World Bank report highlights inequality in access to digital services

In a statement from the Bank regarding the report's findings, it was stated that the gap in internet speed, data traffic, and digital usage hinders digital gains for individuals and firms in low- and middle-income countries.

The statement noted that despite a significant increase in digital adoption across all countries, only one in four people in low-income countries has access to the internet.

Emphasizing that average mobile broadband traffic per capita in wealthy countries exceeds that of low-income countries by more than 20 times, and fixed broadband traffic by more than 1,700 times, the statement reported that in 2023, average fixed and mobile broadband speeds were 5 to 10 times higher in high-income countries compared to low-income countries.

The statement also noted that prices remain much higher for the poor, reporting that in low-income countries, average fixed broadband prices accounted for one-third of monthly income in 2022.

Stating that even the cheapest smartphone corresponds to more than 14 percent of the annual income of people living on less than 2 dollars a day, the statement noted that Africa has the most expensive access to connectivity, and the Middle East and North Africa is the region with the lowest level of digital financial service adoption.

The statement mentioned that the report reveals that digitalization increases economic growth, employment, and resilience where it begins, pointing out that the information technology (IT) services sector grew nearly twice as fast as the global economy from 2000 to 2022.

Providing information that employment in digital services grew by 7 percent annually during the same period, six times the total employment growth, the statement emphasized that businesses that invested in digital solutions during the COVID-19 pandemic lost only half the sales level compared to firms that were not digitally enabled.

WILL PROVIDE A GLOBAL REFERENCE POINT

The statement reported that the report also draws attention to the importance of digital public infrastructure and artificial intelligence breakthroughs that are reshaping the digital future.

Stating that the World Bank's report will be updated annually to track the pace of digital transformation, the statement underscored that the report will provide a global reference point for policymakers and practitioners to measure the pace of change, identify trends to build upon and bottlenecks to overcome, and harness the benefits of digital transformation in a new era of development.

In the statement, which included his assessments, World Bank Managing Director of Development Policy and Partnerships Axel van Trotsenburg stated that digitalization is a transformative opportunity of the era for those connected to the internet.

Pointing out that without internet access and the skills to use digital technologies effectively, one will be left out of the modern world, van Trotsenburg said, "Critical services that support development, such as hospitals, schools, energy infrastructure, and agriculture, all run on connectivity and data. The infrastructure and platforms that form the foundation of these connections need to be accessible, affordable, and secure for developing countries to thrive."

World Bank Vice President for Infrastructure Guangzhe Chen also assessed, "Closely measuring digital progress at the country, regional, and global levels will help policymakers and the private sector direct their efforts to the most critical areas to narrow the digital divide."

Chen emphasized that to reach the transformative potential of digital technologies, the global community must double its efforts to help developing countries adopt and accelerate digital technologies and ensure that everyone is included.