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What World Do We Want in 2050?
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Two Futures for Global Development
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International finance is under considerable pressure: originally prioritized toward economic growth in poorer countries, it is now meant to deliver broad-based sustainable development including global public goods such as climate and pandemic response to say nothing of refugee hosting costs. In a future of slower growth for richer countries, will there be sufficient finance to support these goals, and where will it be directed? Based on a paper published today, I discussed this question at CGD’s Development Leaders Conference in Oslo last week.
I utterly didn’t foresee the revolution in mobile internet services, and the incredibly innovative ways that it would be used. Back in 2002, 11 percent of the world’s population were internet users. Today, it is 63 percent the considerable majority using connections over cheap mobile phones. Even in the world’s poorest countries usage rates have climbed above a fifth of all people. And five years after I wrote that ‘digital divide’ paperi, Kenya’s M-PESA mobile money system launched, using internet technologies to start a revolution in access to financial services embracing users who could bank by text. Worldwide since 2011, the proportion of adults with a bank account or mobile money service provider has climbed from one half to over three quarters. And the services poor people can access via mobile have exploded, perhaps especially in India. The impact of the mobile communications revolution has been large enough to upend GDP statistics in a number of developing countries
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