Partnerships for the 2030 Agenda: Role of Science, Technology, and Innovation

United Nations University October 18, 2018 Tokyo, Japan

Mahmoud Mohieldin @wbg2030 0 Senior Vice President worldbank.org/sdgs Global Megatrends

1 Global Megatrends

Demographic transitions and Urbanization

Fragility and violence

Climate change

Market volatility and commodity cycles

Technological changes

Shifts in the global economy

Renewed debate about globalization

2 Demographic Transitions and Urbanization Global Working Age Population and Urbanization are Increasing

Life Expectancy in Asia and the World 80.0 75.0 70.0 65.0 60.0 55.0 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013 East Asia & Pacific World

Source: World Development Indicators, World Bank Source: GlobalPost, 2014

70 Percent of total population that is working age

55 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 World Advanced Economies Emerging Market and Developing Economies

Source: World Bank Global Economic Prospects, 2018 3 Fragility and Violence Violent conflict is increasing and becoming more complex

Number of conflicts, by type Number of people killed by violent conflict

The global forcibly displaced population The crisis primarily affects the developing world

Source: World Bank 2017 4 Climate change and resources

Percentage point increase in poverty rate Climate change could raise extreme poverty rates substantially by 2030

Development progress needs to integrate resilience to avoid undoing hard fought development gains

Source: Building Resilience report, World Bank, 2014 5 6 Market Volatility and Commodity Cycles

Commodity price indexes, annual

Source: Commodity Markets Outlook, World Bank, 2018 6 The Impact of Technology Changing Demand for Changing Skills

According to Oxford University 47% of jobs in the US will disappear in the next 25 years Source: Presentation by Ben Pring, The Future of Labor & Work in a Post Bretton Woods World, September 2018

Source:21 Jobs of the Future, A Guide to Getting – and Staying – Employed Over the Next 10 Years, Center for the Future of Work,Source:2017 GSMA Intelligence (2017), World Bank – World Development Indicator (2017) See Annex, pp20-24 for additional data on the emerging digital divide and trends in the digital7 sector Impact of Technology Growth of the Global Labor Force

Industrial Jobs are Falling in the West and Rising in the East

Source: World Bank World Development Report 2019: Changing Nature of Work 8 Impact of Technology Boundaries of Firms Are Changing Rapidly

Source: World Bank World Development Report 2019: Changing Nature of Work 9 Reflections on Multipolarity Channels of growth spillovers from a growth pole

Source: Multipolarity: The New Global Economy, World Bank, 2011 10 Renewed Debate about Globalization

Global Gross Financial Flows, 1990-2016 (percent of world GDP)

Source: Braga, 2017

Trade and FDI depth through 2016 30%

25%

20%

15%

10%

5% Merchandise Trade % of GDP

0% FDI Flows % of Investment

Source: Ghemawat, 2017 11 A Framework Technology Drives the Pace and Scope of Change

• Taking advantage of the opportunities and mitigating the risks of global megatrends will require an enabling policy framework

• Harnessing the Invest in human Invest in resilience, Invest in impact of capital incl social protection infrastructure technological changes

requires a Enablers Data Finance STI comprehensive policy

framework Achieving the SDGs

Source: Adapted from World Bank World Development Report 2019: Changing Nature of Work 12 Meeting the SDGs: Human Capital, Resilience, Infrastructure, and Technology

13 Inclusive Growth for Sustainable Development

Source: New Growth Models, World Economic Forum, 2014

14 15 Investing in Human Capital

Ratings in First Human Capital Index

Launched in October during World Bank Group Annual Meetings Building blocks of the human capital: • Survival – Will kids born today survive to school age? • School – How much school will they complete and how much will they learn? • Health – Will kids leave school in good health and be ready for further learning and/or work? 15 Source: Human Capital: A Project for the World, World Bank , 2018 16 Investing in Resilience

Social protection and labor regulation can help manage labor market challenges

Source: World Bank World Development Report 2019: Changing Nature of Work 16 17 Investing in Resilience

Source: SDG Atlas, World Bank, 2018 17 18 Investing in Infrastructure

Infrastructure Outlook: Africa Infrastructure Outlook: Asia 4E+11 2.3E+12 3.5E+11 2.1E+12 3E+11 1.9E+12 2.5E+11 1.7E+12 2E+11 1.5E+11 1.5E+12 1E+11 1.3E+12 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Current trends Current trends Investment need Investment need Investment need inc. SDGs Investment need inc. SDGs

Source: Global Infrastructure Hub, 2018 18 World Bank Group’s Technology Vision Supporting Clients to Maximize Technology Benefits

19 Data is a Problem, even in Canada

Seventy-eight of 169 SDG targets describe potentially assessable outcomes for Canada 20

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Not able to assess Proxy target Canadian national target Quantified SDG target

Source: Who and what gets left behind? Assessing Canada’s domestic status on the sustainable development goals, Brookings, 2017 20 SDG Interlinkages and Data Visualization The case of Japan

Japan’s goals interlinked to SDG 1

21 Finance for the SDGs will need to come from multiple sources

A LARGE POOL OF PRIVATE CAPITAL IS YET TO BE CATALIZED

WITH JUDICIOUS USE OF SCARCE PUBLIC AND CONCESSIONAL RESOURCES

22 23 Financing sustainable development: “Digitization” is disrupting every part of financial services

Source: World Bank Group, 2017 23 Maximizing Fintech’s Potential Opportunities, Challenges, Risks Reinforce Competition and Monitor Developments Closely to Commitment to Open, Free and Contestable Markets Deepen Understanding of Evolving Embrace Financial Systems the Foster Fintech to Promote Promise Financial Inclusion and Develop of Fintech Financial Markets Enable New Adapt Regulatory Framework and Supervisory Technologies to Practices for Orderly Development and Stability Enhance of the Financial System Financial Service Safeguard the Provision Integrity of Financial Modernize Legal Frameworks Systems to Provide an Enabling Legal Landscape Enhance Collective Surveillance of the International Monetary and Financial System Ensure Stability of Encourage Domestic Monetary and International Financial Systems Cooperation and Develop Robust Financial and Data Information Infrastructure to Sustain Fintech Benefits Sharing 24 Source: The Bali Fintech Agenda, World Bank, 2018 STI for Implementation

E-health can serve some Digital education creates of the neediest patients classrooms at scale and in the world’s hardest to connects world-class reach places teachers to students who need them most

Digital payments and Digital financial services monitoring enable off- provide new grid, renewable energy opportunities for SME sources to be deployed savings, credit, and years in advance of insurance thereby traditional approaches spurring expansion

Source: Presentation to the UAEU, Mohieldin, 2017 25 Japan’s Commitment to Sustainable Development Goals

26 WBG Partnership with Japan Strong and Steadfast Development Partnership over 55 years

Current priority topics Opened WB include Health, disaster Tokyo risk management, and Japan is the second largest Development infrastructure and urban share-holder (7.2% in IBRD) Learning development Center in 2004 Japan borrowed total USD 863 million for 31 projects in 1950s and 60s. Repayment completed in 1990 Japan joined the World Bank in 1952

27 28

Source: 2030 Agenda, MoFA 28 Japan’s Voluntary National Review Five Ps: People; Prosperity; Planet; Peace; Partnership

29 30 Japanese Support to SDGs Newest Innovations to Support Most Difficult Problems

Development of Rapid Diagnostics and the Establishment of an Alert System for Outbreaks of Yellow Fever and Rift Valley Fever in Kenya (2011-2016)

 Diagnostic technology developed in Nagasaki University to produce affordable and rapid diagnostic kits that facilitate early identification of disease outbreaks.

 An outbreak early warning system through the use of mobile phones (mSOS) was established to effectively and rapidly relay information from peripheral areas to the central government in collaboration with WHO and other international partners.

30 Source: Book of Japan's Practices for SDGs - Creating Shared Value by STI, Business and Social Innovation, 2017. 31 SDGs Japan

Japan Civil Society Network on SDGs (SDGs Japan) is a non-government organization supporting the efforts to accelerate the implementation of the SDGs in Japan.

31 Partnerships with Japanese Academic Institutions

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32 33 KEIDANREN’S VISION OF “SOCIETY 5.0 FOR SDGS”

 Achieving SDGs will demand that private companies exercise their powers of creativity and innovation.

 If a diverse mix of stakeholders comes together in forging organic links among these innovative offerings and other revolutionary technologies, products, and services, Keidanren’s vision of “Society 5.0 for SDGs” will come to fruition.

Source: Keidanren 33 From Industry 4.0 to “Society 5.0”

Society 5.0: A Super Smart Society where social challenges can be resolved by incorporating the revolutions of the Fourth Industrial Revolution (IoT; Big Data; Artificial Intelligence; Robotics) into every industry and social life

Evolution of Societies up to Society 5.0

Source: Keidanren 34 STI for Implementation

35 Thank You worldbankgroup.org/sdgs

Mahmoud-Mohieldin on

Mahmoud Mohieldin @wbg2030 3 Senior VP 6 worldbank.org/sdgs