Mobile Communication literally transformed society as its outreach increased. Early 1985, when the first-generation mobile phones were introduced, the average handset price was about 1000 USD and with a cost of 45 cents/minute, only 200 thousand people could afford them at the very beginning. Then, economies of scale and other factors at play brought the costs down and in 2006 there were more than 2 billion mobile users in the word, for an average price of handset of 200 USD and around 8 cents/minute cost of calling. This marked the beginning of a new era – the” mobile entertainment anywhere” – with mobile communication enriched with data access, beyond usual voice calling. However, we are still far from an universal access to mobile communication and information. It’s only in 2010 that we started envisioning with confidence the “mobile for everyone” scenario, as the handset phone cost drops to as low as 40 USD for unsophisticated models and, most importantly, the cost for the mobile communication in many countries is not higher than 5 cents/minute (with outstanding exceptions in India where it is already lower than 2 cents/minute). Forecasts for end 2010 announce about 4.5 billion mobile users in the world.
Of the four billion mobile subscribers worldwide at the start of this year, more than two-thirds were in the developing countries. Mobile networks have a modular nature, which makes it relatively easy to start a new service and to expand as demand grows. This is particularly appropriate in the developing world. Indeed, the growth in the mobile sector in the developing world now exceeds that of the OECD area to the extent that it is developing countries that now lead. The United Arab Emirates was the first economy worldwide where mobile penetration exceeded 200 per cent. Even at a lower level, developing economies like Jamaica, Gabon, or Jordan, now have more mobile subscribers per 100 inhabitants than, for instance, North America or Japan. This is a reversal of the traditional digital divide and provides a compelling example of “digital leapfrogging”. It also illustrates the success of policies based on open markets. Developing country mobile operators are also responsible for many for the innovations that are shaping the industry worldwide. For instance, SMS first became popular in the Philippines; pre-paid billing was first tried in Kenya and now companies such as Zain, an IFC investee, is eliminating roaming charges in the markets in which it operates in East Africa.
Today's unprecedented economic challenges call for innovative ways in addressing complex development issues. Breakthrough ICT applications can leverage the transformative power of nations and increase the efficiency and transparency of governments across the developing world. ICTs and Mobile Applications have been an engine for economic growth in both developed & developing countries. It comes at no surprise that the market for ICT services continues to expand despite the crisis. In the last year alone, donors spent 5 billion US dollars in this area; Brazil, China and India spent over 100 billion dollars in developing the ICT sector.
Vodafone Event Deepak Bhatia June 12, 2010
World Bank ICT Landscape Public Sector Governance Urban Development Rural Development Standards & Inter- operability PPP Environment & Natural Resource Management Health & Education But what about the trucks? Private Sector Development ICT Capacity Building Legal, Regulatory Framework Institutional Framework ICT enablement of Sectors CAS SDPRP/PRSP ICT Infrastructure Enabling Environment Framework for Intervention Social Development & Social Protection
Bank Portfolio reflects significant investment in ICT <ul><li>64% of Bank projects 1 (pipeline and portfolio) have ICT components </li></ul><ul><li>Total ICT investments estimated at about $7.73 billion </li></ul>1: Refers to the total number of projects reviewed (1630) as part of the ICT dimension study – as of Nov 2006 2: Only includes pipeline projects with clear ICT components identified 3: ‘Other’ includes projects other than investment lending (incl. GPP, IDF, GEF, Special funds etc) 1,071 467 6,198 7,736 ICT Commitment Amt. US$M 5,587 1,568 64,969 72,124 IBRD/IDA Amount US$M 90 Other 3 19 Pipeline 2 930 Portfolio 1,039 Total No. of Projects identified with ICT
The number of Projects with ICT is growing About 150 new projects (out of 250) containing ICT components enter the portfolio per annum
ICT in Bank Operations: Applications for the Sectors Rural Development STRATEGIC FOCUS POTENTIAL OF ICT <ul><li>Community resource monitoring systems - Automated Land titling registries - e-Gov services to reduce dependence on exploitative intermediaries </li></ul>BANK PROJECT EXAMPLES <ul><li>GIS tools for tracking agricultural harvests - Remote crop diagnosis via digital media - ICT enabled agricultural education and extension services </li></ul><ul><li>ICT based agricultural marketing & trade - Value chain creation from vertical commodity portals - Virtual communities connecting specialists </li></ul><ul><li>ICT based rural micro-credit systems - ICT facilitated remittances from abroad - ICT based training to strengthen cooperatives, NGOs, producer associations </li></ul>UKRAINE Rural Land Titling & Cadastre Devt Project, ($195 Mil): Computerized cadastre system for improving land taxes; quality of information for social service planning INDIA: Tamil Nadu Irrigated Agriculture Modernization & Water-Bodies Restoration and Management Project ($475 Mil): ICT for agricultural education & knowledge management PHILIPPINES Diversified Farm Income & Market Development, ($70 mil); Information system on agricultural prices/ volumes traded to improve & expand markets PHILIPPINES E-Commerce for Farmers: ($ 850,000): InfoDev project to develop electronic marketing site and computer literacy training programs for business development Rural Governance Agriculture Rural Markets Non-farm Income Generation
ICT in Bank Operations: Applications for the Sectors Urban Development STRATEGIC FOCUS POTENTIAL OF ICT <ul><li>GIS based demographic data gathering - Scenario/ forecast modeling via e-simulations - Transportation & Facilities Mgmt Systems </li></ul>BANK PROJECT EXAMPLES <ul><li>Intranets to facilitate communication with all levels of government - Common IT systems to standardize procedures and reduce discretion </li></ul><ul><li>Land/Property Management Systems - Land titling Registries, Cadastral Systems for improved governance, taxation </li></ul><ul><li>Online access to key governance documents, e.g. budgets, planning info - Participatory monitoring of programs to ensure checks and balances on officials </li></ul>CHINA: Wuhan Urban Transport; (US$ 598.2 mil): Project aims to Improve urban transport arrangements through an MIS for fleet management, including use of GPS units. PERU: Institutional Capacity for Sustainable Fiscal Decentralization ($8.8 Mil): Strengthening regional and local government institutions via information systems GUATEMALA: Land Administration Project, ($31 Mil) developing cadastral and registral databases, and fully computerized administrative & accounting systems Urban Planning Decentral- ization Land Management Civic Empowerment
ICT in Bank Operations: Applications for the Sectors Private Sector Development STRATEGIC FOCUS POTENTIAL OF ICT <ul><li>ICT facilitated Business networks - Online transactions to reduce costs - e-simplification of Business Processes </li></ul>BANK PROJECT EXAMPLES <ul><li>Employment generation and skills dev’t for 21 st century - Necessary to support growth of ICT use in society, and in local development efforts </li></ul><ul><li>E-Procurement to promote private sector development opportunities - G2B services to facilitate ease of business creation, expansion and closing </li></ul><ul><li>Computerized trade logistics for efficiency - E-Customs clearance for imports/exports, real-time info sharing with customs officials - Facilitation of trade networks </li></ul>TUNISIA: ICT Sector Development Project: ($ 1.03 million): Supports opening up of the ICT sector to private participation and competition GHANA : e-Ghana Project: generate increased employment in the ITES (notably BPO) sector, and improve access to information/transaction capabilities for businesses in selected districts CAMBODIA: Trade Facilitation and Competitiveness ($10 Mil): Deployment of ICT for automation of customs functions; IT training, Installation; Website development SME Support ICT Sector Development Stimulation of Domestic Industry Trade & Integration
ICT in Bank Operations: Applications for the Sectors Public Sector Reform (E-Government) STRATEGIC FOCUS POTENTIAL OF ICT <ul><li>Records Management systems - HR Management Systems, online job listings - e-Pensions Administration </li></ul>BANK PROJECT EXAMPLES <ul><li>Treasury systems to improve fiscal control - e-Procurement for checks on govt. purchasing - e-Taxation for efficient revenue collection </li></ul><ul><li>e-Gov portal for 24/7 service delivery - e-services to reduce exploitation, official discretion - e-democracy to empower citizens </li></ul><ul><li>Court MIS, e-case filing to expedite processes - Legal systems for judges - Public awareness via online case data </li></ul>SRI LANKA : e-Sri Lanka Program; (US$ 50 mil): Creation of a ‘single window’ for gov services; inter-connected government agencies for improved productivity CHILE : Public Expenditure Management Project, ($23 Mil) improve transparency of public finance via a modern and integrated IFMIS GUATEMALA: GT TAX ADMIN. TAL, ($28 Mil): Computerized tax collection sytem to improve convenience to citizens and accuracy in revenue collection EL SALVADOR: Judicial Modernization Project; ($ 24 mil) automates case management programs, and provides e-learning for judicial employees Administrative Reform Anti- Corruption Citizen-centric Governance Law & Justice
ICT in Bank Operations: Applications for the Sectors Health & Education STRATEGIC FOCUS POTENTIAL OF ICT <ul><li>- Distance Learning to reach remote areas - ICT based teacher training, skills building - Multi-media to improve teaching content - Education MIS for improved administration </li></ul>BANK PROJECT EXAMPLES <ul><li>GIS based disease surveillance - Early warning systems for potential outbreaks - ICT based delivery of health info to citizens </li></ul><ul><li>Tele-consultation with remote diagnosis for rural areas - ICT based training and skills building for care-givers </li></ul><ul><li>Health MIS for improved patient care - electronic shareable health records to improve transmission of information - Compilation and analysis of health-related statistics </li></ul>COSTA RICA : Equity and Efficiency of Education ($ 51 mil): Development of an Education MIS; Distance Education training for teachers, and the networking of rural schools. BRAZIL : VIGISUS APL 2, ($100 Mil):- Improved disease surveillance & Control via access to quality information from ICT systems NICARAGUA Health Sector II, ($82 mil) Institutional strengthening of Ministry of Health, via Information systems to make it responsive to the needs of its different end users (central MOH, hospitals and municipalities). Access & Quality Of Education Disease Control Delivery of Health Care Health Administration
ICT in Bank Operations: Applications for the Sectors Environment & Natural Resource Management STRATEGIC FOCUS POTENTIAL OF ICT <ul><li>Satellite maps for analysis of water flow - Identification of new water resources - Identifying areas of scarcity before water shortages occur </li></ul>BANK PROJECT EXAMPLES <ul><li>Natural Resources (vegetation & bio-diversity) Monitoring Systems - Disaster Management Systems - Aggregating of Environmental Data to check compliance with regulations - ICT based networking to allow citizen monitoring of safeguards - Public awareness raising via online channels </li></ul>CHINA, SLOVAKIA, FRANCE : Data Fusion for Flood Analysis and Decision Support (US$4.2 million), infoDev: Aims to create a Decision Support System to provide solutions for flood prevention & protection, with near real-time prediction capabilities. BOSNIA & HERZEGOVINA : Forest Dev/Conservation TA: (US$ 5 million), The project will install computer hardware, software and networking equipment for Forest Offices to better manage natural resource information. A Forest Management Information System worth 2.3 million will be developed as part of project requirements. Water Management Environmental Monitoring
ICT in Bank Operations: Applications for the Sectors Social Development & Social Protection STRATEGIC FOCUS POTENTIAL OF ICT <ul><li>ICT for information gathering and analysis - Census, demographic surveillance systems - Monitoring systems to evaluate social programs </li></ul>BANK PROJECT EXAMPLES <ul><li>E- application for social benefit programs - ICT facilitated rural insurance products - Agency sharing of beneficiary information </li></ul><ul><li>Women’s employment within ICT Sector - Vocational training via ICT - ICT facilitated lobbying - e-channels for reporting gender offences </li></ul><ul><li>E-complaint filing, e.g. service delays - Monitoring of public resources by citizens - online viewing of public meetings, access to key gov. documents, e.g. budgets </li></ul>BURKINA FASO : Development of the National Statistical System ($10 Mil) builds capacity to utilize timely, accurate quantitative and qualitative information to monitor progress towards national development goals, including MDGs LATVIA Welfare Reform Project (WB): development of a more efficient, effective social welfare system through strategic use of ICT. BANGLADESH : Expanding Mobile Services and Empowering Women 1999; US$ 18.3 million (IFC) Provides access to mobile phone services for approximately 30 million people living in rural areas, particularly local women Poverty Strategy Development Social Risk Mitigation Gender Civic Empowerment
ICT investments can have a high impact <ul><li>Karnataka (India) Bhoomi project </li></ul><ul><ul><li>20 million land records computerized </li></ul></ul><ul><ul><li>Investment of $4.2 million </li></ul></ul><ul><ul><li>Savings of $18.3 million in bribes annually </li></ul></ul><ul><li>Ghana’s GCNet </li></ul><ul><ul><li>Created as a joint venture company with Société Générale de Surveillance (SGS, 60%), Government (20%), Ghana Shippers Council (10%), and two local banks (5%,each) </li></ul></ul><ul><ul><li>Equity of $5.3 million </li></ul></ul><ul><ul><li>Revenues through a 0.4% advalorem fee on imports </li></ul></ul><ul><ul><li>49% increase in customs revenues in first 18 months and reduced clearance times </li></ul></ul>
Country Type of government application Number of days to process before application Number of days to process after application Brazil Registration of 29 documents Several days 20 30 minutes per document, one day for business licenses Chile Taxes online 25 days 12 hours China Online application for 32 business services 2 - 3 months for business license Several visits to multiple offices for filings 10 - 15 days for business license Several seconds for routine filing for companies India, Andhra Pradesh Valuation of Property Few days 10 minutes Land Registration 7 - 15 days 5 minutes India, Karnataka Updating Land Registration 1 - 2 y ears 30 days for approval, request completed on demand Obtaining Land Title Certificate 3 - 30 days 5 - 30 minutes India, Gujarat Interstate Check Posts for Trucks 30 minutes 2 minutes Jamaica Customs Online 2 - 3 day for brokers to process entry 3 - 4 hours Philippines Customs Online 8 days to release cargo 4 hours – 2 days to release cargo Singapore Issue of Tax Assessments 12 - 18 months 3 - 5 months Source: Subash Bhatnagar and Arsala Deane (World Bank, 2003). ICT investments can have a high impact
BUT ICT investments are also high-risk … <ul><li>Guardian headline: “£2bn cost of government’s IT blunders” (Saturday January 5, 2008) </li></ul><ul><li>Department of Works and Pensions alone accounted for £1.6bn in terms of failed IT projects </li></ul><ul><li>Risks are high, though a lot learnt since the early days </li></ul>Source: Richard Heeks. 2003. “ Most e-Government-for-Development Projects Fail: How Can Risks be Reduced ?”. IDPM i-Government Working Paper no. 14 e-Government initiatives in Developing/Transitional Countries Partial Failures 50% Total Failures 35% Successes 15%
Move to Mobile <ul><li>As a viable means for service delivery </li></ul>
Mobile Communication Transformed Society Mobile Communication Literally Transformed Society as its Outreach Increased Source: Com MN SM Market Assessment and Klaus Estenfeld y, November, 2006; Top appealing use case Ø phone cost (US $) 1,000 200 40 Ø Cost / minute (US $) Cell phone users (world) 200,000 2.2 BLN 4 BLN “ Voice calling from a car” “ Mobile entertainment anywhere” “ Mobile communication for everyone” (2.5 cent) 45 cent 8.1 cent 5.0 cent (1.6 cent) World (India) <ul><li>2010 </li></ul><ul><li>2006 </li></ul>early 1985
Mobile trends Mobile phones have narrowed the gaps in voice communications worldwide Some developing countries are beginning to leapfrog OECD counterparts Mobile phones worldwide, millions Mobile density, per 100 pop.
The Diffusion of Mobile Applications is Fast ICTs and Mobile Applications’ Diffusion is Tangible Across Sectors Source: DFINTL, CITPO Analysis, December 2009
Mobile Applications Potential for Growth is still Largely Untapped Even in Countries with 100% Mobile Penetration, Policy/regulatory Steps are to be Taken to Increase Access to Mobile Citizen Services Source: CITPO Analysis, 2009
Key Areas Where Mobile Applications are Already Wide-spread Source: Mobileactive.org, CITPO Analysis, 2010 <ul><li>Disaster and Risk Management </li></ul><ul><ul><li>Disaster warnings </li></ul></ul><ul><ul><li>Alerts </li></ul></ul><ul><ul><li>Refugee coordination </li></ul></ul><ul><ul><li>Aid supply management </li></ul></ul><ul><li>Economic Development </li></ul><ul><ul><li>Market data collection </li></ul></ul><ul><ul><li>Mobile Payments </li></ul></ul><ul><ul><li>Micro loan management </li></ul></ul><ul><li>Environmental Monitoring </li></ul><ul><ul><li>GIS surveillance </li></ul></ul><ul><ul><li>Crowd data and open source </li></ul></ul><ul><li>Organizing/Advocacy </li></ul><ul><ul><li>Information dissemination </li></ul></ul><ul><ul><li>Legislative advocacy </li></ul></ul><ul><ul><li>Voting mobilization </li></ul></ul><ul><ul><li>Anti-corruption reports </li></ul></ul><ul><li>Health: </li></ul><ul><ul><li>Disease surveillance and remote control </li></ul></ul><ul><ul><li>Information dissemination and public health education </li></ul></ul><ul><ul><li>Drugs supply chain management and aid relief control </li></ul></ul><ul><li>Accountability and Transparency </li></ul><ul><ul><li>Election monitoring </li></ul></ul><ul><ul><li>Human rights monitoring </li></ul></ul><ul><ul><li>Corruption monitoring </li></ul></ul><ul><li>Media and (Citizen) Reporting </li></ul><ul><ul><li>Incidence/news mapping </li></ul></ul><ul><ul><li>Incident photo/video footage </li></ul></ul><ul><ul><li>News dissemination in restricted environments </li></ul></ul>
Mobile Trends for the Next 10 years Mobile Applications will Continue to Expand into Social Development Area
Top 5 Mobile Applications in 2012 Gartner Listed Top 5 Mobile Applications Based on their Impact on Consumers and Industry Players in the Upcoming Years Source: CITPO Analysis, February 2010
Impact of ICTs on GDP growth Impact of a 10% increase in the penetration of ICTs on GDP per capita, 1980-2006 <ul><li>Developing country mobile has 35% greater impact on GDP than developed </li></ul><ul><li>Broadband has a 57% greater impact than narrowband </li></ul>Implication: Future Mobile broadband could have a greater development impact than mobile voice when available
Mobiles and economic growth – some evidence Serbia Pakistan Bangladesh Contribution of mobile comms to total GDP, 2007 Source: Deloitte, cited in World Bank (2008), “The role of mobile phones in sustainable rural poverty reduction” <ul><li>High and rising contribution of mobile to total GDP (Deloitte: see chart) </li></ul><ul><li>Job creation : 3.6 million jobs created in India by mobile industry (Ovum) </li></ul><ul><li>Productivity increases through business expansion, employment search, entrpreneurship, mobile banking, lower transaction costs etc (Deloitte) </li></ul><ul><li>Critical mass in economic impact appears to be reached at 25% penetration (Vodafone, India study) </li></ul><ul><li>Increased tax revenue (GSMA) </li></ul>Malaysia Thailand Ukraine 7% 6% 5% 4% 3% 2% 1% 0%
mHealth application – Example of social networking <ul><li>For people with no computing access, a mobile will be their first computing device. </li></ul><ul><ul><li>India for example, has 25 PCs per 1,000 people, according to IDC. The U.S. number is 997. </li></ul></ul><ul><ul><li>People in India, like many in the developing world, choose mobiles over computers. They are cheap, and do the job. </li></ul></ul><ul><ul><li>Paradigm shift – for mobile telephony and the use in sectors </li></ul></ul><ul><ul><li>it is important that we do not see mobile technology as a “stand alone device” but as an integral part of the daily lives of civil servants, beneficiaries and their interactions with the sectoral system and the community in which they are working. </li></ul></ul><ul><ul><li>Old statistic - Nine million new phones are sold in India every month, about 3 million more than the number of computers sold in an entire year. </li></ul></ul><ul><ul><li>Sixty-six million people access the Internet via their handsets, according to the Telecom Regulatory Authority of India. </li></ul></ul>
Change in behavior (with positive effects due to social networking) <ul><li>Increased peer-to-peer communication between health workers on all kinds of issues including health system or administration. </li></ul><ul><li>helped build a closer-knit community between the health workers, facility staff and community members. Calls to meetings, stock availability, health days were communicated faster and improved efficiency. </li></ul><ul><li>explore new ways of using the phone. One health worker took photos of skin rashes and showed this to the medical officer because she was unable to detect the cause of the rashes. </li></ul><ul><li>Few health workers have advertised the phone numbers as official sub-center numbers and hence people from the catchment areas often call and discuss their health-related problems. </li></ul>
Final caveat <ul><li>Any mobile solution should be matched with </li></ul><ul><li>the people’s skills, </li></ul><ul><li>resources available, </li></ul><ul><li>work practice </li></ul><ul><li>and infrastructural context </li></ul>
Special thanks to <ul><li>Mariana Medvetchi-Dahan – for additional data on mobile applications </li></ul><ul><li>Saptarshi Purkayastha – Director R&D, HISP India, NBITS example </li></ul><ul><li>Contact </li></ul><ul><li>Deepak Bhatia, E-government Applications Practice,Global ICT Department, The World Bank </li></ul><ul><li>[email_address] </li></ul>