BANGLADESH DEVELOPMENT UPDATE Sustained Development Progress

Total Page:16

File Type:pdf, Size:1020Kb

BANGLADESH DEVELOPMENT UPDATE Sustained Development Progress Bangladeshww Development Update Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized October 2016 BANGLADESH DEVELOPMENT UPDATE Sustained Development Progress October 2016 The World Bank Office, Dhaka Plot E-32, Agargaon Sher-e-Bangla Nagar Dhaka – 1207, Bangladesh Tel.: (880-2) 5566-7777 Fax: (880-2) 5566-7778 www.worldbank.org/bd Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: The material in this publication is copyrighted. Copying and/or transmitting ions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. Photo Credits: Cover: ©The World Bank, 2016 Printed in Bangladesh Sustained Development Progress Bangladesh Development Update Preface The objective of this report is to update the Government of Bangladesh, think tanks and researchers, the general public as well as the Bank’s senior management on the state of the economy, outlook, risks, progress on structural policy reforms and key challenges the economy is currently facing. The coverage includes developments in the real sector focusing on growth, inflation, and poverty; external sector developments focusing on the balance of payments, foreign exchange reserves and the exchange rate; fiscal developments focusing on revenue mobilization, public expenditures, and deficit financing; financial sector developments focusing on credit and interest rates; and monetary developments focusing on reserve money and broad money growth trends. This update also focuses on introducing carbon taxation in Bangladesh. This report was prepared by a team comprising of Zahid Hussain (Lead Economist), Simon Davies (Senior Economist), Sheikh Tanjeb Islam (Economist), Nobuo Yoshida (Senior Economist), Monica Yanez Pagans (Economist) and Afroza Alam (Research Analyst). Valuable contributions were made by Christain Eigen Zucci (Program Leader). Deepak K. Mishra (Lead Economist) provided extremely useful comments. Maura K. Leary (Senior Communications Officer) provided editorial support. Shubham Chaudhuri (Practice Manager) and Benu Bidani (Practice Manager) provided overall guidance in the preparation of this report. Mehar Akhter Khan (Program Assistant) and Subah Sabiha Mohona (Research Analyst) provided research support and formatted the document. Abbreviations and Acronyms ADB Asian Development Bank ICP International Comparison Program ADP Annual Development Plan ICT Information And Communications Technology BB Bangladesh Bank IMED Implementation Monitoring Evaluation Division BBS Bangladesh Bureau of Statistics INDC Intended Nationally Determined Contributions BERC Bangladesh Energy Regulatory Commission IPL International Poverty Line BHEL Bharat Heavy Electricals Limited ISO independent system operator BIFPCL Bangladesh-India Friendship Power Ltd. KSA Kingdom of Saudi Arabia Company BPC Bangladesh Petroleum Corporation LIBOR London Interbank Offered Rate BSTI Bangladesh Standards and Testing Institution LNG Liquefied Natural Gas CD Customs Duty LPG Liquefied Petroleum Gas CNG Compressed Natural Gas LPI Logistics Performance Index COP21 Conference of the Parties in Paris in 2015 LPL Lower Poverty Line DMRTD Dhaka Mass Rapid Transit Development MDGs Millennium Development Goals Project DNCC Dhaka North City Corporation MPS Monetary Policy Statement DSE Dhaka Stock Exchange MW Megawatts EBA Everything But Arms MH Million Hectares ECNEC Executive Committee of the National MMT Million Metric Tons Economic Council EEBL Excelerate Energy Bangladesh Limited MSTPP Moitri Super Thermal Power Project EMDEs Emerging Market Developing Economies MUSCCFPP MW Ultra-Super Critical Coal- Fired Power Project EPB Export Promotion Bureau MW Megawatts EU European Union NBR National Board of Revenue FAO Food and Agriculture Organization NDC Nationally Determined Contribution FBCCI Federation of Bangladesh Chamber of NER Nominal Exchange Rate Commerce and Industries FDI Foreign Direct Investment NPL Nonperforming Loan FY Fiscal Year NPR Nominal Protection Rate GBP British Pound PBRL Padma Bridge Rail Link GCC Gulf Cooperation Council GDP Gross Domestic Product GNI Gross National Income GSM Global System for Mobile communication Sustained Development Progress Bangladesh Development Update PD T-Bill Treasury bill Project Director PMB TFP Total Factor Productivity Padma Multipurpose Bridge PPF Project Preparatory Fund Tk Taka PPP Purchasing Power Parity TPP Trans-Pacific Partnership RD Regulatory Duty UAE United Arab Emirates RMG Ready-Made Garments UK United Kingdom RNPP Nuclear Power Plant USA United States of America ROA Return on Assets USD United States Dollar SCBs State Owned Commercial Banks USDA United States Department of Agriculture SD Supplementary Duty VAT Value Added Tax SDG Sustainable Development Goals WDI World Development Indicators SR Saudi Riyal WTO World Trade Organization Table of Contents EXECUTIVE SUMMARY ................................................................................................... IX A. TRENDS IN POVERTY AND SHARED PROSPERITY ................................................ 1 B. RECENT ECONOMIC DEVELOPMENTS .................................................................... 7 C. STRUCTURAL REFORMS ............................................................................................. 29 D. OUTLOOK ....................................................................................................................... 33 E. CHALLENGES AND POLICY RESPONSES ................................................................ 41 F. A CARBON TAX FOR BANGLADESH? ........................................................................ 47 ANNEX-1: .............................................................................................................................. 52 APPENDIX ............................................................................................................................ 53 LIST OF FIGURES Figure 1: Proportion of people living on less than $1.90 per day and population of the poor ........................... 2 Figure 2: Comparisons of poverty rates with other countries .................................................................................. 4 Figure 3: Private and Public Investment Growth Rates .......................................................................................... 12 Figure 4: Stock of FDI by Sector (end of December, 2015) .................................................................................. 12 Figure 5: Exports and RMG growth: .......................................................................................................................... 14 Figure 6: Remittance Growth ...................................................................................................................................... 15 Figure 7: Inflation .......................................................................................................................................................... 18 Figure 8: Rural and Urban Inflation ........................................................................................................................... 18 Figure 9: Current Account Balance ............................................................................................................................. 19 Figure 10: Real Effective Exchange Rate ................................................................................................................... 19 Figure 11: Lending & Deposit Rate ............................................................................................................................ 21 Figure 12: ADP Implementation ................................................................................................................................. 26 LIST OF TABLES Table 1: Comparison of poverty lines for 2010 in Bangladeshi taka and poverty rates ....................................... 3 Table 2: Growth Rate Needed to End Extreme Poverty .......................................................................................... 5 Table 3: GDP Growth ...................................................................................................................................................
Recommended publications
  • PDF/Population/ P9p10%20Literacy%20Rates%20By%20District,%20Sex%20An Census and Statistics, Sri Lanka) D%20Sector.Pdf 5 Department of Census and Statistics Sri Lanka
    Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized i | Broadband in Sri Lanka: A Case Study ii | Broadband in Sri Lanka: A Case Study © 2011 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved The findings, interpretations and conclusions expressed herein are entirely those of the author(s) and do not necessarily reflect the view of infoDev, the Donors of infoDev, the International Bank for Reconstruction and Development/The World Bank and its affiliated organizations, the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to infoDev Communications & Publications Department; 2121 Pennsylvania Avenue, NW; Mailstop F 5P-503, Washington, D.C.
    [Show full text]
  • Nigeria's Renewal: Delivering Inclusive Growth in Africa's Largest Economy
    McKinsey Global Institute McKinsey Global Institute Nigeria’s renewal: Delivering renewal: Nigeria’s inclusive largest growth economy in Africa’s July 2014 Nigeria’s renewal: Delivering inclusive growth in Africa’s largest economy The McKinsey Global Institute The McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Our “micro-to-macro” methodology examines microeconomic industry trends to better understand the broad macroeconomic forces affecting business strategy and public policy. MGI’s in-depth reports have covered more than 20 countries and 30 industries. Current research focuses on six themes: productivity and growth; natural resources; labour markets; the evolution of global financial markets; the economic impact of technology and innovation; and urbanisation. Recent reports have assessed job creation, resource productivity, cities of the future, the economic impact of the Internet, and the future of manufacturing. MGI is led by three McKinsey & Company directors: Richard Dobbs, James Manyika, and Jonathan Woetzel. Michael Chui, Susan Lund, and Jaana Remes serve as MGI partners. Project teams are led by the MGI partners and a group of senior fellows, and include consultants from McKinsey & Company’s offices around the world. These teams draw on McKinsey & Company’s global network of partners and industry and management experts.
    [Show full text]
  • Mobile Broadband - the 'Killer Ap' for 3G in Asia-Pacific?
    Broadband Report 3 Mobile broadband - the 'killer ap' for 3G in Asia-Pacific? The author, Janice Chong, is an industry manager at global growth consulting company Frost & Sullivan. She spearheads research in mobile and wireless communications, covering services, applications and devices in the Asia Pacific telecommunications ive years on from its initial launch in applications, there is little that differenti- F Japan and South Korea, 3G (third ates 3G from 2.5G services. The latter is generation) network deployment is on a already capable of delivering most mobile global scale. With the exception of China, services and applications over its existing India and Thailand, the 3G movement has network. The only compelling proposition permeated the Asia Pacific region, ranging that 3G offers is user experience due to from the highly saturated to the emerging its bigger bandwidth pipe, which allows for markets. Apart from the mature (tier-i) 3G shorter download time and better quality of markets i.e. Japan and South Korea, coun- service. As it stands, the lack of compelling tries that have launched 3G services now content and a business case for users to include Hong Kong, Australia, New Zea- embark on this migration path has inhib- land, Singapore and Malaysia (collectively ited the mass adoption of 3G. known as tier-2 3G markets). The strategic positioning for 3G services The 3G subscriber base in Asia Pacific so far has mainly centred on price plays grew 54.7 percent (year-on-year) in 2006 as an immediate means of enticing users reaching 90.6 million subscribers, which to migrate onto the 3G platform.
    [Show full text]
  • What Is the Impact of Mobile Telephony on Economic Growth?
    What is the impact of mobile telephony on economic growth? A Report for the GSM Association November 2012 Contents Foreword 1 The impact of mobile telephony on economic growth: key findings 2 What is the impact of mobile telephony on economic growth? 3 Appendix A 3G penetration and economic growth 11 Appendix B Mobile data usage and economic growth 16 Appendix C Mobile telephony and productivity in developing markets 20 Important Notice from Deloitte This report (the “Report”) has been prepared by Deloitte LLP (“Deloitte”) for the GSM Association (‘GSMA’) in accordance with the contract with them dated July 1st 2011 plus two change orders dated October 3rd 2011 and March 26th 2012 (“the Contract”) and on the basis of the scope and limitations set out below. The Report has been prepared solely for the purposes of assessing the impact of mobile services on GDP growth and productivity, as set out in the Contract. It should not be used for any other purpose or in any other context, and Deloitte accepts no responsibility for its use in either regard. The Report is provided exclusively for the GSMA’s use under the terms of the Contract. No party other than the GSMA is entitled to rely on the Report for any purpose whatsoever and Deloitte accepts no responsibility or liability or duty of care to any party other than the GSMA in respect of the Report or any of its contents. As set out in the Contract, the scope of our work has been limited by the time, information and explanations made available to us.
    [Show full text]
  • Strategies for Transition to Third Generation Cellular Communication in Sri Lanka
    ENGINEER - Vol. XXXX], No. 03, pp.[42 - 55], 2008 © The Institution of Engineers, Sri Lanka Strategies for Transition to Third Generation Cellular Communication in Sri Lanka M. R. M. Hazary and A. T. L. K. Samarasinghe Abstract: The mobile market is currently in the phase of being restructured. The introduction of third generation (3G) networks incurs to high expenditure. These expenses have to be compensated with revenues from successful applications and mobile services, which contribute to a positive Return on Investment (ROI). Researchers' ultimate objective is to understand the user acceptance of 3G services in Sri Lanka and formulation of strategies to make 3G a reality in Sri Lanka. Research findings shows that there is a market i ' acceptance for 3G services in Sri Lanka and the service providers are technically capable of absorbing the technology in to their systems. Further implementation should prioritize on the delivery on benefits to customers rather than clever technology. Key Words: Third generation (3G) ,Mobile market, restructuring, Return on Investment (ROI),technology, Strategies 1. Introduction operations in late 1980's or early 1990's, but some are still new to the business with regard to the 1.1 Background new technologies. But within few years some operators were able to reach the standard of Economic growth, the pace of technical change, developed country operator's technology. and the element of mobility in modern lifestyles, will continue to drive demand for mobile It is decision time, as many mobile operators must services. Mobile services will grow in number now commit to 3G rollouts and launches.
    [Show full text]
  • Bangladesh June 2017
    Eradicating poverty and promoting prosperity in a changing world Voluntary National Review (VNR), 2017 Government of the People’s Republic of Bangladesh June 2017 "Let us together create a world that can eradicate poverty, hunger, war and human sufferings and achieve global peace and security for the well-being of humanity." Father of the Nation Bangabandhu Sheikh Mujibur Rahman at the UNGA in 1974 ii Foreword I am happy to learn that a Voluntary National Review (VNR) report on SDGs has been prepared for presenting at the High Level Political Forum (HLPF) in New York in July 2017. Bangladesh is among the 44 countries to present VNR report on the two-year progress of SDGs implementation. Bangladesh today is a shining example of a development miracle. During the last 8 and half years, Bangladesh’s socio-economic condition has changed substantially. We have earned international acclamations for our tremendous success in MDGs implementation, particularly in the areas of poverty alleviation, food security, primary school enrolment, gender parity in primary and secondary level education, infant and under-five mortality rate, maternal mortality ratio, immunization coverage, and reduction of communicable diseases. We are on right track to become a middle-income country by 2021 and a developed one by 2041. We are committed to redoubling our efforts to achieve SDGs targets. We have taken some concrete initiatives in this regard. The SDGs priorities have adequately been reflected in our medium-term development outline, the Seventh Five Year Plan (2016-2020), which came out almost simultaneously with SDGs declaration. The Plan integrates well the SDGs within the broader agenda of the economic, social and environmental development of the country.
    [Show full text]
  • In Emerging Markets
    IN EMERGING MARKETS A list of the global companies with the Enterprise expertise to deliver profitability to 5G: Cisco (It’s a short list.) Over 85 percent of service provider CEOs agree that enterprises are key to monetizing 5G.1 Cisco has the expertise to make the transition to 5G seamless and profitable. Find out why at cisco.com/go/5g 1. Global Mobile Trends 2018, GSMA Intelligence, 2018. ©2019 Cisco and/or its affiliates. All rights reserved. 5G IN EMERGING MARKETS Contents 04 Foreword by James Barton DEVELOPING TELECOMS 05 Partners CISCO / MATRIXX / OOREDOO / ZTE 07 5G Statistics DEVELOPING TELECOMS 10 Evaluating Market Opportunities of 5G in Emerging Markets By Malik Saadi ABI RESEARCH 16 Enabling the Telco Cloud Platform By Omar Sultan CISCO 21 5G To Follow a Politicized Path in Developing Markets: Telcos Beware By Matt Walker MTN CONSULTING 27 Monetizing 5G in Emerging Markets By Jennifer Kyriakakis MATRIXX SOFTWARE 31 Video: Jio & Cisco Network Parnership in India is Transforming Lives CISCO 32 5G: The Opportunity for the Emerging Markets to Drive Innovation By Leonard Lee NEXTCURVE 39 Making 5G a Reality For All; Taking an Evolutionary Approach By Sheikh Saud Bin Nasser Al Thani OOREDOO 44 ZTE Accelerates the Commercial Use of 5G Networks with Innovative Technologies By Alex Wang ZTE 47 Neutral Host Networks: Emerging Markets Dean Bubley DISRUPTIVE ANALYSIS 54 Farms, Food, and 5G By Dan Kurschner And Susan Daffron CISCO www.developingtelecoms.com | October 2019 3 5G IN EMERGING MARKETS Foreword by James Barton Are emerging markets ready for 5G? Releasing a report exploring 5G in emerging markets might seem a little premature – after all, the first launches of commercial 5G networks have taken place just this year across several developed markets.
    [Show full text]
  • Nigeria: How Africa's Largest Economy Is Prioritising
    1110 Vermont Avenue, Suite 500 Washington, DC 20005 USA www.a4ai.org NIGERIA: HOW AFRICA’S LARGEST ECONOMY IS PRIORITISING AFFORDABLE INTERNET The Federal Republic of Nigeria is a regional and global powerhouse. The country has just overtaken South Africa to become Africa’s largest economy, and around one in four Africans is Nigerian. What happens in Nigeria matters – not just around the continent but also around the globe. This short case study from the Alliance for Affordable Internet (A4AI) examines the state of Broadband Affordability in Africa’s most populous country. It also takes a closer look at Nigeria’s Approved ICT Policy and its new Broadband Plan and identifies the key opportunities and challenges facing the country as it aims to increase broadband penetration rates five-fold in the next five years. 1 1110 Vermont Avenue, Suite 500 Washington, DC 20005 USA www.a4ai.org 1. AFFORDABILITY Simply put, broadband remains unaffordable for the vast majority of Nigerians. Fixed-line broadband subscriptions cost an average of 39% of average income, with the same figure for mobile broadband packages hovering around 13%. Yet these figures do not reveal the true scale of the challenge. In 2010, around 80% of Nigerians earned $2 a day or less – $730 per year – a little more than half of the 2012 national average income of $1,440.1For these people living below the poverty line, affordable access to the Internet remains even further out of reach. Reflecting the high cost of broadband in the country, in 2013 Nigeria was ranked 142 out of 169 countries by the International Telecommunication Union (ITU) for the affordability of a fixed-broadband connection and 99 out of 126 countries for a prepaid 500MB mobile broadband connection.2 ITU Mobile broadband prepaid ITU Mobile broadband prepaid handset Country handset prices (500MB) (Rank) prices (500MB) as % of GNI P.C.
    [Show full text]
  • IFC Mobile Money Study 2011
    IFC ADVISORY SERVICES | ACCESS TO FINANCE IFC Mobile Money Study 2011 SRI LANKA In Partnership with the Republic of Korea IFC ADVISORY SERVICES | ACCESS TO FINANCE IFC Mobile Money Study 2011 SRI LANKA In Partnership with the Republic of Korea International Finance Corporation 2011. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, DC 20433 Internet: www.ifc.org The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such attributions and notices as we may reasonably require. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the govern- ments they represent. The contents of this work are intended for general informational purposes only and are not intended to con- stitute legal, securities, or investment advice, an opinion regarding the appropriateness of any investment, or a solicitation of any type.
    [Show full text]
  • Telecommunications Sector and Regulatory Performance in Sri Lanka: a Tale of Missed Opportunities?
    Final Report: Sri Lanka Case Study for Six Country, Multi-Component Project May 2007 Telecommunications Sector and Regulatory Performance in Sri Lanka: A Tale of Missed Opportunities? Malathy Knight-John Institute of Policy Studies of Sri Lanka1 Study done for LIRNEasia 1 The views expressed in this study are those of the author and do not necessarily reflect those of the Institute of Policy Studies of Sri Lanka. Table of Contents Acknowledgments 3 Introduction 4 Methodology and limitations 7 Supply-side indicators in context: key reform and regulatory 8 episodes in the sector Perceptions on regulatory efficacy: Telecommunications Regulatory 20 Environment (TRE) survey in Sri Lanka The future: bridging the gaps 24 References 26 Annexes 27 2 Acknowledgments The author gratefully acknowledges the timely inputs provided by key stakeholders in the telecommunications policy space for the TRE survey and for the compilation of supply- side indicators for Sri Lanka. The extensive input provided by Indika Siriwardene, Data Base Manager, Institute of Policy Studies (IPS) is greatly appreciated. The valuable assistance provided by my colleagues at the IPS: Dilani Hirimuthugodage, Jeevani Kapugama, Amrit Rajapakse, Shantha Jayasinghe and Nirmali Sivapragasam in carrying out the TRE survey is also acknowledged. 3 1. Introduction Telecommunications sector reforms in Sri Lanka began in 1980 with the de-linking of government owned posts and telecommunications services. From then on, the sector experienced fundamental changes with the restructuring and partial privatization of the state-owned incumbent operator; permitting market entry in the mobile telephony market; competition in the fixed wireless local loop (WLL) segment of the fixed market; and the establishment of a five-member regulatory commission with its own fund and with relatively more workable independence than a typical government department in Sri Lanka.
    [Show full text]
  • The Welfare Effects of Mobile Broadband Internet
    Policy Research Working Paper 9230 Public Disclosure Authorized The Welfare Effects of Mobile Broadband Internet Evidence from Nigeria Public Disclosure Authorized Kalvin Bahia Pau Castells Genaro Cruz Takaaki Masaki Xavier Pedrós Tobias Pfutze Carlos Rodríguez-Castelán Hernan Winkler Public Disclosure Authorized Public Disclosure Authorized Poverty and Equity Global Practice May 2020 Policy Research Working Paper 9230 Abstract This paper estimates the impacts of mobile broadband cover- The estimates show that mobile broadband coverage had age on household consumption and poverty in Nigeria, the large and positive impacts on household consumption levels largest economy and mobile broadband market in Africa. which increased over time, although at a decreasing rate. The analysis exploits a unique dataset that integrates three Mobile broadband coverage also reduces the proportion of waves of a nationally representative longitudinal house- households below the poverty line, driven by higher food hold survey on living standards with information from and non-food consumption in rural households. These Nigerian mobile operators on the deployment of mobile effects are mainly due to an increase in labor force partici- broadband (3G and 4G) coverage between 2010 and 2016. pation and employment, particularly among women. This paper is a product of the Poverty and Equity Global Practice. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp. The authors may be contacted at [email protected]. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues.
    [Show full text]
  • Enabling Private Investment in 5G Connectivity in Emerging Markets—An Assessment of Challenges and Policy Options by Georges V
    www.ifc.org/thoughtleadership NOTE 102 • APR 2021 Enabling Private Investment in 5G Connectivity in Emerging Markets—An Assessment of Challenges and Policy Options By Georges V. Houngbonon, Carlo Maria Rossotto, and Davide Strusani This note proposes a high-level framework to assess challenges and policy options to enabling private sector-led investment in 5G connectivity in emerging markets. 5G is the latest mobile network technology and it has the potential to provide high-speed Internet connectivity and enable digital transformation across multiple sectors of an economy. The proposed framework leverages industry data to articulate the digital divide and benchmark the enabling environment for 5G connectivity in emerging markets. The note concludes with recommendations on policy options and business strategies, drawing from early experiences in advanced markets and major opportunities and challenges in emerging markets. Key Findings • 5G may take longer to reach maturity in emerging markets (EMs) economy in parallel with network expansion to drive further than previous generations of mobile technologies under the current digitalization. The second biggest constraint is limited availability of enabling environment. basic digital infrastructure. • The negative impact of such a delay could be significant and • In Sub-Saharan Africa, limited availability of broadband and data includes a widening of the digital divide and limited efficiency gains infrastructure is the biggest barrier to 5G availability. Latin America across economic sectors
    [Show full text]