Connecting Digital Economies

The COVID-19 pandemic has highlighted the importance of digital technologies and in particular their use in facilitating e-commerce. While SIDS are making progress on adapting to the digital age, certain digital divides persist. During the COVID-19 pandemic where lock-downs have forced many business to close down in person operations, digital tools can support the continuity of business protecting the livelihoods dependent on them. Across SIDS, UNDP has supported digital platforms that enables e-commerce including in the Caribbean where UNDP's Accelerator Lab helped develop a digital farming and fisheries portal to connect vendors to consumers. Easing and enabling the use of digital payments presents an opportunity to improve financial inclusion and help MSMEs to expand. This recent report from World Economic Forum recommends a holistic approach to addressing market barriers and data restrictions. Focusing on four areas, the report presents recommendations for governments to promote inclusive digital economies. The report presents recommendations to tackle barriers to supplying payment services, harmonizing standards and improving interoperability, ensuring security and trust as well as developing oversight mechanisms. These recommendations can provide powerful guidance to SIDS. Through the third pillar of the SIDS offer, UNDP supports island states in facilitating digital transformation. Read the report here.