Development Archives | Digital Watch Observatory

UNCTAD data shows that global economic transformation gaps remain uneven

New data from the UN Conference on Trade and Development (UNCTAD) highlights how productive capacities, rather than headline growth figures, determine whether economies achieve meaningful and sustained development.

While some countries record rising GDP, structural weaknesses often prevent these gains from translating into improved living standards.

At the centre of the analysis is the Productive Capacities Index (PCI), which evaluates 43 indicators across areas such as infrastructure, human capital, energy, institutions and private sector development.

The index shifts focus from output-based metrics towards the underlying systems that enable economies to produce goods and services effectively.

The findings by UNCTAD reveal significant global disparities. Developed economies continue to outperform other regions, while developing countries have made gradual progress but have not closed the gap.

Africa remains the lowest-performing region overall, though countries such as South Africa, Tunisia and Morocco show comparatively stronger results within the continent.

Technology, particularly information and communication technologies, has been a key driver of improvement in least developed countries.

However, reliance on natural resources continues to pose risks, limiting diversification and long-term resilience.

UNCTAD’s report underscores the need for governments to adopt multidimensional policy frameworks that prioritise capacity-building instead of short-term growth indicators.

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Agentic AI to take over half of UAE public sector

The UAE has announced an ambitious government framework to integrate Agentic AI across 50% of the public sector and services within two years. Revealed at a Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, the initiative positions AI as an operational partner managing government functions autonomously.

Agentic AI systems will be deployed to monitor developments, analyse data, recommend actions and run operational workflows without human intervention. Authorities expect the shift to improve service speed and efficiency, cut costs, and enable real-time evaluation and continuous improvements across federal entities.

The programme will roll out in phases under a dedicated task force, with performance-based assessments for government entities and leadership. A parallel focus has been placed on workforce development, with training programmes designed to equip employees with advanced AI capabilities.

The framework builds on two decades of digital transformation in the UAE, including earlier national AI strategies and smart government initiatives, and expands the country’s push towards fully integrated, data-driven governance systems.

Why does it matter?

The project marks a shift from digital tools to autonomous governance, where AI can directly run and optimise public services in real time. That raises efficiency and responsiveness, but also makes strong oversight, governance, and workforce readiness essential to ensure safe and effective implementation.

The approach could also serve as a global blueprint for large-scale government AI adoption, shaping how states modernise public services and integrate autonomous systems into core governance.

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ECON adopts Business Wallets opinion and highlights cybersecurity risks

Members of the European Committee of the Regions’ Commission for Economic Policy adopted a draft opinion on European Business Wallets at their meeting, while also addressing cybersecurity, industrial policy, defence, AI, and state aid issues.

ECON members stressed that European Business Wallets should be simple, user-friendly, and cost-effective, particularly for SMEs, micro-enterprises, and start-ups operating across borders. They also backed a ‘once-only’ principle allowing businesses to submit data a single time and reuse it across different administrative procedures.

The draft opinion also calls for awareness-raising, clear guidance, financial support, technical assistance, and training for local administrations facing new obligations.

Rapporteur Branislav Zacharides, Mayor of Vrútky, stated:

‘The deployment of the Business Wallets will entail new administrative obligations for public authorities, which can be especially burdensome for smaller municipalities. We therefore call on the European Commission and Member States to provide adequate technical capacity-building and financial support so that the Wallets can deliver real added value.‘

Members also addressed the upcoming Cybersecurity Review and the Digital Networks Act, warning that new responsibilities linked to digital resilience and connectivity could put pressure on regional and local administrations, especially those with limited resources and technical expertise. They called for financial support, training, and capacity-building to help authorities meet those requirements.

ECON members also discussed the EU Defence Industry Transformation Roadmap and the Industrial Accelerator Act, stressing the need for a place-based approach to defence and industrial acceleration policies. They argued that local and regional authorities should help shape investment priorities and industrial strategies, rather than merely implement them.

The meeting also included a discussion of gender bias in AI and a review of the General Block Exemption Regulation on state aid. ECON members warned that broader state-aid flexibilities could have uneven territorial and competition effects, risking the widening of regional disparities.

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World Health Organization launches AI tool for reproductive health information

The World Health Organization and partners have launched ChatHRP, an AI-assisted tool designed to provide fast access to verified information on sexual and reproductive health and rights.

Developed under the HRP research programme, the system is aimed at supporting evidence-based decision-making in a field where misinformation remains a persistent challenge.

ChatHRP uses advanced natural language processing and retrieval-based AI to deliver referenced answers drawn exclusively from WHO and HRP materials.

The tool is designed for policy-makers, researchers, health workers and civil society organisations, helping them quickly navigate complex scientific and policy information without fragmented sources.

Built for global accessibility, the platform includes multilingual functionality and low-bandwidth optimisation to ensure usability in resource-limited settings. Its structure prioritises accuracy and transparency, with responses linked directly to validated research and guidance that is regularly updated.

The beta phase focuses on professional use cases, where users can query topics such as maternal health, contraception and disease management.

Why does it matter?

The initiative directly improves access to reliable, evidence-based health information in a field where misinformation can influence policy and health outcomes. By centralising verified sources and reducing reliance on fragmented or unverified material, it supports faster, more consistent decision-making across healthcare, research and policy environments globally.

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Austria hosts the first Google data centre in the Alpine region

Google has announced its first data centre investment in Austria, marking an expansion of digital infrastructure in the Alpine region.

The facility, to be built in Kronstorf, is expected to create around 100 direct jobs while supporting growing demand for cloud services and AI capabilities across Europe.

The investment reflects a broader push to strengthen Europe’s digital competitiveness through infrastructure linked to AI-driven growth. By expanding its network capacity, Google says it aims to enhance the performance, reliability, and scalability of its services, helping regional economies remain connected to global digital ecosystems.

Sustainability is a central part of the project. The data centre will incorporate measures such as renewable energy integration, heat recovery systems, and water quality initiatives linked to the nearby Enns River.

These efforts align with wider industry trends towards greener data infrastructure and lower environmental impact.

Alongside infrastructure development, Google is also investing in workforce skills through partnerships with local institutions, including the University of Applied Sciences Upper Austria.

Building on previous training initiatives that have reached more than 140,000 people, the programme aims to equip workers with skills relevant to an AI-driven economy, reinforcing the link between digital infrastructure and human capital development.

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World Economic Forum analysis explains what drives startup growth today

Findings from the World Economic Forum (WEF) highlight a shift in how early-stage ventures grow from pilot projects into fully operational businesses.

Evidence gathered from more than 200 start-ups by UpLink, the early-stage innovation initiative by WEF, alongside investors and policymakers, suggests that scaling no longer depends primarily on innovation itself, but on the conditions enabling deployment.

Core and emerging technologies already exist across sectors, yet barriers remain in market adoption, coordination, and institutional readiness.

Resilience has moved from a strategic ambition to an immediate operational requirement. Start-ups are increasingly built around urgent, clearly defined problems, allowing them to adapt quickly in volatile environments shaped by geopolitical tensions, supply chain disruption, and climate pressures.

Strong partnerships have emerged as a central priority, with a significant majority of ventures seeking collaboration with larger corporate actors to gain access to infrastructure, regulatory pathways, and credibility.

Collaboration at early stages is proving essential in reducing risk and accelerating adoption. Traditional scaling models, based on proving technology before securing buyers, are losing effectiveness in complex sectors with high institutional risk.

Shared responsibility across multiple stakeholders enables innovation to move beyond demonstration phases into real-world application, particularly when aligned with procurement systems and regulatory frameworks.

Commercial viability has also become central to scaling success. Impact alone is no longer sufficient, as investors and buyers increasingly prioritise measurable financial outcomes such as cost efficiency, risk reduction, and resilience.

Market signals, including early contracts and partnerships, now outweigh funding rounds as indicators of credibility.

Why does it matter?

The WEF analysis underscores that scalable growth depends less on innovation alone and more on coordinated ecosystems that turn pilots into real-world adoption.

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OpenAI introduces ChatGPT for Clinicians and HealthBench Professional

OpenAI has launched ChatGPT for Clinicians, a version of ChatGPT designed to support clinical tasks such as documentation, medical research, evidence review, and care consults. The company says the product is now available free to verified physicians, nurse practitioners, physician associates, and pharmacists in the United States.

According to OpenAI, ChatGPT for Clinicians includes trusted clinical search with cited answers, reusable skills for repeatable workflows, deep research across medical literature, optional HIPAA support through a Business Associate Agreement for eligible accounts, and the ability for eligible evidence review to count towards continuing medical education credits. OpenAI also says conversations in the product are not used to train models.

The launch builds on OpenAI’s earlier ChatGPT for Healthcare offering for organisations. OpenAI says clinicians across US health systems are already using that product for administrative work such as medical research and documentation, and describes the free clinician version as the next step in expanding access.

Alongside the launch, OpenAI has introduced HealthBench Professional, which it describes as an open benchmark for real-world clinician chat tasks across care consultation, writing, documentation, and medical research. The company says the benchmark is based on physician-authored conversations, multi-stage physician adjudication, and filtered examples selected for quality, representativeness, and difficulty.

OpenAI also says physician advisers reviewed more than 700,000 model responses in health scenarios, and that before release, clinicians tested 6,924 conversations across clinical care, documentation, and research.

According to the company, physicians rated 99.6% of those responses as safe and accurate, while GPT-5.4 in the ChatGPT for Clinicians workspace outperformed base GPT-5.4, other OpenAI and external models, and human physicians on HealthBench Professional. OpenAI adds that the tool is designed to support clinicians with information rather than replace their judgement or expertise.

The company says the free version is currently limited to verified US clinicians, with plans to expand access to additional countries and groups over time. OpenAI also says it will begin by working with the Better Evidence Network to pilot access for verified clinicians outside the United States, subject to local regulations, and has released a Health Blueprint with recommendations for responsible AI integration in US healthcare.

Why does it matter?

The launch of ChatGPT for Clinicians reflects a shift from general-purpose AI use in healthcare towards clinician-specific products tied to workflow, benchmarking, and compliance. It also shows that competition in medical AI is increasingly centred not only on model capability, but on safety evaluation, evidence retrieval, privacy controls, and integration into real clinical practice.

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Georgia hosts EPO talks on patents and technology transfer

European Patent Office President António Campinos visited Tbilisi for high-level meetings and a joint conference with Georgia’s National Intellectual Property Center, Sakpatenti, focused on the role of patents in technology transfer.

During the visit, Campinos met Georgia’s Minister of Education, Science and Youth, Givi Mikanadze. Discussions covered the contribution of patent systems to economic development, innovation policy, international technology cooperation, and Georgia’s alignment with European patent practices.

The meetings also highlighted cooperation between the European Patent Office and Sakpatenti, including Georgia’s validation agreement with the EPO, which the statement says has resulted in more than 300 validation requests in two years. Mikanadze said:

‘The validation agreement supports IP development in Georgia by establishing an environment where knowledge transforms into innovation.‘

At the conference, titled ‘From Research to Impact: The Role of Patents in Technology Transfer’, Campinos said:

‘Technology transfer, foreign investment, and the development of new technologies depend on strong research, skilled intellectual property professionals, and solid legal frameworks. Patents and our validation agreement, by providing legal certainty, predictability, and clear professional standards, support researchers, universities, businesses of all sizes, and individual inventors in moving ideas from the laboratory to the market.‘

The programme also addressed professional qualifications and patent skills, with the EPO highlighting certification frameworks such as the European Qualifying Examination and the European Patent Administration Certification.

Why does it matter?

Stronger patent cooperation can affect how easily research moves into commercial use, how attractive a market is for technology investment, and how predictable protection is for innovators operating across borders. In Georgia, the validation agreement is presented as part of a broader effort to strengthen the country’s innovation ecosystem and its links with European patent practice.

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Microsoft commits A$25 billion to expand AI and cloud in Australia

Microsoft has announced its largest-ever investment in Australia, committing A$25 billion by the end of 2029 to expand AI and cloud infrastructure, strengthen cyber defence collaboration, and train three million Australians in AI skills by 2028.

The announcement was made alongside Australian Prime Minister Anthony Albanese during Microsoft chief executive Satya Nadella’s visit to Sydney. The company said the investment will expand Azure AI supercomputing and cloud capacity in Australia and increase its local cloud and AI infrastructure footprint by more than 140% by the end of 2029.

The announcement also includes collaboration with the Australian AI Safety Institute, an extension of the Microsoft-Australian Signals Directorate Cyber Shield to additional government agencies, and deeper work on national resilience with the Department of Home Affairs.

Albanese said:

‘We want to make sure all Australians benefit from AI. Our National AI Plan is all about capturing the economic opportunities of this transformative technology while protecting Australians from the risks.’ He added: ‘Microsoft’s long-term investment in our national capability will help deliver on that plan – strengthening our cyber defences and creating opportunity for Australian workers and businesses.’

Nadella added:

‘Australia has an enormous opportunity to translate AI into real economic growth and societal benefit.’ He added: ‘That is why we are making our largest investment in Australia to date, committing A$25 billion to expand AI and cloud capacity, strengthen cybersecurity, and expand access to digital skills across the country.‘

Microsoft said the investment is underpinned by a memorandum of understanding with the Australian Government, tied to national expectations for data center and AI infrastructure developers. It also said it will work with the Australian AI Safety Institute to monitor, test, and evaluate advanced AI systems, including human-AI interaction risks in companion chatbots and conversational AI systems.

Why does it matter?

The scale of the investment links infrastructure, skills, safety, and cyber resilience in a single package aligned with Australia’s AI Action Plan. It also signals that competition over AI capacity is increasingly tied not only to datacentres and compute, but to workforce readiness, regulatory cooperation, and national capability in areas such as cybersecurity and resilience.

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UNESCO highlights barriers facing students with disabilities in education systems

Efforts to expand inclusive education in Latin America continue to face structural challenges, as new findings presented by UNESCO highlight persistent gaps in data and policy implementation.

During a regional congress in Paraguay, experts stressed that the lack of reliable and comparable data on students with disabilities remains a major barrier to designing effective education systems. UNESCO presents stronger data systems as essential to making inequalities visible and improving public decision-making.

The analysis draws on the Regional Educational Information System on Students with Disabilities, known as SIRIED, which aims to strengthen evidence-based decision-making across the region through comparable and regularly updated information.

While progress has been recorded in access to education, particularly at the primary level, participation remains uneven. Attendance is significantly lower in early childhood education and declines again in secondary schooling, reflecting systemic issues such as late identification of disabilities and insufficient support mechanisms.

Students with disabilities are more likely to repeat grades, enrol at an older age, and leave school early than their peers. UNESCO’s findings suggest that dropout remains a persistent problem, especially at higher levels of education. Although many students are enrolled in mainstream schools, institutions often lack the infrastructure, training, and resources needed to ensure full inclusion.

The findings also point to gender disparities, with girls facing greater obstacles in access, retention, and progression. Despite improvements in legal frameworks recognising inclusive education as a right, implementation remains uneven across countries.

UNESCO emphasises that strengthening data systems such as SIRIED is essential not only to revealing inequalities, but also to supporting policies capable of delivering meaningful educational inclusion.

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