According to the report, less-developed countries also suffer from losing their top talent to developed countries and have smaller representation in setting up the global policy discussion contributing further to the growing global inequality. Associate Director, ESG. Moreover, by the end of the next decade, information and communication technology (ICT) will drive economic growth and power productivity gains. However, it has also exposed the wide chasm between the connected and the unconnected, revealing just how far behind many are on digital uptake. Open the form in the online editor. If left unaddressed, the yawning gap between under-connected and hyper-digitalized countries will widen, exacerbating existing inequalities. As cross-border data flows become increasingly prominent in the digital economy, UNCTAD has called for a new approach to properly regulate them at the international level. Table: Top 10 economies, mobile phone, Internet, broadband, 2002-2006Source: UNCTAD calculations based on the ITU World Telecommunication/ICT Indicators database, 2007. The United Nations Conference on Trade and Development (UNCTADUnited Nations Conference on Trade and Development (UNCTAD Even if everyone in Tuvalu had access to the Internet (which they dont; only 13% of the countrys population had broadband in 2016, according to the World Bank), delivery of goods purchased online would be difficult. Yet, while digitalisation offers immense potential, it also poses challenges to people and businesses, and not everyone has harnessed the potential of digital opportunities. Simply put, the growth of e-commerce is not automatic, and the spread of its benefits is not guaranteed. Global internet bandwidth rose by 35% in 2020, compared with 26% the previous year, the report says. The contents of this press release and the related Report must not be quoted or. Thanks to privileged access to data, network effects and economies of scale and scope, these platforms have become global digital corporations with planetary reach; huge financial, market and technology power; and control over large swathes of data about their users. In this new configuration, developing countries risk becoming mere providers of raw data to global digital platforms, while having to pay for the digital intelligence obtained from their data, the report warns. The study found that use of ICT by Thai enterprises is associated with significantly higher sales per employee. AFP Alkesh Sharma Sep 05, 2019 It is easy to assume that access to the digital economy is ubiquitous, and that online shopping is the natural evolution of commerce. The conversation brings up the importance of Digital Divide and Accessibility. UNCTAD e-commerce estimates reveal implications of digital divide on developing and transition economies during COVID-19 27 Apr 2020 According to the UN Conference on Trade and Development's (UNCTAD) recent estimates, e-commerce sales amounted to USD$25.6 trillion globally in 2018, up 8% from 2017. Other benefits include using artificial intelligence to help find a cure and a significant shift to e-commerce, benefitting small and big businesses alike. Lowering digital gaps Though the country's world wide web penetration price reached 71% in 2021 according to the International Telecommunication Union, UNCTAD and its partners located that only 9% of rural Peruvian households had access to the world wide web. The digital economy has contributed to nearly 60 per cent of China's GDP growth in 2016, . Based on a request by the Secretary-General of UNCTAD in Summer 2006, the Director General of SDC agreed to extend the UN-secondment of Mr. Geiger as Special Adviser to the UN CSTD for the period december 2006 to november 2009. . These include mounting security and privacy concerns, according to UNCTAD. de la Paix, 1211 Geneva 10, Switzerland, Welcome to the United Nations Conference on Trade and Development. UNCTAD proposes the formation of a new United Nations coordinating body, with a focus on, and with the skills for, assessing and developing comprehensive global digital and data governance. de la Paix, 1211 Geneva 10, Switzerland, Welcome to the United Nations Conference on Trade and Development, 13% of the countrys population had broadband in 2016, United Nations Conference on Trade and Development, spread the benefits of the digital transformation. Mobile phone subscribers have almost tripled in such nations over the last five years, and now make up some 58% of mobile subscribers. Information and Communication Technology (ICT), THE DIGITAL DIVIDE: ICT DEVELOPMENT INDICES 2004, UNCTAD - Palais des Nations, 8-14, Av. The analysis used in the UNCTAD-Thai study can be applied in other developing countries provided that the necessary data and information are available, the report notes. Since the programs inception two years ago, nearly 30 global partners have been recruited, and an online platform has linked governments with organizations and donors to share resources, expertise, and knowledge. This is also reflected by the growing literature on digitalization and E-commerce. Juan's expertise covers several industries including energy, climate, digital economy, media, payments, and industrial and consumer goods. Digital Economies and Development: A Research Agenda DIODE Working Papers 1. Levels of digitalization may even influence whether countries are able to achieve the Sustainable Development Goals set by the international community for tackling challenges like hunger, disease, and climate change. according to unctad (2021b, 11), the u.s. imported $318 billion worth of digitally delivered services in 2020. The global crisis brought on by the coronavirus pandemic has pushed us further into a digital world, and changes in behaviour are likely to have lasting effects when the economy starts to pick up. Gains in mobile connectivity and Internet use among developing countries are not being matched by gains in other technologies, such as Internet hosts and personal computers (PCs). Digital Divide. They have benefitted from network effects and from their ability to extract, control and analyse data, then transform it into digital intelligence that can be monetized. To illustrate the beneficial use of ICT by firms in developing countries, UNCTAD and the Thai National Statistical Office jointly conducted the first analysis in developing countries that assesses quantitatively the impact of ICT use on labour productivity in manufacturing by small and medium-sized enterprises (SMEs). Sweden proud core donor to UNCTAD's E-Commerce and Digital Economy Programme. The fast-paced shift towards digitalization is likely to strengthen the market positions of a few mega-digital platforms, the analysis finds. By improving information sharing with its suppliers, including through systems that allow for automatic replenishment, a business can maintain optimum inventory levels. At my organization, the United Nations Conference on Trade and Development, we are creating strategies to help developing countries leverage their assets and improve digital capabilities. Those with limited access continue to lag hindering their growth and development. With the increasing number of mobile devices and internet-connected devices, data traffic by mobile broadband is expected to account for almost one third of the total data volume in 2026, the report states. The United Nations Conference on Trade and Development (UNCTAD) has called on countries to make digital data flow for the benefit of all. is a small, women-owned and BIPOC-led ESG strategy + communications firm that supports organizations in building resilient and inclusive strategies that put people . How that economy will develop is difficult to predict. Most developing countries remain far behind . These challenges are particularly acute for people in Sub-Saharan Africa, in remote island states, and in several landlocked countries. The Digital Divide. Those that do not have access are at risk of being left further behind as digital transformation accelerates, especially those in least developed countries.. However not all technology companies are profiting and there are some serious consequences of the rush to online platforms. Developing countries in Asia and Africa had the highest growth rates in mobile phone penetration worldwide. This thesis takes motivation in the digital divide between nations to investigate the impact of Information and Communication Technology (ICT) investments on economic growth in poor and rich . The main policy takeaway from the analysis is that much more attention should be given to bridging existing and emerging digital divides to allow more countries to take advantage of digitalization. It is also generating more data on the expansion of the virus and helping information exchanges for research. . establishing business online, international e-payment, cross-border delivery and aftersales services. EMBARGO. Belarus and Croatia have higher Internet penetration rates than several developed countries, at 57% and 35% respectively. Only one in five people in LDCs use the Internet, and in most developing countries, well below 5% of the population currently buy goods or services online. Also, the average mobile broadband speed is about three times higher in developed countries than in LDCs. New policies and regulations are needed to ensure a fair distribution of the gains from digital disruptions. 50 Global Intellectual Property Center, U.S. Chamber of Commerce Korea has developed one of the most dynamic intellectual property frameworks today. A 10% increase in the share of employees using computers was associated with 3.5% higher labour productivity (compared with 1.8% in the case of Finnish firms). UNCTAD - Palais des Nations, 8-14, Av . Lack of Internet access at home also limits connectivity, cramping, for example, the possibilities for students to be connected if schools are closed. UNCTAD Digital Economy Report 2021 The Digital Economy report 2021 provides a review of studies dealing with cross-border data flows and analyses the inequalities in the data-driven digital economy. In the digital world, given the global digital divide, developing countries are latecomers to new technologies. The digital divide is impeding development 24 October 2018 Written byMukhisa Kituyi is Secretary-General of UNCTAD By the end of the next decade, growth, productivity gains, and human development will be determined by levels of integration into the digital economy. Small companies, including those owned and operated by women, will be especially vulnerable to the changing business environment. summarized in the print, broadcast or electronic. Technology creates new alignments among individuals with access to the internet and those without access. Faster and more comprehensive communication enables firms to make more accurate production plans and sales forecasts in the short and long term. However, wider adoption of ICT by developing country enterprises is still very limited: few firms have intranet or extranet, which are often the first steps towards the automated integration of business processes. The report warned that a data-related divide is . UNCTAD warns that the dominance of these platforms is leading to a concentration and consolidation of digital value, rather than reducing inequalities between and within countries, with. This digital divide, born out of a lack of investment, capacity or structural problems, makes the journey to digitalization a complex one.This session, organized in cooperation with the International Telecommunication Union (ITU), will gather investors of the digital economy to discuss best practices in investing for digital economy development. 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