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Digital Transformation and Economic Development 

  • November 2015
  • 53 pages
  • Frost & Sullivan
Report ID: 3443676

Summary

Table of Contents

Digital Transformation and Economic Development : Increasing Need for Global Governments to Adopt Digital Agenda

As of 2014, 60% of the global population did not have access to Internet, of which, 56% belonged to emerging countries. As a positive correlation between Internet proliferation and economic development has already been established, bridging this digital divide has become a pressing challenge for the emerging economies. Greater Internet adoption affects several aspects of economic development such as reduction of emissions, better education facilities, effective governance, better manufacturing facilities, and a stronger innovation ecosystem. Recent digital initiatives by some emerging regions, such as China, India, Colombia, Africa, Estonia, Sri Lanka, and so on, showcase governments’ efforts to usher in a more Internet-led economic growth.

Executive Summary—Internet Penetration and Economic Growth

A strong correlation exists between per capita GDP of a country with its Internet penetration levels for a particular year. An R-squared value shows a statistically significant correlation. The western developed world has successfully transformed into a digitally governed world and demonstrates a strong standard of living, high per capita income, and an overall inclusive growth throughout each country. The predominant reason behind low Internet adoption in developing economies is the low level of overall development. In addition to addressing the issue of Internet affordability, there are several infrastructure that the governments need to build in order to embrace an Internet-led economic growth.

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