The [first/next] off-case position is the india da: First, us-india relations are high and driven by mutual distrust towards China



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Economy Impacts

Economy — 1NC

US-Indo ties key to bolster global economy


Biswal 16 — Nisha Desai Biswal is an Indian-American who is Assistant Secretary of State for South and Central Asian Affairs in the United States Department of State. She was previously Assistant Administrator for Asia at the US Agency for International Development (USAID). She was nominated for the post of Assistant Secretary of State for South and Central Asia by US President Barack Obama on 19 July 2013. Biswal immigrated to the U.S. from India with her parents. May 24, 2016, U.S.-India Relations: Balancing Progress and Managing Expectations, http://www.state.gov/p/sca/rls/rmks/2016/257665.htm, @yangtri 7/19/16

Economic Relations Yet, for India to be a strong and capable strategic partner, it must have the economic strength to back up its growing global leadership. Our fast-growing economic partnership is based on the understanding that deepening the trade and commercial ties between our two countries will advance opportunity and prosperity for both of our peoples. Growing commercial ties will empower India’s young and inventive workforce, contributing to regional prosperity, globally-significant innovation, and sustainable development of India’s cities – over 60 of which boast more than 1 million citizens. And growing trade between our nations will create more jobs in the United States and offer U.S. firms access to one of the most important foreign markets of this century. And the economic data supports this premise. Bilateral trade in goods and services has expanded from $60 billion in 2009 to over $107 billion in 2015. U.S. exports to India increased by nearly 50% over the same period, supporting more than 180,000 U.S. jobs. While many trade barriers still remain, agricultural exports, in particular, have grown substantially and almost quadrupled in value over the past decade, reaching an all-time high last year. Indian foreign direct investment (FDI) in the United States nearly tripled between 2009 and 2014 – making it the fourth-fastest growing source of FDI into the United States – and U.S. FDI in India increased by nearly 30 percent over the same period. Last year, U.S. investors’ stakes in Indian equities surpassed those in Chinese equities for the first time, rising to $12 billion. Today, well over 500 U.S. companies are active in India, a country whose middle class could grow to half a billion people in the next 15 years. American companies have focused their investments on the opportunities that a growing India represents for the future of their businesses. Companies like Corning, which built a new factory there in 2013 – and Ford, whose 460-acre plant was created with a $1 billion investment – will be positioned to access not only the vast Indian market, but will use these platforms to grow their exports across Asia and the Indo-Pacific region. As India seeks to build the infrastructure to power its economy, it is looking directly to the United States to attract the technology and private capital it needs. A McKinsey report from 2010 concluded that approximately 70 to 80 percent of the infrastructure of the India of 2030 has yet to be built. This represents a tremendous opportunity for American companies with infrastructure expertise. For example, General Electric was awarded a deal worth $2.6 billion to provide India’s railways with 1,000 locomotives. That is the largest deal in GE’s 100-year history in India, and marks a doubling of the company’s investment there in just the last five years. And we are working actively to find new commercial opportunities: the Department of Commerce, for example, is supporting work by the Harvard Business School and the Ahmedabad Institute of Management to better enable U.S. companies to identify markets in India for exports of products and services, by developing a cluster map compatible with our current, U.S.-based cluster map. By making more efficient and data-driven investment and business decisions, our companies and regions will be more competitive in developing export strategies that maximize benefit. We are also working to bring more Indian investment to the United States. More than 200 Indian companies now have operations here, up from just 85 about a decade ago. According to a study released last year by the Confederation of Indian Industries, just 100 of those companies have together invested more than $15 billion in the United States, supporting over 90,000 jobs, and 84 percent of those companies plan to invest more here in the next five years. And through a partnership with diaspora entrepreneurs in Silicon Valley, the Department of Commerce’s SelectUSA initiative will help Indian entrepreneurs get the data and support they need to expand their operations in the United States, bringing more innovation, jobs, and prosperity here at home. Despite these gains, there is still much to be done to get two-way trade much closer to its potential. While India’s business climate has improved - India climbed four places on the World Bank’s Ease of Doing Business survey last year - our companies still struggle with an over-burdened and inefficient legal system for adjudicating commercial disputes and with a variable – and at times inconsistent – regulatory environment and tax code. Among steps India can take to attract more companies would be to negotiate a high-standard bilateral investment treaty (BIT) with the United States, which would send an important signal to U.S. investors that India is not only open for business, but also open to liberalizing its trade and investment practices.

Economy — Links

US-India Relations directly result in economic growth for both countries – any improvement in one country directly effects the other


Madan 14 Tanvi Madan, 6-14, "Finding a New Normal in U.S.-India Relations," Brookings Institution, http://www.brookings.edu/research/articles/2014/07/08-us-india-relations-normalization

The American investment in India, on its part, has been predicated on at least three assumptions. For some, it has been the idea of India that has been important – a diverse, developing democracy that could be a partner. For others, India’s economic potential has been what makes it attractive. For yet others, it has been India’s strategic potential, especially as a balance against China. India’s importance because of the latter, however, can wax and wane with the health of Sino-US relations or with assessments of India’s willingness and capacity. As for economic potential, there has been more doubt than hope on this front over the last three years. Recent developments have also meant that the India-as-a-role-model constituency is disappointed. All this has resulted in the devaluation of India’s stock in the US. This has been exacerbated by the fact that some of the strongest advocates of strong India-US relations in the US government have moved on to other positions. Disillusionment: The two countries are also no strangers to disillusionment. Often this is a result of heightened expectations that are left unmet. The disillusionment problem is exacerbated because, in many cases, the returns on the investment in the relationship may only become apparent in the medium to long term. It perhaps also results from a phenomenon that one might call India-US exceptionalism: each of the countries involved not just thinks that it is exceptional, but that the other should make exceptions for it. Each also expects more from the other than perhaps any other of its allies or partners and expects that, as a fellow democracy, the other should understand its constraints. Each also seems to believe that the other does not understand its exceptionalism, leading to doubt and disappointment. Differences: Over the last year such disillusionment has been evident, especially as differences have dominated the relationship – or at least the narrative about it. Over the next few years, these differences might continue to be in the spotlight instead of the bilateral achievements that tend to take place behind the scenes. Progress in terms of style (the bureaucracies developing habits of cooperation) or substance (in areas like intelligence sharing) are sometimes invisible. But even when progress is visible, achievements might get little, if any, attention – especially with the media seeming to believe that good news doesn’t necessarily make good copy. A new Indian government could have to deal with potential differences with the US on a number of issues. The US relationship with Pakistan is one, especially with concerns that US actions in the run-up to the 2014 draw down of troops in Afghanistan will compromise Indian interests vis-à-vis Afghanistan, Pakistan and, potentially, counter-terrorism. As Washington continues to calibrate its relationship with Beijing, concerns about a China-US G-2 may also arise again. Similarly, Sino-Indian cooperation might create consternation in some quarters in the US. If US relations with Iran deteriorate again, that might be another area of difference, as might US-India divergences on other countries. Renewed activity in three multilateral arenas – trade, non-proliferation, climate change – might also bring India-US differences to the fore. Finally, growing economic ties will mean that economic tangles will naturally increase. This has already been evident, with US companies and legislators complaining about domestic sourcing, the state of intellectual property protection, and taxation and regulatory policies in India. Indian companies, on their part, have expressed concerns about protectionism, immigration reform and market access in the US. Dealing with another democracy: All these differences are likely to be complicated and exacerbated by an element that also facilitates the India-US relationship – the fact that both countries are democracies. This factor means that debates and differences will play out publicly, negotiations will take place under the gaze of a free press, and domestic politics will have to be navigated and negotiated. Adding to the complications is another element that has driven good relations: the breadth and depth of relations between these two democracies. The quantitative and qualitative change in the relationship means that it involves more issues, interactions and stakeholders than ever before, making greater friction natural. The relationship also involves engagement on issues that span the foreign-domestic divide, including in the economic, energy, education and immigration realms. These issues will require policymakers to tread carefully, given that both countries are sensitive to outsiders trying to influence their domestic politics and policies. However, the depth and breadth of the relationship also provides an opportunity for the new Indian government in its relations with the US. The nature of the relationship means there’s not only one particular person or department or company interested in a good working relationship. This is only one factor that creates opportunity. Second, there is bipartisan support for India in the US, particularly in the mainstream of the Democratic and Republican parties. Third, India can make the case that it is – especially through its companies’ investment in the US – contributing to US policy-makers’ economic goals. Fourth, while in the US there are negative references to outsourcing and complaints about Indian trade and investment policies, India is not seen as a strategic threat. On the contrary, American policymakers have reiterated in public and private venues that the US supports India’s rise. Chinese observers indeed comment on the difference between Washington’s pronouncements vis-à-vis India and China in this regard. The reason offered for this support is that a strong, prosperous India will be good for US geopolitical and economic interests, even if this India won’t always be on the same page as the US and will sometimes create problems for it.

Increased US-India relations increase economy – becomes effective globally


Madan 14 Tanvi Madan, 6-14, "Finding a New Normal in U.S.-India Relations," Brookings Institution, http://www.brookings.edu/research/articles/2014/07/08-us-india-relations-normalization

On a less defensive note, a new Indian government can also consolidate existing constituencies and create new ones for the relationship in India and the US among officials, legislators, corporations, and individuals outside government. First, it can strengthen the Indian economy and its security. This will increase India’s importance and alleviate the problems of ‘India fatigue’ and ‘India irrelevance’ in the US. Improved economic growth and a sense of momentum will be especially likely to change the narrative about India and India-US relations for the better. To put it bluntly, if India is once again seen as a winner, it will quieten the whiners. Moreover, it will change how countries around the world perceive India and an India taken seriously globally will be taken more seriously by the US. Second, a new Indian government can work with the US to implement existing agreements, conclude outstanding negotiations and explore new opportunities, especially on the economic front. There are potential initiatives that can be taken in the trade and investment, defence trade, space, maritime, energy and education realms. There are regions, such as Southeast Asia or Africa or the Indian Ocean, where India and the US might consider working together on specific initiatives. What about a big-ticket item, which some have called for? Perhaps, but only if the associated agreements are not just negotiated, but implemented as well. A big idea unfulfilled, on the other hand, can lead to disillusionment – as with the two countries’ civil nuclear deal.


Tech Sector Growth — 1NC

US-India relations essential to technology growth.


Pyatt 11 — Geoffrey Pyatt, Principal Deputy Assistant Secretary, Bureau of South and Central Asian Affairs American Chamber of Commerce in India, 2011 (“The Importance of U.S.-India Business and Economic Relations”, U.S. Department of State, June 24th, Available Online at http://www.state.gov/p/sca/rls/rmks/2011/167158.htm, Accessed 07-17-2016, SP)

Why Does India Matter to the United States? I certainly don’t need to remind this audience that our business ties represent one of the most vibrant features of the U.S.-India partnership. In many ways, our business-to-business and people-to-people ties will increasingly come to define the U.S.-India relationship. I also don’t need to cite for this crowd the statistics showing how fast India’s economy is growing and how far this growth will take it. What I would like to share with you at the outset is the U.S. government perspective on India and why we view it, as President Obama has said, as “an indispensable partner for the 21st Century.” People often ask why a country like India is so important to our interests in a time where domestic issues – from unemployment to rising energy costs – tend to dominate the headlines. The answer is simple: India’s values, systems, and core strengths mirror our own. Our relationship with India is particularly notable, due to the intangible assets that power our strategic partnership: democratic values, entrepreneurial vigor, diverse societies, a strong and independent judiciary, and a passion for innovation. These are the key ingredients of a knowledge-driven economy and of the knowledge-based partnership that we share. As the largest democracy in the world, India has extraordinary “people power,” with a population that laudably pins great value to social issues and democratic ideals. A recently released report cites India as having over 3 million popularly-elected politicians across national, state, and local constituencies, with over one million of those officials being women. That amazing figure not only demonstrates the sheer size of India’s political system, but also shows the extent of power that the voting public wields in India. With its democratic values, recent efforts to fight graft, and the adoption five years ago of the Right to Information Act (RTI) – reportedly the most utilized law in the world – the so-called “India model” extends far beyond growth, innovation, and management gurus. It is a model for how a country will rise with, and not in spite of its citizens, in the 21st century. India is on track to have the largest population on the planet by 2030, and might have the largest economy by 2050. India’s rise is fueled by a young, optimistic, dynamic, educated population. In addition to our shared values, India’s market offers tremendous opportunity to U.S. exporters of goods and services. India has a market of 1.2 billion of the world’s consumers. These consumers have growing aspirations, and the disposable income to act on their aspirations. This is a powerful combination. The complementary strengths we share with India offer a great platform with which to leverage these unprecedented market opportunities. The potential for innovative solutions that can arise from partnering world-class American technology with Indian corporate local know-how is virtually limitless. These opportunities span across multiple sectors. Just as Norman Borlaug’s agriculture innovation and his collaboration with Indian scientist M.S. Swaminathan helped to spark the Green Revolution of the 1960s and 1970, the U.S. and India are again collaborating to transform food security in India as part of an “Evergreen Revolution.” Our experts are developing, testing, and replicating transformative agriculture technologies, our scientists are collaborating on monsoon forecasting, and our businesses are investing in food processing infrastructure to help India improve farm-to-market linkages. The boundless potential for e-commerce, telecommunications, social media, and endless other business ideas that will arise from enhanced connectivity is staggering. According to a recent Wall Street Journal article, the current internet penetration in India is in the range of only 80-100 million, less than 10 percent of the population. On infrastructure, too, the opportunities are enormous.. According to McKinsey Global Institute, 80 percent of the India of 2030 has yet to be built. U.S. companies want to provide the goods and services needed to upgrade and build India’s railroads, airports, power plants, and fiber optic cables. India will need to invest $143 billion in health care, $392 billion in transportation infrastructure, and $1.25 trillion in energy production by 2030 to support its rapidly expanding population.

Tech literally solves everything—Laundry List:


  • The Economy

  • Education

  • Financial Services

  • HealthCare

  • Agriculture & Food Supply

  • Climate Change

  • Renewable Energy

  • Infrastructure

  • Efficiency of Bureaucracy

Kaka et al 14 Noshir Kaka is a director in McKinsey’s Mumbai office; Anu Madgavkar is a senior fellow at the McKinsey Global Institute, where James Manyika is a director; Jacques Bughin is a director in the Brussels office; and Pradeep Parameswaran is a principal in the Delhi office. December 2014, India’s tech opportunity: Transforming work, empowering people, http://www.mckinsey.com/industries/high-tech/our-insights/indias-tech-opportunity-transforming-work-empowering-people- @yangtri 7/25/16

A dozen disruptive technologies can add up to $1 trillion in GDP by 2025 and help bring millions of Indians up the MGI Empowerment Line. Millions of Indians hope for a better future, with well-paying jobs and a decent standard of living. To meet these aspirations, the country needs broad-based economic growth and more effective public services. Technology can play an important role in enabling the growth India needs. The spread of digital technologies, as well as advances in energy and genomics, can raise the productivity of business and agriculture, redefine how services such as healthcare and education are delivered, and contribute to higher living standards for millions of Indians by raising education levels and improving healthcare outcomes. A dozen empowering technologies A new McKinsey Global Institute (MGI) report identifies a dozen technologies, ranging from the mobile Internet to cloud computing to advanced genomics, which could have a combined economic impact of $550 billion to $1 trillion a year in 2025. The selection of the 12 technologies for India was based on a similar process established by MGI's earlier work on disruptive technologies.1 For India, we used additional criteria to identify the technologies that would have a direct impact on the country's economic and social challenges in the coming decade. As a result, we include technologies such as electronic payments, which are well established in other parts of the world but not well developed in India. By 2025, however, electronic payments could help 300 million Indians join the country's financial system. We group the 12 technologies into three areas: digitizing life and work, smart physical systems, and energy technologies: digitizing life and work—the mobile Internet, the cloud, the automation of knowledge work, digital payments, and verifiable digital identity smart physical systems—the Internet of Things, intelligent transportation and distribution systems, advanced geographic information systems (GIS), and next-generation genomics energy—unconventional oil and gas (horizontal drilling and hydraulic fracturing), renewable energy, and advanced energy storage Each of these technologies has the potential for rapid adoption in India between now and 2025 (exhibit). Exhibit Potential adoption of 12 empowering technologies in India To assess the potential impact of the 12 technologies on the economy of India and the lives of its people, we sized more than 40 applications in six sectors of the economy: financial services, education and skills, healthcare, agriculture and food, energy, and infrastructure. In the case of the government sector, we analyzed the potential contribution of e-governance initiatives, such as open data and data-driven planning and other smart city applications, but did not estimate their economic impact. Often, these technologies are used in combination, providing a greater impact than any one of them alone. For example, Internet of Things sensors in medical devices can be used together with the mobile Internet and intelligent systems (the automation of knowledge work) hosted on the cloud to monitor patients with chronic diseases remotely and to alert medical workers automatically when the system detects a potentially dangerous situation. The total impact of the sized applications could amount to $240 billion to $500 billion a year by 2025. Given the contributions of these sectors to India's GDP, we estimate that across the entire economy, the 12 technologies could have a combined economic impact of $550 billion to $1 trillion by 2025. Financial services. The applications we size could have an economic value of $32 billion to $140 billion a year by 2025. That value arises from improved productivity and higher incomes for citizens using financial services and from lower costs and reduced leakage in government transfers and payments. As many as 300 million Indians could gain access to banking services and raise their incomes by 5 to 30 percent thanks to better access to credit and the ability to save and make remittances. Education and skills. We estimate that remote learning, massive open online courses (MOOCs), and other digital systems could have an economic impact of $60 billion to $90 billion a year by 2025 thanks to higher productivity among a larger number of skilled workers. India could have about 24 million more high-school and college-educated workers and 18 million to 33 million more vocationally trained workers by 2025 as a result of digitization in the education sector. Healthcare. Disruptive technologies could transform the delivery of public health by 2025 through remote health services and digitally enabled healthcare workers, who can tap expert systems to conduct basic protocols via smartphones and the mobile Internet. By 2025, the total economic impact could be $25 billion to $65 billion a year, including $15 billion that could be saved through systems to reduce the problem of counterfeit drugs. Some 400 million of India's poor could get access to better care through technologies that bring medical expertise to modestly skilled health workers in remote areas. Agriculture and food. Technology applications could create $45 billion to $80 billion a year in additional value in the sector. More than half of that would come from hybrid and genetically modified crops, precision farming (using sensors and GIS-based soil, weather, and water data to guide farming decisions), and mobile Internet–based farm-extension and market-information services. Electronic payments and other digital systems, for example, could reduce leakage in the public food-distribution system, and the use of real-time market data and other information tools would cut postharvest food losses. These improvements could raise the incomes of as many as 100 million farmers and bring better nutrition to 300 million to 400 million consumers. Energy. Collectively, the technology applications we size in energy could have an economic value of $50 billion to $95 billion a year by 2025, including the impact of the carbon emissions avoided. The largest benefit would come from smart metering, which could save $15 billion to $20 billion a year by 2025 in reduced transmission losses. Unconventional-oil and -gas development might generate value of $10 billion a year by 2025. Infrastructure. India has a widely acknowledged infrastructure deficit that successive governments have attempted to address. Smart highway systems and electronic tolling can reduce road-travel times by 10 to 15 percent. Radio-frequency identification (RFID) tags and other tracking technologies can raise the efficiency of ports and warehouses by 50 percent. Sensors could help reduce water-system leakage by 15 to 20 percent. In construction, modern methods such as the use of pre-cast parts and project-management systems could help save $12 billion to $18 billion a year in costs by 2025 and help India build ten million affordable homes. Together, infrastructure technologies can contribute $30 billion to $45 billion a year in value by 2025. Government services. India has made a good start with its national e-governance plan, but it can take additional steps to capture the full potential of technology over the next decade. Reengineering core government processes to simplify them and integrating multiple services on technology platforms are important next steps. Government can also help new businesses and business models prosper through its open-data initiatives. In addition, it can help accelerate the build-out of fiber-optic backbones, which will be critical for spreading the mobile Internet—itself the foundation for many applications in other sectors of the economy. To capture the full potential value of these technologies, India will need to address barriers such as its limited telecom infrastructure and a lack of computer literacy among Indians. In addition, policy makers can create an environment in which these technologies flourish by adopting appropriate regulations that protect the rights of citizens and by helping to foster an environment for innovation. Government can encourage the growth of tech industries and applications by supporting efforts to create standards and can help entrepreneurs scale up ideas into major companies through reforms to regulatory systems. Finally, India can raise its investment in research and development, which in 2010 was 0.87 percent of GDP, compared with 1.7 percent in China and 3.36 percent in South Korea.

Tech Sector — Economy Impacts

India’s Tech Industry key to the economy


Economy Watch 10 The Core Content Team our economy, industry, investing and personal finance reference articles. It is the largest independent economics, finance and investing community on the web, serving 1 million users a month. Contribution of India's IT Industry to Economic Progress, http://www.economywatch.com/india-it-industry/economic-progress.html, @yangtri 7/25/16

The contribution of India's IT industry to economic progress has been quite significant. The rapidly expanding socio-economic infrastructure has proved to be of great use in supporting the growth of Indian information technology industry. The flourishing Indian economy has helped the IT sector to maintain its competitiveness in the global market. The IT and IT enabled services industry in India has recorded a growth rate of 22.4% in the last fiscal year. The total revenue from this sector was valued at 2.46 trillion Indian rupees in the fiscal year 2007. Out of this figure, the domestic IT market in India accounted for 900 billion rupees. So, the IT sector in India has played a major role in drawing foreign funds into the domestic market. The growth and prosperity of India's IT industry depends on some crucial factors. These factors are as follows: India is home to a large number of IT professionals, who have the necessary skill and expertise to meet the demands and expectations of the global IT industry. The cost of skilled Indian workforce is reasonably low compared to the developed nations. This makes the Indian IT services highly cost efficient and this is also the reason as to why the IT enabled services like business process outsourcing and knowledge process outsourcing have expanded significantly in the Indian job market. India has a huge pool of English-speaking IT professionals. This is why the English-speaking countries like the US and the UK depend on the Indian IT industry for outsourcing their business processes. The emergence of Indian information technology sector has brought about sea changes in the Indian job market. The IT sector of India offers a host of opportunities of employment. With IT biggies like Infosys, Cognizant, Wipro, Tata Consultancy Services, Accenture and several other IT firms operating in some of the major Indian cities, there is no dearth of job opportunities for the Indian software professionals. The IT enabled sector of India absorbs a large number of graduates from general stream in the BPO and KPO firms. All these have solved the unemployment problem of India to a great extent. The average purchasing power of the common people of India has improved substantially. The consumption spending has recorded an all-time high. The aggregate demand has increased as a result. All these have improved the gross production of goods and services in the Indian economy. So in conclusion it can be said that the growth of India's IT industry has been instrumental in facilitating the economic progress of India.

Tech key to economy—five warrants


Kvochko 13 Elena Kvochko is Manager in Information Technology Industry at World Economic Forum. She manages the global partnership programs on cyber resilience and the internet of things and is responsible for developing relationships with top information technology industry partners. Prior to her position at the Forum, she worked as Information and Communication Technology specialist at the World Bank. Elena focused on a portfolio of projects aimed at leveraging ICT for economic growth and transparency in emerging economies. Five ways technology can help the economy, 4/11/13, https://www.weforum.org/agenda/2013/04/five-ways-technology-can-help-the-economy/ @yangtri 7/25/16

At a time of slowed growth and continued volatility, many countries are looking for policies that will stimulate growth and create new jobs. Information communications technology (ICT) is not only one of the fastest growing industries – directly creating millions of jobs – but it is also an important enabler of innovation and development. The number of mobile subscriptions (6.8 billion) is approaching global population figures, with 40% of people in the world already online. In this new environment, the competitiveness of economies depends on their ability to leverage new technologies. Here are the five common economic effects of ICT. 1. Direct job creation The ICT sector is, and is expected to remain, one of the largest employers. In the US alone, computer and information technology jobs are expected to grow by 22% up to 2020, creating 758,800 new jobs. In Australia, building and running the new super-fast National Broadband Network will support 25,000 jobs annually. Naturally, the growth in different segments is uneven. In the US, for each job in the high-tech industry, five additional jobs, on average, are created in other sectors. In 2013, the global tech market will grow by 8%, creating jobs, salaries and a widening range of services and products. 2. Contribution to GDP growth Findings from various countries confirm the positive effect of ICT on growth. For example, a 10% increase in broadband penetration is associated with a 1.4% increase in GDP growth in emerging markets. In China, this number can reach 2.5%. The doubling of mobile data use caused by the increase in 3G connections boosts GDP per capita growth rate by 0.5% globally. The Internet accounts for 3.4% of overall GDP in some economies. Most of this effect is driven by e-commerce – people advertising and selling goods online. 3. Emergence of new services and industries Numerous public services have become available online and through mobile phones. The transition to cloud computing is one of the key trends for modernization. The government of Moldova is one of the first countries in Eastern Europe and Central Asia to shift its government IT infrastructure into the cloud and launch mobile and e-services for citizens and businesses. ICT has enabled the emergence of a completely new sector: the app industry. Research shows that Facebook apps alone created over 182,000 jobs in 2011, and that the aggregate value of the Facebook app economy exceeds $$12 billion. 4. Workforce transformation New “microwork” platforms, developed by companies like oDesk, Amazon and Samasource, help to divide tasks into small components that can then be outsourced to contract workers. The contractors are often based in emerging economies. Microwork platforms allow entrepreneurs to significantly cut costs and get access to qualified workers. In 2012, oDesk alone had over 3 million registered contractors who performed 1.5 million tasks. This trend had spillover effects on other industries, such as online payment systems. ICT has also contributed to the rise of entrepreneurship, making it much easier for self-starters to access best practices, legal and regulatory information, marketing and investment resources. 5. Business innovation In OECD countries, more than 95% of businesses have an online presence. The Internet provides them with new ways of reaching out to customers and competing for market share. Over the past few years, social media has established itself as a powerful marketing tool. ICT tools employed within companies help to streamline business processes and improve efficiency. The unprecedented explosion of connected devices throughout the world has created new ways for businesses to serve their customers.


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