Donor roundtable: Enabling impact at scale in supporting inclusive and sustainable digital economies

Arguments

The bank is focusing on interventions to boost African trade

Supporting facts:

• The bank is a multilateral bank whose shareholders are African countries, financial institutions, and corporates

• Its interest extends to trade facilitation, infrastructure development, health and pharmaceutical, automotive industry, and creative industry

Digital transformation and technological advancement are opportunities for economic development

Supporting facts:

• The African Export-Import Bank created a digital ecosystem to facilitate this digital transformation

• This ecosystem consists of five different platforms, collectively known as the African Trade Gateway

The MANSA platform was created to foster good governance, transparency, and accountability

Supporting facts:

• MANSA is dedicated to providing primary data necessary for conducting due diligence for African entities, financial institutions, corporates, and SMEs

• The platform has on-boarded 20,000 entities engaged in KYC procedures

The Pan-African Payment and Settlement System (PAPS) system was established to address cross-border trade challenges

Supporting facts:

• PAPS was adopted by the African Union Heads of States and Government in 2019

• The system allows payments in local currencies, reducing the need for hard currency

The African Trade Gateway Connect provides logistical solutions to businesses

Supporting facts:

• The platform connects businesses and service providers across Africa

• It assists in pickup And delivery of goods to and from any location in Africa

Report

The African Export-Import Bank (Afreximbank) has been actively focusing on interventions to boost intra-African trade. As a multilateral bank, its shareholders include African countries, financial institutions, and corporates. Afreximbank’s interests extend to various sectors such as trade facilitation, infrastructure development, health, the automotive industry, and the creative industry.

These initiatives aim to stimulate economic growth and promote sustainable development across the continent. To support digital transformation and technological advancement, Afreximbank has created a digital ecosystem known as the African Trade Gateway. This ecosystem comprises five different platforms collectively designed to facilitate digital transformation.

The African Trade Gateway aims to enhance efficiency, accessibility, and connectivity for businesses in Africa. This digital platform presents promising opportunities for economic development and innovation. Another notable platform established by Afreximbank is MANSA, which is dedicated to promoting good governance, transparency, and accountability.

MANSA offers primary data required for conducting due diligence for African entities, financial institutions, corporates, and SMEs. With over 20,000 entities already onboarded onto the platform engaged in know-your-customer (KYC) procedures, MANSA enhances the integrity and credibility of business transactions in Africa.

Addressing cross-border trade challenges is the Pan-African Payment and Settlement System (PAPS). This system, adopted by the African Union Heads of States and Government in 2019, facilitates cross-border payments by allowing transactions in local currencies. This reduces the dependency on hard currencies and mitigates the risks associated with fluctuating exchange rates.

PAPS contributes to reducing inequalities in trade and promoting financial inclusion across the continent. Finally, the African Trade Gateway Connect platform serves as a valuable logistical solution for businesses. It connects businesses and service providers throughout Africa, enabling smooth and efficient pickup and delivery of goods.

This platform facilitates trade and fosters collaboration among businesses across the continent. In conclusion, Afreximbank’s initiatives and platforms demonstrate a strong commitment to boosting African trade, promoting economic development, and driving sustainable growth. Through the African Trade Gateway, MANSA, PAPS, and African Trade Gateway Connect platforms, Afreximbank provides the necessary infrastructure, data, and services to address key challenges and facilitate trade in Africa.

These initiatives contribute to the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 10 (Reduced Inequalities), and SDG 16 (Peace, Justice, and Strong Institutions).

Arguments

Alessandra Lustrati emphasizes the importance of digital transformation to achieve the SDGs

Supporting facts:

• Digitalization directly supports at least 70% of the SDG targets

• Digital transformation is an enabler and accelerator of the SDGs

Alessandra Lustrati stressed the need for an integrated approach towards digital development

Supporting facts:

• FCDO is currently writing a new digital development strategy

• Their approach involves both programming and policy work in partner countries

Alessandra Lustrati highlights the importance of horizon scanning and risk management strategies in relation to labor market digital transition

Supporting facts:

• FCDO works with partner countries to design risk management strategies regarding job displacement due to digitalization

• They aim to improve regulations and industry standards for the gig economy

Lustrati says FCDO is eyeing AI as a needful capacity building area for partner countries.

Supporting facts:

• AI is seen as an important tool for digitalization efforts.

• Controlling benefits and managing AI’s risks is essential.

Report

Alessandra Lustrati is a strong advocate for digital transformation, emphasizing its crucial role in achieving the Sustainable Development Goals (SDGs). She highlights that digitalization directly supports at least 70% of the targets set by the SDGs, making it a powerful enabler and accelerator of progress towards these goals.

Lustrati believes that a holistic and comprehensive approach towards digital development is necessary, combining both programming and policy work in partner countries. The Foreign, Commonwealth & Development Office (FCDO) is currently drafting a comprehensive digital development strategy, reflecting their commitment to an integrated approach.

Lustrati also promotes digital financial inclusion, working with partners to demonstrate the viability of digital financial solutions and encouraging regulatory and policy change to foster innovation. In addition, she supports initiatives aimed at capacity building in digital trade and e-commerce, partnering with organizations like the United Nations Conference on Trade and Development (UNCTAD) and the British Standards Institution to support national e-commerce strategies and establish digital trade standards.

Lustrati recognizes the importance of horizon scanning and risk management strategies in relation to labor market digital transition. The FCDO collaborates with partner countries to design risk management strategies, focusing on job displacement caused by digitalization and improving regulations and industry standards in the gig economy.

Furthermore, Lustrati acknowledges the significance of Artificial Intelligence (AI) as a tool for digitalization efforts and highlights the need for capacity building in this area. The FCDO aims to control the benefits and manage the risks associated with AI, prioritizing it as a key focus for capacity building in partner countries.

Overall, Lustrati’s advocacy for digital transformation, combined with an integrated approach, digital financial inclusion, capacity building in digital trade and e-commerce, addressing labor market challenges, and prioritizing AI, demonstrates a commitment to leveraging digitalization for inclusive and sustainable development.

Arguments

The importance of open trade and participation of all countries, including LDCs, to foster growth and sustainable development

Supporting facts:

• Experience of Sweden transitioning from a poor European country to a developed one through embracing global trade and investments

The role of development cooperation in shaping frameworks for trade, building capacity, and strengthening institutions

Supporting facts:

• The launch of a new strategy for foreign trade investment and global competitiveness in Sweden

The importance of private sector involvement in achieving sustainable development

Supporting facts:

• The fact that a prosperous country cannot be built on development aid alone, but also requires trade, economic development, and investments

Need for enhanced public-private partnership between donors and the private sector

Importance of complementing aid for trade support to improve hard aspects, such as digital connectivity and digital technologies

Report

The analysis highlights several significant points from the speakers. It emphasizes the experience of Sweden, which demonstrates that embracing global trade and foreign investments can lead to the transition from being a poor European country to becoming a developed nation.

This experience serves as evidence of the positive impact of open trade and the participation of all countries, including the Least Developed Countries (LDCs), in fostering economic growth and sustainable development. In addition, the analysis underscores the crucial role of development cooperation in shaping trade frameworks, building capacity, and strengthening institutions.

It highlights the launch of a new strategy for foreign trade investment and global competitiveness in Sweden as an example of the importance of development cooperation in driving economic growth and innovation. This strategy serves as supporting evidence for the argument that development cooperation is essential for creating a conducive environment for trade and achieving sustainable development.

The analysis also emphasizes the importance of private sector involvement in achieving sustainable development. It highlights the fact that a prosperous country cannot solely rely on development aid but also requires trade, economic development, and investments. This argument is supported by the understanding that private sector engagement brings innovation, creates jobs, and stimulates economic growth, contributing significantly to the attainment of the Sustainable Development Goals (SDGs).

Furthermore, the speakers recognize digitalization and development as important priorities. They stress the need for policies and actions to bridge the digital divide, as evidenced by the UNCTAD e-trade readiness assessments. The analysis also acknowledges the gender-digital divide, emphasizing the need to address this issue to ensure equal opportunities and representation for women-led companies in developing countries.

The analysis points out the challenges in measuring aid for digitalization and digital trade. It notes that there are aspects of digital aid activities, specifically soft aspects, that are not adequately covered in ICT-related aid. This observation highlights the need for improved measurement methods to effectively evaluate and monitor the impact of aid in these areas.

Additionally, the analysis emphasizes the importance of public-private partnerships between donors and the private sector. It argues that enhanced collaboration between these stakeholders would foster sustainable development by leveraging resources, expertise, and innovation from both sectors. Finally, the analysis emphasizes the importance of complementing aid for trade support with efforts to improve hard aspects such as digital connectivity and technologies.

It underscores the need to enhance the effective use of digital technologies by developing countries and their populations, as this contributes to both SDG 9: Industry, Innovation, and Infrastructure and SDG 10: Reduced Inequalities. It suggests that promoting trade alongside the adoption of digital technologies can positively impact overall development outcomes.

Overall, the analysis brings to light several important insights. It underlines the transformative power of global trade and investments, the critical role of development cooperation, and the need for private sector involvement in achieving sustainable development. It highlights the importance of digitalization and addressing the gender-digital divide while recognizing the challenges in measuring aid for digitalization.

The analysis also stresses the significance of public-private partnerships and the need to complement aid for trade support with improved digital connectivity and technologies. These findings provide valuable guidance for policymakers and stakeholders in fostering inclusive and sustainable development.

Arguments

Digital Impact Alliance focuses on digital public infrastructure, an integrated approach to countries’ digitization

Supporting facts:

• Estonia and India are examples of countries that have effectively implemented an integrated approach saving 2% of their GDP per year and increasing female financial inclusion from 28% to 76% respectively

Importance of cross-border data sharing in decision making

Supporting facts:

• Data sharing across borders is challenging, but necessary for effective global decision-making

Need to measure not only access and usage, but the actual empowerment of individuals through digital tools

Supporting facts:

• Ineffectiveness and cost are hurdles that prevent the productive usage of digital tools

Chrissy Martin Meier is committed to creating a positive digital future

Supporting facts:

• Chrissy Martin Meier emphasized on maximizing participation, agency, choice, and trust for people and communities

Report

The Digital Impact Alliance (DIAL) is dedicated to promoting digital public infrastructure as a means of advancing countries’ digitization efforts. This integrated approach has been successful in countries like Estonia and India. Estonia, for instance, has saved 2% of its GDP per year through effective implementation of digital public infrastructure, while India has witnessed a significant increase in female financial inclusion, with rates rising from 28% to 76%.

These successes demonstrate the transformative potential of adopting a comprehensive approach to digitization. Cross-border data sharing plays a crucial role in global decision-making. Although it presents challenges, it is essential for enabling countries to make informed decisions on issues of global significance.

Collaboration and partnerships are necessary to overcome the obstacles associated with such initiatives. There is an argument for allocating funding to non-technology aspects, such as data protection agencies and regulatory mechanisms. Recognising the importance of safeguarding data and ensuring ethical practices, proponents suggest that investing in these areas is necessary to establish robust digital frameworks.

The need for measurement is highlighted, not only in terms of access and usage, but also in terms of the actual empowerment of individuals through digital tools. While access to digital resources is widespread, the effectiveness and cost of using these tools often pose barriers to full empowerment.

Therefore, it is vital to develop metrics and evaluation frameworks that accurately capture the impact and potential of digital tools in enabling individuals and communities to thrive. There is also a call to refresh the digital principles for development, drawing on lessons learned over the past decade.

This shows a commitment to adapting and evolving in line with changing technological advancements and emerging challenges. A digital principles refresh is set to be launched in the first quarter of the following year, indicating a dedication to continuous improvement in this area.

Chrissy Martin Meier, as an advocate for a positive digital future, emphasises the importance of maximising participation, agency, choice, and trust for individuals and communities. This approach aligns with the objectives of sustainable development and contributes to the achievement of SDG 9: Industry, Innovation, and Infrastructure.

Furthermore, Meier expresses enthusiasm for collaborating with all countries, underscoring the significance of multilateral partnerships in addressing global challenges and advancing progress towards SDG 17: Partnerships for the Goals. In summary, the Digital Impact Alliance’s focus on digital public infrastructure, the significance of cross-border data sharing, the allocation of funding to non-technology aspects, the measurement of digital empowerment, the need to refresh digital principles for development, and the commitment to multilateral collaborations all contribute to sustainable development and the achievement of the United Nations’ Sustainable Development Goals.

Arguments

The Netherlands recognizes the transformative power of the digital economy in fostering inclusive and sustainable private sector development, trade, and investments.

Supporting facts:

• Netherlands is a strategic partner of UNCTAD in their support to partner countries in their digital transformation.

• Netherlands combines aid, foreign trade and investment.

The Netherlands is committed to ensuring the emerging digital economy contributes to environmental sustainability, aligning with the broader framework of the SDGs.

Supporting facts:

• A growing digital economy has a significant impact on our climate if sustainability is not taken into account.

• Digitalization can support climate action and ensure sustainable practices in the digital economy.

Promoting digital inclusion and collaboration is crucial for bridging the digital divide.

Report

The Netherlands recognizes the significant impact of the digital economy in driving inclusive and sustainable private sector development, trade, and investments. They combine aid, foreign trade, and investment to support partner countries in their digital transformation. This strategic partnership between the Netherlands and the United Nations Conference on Trade and Development (UNCTAD) aims to leverage the transformative power of the digital economy.

To accelerate impact in key sectors such as agriculture, manufacturing, and services, a systems approach to digitalization for development is deemed essential. Young people and women in partner countries often face barriers such as limited connectivity, lack of access to digital services, and insufficient digital literacy and skills.

Donor organizations understand the importance of digital inclusion in overcoming these barriers and align their efforts with the unique needs and challenges of each partner country. The Netherlands also recognizes the potential environmental impact of the growing digital economy. Without proper consideration of sustainability measures, the digitalization process can significantly affect climate change.

However, the Netherlands is committed to ensuring that the emerging digital economy contributes to environmental sustainability and aligns with the broader framework of the Sustainable Development Goals (SDGs). Addressing the digital divide is another crucial aspect of the Netherlands’ approach.

Promoting digital inclusion and collaboration is viewed as instrumental in bridging the gap between those who have access to digital technologies and those who do not. This inclusivity is essential in reducing inequalities and promoting economic growth. The Netherlands implements tailored approaches to meet the specific needs and challenges of partner countries.

They actively support initiatives such as UNCTAD e-trade for all and e-trade for women, which aim to enhance digital trade opportunities for all and specifically empower women in the digital economy. Furthermore, the Netherlands advocates for multilateralism to advance the global digital economy, recognizing the importance of international cooperation in achieving the full potential of digitalization.

In conclusion, the Netherlands acknowledges the transformative power of the digital economy and actively works towards fostering inclusive and sustainable private sector development, trade, and investments. Their strategies encompass a systems approach to digitalization, addressing the barriers faced by young people and women, promoting environmental sustainability, bridging the digital divide, and advocating for multilateralism.

By combining aid, foreign trade, and investment, the Netherlands aims to support partner countries in their digital transformation journey, contributing to the achievement of the SDGs.

Arguments

The Pacific e-commerce initiative has been an essential strategy for promoting regional actions to boost e-commerce readiness.

Supporting facts:

• The Pacific Regional e-commerce strategy got ministerial approval in 2021.

• Six out of 16 members have finalized their national e-commerce strategies.

The Pacific region lags behind in several developmental indicators including internet speed, cost, coverage, and subscriptions.

Supporting facts:

• It takes a Pacific person to spend 6% of his monthly income on a 2GB data package.

• Only 44% of the Pacific population are connected online.

Significant assistance is needed to improve last-mile connectivity.

Supporting facts:

• The recent announcement of extra support from Australia and the United States to lay extra cables connecting eight of the members is welcome.

There are considerable challenges in trade logistics and trade facilitation within the Pacific.

Supporting facts:

• Low connectivity, expensive shipping, and underdeveloped last mile logistics impede e-commerce.

• The recent rollout of the UNCTAD automated customs clearance system to all members is a positive step.

Access to finance remains a key challenge, particularly for innovative ventures leveraging e-commerce.

Supporting facts:

• The availability of grant and loan schemes, credit guarantees, and blended financing are needed to help access to finance.

Donors and recipients need to discuss and be aware of the gaps that need to be addressed

Supporting facts:

• Donors and recipients are sitting together discussing gaps and where to address them

Developing countries need more technological support for creating digital public infrastructure

Supporting facts:

• Developing countries might need digital infrastructure and capacity everywhere they reach

Need for inclusive and sustainable digital economy skills

Supporting facts:

• Shift towards sustainable digital economy skills were highlighted as an important focus

• They align with this particular focus as stated by donors

Importance of an integrated approach

Supporting facts:

• Identifies with the importance of an integrated approach highlighted by donors

• Proposes an additional window through regional platforms

Report

The Pacific region faces several challenges in terms of e-commerce readiness, internet connectivity, trade logistics, and access to finance. However, there are positive initiatives and support from donors to address these issues. One important strategy is the Pacific Regional e-commerce strategy, which received ministerial approval in 2021.

This strategy aims to promote regional actions to boost e-commerce readiness. Additionally, six out of 16 members have already finalised their national e-commerce strategies, showing a positive commitment towards this goal. In terms of internet connectivity, the Pacific region lags behind in several developmental indicators, including internet speed, cost, coverage, and subscriptions.

For example, it takes a significant portion of a Pacific person’s monthly income to afford a 2GB data package. Furthermore, only 44% of the Pacific population is connected online. This points to the urgent need for improving internet infrastructure and accessibility in the region.

However, there is some progress in addressing this issue. Australia and the United States have announced additional support to lay extra cables connecting eight Pacific member countries, which will help improve last-mile connectivity. This is a positive development, as significant assistance is needed to bridge the connectivity gap in the Pacific.

Trade logistics and facilitation also pose challenges for e-commerce in the Pacific. The region faces issues such as low connectivity, expensive shipping, and underdeveloped last-mile logistics. To address these challenges, the United Nations Conference on Trade and Development (UNCTAD) has rolled out an automated customs clearance system to all members.

This is seen as a positive step towards improving trade facilitation and reducing barriers to e-commerce. Access to finance remains a key challenge, particularly for innovative ventures leveraging e-commerce. The availability of grant and loan schemes, credit guarantees, and blended financing are crucial to help businesses in the Pacific access the necessary funding.

In terms of digital infrastructure development, it is important for donors and recipients to collaborate and discuss gaps that need to be addressed. This ensures that resources and efforts are directed towards the most critical areas. The COVID-19 pandemic has highlighted the importance of digital tools in various sectors, including education and healthcare.

People have increasingly relied on technology for education and health instructions. This emphasises the need for ongoing investment and development in digital infrastructure and tools. Developing countries, including those in the Pacific, require more technological support to create robust digital public infrastructure.

Currently, there is a divide in terms of the cost of the internet, especially for Least Developed Countries (LDCs). Around 46 LDCs, with 33 in Africa and others in Asia, face challenges in accessing affordable internet services. Addressing this divide is crucial for reducing inequalities and promoting inclusive development.

The importance of sustainable digital economy skills and an integrated approach to development is also highlighted. Donors have recognised the need for sustainable digital skills that align with the focus on inclusive and sustainable economic growth. Moreover, an integrated approach, as highlighted by donors, can help ensure coordinated efforts and maximise the impact of development initiatives.

Lastly, for small countries in the Pacific, a regional approach is considered logical. This is because handling numerous small countries individually can be challenging for donors. By adopting a regional approach, resources can be pooled, and efforts can be coordinated more efficiently, thereby reducing inequalities and promoting peace, justice, and strong institutions.

In conclusion, while the Pacific region faces challenges in e-commerce readiness, internet connectivity, trade logistics, and access to finance, there are positive initiatives and support from donors to address these issues. The approval of the Pacific Regional e-commerce strategy and the progress made in finalising national e-commerce strategies demonstrate commitment towards promoting e-commerce readiness.

Additional support from Australia and the United States, as well as the rollout of the automated customs clearance system, is expected to improve last-mile connectivity and trade facilitation. However, further efforts are needed to bridge the digital divide, ensure access to finance, and develop sustainable digital economy skills.

Taking an integrated and regional approach can help overcome these challenges and foster inclusive and sustainable development in the Pacific.

Arguments

We are in the midst of a digital technological revolution, the technology revolution of our times

If we get digital technologies right, they can work for the people and the planet

Supporting facts:

• The same message is being repeated at COP28

If not done right, this technological revolution could bypass peoples and continents

Supporting facts:

• The 1960s Green Revolution bypassed continents

One-third of the world’s population is not online

Simply having connectivity is not sufficient to be engaged in the digital economy

Highlighting the Pacific regional e-commerce strategy

Supporting facts:

• A template to inform the formalization of national e-commerce strategies

• An essential package of actions to boost e-commerce readiness in the Pacific region

Identification of priority areas for the Pacific region

Supporting facts:

• Discussion of challenges and solutions in relation to each area

• Specific examples of disparities and progress in digital access across the Pacific region

Emphasis on soft aspects such as legislation and logistics is essential for promoting cross-border e-commerce in developing countries

Supporting facts:

• Without the soft aspects, success in the digital world is limited

• E-commerce in developing countries is mostly limited to cities and towns and hasn’t fully expanded to the cross-border level

• Cross-border e-commerce is more lucrative

The next digital economy report will focus on environmental sustainability issues

The convergence of thoughts over the utilization of digital technologies for global benefit

Supporting facts:

• Chrissy Martin Meier emphasized on collaborative work with different nations for a positive digital future

• There’s a common belief that digital technologies should be sustainable and inclusive

The need for an integrated approach in digital technology application involving the entire government and private sector

Report

The discussion revolves around the ongoing digital technological revolution, which is considered the technology revolution of our times. The speakers emphasise that we are currently in the midst of this revolution and it has the potential to bring significant changes to society, the economy, and the environment.

The first main point highlighted is the importance of getting digital technologies right in order for them to work for the people and the planet. The speakers are optimistic about the positive impact digital technologies can have if they are properly implemented and utilized.

They mention that this message is being reiterated at COP28, indicating that it is a topic of global concern and focus. However, it is also acknowledged that if this technological revolution is not handled correctly, it could result in bypassing certain populations and regions.

The notion of the digital divide is brought up, indicating that one-third of the world’s population is still not connected to the internet. This serves as evidence that despite the progress made, there are still significant barriers preventing equal access to digital technologies.

Consequently, the speakers argue that addressing the digital divide and ensuring that the digital technological revolution is inclusive is essential. They mention that the 1960s Green Revolution, an example from the past, bypassed entire continents, indicating the consequences of excluding certain regions from technological advancements.

The discussion then shifts to regional approaches and cooperation for e-commerce development. The speakers express their support for such approaches and highlight the importance of prioritizing e-commerce development in the Pacific region. They mention the existence of a Pacific regional e-commerce strategy, along with an essential package of actions to boost e-commerce readiness in the region.

The emphasis here is on the collaborative efforts of multiple countries to facilitate e-commerce development and promote economic growth. Additionally, the speakers touch on the significance of soft aspects, such as legislation and logistics, for promoting cross-border e-commerce in developing countries.

They point out that without proper attention to these aspects, success in the digital world is limited. They mention that while e-commerce in developing countries mostly occurs at the city and town level, it has not yet fully expanded to the cross-border level, where it could potentially be more lucrative.

Another crucial point of agreement among the speakers is the need to bridge the digital divide and create an enabling regulatory environment. They advocate for increased efforts to provide improved connectivity, digital skills, and financing for commerce. Additionally, they highlight the importance of including more women-led companies in developing countries to address the gender-digital divide.

The discussion concludes by emphasizing the need for a sustainable and inclusive digital future. The speakers mention that the next digital economy report will focus on environmental sustainability issues. Furthermore, they highlight the common belief that digital technologies should be sustainable and inclusive, and that collaboration with different nations is crucial to achieving this goal.

In summary, the speakers highlight the ongoing digital technological revolution and its potential impact on people and the planet. While optimistic about the positive effects, they acknowledge the risks of excluding certain populations and regions. They emphasize the importance of addressing the digital divide, promoting inclusivity, and prioritizing e-commerce development.

Soft aspects like legislation and logistics are seen as vital for success. The speakers also agree on the need to bridge the gender-digital divide and create an enabling regulatory environment. The discussion concludes with an emphasis on sustainability and collaboration for a positive digital future.

Arguments

Switzerland prioritizes digitalization in partner countries

Supporting facts:

• Switzerland combines trade and economic development cooperation under one roof

• Focus is on countries where Switzerland can make a difference

• For digitalization support, Switzerland provides all-encompassing support mainly in four areas

Cross-cutting, cross-dimensional nature of the issue is essential

Should not let the digital divide become a development divide

Report

Switzerland is taking a proactive approach towards digitalisation by prioritising it in their partner countries. They have merged their trade and economic development cooperation into one streamlined approach. Their focus is on countries where they believe they can make a significant impact.

In order to support digitalisation efforts, Switzerland provides comprehensive assistance in four key areas. This holistic support encompasses various aspects of digitalisation, including technological infrastructure, skills development, policy frameworks, and access to digital services. By addressing these critical areas, Switzerland aims to ensure that partner countries can effectively leverage digital technologies for economic growth.

One specific area of emphasis for Switzerland is GovTech, which involves the digitalisation of government services. This is seen as crucial for improving efficiency, transparency, and accessibility. By digitising government services, small and medium enterprises, as well as small producers, can benefit from streamlined processes and improved access to government resources.

This can ultimately contribute to economic growth and development. Another area where Switzerland is focusing its efforts is FinTech, which refers to the application of digital technologies to facilitate financial transactions. Switzerland recognises the importance of digital payment systems in facilitating commerce and economic transactions.

By promoting growth in FinTech, Switzerland aims to create an environment that is conducive to seamless and efficient financial transactions, benefitting businesses and consumers alike. In addition to GovTech and FinTech, Switzerland also advocates for the development of e-commerce. They recognise that e-commerce has untapped potential, particularly for countries like Peru.

By embracing e-commerce, these countries can expand their markets, improve access to goods and services, and create new avenues for economic growth. Switzerland is also mindful of the importance of skills development in maximising the benefits of digitalisation. They emphasise the need to prepare individuals to effectively utilise digital technologies.

By prioritising digital literacy and promoting the development of relevant skills, Switzerland aims to empower individuals, ensuring they can fully participate in the digital economy. Furthermore, Switzerland emphasises the need for important principles to ensure a fair and equitable digitalisation process.

This includes creating tools and technologies that meet user needs, understanding the wider ecosystem, scalability, sustainability, data-driven approaches, open standards, and ensuring data privacy and security. By adhering to these principles, Switzerland believes that digitalisation efforts can be more inclusive and beneficial for all.

The issue of the digital divide is also highlighted as being cross-cutting and essential. Switzerland acknowledges that the digital divide can exacerbate existing inequalities and hinder socio-economic development. Therefore, they advocate for policies and initiatives that bridge the gap and prevent the digital divide from becoming a development divide.

In conclusion, Switzerland’s approach to digitalisation in partner countries is comprehensive and strategic. They prioritise areas such as GovTech, FinTech, e-commerce, skills development, and adherence to important principles. By combining trade and economic development cooperation, Switzerland aims to make a tangible difference in partner countries’ digitalisation efforts.

They recognise the significance of addressing the digital divide and believe that economic development is a crucial factor in achieving digital development.

Arguments

Increase in share of aid for trade commitments to the ICT sector

Supporting facts:

• The share of aid for trade commitments to the ICT sector grew from 1.2% in 2017 to 4.1% in 2021

Inequality in internet access

Supporting facts:

• In least-developed countries, only 36% of the population use the Internet, compared with 66% globally

Women’s exclusion from the digital world has cut 1 trillion US dollars from the GDP

Supporting facts:

• Women’s exclusion from the digital world has cut 1 trillion US dollars from the GDP of low- and middle-income countries in the last decade

• The loss will grow to 1.5 trillion US dollars by 2025 if no action is taken

Report

The analysis provides valuable insights into the digital economy and its implications for development. One of the key points highlighted is the increase in aid for trade commitments to the ICT sector. The share of aid for trade commitments to the ICT sector has grown from 1.2% in 2017 to 4.1% in 2021.

This positive trend signifies the growing recognition of the importance of investing in Information and Communication Technology (ICT) for economic development. However, the analysis also sheds light on the issue of inequality in internet access. In least-developed countries, only 36% of the population uses the internet, which is significantly lower than the global average of 66%.

This digital divide accentuates the existing inequalities and hampers the ability of these countries to fully participate in the digital economy and benefit from its opportunities. Bridging this gap in internet access is imperative for ensuring inclusive development. Another important finding is the adverse impact of women’s exclusion from the digital world.

The analysis reveals that women’s exclusion has resulted in a staggering loss of 1 trillion US dollars from the GDP of low- and middle-income countries over the past decade. If no action is taken, this loss is projected to grow to 1.5 trillion US dollars by 2025.

This evidence highlights the urgent need to address gender disparities in access to digital technologies and opportunities. On a positive note, the analysis underscores the transformative potential of digitalization. It asserts that digital transformation can significantly alter the course of development.

The integration of digital technologies has the power to revolutionize sectors such as education, healthcare, and government services. Moreover, digitalization has the potential to reshape the production and trade landscape, creating new avenues for economic growth. Lastly, the analysis emphasizes the crucial role of donor support in advancing the work of organizations like UNCTAD.

Donor support is essential for enabling research, analysis, technical cooperation, and consensus-building efforts. Recognizing and appreciating the contributions of donors is vital in sustaining and expanding initiatives that promote digital development and foster partnerships for achieving the Sustainable Development Goals.

In conclusion, the analysis highlights the upward trajectory of aid for trade commitments to the ICT sector, illustrating an increasing focus on harnessing digital technologies for development. However, it also underscores the persistent challenges of inequality in internet access and women’s exclusion from the digital world.

Harnessing the transformative potential of digitalization, addressing these challenges, and garnering donor support are essential steps toward ensuring inclusive and sustainable digital development.

Arguments

The digital divide is currently one of the most significant gaps faced by LDCs, posing limits in infrastructure and digital capacity

Supporting facts:

• Last year, there was a significant increase in the number of people going online in LDCs, probably fueled by the COVID-19 pandemic

• Despite the increase, a majority of the 2.7 billion people still offline globally are from developing countries

• There is a notable increase in LDC’s participation in digital trade

Report

The digital divide is currently one of the most significant gaps faced by least developed countries (LDCs), resulting in limitations in infrastructure and digital capacity. While there has been a significant increase in the number of people going online in LDCs, largely due to the COVID-19 pandemic, the majority of the 2.7 billion individuals who are still offline globally are from developing countries.

This emphasises the need for targeted efforts to bridge the digital divide and ensure equitable access to digital technologies and the associated opportunities. Additionally, there has been a noticeable rise in LDCs’ participation in digital trade, highlighting the potential for economic growth and development through digital advancements.

Nonetheless, this also underscores the importance of providing the necessary support and resources to enable LDCs to fully harness the benefits of digitalisation. On the other hand, development partnership efforts have exhibited positive outcomes in reducing poverty, enhancing human development, education, health, and the standard of living.

Over the past decade, these partnerships have proven effective in addressing key development challenges. Despite criticisms, development thinkers such as Graham Hanook and Geoffrey Sack have proposed sustainable approaches to poverty eradication, highlighting the potential for continued progress and the need to build on successful development partnerships.

To fully realise the benefits of digitalisation, developing countries require integrated support, access to markets, capacity building, and engagement with youth and entrepreneurs. These factors are crucial in ensuring that digital technologies can effectively contribute to economic growth, decent work, and improved living standards.

Smaller developing countries and economies, in particular, can benefit from digital technology by capitalising on e-commerce opportunities. Encouraging the establishment of innovative hubs and incubators that provide digital solutions is essential in nurturing entrepreneurship and driving digital transformation. In conclusion, addressing the digital divide and promoting development partnerships are vital for the progress of least developed countries and developing economies.

Targeted efforts are required to ensure equitable access to digital technologies, support digital trade, and leverage digitalisation for sustainable development. By investing in infrastructure, capacity building, and fostering youth and entrepreneur engagement, these countries can unlock the transformative power of digitalisation and drive inclusive growth.

Arguments

The Global Gateway Initiative by the European Commission prioritizes impact through quality and trustful investment in digital transformation across various sectors such as energy, environment, transport, health, education, research and development.

Supporting facts:

• Digital has a strong cross-sectoral capacity

• The initiative aims to transform whole economies

Inclusiveness and ownership are crucial elements in the European Commission’s agenda to build trustful relationships and contribute effectively to economic development; emphasis is laid on understanding local needs and establishing direct connections.

Supporting facts:

• Working as a team within the EU can bring trust to partners worldwide

A comprehensive approach is essential in the implementation of projects, covering areas such as infrastructure development, addressing gender balance, youth access to digital, cybersecurity, and 5G development.

Supporting facts:

• Positive impacts can already be seen in Latin America and the Caribbean with infrastructural developments like the Bella cable

The European Commission advocacies for multilateralism, contributing significant resources for global partnerships.

Supporting facts:

• The EU will be the first donor with 30 million for the UN’s joint SDG fund digital transformation window

Investments in digital need to address financial risks and cybersecurity risks.

The Global Digital Compact can serve as a roadmap for a human-centric, human rights-based shared global course of action for the digital future.

Report

The European Commission’s Global Gateway Initiative prioritises impact through quality and trustworthy investment in digital transformation across various sectors, such as energy, environment, transport, health, education, research, and development. The initiative aims to transform entire economies by harnessing the cross-sectoral capacity of digital technologies.

This comprehensive approach aligns with the United Nations Sustainable Development Goals (SDGs) of Quality Education (SDG 4), Affordable and Clean Energy (SDG 7), Industry, Innovation, and Infrastructure (SDG 9), and Partnerships for the Goals (SDG 17). Inclusiveness and ownership are key elements in the European Commission’s agenda.

By working collaboratively within the European Union (EU), the Commission aims to build trustful relationships and effectively contribute to economic development. Emphasis is placed on understanding local needs and establishing direct connections. This approach is in line with the SDGs of Reduced Inequalities (SDG 10) and Partnerships for the Goals (SDG 17).

The implementation of digital transformation projects requires a comprehensive approach. This includes areas such as infrastructure development, gender balance, youth access to digital technologies, cybersecurity, and 5G development. Positive impacts of such projects can already be seen in regions like Latin America and the Caribbean, where infrastructural advancements such as the Bella cable have been made.

These efforts contribute to advancing the SDGs of Gender Equality (SDG 5), Industry, Innovation, and Infrastructure (SDG 9), and Reduced Inequalities (SDG 10). The European Commission advocates for multilateralism and prioritises global partnerships. It commits substantial resources to support global initiatives, with plans to become the first donor contributing 30 million to the United Nations’ joint SDG fund digital transformation window.

This commitment aligns with the SDG of Partnerships for the Goals (SDG 17). Addressing financial and cybersecurity risks is crucial in digital investments. The European Commission recognises the need for risk management to ensure the stability and safety of digital infrastructures and investments.

The Global Digital Compact serves as a roadmap for a human-centric and human rights-based shared global course of action for the digital future. It highlights the European Commission’s commitment to ethical considerations, inclusivity, and respect for human rights. This aligns with the SDG of Industry, Innovation, and Infrastructure (SDG 9).

In conclusion, the European Commission’s Global Gateway Initiative takes a comprehensive and strategic approach to digital transformation. Through quality and trustworthy investment, inclusiveness, and ownership, the Commission aims to drive economic development and contribute to the achievement of the SDGs.

Multilateralism, global partnerships, risk management, and a human-centric future are key priorities. Providing incentives to the private sector is seen as a positive step towards achieving decent work and economic growth (SDG 8).