World Development Report 2016: Digital Dividends

Description

The internet has spread rapidly. Development has not. But there are instances where technology can be transformational. A digital identification system such as India's Aadhar overcomes complex information problems to promote the inclusion of disadvantaged groups. Alibaba's business-to-business e-commerce platform reduces coordination costs to boost efficiency in China's economy. The M-Pesa digital payment platform exploits scale economies from automation to bring innovations to Kenya's economy. The full transformative potential of the internet, however, remains largely unrealized in most developing countries. The World Development Report 2016 explores why. It analyzes the internet's impact on economic growth, on social and economic opportunity, and on the efficiency of public service delivery. It explores the factors that have allowed some businesses, people, and governments to benefit greatly from the internet--and others not. For the internet to have greater impact everywhere and on everyone requires simultaneous investment in technology and its complements. The unfinished task of making the internet universally accessible and affordable remains an urgent policy priority. It also requires improving the "analog" complements to digital investments--by strengthening regulations that ensure competition among businesses, by adapting workers' skills to the demands of the new economy, and by ensuring that institutions are accountable. These measures involve policy reforms in the information and communication technology sector, in complementary sectors at the national level, and strengthening cooperation on the governance and use of the internet at the global level.