Information-Led Development
Encyclopedia
Information-led development (ILD) most commonly refers to a development strategy whereby a developing country makes as a primary economic policy focus the creation and development of a national information technology
(IT) sector with the express aim of relying on this sector as an engine of growth. Notable examples of such countries are India
and the Philippines
. Increasingly, tools from information-led development are being used for community economic development in both developed countries and emerging markets.
, and the use of this information in underwriting, as a means to reduce financial exclusion in the United States, where an estimated 54 million Americans are shut out of mainstream credit access as there is insufficient information about them in their credit files to be scored by a credit scoring model. This variant of ILD was pioneered by PERC
, a non-profit policy research organization and development intermediary headquartered in Chapel Hill, North Carolina. Other US-based organizations, including Social Compact and the Local Initiatives Support Corporation, employ variants of ILD, but none has applied this internationally except for PERC.
This development model is gaining traction in emerging markets such as Colombia and South Africa, where the data is being used to reduce financial exclusion and facilitate credit access as a means to build wealth and form assets. It is also attracting increasing attention from development agencies, including USAID, the International Finance Corporation
, the World Bank Group
, and the Consultative Group to Assist the Poor.
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
(IT) sector with the express aim of relying on this sector as an engine of growth. Notable examples of such countries are India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
. Increasingly, tools from information-led development are being used for community economic development in both developed countries and emerging markets.
Information-led development as community economic development
More recently, a new formulation of ILD has emerged. With origins in community economic development in the United States, the new ILD model describes the use of data to generate actionable information or information solutions to development challenges. Examples of this include the inclusion of non-financial payment obligations in consumer credit files, also known as alternative dataAlternative data
In economic policy, alternative data refers to the inclusion of non-financial payment reporting data in credit files, such as telecom and energy utility payments. Only 39 of 178 economies have credit bureaus that currently track alternative data....
, and the use of this information in underwriting, as a means to reduce financial exclusion in the United States, where an estimated 54 million Americans are shut out of mainstream credit access as there is insufficient information about them in their credit files to be scored by a credit scoring model. This variant of ILD was pioneered by PERC
Political and Economic Research Council
PERC, the Policy and Economic Research Council is a Durham, North Carolina based non-profit, non-partisan think tank that concentrates on market-based economic development, both in the United States and internationally...
, a non-profit policy research organization and development intermediary headquartered in Chapel Hill, North Carolina. Other US-based organizations, including Social Compact and the Local Initiatives Support Corporation, employ variants of ILD, but none has applied this internationally except for PERC.
This development model is gaining traction in emerging markets such as Colombia and South Africa, where the data is being used to reduce financial exclusion and facilitate credit access as a means to build wealth and form assets. It is also attracting increasing attention from development agencies, including USAID, the International Finance Corporation
International Finance Corporation
The International Finance Corporation promotes sustainable private sector investment in developing countries.IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States....
, the World Bank Group
World Bank Group
The World Bank Group is a family of five international organizations that makes leveraged loans, generally to poor countries.The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary...
, and the Consultative Group to Assist the Poor.
See also
- Political and Economic Research CouncilPolitical and Economic Research CouncilPERC, the Policy and Economic Research Council is a Durham, North Carolina based non-profit, non-partisan think tank that concentrates on market-based economic development, both in the United States and internationally...
- Local Initiatives Support Corporation
- Economic developmentEconomic developmentEconomic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...