and the Caribbean

This publication and the organization of the Eighth Ministerial Conference on the Information Society in Latin America and the Caribbean benefited from the support of the European Union Regional Facility for Development in Transition. This publication should be cited as: Economic Commission for Latin America and the Caribbean (ECLAC), A digital path for sustainable development in Latin America and the Caribbean (LC/CMSI.8/3), Santiago, 2022. Requests for permission to reproduce this work should be sent in whole or in part to the Economic Commission for Latin America and the Caribbean (ECLAC), Documents and Publications Division, [email protected].

In the two years that have passed since the Seventh Ministerial Conference on the Information Society in Latin America and the Caribbean, held in virtual format in November 2020, major transformations in the digital sphere have gathered momentum and consolidation. The Economic Commission for Latin America and the Caribbean (ECLAC) has supported countries in the region in managing rapid technological change.

The multiple dimensions of digital transformation
Value creation and competitiveness in the digital era
The growing importance of digitalization in the global economy
A new world order?
Digitalization at the heart of productive development policies

Today, 80% of people in Europe, North America and Latin America and the Caribbean are social network users, and 59% of the global population (double the percentage recorded in 2015). Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on data from Bloomberg. Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on data from Bloomberg and United Nations Industrial Development Organization (UNIDO), Manufacturing Value Added Database 2022 [online] https://www .unido.org/researchers/statistical-databases.

In contrast, the combined share of the United States and Europe fell sharply to around 17% in 2020, while Latin America and the Caribbean remained at around 5% (see figure I.5). Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on the United Nations Conference on Trade and Development (UNCTAD), Technology and Innovation Report 2021.

Digital infrastructure and connectivity in Latin America and the Caribbean

The digital and connectivity divides are increasingly decisive for development
Connectivity gaps in Latin American and Caribbean households remain factors
Connection quality affects the use of data-intensive solutions and hinders
The challenge of deploying fifth generation (5G) mobile networks
Proposals for closing access and quality gaps

Digital skills for today and tomorrow

What are digital skills?
Skills for the adoption of digital technologies
The need to strengthen actions to increase and enhance digital skills

Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on data from the International Telecommunication Union (ITU). Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on Federal Communications Commission (FCC), "Household Broadband Guide" [online] https://www.fcc.gov/consumers / guides/household-broadband-guide [accessed 10 August 2022]. Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on information available on operators' websites.

Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on data from GSMA Intelligence. Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on the Parcel House (PCH), "Reports of the directory of Internet exchange points" [online] https://www .pch.net /ixp/summary_growth_by_country [accessed 7 August 2022]. Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on Data Center Map, “Colocation Data Centers” [online] https://www.

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on World Bank, “Human Capital Index”, Databank [online] https://databank. The information gathered by the ITU provides an overview of the state of digital skills in Latin America and the Caribbean. Latin America and the Caribbean and developed economies (selected countries): main digital skills of the over-15 population, 2020.

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on information from the International Telecommunication Union (ITU). Latin America (5 countries): youth and adults with programming skills, by gender, 2019 or latest year available (Percentages). Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on the Organization for Economic Co-operation and Development (OECD), OECD AI Policy Observatory (OECD.AI) [online] https://oecd.ai/ en /.

Digital transformation in the productive sector

Innovation and entrepreneurship: the foundation of the digital economy
The digitalization of traditional sectors
Sectoral digital transformation

The future of the labour market

Uneven risk of technological substitution of labour
The potential of digitalization to generate new jobs and occupations
The new challenges of the digital transformation of jobs and occupations
Progressing towards a fair labour market and decent jobs in the future

Digital transformation of government

Digitalization and the green transition: the importance of an integrated approach

Boosting innovation at the local level: smart cities

Advances in connectivity and opportunities for the deployment of advanced digital technologies
Institutional frameworks: an enabling condition for smart cities

Latin America and the Caribbean: value of the digital industry compared to traditional industries, by segment, March 2010–March 2022. Latin America and the Caribbean: unicorn companies, number of companies and market capitalization, by industry, July 2022 (Number of companies and billions of dollars). Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on information from CBInsights.

Used before the pandemic Implemented during the pandemic Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on information from the Inter-American Development Bank (IDB). Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on information from Dataprovider.com [online] https://www.dataprovider.com/. Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on information from SimilarWeb.

Source: Economic Commission for Latin America and the Caribbean (ECLAC), Regional Observatory for Digital Development, based on the United Nations Conference on Trade and Development (UNCTAD), UNCTADstat [online] https://unctadstat.unctad .org. Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on the International Labor Organization (ILO), 2021 Labor Overview: Latin America and the Caribbean, Lima, 2021. Latin America and the Caribbean: e- United Nations Government Development Index (EGDI and 2020 (changes in minimum, average and maximum values).

Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on an e-government survey conducted by the Latin American and Caribbean Institute for Economic and Social Planning (ILPES). Currently, most countries in Latin America and the Caribbean (25 out of 29) have national digital governance strategies. Latin America and the Caribbean (29 countries): existence and status of digital projects in key areas, 2021 (Number of countries).

Kilde: Economic Commission for Latin America and the Caribbean (ECLAC), på grundlag af International Energy Agency (IEA), Data Centres and Data Transmission Networks, Paris, 2022 [online] https://www.iea.org/reports/ data-centre-og-data-transmission-netværk. Kilde: Economic Commission for Latin America and the Caribbean (ECLAC), på grundlag af Coalition for Digital Environmental Sustainability (CODES), Action Plan for a Sustainable Planet in the Digital Age, 2022 [online] https://wedocs.unep. org/bitstream/handle CODES_ActionPlan.pdf.

Tools to address the challenges of the digital age

Digital agendas as an organizing element
Emerging issues for a new generation of digital agendas

Towards greater digital integration and cooperation

Critical factors for driving regional integration in the digital age
New digital partnerships and the strengthening of regional cooperation

1 Between June and August 2022, the Economic Commission for Latin America and the Caribbean (ECLAC) conducted a survey among government representatives and agencies responsible for digital policy in the region. Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on the International Telecommunication Union (ITU), “Digital strategies and broadband plans”, Data Hub [online] https://datahub.itu.int/ date/ ?i=100053. In Latin American and Caribbean countries, the institutional framework of agencies tasked with leading the digital agenda varies widely.

Explicit budget in line with goals and targets Included in the agenda None Source: Economic Commission for Latin America and the Caribbean (ECLAC). According to the survey conducted by the Economic Commission for Latin America and the Caribbean (ECLAC), almost half of the countries indicated that they have digital agendas with intergovernmental coordination committees or commissions. Latin America and the Caribbean (14 countries): adoption of sectoral digital agendas, 2022. broadband) Education E-commerce Health Artificial.

The adoption of technologies opens up great opportunities for countries in Latin America and the Caribbean. In recent years, Latin American and Caribbean governments have taken significant steps to improve cyber security. In 2021, international trade in Latin America and the Caribbean rebounded after the collapse of 2020 due to the COVID-19 pandemic.

Latin America and the Caribbean: progress on selected issues in key economic integration mechanisms, 2022. Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on the United Nations Conference on Trade and Development (UNCTAD), Digital Economy Report 2021. Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on European Union, Shaping Europe's Digital Future, Luxembourg, 2020.

Creating enabling conditions for a digital society for all
Developing inclusive, smart digital solutions for well-being
Fostering a sustainable digital transformation in the production sector
Establishing appropriate governance for the digital age
Strengthening regional digital cooperation and integration

An adequate regulatory framework is essential to build an enabling environment in which digital transformation is accelerated through investment, start-ups and the use of digital solutions. The cross-cutting and multi-purpose nature of digital technologies also presents governance challenges in institutional settings, as responsibilities related to digital transformation and its economic and social effects belong to different levels of government. The cross-border nature of the digital economy and related actors and flows requires alignment with international progress and guidance on several topics, while taking national situations and perspectives into account.

For a sustainable digital transformation, it is therefore imperative to achieve progress in five areas of action, namely: (i) create favorable conditions for a digital society for all; (ii) developing inclusive, smart digital solutions for well-being; (iii) promote sustainable digital transformation in the manufacturing sector;. iv) establish appropriate governance for the digital age and (v) strengthen regional digital cooperation and integration. On the supply side, to reduce the gap in digital connectivity, it is imperative to identify measures that can increase coverage in areas with low commercial profitability. In this context, public innovation and the provision of proactive government services across multiple channels and devices should be encouraged to drive the development and interoperability of infrastructure, platforms, architecture and systems that will deliver digital transformation.

Data is the foundation of development in the digital age and presents many opportunities for people, businesses, organizations and government institutions. In this area, it is essential to raise awareness of the potential of digital solutions in relation to business management and performance. Capacity must therefore be built to regulate competition and create tax systems that are fit for the challenges of the digital age.

Action in this area would allow for a collective strategy to increase trade, expand the digital economy and increase competition through regulatory consistency, infrastructure integration and development of digital platforms, cross-border data flows and measures to facilitate trade. The Digital Agenda for Latin America and the Caribbean has become a key tool for capacity building and policy making, as well as facilitating better connections and coordination with the actions carried out by the various cooperation agencies and fora. A dialogue under the Digital Agenda could facilitate the identification of shared projects and challenges in areas such as cross-border trade, cybersecurity and payment systems.

Number of data centres, by country, 2022