ECOSOC FfD Forum 2024: Side Event on Seizing Innovative Financing Opportunities for Digital Connectivity and Capacity Building
22 April 2024
Your Excellency, (Mr.) Suharso Monoarfa, Minister for National Development Planning of the Republic of Indonesia;
Your Excellency, (Mr.) Chola Milambo, Permanent Representative of Zambia to the United Nations;
Your Excellency, Anna Karin Enestrom, Permanent Representative of Sweden to the United Nations;
Your Excellency, (Mr.) Hari Prabowo, Deputy Permanent Representative of Indonesia to the United Nations (moderator);
Distinguished panelists,
Dear delegates,
Ladies and Gentlemen,
I am very pleased to be part of this distinguished panel and want to thank Indonesia for reaching out to us to partner for this event.
As we explore innovative financing opportunities for digital connectivity and capacity building, it is crucial to recognize that connectivity is the foundational bedrock on which the digital economy is built. It enables economic transformations through fostering innovation and technological advancements that increase productivity. This can unlock a myriad of opportunities across all sectors.
From agro-tech to fintech, from e-governance to e-learning, today, we find ourselves navigating an era where digitalization, technology and innovation can redefine the boundaries of what is possible and what it means to be productive.
Digitalization and new technologies have also been instrumental for addressing long-standing challenges such as poverty, education, and health disparities.
Yet, the benefits of digitalization are not automatic or evenly distributed. Many parts of the world are not capturing its full benefits.
Approximately 67 per cent of the world’s population was online in 2023. But connectivity is much lower in least developed countries and landlocked developing countries, with only 35 and 39 per cent of their respective population online. The average broadband speed in least developed countries is 8 times slower than in developed countries, with an added constraint that the cost of connectivity is very high relative to income.
Moreover, digital infrastructure tends to favour urban and wealthier areas, leaving rural and poorer communities behind. This disparity, or digital divide stems from financial limitations and logistical challenges that make connectivity in remote areas complex and costly.
But meaningful connectivity—the kind that changes lives—requires not only physical access to technology but also the skills, regulatory support, and economic opportunities to utilize these tools effectively.
There is a critical skills gap that must be addressed. People need the appropriate digital literacy skills to utilize these technologies effectively. Without these skills, the digital divide widens.
Effective policies and regulations are essential to encourage investment in digital infrastructure and to ensure that the benefits of digital expansion are shared equitably. Many regions lack the regulatory framework needed to foster a healthy digital marketplace, deter monopolistic practices, and protect consumers.
Furthermore, the global digital landscape faces challenges related to sustainability and resilience, including cybersecurity threats, privacy concerns, and the environmental impact of expanding digital technologies. These issues require comprehensive strategies and international cooperation to manage.
To address the global digital divide, both public and private sector financing must be mobilized. There has been a positive shift in international development assistance, with Aid-for-Trade commitments to the ICT sector increasing from 1.3% in 2017 to 4.1% in 2022.
Alongside this, innovative financing models such as blended finance, public-private partnerships, and international development assistance must be leveraged to close these gaps. It is only through a comprehensive and coordinated approach that we can achieve equitable digital access and ensure that the digital economy delivers on its promise of economic inclusivity and sustainability.
The importance of multistakeholder collaboration and holistic approach to digital connectivity is also a best practice and lesson learned from the implementation of UN Trade and Development eTrade Readiness Assessments. These assessments have shown the value of involving a broad range of partners to strengthen the capabilities of countries to participate in and benefit from the digital economy.
Countries that have successfully enhanced their digital landscapes have done so through concerted efforts to implement tailored policy recommendations, prioritizing inclusive access to digital tools and fostering an environment conducive to entrepreneurship.
At the same time, it is a collective responsibility to ensure that the digital revolution is inclusive, equitable and sustainable. By cultivating global cooperation, fostering robust multistakeholder partnerships, and leveraging innovative financing solutions, we can together build a digital ecosystem that supports economic growth and enhances the quality of life for all.
Indonesia has been a critical actor in this regard. When it held the G20 presidency in 2022, the digital economy was a focus area. UN Trade and Development supported their presidency as a knowledge partner and together we issued a report on regulations of cross-border data flows.
The Global Digital Compact is an excellent chance to tackle challenges related to digitalization in the most global and inclusive way possible – through discussions that are multilateral and consider multistakeholder concerns. The Compact is envisioned as a bold declaration of shared principles for a digital future that is inclusive, sustainable, and upholds human rights. Development stands at the heart of this vision.
Let me end my intervention here with this encouraging opportunity that lies ahead.
Thank you.
