UNCTAD says digital divide goes beyond internet access

UNCTAD has warned that closing the digital divide now requires more than expanding internet access, as AI reshapes trade, production and development prospects.

The organisation said digital inclusion increasingly depends on whether developing countries can use digital tools and AI to build productive capacity, support local firms, create jobs and expand trade opportunities.

Its analysis argues that digital skills, institutional capacity, data governance and fairer participation in the digital economy must match connectivity.

UNCTAD said developing countries need stronger local expertise and greater influence over how data is governed, rather than relying only on digital trade arrangements shaped by larger economies.

Building domestic AI and data capacity through skills development, technology transfer and policy support could reduce long-term dependence on foreign platforms, infrastructure and funding.

The article also points to examples of national capacity-building, including Ghana’s efforts to develop local technical expertise for digital policy.

UNCTAD also pointed out its work on e-commerce, digital trade, data governance and the digital economy supports countries in identifying policy options suited to their development needs.

The organisation also highlighted tools such as its Frontier Technologies Readiness Index and Science, Technology and Innovation Policy Reviews as ways to help governments assess readiness and strengthen digital policy.

Why does it matter?

UNCTAD’s framing shows that the digital divide is becoming a question of capability rather than connectivity alone. Countries may have internet access but still lack the skills, institutions, data governance and domestic technology base needed to benefit from AI-driven economic change. The issue is therefore moving from infrastructure policy into trade, development, technology transfer and digital sovereignty debates. For developing countries, the risk is not only being offline, but also being dependent on external platforms and excluded from shaping the rules and value chains of the AI economy.

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