Global expansion skewed towards the wealthy
WASHINGTON: A new World Bank report said that while the internet,
mobile phones and other digital technologies are spreading rapidly
throughout the developing world, the anticipated digital dividends of
higher growth, more jobs, and better public services have fallen short
of expectations, and 60 percent of the world's population remains
excluded from the ever-expanding digital economy.
According to the new 'World Development Report 2016: Digital
Dividends,' authored by Co-Directors, Deepak Mishra and Uwe Deichmann
and team, the benefits of rapid digital expansion have been skewed
towards the wealthy, skilled, and influential people around the world,
who are better positioned to take advantage of new technology. Though
the number of internet users worldwide has more than tripled since 2005,
four billion people still lack access to the internet.
"Digital technologies are transforming the worlds of business, work,
and government," said President of the World Bank Group, Jim Yong Kim.
"We must continue to connect everyone and leave no one behind because
the cost of lost opportunities is enormous. But for digital dividends to
be widely shared among all parts of society, countries also need to
improve their business climate, invest in people's education and health,
and promote good governance,"he said.
Although there are many individual success stories, the effect of
technology on global productivity, expansion of opportunity for the poor
and middle class, and the spread of accountable governance has so far
been less than expected. Digital technologies are spreading rapidly, but
digital dividends - growth, jobs and services - have lagged behind.
"The digital revolution is transforming the world, aiding information
flows, and facilitating the rise of developing nations that take
advantage of these new opportunities," said World Bank Chief Economist,
Kaushik Basu.
"It is an amazing transformation that today 40 percent of the world's
population is connected by the internet. While these achievements are to
be celebrated, this is also occasion to be mindful that we do not create
a new underclass. With nearly 20 percent of the world's population
unable to read and write, the spread of digital technologies alone is
unlikely to spell the end of the global knowledge divide," he said.
Digital technologies can promote inclusion, efficiency, and
innovation. Over forty percent of adults in East Africa pay their
utility bills using a mobile phone. There are eight million
entrepreneurs in China - one-third of them women - who use an e-commerce
platform to sell goods nationally and export to 120 countries. India has
provided unique digital identification to nearly one billion people in
five years, and increased access and reduced corruption in public
services. And in public health services, simple SMS messages have proven
effective in reminding people living with HIV to take their lifesaving
drugs.
To deliver fully on the development promise of a new digital age, the
World Bank suggests two main actions: closing the digital divide by
making the internet universal, affordable, open, and safe; and
strengthening regulations that ensure competition among business,
adapting workers' skills to the demands of the new economy, and
fostering accountable institutions - measures which the report calls
analog complements to digital investments.
Digital development strategies need to be much broader than
information and communication technology (ICT) strategies. To reap the
greatest benefits, countries must create the right environment for
technology: regulations that facilitate competition and market entry,
skills that enable workers to leverage the digital economy, and
institutions that are accountable to people. Digital technologies can,
in turn, accelerate the pace of development.
Over the past decade, the World Bank Group has invested US$12.6
billion in ICTs. |