60% of world's population excluded from digital economy
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There are eight million entrepreneurs in China who sell goods to 120 countries.
In addition, though the number of internet users worldwide has more than tripled since 2005, four billion people still lack access to the internet.
Although there are many individual success stories, the effect of technology on global productivity, expansion of opportunity for the poor and middle class, and the spread of accountable governance has so far been less than expected. Digital technologies are spreading rapidly, but digital dividends – growth, jobs and services – have lagged behind.
Foundational training in advanced, technical ICT systems will be key as the internet spreads.
India has provided unique digital identification to nearly one billion people in five years, and increased access and reduced corruption in public services. And in public health services, simple SMS messages have proven effective in reminding people living with HIV to take their lifesaving drugs.
To deliver fully on the development promise of a new digital age, the World Bank suggests two main actions: closing the digital divide by making the internet universal, affordable, open, and safe; and strengthening regulations that ensure competition among business, adapting workers' skills to the demands of the new economy, and fostering accountable institutions—measures which the report calls analog complements to digital investments.
Digital development strategies need to be much broader than information and communication technology (ICT) strategies.
To reap the greatest benefits, countries must create the right environment for technology: regulations that facilitate competition and market entry, skills that enable workers to leverage the digital economy, and institutions that are accountable to people. Digital technologies can, in turn, accelerate the pace of development.
Investing in basic infrastructure, reducing the cost of doing business, lower trade barriers, facilitating entry of start-ups, strengthening competition authorities, and facilitating competition across digital platforms are some of the measures suggested in the World Development Report that can make businesses more productive and innovative.
In addition, while basic literacy remains essential for children, teaching advanced cognitive and critical thinking skills and foundational training in advanced, technical ICT systems will be key as the internet spreads. Teaching technical skills early and exposing children to technology promotes ICT literacy and influences career choices. ■