Deepak Mishra Practice Manager, MFM GP - World...

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Can digital technology transform public administration?

Deepak Mishra Practice Manager, MFM GP

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We tend to either idolize the internet ….

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In the new century, liberty will spread by cell phone and cable modem.

I say this with almost complete seriousness. Almost all the problems we debated can be solved literally by more broadband connectivity in these countries. And the reason is, the broadband is how you address the governance issues, the information issues, the education issues, the personal security issues, the human right issues, and the women empowerment issues. …...

The richest 500 million [people] have way more money than the next six billion combined. You solve [inequality] by getting everyone online.

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… or demonize it…

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… or do both at the same time.

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If you want to liberate a society, all you need is the internet. (2011)

I was wrong….Today, I believe if we want to liberate society, we first need to liberate the internet. (2016)

Wael Ghonim(he helped sparked the Arab revolution in Egypt)

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Digital technologies are spreading rapidly, but digital dividends – growth, jobs & service delivery – are not. Why?

Could it be because we are too focused on the technology and too little on the incentives, capabilities, and rules governing its use?

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Benefits of digital technologies are massive…

SOURCE: Total Economy Database, Conference Board; and WDR 2016 team; Christoph Lakner and Branko Milanovic 2013; Bishop and Hoeffler 2014.

Business People’s lives Governments

INNOVATION EFFICIENCY INCLUSION

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… but so are the risks.

SOURCE: Total Economy Database, Conference Board; and WDR 2016 team; Christoph Lakner and Branko Milanovic 2013; Bishop and Hoeffler 2014.

Business People’s lives Governments

INEQUALITY CONTROLCONCENTRATION

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DIGITAL TECHNOLOGIES

INNOVATION EFFICIENCY INCLUSION

CONCENTRATION INEQUALITY CONTROL

Without strong analog complements, opportunities may turn into risks

What are those complements?

with complements

withoutcomplements

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SOURCE: Eurostat, circa 2014,.WDR 2016 Team

Scale without COMPETITION lower digital adoption and growing divergence

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Automation without SKILLS

SOURCE: World Bank. Data at http://bit.do/WDR2016-MapO_1.

risks of polarized labor markets and greater inequality

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Source: WDR team based on Bishop and Hoeffler (2014) data and Perceptions of Electoral Integrity data

Technology fosters inclusion, but also reinforces disparities

PARTICIPATION ELITE CAPTURE

Internet voting increased participation (Estonia 2005-15)

Participation is biased toward moreprivileged groups (Rio Grande do Sul, Brazil, 2011-12)

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Technology makes services efficient, but fails to scale up

EFFICIENCY FISCAL WASTE

More complaints were resolved more quicklyusing technology (Nairobi water utility)

6 out of 10 World Bank-funded ICT projects were less than satisfactory

SOURCE: WDR team, based on Polity IV 2015; UN 2014; Open Net Initiative 2013.

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SOURCE: WDR team, based on Polity IV 2015; UN 2014; Open Net Initiative 2013.

Information without ACCOUNTABILITY risks of greater state control and elite capture

CONTROLVOICE

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SOURCE: WDR 2016 team. For more details see figure 5.3 in the full Report.

Race between technology & COMPLEMENTS

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Technology: Digital adoption index - businesses, people and governments.

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SECTORAL NATIONAL GLOBAL

The WDR 2016 proposes policies at three levels

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SECTORALPOLICIES

Making internet access universal, affordable, open and safe

Mobile cellular subscriptions in the Horn of Africa

Divides persist between and within countries—in access and capability

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Analog foundations for a digital economy

SOURCE: WDR 2016 team.

NATIONALPRIORITIES

• Civil society and community involvement

• Traditional media

• Rewards and not sanctions

• Streamlining of procedures

• Improve interdepartmental cooperation

• Regulatory reforms

• PPPs for fee-based services

• Open systems and architecture

• Breakdown silos

• Learning from the private sector

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Matching technology to the quality of institutions

SOURCE: WDR 2016 team.

Monitarable? Scalable? Measurable?

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www.worldbank.org/wdr2016

The World Bank is to analog foundation, what Silicon Valley is to digital technology

The WBG seems fairly excited about digital technology• But still in an idolizing phase!• Divergent views and disaggregated effort.• Those who don’t read history are doomed to repeat it!

Connectivity + Complements Digital Dividends [C2D2]• Regulations that allow firms to connect and compete• Skills that leverage technology• Institutions that are accountable and capable

The payoff• Increasing digital dividends:

Faster growth, more jobs and better services

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www.worldbank.org/wdr2016