A replay of this conversation is available here.

“Building an inclusive economy is a cornerstone for peace and prosperity.”

Shamina Singh, Mastercard Center for Inclusive Growth

Whether we are connected or not, we are all part of the digital world and the digital economy.  While the financial sector has been digital for a long time, more than 1.7B people do not participate in the formal financial system and the majority of those are women.  Including small businesses, women and others who are marginalized is critical for global prosperity.

Vint and Shamina shared their insights and financial inclusion, the Internet and the future with our audience.

How do we think about an economy that is equitable to everyone?

Shamina:

The first part of that question is a binary one – is a person connected or not?  From there we move on to access, usage and growth in the digital economy.  The top level is capacity building around the digital economy and this is where we really get to the idea of inclusive growth.  

Vint:

I am very optimistic about our opportunities for an inclusive economy.  Everyone is in the digital economy, whether they like it or not, and the financial sector has been digital for a long time. 

Mastercard has an important role to play in taking the temperature of the global economy or of economies in areas that are recovering from natural disasters or other disruptive situations.  Mastercard knows where and when buying activity is happening, areas where spending is ramping up and where supply chains are opening.  This intelligence provides an important perspective for policy makers and those working on economic recovery.

What is the current state of digital equity?

Shamina:

The Internet has an unparalleled ability to unlock potential – it is a blank slate.  The private and social sectors, as well as philanthropies, all have roles to play.

Wage digitization is a very useful example.  People in emerging countries are typically paid in cash.  When people are paid in cash, they often do not have a use case for saving their wages.  When we digitize paychecks, it allows women to save part of their wages and to use their digital payments in shops that offer digital transactions.   They can see what they are spending and what they are saving and how close they are to their goals.

Vint:

I believe that 65% of the world has access to the Internet, though many may not have the  stable, fast, affordable access they require.  Even at these levels, we are quite far from getting everyone online.  While the Internet is 50 years old in concept, it’s still young in terms of the possibilities it provides. 

The private sector has a real opportunity around digital equity.  The pandemic has shown us how people can make a living in a different way.  In India, for example, the Internet offers people the opportunity to be employed anywhere in the world.  In order to make these opportunities available, the private sector needs policies that helps shape competition and encourage investment by business

The Internet has been great for a lot of things and has been blamed for some not positive things.  During the pandemic, it was said that the Internet passed the test and human beings failed.  How do you feel about the role of the Internet in health care, education, mis- and dis- information during the pandemic?  

Shamina:

Digitization has created more data and a world of data haves and have nots.  We need to bridge the information inequality gap.  Every social sector organization and person on the planet will have to figure out what their role and needs are as it pertains to data and data analytics.  

We are creating a field of data science for social impact and we need to make sure we do not miss the mark when it comes to data inequality. That’s why we’re working in partnership with the Rockefeller Foundation on data.org, an effort to use the power of data to tackle society’s greatest challenges and improve lives across the globe. Please visit the website – we need engagement from scientists and practitioners around the world.

Vint:

The pandemic taught us that many of us can work remotely, despite resistance from the private sector.  We also are now experiencing a new divide because not everyone can work remotely.  We learned that our supply chain is fragile, particularly as it depends on people working on location.  

While we could do education remotely, teachers and students were not prepared.  Higher ed was closer than K-12 and we still need more infrastructure throughout our communities – at school and home – to realize the full benefits of remote learning.

Extreme weather will increase and the ability of Mastercard and others to see economic activity in disaster areas will help us understand where and when recovery is happening.  Using digital technology as a sensor and early warning system is critical.