Economic policy

Today’s digital developments in Information and Communication Technologies (ICT) requires affordable universal access beyond voice or text messages (short message service – SMS) carried over mobile phones, such as mobile money and the internet at broadband speeds. The World Development Report 2016 on Digital Dividends argues that first-generation supply-side policies for the ICT sector, which aimed at universal access and affordability, have proved highly successful for voice services and selected applications such as mobile payment services using the same 2G platform as the voice service. With the growth of the ICT sector and the development of bandwidth-heavy applications, the policy focus is progressively shifting from solving supply-side challenges (such as how to ensure affordable universal access to networks) to addressing demand-side challenges (such as how to ensure that networks are open and safe). This will allow individuals, governments, and enterprises to take full advantage of the digital revolution and reap the Digital Dividend.
This article reviews the state of the sector’s performance in AFCW3 countries and highlights a lagging
reform agenda along with risks of the emergence of a cozy oligopoly market structure, issues related to distressed state-owned operators, ineffective implementation of universal access and service policies and programs, and inappropriate taxation of the sector. The note makes the case for governments to tackle the unfished reform agenda if the sector is to achieve better development outcomes in terms of faster growth, more jobs as well as better services.