Uncategorized

Arguments

Affordability of connectivity is a major issue in achieving digital connectivity for MSMEs

Supporting facts:

• Global metric for connectivity affordability is no more than 2% of GNI

• More than half of the 134 low middle income countries have costs higher than this

• In Africa, 2GB data costing roughly 4.5 times more than this threshold

• On rural level, data package can cost 10 to 50% of monthly GNI

Topics: Digital Connectivity, Affordability, MSMEs

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Economic models and innovative solutions are crucial to lower the cost of digital connectivity

Supporting facts:

• Broadband Commission’s report on Smartphone Affordability provides suggestions like reducing taxes and import duties, creating efficient local supply chain, innovative financing mechanisms

• Giga initiative is mapping every school’s connectivity status

• Reduction of 90% connectivity cost is possible through commercial means on innovative strategies

Topics: Digital Connectivity, Economic Models, Innovation, Smartphones

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Connectivity costs are a barrier to sustainable MSME growth

Supporting facts:

• A major hindrance to connectivity is the lack of a backhaul network

• Most initiatives to connect MSMEs fail due to prohibitive connectivity costs after initial grants

Topics: MSMEs, Digital connectivity, Technology

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Access, affordability, relevance, knowledge and skills, and safety and security are crucial in addressing the MSME challenge

Supporting facts:

• The five points mentioned are from the framework proposed by Michael.

Topics: MSME challenge, Affordability, Knowledge and Skills, Safety and Security, Access, Relevance

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Reducing taxes and duties on ICT equipment could stimulate more business and economic potential

Supporting facts:

• Governments are taxing ICT equipment at the same rate as luxury items in some cases

Topics: ICT equipment, Taxes, Economic potential

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Report

The affordability of digital connectivity poses a major obstacle for micro, small, and medium enterprises (MSMEs) in low and middle-income countries. Currently, the cost of connectivity in many of these nations surpasses the recommended threshold of 2% of Gross National Income (GNI).

In fact, more than half of the 134 low and middle-income countries face costs higher than this threshold. For instance, in Africa, the cost of a 2GB data package can be around 4.5 times the recommended threshold. Even in rural areas, the expense of a data package can range from 10 to 50% of the monthly GNI.

To tackle this challenge, the Broadband Commission and the International Telecommunication Union (ITU) are actively working to enhance the affordability and accessibility of digital connectivity. The Broadband Commission has established an advocacy platform dedicated to resolving the issue of digital connectivity for MSMEs.

Their recommendations include reducing taxes and import duties, establishing efficient local supply chains, and introducing innovative financing mechanisms. A notable initiative, the Giga initiative, in collaboration with the ITU and other organizations, aims to map the connectivity status of every school worldwide.

By utilizing schools as connectivity nodes, the goal is to create a global backhaul network that facilitates connectivity solutions. To make this approach sustainable, they are exploring the use of machine learning and satellite technology. Leveraging the ubiquity of schools and the strong political support for connecting them is a strategic move, as it is widely acknowledged that linking schools is paramount for providing quality education.

In addition to addressing connectivity costs, it is imperative to consider other factors in addressing the MSME challenge. Access, affordability, relevance, knowledge, and safety and security are crucial aspects that need to be tackled. Michael’s proposed framework highlights these points, emphasizing their significance in enabling sustainable MSME growth.

Lowering taxes and import duties on ICT equipment is another potential solution to stimulate business and economic potential. Currently, some governments impose the same tax rate on ICT equipment as luxury items, hindering progress in the digital sector. Reducing these taxes could encourage more businesses to adopt and leverage ICT tools.

Moreover, it is essential to have the support of government leaders who possess a deep understanding of the power of digital technology and can implement policies that foster its growth. Rwanda serves as a positive example, with its head of state recognizing the relevance of ICT in driving economic development and enacting supportive policies.

In conclusion, the affordability of digital connectivity remains a significant challenge for MSMEs, particularly in low and middle-income countries. The Broadband Commission and ITU, through their initiatives, are actively working towards making connectivity more affordable and accessible. Utilizing schools as connectivity nodes, reducing taxes on ICT equipment, and promoting supportive government policies are key strategies in lowering connectivity costs and enabling sustainable MSME growth.

Arguments

Small businesses are more exposed to digital risks and threats due to their increased connectivity

Supporting facts:

• In Brazil, many micro and small businesses are heavily users of social media

• These businesses use tools such as WhatsApp for selling goods and services

Topics: Small Business, Digital Security, Digital Risks, Online Threats

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Taxes and trade issues can escalate the costs of connectivity devices and digital transmissions

Supporting facts:

• Customs on connectivity devices make costs higher

• Discussion about introducing customs on electronic transmissions could make things costlier

Topics: trade openness, customs, connectivity devices, electronic transmissions

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Developing economies can gain significant benefits from e-commerce and digitalisation, especially through enabling MSMEs to access global markets.

Supporting facts:

• A certain channel that numerous SMEs in a developing economy were using to export was banned, which resulted in six million sellers losing their access to the market overnight.

• This serves as an example of why it is essential for developing economies to embrace digitalization in e-commerce.

Topics: e-commerce, digitalisation, MSMEs, global markets, developing economies

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Navigating the tension between affordability and security in tech for small businesses

Supporting facts:

• Adam Sachs from the Center for International Private Enterprise raised the question

• Mention of cheaper tech that comes with baggage such as data tracking apps and cybersecurity vulnerabilities

Topics: security, affordability, technology, small businesses, competition

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Report

The analysis highlights several important aspects regarding digital risks and connectivity in small businesses. It underscores that small businesses are particularly vulnerable to digital risks due to their increased connectivity. This reliance on digital platforms exposes them to various online threats, necessitating the implementation of effective digital security practices.

One significant observation is the need for policies or actions to enhance digital security practices in companies. Small businesses often handle a significant amount of personal data, making them susceptible to data breaches that can severely impact their operations. Implementing robust digital security measures is crucial to protect this sensitive information and safeguard business operations.

The analysis also emphasizes the impact of taxes and trade issues on the costs of connectivity devices and digital transmissions. Customs on connectivity devices significantly increase expenses for small businesses, hindering their ability to access and afford the necessary tools for digital connectivity.

Furthermore, proposed discussions about introducing customs on electronic transmissions could further exacerbate the financial burden on small businesses. It is essential to address these trade-related challenges to promote widespread digital connectivity, particularly in developing countries. In contrast, advocates argue for a trade openness approach while promoting digital connectivity.

They contend that reducing customs barriers could significantly benefit developing countries. Drawing on the example of Sweden’s history with trade openness and development, they support initiatives by the International Trade Centre (ITC) and the United Nations Conference on Trade and Development (UNCTAD).

By embracing trade openness, these advocates believe that developing countries can enhance their digital connectivity, fostering economic growth and reducing inequalities. The analysis further emphasizes the importance of digitalization in e-commerce for developing economies. It highlights a particular example where numerous small and medium-sized enterprises (SMEs) in a developing economy lost access to a certain channel they used for exporting.

The banning of this channel resulted in approximately six million sellers losing their market access overnight. This example underscores the critical role of digitalization in enabling SMEs from developing economies to participate in e-commerce and access global markets. Embracing digitalization can be a transformative catalyst for economic growth and reducing inequalities.

However, a significant challenge mentioned in the analysis relates to regulatory frameworks failing to keep pace with the growth of e-commerce and digitalization. While businesses in developing economies recognize the benefits of digitalization and e-commerce, they often face regulatory barriers that hinder their operations.

The banning of the aforementioned channel used by SMEs to export serves as an example of this regulatory disconnect. Efforts are needed to bridge this gap and create regulatory frameworks that facilitate, rather than impede, digitalization and e-commerce. Lastly, the analysis highlights the tensions between affordability and security in technology for small businesses, which are a matter of concern.

Adam Sachs from the Center for International Private Enterprise raises the question about navigating this trade-off. Cheaper technology options may come with associated risks, such as data tracking apps and cybersecurity vulnerabilities. Balancing affordability and security is essential for small businesses to ensure they have access to suitable technology while adequately safeguarding their operations.

In conclusion, the analysis underscores the vulnerability of small businesses to digital risks, the need for improved digital security practices, the impact of taxes and trade issues on connectivity costs, the benefits of trade openness and digitalization for developing economies, the challenges posed by regulatory frameworks, and the tensions between affordability and security in technology.

These insights provide valuable considerations for policymakers, businesses, and stakeholders involved in developing strategies and policies to enable secure and connected digital ecosystems for small businesses.

Arguments

MasterCard aims to financially include one billion individuals and 50 million small businesses, with half of them being women-owned, by 2025

Supporting facts:

• MasterCard has increased its initial pledge due to a high uptake

• The company regards this target as an essential part of their corporate responsibility

Topics: MasterCard’s pledge, small businesses, financial inclusion, women-owned businesses

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Private-public partnerships are considered crucial in successfully implementing digital inclusion strategies

Supporting facts:

• MasterCard leverages its network, reach, and technologies to support digital inclusion efforts

• Collaboration with governments helps in providing suitable frameworks and tools for small businesses

Topics: private-public partnerships, digital inclusion, business and government collaboration

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Affordable payment tools, along with proper infrastructure and connectivity, are important to ensure small businesses’ survival and growth

Supporting facts:

• MasterCard advocates for the provision of affordable payment tools to small businesses

• SMEs can have payment and e-commerce capabilities if they have a decent smartphone and connectivity

Topics: affordable payment tools, infrastructure, connectivity, small businesses

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Government’s role in providing supportive mandates, tax incentives, and regulations is important

Supporting facts:

• Governments can motivate SMEs to adopt digital payments by offering tax breaks

• Digitization can actually optimize businesses and support their growth

Topics: government regulations, tax incentives, digital payments, cybersecurity

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The education provided to small businesses should cater to their specific needs

Supporting facts:

• The education provisions for small businesses differ greatly among regions

• Providing knowledge and literacy components tailored to specific SMEs is very important

Topics: education, literacy, small businesses, MSMEs

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Small businesses need cash flow and access to credit

Supporting facts:

• In order to grow, small businesses need to build a transaction history that can be used for micro-lending or bank loans

• Secure and immediate payments are also needed

Topics: MSMEs, Payments, Digital Economy

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A micro-credit program in Kenya, Jazaduka, helped small businesses

Supporting facts:

• The program offers zero-interest credit, allowing small businesses to buy goods from wholesalers

• They can then sell the goods and pay back the credit

• Through this system, they are building a purchasing history which increases their access to credit

Topics: Micro-credit, Jazaduka, Kenya, MSMEs, FMCG

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Cyber security and security in general, interoperability and affordability are extremely important.

Supporting facts:

• MasterCard works very heavily on and very involved in is cyber security.

• MasterCard has done seven or eight acquisitions and cyber security capabilities that have been built up in the last couple of years.

Topics: Cyber Security, Interoperability, Affordability

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Affordability should not be a reason to compromise whether it is interoperability or safety or security.

Topics: Interoperability, Safety, Security

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Education component is important because it infoms people what information should and should not be shared through social media or other places.

Topics: Education, Security, Social Media

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Report

Mastercard has set a goal to include one billion individuals and 50 million small businesses financially by 2025, with a particular focus on supporting women-owned businesses. This commitment reflects Mastercard’s corporate responsibility and recognition of the importance of financial inclusion in achieving the Sustainable Development Goals (SDGs), including SDG 1: No Poverty, SDG 5: Gender Equality, SDG 10: Reduced Inequalities, and SDG 8: Decent work and economic growth.

Private-public partnerships are considered crucial in successfully implementing digital inclusion strategies. Mastercard leverages its network, reach, and technologies to support digital inclusion efforts, especially in collaboration with governments. This collaboration helps provide suitable frameworks and tools for small businesses to thrive in the digital economy.

Mastercard also advocates for providing affordable payment tools, along with developing proper infrastructure and connectivity, to ensure the survival and growth of small businesses. Enabling small and medium-sized enterprises (SMEs) to have payment and e-commerce capabilities through affordable technology adoption can expand their market reach and enhance competitiveness.

Governments play a key role in motivating SMEs to adopt digital payments by offering tax incentives. This drives the transition towards a digital economy and enables SMEs to optimize their business operations and support growth. Furthermore, government regulations are important in providing supportive mandates and regulations that create a conducive environment for digital payments and cybersecurity.

Education tailored to the specific needs of SMEs is vital for small business success. The provision of knowledge and literacy components empowers SMEs to navigate challenges and seize opportunities. However, education provisions for small businesses vary significantly across regions, highlighting the need for tailored support.

Small businesses require cash flow and access to credit for growth and expansion. Building a transaction history is crucial for SMEs to access micro-lending or bank loans, and secure and immediate payments support daily operations. Successful micro-credit programs like Jazaduka in Kenya have helped small businesses by offering zero-interest credit, allowing them to buy goods and build a purchasing history.

Connectivity and infrastructure remain significant challenges for small businesses. While some solutions can function offline, the scalability of operations is limited without internet connectivity. Overcoming this hurdle is essential for small business growth and success. Partnership models like Jazaduka, in collaboration with big corporates such as Unilever, assist small businesses in achieving growth and sustainability.

These partnership models can be replicated across various industries and contribute to SDG 17: Partnerships for the Goals. Mastercard’s commitment to cybersecurity is crucial in an increasingly digital world. The company has heavily invested in acquiring cybersecurity capabilities to ensure the safety and security of its payment network and facilitate secure transactions.

Interoperability and affordability are also key factors to consider when implementing digital solutions, providing accessible and seamless financial services. In conclusion, Mastercard’s efforts to financially include one billion individuals and 50 million small businesses, with a focus on women-owned enterprises, by 2025 align with the SDGs.

By leveraging private-public partnerships, advocating for affordable payment tools and infrastructure, providing suitable education and credit opportunities, and prioritizing cybersecurity, Mastercard aims to facilitate the growth and success of small businesses and achieve sustainable and inclusive economic development.

Arguments

Digital connectivity is essential for small businesses

Supporting facts:

• Under the Broadband Commission framework, study on the subject of digital connectivity for MSMEs has been conducted to cover big data gaps and big understanding gaps

• Online trade and business has become an essential requirement

Topics: Digital connectivity, MSMEs, Broadband Commission

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There is a persistent usage gap in digital connectivity

Supporting facts:

• There is a lack of understanding where small businesses are benefiting from being online and where they encounter barriers

• A broad use of the internet, from watching videos to identifying economic opportunities, could be useful in encouraging the usage of digital connectivity

Topics: Usage gap, Digital connectivity

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The private sector has a crucial role in driving digital connectivity

Supporting facts:

• Many initiatives and developments are happening in the private sector

• Private sector involvement can make digital connectivity more self-sustaining

Topics: Digital connectivity, Private sector role

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Policy makers in Africa and beyond should prioritize micro and small businesses’ participation in the digital economy

Topics: Smart Africa, Digital Economy, Micro and Small businesses

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James Howe acknowledges the central role of Rwanda and its president in pushing for initiatives that promote innovation and digital progression in Africa

Supporting facts:

• President Kagame of Rwanda is the board chair of Smart Africa, he has shown commitment to innovation.

Topics: Rwanda, Innovation, Digital Progression

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James Howe considers import duties on devices as part of the problem affecting the cost of internet in Africa.

Supporting facts:

• Import duties on devices play a part in the high cost of internet in some areas.

Topics: Import Duties, Internet cost

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James Howe supports more efficient non-discriminatory measures such as consumption taxes as a way of raising money, and more sophisticated ways of protecting and promoting local industries.

Supporting facts:

• He differentiated the revenue issue from that of protecting or promoting local industries.

• He suggested that there are better ways for developing countries to protect their nascent industries other than import duties.

Topics: Import Duties, Consumption Taxes, Local Industries

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Report

Title: The Importance of Digital Connectivity for Small Business Growth Summary: Digital connectivity is crucial for the growth and success of small businesses, enabling online trade and expanding business opportunities. The Broadband Commission has conducted a study to address data and understanding gaps related to the digital connectivity of Micro, Small, and Medium Enterprises (MSMEs).

However, there is a persistent usage gap in digital connectivity, with small businesses facing barriers and lacking understanding of its benefits. Bridging this gap is essential to encourage broad internet usage for economic growth. The private sector plays a vital role in driving digital connectivity initiatives and making them self-sustaining.

Closing the gender divide in digital connectivity can bring significant returns on investment, and efforts are being made to empower women and improve their access to digital connectivity. Policymakers must prioritize the participation of micro and small businesses in the digital economy to promote economic growth and achieve the Sustainable Development Goals.

Rwanda, led by President Kagame, has shown commitment to innovation and digital progression, serving as an inspiration for other countries. Import duties on devices contribute to the high cost of internet, highlighting the need for alternative approaches to promote affordability and accessibility.

James Howe suggests efficient measures like consumption taxes to protect and promote local industries while ensuring a fair and competitive environment. Prioritizing digital connectivity for small businesses is essential for their economic growth and overall development. Keywords: digital connectivity, small businesses, online trade, Broadband Commission, usage gap, private sector, gender divide, Sustainable Development Goals, innovation, digital progression, import duties, affordability, consumption taxes, local industries.

Arguments

Concern over the drop in the rate of mobile internet adoption

Supporting facts:

• Mobile is primary way of accessing internet in low-middle income countries.

• In 2020, there was a drop in mobile internet adoption and gender gap in mobile internet use didn’t show significant progress for two years.

Topics: Mobile Internet Adoption, Digital Inclusion, Gender Gap

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Role of mobile in increasing profitability of micro enterprises

Supporting facts:

• In Ghana, use of mobile can increase profitability by almost 50% for micro-enterprises.

Topics: Mobile Usage, Micro Enterprises, Profitability

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Need to address awareness and usage of digital platforms by micro enterprises

Supporting facts:

• Most micro enterprises use mobile for voice and text but unaware of using digital platforms like e-commerce.

• A significant difference in the use of voice and text and e-commerce platforms among micro enterprises.

Topics: Digital Platforms, Micro Enterprises

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Gender-specific challenges to digital inclusion

Supporting facts:

• Challenges include lack of right type of device.

• Structural inequalities and restrictive social norms, including domestic responsibilities and dependency on men for mobility.

Topics: Digital Inclusion, Gender-specific Challenges

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The mobile industry has a big role to play in addressing the gender divide

Supporting facts:

• An operator in Bangladesh had 80% of their female customer base registered as a man which creates a problem for operators with targeted marketing campaigns

Topics: gender divide, technology, mobile industry

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Lack of awareness and digital skills should be addressed

Supporting facts:

• GSMA supports the industry with a mobile Internet skills training toolkits which has impacted 65 million people

Topics: digital skills, awareness, education

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Usage gap in mobile internet use is a big problem

Supporting facts:

• In sub-Saharan Africa, 85% of the population has access to a mobile broadband network, but only 25% of the population actually uses it

Topics: usage gap, digital divide, mobile internet

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Micro enterprises use limited digital services with usage rate varying from 1 to 10%

Supporting facts:

• Example of invoicing, which as a digital service every business would benefit from is used only by 1 to 10% of micro enterprises

Topics: Micro enterprises, Invoicing, Digital Services

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Balance is needed between security requirements and innovation in digital services uptake

Topics: Innovation, Digital Services, Security Requirements

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Skills training is crucial for security in cyber services usage

Topics: Skills Training, Cyber Services, Security

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Report

The analysis of the provided statements reveals several important insights regarding mobile internet adoption, digital inclusion, gender equality, and the role of governments and the mobile industry. One concern highlighted in the analysis is the drop in the rate of mobile internet adoption in low-middle-income countries.

This drop is especially significant as mobile is the primary way of accessing the internet in these regions. Additionally, there has been little progress in reducing the gender gap in mobile internet use over the past two years. This indicates a need for interventions and strategies to address the barriers to mobile internet adoption and promote gender equality in access.

On a positive note, the use of mobile technology has been shown to significantly increase profitability for micro-enterprises, as evidenced by a study conducted in Ghana. The study found that micro-enterprises that utilise mobile technology can increase their profitability by almost 50%.

This underlines the important role that mobile technology plays in fostering economic growth and supporting the livelihoods of small businesses. However, there is a significant lack of awareness and usage of digital platforms like e-commerce among micro-enterprises. Many micro-enterprises primarily use mobile technology for voice and text communication but are unaware of the opportunities offered by digital platforms.

This highlights the need to address the awareness and usage of digital platforms among micro-enterprises to unlock their full potential for growth and innovation. Gender-specific challenges also pose a significant obstacle to digital inclusion. These challenges include the lack of the right type of device and structural inequalities, such as restrictive social norms and dependency on men for mobility.

Overcoming these challenges requires collective efforts, including men speaking out on gendered challenges and the global community setting ambitious targets, such as reducing the gender gap by half by 2030. The mobile industry has a crucial role to play in addressing the gender divide.

For example, an operator in Bangladesh faced a problem with targeted marketing campaigns when 80% of their registered female customers were actually men. This implies that the industry needs to take proactive measures to ensure accurate gender representation in their customer base and tailor their services accordingly.

To foster digital inclusion and address the lack of awareness and digital skills, initiatives like the GSMA’s mobile internet skills training toolkits have proven to be impactful. These toolkits have already reached and impacted 65 million people. This highlights the importance of providing accessible training and education to empower individuals with the necessary digital skills.

The analysis also sheds light on the role of governments in supporting the digital economy. One of the significant costs for mobile operators is spectrum prices, which tend to be much higher in developing countries. Additionally, taxation remains a major issue for operators.

Governments can play a crucial role in addressing these challenges by reducing spectrum prices and implementing favourable tax policies. Furthermore, government support in digital skill development is essential for creating an enabling environment for the digital economy to thrive. Despite the availability of mobile broadband networks, there is a significant usage gap in mobile internet use, particularly in sub-Saharan Africa.

While 85% of the population in the region has access to mobile broadband, only 25% actually use it. This indicates that barriers to adoption, along with infrastructure, need to be addressed to bridge the usage gap and ensure that the benefits of mobile internet access are fully realised.

Additionally, micro-enterprises have a limited uptake of digital services. For example, only 1 to 10% of micro-enterprises utilise digital services like invoicing. This highlights the untapped potential and the need to increase the adoption of digital services by micro-enterprises to drive their growth and integration into the digital economy.

However, imposing strict data protection regulations on micro-enterprises may pose challenges. Micro-enterprises usually have a small number of employees and limited resources, making compliance with stringent data protection regulations overwhelming. Therefore, a balanced approach is needed to ensure data protection while considering the specific challenges faced by micro-enterprises.

A balance between security requirements and innovation in digital services uptake is crucial. As digital services become more prevalent, ensuring adequate security measures is of paramount importance. Skills training plays a vital role in this area, as individuals need to be equipped with the necessary cybersecurity skills to protect themselves and their organisations from digital threats.

In conclusion, the analysis of the provided statements highlights the need for concerted efforts to address challenges related to mobile internet adoption, digital inclusion, and gender equality. The mobile industry, governments, and the global community all have key roles to play in bridging the gender divide, improving access to digital platforms, and fostering the digital skills needed for the future.

By addressing these challenges collectively, we can work towards a more inclusive and equitable digital society.

Arguments

Micro, small, and medium enterprises need more recognition for a successful digital economy

Supporting facts:

• Smart Africa supports implementation of recommendations within member states

• There’s a need for policies specifically addressing role of micro small and medium enterprises in national policies

• Smart Africa proposes practical steps in policy framework to ensure MSMEs get necessary connectivity

Topics: Digital Economy, Smart Africa, Micro Small and Medium Enterprises (MSMEs)

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Investment in digital infrastructure and skill development are vital

Supporting facts:

• Governments should prioritize investment in digital infrastructure and broadband access

• Closing the connectivity and usage gaps is important

• MSMEs must be trained to use digital devices and services effectively into their work including agriculture and e-health

• Public-private partnerships can create an enabling environment for MSMEs

Topics: Digital Infrastructure, Skill Development, Digital Services, E-commerce

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Addressing challenges for inclusive participation requires comprehensive and inclusive collaboration between governments, private sector, stakeholders, civil society

Supporting facts:

• South Africa is ready to support to ensure that we address these challenges, particularly within our member states

• Lack of adequate digital infrastructure is a common problem among rural communities

• Efforts should be made to integrate the informal sector into the digital economy

Topics: Inclusion, Collaboration, Participation

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Rural communities lack adequate digital infrastructure, meaning innovative economic models are needed

Supporting facts:

• Rural communities often lack basic infrastructure like water, power, roads, which makes digital development difficult

• Mobile network operators and internet service providers find it unattractive to deploy in these areas

Topics: Rural Communities, Digital Infrastructure, Economic Models

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Youth and startups lack the resources to invest in digital technologies, meaning they need targeted support

Supporting facts:

• Young entrepreneurs often find resources to invest in digital technologies scarce

• Providing additional support could enable these groups to overcome their challenges

Topics: Youth, Startups, Digital Technologies

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Effort should be made to integrate the informal sector into the formal digital economy

Supporting facts:

• In many African countries, a significant portion of economy occurs in informal sector

Topics: Informal Sector, Digital Economy, Integration

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Accessibility challenges disproportionately affect their people with disabilities

Supporting facts:

• Policies and technologies need to be designed with consideration for persons with disabilities

Topics: Accessibility, Disabilities, Inequality

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Top mobile operators in Africa united in working group to demonstrate to governments the economic effects of removing taxes on ICT

Supporting facts:

• Rwanda President’s commitment to innovation cited as a positive example

• Studies conducted to demonstrate the potential economic advantages of such tax cuts

• Research conducted with the support of GSME

• Preparing to present findings to finance ministers at African Union meeting

Topics: Taxes, ICT, Regulation, Government, Economy

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Report

The analysis highlights several key points related to the digital economy and the need for policies to support micro, small, and medium enterprises (MSMEs). One of the main arguments is that MSMEs require more recognition to contribute to a successful digital economy.

Smart Africa proposes practical steps in the policy framework to ensure that MSMEs have access to the necessary connectivity. This argument is supported by the fact that Smart Africa supports the implementation of recommendations within member states and emphasizes the importance of policies specifically addressing the role of MSMEs in national policies.

Another important point emphasized in the analysis is the significance of investment in digital infrastructure and skill development. Governments are encouraged to prioritize investment in digital infrastructure and broadband access. It is argued that closing the connectivity and usage gaps is crucial, and MSMEs must be trained to effectively use digital devices and services in various sectors such as agriculture and e-health.

The analysis suggests that public-private partnerships can create an enabling environment for MSMEs to thrive. The analysis also provides insights into SmartAfrica’s initiatives for implementing the digital transformation of Africa. SmartAfrica collaborates with the Africa Union and ITU and plans to work with the private sector to implement recommendations.

The focus is on affordable access devices to close the usage gap, as well as offering capacity building around digital transformation. It is worth noting that Smart Africa plans to start initiatives in Rwanda, Nigeria, Kenya, and Congo-Brazzaville in the second quarter of 2024.

Addressing challenges for inclusive participation in the digital economy requires comprehensive and inclusive collaboration between governments, the private sector, stakeholders, and civil society. South Africa is ready to support efforts in addressing these challenges, particularly within member states. It is acknowledged that the lack of adequate digital infrastructure is a common problem in rural communities.

Therefore, it is crucial to integrate the informal sector into the formal digital economy. The analysis also highlights the lack of resources for youth and startups to invest in digital technologies. Providing additional support to these groups is seen as necessary to overcome their challenges.

Moreover, it is argued that accessibility challenges disproportionately affect people with disabilities and that policies and technologies should be designed with consideration for their needs. Another noteworthy observation is the gender inequality in access to devices, particularly in certain communities where men traditionally own smartphones before women.

This represents a challenge to economic development, as women often drive economic activities but are not given priority when it comes to access to devices. Finally, the analysis discusses the potential economic gains from removing taxes on ICT. Studies conducted with the support of GSME demonstrate the potential economic advantages of such tax cuts.

Finance ministers need to be convinced of these economic benefits, and a working group has been formed by top mobile operators in Africa to demonstrate the effects of removing taxes on ICT. The findings will be presented to finance ministers at an African Union meeting.

In conclusion, the analysis highlights the need for policies supporting the role of MSMEs, investment in digital infrastructure and skill development, SmartAfrica’s initiatives for digital transformation, the challenges of inclusive participation, the lack of digital infrastructure in rural communities, the resource challenges faced by youth and startups, the integration of the informal sector, accessibility considerations for persons with disabilities, gender inequality in access to devices, and the potential economic gains from removing taxes on ICT.

These insights provide valuable information for policymakers and stakeholders in driving a successful digital economy in Africa.

Arguments

Uruguay is slowly progressing in terms of studying the digital economy, with a lack of specific studies on the digital economy and scatter of available information

Supporting facts:

• AGESIC manages official statistics, sectoral studies and specific ago-statistics in the Uruguay state.

• There are a few established surveys on the Demand side

• The existing data is mainly about general indicators like internet access and usage, digital skill

Topics: Digital Economy, Uruguay, Statistical Measurements

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There is a need to build a digital economy measurement ecosystem in Uruguay, gathering scattered information and collaborating with key actors in the field

Supporting facts:

• No coordinated multisectoral initiative on this topic specifically

• Uruguay has a very reliable and available survey data and service provider data

• The start of talks with chambers of e-commerce to pave path towards common efforts

Topics: Digital Economy, Uruguay, Statistical Measurements, Collaboration

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Methodological issues of data reliability and accuracy in reporting financial data

Supporting facts:

• Data involving monetary issues like investment, sales, expenditures is difficult to source and often unreliable

• Current data sources mainly include household surveys

Topics: Data Reliability, Methodology, Digital Economy

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Uruguay has a regional leadership in some areas

Topics: Uruguay, Leadership

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There is a lot to learn from Mexico’s digital economy

Topics: Digital Economy, Mexico

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Report

Uruguay is making slow progress in studying the digital economy, with a lack of specific studies and scattered available information. AGESIC, the government organization responsible for managing official statistics and sectoral studies, mainly focuses on general indicators such as internet access, usage, and digital skills.

The absence of a coordinated multisectoral initiative in measuring the digital economy hinders data collection and analysis. To address this, Uruguay should build a measurement ecosystem, centralising scattered information and collaborating with key actors. Although reliable survey and service provider data are available, more specific studies are needed.

Methodological issues regarding data reliability and accuracy, particularly concerning financial data, pose challenges. Sourcing and assessing data on monetary issues like investment, sales, and expenditures prove difficult. Currently, household surveys are the primary source of data. Uruguay has demonstrated regional leadership in some aspects of the digital economy.

This shows the country’s potential to contribute to the development of the region. By learning from Mexico’s successful digital economy, Uruguay can further enhance its own progress. In conclusion, Uruguay acknowledges the significance of studying the digital economy, but faces challenges of specific studies, scattered information, and data reliability.

Building a measurement ecosystem and collaborating with key actors are essential for comprehensive and reliable data analysis. Inspired by Mexico’s success, Uruguay can strive for better outcomes. A concerted effort and collaboration are necessary to unlock the full potential of the digital economy.

Arguments

Leonardo Melo Lins is hosting a meeting on measuring the digital economy in Latin America

Supporting facts:

• The session aimed to bring together different types of data and sources

• Leonardo works for CETIC, the statistics department of the Brazilian Network Information Center

Topics: Digital Economy, Data Analysis, Latin America

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Latin America has a diversity of data sources and many indicators on digital economy

Topics: Digital Economy, Latin America, Data Sources

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Report

Leonardo Melo Lins, a member of Brazil’s CETIC, recently hosted a meeting focused on measuring the digital economy in Latin America. The objective of the session was to bring together different data sources and types to ensure a comprehensive understanding of the digital landscape in the region.

Lins emphasised the importance of utilising diverse data sources in this initiative. During the meeting, Lins highlighted key elements in measuring the digital economy. He advocated for incorporating administrative data, web scraping, and the use of an index. These various data collection methods provide a more thorough and accurate representation of the digital economy, enabling policymakers and researchers to make more informed decisions.

Lins praised the contributions and unique approaches of Uruguay and Brazil to measuring the digital economy. Latin America offers a wide range of data sources and indicators on the digital economy. This diversity allows for a comprehensive analysis of the region’s digital landscape, facilitating the identification of patterns, trends, and areas for improvement.

With access to numerous data sources, policymakers and researchers can gain a holistic understanding of the digital economy’s impact on various sectors and leverage this knowledge for further development. Furthermore, Lins expressed a keen interest in forging partnerships to enhance learning and advancement in the field of the digital economy.

Collaboration and knowledge-sharing are crucial in maximizing growth and innovation. By working with other institutions and experts, Lins aims to foster continuous improvement in measuring the digital economy and its implications. In conclusion, Leonardo Melo Lins, through his role at CETIC, hosted a meeting highlighting the significance of diverse data sources in measuring the digital economy in Latin America.

By promoting the use of administrative data, web scraping, and indices, Lins underscored the importance of accurate and comprehensive data. With a variety of data sources and indicators available, the region can gain a deeper understanding of the digital landscape and drive further progress.

Lins’s commitment to partnerships and collaboration showcases his dedication to advancing the field of the digital economy and leveraging knowledge for ongoing improvement.

Arguments

The Brazilian government has embarked on improving statistical information on national e-commerce.

Supporting facts:

• Brazil launched an initiative in May this year to improve statistics on national e-commerce.

• The initiative gives statistics on national e-commerce based on anonymized data from electronic invoices provided by the Brazilian Federal Revenue Service.

Topics: Brazilian E-commerce, Statistic Information

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The definition and clear parameters of e-commerce are essential in obtaining a reliable database for measuring the sector.

Supporting facts:

• In their initiative, the Brazilian government defined e-commerce as operations performed over the internet.

• They used certain parameters like the presence of indicator number 2 which relates to operations performed over the internet, and fiscal operation codes number 5 and 6 which relate to operations that occur within the same or different Federative units respectively.

Topics: E-commerce Definition, Measure of E-commerce, Database

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Integration of different information sources is necessary for a holistic measure of e-commerce.

Supporting facts:

• According to Silva, different indicators and statistics from varied sources can give a more comprehensive measure of e-commerce.

Topics: Information Integration, Holistic Measure, E-commerce

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E-commerce growth in Brazil has been significant over the years.

Supporting facts:

• The Brazilian e-commerce sector increased from around 36 billion R$ in 2016 to 187 billion R$ in 2022.

Topics: E-commerce, Growth

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Measuring the digital economy is a big challenge

Topics: digital economy, measurement

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Connected ideas can provide common points for a solution

Topics: connected ideas, common points, solution

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Report

The Brazilian government has launched an initiative to improve statistical information on national e-commerce. This initiative aims to provide accurate and reliable data by using anonymised data from electronic invoices provided by the Brazilian Federal Revenue Service. By collecting and analysing this data, the government seeks to obtain comprehensive statistics on the size, growth, and trends of the e-commerce sector in Brazil.

To ensure the accuracy and consistency of the data, the Brazilian government has defined e-commerce as operations performed over the internet. They have set specific parameters to determine whether an operation falls under the category of e-commerce, such as the presence of indicator number 2, which relates to operations conducted online, and fiscal operation codes number 5 and 6, relating to operations that occur within the same or different Federative units, respectively.

These clear parameters are essential for obtaining a reliable database for measuring the sector. Furthermore, it is important to integrate different sources of information when measuring e-commerce to achieve a holistic understanding of the sector. Silva highlights the significance of using various indicators and statistics from diverse sources to obtain a comprehensive measure of e-commerce.

This integration allows for a more accurate and complete assessment of the sector’s impact and potential. The growth of the e-commerce sector in Brazil has been remarkable in recent years. From approximately 36 billion R$ in 2016, the sector has expanded to 187 billion R$ in 2022.

This substantial growth showcases the increasing importance and influence of e-commerce in Brazil’s economy and highlights the need for accurate and up-to-date statistical information. In measuring the e-commerce sector, it is crucial to segregate domestic and international e-commerce due to their distinct operational differences.

Márcia Lins e Silva emphasises the importance of considering these differences when measuring the sector to gain a more accurate assessment of its performance and impact. This segregation allows for a more nuanced understanding of the challenges and opportunities associated with both domestic and international e-commerce in Brazil.

Measuring the digital economy, including e-commerce, presents significant challenges. The digital economy is constantly evolving, and traditional measurement methods may struggle to capture its full scope and impact. Developing effective measurement techniques and indicators to track the digital economy accurately is crucial for policymakers, businesses, and researchers.

To address the challenges in measuring e-commerce and the digital economy, more initiatives and partnerships are needed. The sharing of ideas and dynamic problem-solving approaches can help drive innovation in measurement techniques and overcome the complexities associated with e-commerce and the digital economy.

By fostering collaboration and partnerships, stakeholders can work together to find common points and solutions to the measurement challenges faced. In conclusion, the Brazilian government’s initiative to improve statistical information on national e-commerce is a significant step towards obtaining accurate and reliable data on the sector.

The definition and clear parameters of e-commerce are essential for creating a reliable database for measuring its size and growth. Integration of different information sources and the segregation of domestic and international e-commerce are necessary for a comprehensive understanding of the sector.

However, measuring the digital economy, including e-commerce, remains challenging, and more initiatives and partnerships are needed to find innovative solutions and address the measurement complexities. By connecting ideas and working collaboratively, stakeholders can overcome these challenges and unlock the full potential of the e-commerce sector in Brazil.

Arguments

The Latin American AI index measures enabling factors, research development, adoption, and governance

Supporting facts:

• The index consists five parts, covering a broad overview of AI in Latin America from societal perception to future of AI.

Topics: Artificial Intelligence, Latin America, Research Development, Adoption, Governance

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There is a lot for countries in the region to learn from each other to empower and improve their AI environment

Supporting facts:

• While a country like Chile leads the index, it has poor performance in some areas where other countries like Paraguay or Panama, which are worse performers overall, have better indicators.

Topics: Artificial Intelligence, Learning, Country Collaboration

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The region has developed its own ecosystem for training AI researchers

Supporting facts:

• There’s a decrease in the percentage of authors trained outside Latin America from 95% to 60% over the last 30 years.

Topics: Workforce Training, Artificial Intelligence, Latin America

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Countries should develop a shared AI vision and strategy

Supporting facts:

• The strongest correlation between score and a particular indicator was the presence of a vision and strategy.

Topics: Artificial Intelligence, Strategic Planning, Vision, Governance

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Countries need to increase AI-associated skills in workforce and develop AI literacy

Supporting facts:

• Relative penetration of tech skills and disruptive skills (specific to AI) is below global average in countries like Chile.

Topics: Workforce Training, Artificial Intelligence, Skill Improvement

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Latin America and the Caribbean is very diverse with different challenges

Supporting facts:

• Latin America and Caribbean is not a town-south states

• We are very different

Topics: Diversity, Regional Challenges

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Report

The Latin American AI Index is a comprehensive measurement tool that assesses various factors related to the development and adoption of artificial intelligence (AI) in the region. The index measures enabling conditions for AI, research development, adoption rates, and governance.

It provides an overview of AI in Latin America, from societal perception to the future of AI. While Chile is identified as the leading country in AI development, Paraguay and Panama show better indicators in certain areas. This suggests that countries in the region can learn from each other to improve their AI environments.

Collaboration and knowledge-sharing can empower the AI ecosystem in Latin America. The region has developed its own ecosystem for training AI researchers over the past three decades. The percentage of authors trained outside of Latin America has significantly decreased, indicating the growth of a native AI research workforce.

To strengthen the AI landscape in Latin America, it is recommended that countries develop a shared vision and strategy for AI. A clear vision and strategic planning have a strong correlation with the overall AI development score. A unified approach is important in harnessing the potential of AI in the region.

Additionally, countries need to invest in increasing AI-associated skills in the workforce and promoting AI literacy. The current penetration of tech skills and disruptive skills specific to AI in countries like Chile is below the global average. Enhancing the workforce’s skill sets and promoting AI literacy are essential for successful integration of AI technologies.

There are also opportunities for public investment in AI to address social problems in the region. Latin America currently accounts for only 2% of global private investment in AI. Greater investment can help reduce poverty, improve healthcare, reduce inequalities, and strengthen institutions.

Latin America and the Caribbean are diverse regions with unique challenges. Recognizing and addressing these challenges is important in finding effective solutions. By working together as a community, Latin American countries can overcome common challenges. In conclusion, the Latin American AI Index highlights the current state and potential for AI development in the region.

Collaboration, a shared vision, investment in skills, and public investment are key steps towards harnessing the full potential of AI in Latin America and addressing societal challenges.

Arguments

More than 60% of online companies have a passive presence on the internet, reflecting a low degree of digitalization.

Supporting facts:

• 10% of online businesses have internet-based business models.

• 70% of micro, small and medium firms do not have web presence at all.

Topics: Digitalization, E-commerce, Internet economy

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There was a surge in the number of new business websites and e-commerce platforms during the pandemic.

Supporting facts:

• The figures for new business websites doubled in Brazil and Chile during the first year of the pandemic, and tripled in Colombia and Mexico.

• E-commerce platforms in Brazil and Mexico saw a growth of more than 50%.

Topics: Digitalization, COVID-19 pandemic, E-commerce

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There’s a big challenge in defining priorities on the areas of measurement in digital economy

Supporting facts:

• Valeria sees it as a challenge in terms of defining what areas should be prioritized

• Variety of actors need coordination for generation of data

Topics: Digital Economy, E-commerce, Economic Measurement

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Integration and evaluation of different types of sources is critical

Supporting facts:

• Web traffic and other innovative sources should be integrated and evaluated

Topics: Data Collection, E-commerce

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Report

The analysis focuses on digitalisation and e-commerce in Latin America and the Caribbean, highlighting several important points. Firstly, it reveals that a significant majority of online businesses in the region, specifically 70% of micro, small, and medium-sized firms, do not have a web presence at all.

This indicates a lack of digitalisation in these businesses, hindering their ability to reach a wider market and take advantage of online platforms for growth. Furthermore, the analysis points out that even among the online businesses present in the region, a large number, more than 60%, only have a passive presence on the internet.

This means that they have a limited degree of digitalisation and are not fully leveraging the potential of online platforms to expand their customer base or enhance their operations. This low level of digitalisation is seen as a negative aspect of the region’s digital landscape.

However, the analysis also notes a positive development during the COVID-19 pandemic. It states that there was a surge in the number of new business websites and e-commerce platforms in Latin America and the Caribbean. In particular, Brazil and Chile saw the number of new business websites double, while Colombia and Mexico experienced a threefold increase.

E-commerce platforms in Brazil and Mexico also witnessed significant growth of over 50%. This indicates that the pandemic had a positive impact on the digitalisation of businesses in the region, as more companies embraced online platforms to adapt to the changing business landscape.

The analysis also explores the use of big data for measuring digitalisation in the region. It highlights the limitations of big data, stating that it requires specific in-house skills and a multidisciplinary team to process and produce indicators. It argues that while big data has the potential to measure digitalisation, it cannot replicate the control and quality of official statistics.

The analysis suggests that more case studies and the development of methodological tools are necessary to better utilise big data for accurately measuring digitalisation. The establishment of an institutionalised framework for measuring digitalisation at a regional level is considered crucial.

This framework would aid in standardised evaluation, allowing for a better assessment of progress in digitalisation. It could also facilitate regional alignment, setting goals and targets to drive digitalisation efforts effectively. Coordination among various actors and the integration of different data sources are also highlighted as important factors in measuring digitalisation.

The analysis emphasises the need to integrate and evaluate various sources, including web traffic and other innovative sources, to gain a comprehensive understanding of the digital landscape. Moreover, fostering efforts for coordination among a variety of actors, particularly national authorities, is seen as essential for the production and sharing of accurate information on digitalisation.

Lastly, the analysis suggests that the digital agenda for Latin America and the Caribbean could serve as a valuable collaborative platform for addressing the challenges faced in measuring digitalisation. This highlights the importance of regional collaboration in finding solutions and making progress in the digital sphere.

In conclusion, the analysis brings attention to the current state of digitalisation and e-commerce in Latin America and the Caribbean. Despite low levels of digitalisation, the COVID-19 pandemic has led to an increase in the number of new business websites and e-commerce platforms in the region.

However, there are challenges in accurately measuring digitalisation, where big data has limitations and the need for an institutionalised framework and coordination among actors are of the utmost importance. The digital agenda is seen as a potential space for collaboration in addressing measurement challenges and driving digitalisation efforts forward.

Arguments

BEA produces statistics on trade in ICT services and potentially ICT-enabled services

Supporting facts:

• BEA started publishing these official statistics in 2016, and the data go back to 1999

• Exports of potentially ICT-enabled services were valued about $626 billion in 2022

Topics: BEA, Digital Trade, ICT-enabled services

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A fraction of sales by U.S. parents and foreign affiliates were digitally delivered or ordered.

Supporting facts:

• About 25% of those sales of services reported by U.S. parents were either digitally delivered or ordered

• For foreign affiliates, the shares were about 10 percentage points higher

Topics: Digital Trade, US Parents, Foreign Affiliates

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Report

The Bureau of Economic Analysis (BEA) plays a vital role in providing official statistics on trade in Information and Communication Technology (ICT) services. These statistics have been published since 2016, with data dating back to 1999. In 2022, exports of potentially ICT-enabled services reached an impressive value of approximately $626 billion.

One of BEA’s areas of focus is improving the response rate to surveys that gather information on digital activities. While the desired response rate was not met, BEA is actively working to enhance its efforts and increase participation. This reflects BEA’s commitment to accurate and comprehensive data collection in the rapidly evolving digital landscape.

Another noteworthy finding is that a portion of the sales made by U.S. parents and foreign affiliates were digitally delivered or ordered. Roughly 25% of sales reported by U.S. parents and approximately 35% of sales reported by foreign affiliates were made or received through digital means.

Interestingly, the share of digitally delivered sales was higher for foreign affiliates, indicating potential differences in the digital engagement strategies of U.S. businesses and their international counterparts. However, it is important to note that BEA acknowledges the limitations of its existing statistics in capturing digitally delivered trade comprehensively.

While the current statistics provide valuable insights into ICT services and potentially ICT-enabled services, BEA considers them a stepping stone towards understanding digitally delivered trade. BEA aims to be transparent and clear about the coverage of its statistics, emphasizing that they are not synonymous with digitally delivered trade.

In conclusion, the BEA’s production of official statistics on trade in ICT services and potentially ICT-enabled services offers valuable insights into the digital economy. The agency’s efforts to improve the response rate to digital activity surveys demonstrate its commitment to capturing a comprehensive understanding of the evolving digital landscape.

By recognizing the distinction between existing statistics and digitally delivered trade, BEA paves the way for further research and analysis in this field.

Arguments

Audience member questioned about the policy objective of measuring digitally ordered trade

Supporting facts:

• The audience member is an analyst of a policy management consulting group working on development consulting

Topics: digital trade, policy, measurement

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Concern over clarity and accuracy of responses in the survey about digital trade

Supporting facts:

• Queried if it’s clear for respondents that certain means of communication are excluded

• Expressed doubt over the trustworthiness of the responses, citing another presentation where 90% respondents provided the same answer

Topics: digital trade, survey, data accuracy

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Query regarding the means and cases used in B2B transactions when digitally ordered

Supporting facts:

• The majority of sales made through digital orders is related to B2B

Topics: digital trade, B2B transactions

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Daniel Ker emphasizes the importance of digital ordering and digital delivery to overcome geographical isolation and integrate into the global economy.

Supporting facts:

• Digitally ordered trade and digitally delivered trade can help countries to overcome geographical isolation.

• Measurement of engagement in digital trade is crucial to understanding barriers and opportunities.

Topics: Digital trade, E-commerce, Global economy

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Report

During the discussion, several concerns and points were raised regarding the measurement, accuracy, and clarity of digital trade. An audience member, working as an analyst in a policy management consulting group, questioned the policy objective of measuring digitally ordered trade, seeking further clarification on the purpose and goals of such measurement.

Another concern raised in the discussion related to the clarity and accuracy of responses in a survey about digital trade. Specifically, participants questioned whether respondents understood which means of communication were excluded from the survey. Furthermore, doubts were expressed regarding the trustworthiness of the responses, citing a previous presentation where 90% of participants provided the same answer.

These concerns highlight the need to ensure the validity and reliability of data collected through surveys. The discussion also highlighted the importance of measuring digitally ordered trade in business-to-business (B2B) transactions. It was noted that a significant portion of sales made through digital orders are in the context of B2B transactions.

This underscores the need to understand the means and cases used in such transactions when they are conducted digitally. Furthermore, the potential of digitally ordered and delivered trade to help countries overcome geographical isolation and integrate into the global economy was emphasised.

The speakers highlighted the importance of measurements that allow for a better understanding of the barriers and opportunities countries face. Digitally ordered trade and digitally delivered trade can contribute to economic growth and the achievement of Sustainable Development Goals (SDGs), including SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

In addition, a member from the Ministry of Trade of the Republic of Turkey criticised the outdated definition of e-commerce by the Organisation for Economic Co-operation and Development (OECD), arguing that it fails to consider modern practices such as social media and fulfillment.

This highlights the need for an updated and comprehensive understanding of e-commerce that encompasses contemporary business practices. In conclusion, the discussion covered various aspects of digital trade, including policy objectives, survey data accuracy and clarity, B2B transactions, and the importance of digitally ordered and delivered trade in overcoming geographical isolation.

The critique of the outdated definition of e-commerce drew attention to the necessity of adapting definitions and frameworks to reflect the evolving nature of digital trade. Policymakers should address these concerns and incorporate modern practices to better understand and leverage the opportunities presented by digital trade for economic growth and development.

Arguments

Digital trade involves multiple definitions developed by various institutions aiming to capture the same concept

Supporting facts:

• Different definitions have created confusion among statistical compilers and data users

Topics: Digital Trade, ICT

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Digitally delivered trade refers to international trade transactions delivered remotely over computer networks and is equivalent to mode one WTO got mode one cross-border supply for services

Supporting facts:

• Only services can be digitally delivered

• A digitally delivered service can be digitally ordered but not necessarily so

Topics: Digitally Delivered Trade, WTO

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A service being digitally deliverable doesn’t necessarily mean it is always digitally traded

Supporting facts:

• The actual digital delivery depends on factors like digital skills, infrastructure and regulatory environment

Topics: Digital Trade, Services

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The best source for measuring digitally delivered trade are international trading services surveys

Supporting facts:

• In the absence of surveys or reliable data, the handbook recommends the use of expert judgment shares

Topics: Digital Trade, Surveys

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The handbook, especially the second edition, represents a significant step forward in the measurement of digital trade.

Supporting facts:

• There is a reporting template for digital trade statistics.

• Clarified many concepts and provided clear compilation guidance.

Topics: handbook, digital trade

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Measuring digitally delivered trade is easier than digitally ordered trade.

Supporting facts:

• Digitally delivered services already have standards, definition, recording principle in balance of payments.

• Getting the international dimension for digitally ordered goods is difficult since total e-commerce sales data is hard to carve out.

Topics: digitally delivered trade, digitally ordered trade

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The handbook launched a coordinated statistical capacity building program to support countries in implementing its guidance.

Topics: handbook, capacity building program

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A Handbook on Measurement of the Digital Trade is in use.

Supporting facts:

• The Handbook has been put into action.

• The first regional workshop on measuring digital trade has taken place.

• The workshop was held for the Arab region. It was funded by the WTO and the Arab Monetary Fund and organized with other institutions.

Topics: Digital Trade, Measurement Methods, Capacity Building

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More regional workshops are being planned for 2024.

Supporting facts:

• Workshops are in the pipeline for the Caribbean region, Africa and Asia.

• These are part of the joint capacity building initiative in the field of digital trade measurement.

Topics: Digital Trade, Measurement Methods, Capacity Building

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The importance of measuring digitally ordered trade due to policy implications and negotiations ongoing at the WTO

Supporting facts:

• All regional trade agreements cover digital trade provisions

• 90 economies covering 90% of trade are involved in negotiations on e-commerce rules at the WTO

Topics: Digital Trade, WTO, Policy Implications, E-commerce rules

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The question of applying customs duties on electronic transmissions will need deciding by WTO ministerial conference

Supporting facts:

• There has been a moratorium on customs duties for electronic transmissions since 1998

• The current practice might be made permanent, continued or scrapped

Topics: WTO, Digital Trade, Customs Duties, Electronic Transmissions

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Goods and services simultaneously digitally ordered and digitally delivered depend on what is being sold

Topics: Digital Trade, Goods and Services

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Barbara D’Andrea Adrian believes that the definition of e-commerce includes the cost of marketing incurred in trading goods

Supporting facts:

• She stated that WTO definition of e-commerce includes marketing

• She added that marketing costs are incurred in trading a good digitally through computer networks

Topics: e-commerce, social media, marketing

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Report

Digital trade is a complex concept with various definitions created by different institutions, leading to confusion among statistical compilers and data users. This lack of uniformity in definitions has hindered the accurate measurement and understanding of digital trade. However, digitally delivered trade, which involves remote international trade transactions conducted over computer networks, has gained importance.

To accurately measure digital trade, factors such as digital skills, infrastructure, and regulatory environment need to be considered. Digitally delivered services have been growing at a faster rate than goods trade, emphasizing their significance. The Handbook on Measurement of Digital Trade has provided clear guidance and launched a capacity-building program to support countries in measuring digital trade.

Regional workshops have been organized, and ongoing negotiations at the WTO focus on e-commerce rules and potential customs duties on electronic transmissions. Aligning with the WTO’s definition of e-commerce is crucial, as it covers the cost of marketing incurred in trading goods.

In conclusion, while the multiple definitions of digital trade have caused confusion, accurately measuring digitally delivered trade and aligning with the WTO’s definition will help countries harness the potential of digital trade for economic growth and development.

Arguments

Ruth Bicepi has been appointed head of the newly created Bank of Botswana Digitalization and Innovation Hub

Supporting facts:

• Ruth Bicepi started in this position from January 1st this year.

• The Hub aims to monitor local and global fintech development in Botswana.

• The Hub is tasked with providing appropriate regulatory responses to fintech developments.

Topics: Banking, Digitalization, Innovation, Regulation

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The Bank of Botswana Digitalization and Innovation Hub aims to foster financial inclusion and fintech activity in Botswana

Supporting facts:

• The Hub plans to establish a regulatory sandbox to catalyze and accelerate the adoption of innovative fintech-driven digital payment solutions.

• The Hub is to lead measurement of fintech activity in Botswana.

• One of their priorities is research in fintech-related areas such as the central bank digital currencies, regtech, subtech, and virtual assets.

Topics: Financial inclusion, Fintech, Regulation

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Ruth Bicepi has extensive experience in central banking and digitalization.

Supporting facts:

• Ruth Bicepi has had a 25-year career in central banking, holding executive and leadership positions.

• She has in-depth knowledge and expertise in multiple fields including ICT at the Bank of Botswana.

• She has led numerous digitalization projects, including the SADC fintech landscape mapping survey.

Topics: Banking, Digitalization, Innovation, Leadership

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E-commerce is about ordering and has both a domestic and an international component

Supporting facts:

• Orders placed via the seller’s own websites or apps or via third party marketplaces or platforms, via machine generated and readable messages, as well as voice commands or voice orders issued to virtual assistants and chat bots are included under the concept of digital ordering.

Topics: E-commerce, Digital trade

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Digital trade is about ordering and delivery and only has an international connotation

Supporting facts:

• Both goods and services can be digitally ordered, including digitally delivered services and the financial services.

Topics: Digital trade

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Businesses are the main users of e-commerce from a production and selling point of view

Supporting facts:

• Businesses exist to produce and sell things. E-commerce is a way for them to sell things and therefore it’s not surprising that businesses are going to be the main users of e-commerce from a production and selling point of view. And that extends to the international arena as well.

Topics: E-commerce, Business

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Daniel Ker emphasizes the importance of written requests for capacity building, he states that without them it is very hard to mobilize resources and donors

Supporting facts:

• The first regional workshop on measuring digital trade has already been held

• Demand for capacity building and measuring digital trade is demand-driven

Topics: Digital Trade, Capacity Building, Regional Workshop

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High degree of confidence in the data received from respondents

Supporting facts:

• Questionnaires are developed through qualitative testing

• Specific includes/excludes statements are provided to respondents

• Data is checked for consistency over time

Topics: Data Accuracy, Questionnaire Design

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digital trade offers businesses a global shop window

Supporting facts:

• The internet can offer businesses anywhere in the world a global shop window

• Digital ordering is the means by which they can purchase

• Digital delivery in some cases the means by which they can receive what they get

Topics: digital trade, internet, global economy

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Report

Ruth Bicepi has recently been appointed as the head of the newly established Bank of Botswana Digitalisation and Innovation Hub. This Hub has been created with the objective of monitoring and responding to fintech developments, promoting financial inclusion, and leading the measurement of fintech activity in Botswana.

Bicepi brings extensive experience in central banking and digitalisation, having held executive and leadership positions throughout her 25-year career. Notably, she has demonstrated strong knowledge and expertise in multiple areas, including information and communication technology (ICT) at the Bank of Botswana.

Bicepi has also led various digitalisation projects, including the SADC fintech landscape mapping survey. The Bank of Botswana Digitalisation and Innovation Hub aims to foster financial inclusion and encourage fintech activity within the country. To achieve this, the Hub plans to establish a regulatory sandbox, which will serve as a platform for testing and implementing innovative fintech-driven digital payment solutions.

This initiative aims to catalyse and accelerate the adoption of such solutions, enhancing financial inclusion in Botswana. The Hub will also take the lead in measuring fintech activity in the country, ensuring that accurate data is available to inform policy-making and strategic decision-making processes.

As part of their research priorities, the Hub will explore fintech-related topics, such as central bank digital currencies, regtech, subtech, and virtual assets. In the realm of e-commerce, it is highlighted that ordering is a fundamental aspect of this digital trade practice.

It encompasses both domestic and international components. Businesses, particularly those involved in production and selling, are the main users of e-commerce. This applies not only to domestic transactions but also extends to the international arena. A significant observation is that cross-border trade still predominantly revolves around the exchange of goods, rather than services, in many countries.

However, some nations have successfully modified their customs reporting procedures to identify and flag digitally ordered shipments crossing their borders. This adaptation accommodates the growing influence of e-commerce in international trade. Daniel Ker emphasises the importance of measuring digital trade and engaging in capacity-building efforts.

He underscores that it is crucial for potential beneficiaries to initiate conversations, as this facilitates the allocation of resources and donor support. Ker notes that capacity-building requests can be made at both the regional and bilateral levels, encouraging interested parties to reach out via the provided email addresses.

In terms of data collection, there is a high degree of confidence in the received data from respondents. Questionnaires undergo qualitative testing and are designed to ensure the accuracy and consistency of the collected information over time. This meticulous approach contributes to reliable and robust data analysis.

Regarding digital trade, it serves as a global shop window for businesses worldwide, offering them the opportunity to expand their reach and access new markets. Digital ordering plays a central role in facilitating business-to-business transactions, especially in manufacturing industries, where a significant volume of goods is exchanged.

The integration of supply chains has led to an increased number of digital orders. Overall, Ruth Bicepi’s appointment as the head of the Bank of Botswana Digitalisation and Innovation Hub represents a significant step towards promoting fintech activity and financial inclusion in the country.

The Hub’s focus on monitoring and responding to fintech developments, along with its commitment to measuring fintech activity, will play a pivotal role in shaping the future of the digital economy in Botswana. Additionally, the insights gained from the analysis highlight the importance of e-commerce, cross-border trade, capacity building, and accurate data collection in understanding and harnessing the potential of digital trade.

Arguments

The second edition of the handbook on measuring digital trade provides more defined and rich guidelines for compilation

Supporting facts:

• The 2nd edition provides a richer compilation guidance for statisticians

• It provides clarifications and is more defined compared to the first edition

Topics: Digital Trade, Measurement Handbook, Trade Statistics

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Digital trade includes transactions included in the National Accounts Production Boundary

Supporting facts:

• Digital trade is defined by the nature of transaction

• It includes all international trade that is digitally ordered or delivered

Topics: Digital Trade, National Accounts Production Boundary, International Trade Statistics

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All economic sectors can be both buyers and sellers in digitally ordered trade

Supporting facts:

• Orders can be placed via sellers own websites or apps or via third party marketplaces or platforms

• Even voice commands or voice orders issued to virtual assistants and chat bots are included under digital ordering.

Topics: Economic sectors, Digital Trade, Buyers and sellers

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Digital intermedia platforms play a significant role in facilitating digital trade and have a significant role in the economy

Supporting facts:

• DIPs enable new activities, new business models

Topics: digital trade, economy, Digital intermedia platforms

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Transactions intermediated by DIPs should be included in international trade statistics

Supporting facts:

• Transactions intermediated by DIPs are covered by concepts like digitally ordered trade and digitally delivered trade

Topics: Digital intermedia platforms, international trade

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Report

The second edition of the handbook on measuring digital trade provides statisticians with clearer and more specific guidelines. This edition is an improved version, offering richer guidance for compiling data on digital trade. The handbook aims to assist in accurately measuring digital trade by providing clarification and definition.

Digital trade is defined by the nature of the transaction, encompassing all international trade that is digitally ordered or delivered. This includes transactions conducted through various channels, such as sellers’ own websites or apps, third-party marketplaces, or even through voice commands issued to virtual assistants.

The handbook emphasizes the importance of considering these different channels when measuring digital trade. Businesses are identified as the main users of e-commerce, making their contributions to digital trade crucial. Measuring digitally ordered trade by businesses is considered a priority.

The handbook highlights that both domestic and international transactions can be measured, underscoring the importance of accurately capturing this data. Digital intermedia platforms (DIPs) play a significant role in facilitating digital trade and have a notable impact on the economy.

These platforms enable new activities and business models and serve as intermediaries for digital transactions. They are essential in connecting buyers and sellers, contributing to the growth of digital trade. To accurately record transactions, the handbook emphasizes the need to distinguish the supply of goods and services from the intermediation services provided by DIPs.

It is essential to break out the fee charged by these platforms and track its allocation. The handbook provides examples and compilation guidance on how to effectively break down and track these fees, ensuring accurate measurement. Lastly, the handbook states that transactions intermediated by DIPs should be included in international trade statistics.

By recognizing the significance of these transactions, international trade data can better reflect the true scope of digitally enabled trade. In conclusion, the second edition of the handbook on measuring digital trade provides statisticians with clearer guidelines, contributing to an improved understanding and accurate measurement of digital trade.

It highlights the importance of businesses as key participants and emphasizes the role of digital intermedia platforms in facilitating digital trade. By distinguishing intermediation services and accurately tracking fees, the handbook ensures comprehensive and accurate data collection. Including transactions intermediated by DIPs in international trade statistics enhances the recognition of digitally enabled trade’s impact on the global economy.

Arguments

Canada has two large e-commerce survey programs: Canadian Internet Use Survey and Survey of Digital Technology and Internet Use

Supporting facts:

• Canadian Internet Use Survey is the main source of household e-commerce statistics, while the Survey of Digital Technology and Internet Use is for enterprises

• Business to business online sales account for the majority of the value of online sales

Topics: E-commerce, Surveys, Canada

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ICT use and e-commerce survey measures the impact of digital technologies on the operations of Canadian enterprises across all sectors

Supporting facts:

• The survey is conducted every second year and targets all enterprises with five or more employees

• Stats Canada’s business register is used to draw sample

Topics: Digital technology, Business operations, Canada

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E-commerce sales in Canada are significant with $400 billion in 2021, majority from the manufacturing, wholesale trade and transportation sectors

Supporting facts:

• 72% of all e-commerce sales are business-to-business

• Retail trade was approximately 9% of all e-commerce trade

Topics: E-commerce, Economic sectors, Canada

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Six out of every $10 that are ordered online in Canada are for physical goods

Supporting facts:

• 23% are digitally delivered goods or services

• 18% of the value for other services

Topics: Online sales, Physical goods, Canada

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80% of the value of online sales from Canada goes to other customers in Canada

Supporting facts:

• 16% goes to the United States

• 4% of the value of online sales goes to other regions

Topics: Online sales, Canada

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E-commerce definition is not exclusive of social media but the transactional aspects should be considered

Supporting facts:

• Social Media has evolved to include instant buy now systems integrated which can be part of e-commerce

• Facebook marketplace enables buying and selling, serving as an online marketplace

Topics: E-commerce, Social media, Definition of e-commerce

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Report

Canada has two main e-commerce survey programs: the Canadian Internet Use Survey and the Survey of Digital Technology and Internet Use. These surveys provide statistics on household and enterprise e-commerce in Canada. The ICT use and e-commerce survey focuses on measuring the impact of digital technologies on Canadian enterprises across all sectors.

E-commerce sales in Canada are flourishing, with a projected $400 billion in sales for 2021. The majority of these sales come from the manufacturing, wholesale trade, and transportation sectors. Business-to-business online sales account for 72% of the value of online sales, while retail trade contributes approximately 9% of all e-commerce trade.

When it comes to online purchasing habits, physical goods make up the majority of online sales in Canada, with six out of every $10 spent online going towards physical goods. Additionally, while 80% of the value of online sales from Canada stays within the country, 16% of the value is directed towards customers in the United States, highlighting the international reach of Canadian e-commerce.

The role of social media in e-commerce is expanding, with platforms like Facebook integrating instant buy now systems and serving as an online marketplace. As a result, the definition of e-commerce has evolved to include these transactional aspects. In summary, Canada’s e-commerce landscape is experiencing significant growth, driven by various sectors.

The Canadian Internet Use Survey, the Survey of Digital Technology and Internet Use, and the ICT use and e-commerce survey provide valuable insights into the extent and impact of e-commerce in the country. The evolving role of social media underscores the need for a comprehensive understanding of the definition and boundaries of e-commerce.

Arguments

The significance of measuring digital trade and fintech activities

Supporting facts:

• The advent of digital technologies has brought about instant cross-border digital trade

• An agreed appropriate measurement framework and standards are needed for visibility, inclusion and coverage of digital trade in macroeconomic statistics

• The Bank of Botswana Digitalization and Innovation Hub established a Fintech Landscape Mapping Survey to measure digital economy activities in Botswana

Topics: Digital Trade, FinTech, Regulatory Policies

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Effective regulatory policies needed to further catalyze the digital economy

Supporting facts:

• Digital payment services and mobile money issuance are the most predominant fintech activities in Botswana

• The Hub established a regulatory sandbox to manage the risks posed by the FinTech sector to the financial system

Topics: Regulatory Policies, Digital Economy, FinTech

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Digitally deliverable services have been on the rise and need to be included in macroeconomic statistics

Supporting facts:

• The panel indicated that digitally deliverable services have been on the rise

• The need to modify customs forms where necessary to capture digital trade

Topics: Digitally Delivered Services, Macroeconomic Statistics

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The handbook on measurement of digital trade provides comprehensive guidance

Supporting facts:

• Handbook provides guidance on identification and measurement of digitally ordered and delivered services

• OECD, IMF, UNCTAD and World Trade Organization are open to requests for capacity building

Topics: Digital Trade, Measurement

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Report

The analysis of the given information highlights the importance of measuring digital trade and fintech activities. It emphasizes the need for aligning these measurements with recommended frameworks and standards to ensure accurate and consistent data. The Bank of Botswana Digitalisation and Innovation Hub has taken a proactive step in this regard by establishing a Fintech Landscape Mapping Survey to measure digital economy activities in Botswana.

This survey aims to provide visibility, inclusion, and coverage of digital trade in macroeconomic statistics. Furthermore, effective regulatory policies are crucial in further catalysing the digital economy. In Botswana, digital payment services and mobile money issuance are the most predominant fintech activities.

To manage the risks posed by the fintech sector to the financial system, the Hub has set up a regulatory sandbox, providing a controlled environment for testing and assessing innovative financial technologies. Continuous measurement and monitoring of the digital economy are also essential.

The Bank of Botswana Digitalisation and Innovation Hub conducted a survey, which revealed a significant adoption of Fintech-driven services by the financial services sector in Botswana. This indicates the growing importance of fintech in shaping the country’s economy. Another notable observation is the rise of digitally deliverable services, which need to be included in macroeconomic statistics.

It is suggested that customs forms should be modified, if necessary, to accurately capture these digital trade activities. To assist in the measurement of digital trade, a handbook has been developed, providing comprehensive guidance on the identification and measurement of digitally ordered and delivered services.

International organisations such as the OECD, IMF, UNCTAD, and World Trade Organization are open to requests for capacity building in this area, reflecting their recognition of the importance of accurate measurement in understanding and facilitating digital trade. In conclusion, the analysis emphasises the significance of measuring digital trade and fintech activities, highlighting the need for alignment with recommended frameworks and standards, effective regulatory policies, continuous measurement and monitoring, inclusion of digitally deliverable services in macroeconomic statistics, and the availability of a comprehensive handbook for measurement guidance.

These factors are essential for better understanding and promoting the digital economy.

Arguments

A significant digital divide exists in Latin America and the Caribbean

Supporting facts:

• 80% of people are internet users

• 65% households are connected to the internet

• One third of children between five and 12 are not connected to the internet

• 25% of young people between 13 and 25 are not online

Topics: Digital Divide, Internet Access

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Need for mission-oriented policy innovation to bridge the gender-digital divide and boost digital skills

Supporting facts:

• The gender access gap is relatively small, but there is an issues regarding digital skills

• Women are underrepresented in STEM fields

• Women represent only 30% of all STEM graduates

Topics: Mission-oriented Innovation, Gender-Digital Divide, Digital Skills

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Advocacy for clear governance and institutional frameworks for the design of digital policies and agendas

Supporting facts:

• Promotion of the development of clear strategies to close the digital divide

• Assessment of the maturity of governance and framework around digital strategies

• Advocacy for intergovernmental coordination committees within governance models

• Promotion of spaces for work with other stakeholders, especially private sector

Topics: Governance, Institutional Frameworks, Digital Policies

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Report

Latin America and the Caribbean face a significant digital divide, with a large portion of the population lacking access to the internet. While 80% of people in the region are internet users, there is still a sizable proportion without connectivity. Specifically, one-third of children aged five to 12 and 25% of young people aged 13 to 25 are not connected.

This digital divide presents a challenge that needs to be addressed to ensure equal opportunities for education and information access. Furthermore, there is a need to bridge the gender-digital divide and enhance digital skills in the region. Although the gender gap in internet connectivity is relatively small, there are issues concerning digital skills.

Women are underrepresented in STEM fields, accounting for only 30% of all STEM graduates. This gender disparity hinders progress towards achieving gender equality and limits the overall development potential of the region. Therefore, there is a call for mission-oriented policy innovation to tackle this divide by promoting initiatives that encourage women’s participation in STEM fields and provide them with the necessary digital skills.

To design effective digital policies and agendas, there is a strong argument for clear governance and institutional frameworks. Promoting the development of clear strategies to close the digital divide is essential. Assessing the maturity of governance and framework surrounding digital strategies can help identify areas for improvement and establish effective mechanisms for implementation.

Advocating for intergovernmental coordination committees within governance models can facilitate collaboration and coordination between different stakeholders. Additionally, promoting collaboration with other stakeholders, particularly the private sector, can bring together resources and expertise for the successful implementation of digital policies. In conclusion, the region of Latin America and the Caribbean faces significant challenges in terms of internet access and the gender-digital divide.

Addressing these issues requires a comprehensive approach that includes bridging the digital divide, enhancing digital skills, and promoting gender equality. Mission-oriented innovation can provide a comprehensive solution by incorporating various methodologies and perspectives. Collaboration with partners is crucial in closing the gender gap and effectively addressing the digital divide in the region.

Advocacy for clear governance and institutional frameworks is essential for successfully designing and implementing digital policies and agendas.

Arguments

More focus is required on the lack of adoption and use, beyond just infrastructure investment

Supporting facts:

• 95% of the world population is covered by infrastructure, but there’s lack of uptake

• Challenges include affordability of handsets and data, lack of basic digital skills, safety and security concerns and the availability of relevant content and services

Topics: Digital Inclusion, Telecommunication, Investment, Adoption

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Correct data is necessary for setting right mission and target, especially for achieving gender-equality in digital space

Supporting facts:

• In one telecom operator in Bangladesh, 80% of their female customer base was registered in the customer base as male

• Lack of correct data can lead to wrong target-setting

Topics: Gender Equality, Employee Registration, Data

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Bank of Botswana has established a national fintech working group to adopt innovative fintech initiatives

Supporting facts:

• National fintech working group includes stakeholders from different departments, industries and sectors

• The strategy aims to facilitate adoption of innovative fintech solutions to drive and deepen financial inclusion

Topics: Fintech Initiatives, Bank of Botswana, National Fintech Working Group

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Report

The analysis highlights several key points regarding digital inclusion and the challenges that need to be addressed. Firstly, it emphasizes the need for more focus on the lack of adoption and usage of digital infrastructure, going beyond just investing in it.

While 95% of the world population has access to infrastructure, there is a significant lack of uptake. This can be attributed to various challenges, including the affordability of handsets and data, a lack of basic digital skills, safety and security concerns, and inadequate availability of relevant content and services.

Furthermore, the analysis stresses the importance of collaboration in solving the digital inclusion challenge. It is noted that working across different ministries and entities is challenging and often requires the involvement of international partners. Multiple stakeholders need to come together to address the complex issue of digital inclusion.

Organizations such as the World Bank and UN agencies play a crucial role in bringing together these multi-stakeholder partnerships within countries to find solutions. Another significant point raised in the analysis is the need for correct data in setting targets, particularly in achieving gender equality in the digital space.

In one example, it is highlighted that 80% of the female customer base of a telecom operator in Bangladesh was registered as male, due to incorrect data. This underscores the importance of accurate data to ensure that the right mission and targets are set for gender equality in the digital ecosystem.

Moreover, the analysis emphasizes the urgency of focusing on women in digital inclusion efforts. It is noted that women are already lagging behind in the digital ecosystem, and simply aiming for 50% funding for women in micro-enterprise programs may not effectively bridge the digital divide.

More comprehensive and targeted approaches are required to address the specific challenges faced by women in the digital space. Additionally, the analysis highlights the establishment of a national fintech working group by the Bank of Botswana to adopt innovative fintech initiatives.

This working group includes stakeholders from different departments, industries, and sectors, aiming to drive and deepen financial inclusion. The presence of a cross-sectoral strategy for the group is considered essential, and the speaker welcomes any guidance in developing such a strategy.

In conclusion, the analysis underscores the need for a holistic approach towards digital inclusion, beyond infrastructure investment. Collaboration, accurate data, and targeted efforts towards women are crucial to bridge the digital divide. The establishment of a national fintech working group illustrates a proactive step towards adopting innovative fintech solutions for financial inclusion.

The analysis provides valuable insights into the challenges and opportunities for achieving digital inclusion and highlights the importance of multi-stakeholder collaboration and targeted strategies.

Arguments

Mission-oriented innovation is about formulating measurable, time-bound goals that necessitate investment in different sectors and require a portfolio of projects and investments.

Supporting facts:

• Mariana Mazzucato’s work influenced EU policies and triggered new thinking among governments.

• Missions often combine quantifiable and intangible goals.

• Viable Cities Commission in Sweden developed an interesting dynamic portfolio approach.

Topics: Innovation, Mission-oriented Innovation, Sustainable Development Goals

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Mission-oriented innovation in the global south potentially requires the adaptation of existing practices and coordination mechanisms.

Supporting facts:

• Jal Jeevan mission in India provides tap water to all households by 2024 through strategic investments in technological innovations.

• In London conference 2008, multiple global south governments committed to provide access to family planning methods by 2020, and now by 2030 with country-specific goals.

Topics: Global South, International Development, Policy Coordination

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Mission should have longevity beyond electoral cycles, it requires agreement and traction from populace and industry

Supporting facts:

• Transition to net zero by 2050

• Change of administration or government should not deter mission

Topics: Policy Design, Election, Industry, Public

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Difference in emergence of mission between top-down and bottom-up approaches

Supporting facts:

• Top-down missions often have clear commitments without much public consideration

• Bottom-up missions result from grassroots movement, eg. Germany’s Energiewende or nuclear energy exit

Topics: Policy Design, Public participation

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Mission formulation needs to consider those parts of society and industry who might lose out

Supporting facts:

• Gas and oil industry and their substantial lobbying power are example of incumbents who might be disadvantaged

Topics: Policy Design, Industry, Lobbying

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Need for level of innovation ecosystem maturity

Supporting facts:

• In Global South there’s often insufficient infrastructure and production capabilities, as seen in lack of Covid vaccine production. These should be assessed and invested in.

Topics: Innovation, Covid-19, Global North and South

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Report

Mission-oriented innovation is a strategic approach that involves setting measurable, time-bound goals that require investment across different sectors and a diverse portfolio of projects. This approach has had a significant impact on EU policies and has stimulated new thinking among governments worldwide.

In the Global South, mission-oriented innovation requires the adaptation of existing practices and coordination mechanisms to address specific challenges in those regions. For example, India’s Jal Jeevan mission aims to provide tap water to all households by 2024 through strategic investments in technological innovations.

This demonstrates the need for tailored approaches to innovation in different contexts. The public sector has historically played a crucial role in driving innovation. Governments often provide support for scientific research and development, leading to transformative breakthroughs. One notable example is the smartphone, which emerged as a result of publicly-funded research and development.

Additionally, government-backed institutions like CERN have made groundbreaking contributions to innovation. However, managing innovation investments in the public sector can be challenging. Balancing risks and rewards is particularly important in this context, as public organizations often lack portfolio management strategies.

The prevalent problems include the fallacy of isolated and insufficiently aligned investments, as well as the dominance of hype cycles and over-reliance on senior management. These issues need to be addressed to ensure the effective and efficient use of resources.

Longevity beyond electoral cycles and gaining agreement and traction from the populace and industry stakeholders are crucial for missions. This underscores the importance of establishing a sustainable and inclusive framework for mission-oriented innovation. Furthermore, missions can emerge through different approaches.

Top-down missions are often characterized by clear commitments but may lack public consideration. On the other hand, bottom-up missions result from grassroots movements and can be more responsive to the needs and aspirations of the affected communities. In formulating missions, it is essential to consider the potential impact on different sectors of society and industry.

For instance, the gas and oil industry may be disadvantaged due to the shift towards sustainable goals. Therefore, inclusive mission formulation is necessary to ensure that all stakeholders are taken into account. Assessing and investing in infrastructure and production capabilities are crucial for innovation ecosystem maturity, particularly in the Global South.

The lack of Covid vaccine production in the region highlights the insufficient infrastructure and production capacity. Addressing these gaps is important to foster innovation and ensure equitable access to new technologies and solutions. Lastly, prioritizing and dictating solutions from the Global North to the Global South is not ideal.

Instead, missions in low-income countries should originate from inquiry and differential understanding, driven by the people affected. It is vital to empower and involve local communities to ensure that their needs and aspirations guide mission formulation. In conclusion, mission-oriented innovation represents a strategic and measurable approach to driving positive change.

It has the potential to influence policies, trigger new thinking, and address complex challenges. However, it requires careful consideration of different factors, including adaptation to local contexts, portfolio management strategies, engagement with stakeholders, and a focus on equity and inclusivity.

By implementing these principles, mission-oriented innovation can contribute to sustainable development and the achievement of the UN Sustainable Development Goals.

Arguments

Mission-oriented innovation is seen as a powerful tool to address the gender-digital gap in partner countries

Supporting facts:

• German Development Corporation is committed to a feminist development policy in the digital age, focusing on inclusive digital public infrastructure, fair regulation and digital skill

• The collaboration with OECD aims to explore the potential of mission-oriented innovations

Topics: mission-oriented innovation, gender-digital gap, low and middle-income countries

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Technical advancements should not perpetuate existing discrimination, particularly based on gender

Supporting facts:

• Despite increased global connectivity, 260 million fewer women than men have internet access

• Women, particularly in low- and middle-income countries, face exclusion from digital opportunities, impacting areas like health services and employment in the digital economy

Topics: Gender Equality, Discrimination, Digital Transformation

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Achieving gender equality in the digital sphere is crucial

Supporting facts:

• Closing the digital gender divide is an important priority for the ministry

• Women in low and middle-income countries face exclusion from digital opportunities

Topics: Gender Equality, Digital Sphere

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Report

In a collaborative effort between the German Development Corporation and the Organisation for Economic Co-operation and Development (OECD), mission-oriented innovation is seen as a powerful tool to address the gender-digital gap in partner countries. The focus of this initiative is on creating inclusive digital public infrastructure, establishing fair regulations, and developing digital skills.

The aim is to bridge the gender divide in access to and usage of digital technologies in order to achieve gender equality in the digital sphere. It is crucial to ensure that technical advancements do not perpetuate existing discrimination, particularly based on gender.

Despite increased global connectivity, there are still 260 million fewer women than men who have internet access. This disparity is particularly evident in low- and middle-income countries, where women face exclusion from digital opportunities. This exclusion has negative consequences in areas such as access to healthcare services and employment in the digital economy.

Therefore, addressing this issue and striving for equal digital opportunities for all genders is imperative. The achievement of gender equality in the digital sphere is considered a significant priority. The ministry recognises the importance of closing the digital gender divide and is committed to taking action to ensure that women in low- and middle-income countries are not left behind in the digital revolution.

By providing equal access to digital opportunities and resources, women can actively participate in and benefit from the digital sphere. In conclusion, the collaborative efforts of the German Development Corporation and the OECD in promoting mission-oriented innovation offer a promising approach to addressing the gender-digital gap in partner countries.

Prioritising inclusive digital infrastructure, fair regulation, and digital skill development are key in creating equal opportunities for all genders. It is vital to be cautious and ensure that technical advancements do not perpetuate gender-based discrimination. Bridging the digital gender divide is crucial for achieving gender equality in the digital sphere and enabling women in low- and middle-income countries to fully participate in the digital revolution.

Arguments

The session is about exploring mission-oriented innovation and its usefulness in addressing the gender digital divide

Supporting facts:

• Conducting a session to discuss mission-oriented innovation and gender digital divide

• Some audience members are unfamiliar with mission-oriented innovation

• Few audience members work on the gender digital divide

Topics: mission-oriented innovation, gender digital divide

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Stella Deppe acknowledges and appreciates the initiative of the Bank of Botswana to establish a fintech working group

Supporting facts:

• Bank of Botswana has established a fintech working group that is aimed at facilitating the adoption of innovative fintech initiatives at the national level

• The group comprises stakeholders from various sectors such as the financial service sector, and government departments, among others

Topics: Bank of Botswana, Fintech working group

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Stella Deppe emphasizes the importance of comprehending the role of development cooperation providers and actors in mission-oriented innovation

Supporting facts:

• Stella Deppe indicated that GIZ and the ministry are collaborating with the OECD to better understand their role in mission-oriented innovation

Topics: Mission-oriented innovation, Development cooperation providers

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Report

This session explores the concept of mission-oriented innovation and its potential in addressing the gender digital divide. One of the supporting facts is that some audience members are unfamiliar with mission-oriented innovation, while few audience members actually work on the gender digital divide.

The session aims to explore the usefulness of mission-oriented innovation in bridging this divide. Stella, who works for GIZ, an organisation that implements projects on subjects like the gender digital divide, supports the use of mission-oriented innovation to work on this issue.

She aims to understand the background and experiences of the audience regarding the gender digital divide. The Bank of Botswana has taken an initiative by establishing a fintech working group with the goal of facilitating the adoption of innovative fintech initiatives at the national level.

This group comprises stakeholders from various sectors, such as the financial service sector and government departments. Stella Deppe acknowledges and appreciates this initiative, recognizing its potential to drive and deepen financial inclusion, particularly for marginalised communities and small and medium enterprises.

Ruth Baitsepi mentioned that the fintech group aims to deepen financial inclusion for these communities and enterprises. Stella also emphasises the importance of comprehending the role of development cooperation providers and actors in mission-oriented innovation. GIZ and the ministry she works with are partnering with the OECD to better understand this role.

She believes that a better understanding and implementation of mission-oriented innovation in a concrete and evidence-based way is crucial to avoid any “mission washing.” To summarise, this session explores the potential of mission-oriented innovation in addressing the gender digital divide.

Stella Deppe fully supports this approach and appreciates the efforts made by the Bank of Botswana in establishing a fintech working group to promote innovative fintech initiatives. She believes in working towards a better understanding and implementation of mission-oriented innovation in a concrete and evidence-based manner, emphasising the importance of comprehending the role of development cooperation providers in this process.

Arguments

Digital transformation involves focusing on the government, economy, and society

Supporting facts:

• Digital transformation is central to the development of inclusive, responsible, and sustainable digital economy.

Topics: Digital Transformation, Economy, Government

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Digital transformation should also be sustainable, considering environmental and climate change aspects

Supporting facts:

• The process of digitalisation has direct environmental costs, including energy use and the extraction of raw materials.

• Digital tools can support local communities in becoming more adaptive and resilient to climate change challenges.

Topics: Digital Transformation, Sustainability, Climate Change

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The government supports the Safe Digital Access Program which promotes inclusive digital access for underserved communities.

Supporting facts:

• The program has been running since 2017-18 and operates in five countries: Kenya, Nigeria, South Africa, Brazil, and Indonesia.

• As of June 2023, it has reached 3,282 communities and over 10.2 million people direct beneficiaries.

Topics: Safe Digital Access Program, Digital Access

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A country needs a detailed diagnostic to understand their baseline capacity in cybersecurity.

Supporting facts:

• Programmes and projects with a focus on cybersecurity capacity building are carried out by the Foreign Commerce and Development Office.

• Oxford University developed a self-assessment tool known as the Cybersecurity Capacity Maturity Model (CCMM) that helps countries understand their baseline capacity in cybersecurity.

Topics: cybersecurity, Digital Access Programme

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Engaging with key stakeholders, especially within the private sector, is crucial for addressing cybersecurity challenges.

Supporting facts:

• Stakeholders that contribute significantly to cybersecurity are not only in government.

• The private sector, including industries, can help to identify the challenges they face and therefore the areas where initiatives are necessary for improvement.

Topics: private sector engagement, cybersecurity

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FCDO’s approach to digital development includes a flagship initiative called the digital access programme, along with 70-plus other programmes that have a digital component.

Supporting facts:

• The team owns those programmes that work on the foundations of digital development including digital identity.

• This approach allows FCDO to understand the needs of firms and enterprises from a digital perspective.

Topics: Digital Development, Digital Access Programme, FCDO

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E-commerce is a crucial part of FCDO’s digital development framework.

Supporting facts:

• FCDO has had a trade and development programme supporting UNCTAD in working with partner countries to develop e-commerce strategies.

• An example is the one developed with Rwanda.

Topics: E-commerce, Digital Development, FCDO

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Report

Digital transformation is crucial for developing an inclusive, responsible, and sustainable digital economy. This process involves focusing on the government, economy, and society. Inclusivity is a key aspect, as approximately 2.6 billion people currently do not have online access, with women facing greater barriers.

Sustainability is also important, considering the environmental costs of digitalization and the potential for digital tools to help communities adapt to climate change. Additionally, digital standards play a central role in driving the development of a more inclusive and responsible digital economy.

The Safe Digital Access Program, supported by the government, promotes inclusive digital access for underserved communities. Cybersecurity is another crucial aspect, with a need for comprehensive understanding and engagement with key stakeholders, including the private sector. The Foreign, Commonwealth & Development Office’s (FCDO) approach to digital development, including the Digital Access Program, supports firms and enterprises from a digital perspective.

Furthermore, e-commerce is a critical part of the FCDO’s digital development framework. Understanding the needs and challenges faced by digital enterprises is important for their participation in the digital economy. Overall, addressing barriers to access, considering environmental impact, establishing digital standards, enhancing cybersecurity, and supporting digital enterprises contribute to an inclusive, responsible, and sustainable digital economy.

Arguments

Standards could help countries overcome infrastructure and expertise problems

Supporting facts:

• This could be circular because you would need standards to help them overcome, but at the same time, infrastructure and expertise is also needed to implement standards.

Topics: Standards, Infrastructure, Expertise

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Standards play a crucial role in supporting policy objectives

Supporting facts:

• ISO has launched a toolkit to help guide policy makers

Topics: Standards, Policies, ISO

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Translating complex standards into more accessible formats can engage industries more effectively

Supporting facts:

• A little book of cybersecurity was launched to break down and explain the core principles of the 27001 standard

Topics: Standards, Engagement, Industries

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Report

Standards play a crucial role in helping countries overcome challenges related to infrastructure and expertise. This is particularly evident in areas such as AI technology and cybersecurity, where standards provide a framework and guidelines for ensuring that infrastructure and expertise meet necessary requirements.

By implementing and following these standards, countries can enhance their capabilities and effectively address infrastructure and expertise problems. ISO, the International Organization for Standardization, recognizes the importance of standards in supporting policy objectives. They have launched a toolkit to assist policy makers in aligning standards with their policy goals.

This toolkit serves as a valuable resource, helping policy makers understand how standards can be integrated into policy frameworks and contribute to achieving objectives in areas such as industry, innovation, and infrastructure. One challenge with standards is their complexity, which can make them inaccessible and difficult for industries to understand and implement.

However, when complex standards are translated into more accessible formats, they can effectively engage industries. ISO has demonstrated this by launching the “Little Book of Cybersecurity,” which breaks down and explains the core principles of the 27001 standard. Making standards more digestible and easier to comprehend increases industry acceptance and implementation, leading to better adherence and overall improvement in various sectors.

E-commerce is a significant concern in international trade, with developing countries expressing apprehensions about its impact. This concern has been raised at the World Trade Organization (WTO), highlighting the need for attention to be given to the development of e-commerce policies.

Developing countries recognize the importance of e-commerce in achieving sustainable development goals and are emphasizing its inclusion in trade discussions and negotiations. As part of the digital access program, e-commerce has been identified as a priority, reflecting the recognition of its potential in promoting economic growth and digital connectivity.

While the focus on standards is crucial, it is also essential for organizations like the British Standards Institution (BSI) to pay attention to data and data-driven economies. The last Digital Economy Report from BSI emphasized the significance of data and data-driven economies in the current digital landscape.

With the increasing reliance on data and the growth of data-driven industries, BSI should allocate more resources and efforts towards understanding and addressing the challenges and opportunities associated with data. By doing so, they can further support the development of robust standards that enable efficient and secure data-driven economies.

In conclusion, standards play a vital role in addressing infrastructure and expertise problems, particularly in areas such as AI technology and cybersecurity. ISO’s toolkit for policy makers facilitates the alignment of standards with policy objectives. Making standards more accessible to industries fosters better engagement and implementation.

E-commerce is a crucial trade-related concern, emphasizing the need for its inclusion in trade discussions. Additionally, BSI should focus on data and data-driven economies to effectively navigate the digital economy.

Arguments

Standards and best practices can drive operational efficiencies and quality in organizations

Supporting facts:

• Standards provide best ways of doing things, therefore, even if not certified it will result in improvement

• Lead to removing basic function complexities enabling organizations to build on innovation

Topics: Standards, Best Practices, Operational Efficiency, Service Quality

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Standardization can build trust in new technologies

Supporting facts:

• Standards can help prove the trustworthiness of new technologies such as AI, ensuring their safer and more secure adoption

• Users are more likely to adopt technologies they trust

Topics: Standardization, Trust, New Technologies

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Fragmentation and rapid technological evolution are challenges in standardization

Supporting facts:

• As technology develops rapidly, there is an influx of new standards and best practices leading to fragmentation

• Different jurisdictions have different approaches to regulate new technologies, making it complex to keep up with the standards

Topics: Standardization, Challenges, Technological Evolution, Fragmentation

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BSI is working on international projects to accelerate standards development

Supporting facts:

• BSI is involved in initiatives like the Innovate UK Bridge AI programme, the International Quantum Standards Center, and the Global AI Network Standards (GAINS)

• These initiatives aim to provide a space for innovators and stakeholders to understand and engage in standards development

Topics: BSI, International projects, Standards Development

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Most countries, including the UK, are good at investing GDP into innovation

Supporting facts:

• The UK government is investing in developing market sectors, both nationally and internationally

Topics: Innovation, Investment

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Organizations struggle when they try to scale what they’re trying to develop

Supporting facts:

• The UK government is investing in developing market sectors, both nationally and internationally, but struggles to keep up with the infrastructure needs for scale

Topics: Business scaling, Innovation

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The benefits and outcomes of standardization are often not clear

Supporting facts:

• Penetration rate of cybersecurity standard globally is very low, especially in the UK with only 9 or 10 percent businesses certified

Topics: Standardization, Outcomes

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There’s a need for greater education in promoting the benefits of standardization

Supporting facts:

• Educational toolkit is already in use as a first step towards this education on standardization

Topics: Education, Standardization

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David Cuckow believes in a public-private dialogue for MSME regulation, not just regulators imposing rules.

Supporting facts:

• There needs to be a initiative where all the stakeholders including government, industry and MSMEs get involved

• Cuckow emphasizes this idea through the example of a panel discussion in Nairobi involving various stakeholders

Topics: MSME, Regulation, Public-Private Dialogue

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Cuckow supports the idea of incorporating knowledge of international standards within countries

Supporting facts:

• There’s a proposal for a train-the-trainer approach to make trainers aware of the existence of international standards and hopefully train them in that

• This is seen as necessary for the higher-level educational entities within the country

Topics: International Standards, Education

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Unlocking the value of data is a major challenge due to concerns around law, privacy, and commercial value.

Supporting facts:

• Organizations tend to not share data due to these concerns

• The power of sharing data has been appreciated during the pandemic such as in vaccine development.

• The National Data Strategy for the UK focuses on unlocking the value of data for the economy.

Topics: Data sharing, Data security, Law, Privacy

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Standardization in data presents a complex situation, with around 5,000 to 6,000 different standards.

Supporting facts:

• Many standards exist in areas such as quality, cybersecurity, privacy, AI etc.

Topics: Data sharing, Data standardization, Interoperability

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A data sharing and interoperability framework can simplify the data sharing process.

Supporting facts:

• The framework would guide users through acquiring, protecting, valuing, combining and removing data.

• Such framework can be shared across national standards bodies globally.

Topics: Data sharing, Interoperability, Framework

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Report

The analysis explores the role of standards and standardization in driving operational efficiencies, quality, and trust within organisations. It highlights the importance of standards as best practices and asserts that their implementation can lead to improvement even without formal certification.

Additionally, standards are instrumental in removing complexities from basic functions, enabling organisations to innovate. Standardization is shown to be crucial in establishing trust in new technologies, particularly AI. Adhering to standards ensures the trustworthiness and reliability of AI, promoting secure adoption.

Users are more likely to adopt technologies supported by established standards. Contrary to the belief that standardization stifles innovation, it is highlighted that standards actually facilitate innovation. Streamlining repetitive tasks provides space for innovation, as exemplified by Wi-Fi and power standards that have enabled technological advancements.

While standardization offers numerous benefits, it also faces challenges due to rapid technological evolution and resulting fragmentation. The influx of new standards and best practices, along with jurisdictional differences in regulating technologies, presents complexities in the standards landscape. Efforts are needed to involve small enterprises and startups in standard development processes, helping them scale their products.

The British Standards Institution (BSI) is actively engaged in international projects to expedite standards development and foster innovation. The UK government’s investment in innovation is acknowledged but struggles to meet infrastructure needs for scaling innovations. Comprehensive education and awareness programs are necessary to promote the benefits of standardization.

Lack of clarity regarding the advantages and outcomes of standardization is identified as a hurdle. Public-private dialogue is seen as crucial for MSME regulation, and guideline standards and education are recommended to support MSME growth. Incorporation of international standards within educational systems and promoting knowledge about global standards is proposed.

Standards are shown to promote interoperability in technological infrastructure, particularly in broadband and ITU-based spectrum distribution. Data sharing faces challenges related to law, privacy, and commercial value, despite its recognized benefits. A data sharing and interoperability framework is proposed to simplify the process.

In conclusion, standards and standardization have a significant impact on operational efficiencies, quality, trust, and innovation. However, challenges such as fragmentation and the need for education persist. Efforts are required to ensure that standards keep pace with technological advancements and are accessible to all stakeholders.

Arguments

Role of standards in supporting the transition to a digital economy and facilitating digital trade

Supporting facts:

• Standards help organizations deliver what they promise to their customers

• Standards help build trust and provide stability in the digitalization transformation.

• Standards support policy initiatives and facilitate international and national trade.

Topics: Standards, Digital economy, Digital trade

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Standards need to be more visible to policymakers

Supporting facts:

• Policymakers needs to be aware of the existence of standards to use them

• There needs to be a greater collaboration between the National Standards Bodies and their policymakers to build trust and increase visibility of the Standards Body.

Topics: Standards, Policy making

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Digitalization and e-commerce do not occur in a vacuum and are linked to other sectors and programs

Supporting facts:

• BSI is working with the FCDO on the Standards Partnership Program

• The Standards Partnership Program is a collaborative program with 11 different countries aiming to promote bilateral and international trade

Topics: BSI, FDCO, Standards Partnership Program, Digital Access Program

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Synergies between the Standards Partnership Program and the Digital Access Program can be harnessed for mutual benefit and development

Supporting facts:

• BSI is looking actively to combine these two initiatives

Topics: Standards Partnership Program, Digital Access Program, Trade enhancement

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Report

Standards are crucial to support the transition to a digital economy and facilitate digital trade. They play a vital role in helping organizations deliver on their promises to customers, building trust and stability during the process of digitalization. Standards also support policy initiatives and promote both international and national trade.

However, there is a need to increase policymakers’ awareness of standards and their importance in decision-making. Collaboration between National Standards Bodies and policymakers is necessary to enhance visibility and ensure effective utilization of standards. This collaboration will contribute to the integration of standards into policy frameworks, strengthening their impact on economic growth and development.

In terms of data privacy, digital identification, and interoperability, standards play a critical role. For example, ISO IEC 27001 ensures information security and protects user data. Standards for digital identification and provenance are essential for digital services in different sectors. Interoperability standards, meanwhile, ensure smooth integration of digital systems, promoting efficiency and reducing barriers to trade.

Looking ahead, the significant role of Artificial Intelligence (AI) management systems becomes apparent. The impending publication of the ISO IEC standard for AI management systems will influence international policy initiatives related to AI. Digitalization and e-commerce are not isolated processes, but strongly connected to other sectors and programs.

The Standards Partnership Program, initiated by the British Standards Institution (BSI) in collaboration with the Foreign, Commonwealth & Development Office (FCDO), promotes bilateral and international trade. By partnering with 11 countries, this program highlights the interconnected nature of digitalization and its impact on various industries.

Synergies between the Standards Partnership Program and the Digital Access Program can be leveraged for mutual benefit and development. BSI actively seeks to combine these initiatives to enhance standards, promote digital access, and support trade. In conclusion, standards are vital in supporting the transition to a digital economy and facilitating digital trade.

They build trust, ensure data privacy, promote interoperability, and guide the adoption of AI management systems. Raising policymakers’ awareness and fostering collaboration between National Standards Bodies and policymakers are crucial. The intertwined nature of digitalization and its impact on different sectors emphasizes the need to align efforts and harness synergies.

Embracing standards and collaboration will enable countries to navigate the digital revolution and thrive in the digital economy.

Arguments

Voluntary standards are beneficial to globally diverse organizations

Supporting facts:

• Standards support economy efficiency and productivity gain

• They assist in environmental sustainability and transition to net zero

• They also enhance innovation by uniting stakeholders to agree on best practices

• Standards reinforce global trade and encourage interoperability

Topics: multi-stakeholder consensus-based process, economic growth, environmental sustainability, innovation

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Standards and associated national quality infrastructure can enhance digital services & provision

Supporting facts:

• Standards can enhance digital services and provision

• This can provide a basis for firms to join global value chains

Topics: Standards, digital transformation, national quality infrastructure, digital services & provision

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There is a challenge in terms of the visibility of standards, especially to SMEs and policy makers.

Supporting facts:

• The conversation with policy makers about the role that standards can play to support their own policy objectives is really important.

Topics: Visibility of Standards, SMEs, Policy Makers

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ISO has launched a toolkit which looks at the policy maker piece and the role that standards can play to support different policy outcomes.

Topics: ISO, Policy Makers, Standards

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Engaging with industries is a challenging process.

Topics: Industries, Engagement

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Standards’ core concepts should be disseminated in simpler formats for easy understanding, especially for SMEs.

Supporting facts:

• On cyber security, a little book of cyber security was launched which takes the core principles of 27001 in an 11-page document.

Topics: Standards, SMEs, Ease of Understanding

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Report

The discussion focused on the positive impact of voluntary standards on globally diverse organizations. These standards support economic efficiency and productivity gain, contribute to environmental sustainability, and aid in the transition to net-zero emissions. They also enhance innovation by bringing stakeholders together to agree on best practices.

Additionally, voluntary standards reinforce global trade and promote interoperability. However, challenges were identified, including the globally fragmented digitization journey, which leads to a growing digital divide. This unequal progress in digitization poses challenges in meeting the United Nations Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 10 (Reduced Inequalities).

Visibility of standards, especially to small and medium-sized enterprises (SMEs) and policymakers, was identified as another challenge. It is crucial to raise awareness among SMEs and policymakers about the role of standards in supporting their policy objectives to drive adoption and impact.

Standards and associated national quality infrastructure were recognized as essential in enhancing digital services and provision. They provide a basis for firms to join global value chains, contributing to economic growth and innovation, aligning with SDG 9. The International Organization for Standardization (ISO) was commended for launching a toolkit exploring the role of standards in supporting different policy outcomes, emphasizing the significance of standards in partnership building for SDG 17 (Partnerships for the Goals).

The difficulty of engaging with industries in the standard-setting process was acknowledged, recognizing the importance of effective industry engagement for developing robust and relevant standards. Practical implementation can be improved by disseminating the core concepts of standards in simpler formats, especially for SMEs, to ensure broader adoption and compliance, leading to improved business practices and economic growth.

In conclusion, voluntary standards have a positive impact on globally diverse organizations, promoting economic efficiency, environmental sustainability, and innovation. Challenges such as the digital divide, lack of visibility, and industry engagement were identified. The importance of standards in enhancing digital services, supporting policy objectives, and fostering partnerships was highlighted.

Simplifying the dissemination of standards for better understanding, particularly among SMEs, was emphasized. This information is valuable for organizations and policymakers interested in leveraging the potential of voluntary standards to achieve the SDGs and promote sustainable development.

Arguments

PostBase Super App is the platform and digital channel provided for customers to access Korean financial services as well as other post-Indonesia services

Supporting facts:

• PostBase Super App is equipped with KrisCash QR code with national standard and connected with payment system across Indonesia.

Topics: Financial services, Digital channels

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The societal benefits of the PostBase super app

Supporting facts:

• The society can utilize various and inclusive financial services and transactions through the PostBase Super App.

• There are more than 1,800 services available through the PostBase Super App.

• Forward transfer and Kris can pay or contribute funding to a community with free monthly administration fee.

Topics: Financial inclusivity, Ease of transactions

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PostBase Gold feature

Supporting facts:

• PostBase Super App has a PostBase Gold feature which is the first digital platform to buy and sell physical gold in Indonesia.

Topics: Digital Gold trading, Innovation

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Report

The PostBase Super App is a cutting-edge digital channel that enables users to access a wide range of financial services provided by Korean institutions, as well as other post-Indonesia services. This platform is designed to offer customers a convenient and accessible way to carry out their financial transactions and other related activities.

One of the key features of the PostBase Super App is its support for Micro, Small, and Medium Enterprises (MSMEs) and other types of businesses. The app serves as a comprehensive business solution, allowing MSMEs to streamline their operations and expand their reach.

This support for businesses is crucial for achieving Sustainable Development Goal 8, which is focused on promoting decent work and economic growth. The app also plays a significant role in promoting financial inclusivity and reducing inequalities, aligning with Sustainable Development Goal 10.

Users can access a diverse range of financial services and carry out transactions with ease through the PostBase Super App. With over 1,800 services available, users have access to a wide array of financial options that suit their needs. Furthermore, the app enables forward transfers and provides users with the ability to contribute to communities, fostering a sense of shared prosperity.

These inclusive financial services have a positive impact on reducing poverty, which is one of the goals of Sustainable Development Goal 1. The PostBase Super App acts as a bridge that connects remote areas with inclusive financial services. It offers comprehensive features and services that simplify postal Cash on Delivery (COD) services, particularly in distant regions of Indonesia.

Furthermore, the app involves small and medium enterprises in providing inclusive financial services to these remote areas, contributing to Sustainable Development Goals 8 and 9. Additionally, the app includes an innovative feature called PostBase Gold, which facilitates digital gold trading. Users can buy and sell physical gold using this digital platform, which aligns with Sustainable Development Goal 9, focused on promoting industry, innovation, and infrastructure.

In conclusion, the PostBase Super App is a game-changer in the financial services industry. It provides customers with access to Korean financial services and other post-Indonesia services, while also supporting MSMEs and promoting financial inclusivity. With its comprehensive features and services, the app helps bridge the gap between remote areas and inclusive financial services.

Furthermore, the inclusion of the PostBase Gold feature demonstrates the app’s commitment to innovation. Overall, the app has a positive impact on achieving Sustainable Development Goals 1, 8, 9, and 10.

Arguments

Audience questions if the panel works with telecom operators to facilitate network deployment.

Supporting facts:

• Mention of the importance of connectivity for 4G

• Discussion on the high coverage of telecommunications in a nation with over 17,000 islands

Topics: Telecommunications, Network Expansion

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Report

During a panel discussion, the importance of connectivity for 4G was emphasised, highlighting the impressive coverage of telecommunications in a nation comprised of over 17,000 islands. This suggests significant progress in expanding network infrastructure to ensure widespread connectivity throughout the country.

The audience, intrigued by the panel’s insights, raised questions regarding potential collaborations with telecom operators to further improve network coverage. One proposed approach was exploring infrastructure co-location, where multiple operators share the same physical infrastructure, reducing costs and expanding coverage.

Another suggested solution involved utilizing edge computing facilities, which would bring data processing and storage closer to the network’s edge, improving efficiency and reducing latency. The positive sentiment from the audience regarding collaborations with telecom operators indicates a desire for collective efforts to enhance network coverage.

By teaming up with telecom operators and utilising infrastructure co-location or edge computing facilities, there is potential to boost connectivity further and bridge any existing coverage gaps. Although specific supporting facts were not mentioned in the given information, the audience’s interest in these potential collaborations indicates their belief in the benefits of working with telecom operators.

This highlights the importance of partnerships and cooperative strategies in the telecommunications industry to ensure efficient and wide-ranging network coverage. In conclusion, the panel discussion highlighted the significance of connectivity for 4G and showcased the extensive telecommunications coverage in a nation with thousands of islands.

The audience’s keen interest in collaborating with telecom operators signifies a desire for expanding network coverage through strategies such as infrastructure co-location and edge computing facilities. Such collaborations have the potential to enhance connectivity and contribute to a more inclusive and connected society.

Arguments

E-commerce is a vital tool for digitalizing MSMEs

Supporting facts:

• GSMA has been focusing on how to aid MSMEs to adopt mobile services and the mobile internet

• GSMA studied e-commerce in Africa in partnership with the Department of Business and Trade of the UK government

Topics: E-commerce, MSMEs, Digitalization

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Access to finance and development of digital skills are vital needs for MSMEs

Supporting facts:

• 40% of the e-commerce users among the MSMEs mentioned access to finance as their main challenge

• The postal network’s wide availability could potentially aid in providing digital skills and access to finance

Topics: Access to finance, Digital skills, MSMEs

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Social commerce accounts for 60% of total e-commerce in Africa, largely due to its use by MSMEs

Supporting facts:

• MSMEs in Africa primarily use social commerce for their businesses

• Informal delivery mechanisms are still prevalent

Topics: Social Commerce, E-commerce in Africa, MSMEs

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E-commerce in Africa is challenging and seldom profitable due to high delivery and warehousing costs

Supporting facts:

• A lot of funding has gone into e-commerce platforms in Africa with little profitability to show

• Delivery and warehousing constitute the main cost for these platforms

Topics: E-commerce in Africa, Profitability, Delivery and Warehousing

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Report

This analysis focuses on the impact of e-commerce on MSMEs in Africa and highlights several significant points. The GSMA has been actively working to assist MSMEs in adopting mobile services and the mobile internet. This support is crucial as e-commerce is recognized as a vital tool for digitalising MSMEs.

Additionally, the relevance of mobile service offerings and the need for connectivity are emphasised in order to maximise the benefits of e-commerce for MSMEs. Access to finance and the development of digital skills are identified as essential needs for MSMEs to effectively engage in e-commerce.

In fact, 40% of the e-commerce users among MSMEs mentioned access to finance as their main challenge. The postal network is seen as a potential partner in addressing this issue by potentially providing access to finance and digital skills through its wide availability.

However, there are challenges associated with e-commerce in Africa. One significant challenge is the low profitability of e-commerce platforms despite significant funding. This is primarily due to high delivery and warehousing costs, which constitute a major expense. It highlights the need for innovative solutions in delivery and distribution, with private startups introducing new delivery methods and aggregating services on motorbikes in certain markets.

The analysis also reveals the prominent role of social commerce in Africa, particularly among MSMEs. It is mentioned that social commerce accounts for 60% of total e-commerce in Africa, largely due to its extensive use by MSMEs. This reflects the prevalence of informal delivery mechanisms in the region.

Overall, the analysis concludes that while e-commerce presents significant opportunities for MSMEs in Africa, there are challenges that need to be addressed. Efforts should focus on supporting MSMEs in accessing finance, developing digital skills, and addressing delivery and warehousing costs.

The postal network is seen as a potential partner in these endeavours. Partnerships and innovation in delivery methods are key to improving the profitability of e-commerce platforms. In conclusion, e-commerce has the potential to greatly benefit MSMEs in Africa, but concerted efforts across various fronts are required to maximize its impact.

By addressing challenges and capitalising on the opportunities presented by e-commerce, MSMEs can achieve digital transformation and contribute to economic growth and development in the region.

Arguments

Fazal discusses the digital transformation in Indonesia

Supporting facts:

• MSMEs contribute 61% share of Indonesia’s GDP

• Female run MSMEs have a 58% share of GDP in 2022

• Post-Indonesia was established in 1740s and provides services across 17,000 islands

• Post-Indonesia has moved towards becoming a customer-centric company

• Launched PostPay super app, offering various services to retail and corporate customers

Topics: Digital Transformation, Post-Indonesia, MSMEs, E-commerce, Postal Networks

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PostPay super app is a comprehensive platform that integrates financial, postal, and business services, with more than 1800 services available.

Supporting facts:

• More than 1800 services available through the Super App.

• First digital platform to buy and sell physical gold in Indonesia.

• Payment system connected with the network across Indonesia

Topics: financial services, PostBase Super App, PostIndonesia, postal services, business solution

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PostBase has proved their reliability through GiroKos, with government funding to support over 23 million beneficiary families.

Supporting facts:

• PostIndonesia distributed government and funding from various ministries to more than 23 million beneficiary families.

Topics: PostBase, GiroKos, government funding, beneficiary families

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4G connectivity and digital services are essential for the sustenance and growth of their organization and its businesses

Supporting facts:

• They use telco services for 4G and wire line or fiber optic services

• By 2023, telco should have deployed networks up to 94.5%

Topics: 4G connectivity, Digital services, Organization growth

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Data centers providers are interested in utilizing post offices as H data centers

Supporting facts:

• Discussions are ongoing to establish 300 H data centers across Indonesia

• There is availability of fiber optics in at least 514 cities

• Issues revolve around the availability of power sources as H data centers need two different power sources

Topics: Telecom Operators, Data Centers, Connectivity

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High risk in distributing cash across remote areas

Supporting facts:

• During COVID-19, cash for 20,500,000 families was distributed

• Employees had to go through high-risk situations such as carrying cash in bags using boats, crossing jungles

• Some cases, bags with cash fell into the sea

Topics: Cash Distribution, Remote Areas, Connectivity

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Report

The digital transformation in Indonesia, particularly for Micro, Small, and Medium Enterprises (MSMEs), is being discussed with a positive sentiment. MSMEs contribute a significant 61% share to Indonesia’s GDP, highlighting their importance to the country’s economy. Furthermore, it is projected that female-run MSMEs will have a 58% share of GDP by 2022, emphasizing the vital role of women entrepreneurs in driving economic growth.

Post-Indonesia, established in the 1740s, plays a crucial role in providing postal services across Indonesia’s extensive territory, which encompasses more than 17,000 islands. To adapt to the digital era, Post-Indonesia has undergone a transformation to become a customer-centric company. As part of this transformation, the PostPay super app has been launched, offering a wide range of services to both retail and corporate customers.

The app integrates financial, postal, and business services, providing users with convenient access to over 1800 services. Fazal, in his discussion, emphasizes the importance of leveraging the postal network for digital development, particularly for MSMEs. Post-Indonesia has established diverse platforms, including physical and digital ones, to cater to the needs of MSMEs.

It has also partnered with 2.1 million MSMEs, supporting their growth and development. Physical services are provided through six regional offices, 43 main branches, and over 5,000 sub-branch offices. In addition to these physical services, digital services are delivered through the PostPay super app and a specialized MSME customer platform.

Fazal also supports the idea of digital socio-commerce and life commerce as part of the PostPay super app. Live commerce allows users to sell and buy directly, utilizing the app and live streaming features for business purposes. This highlights the app’s potential to facilitate online transactions and support the growth of MSMEs in Indonesia.

The Post Office provides value-added digital services to MSMEs, including free access to WiFi and live streaming centers. These centers, ranging from 2 to 10 in a post office, aim to provide MSMEs with opportunities for promotion and direct engagement with their customers.

The Post Office plans to expand the number of live streaming centers to 1,000 across Indonesia by 2024, further enhancing the support provided to MSMEs. However, there are challenges in achieving connectivity across Indonesia’s unique geographical landscape. With more than 17,000 islands, 300 airports, and 2,700 seaports, the country presents significant logistical challenges for establishing reliable connectivity.

Efforts to address this issue include discussions to establish 300 H data centers across the country and the availability of fibre optics in at least 514 cities. However, challenges remain, particularly with the availability of power sources for the data centers. Another challenge highlighted is the high risk involved in distributing cash across remote areas, especially during the COVID-19 pandemic.

To reach 20,500,000 families, employees had to navigate high-risk situations such as carrying cash in bags using boats and crossing jungles. In some cases, bags with cash even fell into the sea, illustrating the difficulties faced in ensuring secure cash distribution in remote areas.

In conclusion, the digital transformation in Indonesia, with a focus on MSMEs, is seen as a positive development. The Post-Indonesia, through its PostPay super app and various digital initiatives, plays a significant role in facilitating this transformation. The app integrates financial, postal, and business services, providing a comprehensive platform for users.

However, challenges in achieving connectivity and ensuring secure cash distribution in remote areas highlight the unique geographical and logistical challenges faced by Indonesia. Overall, the efforts to embrace digital transformation and leverage the postal network are crucial for the growth and development of MSMEs in the country.

Arguments

The postal network is a unique physical and logistics network important for social and digital inclusion

Supporting facts:

• There are over 650,000 post offices around the world that connect communities

• Post offices located in rural and remote areas are particularly critical for small and medium enterprises

Topics: Postal Services, Digital Inclusion, Social Inclusion

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Digital transformation is changing traditional sectors like the postal industry

Supporting facts:

• Digital is changing the way people and businesses interact and trade

• The rise of digital communication and commerce has led to the need for adaptation and integration of digital services in the postal industry

Topics: Digital Transformation, Postal Industry

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Enhancing cooperation and collaboration between different networks and sectors is crucial for advancing the digital economy

Supporting facts:

• Cross-sector collaboration can promote mutual benefits and comprehensive development

• There is a need for practical collaboration to meet the challenges and opportunities in the digital economy

Topics: Digital Economy, Cross-sector Collaboration

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Postal services have been critical for communication and tradefor centuries

Supporting facts:

• Historically, people have relied on postal services for communication and trade, including the movement of money and goods

• The postal sector is one of the oldest public service networks

Topics: Communication, Trade, Postal Services

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Importance of connectivity and digital to the future of your organization

Supporting facts:

• Life commerce uses app and live streamings for direct selling

• Host offices can add value to users and have over 4,500 connected post offices

Topics: Digital Socio-Commerce, Life Commerce, Live Streamings

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Report

The postal network, comprising of over 650,000 post offices worldwide, plays a crucial role in promoting social and digital inclusion, particularly in rural and remote areas. These post offices act as vital hubs that connect communities, facilitating communication, trade, and providing essential services for small and medium enterprises.

However, the postal industry is facing significant challenges amidst the ongoing digital transformation. The rise of digital communication and commerce necessitates the adaptation and integration of digital services in the postal industry. Collaboration between different networks and sectors becomes essential to advance the digital economy, fostering mutual benefits and comprehensive development.

Postal services hold a long-standing historical importance in facilitating communication and trade. Paul Donahore, an influential advocate, recognizes the immense potential of the postal network in bridging the digital divide. He emphasizes the importance of connectivity and relevant services for post offices, reinforcing their role in delivering sustainable and inclusive digital services.

Leveraging the existing infrastructure of post offices can lead to the deployment of digital services that address the needs of underserved communities. Furthermore, the future success of organizations relies heavily on connectivity and digital technology. Incorporating digital access, including live streaming and digital accessibility, into business strategies can greatly enhance operations and tap into new opportunities for growth and success.

In conclusion, the postal network plays a vital role in social and digital inclusion. However, the industry faces challenges in adapting to digital transformation. Collaboration between networks and sectors is necessary to advance the digital economy. Postal services hold historical significance in facilitating communication and trade.

Advocates like Paul Donahore emphasize the potential of leveraging the postal network for sustainable and inclusive digital services. Connectivity and digital technology are crucial for the future success of organizations.

Arguments

The telecommunications sector is experiencing a major shift with more focus on digital and broadband services.

Supporting facts:

• Developments in the sectors include regulation implementation and overcoming challenges

• There is a significant amount of investment going into data centers, fiber, and broadband services

Topics: Digital technology, Broadband, Telecom sector

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The postal network could potentially support the physical aspects of the evolving digital ecosystem.

Supporting facts:

• All digital developments need some form of physical component like the transportation of products in e-commerce or the delivery of medical supplies in e-health services

Topics: Postal network, Digital services, E-commerce

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The coverage of 4G is significant but the remaining 6% unconnected portion is also substantial, highlighting the need for focussed strategic efforts

Supporting facts:

• 94% of 4G coverage has been achieved

Topics: 4G coverage, Digital infrastructure, Unconnected population, Government intervention

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The post work perspective reveals efforts are still needed in remote areas

Supporting facts:

• Out of 6000 post offices, 60 are not well

Topics: Remote societies, Digital divide, Post work perspective, Government intervention

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Report

The telecommunications sector is currently undergoing a major shift, with a strong emphasis on digital and broadband services. This shift is accompanied by significant investments being made in data centres, fibre optics, and the expansion of broadband services. These developments reflect the growing importance of digital technology and the increasing demand for high-speed internet connectivity.

In parallel, there is a recognition of the potential role that the postal network can play in supporting the physical aspects of the evolving digital ecosystem. The postal network is seen as a crucial component in facilitating the transportation of products in e-commerce and the delivery of medical supplies in e-health services.

This recognition highlights the need for a comprehensive understanding of how the postal network can effectively support these new digital services. Given the evolving landscape, it is imperative for governments and policymakers to have a deeper understanding of the ways in which the postal network can contribute to the digital transformation.

Policymakers must also plan for the necessary infrastructure and regulations to enable a sustainable and long-term reform and transformation of the postal sector. Ideally, this would involve a well-defined policy planning objective, spanning five to ten years. While there has been significant progress in achieving 4G coverage, with 94% of the population now covered, the remaining 6% who are still unconnected represent a substantial portion.

This underscores the need for focused strategic efforts to bridge the connectivity gap and ensure that all individuals have access to digital services. Governments should particularly prioritize the last unconnected percentages of the population, as this represents a significant number of people who are still excluded from the benefits of digital technology.

Moreover, efforts still need to be made to address the challenges faced by remote areas. For instance, out of the 6,000 post offices, 60 are not well-equipped to adequately serve these remote societies. This highlights the importance of targeted interventions and government support to ensure that even the most isolated regions are not left behind in the digital revolution.

In conclusion, the telecommunications sector is experiencing a shift towards digital and broadband services, backed by significant investments. The postal network has the potential to support the physical aspects of the evolving digital ecosystem, and it is crucial for governments and policymakers to understand and plan for this role.

While progress has been made in achieving 4G coverage, efforts are still required to bridge the connectivity gap and address the challenges faced by remote areas. Governments must prioritize the last unconnected percentages of the population to ensure that the benefits of digital technology are accessible to all.

Arguments

It is challenging to connect the 2.4 billion people who are currently offline and not benefiting from the digital economy, which requires collaboration among various actors

Supporting facts:

• 2.4 billion people are unconnected to the internet

• ITU works across three sectors i.e. radio sector, standardization sector, and development sector to enhance connectivity

Topics: Digital Connectivity, Digital Divide, Digital Economy

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Infrastructure build out that proved to be sustainable are driven by private sector with a clear business case

Supporting facts:

• Successful infrastructure projects are being led by the private sector

Topics: infrastructure, private sector, sustainability

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Public-private partnerships are necessary for sustainability

Supporting facts:

• Only through partnerships with the private sector, can the infrastructure gap be tackled in a sustainable way

Topics: public-private partnerships, sustainability

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Report

The analysis explores various topics including digital connectivity, digital inclusion, capacity building, infrastructure, public-private partnerships, and the government’s role. One of the main concerns highlighted is that around 2.4 billion people worldwide lack internet access, hindering their ability to benefit from the digital economy.

Collaboration among different stakeholders is identified as crucial to tackle this challenge. The analysis suggests that postal networks, such as the Universal Postal Union (UPU), could collaborate with the International Telecommunication Union (ITU) to enhance digital connectivity and inclusion. Postal networks have a significant global reach and can be leveraged to create an infrastructure backbone through fiberization.

This collaboration has the potential to bring digital services to remote areas and reduce inequalities, contributing to the SDGs related to industry, innovation, infrastructure, and reduced inequalities. Capacity building is emphasized as essential for enhancing digital inclusion. The lack of skills and knowledge about digital services is identified as a major barrier, which can be overcome through training and education initiatives.

Digital services also have economic value, enabling remote farmers, for example, to sell their produce online and increase their income opportunities. The role of the private sector in driving successful and sustainable infrastructure projects is highlighted. The private sector’s leading role in such projects and its clear business case are seen as significant factors contributing to their sustainability.

Public-private partnerships are also deemed necessary for addressing the infrastructure gap sustainably and achieving SDG objectives. The analysis suggests less government intervention and more collaborative play. Companies like Meta, Google, and TikTok are interested in forming partnerships, and regulatory regimes can be adjusted to attract more partners.

Encouraging collaboration between the private sector and the government through supportive regulatory frameworks can foster innovation and facilitate progress towards universal digital connectivity and inclusive development. In conclusion, the analysis emphasizes the importance of collaboration among different stakeholders to address the challenges of digital connectivity and inclusion.

It underscores the potential of collaborations involving postal networks, capacity building initiatives, private sector-driven infrastructure projects, public-private partnerships, and a collaborative approach between the government and the private sector. By leveraging resources, expertise, and fostering innovation, it is possible to enhance digital inclusion, create economic value, and promote sustainable development for all.

Arguments

Leveraging digital trade and cross-border paperless trade creates a more agile and responsive trading environment

Supporting facts:

• New technology contributes to the overall resilience of economies

• Enables countries to navigate global trade challenges and capitalise on new opportunities

Topics: Digital trade, Cross-border paperless trade

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Successful implementation of paperless trade requires careful planning, infrastructure development and capacity building

Topics: Paperless trade, Capacity building, Infrastructure development

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Issues like digital literacy, cyber security and legal frameworks need to be addressed for successful implementation

Topics: Digital literacy, Cyber security, Legal frameworks

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Technical assistance and support for adopting digital technologies can be crucial in the transition to paperless trade

Supporting facts:

• Trade-related technical assistance can include capacity-building programs

Topics: Technical assistance, Digital technologies

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Report

Leveraging digital trade and cross-border paperless trade can significantly enhance the agility and responsiveness of trading environments, contributing to the overall resilience of economies. This approach empowers countries to navigate global trade challenges and capitalise on new opportunities. By embracing digital technologies and eliminating reliance on traditional paper-based processes, countries can streamline their trade processes, reduce costs, and enhance efficiency.

However, successful implementation of paperless trade requires careful planning, infrastructure development, and capacity building. Governments and stakeholders must collaborate to establish legal frameworks and develop robust infrastructure to support the digital trade ecosystem. Additionally, investments in digital literacy and cyber security are essential for secure and smooth transitions to paperless trade.

Addressing issues such as digital literacy, cyber security, and legal frameworks is crucial for effective implementation of digital and paperless trade. Governments and educational institutions should work together to enhance digital literacy skills and ensure full participation in the digital economy.

Strengthening cyber security measures is necessary to protect sensitive trade data. Clear legal frameworks should be established to address aspects like data protection and intellectual property rights. Trade-related technical assistance and support for adopting digital technologies are crucial in the transition to paperless trade.

Capacity-building programs can equip individuals and organizations with the necessary skills. Governments and international bodies should provide technical assistance to countries in need to bridge the digital divide and ensure a smooth transition. In conclusion, embracing and investing in digital trade and cross-border paperless trade have positive effects on industry, innovation, and infrastructure.

These advancements create a more agile and responsive trading environment, contributing to the overall resilience of economies. However, successful implementation requires careful planning, infrastructure development, capacity building, and addressing issues such as digital literacy, cyber security, and legal frameworks. Trade-related technical assistance and support for adopting digital technologies are crucial elements in facilitating the transition to paperless trade.

By committing to these efforts, countries can advance economic growth and contribute towards achieving global goals of sustainable development.

Arguments

Benefits of cross-border pay-per-lecture for the countries

Supporting facts:

• Countries are using automated cross-border clearance and blockchain technology to significantly reduce trade costs.

• Countries are becoming more involved in creating and adopting new regulations and standards to support this new technological trend.

Topics: Trade Costs, Emerging Technology, Cross-border Pay-per-lecture

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Emerging technology used for internet of things and automated cross-border clearance

Supporting facts:

• These technologies are being increasingly used to facilitate easier cross-border trades.

• The adoption of these technologies allows countries to reduce trade costs and streamline bureaucratic procedures.

Topics: Emerging Technology, Internet of Things, Automated Cross-border Clearance

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Technical assistance and capacity building as well as of course countries learning is crucial

Supporting facts:

• Support provided by institutions like EAF, UNESCO, BUSCAN and the Trade Facilitation Agreement facilities have been instrumental in offering technical assistance and capacity building.

• Leveraging this support can help in furthering cross-border paperless and digitalization efforts in countries.

Topics: Technical Assistance, Capacity Building, Cross-border Pay-per-lecture

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Report

Countries recognise the potential benefits of embracing emerging technologies, such as automated cross-border clearance and blockchain, in reducing trade costs and streamlining bureaucratic processes. To facilitate the smooth adoption and implementation of these technologies, countries actively create and adopt new regulations and standards.

This proactive approach ensures a level playing field for all parties involved in cross-border trade. Governmental interoperability is considered vital, as it brings all agencies together within a unified government system. This promotes coordination, cooperation, and efficiency, minimizing delays and complications in cross-border transactions.

Harmonising legislation and standards with global regulations further strengthens the effectiveness and impact of cross-border trade. Technical assistance and capacity building offered by institutions like EAF, UNESCO, BUSCAN, and the Trade Facilitation Agreement facilities are instrumental in advancing cross-border paperless and digitalisation efforts.

Leveraging this support, countries can optimise their digital transformation processes, leading to enhanced trade facilitation and economic growth. Overall, the adoption of emerging technologies, coupled with the creation of regulations and focus on governmental interoperability, has the potential to significantly reduce trade costs, improve efficiency, and promote sustainable economic growth.

The provision of technical assistance and capacity building further strengthens countries’ ability to embrace and harness the potential of these technologies. Countries are actively taking measures to position themselves to thrive in the digital and interconnected world of cross-border trade.

Arguments

Bhutan faces numerous challenges in promoting trade as a landlocked country

Supporting facts:

• Bhutan has limited access to ports resulting in longer transportation routes and increased transit times

• This leads to delays and higher transportation costs

• Bhutan is heavily reliant on India as their largest trading partner, making them vulnerable to external shocks and changes in the neighbouring country’s policies

Topics: landlocked country, trade

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However, there are challenges to digital trade

Supporting facts:

• Bhutan faces challenges in HR capability

• They have limited IT infrastructure and automation

• They lack adequate legal instruments to govern paperless trade

• Their existing systems are isolated and owned by different agencies, requiring a strong integration for effective digital trade

Topics: digital trade, HR capacity, IT infrastructure

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Report

Bhutan, as a landlocked country, faces numerous challenges in promoting trade. Limited access to ports results in longer transportation routes and increased transit times. This not only leads to delays but also causes higher transportation costs for goods. Furthermore, Bhutan heavily relies on India as its largest trading partner, which makes the country vulnerable to external shocks and changes in India’s policies.

These challenges create obstacles for Bhutan’s economic growth and development. However, digital trade presents a potential solution to some of these challenges. It has the ability to reduce transaction and transportation costs, offering a more cost-effective and efficient way of conducting trade.

Digital trade also enables faster clearance processes and reduced transit times, allowing for smoother and timely movement of goods. Additionally, it provides a gateway for connectivity with a broader range of international partners, allowing Bhutan to diversify its trade relationships and reduce dependence on a single partner.

Despite the potential benefits, there are still challenges that need to be addressed for effective digital trade in Bhutan. The country faces difficulties in terms of human resource capability, with limited expertise in digital trade and related areas. Additionally, Bhutan’s IT infrastructure and automation capabilities are limited, hindering the smooth implementation of digital trade practices.

There is also a lack of adequate legal instruments to govern paperless trade, which is crucial in facilitating cross-border digital transactions. Furthermore, existing systems in Bhutan are isolated and owned by different agencies, highlighting the need for strong integration of these systems to ensure effective digital trade operations.

However, by embracing digital trade and cross-border paperless trade, Bhutan has the opportunity to enhance its overall economy. Digital trade provides a platform that incorporates advanced security measures, ensuring the safety of online transactions. This facilitates e-commerce, enabling small and medium-sized enterprises (SMEs) in Bhutan to participate in global trade and reach a wider customer base.

Moreover, digital trade can improve trade finance by facilitating digital payments, making transactions more efficient and reducing reliance on traditional banking systems. In addition to these advantages, digital trade also fosters data-driven decision-making, enabling Bhutan to make informed choices for its trade policies and strategies.

In conclusion, Bhutan’s status as a landlocked country presents certain challenges to its trade promotion efforts. However, digital trade offers potential solutions to overcome these challenges by reducing costs, enabling faster clearance, and facilitating trade diversification. To fully tap into the benefits of digital trade, Bhutan needs to address obstacles related to HR capability, IT infrastructure, and legal instruments governing paperless trade.

By doing so, Bhutan can enhance its overall economy through improved connectivity, increased SME participation in trade, enhanced trade finance, and data-driven decision-making capabilities.

Arguments

The need to adopt legislation enabling electronic transactions and electronic signatures for effective trade facilitation

Supporting facts:

• All the countries they have today and the vast majority of the countries in Asia Pacific have legislation based on ancestral monologues and also treaties.

• Such legislation is proving to be future proof.

Topics: Electronic Transitions, Trade Facilitation, Electronic Signatures

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Implementation of new technologies such as automation and blockchain can be accommodated under existing laws

Supporting facts:

• Legislation is robust and future proof, accommodating the use of blockchain and information generated by Oracles.

• Automated B2B exchanges and B2G exchanges are operational.

Topics: New Technologies, Blockchain, Automation

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Report

During the discussion, the speakers emphasised the importance of adopting legislation that supports electronic transactions and signatures to facilitate trade effectively. They highlighted that many countries in the Asia Pacific region have already implemented legislation based on ancestral monologues and treaties, which has proven to be future-proof.

This legislation has provided a solid foundation for countries to engage in electronic trade and has enabled them to keep pace with advancements in technology. Furthermore, the speakers noted that existing laws can accommodate the use of new technologies such as automation and blockchain.

They explained that the legislation is robust and allows for the incorporation of these innovative tools. Specifically, the laws can accommodate the use of blockchain technology, which provides a secure and transparent platform for conducting transactions. Additionally, the legislation can also accommodate the use of automation, enabling efficient and streamlined business-to-business (B2B) exchanges and business-to-government (B2G) exchanges.

The speakers also encouraged countries to actively participate in United Nations Conference on Trade and Development (UNCTAD) meetings. They stressed that participating in these meetings allows countries to familiarise themselves with the process and the output of UNCTAD. It also provides an opportunity for countries to reflect their unique views and challenges.

By actively engaging in UNCTAD meetings, countries can contribute to shaping international policies and initiatives that align with their interests and priorities. In conclusion, the discussion highlighted the necessity for countries to adopt legislation supporting electronic transactions and signatures for effective trade facilitation.

The implementation of such legislation, which is based on ancestral monologues and treaties, has proven to be future-proof and widely implemented in many countries. Additionally, existing laws are adaptable and can accommodate the use of new technologies like automation and blockchain.

To stay informed and contribute to international trade discussions, it is recommended that countries actively participate in UNCTAD meetings. This will allow them to understand the process, reflect their unique views, and address their specific challenges in the global trade arena.

Arguments

Bangladesh has always been a promoter of using digital technology in every sector, including digital trade

Supporting facts:

• The election manifesto of the current government in 2009 election focused on creating a digital Bangladesh.

• Bangladesh GDP grew from $92 billion in 2008 to $460 billion in 2022.

Topics: Digital Technology, Digital Trade

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The framework agreement can assist Bangladesh to better prepare for graduation from LDC, compensating impact from losing preferential trade benefits.

Supporting facts:

• Bangladesh has already proved its success of economic achievement with sustainable digitalization.

• Bangladesh met all the criteria for graduation from the LDC category in two consecutive triennial reviews conducted by UNCDP held in 2018 and 2021.

Topics: Framework Agreement, LDC Graduation

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Cross-border paperless trade will facilitate cross-border trade which will contribute to economic development of Bangladesh.

Supporting facts:

• Currently, Bangladesh is assessing its position and preparing a roadmap for implementation of the agreement.

• It can help Bangladesh to streamline its trade procedures effectively and reduce trade transaction time and cost.

Topics: Cross-Border Trade, Economic Development

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Cross-border paperless trade faces several challenges including legal reform, infrastructure development and technical knowledge.

Supporting facts:

• Legal reform is needed to facilitate cross-border paperless trade.

• Infrastructure to support automation of border agencies is also necessary.

• Developing technology, technical knowledge and human resources is another challenge.

Topics: Cross-border Paperless Trade, Digital Technologies, Economic Development

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Report

Bangladesh has demonstrated a strong commitment to embracing digital technology and trade. This commitment is evident in the election manifesto, which prioritized the creation of a digital Bangladesh. The country’s GDP has experienced significant growth, from $92 billion in 2008 to $460 billion in 2022, attributed in part to the adoption of digital technology and its positive impact on various sectors, including digital trade.

In addition to its economic achievements, Bangladesh has successfully embraced sustainable digitalization. The country has met all the criteria for graduation from the Least Developed Country (LDC) category in two consecutive triennial reviews conducted by the United Nations Committee for Development Policy (UNCDP) in 2018 and 2021.

To support its preparation for graduation, Bangladesh has entered into a framework agreement. This agreement aims to compensate for any impact caused by the loss of preferential trade benefits and provide support during the transitional period. Bangladesh is also actively exploring the benefits of cross-border paperless trade.

The country is currently assessing its position and preparing a roadmap for the implementation of an agreement that aims to streamline trade procedures and reduce transaction time and costs. The implementation of cross-border paperless trade is seen as a catalyst for economic development, facilitating smoother and more efficient cross-border trade.

However, cross-border paperless trade does face challenges that need to be overcome. Legal reform is required to establish the necessary framework to support this form of trade. Additionally, infrastructure development is necessary to automate border agencies. Developing the required technology, technical knowledge, and human resources is also a challenge in implementing cross-border paperless trade.

Nevertheless, Bangladesh remains committed to overcoming these challenges and expediting the implementation of trade facilitation agreements. The country has taken various steps to support this goal, such as modifying the Customs Act to include a national single system for the establishment of the Bangladesh Single Window.

Furthermore, the enactment of the ICT Act, ICT policy, national digital commerce policy, government e-policy, and digital commerce guidelines demonstrates Bangladesh’s determination to support the implementation of cross-border paperless trade. The Ministry of Commerce has also initiated efforts to establish a Digital Trade Authority to coordinate and regulate digital trade.

In summary, Bangladesh’s commitment to digital technology and trade is evident through its election manifesto, GDP growth, and successful sustainable digitalization. The country is actively preparing for graduation from the LDC category with the support of a framework agreement. Bangladesh recognizes the potential of cross-border paperless trade to stimulate economic development, despite the challenges it faces.

The country is undertaking various initiatives and reforms to overcome these challenges and expedite the implementation of trade facilitation agreements.

Arguments

Digital trade holds immense significance for Tuvalu, a small island nation heavily reliant on imports

Supporting facts:

• Tuvalu faces several challenges in its journey towards digitalisation, including slow legal development, limited ICT infrastructure, and the need for capacity building,

Topics: Digital Trade, Tuvalu, Imports

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ICT and Legal policy strategies are in development

Supporting facts:

• Tuvalu’s ICT department is developing a digital platform

• A legal policy for ICT is currently under review and pending cabinet approval

Topics: ICT, Legal Policy

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E-commerce and trade strategy implemented to reduce cost

Supporting facts:

• E-commerce and trade strategy, based on Biantet’s rapid e-trade readiness assessment, is developed and waiting for cabinet endorsement

• The WTO Trade Facilitation Agreement and UNESCAP paperless trade agreements are integral to this strategy

• The new trade development strategy prioritises developing e-commerce over the next five years

Topics: E-commerce, Trade Strategy

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Report

Tuvalu, a small island nation heavily reliant on imports, recognizes the significance of digital trade in shaping its future. However, it faces several challenges in its journey towards digitisation. These challenges include slow legal development, limited ICT infrastructure, and the need for capacity building.

Despite these obstacles, Tuvalu is making efforts to overcome them. One key strategy being pursued by Tuvalu is the development of a digital platform. Tuvalu’s ICT department is currently involved in this endeavour, aiming to provide a foundation for digital trade and related activities.

Additionally, a legal policy for ICT is under review and awaiting cabinet approval. This indicates the government’s commitment to creating a legal framework that supports and regulates digital trade. Furthermore, Tuvalu has formulated a trade strategy that places strong emphasis on e-commerce.

This strategy has been developed based on Biantet’s rapid e-trade readiness assessment and is awaiting cabinet endorsement. Integral to this strategy is the implementation of the WTO Trade Facilitation Agreement and the UNESCAP paperless trade agreements. Over the next five years, Tuvalu aims to prioritise the development of e-commerce, with the goal of reducing costs and enhancing trade efficiency.

To facilitate ongoing e-commerce development, Tuvalu requires continued support from organisations such as UNESCAP. UNESCAP has already been assisting Tuvalu with its e-commerce trade development, demonstrating the importance of partnerships and collaboration in driving progress. The support of international organisations like UNESCAP is crucial for the sustainable growth of e-commerce in Tuvalu.

In conclusion, Tuvalu recognises the immense significance of digital trade in its economic development. Despite the challenges it faces, the nation is actively working on different fronts to overcome them. Efforts include developing a digital platform, reviewing legal policy for ICT, and implementing a trade strategy that prioritises e-commerce.

Ongoing support from organisations like UNESCAP is essential to ensure the continued growth and success of e-commerce in Tuvalu.

Arguments

Developing countries in Asia and Pacific struggle with incorporating paperless systems

Supporting facts:

• Paper documents are still used in customs operations

• There’s a lack of legal ground for conducting cross-border electronic exchange of trade data

Topics: Technology, Cross-border trade, Paperless systems

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Feasibility studies propose steps towards e-trade in Asia and Pacific regions

Supporting facts:

• Countries should establish and enhance national single windows

• Utilizing pilot projects as testing ground

• Utilization of emerging technologies after completion of automation process

Topics: Cross-border trade, Feasibility studies, Emerging technologies

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Significant gaps exist between the willingness of countries to adopt e-trade and their capacity to do so

Supporting facts:

• There are strong willingness for electronic trade data exchange but capacity and infrastructure are lacking

Topics: Capacity building, Technology adoption

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Asia and Pacific countries are working towards facilitation of cross-border paperless trade

Supporting facts:

• The Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific has been established

• Currently 12 parties from Asia-Pacific have joined the framework agreement

Topics: Cross-border trade, Paperless systems

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Report

Developing countries in Asia and the Pacific are facing significant challenges when it comes to incorporating paperless systems in their customs operations. This is primarily due to the use of traditional paper documents and the absence of legal infrastructure for cross-border electronic exchange of trade data.

The reliance on paper documents hinders the efficiency and effectiveness of customs operations in these countries, leading to delays, errors, and increased costs. Feasibility studies have highlighted several proposed steps towards embracing e-trade in the Asia-Pacific region. One key recommendation is the establishment and enhancement of national single windows, which serve as a digital platform for the exchange of trade-related information between government agencies and stakeholders.

Through the implementation of national single windows, countries can streamline and automate trade processes, reducing the need for paper-based documentation and facilitating faster and more secure cross-border trade. Another important aspect mentioned in the feasibility studies is the utilization of emerging technologies.

Pilot projects can be initiated as a testing ground to assess the effectiveness of these technologies in simplifying trade procedures and eliminating the reliance on paper documents. Once successful automation processes are completed, the integration of advanced technologies such as blockchain, artificial intelligence, and machine learning can further enhance the efficiency and transparency of e-trade in Asia and the Pacific.

While there is a strong willingness among these countries to adopt e-trade, significant gaps exist in terms of capacity and infrastructure. Although they have the desire to embrace digital solutions for trade facilitation, limitations in technology infrastructure, digital literacy, and human resources hinder their progress.

Capacity-building efforts are necessary to bridge these gaps and provide the necessary support to ensure the successful implementation and adoption of paperless trade systems. In a positive development, the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific has been established.

This agreement signifies the collective efforts of countries in the region to work towards the facilitation of cross-border paperless trade. Currently, 12 parties from Asia-Pacific have joined this framework agreement, indicating a commitment to addressing the challenges and promoting the adoption of digital solutions in trade operations.

In conclusion, developing countries in Asia and the Pacific are encountering obstacles in transitioning to paperless systems in their customs operations, primarily due to the continued use of paper documents and a lack of legal infrastructure. Feasibility studies propose various steps, such as the establishment of national single windows and the utilization of emerging technologies, to promote e-trade in the region.

However, significant gaps in capacity and infrastructure must be addressed to effectively implement and adopt paperless trade systems. The establishment of the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific demonstrates progress and collaboration among countries in the region, fostering the facilitation of cross-border paperless trade.