As the global economy moves steadily towards digitalization, developing countries should not be left behind. Sustainable and inclusive economic development is a cornerstone of the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs). It may well be greatly facilitated by the developing world’s burgeoning technology sector, particularly small- and medium-sized enterprises engaging in the platform economy and digital trade. Indeed, the digitization of services, including via smart contracts, information and communications technology (ICT) and blockchain, offers opportunities for improved access to and participation in the global (digital) economy by the populations of the Global South. This includes the digitization of services via smart contracts, information and communications technology (ICT) and blockchain.
In this context, the report is a joint effort by the Finance Centre for South-South Cooperation (FCSSC) and the United Nations Office for South-South Cooperation (UNOSSC). It provides an in-depth analysis of the potential opportunities and potential risks of digitalization for development progress in the Global South.
This is particularly so in terms of progress towards SDGs. However, harnessing the opportunity for dynamic change in sustainable development created by the digital economy, particularly the Global South, has certain requirements. It can happen only if the associated risks are addressed effectively by governments, private-sector partners and international organizations as well as leaders and the general public. Through SSC, developing countries can collaborate to enhance their opportunities and collectively face their challenges in the digital era. In light of the above, the present report first explores and analyzes development prospects as well as the trends affecting digital industries in the Global South. It also puts forward proposals for digital industrial cooperation among Southern countries. Second, this report focuses on the impact of digital technology on promoting cross-border trade and trade facilitation, the application of smart contracts in cross-border trade and smart supervision issues. It further provides analysis with regard to the potential of digital finance to promote the development of inclusive finance. It also proposes developing a digital financial infrastructure, human capital investment and capacity-building in developing countries.
Doing so may facilitate the development by the Global South of a smart society nested in the digital world. It may also promote the inclusive development of countries of the South. This so-called smart society and digital world could include digital education, Internet health care and social networking. It could also promote the inclusive development of countries of the South. Finally, the report proposes a possible South-South cooperation initiative on the digital economy. This initiative is a step forward in the Global South’s engagement with and integration into the digital economy while continuing the work of realizing the SDGs.
