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ICT for Greater Development IMPACT New World Bank Group ict Strategy Discussion with MEDEF

ICT for Greater Development IMPACT New World Bank Group ict Strategy Discussion with MEDEF. 9 March 2012. New WBG ICT Strategy. CONNECT Scale up affordable access to broadband. INNOVATE Support ICT Innovation for jobs and competitiveness across economy.

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ICT for Greater Development IMPACT New World Bank Group ict Strategy Discussion with MEDEF

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  1. ICT for Greater Development IMPACTNew World Bank Group ict StrategyDiscussion with MEDEF 9 March 2012

  2. New WBG ICT Strategy CONNECT Scale up affordable access to broadband INNOVATE Support ICT Innovation for jobs and competitiveness across economy TRANSFORM Scale up the Use of ICT to Transform Service Delivery and Promote Open and Accountable Development IMPLEMENT Do Business Differently

  3. CONNECT:Impact of ICT Sector Reforms with Bank Group support Mobile revolution triggered by reforms and private sector investment Past support and impact • 410 non-lending TAs in 91 countries • 95 lending operations (incl 59 DPLs) • 8 IFC advisory mandates • 61 IFC projects • 13 MIGA guarantees “Countries with WBG support for ICT policy reform and investments increased competition and access to ICT services faster than countries without such support” (IEG, 2011) What worked less well:Support to Universal Access Funds often superseded by market expansion 4.7 bn Competition push

  4. Focus on Broadband Going Forward Broadband impact on growth Clients are asking for support on • next generation policy reforms • Infra PPP business models Africa:ICT infra contributed to 1% of per capita economic growth: half of growth acceleration over1990-2005 (AICD, 2010) • More private capital • Increased certainty for private investment

  5. Strategy to Scale Up Support to Broadband Key Issues MIGA guarantees Political risks WBG (WB, IFC, MIGA) support to PPPs Need for catalytic PPPs for backbone networks IFC financing Difficulty to access capital • World Bank policy support • IFC advisory services • infoDev broadband toolkit Need for next- generation reforms • World Bank policy support • IFC advisory services • infoDev regulatory handbook Need to open market to competition Stage of Market Development - High competition - High penetration of services - Low competition - Low penetration of services

  6. INNOVATE - ICT for competitiveness and jobsTwo major opportunities 1. ICT for Innovation across Industries 2. IT industry development • High growth (40% CAGR) • Natural positive bias towards youth and women employment Impact of ICT Use on Firm Performance in Developing Countries Global IT-based Services market ($ billion) ~800 ~160 Estimated Addressable market Estimated penetrated market 2010 • WBG impact limited to date • infoDev support to 20,000 MSMEs through 300 incubators • IFC support to skills development in 54 ICT Service companies • Recent WB skills development programs (ACCESS Nigeria: 3,000 students tested against int’l benchmark; MexicoFIRST: 10,000 students industry-certified)

  7. Strategy to Support ICT Innovation Develop a skilled workforce aligned with industry requirement Policies to support ICT innovation Promote business incubation and entrepreneurship Promote bottom-up/user-centric approach for ICT innovation Shared agenda with infoDev, FPD and Education regional units Selectivity based on country potential

  8. TRANSFORM: Increasing Reach and Efficiency of Service Delivery across sectors Largest ever delivery platform: 4.7 bn mobiles in developing countries Chile: Taxes online (from 25 days to 12 hours) Smart grids, water resource management, Early Warning system Governance & Social Development Governance Climate Change Botswana: Quality reporting and m-payment of energy bills Philippines: customs online (from 8 days to 2 days) Energy Trade India: interstate check posts for trucks (from 30 min to 2 min) Rwanda: Reaching HIV/Aid patients (from <30% to over 70% treated at early stage) Transport Health Finance Agriculture Kenya: m-payments (15 million users) India: Land Title Certificate (from 3-30 days to 5-30 min)

  9. WBG support: high volume but mixed results Financial Management, Procurement 4 projects 100% Public Sector Governance 106 projects 98.1% ICT component in 1,300 out of 1,700 World Bank projects Low success rate: 40% of projects do not achieve their objectives Economic Policy, Poverty Reduction 17 projects 89.5% + Small IFC and MIGA portfolio but growing • Low performance comparable to benchmark on IT spending (50-70% success rate in public and private IT sector projects) • Lack of IT expertise in project teams • Procurement not adapted • Lack of capacity in government Education 140 projects 85.9% Agriculture and Rural Development 258 projects 81.4% Financial, Private Sector Development 83 projects 78.3% Health, Nutrition and Population 144 projects 78.3% Social Protection 75 projects 72.1% Environment 35 projects 71.4% Urban Development 96 projects 70.1% Transport 144 projects 64.9% Water 77 projects 58.8% Social Development 24 projects 58.5% Energy and Mining 94 projects 56.3%

  10. TRANSFORMOpportunity for open and accountable development Tandale Citizen Mapping:Helping Prepare Urban Revitalization Project in Dar Es Salaam August 2011 September 2011

  11. TRANSFORMOpportunity for open and accountable development Asset Mapping Service Validation Using mobile phones to obtain patient feedback on health service delivery in Karnataka Using GPS cameras to monitor irrigation program in Afghanistan

  12. Strategy to Scale up the use of ICT for Transformation Open and Accountable Development Promote open government and open data Use ICT Knowledge Platform to improve accountability in clients programs Improve aid accountability (Mapping for Results, E-ISR+) Transformation of Service Delivery Sector lending: focus on reach and efficiency of service delivery + private sector Cross-sector: enabling environment, shared IT services infrastructure, institutions

  13. Implementation – Doing business differently Intensifying collaboration internally and with partners Becoming a connector with external expertise (knowledge platform) Promoting stronger cross-sector and cross- region leadership (ICT Leadership Group; ICT GET; replicating Africa business model) AFR, EAP, ECA, LCR, MNA, SAR FPD, HD, PREM, SDN DEC, EXT, ISG, LEG, OPCS, WBI Focusing on staff skills development Adopting selectivity lens Developing Trust Fund programs: Broadband TA Facility; Transformation Project Preparation Facility

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