EVENT REPORT Realizing Digital Dividends for Sri Lanka's Youth
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EVENT REPORT Realizing digital dividends for Sri Lanka’s youth through inclusive livelihood policies Launch of World Development Report 2016 in Colombo & related LIRNEasia research 6 December 2016, Union Ballroom, Hilton Residency, Colombo, Sri Lanka This work was carried out with the aid of a grant from the International Development Research Centre, Canada and the Department for International Development UK 1 1.0 Context Sri Lanka has a relatively low unemployment rate. It was 4.7 percent in 2015. However, the picture looks less rosy when the youth unemployment rate of 21.7 percent and the labor force participation rate of 54.9 percent are also taken into account. Women’s labor force participation is extremely low, at 35.1 percent, dramatically below that in comparator countries.1 Table 1: Male and female labor force participation, 2012-14, Sri Lanka and comparators 2012 2013 2014 Women Male Women Male Women Male Ghana 67.2 71.2 67.3 71.4 67.5 71.6 Indonesia 51.3 84.4 51.4 84.2 51.4 84.0 Sri Lanka 35.0 76.4 35.1 76.3 35.1 76.2 Thailand 64.4 80.8 64.3 80.7 64.2 80.5 Vietnam 72.8 81.9 73.0 82.2 73.2 82.5 Source: http://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS Anecdotes abound about labor shortages in agriculture and in the construction industry and about high demand for openings in government and in the service sector. It is in this context that the current government has promised to create one million new jobs by 2020 (amounting to 8 percent of the present labor force) and to increase women’s participation in the labor force to 40 percent. Information and Communication Technologies (ICTs) offer many opportunities for persons unable to or unwilling to participate in conventional employment. The 2016 World Development Report of the World Bank entitled Digital Dividends describes the opportunities created for such groups by ICTs. It also discusses the need for complementary (or “analog”) actions by government and other actors to realize the full benefits of ICTs. The report is worthy of greater discussion in Sri Lanka, which had some of the lowest data and voice prices2 and has taken pride in a high level of literacy. Yet, its Internet use is low. Partly as a result of low Internet use and partly because the analog complements have been lacking, digital dividends have not been realized fully. In addition to WDR findings will be complemented with findings from LIRNEasia research in Sri Lanka dealing with online freelancing and from recent Systematic Reviews of research on the impacts of ICTs in rural and urban areas. 1 For greater detail, see Samarajiva, Rohan (2016 October 25). Why Sri Lanka needs one million jobs by 2020. Daily FT. http://www.ft.lk/article/575892/Why-Sri-Lanka-needs--one-million-jobs-by-2020 2 The recent substantial tax increases may change this. Samarajiva, Rohan (2016 November 3). Be 2 The recent substantial tax increases may change this. Samarajiva, Rohan (2016 November 3). Be thankful: We only pay Rs 50 for every 100 in mobile charges. Daily FT. http://www.ft.lk/article/577695/Be-thankful--We-only-pay-Rs--50-tax-for-every-100-in-mobile- charges 2 2.0 Launch of WDR 2016 in Colombo & related LIRNEasia research LIRNEasia in association with World Bank Group organized the Launch of World Development report 2016 and related LIRNEasia Research. The launch event was commenced by World Bank Country Director for Sri Lanka & Maldives, Idah Pswarayi-Riddihough framing the World Development Report for 2016 titled “Digital Dividend”. The World Bank Country Director mentioned that ICT was a critical contributor in addressing the governance agenda that the Government was emphasizing, more so because Sri Lanka had committed to being a part of an open government partnership. In addition, she emphasized the need of having a broad digital development agenda to drive technology adaption in business, skills development and good governance. She said, as contributor to jobs in Sri Lanka, the ICT sector generates less than 2% of employment. Thereby, there is potential to improve and support the Government’s vision to create one million jobs. Followed by the address of World Bank country Director for Sri Lanka & Maldives, World Bank’s senior regulatory specialist Rajendra Singh presented the key insights from WDR report. In his address he highlighted the role of Digital technologies in transforming businesses, governments and people’s lives globally and locally. The WDR findings was complemented with findings from LIRNEasia's Systematic Reviews findings on the impact of ICTs in rural areas and business growth in MSMEs in urban areas, along with that of online freelancing in Sri Lanka. LIRNEasia's Senior Researcher, Suthaharan Perampalam presented the findings on online freelancing, an emerging employment opportunity. Suthaharan said, based on a nationally representative survey LIRNEasia estimates there could be 17,000 to 22,000 freelancers in Sri Lanka registered within multiple platforms and selling their skills all around the world. Freelancers collectively earn revenue of USD 18.7 million for the country by selling their services internationally. He further said, those engaging in part-time freelancing work earn a monthly income of approximately Rs.20, 000 - 30,000 in addition to a salary. Sri Lankan Freelancers mentioned English skills in not a pre requisite to become successful in this field; just the basic skills would be adequate to communicate the message to the client. Prof. Rohan Samarajiva and Vigneswara Ilavarasan shared the findings from LIRNEasia Systematic Reviews on impacts of ICTs on livelihoods and employment. Professor Rohan Samarajiva highlighted the economic impact of mobile phones in low and middle-income countries. He showed that the systematic results illustrated that mobile coverage in rural areas make markets more efficient by matching demand and supply better, leading to both consumer and producer welfare gains by reducing price 3 dispersion and subsequently leading to reduced waste of perishable agricultural produce and fish. He highlighted that mobile coverage in rural areas contributes to economic development. Professor Vigneswara Ilavarasan presented the findings of the SR titled “Does access to business relevant information through networked devices enhance the business growth of the urban MSMEs in low and middle income countries?” The meta-analysis concluded that impacts on both business growth and internal efficiency, though positive, were small and statistically insignificant. He stressed the need for more causal studies to be carried out with rigorous sampling techniques to enable further generalizations. A panel discussion moderated by Tahani Iqbal (Specialist, Regulatory Strategy and Development, Axiata Group Berhad) then took place on challenges in achieving Digital Dividends in Sri Lanka. Panel comprised representatives from the Government of Sri Lanka and Chambers of Commerce & Industry. Mr. Wasantha Deshapriya (Secretary – Ministry of Telecom and Digital Infrastructure), Dr.Sankalpa Gamwarige (SLASSCOM), Dr. Jagath Alwis (Ceylinco Insurance) and Mr. Rajendra Singh (World Bank Senior Regulatory Specialist) 4 3.0 Event Participants Twenty-eight participants representing government institutions, Industry trade associations, LIRNEasia and the World Bank attended the event. Table 1: Participant List (Government, industry and NGOs) Title Participant Organization Position Ms. Dilinika Pieris World Bank Communications Head Ms. A.I.B. Madahapola Dam safety & Water Technology officer Resources Planning project Dr. Anoja Herath State Ministry of Agriculture Director - Development Dr. Anuk Premachandra World Bank STT Mr. Arul Sivagananathan SLASSCOM Chairman Dr Chatura Rodrigo LIRNEasia Senior Research Manager Mr. Chiranthi Rajapakse LIRNEasia Senior Researcher Mr. D.V.Bandulasena State Ministry of Agriculture Secretary Mr. Darsana Bandara Ministry of Provincial council Project Coordinator Samarakoon and local Government Mr. Gayani Hurulle LIRNEasia Researcher Mr. Idah Pswarayi-Riddihough World Bank Country Director Mr. Isura Silva Sarvodaya Fusion Dr Jagath Alwis Ceylinco Insurance Director Technical Dr Jagath Seneviratne ICTA ,M&E Head Ms Jekhan Aruliah Ms P. Vigneswara Ilavarasan IIT - Delhi Professor Ms Piyumi Gamage LIRNEasia Researcher Ms Rajendra Singh World Bank Consultant Mr. Rebeeca David World Bank STT Dr. Rohan Samarajiva LIRNEasia Chairman Ms. S.A.N. Dayaratne Dam safety & Water Electrical Engineer Resources Planning project Dr. Sameera Jayawardena ICTA Programme Manager Mr. Sankalpa Gamwarige Zone24x7 General Manager Ms Shazna Zuhyle Senior Research Manager Mr Sriganesh Lokanathan LIRNEasia Team Leader Ms Suthaharan Perampalam LIRNEasia Senior Researcher Ms. Tahani Iqbal Axiata Group Mr Wasantha Deshapriya Ministry of Telecom and Secretary Digital Infrastructure 5 Participants from Media Organization Eighteen participants represented from media organization. Table 2: Participants from the Media Title Participant Organization Mr Azhar Razak Nation/ Rivira Mr Buddhika Brahmanage Dinamina Mr Harshana Thushara Silva Lankadeepa Mr Feizal Samat Sunday Times Mr Kandeepa Wettamuny Daily Mirror Mr Ishan Gamage Ceylon Today Mr R.K.Rudran Virakesari Mr Shirajiv Sirimanne Daily News Mr Steve Morrell The Island Mr Suresh Perera The Island Mr Thilak Perera Thinakkural Mr Damith Wickremasinghe Daily Mirror Ms Charumini De Silva Daily FT Mr Lasantha Daily FT Ms Indira Fernandopulle Sudaroli Mr C.G.Prashantha Lanka Shree News Ms Sujata Premaratne Mr Ranjith Premaratne 6 4.0 Event Agenda Table