Accepted paper:

Digital platforms and economic development: policies to address inequality

Authors:

Carlo Rossotto (The World Bank)
Mona Badran (Cairo University/ World Bank )
Elena Gasol Ramos (World Bank)
Prasanna Lal Das (The World Bank)
Eva Clemente Miranda (World Bank Group)

Paper short abstract:

Data is core to the competitiveness of nations, regions, and cities, as new business models, including digital platforms, emerge. The platform economy generates winners and losers: governments in emerging markets are keen to implement policies to benefit from digital opportunities, mitigating risks.

Paper long abstract:

Data is core to the competitiveness of nations, regions, and cities, as new business models, including digital platforms, emerge. The platform economy generates winners and losers: governments in emerging markets are keen to implement policies to benefit from digital opportunities, mitigating risks. The interplay of rapidly changing enabling conditions in emerging markets and rapidly changing business models will impact the three main drivers of platform dynamics: network effects, localization and envelopment phenomena and winner-takes-some vs. winner takes all phenomena. In light of these effects, what is the right set of policies to address the risk of inequality in the development of digital platforms in emerging markets? How can the benefits of the platform economy spread to Small and Medium Enterprises, and positively impact local development and rural areas? The paper will assess the main enablers of digital platforms and will identify specific policy and regulatory issues likely to impact an even development of digital platforms in emerging markets. These include: broadband policy and information security, digital payments and geo-localization policies, access to smartphones, digital trade and cyber-technology complements.

panel D01
Digital inequalities and development (Paper)