Why in the News
The World Bank Group launched its first digital strategy on 20 October 2026 during the Global AI and Digital Summit in Seoul (South Korea). Its goal is to combine the capacities of the public and private sectors to build cheap digital access, better services and jobs in developing countries. According to the release, more than 2 billion people in the world were offline in 2025; internet use in low-income countries is only 23%, while it is 94% in high-income countries. Over the next 10-15 years, 1.2 billion young people in developing countries will reach working age, while only an estimated 42 crore (420 million) jobs will be created.
The Four Areas of the Strategy
- Expanding trusted connectivity - networks from international cables to homes, schools and clinics; public finance and guarantees to attract shared infrastructure and private investment.
- Making devices and data cheaper - partnership with smartphone makers, mobile companies and financial institutions.
- Digital services and skills - systems for digital identity, payments and secure information sharing; job-linked digital literacy.
- Preparing for AI - "small AI", meaning a cheap AI tool built for a specific task and local need, such as an app that identifies crop disease or an assistant that helps a health worker.
Alongside, an "AI Infrastructure and Readiness Initiative" was announced - emerging markets will be offered shared GPU (graphics processing unit - the special computing hardware that runs AI models) facilities on a 'pay as much as you use' basis; the initial focus is Africa and Latin America, with a technology company and an AI service provider as knowledge partners. Safeguards for privacy, cyber security and fraud prevention are built into all four priorities.
Context and Detailed Explanation
The strategy is rooted in the figures of the digital divide: more than 2 billion people in the world were offline in 2025; internet use in low-income countries is only 23% while it is 94% in high-income countries. On top of this is the jobs crisis: over the next 10-15 years, 1.2 billion young people in developing countries will reach working age, while only an estimated 42 crore jobs will be created. The strategy's argument is that cheap connectivity, services and skills alone can turn this gap into a jobs opportunity.
The four areas are linked in a sequential logic: first trusted connectivity (from international cables to homes, schools and clinics, shared infrastructure, public finance-guarantees for private investment), then cheaper devices and data (maker-mobile company-financial institution partnership), then digital services and skills (digital identity, payments, secure information sharing), and finally preparation for AI.
'Small AI' is the most distinctive concept of this strategy: a cheap tool built for a specific task and local need - such as an app that identifies crop disease or a health-worker assistant. The 'AI Infrastructure and Readiness Initiative' announced alongside will offer emerging markets shared GPU facilities on a 'pay as much as you use' basis; the initial focus is Africa and Latin America, with a technology company and an AI service provider as knowledge partners. Safeguards for privacy, cyber security and fraud prevention are built into all four priorities.
From the Exam's Perspective
The four areas of the strategy, the concept of 'small AI', the GPU-sharing initiative and the digital-divide figures (2 billion offline, 23% versus 94%, 1.2 billion young people versus 42 crore jobs) - Prelims facts; Mains material for GS-II/III on digital governance and inclusion.
Sources and Limitations
- World Bank press release, 20 October 2026 (read): worldbank.org press release
- Limitations: all figures and announcements are from the World Bank's release of 20 October 2026; the strategy's implementation outcome is a matter for the future.