Promoting gainful employment and enterprise development through the use of ICTs

1
Promoting gainful employment and enterprise
development through the use of ICTs

• UN Commission on Science and Technology
• Panel on Science and Technology Promotion, Advice
  and Application for the Achievement of the
  Millennium Development Goals

Bruno Lanvin Vienna, 27-29 October 2004
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IT and development

• Globalization
• Entrepreneurship, innovation and growth
• Efficiency and transparency
• Regulatory and legal framework
• Issues and challenges ahead

3
IT and development

• Globalization
• Entrepreneurship, innovation and growth
• Efficiency and transparency
• Regulatory and legal framework
• Issues and challenges ahead

4
Engines of globalization
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Four Ways of Being Global

Source Foreign Policy and A.T. Kearney
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Is Globalization Slowing Down ?
Globalization advanced briskly until
1997, when the financial crises that hit
various developing regions weakened
trade flows and undercut gains in
global integration. So why did overall
integration still increase during this
period? Simple Technology has
become the engine of globalization.
Technology factors
Percentage
of population online, number of
internet hosts per capita, and
number of secure servers per
capita
Non-technology factors
Trade
in goods and services, capital
flows, and personal contact.
Source Foreign Policy and A.T. Kearney
7
ICT and labour productivity growth
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IT and development

• Globalization
• Entrepreneurship, innovation and growth
• Efficiency and transparency
• Regulatory and legal framework
• Issues and challenges ahead

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Obstacles to entrepreneurship in DCs
Source World Development Report, 2005 (World
Bank)
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The 4 pillars of investment climate
Source World Development Report, 2005 (World
Bank)
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Finance infrastructure hinder business growth
12
Infrastructure cost can be reduced
Source World Development Report, 2005 (World
Bank)
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Growth, Innovation, Enterpreneurship
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The crucial role of innovation

• Technological innovation
• Disruptive vs incremental ?
• Individual vs collective
• Process innovation
• Non technological innovation
• Shifting value along the chain

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Competition and Innovation (1/2)
More influential firms innovate less
Source World Development Report, 2005 (World
Bank)
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Competition and Innovation (2/2)
More competitive pressure, more innovation
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IT and development

• Globalization
• Entrepreneurship, innovation and growth
• Efficiency and transparency
• Regulatory and legal framework
• Issues and challenges ahead

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Infrastructure not just public funding
Source World Development Report, 2005 (World
Bank)
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Telecommunications competition?
Competition in international calls is still
limited in much of the developing world
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IT and development

• Globalization
• Entrepreneurship, innovation and growth
• Efficiency and transparency
• Regulatory and legal framework
• Issues and challenges ahead

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Telecommunications regulation?
Competition/regulation vs (1) connection waiting
time, and (2) poor infrastructure
Source World Development Report, 2005 (World
Bank)
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New roles for governments
7.00
FIN
SWE
GER
USA
UK
CHL
AUT
CAN
HKG
NOR
DOM
FRA
SIN
6.00
ITA
SWI
POR
ICE
NET
First circle (top performers)
TAI
BRA
ELS
KOR
AUL
VEN
NWZ
DEN
ARG
BEL
SPA
BUL
SLK
ISR
EST
5.00
LUX
JAP
INI
PHI
HUN
JOR
Second circle (the contestants)
IRE
EGY
SRI
MLT
THA
CZE
GRE
PER
GUA
Facilitators
INO
4.00
JAM
PAN
URU
MEX
TUR
BOL
RUS
VIE
POL
CHN
LAT
ROM
ZIM
UKR
3.00
PAR
COS
LIT
SAF
NIC
COL
SLV
BAN
Third circle (ready or not)
NIA
TRI
ECU
Source World Economic Forum/INSEAD/infoDev
HON
2.00
MAU
8.00
2.00
3.00
4.00
5.00
6.00
7.00
Leaders
Note the Government variable of the GITR
index has been used as proxy for Government
leadership (x), whereas Competition in
telecoms has been used as an indicator of the
effectiveness of Governments as facilitators (y)
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The future of outsourcing ?

• In G-7 countries, 1-5 of active population could
  be affected (World Bank 1995)
• Maximum number of current jobs affected in US 14
  mn (Bardhan and Kroll 2003)
• Projected number of US services jobs outsourced
  by 2015 3.4 mn (Forrester 2004)
• In financial services alone, 2 mn jobs could be
  affected during the next 5 years (Deloitte
  Touche 2003)
• 70 of the biggest 1000 firms have not outsourced
  services jobs towards lower-cost countries
• Delayed cost-savings measured are estimated at
  20-40

Source World Investment Report, 2004 (UNCTAD)
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IT and development

• Globalization
• Entrepreneurship, innovation and growth
• Efficiency and transparency
• Regulatory and legal framework
• Issues and challenges ahead

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From e-readiness to poverty reduction
Economic value creation
Productivity path
Poverty eradication
MDGs time horizon
Employment/Empowerment
Value/wealth creation
Competitiveness
E-readiness
Information society path
Starting point on the e-maturity scale
Social cohesiveness
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MDGs goals and targets where is ICT?
Source Lanvin Qiang (2003)
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Achieving MDGs requires fresh thinking
Will MDGs be reached ? ( of developing
countries)
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From e-readiness to MDGs

Education

Health

Gender
Social

Environment
Empowerment
Economic
E
-
Economy
Achieving
E-Readiness
Empowerment
Maturity
MDGs
Economic Growth
Poverty reduction
Political
Empowerment
Partnership
Pro
-
poor Policies
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MDGs ICT can help
Reach
Externalities
Decoupling
Pervasiveness


Distance education Developing scientific research
networks Enhancing the efficiency and
effectiveness of education administration
x

Education
x

x

x


x




Facilitating remote consultation, diagnosis and
treatment Online medical training Disseminating
of public health messages and disease prevention
techniques Medical research collaboration,
including central izedmedical data base Improve
the efficiency of medical facility administration

x

x

Health
x

x


x

x

x

MDGs in Social Sectors
x



Gender
Communication in development and enforcement of
policies affecting the environment Raising
awareness and sharing knowledge on environmental
issues Enabling greater environmental
sustainability in other sectors Environmental
monitoring and res ource management and risk
mitigation

x

x

x

Environment

x


x

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MDGs and ICT from - to x (1/2)
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MDGs and ICT from - to x (2/2)
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A few strategic issues

• Globalization is becoming information-centric
  (competitiveness, efficiency, governance)
• Life-cycles of IT products is becoming
  shorter (gt lesser tolerance to procedural
  obstacles)
• Innovation and entrepreneurship (SMEs) are key to
  making full use of ICT for development
• Proper regulatory and legal frameworks have
  proved their power to bring prices down
  internally
• IT is being mainstreamed as a development tool
  (DOT Force, MDGs, WSIS)
• For many countries, MDGs will not be reached in
  the absence of fresh thinking
• (moving from a substraction to a
  multiplication mindset)

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Merci
blanvin_at_worldbank.org