UNCTAD’s Contributions to ICT Development and Bridging the Digital Divide

In a world where billions remain offline while others surf the internet at lightning speeds, the digital gap is more than just about access to technology. It is about economic opportunity, education, healthcare, and participation in the global economy. The United Nations Conference on Trade and Development (UNCTAD) has been at the forefront of addressing this disparity, working to ensure that developing countries can harness information and communication technology (ICT) for sustainable economic growth.

Understanding the digital divide 🔗

The digital divide refers to the gap between those who have access to modern information and communication technologies and those who do not. This divide exists both between countries and within them. According to UNCTAD research, a person in a high-income country is over 22 times more likely to be an Internet user than someone in a low-income country. Even more stark is the disparity in secure Internet servers, which are over 100 times more common in high-income countries compared to low-income nations.

These statistics reveal a fundamental challenge: as the global economy becomes increasingly digital, countries without adequate ICT infrastructure and skills risk being left behind. Recent data shows that while 96% of the world’s population is covered by mobile broadband networks, only about two-thirds of the global population actually uses the Internet. In least developed countries, the situation is even more dire, with only 35% of the population online.

UNCTAD’s role in promoting ICT development 🔗

UNCTAD was established to help integrate developing countries into the world economy. Over the years, ICT development has become central to this mission. The organization recognizes that technology is not just a tool but a catalyst for economic transformation, capable of creating jobs, improving services, and opening new markets.

UNCTAD’s approach to ICT development is multifaceted, combining research, policy analysis, technical assistance, and capacity building. The organization works directly with governments, businesses, and civil society to formulate strategies that can accelerate digital adoption while addressing the unique challenges faced by developing nations.

Policy-oriented analytical work 🔗

One of UNCTAD’s core contributions is its rigorous analytical work on ICT trends and their implications for development. The organization conducts extensive research on how developing countries can best leverage technology for economic growth. This includes analyzing ICT diffusion patterns, connectivity levels, access barriers, and usage trends across countries.

Through this research, UNCTAD helps policymakers understand where their countries stand in the global digital landscape and what policy interventions might be most effective. The organization examines successful case studies from countries that have made significant progress in ICT adoption, identifying best practices that can be adapted to different contexts.

The Digital Economy Report 🔗

Perhaps UNCTAD’s most influential contribution to global understanding of ICT development is its flagship publication, originally known as the Information Economy Report and now called the Digital Economy Report. Published biennially, this comprehensive report provides in-depth analysis of digitalization’s impact on inclusive development, exploring both opportunities and challenges arising from rapid technological change.

The report serves multiple purposes. It monitors global trends in digital technology adoption, analyzes the evolving digital economy, and provides evidence-based policy recommendations to help countries navigate digital transformation. Each edition focuses on critical issues such as e-commerce, data governance, artificial intelligence, and the environmental impact of digitalization.

What makes the Digital Economy Report particularly valuable is its development perspective. Unlike many technology reports that focus primarily on advanced economies, UNCTAD’s analysis centers on the needs and circumstances of developing countries. The report examines how digital technologies can be harnessed to achieve the Sustainable Development Goals and addresses the specific barriers that prevent poorer nations from fully participating in the digital economy.

Measuring the digital divide 🔗

UNCTAD has developed sophisticated tools to measure and track ICT development across countries. The ICT Development Index and related indicators help benchmark connectivity, access, policy frameworks, and overall ICT diffusion in cross-country analysis covering numerous nations worldwide.

These measurements serve a crucial purpose: they allow countries to assess their progress objectively and identify areas requiring policy intervention. The indices also highlight disparities between regions, with Sub-Saharan Africa consistently ranking at the lower end while North America, Western Europe, and parts of Asia dominate the upper rankings.

Promoting free and open-source software 🔗

A particularly innovative aspect of UNCTAD’s work has been its advocacy for free and open-source software (FOSS) as a development tool. UNCTAD has identified FOSS as having major implications for developing countries, including reducing barriers to market entry, cutting costs, and facilitating rapid expansion of skills and technology.

The advantages of FOSS for developing countries are substantial. Unlike proprietary software that requires expensive licenses, FOSS allows users to freely run, study, modify, and redistribute software. This openness enables countries to customize technology to their specific needs, including linguistic and cultural requirements. Money that would otherwise be spent on license fees can instead be invested in training local IT professionals who can not only use but also develop and improve software.

UNCTAD has organized expert meetings on FOSS and incorporated comprehensive analysis of open-source software into its reports. The organization recognizes that FOSS can produce synergistic effects throughout the IT services industry and broader economy, leading to job creation and export opportunities. By allowing developers to look under the hood and customize software, FOSS enables solutions tailored to the technical, commercial, regulatory, and cultural particularities of diverse users and localities.

Real-world impact of FOSS adoption 🔗

UNCTAD’s promotion of FOSS has led to concrete partnerships and initiatives. The organization signed a memorandum of understanding with Brazil to support FOSS promotion, focusing on improving training and education in FOSS use for Portuguese-speaking nations. Such collaborations help extend expertise to countries that need it most, providing training materials and resources to build local capacity.

Addressing persistent challenges 🔗

Despite progress in some areas, UNCTAD’s research consistently highlights how the digital divide remains wide and, in some respects, is growing. The organization has warned that only 1% of Aid for Trade funding is currently allocated to ICT solutions, and multilateral development banks invest just 1% of their total spending on ICT projects. Even more concerning, only about 4% of this limited ICT investment goes toward policy development, which is critical for ensuring digital economies are well-regulated.

Cost remains a major barrier. In least developed countries, the annual cost of a mobile broadband subscription represents nearly 5% of per capita gross national income. For fixed broadband, the cost burden is even higher. When internet access consumes such a large portion of income, it becomes prohibitively expensive for most households and small businesses, perpetuating the digital divide.

Initiatives to bridge the gap 🔗

UNCTAD has launched several initiatives to help developing countries overcome these barriers. The eTrade for all program makes it easier for developing countries to source financial and technical assistance for digital development. Since its inception, the program has recruited nearly 30 global partners and created an online platform linking governments with organizations and donors to share resources and expertise.

These efforts recognize that closing the digital divide requires more than just infrastructure investment. It demands coordinated action on policy development, skills training, regulatory frameworks, and creating enabling environments for digital entrepreneurship. UNCTAD’s work emphasizes that governments must take active roles in areas where private providers may be discouraged due to geographic challenges or insufficient customer density.

Looking toward the future 🔗

As digital technologies continue to evolve at breakneck speed, UNCTAD’s work becomes ever more critical. The organization now examines emerging issues such as artificial intelligence, big data, platform economies, and the environmental impact of digitalization. The 2024 Digital Economy Report focuses on shaping an environmentally sustainable and inclusive digital future, recognizing that digital development must align with climate goals and sustainability principles.

UNCTAD continues to advocate for international cooperation and multilateral approaches to digital governance. The organization recognizes that fragmented approaches to data governance and digital regulation could further disadvantage developing countries. A coordinated global framework is needed to ensure that digital development benefits all nations, not just those already at the technological frontier.

What do you think? How can developing countries balance the urgent need for digital infrastructure with concerns about sustainability and digital sovereignty? What role should international organizations play in ensuring the benefits of digital technology reach the world’s poorest communities?

References

1. https://unctad.org/publication/digital-divide-report-ict-diffusion-index-2005
2. https://sdgpulse.unctad.org/ict-development/
3. https://unctad.org/publication/information-and-communication-technology-development-indices
4. https://unctad.org/topic/ecommerce-and-digital-economy/digital-economy-report
5. https://unctad.org/publication/digital-divide-ict-diffusion-index-2004
6. https://unctad.org/press-material/open-source-software-could-boost-ict-sector-developing-countries-says-unctad-report
7. https://unctad.org/meeting/expert-meeting-free-and-open-source-software-policy-and-development-implications
8. https://unctad.org/press-material/brazil-unctad-sign-agreement-free-and-open-source-software
9. https://unctad.org/news/digital-divide-impeding-development
10. https://unctad.org/publication/digital-economy-report-2024