Digitalisation will divide and drive economic progress

Subject

Digitalisation and developing economies.

Significance

Digital technologies including artificial intelligence, financial technology ('fintech') and 3D printing are changing the landscape of manufacturing, which developing economies traditionally use as the stepping stone to structural transformation. Digital technologies are penetrating all phases of production, including computer-aided design, robotic manufacturing, e-commerce trading, automated transport and fintech applications for logistics and smart payments. However, the digital divide between developed and developing countries is significant across a range of technologies.

Impacts

• Governing the use of data will be key to countries' digital competitiveness.
• Digital platform competition and the weaker security of online employment will encourage countries to increase social protection measures.
• Reskilling and re-equipping workers will be key to the ability of developing countries to harness digitalisation as an engine of growth.
• Services sector employment will rise, particularly in information and communications technology (ICT) sectors including digital marketing.