Democratic and Economic Development in the Digital Era

In the last decade, new information and communications technologies (ICTs) have become less expensive and more accessible for people around the world. According to the International Telecommunications Union, more than 3 billion people (nearly 47 percent of all the people on earth) now use the internet. Likewise, by the end of 2016, the total number of mobile broadband subscription was expected to reach 3.6 billion. This growing global usage of ICT has made it easier for citizens and organizations to access information and share data, conduct business online, and virtually network with others. Rapid technological advances, in turn, are poised to have a profound impact on democratic and economic development around the world.

“Civic tech” is an example of how technology is improving democracies around the world. ICTs are also linked to accelerated economic growth in developing countries. A World Bank study in 2011 cited that a 10 percent increase in mobile penetration in developing countries correlated with 0.8 percent increase in economic growth. E-commerce is also becoming a powerful driver of economic growth, inclusive trade and job creation in the developing world, according to the United Nations Conference on Trade and Development (UNCTAD). Business-to-consumer (B2C) e-commerce, in particular, is quickly expanding in developing countries, especially in Asia and Africa, with the volume of international postal deliveries of small parcels having risen by 48 percent between 2011 and 2014 and the share of developing countries as senders rising from less than 30 percent to more than 40 percent.

Technology, however, is also challenging most societies. While social media played a significant role to mobilize and empower citizens during the Arab Spring, for instance, the same tools are also used by autocratic leaders to disseminate rumors or quash dissent. What is more, politically motivated internet shutdowns are costing countries over $2.4 billion a year. In this latest CIPE article, Program Officer for Global Programs at CIPE Maiko Nakagaki explores how countries can support both strengthening of democracies and growth of digital economies.

Article at a glance:

• Rapid technological advancements and internet penetration are having a profound impact on democratic and economic development around the globe.
• The full potential of e-governance and e-commerce will only be realized if businesses of all sizes can participate in the global digital economy and shape public-private dialogue on these issues.
• CIPE’s programs leverage its long-standing experience to meet the challenges and opportunities of strengthening democracies and market-based economies in the 21^st century.

Read the full article on the CIPE.org website.

Anna Kompanek is Director for Multiregional Programs at CIPE.