Final project assignment for World Bank course 'Unlocking Investment and Finance in Emerging Markets and Developing Economies" - P Doig

1. B20: “Society 5.0 for SDGs”
New Tech: From Enabler to Ecosystem
Considerations for a
National Financing Strategy
The role of technology and innovation is rapidly changing from enabler to ecosystem, a more
pervasive entity touching every aspect of society. The B20, a coalition of business leaders,
presented this depiction in the form of Society 5.0 at the G20 Tokyo Summit in June 2019.
Welcome to the world of NewTech, where daily experiences and interactions are being
transformed through the seamless integration of business processes and technology capabilities.
The pace at which this integration is happening suggests a need for cooperation amongst nations
greater than ever before. But first, each country needs a vision of how it plans to adopt NewTech.
Creating an integrated national socioeconomic framework (INSF) is the first step. Such a
framework will define the experiences and interactions to be enabled or changed by technology
and innovation, which must be done prior to an integrated national financing framework (INFF).
The UN and WBG should provide guidance with strategic planning and benchmarking of all INSF
phases from current state to realizing the future vision. Representation of countries in forums such
as the Commission on Science and Technology for Development (CSTD) and the General Assembly’s
Technology Bank for Least Developed Countries may further the process of developing INSFs
through the sharing of best practices and lessons learned.
Ref 1 Ref 2
P. Doig – p1

2. Do
(anything)
Future vision
for a national economy
begins with
understanding the
experiences of all
participants
Satisfactory transactions between
parties are an essential part of a
thriving economy
Q: How do NewTech and digital
transformation affect these
transactional experiences?
Illustration
The Purchasing
Process:
Downloading
an app
APP

1. Download
2. Accept T&C
1. Check SW version
2. Check HW version
3. Get patches
4. Adjust settings
5. Configure options
6. Call your teenagers
or the Help line
99. Accept T&C
SW
OldTech NewTech
The buying process for SW:
Customers prefer NewTech:
‘easy’ & standard over
‘hard’ & customizable
Customers have given businesses
access to their devices, the device
configuration, their data and future
upgrade capability
...and yet they still must accept the
T&C as-is (no alternatives offered)
How can we provide better
experiences in the future?
Scope & Scale
Transform any
transaction or process
into a frictionless
experience
Where to Start
Integrated National
Socioeconomic
Framework (INSF)
for a view of
future capabilities
and experiences
Buy
Make Service
Starting with eCommerce, NewTech is
making transactions easier, faster, and
more agile...i.e., ”frictionless”. The need for
improving cross-border transactions, for
example, was highlighted in recent G20-
B20 discussions at the 2019 Tokyo Summit
Going forward, NewTech can streamline a
broad variety of business processes into a
frictionless experience using automation,
AI, IoT, big data, and more... To what
extent will each sector adopt NewTech?
Countries need a clear vision of their
future capabilities and experiences, and
the role NewTech will have in each area.
Oversight, indeed foresight, is needed
now more than ever from UN, WBG, and
other multilateral collaborations so that:
 nations can focus on their inherent
strengths, enhanced by NewTech
 nations can fully participate in the
modern international economy,
incorporating the latest tech advances
in accordance with their vision & goals
Governing
Banking
Agriculture
Industry
Services
Smart Cities
Environment
...and more
...while engaging
NewTech:
how to design the best experiences, given all
key considerations and concerns (privacy, data,
employment, regulation..)
INSF: A Country’s Future Vision
Envisioning Future Experiences with NewTech
Security, Privacy
Connectivity
Free flow of Data
Cross-Border Transactions
Tax, Regulation
Distributed Ledger
Customers
Government
Workers
Things (IoT)
Environment
Suppliers
...and more
Banking &
Finance
P. Doig – p2

3. Challenges
Case Study: Ghana
Personal
Remittances GDP
Gross Domestic Product
FDI
Foreign Direct Investment,
Net Inflows
• Key economic indicators increased sharply since the discovery of oil and its
delivery to market in 2010 [Ref 3]
• However, this strong and fast growth led to high government debt (70.5%
of GDP) and structural challenges including taxation and banking systems
[Ref 4]
• Ghana is now the second fastest growing African economy, mainly due to
oil, gold, and cocoa industries [Ref 5]
• Ghana’s largest sources of funds include emigrant remittances (42%),
foreign direct investment (39%), and ODA assistance (17%) [Ref 6]
• Agriculture is the major employer: 54% of the workforce (21% of GDP)
Services sector employs 28% (51% of GDP)
Industry sector employs 18% (28% of GDP) [Ref 7]
• How can Ghana best manage its growth and increase international
presence while addressing its structural demands domestically?
Vision: The Beautiful Ghana Initiative
People – Partnerships – Productivity
for a Bright and Beautiful Future
Opportunities
Beautiful Ghana is a vision of a
peaceful and prosperous nation
achieved through...
 Participation of all sectors
 Alignment with SDGs
 Protection of natural
resources
 Promotion of modern,
efficient industry
 Public-private partnerships
for sustainable development
Agriculture
GovernmentMSME’s
Natural
Resources
Industry
Health &
Welfare
Banking &
Finance
Energy
Infrastructure
Education
BG
To strengthen and further develop the
contribution of agricultural and independent
workers in the face of growing disparities with
those in the industrial sector
 DRM (Domestic Resource Mobilization) program to reduce government debt and
strengthen the tax system (promoting citizen engagement, accountability)
 WBG support for government-sponsored local public services (farm and small
business subsidies, skills training)
 WBG program to incorporate science / technology advances that improve yield
and productivity, and facilitate market participation (local or remote)
 Private investment to strengthen communications network, increase mobile
device adoption and usage, and improve access to data (weather, market, general
knowledge)
To maintain balance and diversity in sector
contributions to the economy, and minimize
dependence on oil
 Government program to reform banking system, providing credit to MSMEs and
increasing market capitalization; also to assess nontraditional finance sources
 WBG program to encourage innovation and commercial opportunities
(ex. new markets for chocolate products - in trail mix, protein bars, ...)
 Impact investments to promote clean energy – wind farms, hydro electric
 WBG/MIGA consultation to explore investment protection and diversification
strategies for private sources, considering the volatility of oil and prices
To protect natural resources and further
progress in achieving Sustainable Development
Goals
 WBG consultation to establish a comprehensive information system to track
metrics and progress toward SDG goals (1) within country and over time and (2)
relative to neighboring countries and similar profile countries worldwide
 Public-private partnership to promote local and national park system, tourism
NewTech Adoption Scale
Lo Med Hi
P. Doig – p3

4. References
United Nations, Inter-agency Task Force on Financing for Development,
Financing for Sustainable Development Report 2019
(New York: United Nations, 2019),
available from: https://developmentfinance.un.org/fsdr2019
B20 Tokyo Summit Joint Recommendations “Society 5.0 for SDGs”
(15 March 2019)
available from:
http://www.b20tokyo.org/documents/pdf/Joint_Recommendations_eng.pdf
The World Bank – Data Site
https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD
OECD – Organization for Economic Cooperation and Development
http://www.oecd.org/countries/ghana/revenue-statistics-africa-ghana.pdf
The World Bank – Ghana Country Overview
https://www.worldbank.org/en/country/ghana/overview
The World Bank – World Development Indicators
https://public.tableau.com/views/Bigpictureoftotalresourcereceiptsbyyear/Byy
ear?:embed=y&:display_count=yes&publish=yes&:showVizHome=no
CIA World Factbook – Ghana
https://www.cia.gov/library/publications/the-world-factbook/geos/gh.html
P. Doig – p4