Making technology work for all

In early 2000, reports foretold that universal internet coverage would be achieved in just a few years’ time. There were roughly 280 million internet users worldwide then, representing less than 5% of the world’s population. Annual percentage growth in internet hosts was in the double digits and privatisation was seen to be driving further expansion.

But as the saying goes, prediction is very difficult, especially when it’s about the future. Nearly twenty years after the turn of the century, just over half of the planet is connected and using the Internet, according to the United Nations Broadband Commission. Access to digital technology – and the many benefits it can enable – is still not available to everyone and some 3.5 billion people remain offline. Businesses in these communities are effectively cut off from the digital tools needed to upscale their operations, expand employment opportunities and compete against their connected counterparts.

The reasons for this disparity are several. In India, for example, where the government is aiming to connect more than 42,000 villages, a lack of grid electricity and rough terrain make certain areas difficult to take online. Even when access is possible, extending cables those last meters to individual users is expensive. By 2040, the gap in global infrastructure investment for digital connectivity is expected to reach $1 trillion.

Poorly conceived policies intended to govern data flows and usage can also stifle the development of digital ecosystems and reduce the incentive for business to expand digital networks, roll out digitally enabled services or support training and skilling. Unfair rules and corruption deter investment and even market entry from more innovative competitors.

These challenges cannot be solved through government regulation alone, nor can business be expected to shoulder the full cost of connecting the globe.

To meaningfully improve digital access, we must take the following steps, with business and government working in partnership:

First, we need to create a stable legal and regulatory environment that recognizes ongoing development, welcomes new entrants into our digital ecosystem and values new forms of competition. Governments should implement regulatory policies that provide access to stable financing sources for digital projects to achieve sustainable returns, encourage competition and promote digital transformation through education and skilling.

Next, we need to maintain open markets and ensure the free flow of data across borders. Digital innovations can be crippled without the fluid movement of information between countries. While privacy and security concerns form a legitimate basis for placing limits on data flows, they should not be used arbitrarily to restrict trade. Restrictions on data flows will create further burdens for business, which will have a disproportionate impact on small and medium sized businesses (SMEs) everywhere.

Third, governments must adopt an all-encompassing, whole-of-government approach to policymaking with regards to digital transformation. Unlike other public policies, digital technology touches upon a wide range of economic, technical, and socio-cultural factors. Instead of approaching these issues in separate silos, governments should adopt over-arching principles to help encourage the importance of digital technology in all areas of policymaking.

Finally, business and government should work together to form multistakeholder partnerships to promote the benefits of the digital economy. Business and government can ensure that implemented policies maximise opportunities for all and address relevant issues for local societies. One of the biggest benefits of private-public partnerships is the implementation of industry-backed capacity building programmes, such as coding labs, innovation hubs, or tutorials for local communities. With these ventures, business and government can advance sustainable development, while at the same time, encourage the creation of locally relevant content in local languages.

As many of us enjoy the benefits of digital connectivity, we must now speak up and speak out for those that have been left behind. It’s incumbent upon business, government, and civil society to work cooperatively to design and implement enabling environments for digital access so that all may benefit.

We’re halfway there. It’s now time to close the digital gap.

John W.H. Denton AO

Secretary General, International Chamber of Commerce (ICC)