How emerging markets can leapfrog into the digital age

By Angel Melguizo, Vice President, External & Regulatory Affairs, AT&T VRIO Latin America; Eduardo Salido Cornejo, Public Affairs and Policy Manager Latin America, Telefónica; and J. Welby Leaman, Senior Director, Global Government Affairs, Walmart, Inc1

IPhone, Google, Facebook, Netflix, YouTube, Bitcoin, Twitter, TikTok, LinkedIn, Uber, Rappi: how many of them have you used today? And if so many of the things that impact our day-to-day lives, creating common experiences across the globe, did not exist 25 years ago (see John Erlichman’s tweet), what can an increasingly connected world create over the next 25 years? The next 60?

The transformative impact of digitalisation affects not just our personal lives but also governments, public services and businesses. For instance, Artificial Intelligence (AI) has advanced rapidly in recent years and is being applied in settings ranging from health care, to agriculture, to financial markets. Accelerated by the surge in digital services, including essential public services, during the COVID-19 crisis, AI has the potential to transform business models, government systems and policy making through greater adoption across the private and public sector. Already today, 40% of internet traffic is not human but generated by machines; an unstoppable consequence of digitalisation.

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Digitalização como estratégia anticorrupção: quais são os dividendos de integridade de se tornar digital?

Carlos Santiso, Diretor de Inovação Digital do Estado do Banco de Desenvolvimento da América Latina

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A resposta à crise do coronavírus está fornecendo uma oportunidade única para reinventar o governo, reconstruir a confiança e acelerar a luta global contra a corrupção, impulsionada pelo uso mais inteligente de novas tecnologias e análises de dados. A transformação digital é fundamental para os planos de recuperação, que exigirão governo ágil e redução da burocracia, mas também programas de reativação à prova de corrupção. Também exigirá o gerenciamento e a mitigação dos riscos à privacidade e à segurança pública.

A correlação entre digitalização e corrupção está bem estabelecida. A digitalização pode interromper a corrupção reduzindo a discrição, aumentando a transparência e permitindo a responsabilização, desmaterializando os serviços e limitando as interações humanas. Além disso, permite uma supervisão mais eficaz por instituições de responsabilidade mais inteligentes e sociedade civil com experiência em dados. No entanto, há menos evidências acionáveis ​​no nível micro sobre os efeitos de reformas específicas da digitalização sobre os diferentes tipos de corrupção e os canais de política através dos quais operam.

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La digitalización como estrategia anticorrupción

Por Carlos Santiso, Director, Dirección de innovación digital del estado de CAF – Banco de Desarrollo de América Latina

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La respuesta a la crisis del coronavirus está brindando una oportunidad única para reinventar el gobierno, reconstruir la confianza y acelerar la lucha mundial contra la corrupción, impulsada por el uso más inteligente de las nuevas tecnologías y el análisis de datos. La transformación digital es un aspecto fundamental de los planes de recuperación, que requerirán gobiernos ágiles y reducción de la burocracia, pero también garantías de integridad en el uso de los recursos de los programas de reactivación. También requerirá gestionar y mitigar los riesgos para la privacidad y la ciberseguridad.

La correlación entre digitalización y corrupción está bien establecida, aunque no las relaciones de causalidad. La digitalización puede alterar las oportunidades de corrupción al reducir la discreción, aumentar la transparencia, y permitir la rendición de cuentas al desmaterializar los servicios y limitar las interacciones humanas. Además, permite una supervisión más eficaz por parte de instituciones de rendición de cuentas más inteligentes y una sociedad civil conocedora de los datos. Sin embargo, hay menos evidencia accionable sobre los efectos de reformas específicas de digitalización en diferentes tipos de corrupción y los canales de políticas a través de los que operan.

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Digitalisation as an anti-corruption strategy: what are the integrity dividends of going digital?

By Carlos Santiso, Director, Digital Innovation in Government Directorate, Development Bank of Latin America

The response to the coronavirus crisis is providing a unique opportunity to “reinvent government”, rebuild trust and accelerate the global fight against corruption, propelled by the smarter use of new technologies and data analytics. Digital transformation is central to recovery plans, which will require agile government and cutting red-tape, but also corruption-proofing reactivation programmes. Additionally, it will require managing and mitigating the risks to privacy and cybersecurity. At a macro level, the correlation between digitalisation and corruption is well established. Digitalisation can disrupt corruption by reducing discretion, increasing transparency, and enabling accountability by dematerialising services and limiting human interactions. Furthermore, it allows for more effective oversight by smarter accountability institutions and data-savvy civil society. However, there is less actionable evidence at the micro level on the effects of specific digitalisation reforms on different types of corruption and the policy channels through which they operate.

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Transforming finance in the Middle East and North Africa

By Rabah Arezki, Chief Economist for Middle East and North Africa Region at the World Bank and Lemma W. Senbet, The William E. Mayer Chair Professor of Finance, Robert H. Smith School of Business, University of Maryland, and Immediate Past Executive Director/CEO, African Economic Research Consortium

Bedouin solar panels

To overcome current challenges and seize the opportunity to leapfrog, the Middle East and North Africa (MENA) region needs to simultaneously embrace the technological tide transforming the global economy and clean energy development. This transformation calls for a dual transition: (a) decarbonisation of the economy—moving away from the use of fossil fuel as the main source of energy toward renewable energies; and (b) digitalisation— the digital transformation of traditional activities and the advent of new digital activities. To achieve the transition, MENA needs hundreds of billions of dollars of investment in quality projects, including in renewable energy and telecom sectors. MENA should aggressively join the global momentum for the use of clean, renewable energy (e.g., wind, solar, geothermal) to combat climate change. Likewise, it should aggressively develop the digital infrastructure that is also essential for the development of a digitised financial economy.

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Resetting the state for the post-COVID digital age

By Carlos Santiso, Director for Digital Innovation in Government of the Development Bank of Latin America and Member of the Global Future Council on Transparency and Anticorruption of the World Economic Forum


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


glob-digital-colorsIn Brazil and elsewhere, the coronavirus crisis is accelerating the digital transformation of governments and govtech start-ups are becoming unexpected allies in the race to digital resilience.

Press reset and fast forward

The COVID-19 crisis is putting our global digital resilience to the test. It has revealed the importance of a country’s digital infrastructure as the backbone of the economy, not just as an enabler of the tech economy. Digitally advanced governments, such as Estonia, have been able to put their entire bureaucracies in remote mode in a matter of days, without major disruption. And some early evidence even suggests that their productivity increased during lockdown.

With the crisis, the costs of not going digital have largely surpassed the risks of doing so. Countries and cities lagging behind have realised the necessity to boost their digital resilience and accelerate their digital transformation. Spain, for example, adopted an ambitious plan to inject 70 billion euro into in its digital transformation over the next five years, with a Digital Spain 2025 agenda comprising 10 priorities and 48 measures. In the case of Brazil, the country was already taking steps towards the digital transformation of its public sector before the COVID-19 crisis hit. The crisis is accelerating this transformation.  Continue reading

From crisis to opportunity in China: stepping up digitalisation amid COVID-19

By Margit Molnar, Head of China Desk, OECD Economics Department and Kensuke Tanaka, Head of Asia Desk, OECD Development Centre


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


digitalisationDigitalisation as a way to lift growth potential

COVID-19, or the new Great Depression, is likely to have a lasting impact on economies and societies worldwide. Pandemics are shown to be followed by sustained periods with depressed investment opportunities, and/or heightened desires to save (Jorda et al., 2020), thereby reducing potential growth. To mitigate the impact of COVID-19, many governments, in addition to emergency measures to save lives and keep firms afloat, have also adopted investment stimuli. China is among those countries where the composition of stimulus is tilted towards public investment. While continuing to strike a delicate balance between keeping the pandemic under control and resuming activities, it is crucial to accelerate processes that will counter the fall in growth potential. China’s growth potential is set to decrease as the country catches up with more advanced economies and its rapid ageing also weighs on it. However, China can still reap the “reform dividend” with measures that also boost growth in the long term.

Digitalisation is a promising candidate to lift China’s long-term growth potential. Digital technologies are shown to boost productivity (Gal et al., 2019), which is the key to sustainable growth. At the current juncture, introducing digital technologies can also help jumpstart the economy as it creates new jobs and meets new demand (OECD, 2018). Indeed, in the first quarter of the year, it was the IT and software sector growing at over 13% and the financial sector at over 6% (partly thanks to surging online payments), that held up services growth. Continue reading

Least developed countries can become authors of their technological revolution

By Ratnakar Adhikari, Executive Director of the Enhanced Integrated Framework Executive Secretariat, World Trade Organization and Fabrice Lehmann, Associate, Enhanced Integrated Framework (EIF)

SIGI-Digital-Human-RightsThe fourth industrial revolution is charting a new and uncertain course for the world economy. Least developed countries must prepare for the opportunities and risks that it brings. It is characterised by the confluence of new technologies, fusing the digital, physical and biological spheres.

Rapid technological change is expected to have a profound impact on economic and social development in countries at all levels of income. Opportunities include harnessing the possibilities of digitalisation for sustainable development and social empowerment. Risks involve marginalisation and a widening chasm between poor nations and their emerging and industrialised partners.

Can countries in the early stages of development reap the benefits and become authors of their technological revolution? Continue reading

Digital economies at global ‘’margins’’

By Mark Graham, Professor of Internet Geography, Oxford Internet Institute, University of Oxford; Turing Fellow, The Alan Turing Institute; and Research Affiliate, School of Geography and the Environment, University of Oxford

digital-economies.jpgBillions of people at the world’s economic ‘’margins’’ are experiencing a moment of changing connectivity. In Manila, Manchester, Mogadishu, the banlieues of Marseille and everywhere in between, the world is becoming digital, digitised and digitally mediated at an astonishing pace. Most of the world’s wealthy have long been digitally connected, but the world’s poor and economically marginal have not been enrolled in digital networks until relatively recently. In only five years (2012–2017), over one billion people became new Internet users (ITU 2016). In 2017, Internet users became a majority of the world’s population. The networking of humanity is thus no longer confined to a few economically prosperous parts of the world. For the first time in history, we are creating a truly global and accessible communication network.

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