Measuring the digital economy in Latin America (NIC Brazil)

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.