DIGITALIZATION, TRADE, AND DEVELOPMENT€¦ · Angel González Sanz Head, Science, Technology and...
Transcript of DIGITALIZATION, TRADE, AND DEVELOPMENT€¦ · Angel González Sanz Head, Science, Technology and...
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Angel González SanzHead, Science, Technology and ICT Branch
Division on Technology and Logistics
UNCTAD
DIGITALIZATION,TRADE, ANDDEVELOPMENT
MYEM on Enhancing the Enabling Economic Environment, 19-20 March 2018
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Radical transformationsnew digital economy
� Accelerated change
� Recombining technologies
� Lower costs, higher performance
� Open collaboration
� New forms of organization
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Digital economy implications
• More activities conducted online• New business models• New markets places• New products and services• New competition• Changing skills requirements• Need for new or revised laws and regulations, e.g
• Data protection and privacy• Consumer protection online• Cybercrime
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Both opportunities and risksfor developing countries
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DIGITALIZATION IS TRANSFORMATIONAL
Opportunities• Lower transaction costs• Improved market access-
domestically and internationally• Lower delivery cost (digitally
provided)• Opportunities for
entrepreneurship and innovation• Rural development• Greater consumer choice• Overcome barriers to growth
Challenges• Economic barriers
• Infrastructure weaknesses• Limited purchasing power• Payments• Risk of market dominance
• Socio-economic barriers• Legal frameworks• Cultural preferences
• Cognitive barriers• Awareness and knowledge• Low levels of e-literacy
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Both opportunities and risksfor developing countries
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Digital economy is evolving fast…
Sources: UNCTAD, Cisco, ITU
Developing economies
accounted for nearly
90% of the 750 million
people that went online
for the first time 2012-
2015, India (177 m)
China (122m).
$189
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But at different speeds and there are gaps …
Sources: UNCTAD, ITU
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Source: UNCTAD.
The e-commerce divide is huge
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E-commerce ReadinessBased on UNCTAD B2C E-commerce Index 2017
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The Internet can enable more inclusive trade
…but digitalization does not remove all barriers
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Small businesses are less prepared for the digital economy
3 ways in which MSMEs connect with
GVCs:
• Thintegration� Limited transformation
• Platform digitalization� Agriculture
� Tourism
� Global e-commerce platforms
• Full digitalization� Data-driven value chains
� Tracking, payments
� Preferred suppliers
� E.g. agriculture, garments
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Digitalization of value chains and MSME involvement
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Online labour platforms and cloud work
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The availability of the online work
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Online labour platforms and cloud work
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Digitalization changes jobs and skills
4 key changesdue to increased digitalization
1.New jobs and occupationscreated
2. Some jobs will disappearas a result of automation
3.The conditions of work will be affected
4. More work willinvolve digital skills
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New skills needed in the digital economy
New skills & educationadjustments required
• Strong non-cognitive, adaptive and creative skills
Strategic jobs needed• Data scientists & analysts
• Cybersecurityvacancies: 1 million now; 1.5 million in 2019
• Changes in labourregulations maybe needed to facilitate new jobs and skillstransitions
Challenges:
Sources: Melguizo and Perea, European
Commission, van Welsum and Lanvin
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Digital Platforms and DataA valuable resource
• Digital platforms thrive on the effective collection and analysis of massive amounts of data
• Data can be monetized in different ways�Advertising revenue (Google, Facebook)�Optimization of production (manufacturing: Caterpillar, Rolls Royce)�Selling/renting out cloud services (AWS)
�Data ≠ oil!�Competitiveness increasingly linked to data analysis�Users value the ("free") services; pay by providing detailed info
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Data issues and implications
• Key policy issues�Data privacy�Competition�Surveillance
• Implications for developing countries�Far behind in Internet use/e-commerce use�Less prepared:
o Lack of data protection and consumer protection lawso Lack of affordable ICT and cloud infrastructureo Lack of skills (e.g. data scientists)
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Critical questions
• What are the opportunities for developing country enterprises to competein a more data-driven economy?
• How to generate more research and policy analysis that addresses the development dimensions of data?
• What are the implications for «non-platform» companies?
• What kind of policy responses are needed in the areas of regulations and skills development?
• How to better link trade policies with Internet policies?
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Connectingtrade policies
and Internetpolicies
New ways should be explored to strengthen the dialogue
Internet governance
discussions
are multi-stakeholder
Trade negotiations are
government
to government
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The policy challenge is multifaceted
CoordinationEffective cross-sectoral collaboration needed within the government and with other stakeholders.
A better measurementNeed to build the capacity of developing countries, and especially LDC, to collect more and better data on relevant aspects of the digital economy.
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The policy challenge is multifaceted
Expand ICT Connectivity• Secure an open, transparent
telecommunications market• Attract investment
Adapt trade promotion policies to the digital economy• Trade promotion organizations can
embed digital tools in their services offered to small businesses
Trade logistics, digitalizationand e-commerce
• Adapt to tsunami of parcels
• New technologies• Cross-border data
flows
Education and skills• Retrain and upgrade the skills
of workers and teachers• Make use of redistribution
policies
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Boost international supportTo prevent widening digital divides and greater income inequalities, the
international community will need to expand its support on a massive scale.
Source: WTO
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• E-COMMERCE WEEK 2018
• 16-20 APRIL 2018 in GENEVA
• Second session of the UNCTAD Intergovernmental Group of Experts (IGE) on E-commerce and the Digital Economy
Save the date!
Key facts
More than1'000 participantsin 2017
5 day-event includinga 3-day dedicated meetings of experts (IGE 2018) on leveraging platforms and digital entrepreneurship for development
1 high-levelconversation, eTradefor all private partnersmeeting, networking opportunities … and much more…
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a) How can developing countries foster local platforms for domestic and cross-border e-commerce?
b) What are the existing barriers related to international e-commerce platforms that developing countries, including the least developed countries, face and how can these barriers be overcome?
c) What are some of the operational constraints that small and medium-sized businesses in developing countries face when setting up trade online, and how can they be overcome?
d) What are the good practices that developed and developing countries, including the least developed countries, can learn from each other?
Second session of UNCTAD IGEDiscussion topics and guiding questions
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Thank you!