How developing countries benefit from digitization of economies

The globalization of the internet and the flow of data across borders have led to the digitization of economies, with every sector of the economy now relying on the internet and data to conduct business.  

Governments, business, and civil society in the developed and developing world are using these technologies to improve the quality of economic growth, create new jobs, strengthen social inclusiveness and improve governance.

The globalization of the internet and the ability to move data across borders is also transforming the nature of liberalising trade. 

Businesses use the internet (particularly digital platforms) to export 

Online payment gateways, multi-currency business accounts, cross border money transfer accounts and similar platforms have transformed businesses in developing countries, especially small to medium sized enterprises (SMEs). They use these platforms to receive money and pay suppliers and staff. The comprehensive set of ancillary services these platform provides allow SMEs to reach consumers predictably and efficiently. 

Services can be increasingly traded online, particularly IT, professional, financial, and education services. 

Business providing marketing, advisory, development, HR and sales services are now relying on cloud computing to reach global audiences. Many of them focus on a niche offering targeting a particular demography to enable economies of scale and to better retain customers. Their quality and competitiveness increase because they would have to be top of the pile in that particularing offering to attract and retain customers from that particular demography.

Data collection and analysis is allowing new services (often also provided online) to add value to goods exports.

Organizations that think strategically about data, and make it the center of their universe, will be able to build an ecosystem of processes and applications that leverage data in a virtuous money making cycle - much how the Earth's ecosystems rely on and thrive upon the energy of the sun. Organizations that ignore strategic data management turn data into the center of their universe, but more in the fashion of a black hole, into which all matter and resources are consumed and lost to the ages. Global data flows underpin global value chains.

Agreements like CECA and RCEP have been updated to incorporate the new norm around rules of origin. 

The growth of digital technologies such as 3D printing and M2M communications complicates the nature of trade transactions, with implications for regulatory co-operations and has led to changes to established trade related principles.

The Agenda of the Structured Board Meetings is focused on three key areas: 

  1. Understanding of how developed countries spur economic growth in developing countries using digital platforms and ecosystems
  2. Increasing the competiveness of a product or service to cater for a niche audience and economies of scale in doing so
  3. Utilisation of intangible assets in developed countries, such as human capital, IP and trademarks and market liquidity