While the digital revolution has brought about unprecedented opportunities for global trade, developing countries and small states in the Commonwealth still face some key challenges linked to e-commerce.
While the digital revolution has brought about unprecedented opportunities for global trade, developing countries and small states in the Commonwealth still face some key challenges linked to e-commerce.
The Commonwealth Secretariat co-hosted the launch of the 2018 Trade and Development Report by the UN Conference on Trade and Development (UNCTAD) in London yesterday, underlining global economic and geopolitical trends that are shaping the role of the digital economy in advancing sustainable development across the world.
Dr. Richard Kozul-Wright, Director of the Globalisation and Development Strategies Division at UNCTAD and lead author of the report, described “a fragile global economy walking a tightrope between debt-fuelled growth spurts and financial instability.”
In addition to rising debts, slowing growth and rising energy costs, the ongoing trade war between superpowers has shaken investors’ and consumers’ confidence, leading to a drop in demand for imports. The shock felt in vulnerable economies could be very damaging.
Against this backdrop, Commonwealth small states face distinct challenges related to the “fourth industrial revolution”.
Opeyemi Abebe, a Commonwealth trade expert, said that a number of factors can worsen economic inequalities and delay progress on the SDGs, including a growing digital divide, lack of infrastructure for connectivity and effective e-commerce regulation, and a shortage of digital skills. “[However] there is space for these countries to develop using the digital economy, if the right mechanisms are put in place,” she added.
Touching on the Commonwealth Connectivity Agenda, adopted by the Commonwealth Heads of Government Meeting (CHOGM) in April 2018, Ms. Abebe highlighted the economic potential of the digital revolution. She cited the
Commonwealth Trade Review, released at CHOGM, which states that full access to broadband internet could add up to $1 trillion to the Commonwealth’s collective GDP.
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However, it also shows that only 22 per cent of the population in Africa use the internet, compared to 80 per cent in Europe. Women in developing countries are also affected by a “double digital divide” including mobile phones as well as internet access, with the gender gap most pronounced in South Asia.
Ms. Abebe said the Commonwealth is working to address some of these issues through technical assistance and building networks for collaboration. It recently supported Cameroon to develop an e-commerce strategy aimed at diversifying the economy and creating employment. Another upcoming project in Sri Lanka will assess the country’s readiness for e-commerce, while building the capacity of women and small or medium businesses (SMEs) to trade electronically.
“We are ready to work with all member countries to urgently develop their digital capacities to boost trade competitiveness in this new global context,” she stated. “The findings of the UNCTAD are an important contribution to discussions on a way forward for developing countries in the digital era.”
The Commonwealth Secretariat co-hosted the launch of the UNCTAD report as part of a cooperation agreement signed in 2017 between the two organisations to boost sustainable growth in developing countries, with a strong focus on island nations.
