ICT FOR GREATER DEVELOPMENT IMPACTNEW WORLD BANK GROUP ICT STRATEGY

DISCUSSION WITH MEDEF

9 March 2012

New WBG ICT Strategy

CONNECT Scale up affordable access to broadband

TRANSFORM Scale up the Use of ICT to Transform Service Delivery and Promote Open and Accountable Development

INNOVATE Support ICT Innovation for jobs and competitiveness across economy

IMPLEMENT Do Business Differently

CONNECT:Impact of ICT Sector Reforms with Bank Group support

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faster than countries without such support” (IEG, 2011)What worked less well:Support to Universal Access Funds often superseded by market expansion

Mobile revolution triggered by reforms and private sector investment Past support and impact

Competition push

1995 2000 2005 20100

1

2

3

4

5

Mobile phone users in developing countries

(billion)4.7 bn

Focus on Broadband Going Forward

Africa:ICT infra contributed to 1% of per capita economic growth: half of growth acceleration over1990-2005 (AICD, 2010)

Broadband impact on growth

Clients are asking for support on next generation policy reforms Infra PPP business models

More private capital Increased certainty for

private investment

Strategy to Scale Up Support to Broadband

MIGA guarantees

WBG (WB, IFC, MIGA)support to PPPs

IFC financing• World Bank policy support• IFC advisory services• infoDev broadband toolkit

• World Bank policy support• IFC advisory services• infoDev regulatory handbook

- Low competition- Low penetration of services

Stage of Market

Development

Key IssuesPolitical risks

Need for catalytic PPPsfor backbone networks

Difficulty toaccess capital

Need for next-generation reforms

Need to open marketto competition

- High competition- High penetration of

services

INNOVATE - ICT for competitiveness and jobsTwo major opportunities

Impact of ICT Use on Firm Performance in Developing Countries

1. ICT for Innovation across Industries 2. IT industry development

Enterprises not using ICT

using ICT Differen

ceSales growth (%) 0.4 3.8 +750%Employment growth (%)

4.5 5.6 +24%

Profitability (%) 4.2 9.3 +113% Labor productivity ($, value added per worker)

5,288 8,712 +65%

~800

~160Estimated

Addressable marketEstimated penetrated

market 2010

Global IT-based Services market ($ billion)

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)

• High growth (40% CAGR) • Natural positive bias towards

youth and women employment

Strategy to Support ICT Innovation

Shared agenda with infoDev, FPD and Education regional units

Develop a skilled workforce aligned with industry requirement

Promote business incubation and entrepreneurship

Policies to support ICT innovation

Promote bottom-up/user-centric approach for ICT innovation

Selectivity based on country potential

TRANSFORM: Increasing Reach and Efficiency of Service Delivery across sectorsLargest ever delivery platform: 4.7 bn mobiles in developing countries

Climate ChangeTrade

GovernanceEn

ergy

AgricultureHe

alth

FinanceTransport

Chile: Taxes online (from 25 days to 12 hours)

India: Land Title Certificate (from 3-30 days to 5-30 min)

India: interstate check posts for trucks (from 30 min to 2 min)

Philippines: customs online (from 8 days to 2 days)

Kenya: m-payments (15 million users)

Rwanda: Reaching HIV/Aid patients (from <30% to over 70% treated at early stage)

Botswana: Quality reporting and m-payment of energy bills

Smart grids, water resource management, Early Warning system

WBG support: high volume but mixed results

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

ICT component in 1,300 out of 1,700 World Bank projects

Low success rate: 40% of projects do not achieve their objectives

4 projects

94 projects24 projects77 projects144 projects96 projects35 projects75 projects144 projects83 projects258 projects140 projects17 projects106 projects

Financial Management, Procurement

Energy and MiningSocial Development

WaterTransport

Urban DevelopmentEnvironment

Social ProtectionHealth, Nutrition and

Population

Financial, Private Sector Development

Agriculture and Rural Development

EducationEconomic Policy, Poverty

ReductionPublic Sector Governance

100%

56.3%58.5%58.8%64.9%70.1%71.4%72.1%78.3%78.3%81.4%85.9%89.5%98.1%

+ Small IFC and MIGA portfolio but growing

Tandale Citizen Mapping:Helping Prepare Urban Revitalization Project in Dar Es Salaam

August 2011 September 2011

TRANSFORMOpportunity for open and accountable development

Asset Mapping Service Validation

Using GPS cameras to monitor irrigation program in Afghanistan

TRANSFORMOpportunity for open and accountable development

Using mobile phones to obtain patient feedback on health

service delivery in Karnataka

Strategy to Scale up the use of ICT for Transformation

Promote open government and open data

Improve aid accountability (Mapping for Results, E-ISR+)

Use ICT Knowledge Platform to improve accountability in clients programs

Open and Accountable Development

Transformation of Service DeliverySector lending: focus on reach and efficiency of service delivery + private sectorCross-sector: enabling environment, shared IT services infrastructure, institutions

Implementation – Doing business differently

Intensifying collaborationinternally and with partners

Becoming a connector with externalexpertise (knowledge platform)

Promoting stronger cross-sector and cross-region leadership (ICT Leadership Group; ICTGET; replicating Africa business model)Focusing on staff skills development

Adopting selectivity lens

Developing Trust Fund programs: Broadband TA Facility; Transformation Project Preparation Facility

AFR, EAP, ECA, LCR, MNA, SARFPD, HD, PREM, SDNDEC, EXT, ISG, LEG, OPCS, WBI