Connect with us

Reports

E-Commerce Can Boost Job Creation and Inclusive Growth in Developing Countries

Published

on

E-commerce can flourish in developing countries and in rural areas and be a powerful instrument to create employment for semi-skilled workers, women and other groups, according to a new joint research released by the World Bank and Alibaba Group today.

The report, E-Commerce Development: Experience from China, is based on a combination of statistical data collected for China as a whole, as well as data from a specially commissioned survey of Taobao Villages, rural villages in China heavily engaged in e-commerce. It reviews the patterns and evolution of e-commerce in China and the specific government policies and private sector initiatives, identifies the preconditions needed for its successful development, and examines the links between e-commerce development and household welfare improvements.

According to the report, e-commerce has the potential to overcome market barriers and connect consumers and businesses. It can create jobs directly as well as through logistics services and other parts of the wider e-commerce ecosystem, improve household consumption and reduce inequality by bringing to people in rural areas the convenience, variety, and low prices enjoyed by urban dwellers, and contribute to economic growth by lowering the asymmetry of information and increasing economic efficiency.

“China’s experience shows that developing countries can harness digital technology and e-commerce to create jobs and improve people’s lives,” said Victoria Kwakwa, World Bank Vice President for East Asia and the Pacific, “We hope this report will contribute to discussions on ways to support inclusive growth through digital technology and e-commerce.”

China has one of the largest and fastest-growing e-commerce markets in the world, accounting for more than 40 percent of the total value of e-commerce transactions worldwide. More than 5 percent of total employment in China is in e-commerce. Online purchases have become part of daily life for many Chinese households.

“The rapid development and prosperity of rural e-commerce in China has proved that innovative business started by grass-roots entrepreneurs in rural areas of developing countries can thrive via the e-commerce platform under the right conditions,” said Wen Jia, Partner and President of the Public Affairs of Alibaba Group.

The report finds a positive association between e-commerce and household welfare improvement in rural China. In Taobao Villages, households that participate in e-commerce have incomes 80 percent higher than households that do not participate. E-shop workers have wage levels equal to or higher than workers in urban private industries. Women and younger, better educated households are strong beneficiaries of e-commerce in China.

The report also identifies the risks and challenges that need to be tackled in e-commerce development. These range from regulatory challenges, such as how to regulate platform providers to ensure a level playing field for comparable digital services, protect consumers, and ensure fairness between online and physical vendors to special online risks from cyber security, privacy, fraudulent or defective/counterfeit products, technical concerns regarding electronic payment, and risks stemming from imbalances in competition among platform providers.

The report highlights three enabling factors for e-commerce development: investments in training and skills building to increase human capital; proper infrastructure and logistics; and a conducive business environment.

“The achievements China has made in e-commerce can be explained by the country’s substantial investment in infrastructure over decades and the rapid improvement of its business climate in recent years,” said Gong Sen, Executive Vice-President of China Center for International Knowledge on Development which co-hosted the launch.

Continue Reading
Comments

Reports

Study of Diversity Shows Scale of Opportunity in Media and Entertainment Industries

Published

on

The World Economic Forum’s Power of Media Initiative has compiled a first-of-its-kind compilation of the state of diversity and representation in the media, entertainment and sports industries. The Power of Media initiative is a collaboration between the Platform on Shaping the Future of Media, Entertainment and Sport and the Centre for the New Economy and Society, which are committed to building prosperous, inclusive and equitable economies and societies that create opportunities for all and help to advance voices of underrepresented groups in media content.
 
Produced in collaboration with Accenture, the Reflecting Society: The State of Diverse Representation in Media and Entertainment report assesses the state of diversity across content and creative production in five key sectors: gaming, TV and film, news and publishing, advertising, and sport and sport media. It draws on research, interviews and insights from heads of content, diversity, equity and inclusion leaders, institutes and organizations.
 
Among the key insights, the report notes that:

Progress varies widely between sectors. Gaming, news and publishing lag, while advertising, TV and video have seen progress. According to one study, for example, only 3% of video games had a primary character of colour and only 23% of games allowed players to choose their character’s ethnicity.

Corporations that prioritize diversity and inclusive representation can reap financial benefits. In the film industry, for example, researchers at the University of California, Los Angeles (UCLA) have shown that movies without authentic representation underperform at the box office and large-budget movies that rank below average in inclusive representation underperform by around 20% of their budget at opening box office weekend.

Attitudes among consumers towards diversity can be shaped at an early age. Despite this, a study by the Cooperative Children’s Book Center (CCBC) at the University of Wisconsin-Madison found that fewer than 4% of books contained significant LGBTQ+ content, while only 11% had significant African or African American content or characters.

Meaningful progress requires policies that remove structural barriers and behaviours. For example, in 2020, the Academy of Motion Picture Arts and Sciences added 819 new voting members, of which 45% were women and 35% were from historically under-represented groups. This resulted in the 2021 Oscars shortlist being the most diverse ever.


While each media sector may face different contexts and challenges, the report highlights a path forward for the media, entertainment and sports industry. The Forum’s Power of Media Initiative has created a Taskforce on Diversity, Equity and Inclusion to accelerate the three priority areas that the report identifies:

Measurement – The report highlights major gaps and inconsistencies in measurement that hold back progress and data-led action. The taskforce will work to create data-driven benchmarks and metrics to formalize the measuring of progress and goal setting.

Accountability – The taskforce will strive to create greater transparency and accountability in initiatives and results.

Community and collaboration – The taskforce will enable community-building among peers across the industry and provide a safe space to explore sensitive and new topics in diversity, equity and inclusion and share best practices. “The Power of Media Taskforce on Diversity, Equity and Inclusion [DE&I] brings together leaders from across the industry, including those in creative leadership roles, independent non-profits focused on DE&I, corporate executives, and DE&I professionals, to answer this call and drive change as a community,” said Cathy Li, Head of Media, Entertainment and Sport Industries at the Forum.

“It became clear in our work with the Forum that the relationship between audience diversity and business performance is strong, that the people who work in the industry shape the stories that get told – and that more diverse stories attract more diverse creators,” said Kristen Hines, Managing Director at Accenture. “That change, however, will require transparency and honest reflection, real commitment to results and accountability of leaders to improve diversity and inclusion from top to bottom, and particularly in senior roles. We’re excited to publish this report and to actively support the Forum taskforce in driving long-term and lasting change.”

In the months ahead, the Power of Media Initiative will continue to tackle the challenge of diversity and representation in media, entertainment and sports, with the aim of leveraging the Forum’s global network of leaders to mobilize progress.

Continue Reading

Reports

Archipelagic Economies: Spatial Economic Development in the Pacific

Published

on

A new World Bank report on the challenges facing the Pacific region’s outer island communities identifies investment in people and livelihoods as a key for inclusive economic growth.    

Archipelagic Economies: Spatial Economic Development in the Pacific looks at the challenges Pacific governments must address to provide services and infrastructure to populations spread across hundreds of islands spanning the vast Pacific Ocean. The report puts forward a series of practical steps that countries can take to overcome these challenges in a way that supports resilient and inclusive economic growth.

“Many Pacific countries are faced with significant challenges in delivering services and connecting remote, outer island communities; with difficult decisions around resources and how to best invest often limited resources into outer island communities,” said the report’s lead author, World Bank Lead Economist for Fiscal Policy and Sustainable Growth Robert Utz.

“This report aims to provide Pacific governments, development partners and decision-makers with evidence to assess options for fostering development for the people in those outer islands, so they can make stronger contributions to the larger economic development of the whole country.”   

The report identifies six guiding economic policy principles:

1)     Policy solutions that seek to achieve equitable increases in living standards need to be grounded in an understanding of the economic implications of the Pacific region’s unique economic geography.

2)     Outer islands’ development should be assessed from a spatial perspective; one that considers interactions with the country’s main island and the region beyond.

3)     A balanced approach that combines investments in urban areas to accommodate migration from outer islands to main islands with support for outer island populations is likely to achieve better welfare and equity outcomes than an approach that neglects one side or the other.

4)     Growth-enhancing investments should be guided by clearly-identified opportunities, rather than by a desire to try to equalize economic opportunities across islands.

5)     With limited scope to close the gap in economic opportunities between outer and main islands investments to promote livelihoods and human development should be given preference.

6)     Outer islands are subject to a complex political economy of intra-island and outer island-main island relationships that need to be considered in development interventions.

“This is an important and timely study,” said Denton Rarawa, Senior Economic Advisor at the Pacific Islands Forum Secretariat. “The current COVID-19 crisis has highlighted the need to address the institutional, service delivery and capacity gaps of nations across the Pacific. As we strive for greater vaccination rates and begin to think about how we’d like to rebuild after the pandemic, I believe this report has a lot to offer the future of the Pacific, especially in our efforts to leave no one behind.”   

The Archipelagic Economies report is a companion publication to the World Bank’s Pacific Possible series, which in 2017 and 2018 looked at opportunities for economic growth in Pacific Islands Countries across key sectors including tourism, fisheries, and labour mobility. 

The World Bank works in partnership with 12 countries across the Pacific, supporting 87 projects totaling US$2.09 billion in commitments in sectors including agriculture, aviation and transport, climate resilience and adaptation, economic policy, education and employment, energy, fisheries, health, macroeconomic management, rural development, telecommunications and tourism.

Continue Reading

Reports

Global economic recovery continues but remains uneven

Published

on

The global economy is growing far more strongly than anticipated a year ago but the recovery remains uneven, exposing both advanced and emerging markets to a range of risks, according to the OECD’s latest Interim Economic Outlook.

The OECD says extraordinary support from governments and central banks helped avoid the worst once the COVID-19 pandemic hit. With the vaccine roll-out continuing and a gradual resumption of economic activity underway, the OECD projects strong global growth of 5.7% this year and 4.5% in 2022, little changed from its May 2021 Outlook of 5.8% and 4.4% respectively.

Countries are emerging from the crisis with different challenges, often reflecting their pre-COVID 19 strengths and weaknesses, and their policy approaches during the pandemic. Even in the countries where output or employment have recovered to their pre-pandemic levels, the recovery is incomplete, with jobs and incomes still short of the levels expected before the pandemic.

Large differences in vaccination rates between countries are adding to the unevenness of the recovery. Renewed outbreaks of the virus are forcing some countries to restrict activities, resulting in bottlenecks and adding to supply shortages.  

There is a marked variation in the outlook for inflation, which has risen sharply in the US and some emerging market economies but remains relatively low in many other advanced economies, particularly in the euro area.

A rapid increase in demand as economies reopen has pushed up prices in key commodities such as oil and metals as well as  food, which has a stronger effect on inflation in emerging markets. The disruption to supply chains caused by the pandemic has added to cost pressures. At the same time, shipping costs have increased sharply.

But the Interim Outlook says that these inflationary pressures should eventually fade. Consumer price inflation in the G20 countries is projected to peak towards the end of 2021 and slow throughout 2022. Wage growth remains broadly moderate and medium-term inflation expectations remain contained.

The report warns that to keep the recovery on track stronger international efforts are needed to provide low-income countries with the resources to vaccinate their populations, both for their own and global benefits.

Macroeconomic policy support is still needed as long as the outlook is uncertain and employment has not yet recovered fully, but clear guidance is called upon from policymakers to minimise risks looking forward. Central banks should communicate clearly about the likely sequencing of moves towards eventual policy normalisation and the extent to which any overshooting of inflation targets will be tolerated. The report says fiscal policies should remain flexible and avoid a premature withdrawal of support, operating within credible and transparent medium-term fiscal frameworks that provide space for stronger public infrastructure investment.

Presenting the Interim Economic Outlook alongside Chief Economist Laurence Boone, OECD Secretary-General Mathias Cormann said: “The world is experiencing a strong recovery thanks to decisive action taken by governments and central banks at the height of the crisis. But as we have seen with vaccine distribution, progress is uneven. Ensuring the recovery is sustained and widespread requires action on a number of fronts – from effective vaccination programmes across all countries to concerted public investment strategies to build for the future.”

Ms Boone said: “Policies have been efficient in buffering the shock and ensuring a strong recovery; planning for more efficient public finances, shifted towards investment in physical and human capital is necessary and will help monetary policy to normalise smoothly once the recovery is firmly established.”

Continue Reading

Publications

Latest

Americas3 hours ago

Is the US mainstream media the spying arm of the Biden Administration?

The US mainstream media is biased. We’ve all heard this before. There is a reason why so many have turned...

jakarta indonesia jakarta indonesia
Southeast Asia6 hours ago

Impunity for desertion of the Constitution

A collection of scratches depicting the nuances of “totalitarianism” (repressive actions of state stakeholders tend to be authoritarian) and “radicalism”...

Tech News11 hours ago

Lighthouses boost sustainability with Fourth Industrial Revolution transformation

The World Economic Forum announces today the addition of 21 new sites to its Global Lighthouse Network, a community of...

Joe Biden Joe Biden
Southeast Asia13 hours ago

The Race of Supremacy in the Indo-Pacific Region

Amid the growing US-China rivalry for the supremacy, the geopolitics has been altered to gain favour for oneself and outsmart...

Reports15 hours ago

Study of Diversity Shows Scale of Opportunity in Media and Entertainment Industries

The World Economic Forum’s Power of Media Initiative has compiled a first-of-its-kind compilation of the state of diversity and representation...

South Asia18 hours ago

Afghanistan and the Quest for Democracy Promotion: Symptoms of Post-Cold War Malaise

The U.S. withdrawal from Afghanistan should be the first step in a reduced American overseas force posture. Democracy promotion in...

Middle East20 hours ago

UAE-Israel relations risk being built on questionable assumptions

A year of diplomatic relations between the United Arab Emirates and Israel has proven to be mutually beneficial. The question...

Trending