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From The World Bank Group Documents and Reports Archive
World Development Reports by The World Bank Group - the complete series
-----------------------------------------The Complete World Development Report Online

World Development Report Background Papers
World Development Report 2016
The Digital Dividends

   Complete Report 2016

Digital technologies have spread rapidly in much of the world. Digital dividends—the broader development benefits from using these technologies—have lagged behind. In many instances digital technologies have boosted growth, expanded opportunities, and improved service delivery. Yet their aggregate impact has fallen short and is unevenly distributed. For digital technologies to benefit everyone everywhere requires closing the remaining digital divide, especially in internet access. But greater digital adoption will not be enough. To get the most out of the digital revolution, countries also need to work on the “analog complements”—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.

“World Bank Group. 2016. World Development Report 2016 : Digital Dividends. Washington, DC: World Bank. © World Bank. License: CC BY 3.0 IGO.”


xiii Foreword
xv Acknowledgments
xix Abbreviations 1

Strengthening the analog foundation of the digital revolution 5
Digital transformations—digital divides 8
How the internet promotes development 11
The dividends: Growth, jobs, and service delivery 18
The risks: Concentration, inequality, and control 25
Making the internet universal, affordable, open, and safe 29
Analog complements for a digital economy 36
Global cooperation to solve global problems 38
Reaping digital dividends for everyone 38
Notes 39
References 42
Spotlight 1: How the internet promotes development 49

Part 1:
Facts and analysis 50

Chapter 1:
Accelerating growth 51
Connected businesses 55
More trade, higher productivity, and greater competition 70
Digital technologies can lead firms and countries to diverge 73
The nexus of technology and regulation 80
The future of markets 82
Notes 85
References 90
Sector focus 1: Agriculture 94
Spotlight 2: Digital finance 100

Chapter 2:
Expanding opportunities 101
Connected people 104
Creating jobs, boosting labor productivity, and benefi ting consumers 118
Labor market polarization can lead to greater inequality 120
The race between skills and technology 130
The future of jobs 135
Notes 138
References 146
Sector focus 2: Education 148
Spotlight 3: Social media 152

Chapter 3:
Delivering services 153
Connected governments 155
Greater state capability and citizen participation 171
Digital technologies too often fail to empower citizens 177
The gap between technology and institutions 181
The future of public services 181
Notes 183
References 190
Sector focus 3: e-health 194
Spotlight 4: Digital identity 199

Part 2: Policies 200

Chapter 4:
Sectoral policies 200
Making the internet universal, affordable, open, and safe 203
Shaping the digital economy 204
Supply-side policies: Availability, accessibility, and affordability 221
Demand-side policies: Open and safe internet use 228
Promoting the digital economy 232 Notes 235 References 240
Sector focus 4: Smart cities 244
Spotlight 5: The data revolution 248

Chapter 5:
National priorities 248
Analog foundations for a digital economy 249
The interdependence between technology and complements 253
Regulations: Helping businesses connect and compete 258
Skills: Making the internet work for everyone 272
Institutions: Connecting for a capable and accountable government 279
Digital safeguards 281
Notes 282
References 288
Sector focus 5: Energy 292

Chapter 6:
Global cooperation 292
Internet governance 297
Toward a global digital market 303
Leveraging information for sustainable development 317
Notes 318
References 322
Sector focus 6: Environmental management 326
Spotlight 6: Six digital technologies to watch

Select Indicators:
General notes
Classification of economies by region and income, FY2014
Table 1 Key indicators of development
Table 2 Key indicators of development for other economies
Table 3 Selected risk indicators
Table 4 Selected indicators related to risk management at the household level
Table 5 Selected indicators related to risk management at the enterprise sector level
Table 6 Selected indicators related to risk management at the financial sector level
Table 7 Selected indicators related to risk management at the macroeconomy level
Table 8 Natural disasters and climate change indicators
Table 9 Global temperature anomalies: Difference relative to 1951–80
Table 10 Aid commitments
Technical notes

Selected World Development Indicators (various years)

World Development Reports (complete series)
(in construction)

Related themes:
Related themes:
- Agrarian policies
- Agribusiness

- Aid
- Bureaucracy
- Debt
- Decentralization
- Dependency theory
- Development
- Development Economics
- Economic Policies
- Employment/Unemployment
- Foreign Direct Investment
- Gender
- Human Rights
- Human Development
- Hunger
- Inequality/social exclusion
- Informal sector
- International Trade
- Integrated International

- Labour Market
- Microfinance
- Migration
- Poverty
- Privatization
- State/Civil Society/

- Sustainable Development
- Transnational Corporations
- Urbanization

- Complete list of development themes