Harnessing information for development: A proposal for a world bank group vision and strategy∗

Revolutionary advances in information technology reinforce economic and social changes that are transforming business and society. A new kind of economy ‐ the information economy ‐ is emerging where trade and investment are global and firms compete with knowledge, networking and agility on a global basis. A corresponding new society is also emerging with pervasive information capabilities that make it substantially different from an industrial society: more competitive, more democratic, less centralized, less stable, better able to address individual needs, and friendlier to the environment. These changes dictate, for all countries, a major adjustment to harness information for economic and social development. This adjustment requires urgent new policies, regulatory and institutional reforms, and investments. Through this adjustment, countries must achieve macroeconomic balance, political stability, and growth amidst global information flows, competition, trade, and investment. Advanced countries are rapidly adjusting. Developing countries must also adjust or risk exclusion from the global economy and severe competitive disadvantage for their goods and services. Fortunately, the information revolution creates both the challenge and the means for countries to adjust to new ways of doing business and to put in place the needed infrastructure of telecommunications and information systems. The information revolution also creates extraordinary new opportunities to attack vexing problems of poverty, inequality, and environmental degradation. To harness information and information technology for its mission of poverty alleviation and sustainable economic development, the World Bank Group will pursue four objectives in its assistance strategy: Widespread and equitable access to communication and information services through accelerated deployment of national information infrastructure and effective integration into international communication and information networks. Systemic improvements in the functioning and competitiveness of key economic sectors through strategic information policies and systems. New ways to use information technology to help solve the most pressing problems of human and economic development ‐ education, health, poverty alleviation, rural development, and care for the environment. Increased impact of the entire range of World Bank Group operations through inclusion of effective information components. The World Bank Group will be a long‐term partner and facilitator for countries adjusting to the information economy. It will cooperate with them on information policy, strategy, and project design at the national and sectoral levels. To this end, it will develop strategic alliances to mobilize worldwide knowledge and financing, including its own. In addition, the World Bank Group will increase the level and effectiveness of the information content of its projects in all sectors and will explore new frontiers of development through information‐intensive projects.