioural scientists! However, such concepts have been floating around for a quite some time. A handful of social scientists, development scholars, and practitioners have been exploring, advocating, and applying to a different degree principles, which are now illustrated in the WDR and applying approaches that promote human agency and facilitate social change.
In response to such situations, development specialists typically call for sector-wide reforms. And the design of such reforms draws on sector policy analysis and on the assessment of service delivery arrangements and capacity. Increasingly, since the 2004 World Development Report, sector reforms also seek to make teachers, health professionals and other service providers accountable to citizens and communities.
Ten years after the World Development Report 2004, the ODI’s Marta Foresti reflects on the past decade and implications for the future
Why do so many countries still fail to deliver adequate services to their citizens? And why does this problem persist even in countries with rapid economic growth and relatively robust institutions or policies?
This was the problem addressed by the World Bank’s ground-breaking 2004 World Development Report (WDR) Making Services Work for Poor People. At its core was the recognition that politics and accountability are vital to improve services and that aid donors ignore this at their peril. Ten years on, these issues are still at the heart of the development agenda, as discussed at the anniversary conference organised jointly by ODI and the World Bank in late February.
As much as this was a moment to celebrate the influence of the WDR 2004 on a decade of development thinking and practice, it also highlighted just how far we have to go before every citizen around the world has access to good quality basic services such as education, health, water and electricity.