1. ICT FOR GREATER DEVELOPMENT IMPACT NEW WORLD BANK GROUP ICT STRATEGY DISCUSSION WITH MEDEF 9 March 2012

2. 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

3. 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faster than countries without such support” (IEG, 2011) What worked less well: Support to Universal Access Funds often superseded by market expansion Mobile revolution triggered by reforms and private sector investment Past support and impact Competition push 4.7 bn

4. 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 growthClients are asking for support on  next generation policy reforms  Infra PPP business models  More private capital  Increased certainty for private investment

5. 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 Issues Political risks Need for catalytic PPPs for backbone networks Difficulty to access capital Need for next- generation reforms Need to open market to competition - High competition - High penetration of services

6. INNOVATE - ICT for competitiveness and jobs Two major opportunities Impact of ICT Use on Firm Performance in Developing Countries 1. ICT for Innovation across Industries2. IT industry development Enterprisesnot using ICT using ICT Difference Sales growth (%)0.43.8+750% Employment growth (%)4.55.6+24% Profitability (%)4.29.3+113% Labor productivity ($, value added per worker) 5,2888,712+65% ~800 ~160 Estimated Addressable market Estimated penetrated market 2010 Global IT-based Services market ($ 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

7. 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

8. TRANSFORM: Increasing Reach and Efficiency of Service Delivery across sectors Largest ever delivery platform: 4.7 bn mobiles in developing countries Climate Change Trade Governance Energy Agriculture Health Finance Transport 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

9. 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 projects 24 projects 77 projects 144 projects 96 projects 35 projects 75 projects 144 projects 83 projects 258 projects 140 projects 17 projects 106 projects Financial Management, Procurement Energy and Mining Social Development Water Transport Urban Development Environment Social Protection Health, Nutrition and Population Financial, Private Sector Development Agriculture and Rural Development Education Economic Policy, Poverty Reduction Public Sector Governance 100% 56.3% 58.5% 58.8% 64.9% 70.1% 71.4% 72.1% 78.3% 81.4% 85.9% 89.5% 98.1% + Small IFC and MIGA portfolio but growing

10. Tandale Citizen Mapping: Helping Prepare Urban Revitalization Project in Dar Es Salaam August 2011September 2011 TRANSFORM Opportunity for open and accountable development

11. Asset Mapping Service Validation Using GPS cameras to monitor irrigation program in Afghanistan TRANSFORM Opportunity for open and accountable development Using mobile phones to obtain patient feedback on health service delivery in Karnataka

12. 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 Delivery Sector lending: focus on reach and efficiency of service delivery + private sector Cross-sector: enabling environment, shared IT services infrastructure, institutions

13. Implementation – Doing business differently Intensifying collaboration internally and with partners Becoming a connector with external expertise (knowledge platform) Promoting stronger cross-sector and cross- region leadership (ICT Leadership Group; ICT GET; 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, SAR FPD, HD, PREM, SDN DEC, EXT, ISG, LEG, OPCS, WBI