The role of digitalization has become critical within the context of the COVID-19 pandemic. While digitalization was embedded in many domains prior to the pandemic, the latter created what is known as ‘new normal’ conditions characterised by reduced physical contact and restricted movement. These changes rapidly increased the digitalization of transactions between and among people, pushing a new scope of tradable goods and services and fostering new areas of mutual cooperation among Southern economies, both technologically and financially. As such, this session discussed how the gradually increasing share of South-South trade, and its resilience in the face of COVID-linked disruption, can inform a thorough theoretical and empirical understanding of the nature and implications of South-South trade in building back better in a post-COVID-19 world.
It was noted that the ICT based technology and digitisation has helped southern economies to boost trade and investment. The global south-south cooperation has to be increased and multilateral cooperation in knowledge sharing and partnership brokering is needed for the overall welfare and development of the global south. New opportunities for South-South cooperation can be opened up by building regional cloud-computing infrastructure, strengthening regional broadband infrastructure and promoting regional digital payments, especially in Africa.
The panelists pointed that along with transforming the substance, patterns and possibilities of international trade, the digital revolution is also accelerating trade transactions. This revolution could unlock new efficiencies and gains for businesses and consumers. Several important challenges remain in developing countries, and particularly Africa: (1) inadequate infrastructure, such as limited broadband connectivity; (2) lack of ICT skills; (3) problematic policy and regulatory issues, which represent increasing costs to digital companies, such as onerous legal liability regimes and data privacy rules; (4) limited use and adoption by small businesses of digital technologies, such as e-commerce and online payments; (5) the traditional challenges to cross-border trade, such as complicated customs procedures and expensive logistics; and 6) national digital infrastructure and regulations that are incomplete and do not interact optimally with those of other economies. These challenges are to be jointly addressed through global south-south cooperation.
Discussions also highlighted that the battleground for achieving SDGs lies in rural Africa and rural South Asia. For realisation of SDG targets, massive investments in a range of sectors over a prolonged period of time is required. Leveraging global south-south financing and involving the private sector to achieve the SDGs at a national level in many developing countries remains to be more fully harnessed. Global south should consider a new south-south development cooperation finance architecture. The panelists said that, global south-south cooperation should be developed in Research and Development, and innovation, apart from trade. The pandemic has brought an opportunity for the countries to think and and act for sustainable solutions to build a better tomorrow.
On the panel were Ms. Bineswaree Bolaky, Economic Affairs Officer, United Nations Economic Commission for Africa (UNECA; Dr. George Kararach, Lead Economist, African Development Bank (AfDB); Myriam Ramzy & Professor Chahir Zaki, Cairo University. Dr. Hany Besada, Senior Research/Programme Advisor, UNOSSC, moderated the session. Dr. Adel Abdellatif, Director a.i., UNOSSC gave the opening remarks while Dr. Xiaojun Grace Wang, Deputy Director for Programme and Operations, UNOSSC, gave the closing remarks.
Despite COVID-19 hurdles, online businesses in Zambia are clinging to their big dreams while the government strengthens the nation’s e-commerce ecosystem.
Zambia’s coronavirus lockdown shut down some more traditional businesses, but for e-commerce firms this was their chance to scale up operations.
AfriDelivery, a food delivery service with big dreams of becoming a business-to-business (B2B) e-commerce platform, recorded 100% growth in annual terms in 2020.
Afshon Wallace, the company’s founder and CEO, said it grew on two fronts – in business partners and customers – during the pandemic.
“We managed to keep delivering, from shops, restaurants, supermarkets and pharmacies while also finding more businesses to partner with. It’s been a powerful period for us, even though the growth was related to the pandemic,” Mr. Wallace said.
Meanwhile, as the tourism industry demand collapsed, another company, Voyagers Zambia – a travel agency and part of a group that offers travel, safari, insurance brokerage and car rental services – developed an online platform to distribute travel products efficiently.
The company’s director, Grant Gatchell, said tourism relief measures were limited for travel agencies, forcing the group to pivot towards car rental and transport including new products and services.
“In a way the pandemic made us reassess our offering and expand it,” Mr. Gatchell said.
Despite the opportunities, the pandemic also brought many challenges and unforeseen costs for e-commerce firms. Operational costs also increased due to measures taken to protect staff.
For Afri-Delivery, exchange rate fluctuations exacerbated the situation by driving up the price of imported motorbikes, the primary delivery vehicle in Zambia, Mr. Wallace said.
Other challenges cited by e-commerce firms include poor access to the internet and electricity, and the high cost of broadband services.
Tax breaks would go a long way to support the nation’s e-commerce firms, some owners say. They also encouraged the government to enter into more double-tax treaties to reduce the cost of imported technology goods and services.
The owners also say they receive limited government support and lack appropriate forums to exchange meaningfully with policymakers, as confirmed by a recent UNCTAD survey on COVID-19 and e-commerce.
“The pandemic has compelled businesses to accelerate digital transformation processes and reinvent their business models,” said Shamika N. Sirimanne, UNCTAD’s technology and logistics director.
“However, stronger government action and close public-private cooperation are needed to improve Zambia’s e-commerce readiness,” she said.
Turning recommendations into action
UNCTAD’s e-Trade Readiness Assessment for Zambia, conducted in 2018, recommended measures across seven key policy areas.
An UNCTAD review found that by mid-2020, Zambia had implemented about 50% of the recommendations, a huge advance for the country.
The southern African nation also saw an improvement of its ranking in UNCTAD’s B2C E-Commerce Index 2020 from 125 to 120.
The Zambian government is currently developing an e-commerce strategy using a robust, multi-stakeholder approach, and reviewing its national ICT policy.
Other noteworthy advances include:
- In the area of ICT infrastructure and services, Zambia’s continued emphasis on setting up communication towers across the country has boosted mobile network coverage to reach nearly 92% of the population.
- It revised the national energy policy in 2019 to facilitate more open access regimes, increase private sector participation, promote alternative sources of energy and cost-reflective tariffs in the pricing of services.
- On the trade facilitation and logistics front, it’s developing a national addressing system to enhance trade logistics and last mile delivery, as well as a national postal policy.
- Zambia is a signatory to the World Trade Organization’s Trade Facilitation Agreement. It uses ASYCUDA as the Customs Management System (CMS), and uses the ASYCUDA platform to build a single window environment serving importers, exporters or customs brokers.. This reduces the transit time of goods at the border and enhances trade. Recently, the country ratified the African Continental Free Trade Area Agreement.
- In terms of legal and regulatory frameworks, the government is reviewing regulations to address issues dealing with e-transaction and data protection. It has also submitted a bill on cyber security to the parliament. Zambia is also reviewing its consumer and competition laws to protect consumers in electronic transactions.
- On the payments side, the Bank of Zambia has developed a switch to support interoperability among banks and other financial services. In response to the pandemic, it took several measures to encourage the use of digital financial services and reduce processing fees for money transfer.
- ICT skills education has become compulsory in schools to develop technological capacity among the youth.
Helping beyond Zambia
Besides Zambia, UNCTAD is helping other nations in which it has conducted eTrade readiness assessments – 27 to date – to turn recommendations into action.
In January and February this year, UNCTAD and its partners brought together over 270 public and private sector stakeholders from more than 20 countries to discuss how best to fast-track the implementation of the recommendations.
The participants, who included eTrade for all partners, shared experiences and explored opportunities to foster collaboration.
Supported financially by Germany and the Netherlands, UNCTAD is working with the eTrade for all partners and UN resident coordinators to ensure e-commerce is mainstreamed into national development plans and development partners’ cooperation frameworks.
In years to come, we will look back at 2020 as the moment that changed everything. Nowhere else has unprecedented and unforeseen growth occurred as in the digital and e-commerce sectors, which have boomed amid the COVID-19 crisis.
Amid slowing economic activity, COVID-19 has led to a surge in e-commerce and accelerated digital transformation.
As lockdowns became the new normal, businesses and consumers increasingly “went digital”, providing and purchasing more goods and services online, raising e-commerce’s share of global retail trade from 14% in 2019 to about 17% in 2020.
These and other findings are showcased in a new report, COVID-19 and E-Commerce: A Global Review, by UNCTAD and eTrade for all partners, reflecting on the powerful global and regional industry transformations recorded throughout 2020.
At an event to release the report, UN General Assembly President Volkan Bozkir said the trend towards e-commerce is likely to continue throughout the recovery from COVID-19.
“We need to recognize the challenges and take steps to support governments and citizens as they continue to embrace new ways of working,” he said.
UNCTAD Acting Secretary-General Isabelle Durant said: “Businesses and consumers that were able to ‘go digital’ have helped mitigate the economic downturn caused by the pandemic.”
“But they have also sped up a digital transition that will have lasting impacts on our societies and daily lives – for which not everyone is prepared,” she said, adding: “Developing countries should not only be consumers but also active players and thus producers of the digital economy.”
Some benefit, others fall behind
The findings show the strong uptake of e-commerce across regions, with consumers in emerging economies making the greatest shift to online shopping.
Latin America’s online marketplace Mercado Libre, for example, sold twice as many items per day in the second quarter of 2020 compared with the same period the previous year. And African e-commerce platform Jumia reported a 50% jump in transactions during the first six months of 2020.
China’s online share of retail sales rose from 19.4% to 24.6% between August 2019 and August 2020. In Kazakhstan, the online share of retail sales increased from 5% in 2019 to 9.4% in 2020.
Thailand saw downloads of shopping apps jump 60% in just one week during March 2020.
The trend towards e-commerce uptake seen in 2020 is likely to be sustained during recovery, the report says.
But in many of the world’s least developed countries, consumers and businesses haven’t capitalized on pandemic-induced e-commerce opportunities due to persistent barriers.
These include costly broadband services, overreliance on cash, lack of consumers’ trust, poor digital skills among the population and governments’ limited attention to e-commerce.
“Countries that harness the potential of e-commerce will be better placed to benefit from global markets for their goods and services in this digitalizing economy, while those that fail to do so risk falling behind even further,” said Shamika N. Sirimanne, UNCTAD’s technology and logistics director.
One of the challenges, the report says, is that the pandemic has mostly benefited the world’s leading digital platforms.
Many solutions being used for e-commerce, teleworking and cloud computing are provided by a relatively small number of large companies, based mainly in China and the United States.
Smaller players may have gained a deeper foothold, but their market presence is still dwarfed by the digital giants, which could entrench their predominant role during the pandemic.
“The risk is that the huge digital divides that already existed between and within countries will only worsen in the wake of the pandemic,” said Torbjörn Fredriksson, UNCTAD’s digital economy head.
“The result will be even deeper inequalities that would threaten to derail progress on the UN Sustainable Development Goals,” he added.
Most governments prioritized short-term responses to the pandemic, but some have also begun to address longer-term strategic requirements for recovery. Several governments in developing countries have intervened to protect businesses and individual incomes.
In Latin America and the Caribbean, for example, Costa Rica’s government initiated a platform for businesses without an online presence, and a smartphone app and texting service to facilitate trade among producers of agricultural, meat and fish products.
In Africa, Senegal ran an information, education and awareness campaign on the benefits of e-commerce across all segments of the population.
In Asia, Indonesia launched a capacity-building programme to expedite digitization and digitalization among micro, small, and medium enterprises.
Action points for inclusive e-commerce
The report maps out actions that should be taken by three stakeholder groups to ensure more inclusive benefits from e-commerce.
It says governments need to prioritize national digital readiness so that more local businesses can become producers in the digital economy, not just consumers.
According to the report, building an enabling e-commerce ecosystem requires changes in public policy and business practices to improve the digital and trading infrastructure, facilitate digital payments and establish appropriate legal and regulatory frameworks for online transactions and security.
“The approach must be holistic. Policies should not be made in silos,” said Ms. Sirimanne.
Then, to capture value from digital trade, digital entrepreneurship must become a central focus.
This requires faster digitalization for smaller businesses and more attention to digital entrepreneurship, including reskilling, especially of women.
Countries also need better capabilities to capture and harness data, and stronger regulatory frameworks for creating and capturing value in the digital economy, the report says.
Lastly, the international community needs to find new, bold and smart ways to work with governments and the private sector to leverage these opportunities.
“The digital divide, which was real long before COVID-19, is a challenge which can be removed through our collective efforts and international support,” Mr. Bozkir added. “E-commerce offers immense potential across the SDGs. Efforts, therefore, must be made to harness this rapidly emerging tool.”
To support UN-wide work on the topic, Mr. Bozkir announced a one-day high-level thematic debate on digital cooperation and connectivity on 27 April 2021.
This will provide a platform for high-level political statements of intent and support, and frank exchanges among UN entities, technology leaders, constituents and stakeholders, to build momentum and mobilize the international community to strengthen existing multi-stakeholder initiatives and partnerships, and support the creation of additional partnerships to accelerate implementation..
Charting the future of e-commerce
Better dialogue and collaboration are needed to identify new pathways for the digital economy.
The UNCTAD-led eTrade for all initiative, currently funded by the Netherlands, Germany and Estonia, is one such platform for doing so.
Over the past four years, the initiative has served as a global helpdesk for developing countries to bridge the knowledge gap on e-commerce information and resources, and catalyse partnership among its partners.
Since the outbreak of the pandemic, more than 30 eTrade for all partners have worked together to raise awareness on the e-commerce opportunities and risks emerging during the crisis.
They have also identified ways in which businesses in developing and least developed countries could overcome the challenges.
Members continued discussions on the role of intellectual property amid a pandemic and how the WTO and other stakeholders can engage to ensure secure and rapid access to vaccines and other medical products needed to combat COVID-19. At a meeting of the Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 10-11 March 2021, members also considered the continued exemption of least-developed countries (LDCs) from TRIPS obligations and broadened their debate on the relation between IP and innovation to cover small business and green technologies.
Continuing their discussions held since October 2020, WTO members addressed the proposal (IP/C/W/669) submitted by South Africa and India calling for a waiver for all members of certain provisions of the TRIPS Agreement in relation to the “prevention, containment or treatment” of COVID-19. According to proponents, the objective is to avoid barriers to the timely access to affordable medical products, including vaccines and medicines, and to the scaling-up of manufacturing and supply of essential medical products.
The waiver would cover obligations in four sections of the TRIPS Agreement — Section 1 on copyright and related rights, Section 4 on industrial designs, Section 5 on patents and Section 7 on the protection of undisclosed information. It would last for a specific number of years, to be agreed by the General Council, and until widespread vaccination is in place globally and the majority of the world’s population is immune. Members would review the waiver annually until termination.
Since its submission, the proposal has been co-sponsored by Kenya, Eswatini, Mozambique, Pakistan, Bolivia, Venezuela, Mongolia, Zimbabwe, Egypt, the African Group and the LDCs Group.
At the previous meeting of the Council on 23 February, members agreed on an oral status report to the General Council reflecting the state of discussions and lack of consensus on the waiver request. The report indicated that the TRIPS Council had not yet completed its consideration of the waiver request and would therefore continue discussions and report back to the General Council.
Members reiterated their common goal of providing timely and secure access to high-quality, safe, efficacious and affordable vaccines and medicines for all, but continued to diverge on what role IP played in achieving that goal. Proponents argued that existing vaccine manufacturing capacities in the developing world remained unutilized because of IP barriers, and hence insufficient amounts of vaccines were being produced to end the pandemic. In their view, the waiver proposal represents an open and expedited global solution to allow uninterrupted collaboration in the production and supply of health products and technologies required for an effective COVID-19 response.
Citing the role of IP as an incentive for innovation to fight the current and future pandemics, and as underpinning the licensing, manufacturing, procurement and distribution of COVID-19 diagnostics, therapeutics and vaccines, other delegations welcomed further engagement on the questions they had raised with regards to the proposal. They urged an evidence-based discussion on any concrete examples where IP would pose a barrier to manufacturing and access to vaccines that could not be addressed by existing TRIPS flexibilities.
The outgoing chair of the TRIPS Council, Ambassador Xolelwa Mlumbi-Peter of South Africa, said swift action is urgently required to help scale up COVID-19 vaccine production and distribution. She called on members to shift gears and move towards a solution-oriented discussion.
The next regular TRIPS Council meeting is scheduled for 8-9 June, but members agreed to consider additional meetings in April in order to assess potential progress on the IP waiver discussion.
LDC transition period
Members also discussed a request by the LDCs Group (IP/C/W/668) to once again extend the transition period for LDC members under Article 66.1 of the TRIPS Agreement. Under this provision, LDCs are given an extended transition period to apply provisions of the TRIPS Agreement in recognition of their special requirements, their economic, financial and administrative constraints, and their need for flexibility in order to create a viable technological base. The transition period has been extended twice and is currently set to expire on 1 July 2021.
Delegations were in principle favourable to the extension. Some members expressed full support for the extension as requested (for as long as the member remains in the category of LDCs and for a period of 12 years from the date of entry into force of a decision by the United Nations General Assembly to exclude the member from that category). Other members expressed a preference for extending the period for a limited number of years, while others had additional questions on how the request for a transition period for countries that have graduated from LDC status related to Article 66.1.
MSMEs and green technologies
Continuing the theme of IP and innovation regularly featuring on the TRIPS Council agenda since 2012, the Friends of IP and Innovation (Australia, Canada, Chile, the European Union, Japan, Singapore, Switzerland, Chinese Taipei, the United Kingdom and the United States) proposed to discuss the topic of “Making MSMEs competitive in green tech” (IP/C/W/675).
The submission presents intellectual property rights (IPR) approaches for making micro-, small and medium-sized enterprises (MSMEs) competitive in green technologies and makes the case for MSMEs playing a pivotal role in ongoing technology change towards greater sustainability. Co-sponsors underlined that MSMEs account for more than 50 per cent of employment and can constitute core engines of innovation and growth. Therefore, the role of IPRs to enhance their competitiveness should be looked at closely.
There are various ways in which MSMEs can make use of the IP system to become more competitive in the field of green technologies. These range from taking advantage of international and regional IP application and registration mechanisms and using international platforms for sharing information and opportunities for partnership and collaboration to national solutions such as fast-track patenting or even on-demand support facilitated by IP offices. Through these efforts, progress towards more sustainable technologies can be accelerated, in turn fostering innovation and providing opportunities for cooperation in the green technology sector, proponents said.
LDCs and developing countries agreed on the importance of discussing this issue as access to green technology would contribute to boosting their competitiveness while respecting environmental imperatives. However, they highlighted the lack of a viable technological base, particularly in LDCs, and stressed the need to benefit from more effective technology transfer. This would not only serve to increase their levels of production but also to provide them with technology that enables the sustainable and environmentally friendly development of new products, they said.
The meeting of the TRIPS Council was attended by a group of capital-based experts and delegates from LDC members and observers who participated in the Workshop on the Implementation of Article 66.2 of the TRIPS Agreement on 2, 4 and 5 March organized by the WTO Secretariat. Article 66.2 calls on developed countries to provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to LDCs in order to enable them to create a sound and viable technological base.
On the initiation of non-violation and situation complaints under the TRIPS Agreement, and following the General Council decision of 10 December 2019 to extend the related moratorium until the 12th Ministerial Conference (MC12), members discussed whether elements of agreement could be identified in order to advance discussion towards a concrete outcome. This question concerns the longstanding discussion of whether — and under what circumstances — members should have the right to bring disputes to the WTO if they consider that another member’s action or a particular situation has deprived them of an expected benefit under the TRIPS Agreement, even if no specific TRIPS obligation has been violated.
The chair noted that there are now only eight months left before the Council is due to report again on this issue and called for discussions to focus on concrete suggestions for the Council’s recommendation to MC12, scheduled to take place the week of 29 November 2021 in Geneva.
The chair reported that, since the last TRIPS Council regular meeting in October 2020, the Gambia had deposited on 20 October 2020 its instrument of acceptance for the protocol amending the TRIPS Agreement. Also, on 1 January 2021, the United Kingdom confirmed its continued acceptance of the protocol.
To date, 132 members have accepted the TRIPS Amendment, which entered into force on 23 January 2017, securing for developing countries a legal pathway to access affordable medicines under WTO rules. The chair encouraged the remaining 32 members to expedite action in good time before the current deadline for acceptance, which was extended until 31 December 2021.
Members elected Dagfinn Sørli, Ambassador of Norway, as TRIPS Council chair for the coming year.
Displaced people face many challenges when integrating into the labor market in their host communities. They are also more likely than the host population to be employed in sectors that are highly impacted by the COVID-19 pandemic, such as manufacturing, accommodation, and food services. And they are mostly employed informally, and thus have no job security or access to social safety nets during the COVID-19 related economic downturn.
So what can be done to help displaced people during this difficult time?
One solution is turning to digital technology. Digital technology can support labor market integration of the displaced during the pandemic, while taking into account the lessons learned on how jobs interventions need to be adapted for that population. Here are three examples.
1. Digital cash transfers and virtual public work programs
Due to the often unplanned nature of their flight, many displaced people lose access to their assets such as land and livestock without being able to sell them beforehand. They must also pay for their journey to safety, and have no income for a prolonged period. The pandemic puts them at additional risk of further depleting any remaining assets, which can hamper self-employment and entrepreneurship. Liquidity constraints can also prevent the displaced from searching for (better) jobs and force them to work under hazardous conditions.
Cash transfers, labor-intensive public works, or cash for work can help. To allow for implementation during lockdowns and social distancing, digital financial transfers like mobile money can be used to transfer the money to beneficiaries. In addition, compared to handing out cash, this has the added value of increasing financial inclusion. The work undertaken for cash for work or public work programs can be adapted to COVID-19 not only by taking social distancing into account within existing activities but also by developing virtual activities (such as digitization of physical assets or printed documents). Remote work offers opportunities for displaced people also beyond public works.
2. Virtual training and psychosocial support
Displaced people — for example farmers forced to move to urban areas — often lack skills or certifications required in the new labor market. Training can help them acquire the skills needed in the host labor market.
During the pandemic, training interventions can be implemented virtually if infrastructure allows. The content of the training should be adapted to actual economic opportunities where displaced people live and the sectors they are allowed to work in. Training should also be combined with further support to address the multiple obstacles the displaced face. Early evidence confirms that IT and language training (adapted to different levels and geared toward labor market entry) are particularly promising.
In addition, some of the displaced may benefit from psychosocial support to increase their employability and overall well-being. Different forms of therapy have had significant positive effects on the mental well-being of displaced populations, and they can be implemented in environments with few professional counsellors and psychotherapists, for example through lay counsellors with limited training. Emerging evidence shows that web-based psychosocial interventions can be effective, facilitating their implementation during the pandemic and beyond.
3. Digital platforms for networking
Displaced populations often lack social networks in host countries that could help them integrate into the labor market. Also, interaction and exchange between host and displaced population are particularly important to foster social cohesion and reduce social tensions. Restrictions due to the pandemic make it even more difficult to maintain and build up such networks and interactions. Virtual formats and platforms can be explored for community meetings, mutual support, and joint social activities to promote exchange and help displaced people build up networks during these times. Establishing contacts as well as joint groups between the displaced and their hosts on social messenger services and social media can promote joint flow of information and communication.
Providing access to digital infrastructure is key
To be able to implement these digital solutions, the displaced and their hosts need access to the internet. There are several barriers, including availability of the digital infrastructure, affordability of services, and access to electricity to charge devices. Plus, refugees often lack the identity documents needed to access mobile services, including mobile money. While most displaced people in urban areas have the opportunity to access mobile coverage, those living in rural (often camp) settings are more likely to have no connectivity. Notably elderly and illiterate populations might also need additional support when using digital tools for the first time.
When COVID-19 shut primary schools throughout Pakistan early in 2020, entrepreneur Maheen Adamjee knew she had to act quickly to save her business.
Dot & Line provided in-home tutoring to Pakistani schoolchildren with a network of women micro-franchisees who used their homes as teaching centers.
A national lockdown to contain the disease halted all in-person tutoring sessions. So in just two weeks, Dot & Line rewrote its business plan, created digital tools, and launched training classes to help its teachers shift to online tutoring sessions. The firm transformed itself into a digital company nearly overnight.
One year later, Dot & Line has expanded into several countries and is growing briskly, driven by demand from the Pakistan diaspora. The company’s new challenge: adding enough teachers to keep up with all the new students.
Adamjee is a great example of a start-up businesswoman responding to COVID-19 with agility, creativity, and resilience. #OneSouthAsia Conversation, a series of online events on regional issues.Adamjee and two other women entrepreneurs described their experiences and offered practical tips at a recent
Even before the pandemic, barely 18% of South Asian businesses were principally owned by women – the lowest rate among global regions
Women entrepreneurs often pioneer new products and services that expand opportunities for others. But even before the pandemic, barely 18% of South Asian businesses were principally owned by women – the lowest rate among global regions. Legal, cultural, and financial barriers discourage women from starting a business.
“Within South Asia, trading is very difficult because of nontrade barriers and rules that change overnight. People prefer to trade outside the region than in it,” said Ayanthi Gurusinghe, a woman entrepreneur in Sri Lanka.
She founded a company, Cord360.com, a B2B platform that connects small buyers and sellers for products ranging from dried fruits to pharmaceuticals. Cord360.com offers training to help women entrepreneurs learn about international markets. It has been especially active in encouraging women to trade products across borders in Sri Lanka, India, and Pakistan.
“In terms of the demographics, a lot of the culture and habits are the same when you look at India, or Bangladesh, or Afghanistan,” Adamjee said. “The internet blurs those borders and allows for professional relationships that could not take place previously.”
Watch the panel discussion: Celebrating the Champions for Change in South Asia: Gender Equality in Leadership:
Sairee Chahal, founded her company, SHEROES, in 2014 as an online community for women. It now has 22 million members in India, Bangladesh, and other countries – up from nearly 16 million before the pandemic. The site offers career tips, job leads, training, legal advice, and a free counseling helpline. It also is an online platform helping microentrepreneurs sell their goods.
In India alone, Chahal said. Many will use digital platforms or e-commerce. “That would not be possible if 300 million [Indian] women hadn’t adopted the internet in the past three or four years,” she said.
However,. More women entrepreneurs could “have a huge impact on GDP” but they aren’t getting the kind of policy support needed, Chahal said.
The pandemic has propelled women entrepreneurs into the digital economy, allowing them to reach across national boundaries to establish partnerships and target new customers
Our discussion identified several actions to support women-led businesses:
- Targeted government support for women businesses, including reforming discriminatory laws and policies, boosting the creation of e-commerce platforms, and encouraging training and mentoring. Policymakers should monitor and measure the impact.
- Women entrepreneurs organize regionally.
- Women’s participation in government.
- Target lines of credit and other forms of finance to women-owned businesses.
- School textbooks showing women in a variety of roles.
International patent applications via WIPO in 2020 continued to grow amid the COVID-19 pandemic’s vast human and economic toll, with leading users China and the U.S. each marking annual growth in filings.
International patent applications filed via WIPO’s Patent Cooperation Treaty (PCT), which is one of the widely used metrics for measuring innovative activity, grew by 4% in 2020 to reach 275,900 applications – the highest number ever, despite an estimated drop in global GDP of 3.5%.
China (68,720 applications, +16.1% year-on-year growth) remained the largest user of WIPO’s PCT System, followed by the U.S. (59,230 applications, +3%), Japan (50,520 applications, -4.1%), the Republic of Korea (20,060 applications, +5.2%) and Germany (18,643 applications, -3.7%)
(Annex 1 ).
Beyond the top 10, other countries that saw strong growth include Saudi Arabia (956 applications, +73.2%), Malaysia (255 applications, +26.2%), Chile (262 applications, +17.0%), Singapore (1,278 applications, +14.9%) and Brazil (697 applications, +8.4%). Longer term trends point to the globalization of innovation, with Asia accounting for 53.7% percent of all PCT filing activity, versus 35.7% 10 years ago.
Use of the international trademark system dipped, but only slightly. This was expected given that trademarks tend to represent the introduction of new goods and services – both of which slowed as a result of the global pandemic. International trademark applications via WIPO’s Madrid System for the International Registration of Marks decreased by 0.6% to 63,800 in 2020 – the first decline since the global financial crisis of 2008-2009.
Press conference: Video on YouTube
The economic fallout from the pandemic hit demand for the protection of industrial designs via the Hague System for the International Registration of Industrial Designs. Demand fell by 15% in 2020 to 18,580 designs – the first decline since 2006.
Worldwide demand for IP rights, which help innovators and enterprises take their ideas to the market, has historically and broadly tracked global economic performance. However, growth over the past decade in the use of WIPO’s global IP services, most notably the PCT, has outperformed global GDP growth.
Charts with the latest key international IP data.
International patent system (Patent Cooperation Treaty – PCT)
Top PCT filers
For the fourth consecutive year, China-based telecoms giant Huawei Technologies, with 5,464 published PCT applications, was the top filer in 2020. It was followed by Samsung Electronics of the Republic of Korea (3,093), Mitsubishi Electric Corp. of Japan (2,810), LG Electronics Inc. of the Republic of Korea (2,759) and Qualcomm Inc. of the U.S. (2,173) (Annex 2 ). Among the top 10 filers, LG Electronics reported the fastest growth (+67.6%) in the number of published applications in 2020 and as a result it moved up from 10th position in 2019 to 4th position in 2020.
The University of California with 559 published applications continues to head the list of top applicants among educational institutions in 2020. Massachusetts Institute of Technology (269) ranked second, followed by Shenzhen University (252), Tsinghua University (231) and Zhejiang University (209) (Annex 3 ). The top 10-university list comprises five universities from China, four from the U.S., and one from Japan.
Among fields of technology, computer technology (9.2% of total) accounted for the largest share of published PCT applications, followed by digital communication (8.3%), medical technology (6.6%), electrical machinery (6.6%), and measurement (4.8%) (Annex 4 ).
Six of the top 10 technologies recorded double-digit growth in 2020, with audio-visual technology reporting the fastest rate of growth – +29.5%, compared to 8.7% the previous year – followed by digital communication (+15.8%), computer technology (+13.2%), measurement (+10.9%) semiconductors (+10.1%) and pharmaceuticals (+10%).
International trademark system (Madrid System)
U.S.-based applicants (10,005) filed the largest number of international trademark applications using WIPO’s Madrid System in 2020, followed by those located in Germany (7,334), China (7,075), France (3,716) and the U.K. (3,679) (Annex 5 ).
Among the top ten origins, China (+16.4%) is the only country to record double-digit growth in 2020. The U.K. (+5.1%) and Italy (+3.6%) also reported notable growth. Outside the top ten origins, the Republic of Korea (+13.4%), Canada (+94.4%), and Denmark (11.5%) saw the strongest growth. In contrast, France (-16.3%) and Turkey (-15.4%) saw sharp declines.
Top Madrid filers
Novartis AG of Switzerland with 233 Madrid applications heads the list of top filers in 2020. WIPO received 104 more applications from Novartis in 2020 than in 2019, elevating it from 3rd position to the top spot. Novartis AG was followed by Huawei Technologies of China (197), Shiseido Company of Japan (130), ADP Gauselmann of Germany (123) and L’Oréal of France (115). L’Oréal – the top filer in 2019 – moved down to 5th position as it filed 78 fewer applications in 2020 (Annex 6 ).
The most-specified class in international applications received by WIPO was Class 9 (computer hardware and software and other electrical or electronic apparatus, etc.) that accounted for 10.6% of the 2020 total. It was followed by Class 35 (services for business; 8.1%) and Class 42 (technological services; 7.1%). Among the top 10 classes, Class 10 (surgical, medical, dental and veterinary apparatus, etc.; +21.1%) and Class 5 (pharmaceuticals and other preparations for medical purposes; +9.2%) saw the fastest growth.
International design system (Hague System)
Despite a substantial decrease, Germany remained the largest user of the international design system, with 3,666 designs (Annex 7 ). The U.S. (2,211 designs) moved up from 6th position to become the second largest user of the Hague System in 2020. Switzerland (1,944 designs), the Republic of Korea (1,669) and Italy (1,231) are ranked third, fourth and fifth, respectively. Among the top ten origins, the U.S. (+62.7%), Turkey (+34.7%) and China (+22.7%) are the only three countries to record growth in 2020.
Top Hague filers
For the fourth consecutive year, Samsung Electronics of the Republic of Korea with 859 designs in published applications headed the list of top filers, followed by Procter & Gamble of the U.S. (623), Fonkel Meubelmarketing of the Netherlands (569), Volkswagen of Germany (524) and Beijing Xiaomi Mobile Software of China (516). For the first time a company from China is among the top five applicants. Lampenwelt GMBH of Germany –ranked tenth with 276 designs – is a new user of the Hague System (Annex 8 ).
Designs related to means of transport (10.1%) accounted for the largest share of total designs in 2020; followed by recording and communication equipment (8.8%); packages and containers (8.4%); furnishing (7.4%); and lighting apparatus (6.9%). Among the top 10 classes, pharmaceutical and cosmetic products (+42.6%) saw sizeable growth in 2020.
Domain name disputes
Trademark owners in 2020 filed a record 4,204 cases under the Uniform Domain Name Dispute Resolution Policy (UDRP) with WIPO’s Arbitration and Mediation Center, moving past the 50,000 mark since the start of this WIPO service (Annex 9 ). It was also a record year for WIPO Mediation and Arbitration cases involving patents, trademarks, digital copyright, and other types of disputes involving technology.
With a greater number of people spending more time online during the COVID-19 pandemic, trademark owners are taking up this WIPO service not only to reinforce their online presence, but also to offer authentic content and trusted sales outlets to Internet users across varied business areas (Annex 10 ). Representing 75% of WIPO’s generic Top-Level Domain (gTLD) caseload, .COM demonstrated its continuing primacy.
WIPO UDRP cases in 2020 involved parties from 127 countries, up from 122 in 2019. The U.S., with 1,359 cases filed, France (786), the U.K. (411), Switzerland (256) and Germany (235) were the top five filing countries (Annex 11 ).
WIPO also offers dispute resolution services for over 75 country code Top-Level Domains, such as .CN (China), .EU (European Union) and .MX (Mexico).
Outside the area of domain name disputes, the WIPO Center in 2020 received 77 mediation and arbitration cases in different areas of IP, up 24% from the previous year’s caseload (Annex 12 ). These WIPO procedures allow parties from around the world to resolve their cases without having to go to court. Patent-related disputes remained the most common in WIPO’s caseload, followed by trademark, information and communications technology (ICT), and copyright disputes
(Annex 13 ).
WCO events went digital in 2020, including the WCO annual conference dedicated to technology, recently rebranded as the WCO TECH-CON. The theme of the 2020 edition was dictated by the circumstances, and the 50 speakers were asked to share their experience of how technology had helped them manage the new constraints and challenges created by the COVID-19 pandemic. Below are just some of the ideas gleaned from the event which attracted 1300 participants from 142 countries.
ACCELERATING THE USE OF TECHNOLOGY
Representing Customs, the private sector, international organizations and academia, all speakers agreed that the use of technology had accelerated since the beginning of the crisis, and that a number of lessons could be drawn from the previous few months. They echoed the conclusion of consulting firm McKinsey & Company, along with many others, who noted that “responses to COVID-19 have speeded up the adoption of digital technology by several years and many of these changes could be here for the long haul”.
The pandemic has also provided an opportunity to internalize the idea of digitization, which was always an option, but not necessarily a priority, for governments and their agencies. Customs administrations have used the opportunity to advance digitalization initiatives that were already underway, as well as to instigate new technology projects to eliminate the use of hard copies and cash, for example. It has proven to be a very transformative period. In some instances, governments have made major changes and the private sector has struggled to keep up.
KEEPING OFFICERS AND CLIENTS SAFE
The pandemic has called for solutions to ensure that officers not working remotely, and the people they come in contact with, such as drivers or declarants, do not spread the virus. These solutions include the use of infrared fever measuring equipment, protective shields, and safe passage booths. Some administrations have devised a regional driver tracking system, allowing for COVID-19 test results performed on lorry drivers to be sent in advance of the arrival of the driver in the neighbouring country. Others have turned to remote monitoring tools such as drones, cameras and other devices to enable their officers to reduce physical movements and contact. It was also felt that there was an opportunity to leverage technology for the benefit of Authorized Economic Operators (AEOs), including for validating and re-validating their status in a remote manner, and supporting implementation of Mutual Recognition Agreements/Arrangements (MRAs), thus facilitating cross-border trade.
ADVANCE ELECTRONIC INFORMATION IS KEY TO EFFICIENT CLEARANCE
Systems enabling the reception and sharing of pre-arrival information are considered to be the main tools enabling Customs and other agencies to speed up clearance and provide priority passage for critical consignments.
The event highlighted the fact that small and medium-sized enterprises (SMEs) often do not provide Customs with advance electronic information. In some countries, it may be necessary to help SMEs identify ways of submitting information in advance and thus benefitting from faster clearance.
TECHNOLOGY IS AN INTERAGENCY COOPERATION ENABLER
The event recognized the role of single window solutions in facilitating interagency cooperation during the clearance process. It also pointed to the benefits of centralizing and sharing inspection data on a single platform.
ACCEPTING ELECTRONIC DOCUMENTS HAS BEEN A GAME CHANGER AND SHOULD CONTINUE
Many administrations decided to allow the submission of electronic certificates and permits during the pandemic, rather than the paper form. Some participants pointed out that scanned copies could be challenging to process, as optical character recognition (OCR) or Artificial Intelligence technology was needed to extract digital data. Private sector representatives expressed the need for Customs to continue maintaining such practices even after the crisis, and to work towards the digitization of all trade-related documents. The need to build a proper legal framework and develop international standards was also mentioned.
MANAGING CROSS-BORDER E-COMMERCE TRANSACTIONS
The biggest challenges were encountered with data availability to Customs and data quality, especially with the tremendous growth of e-commerce transactions where there are new and not yet clearly identified trading patterns requiring higher sophistication and accuracy of data analytics techniques for improved risk management.
IMPORTANCE OF DATA STANDARDS STRESSED ONCE AGAIN
Commercial operators should not be asked to use specific data formats and requirements every time they interacted with a public body, as this generates additional compliance costs. Participants were reminded that, to respond to this issue, the WCO Data Model (DM) had been developed as a compilation of clearly structured, harmonized, standardized and reusable sets of data definitions and electronic messages. It was intended to meet the operational and legal requirements of cross-border regulatory agencies, including Customs, which were responsible for border management. Devised jointly by Customs and the private sector, the WCO Data Model is critical for successful data exchange at both the national, bilateral and multilateral levels.
BLOCKCHAIN PROMISING BUT PACE OF ADOPTION SLOW
One of the prevailing topics of the WCO TECH-CON was the deployment of blockchain technology. It was widely agreed that this technology is very useful and could help give life to the concept of a data pipeline, which would contribute to improved risk analyses and better controls, and ultimately greater trade facilitation. However, as one speaker noted, while big carriers are investing in and backing blockchain solutions for electronic documents of title and electronic trade finance, there is a need for public blockchain platforms to onboard the small and medium stakeholders. Despite the opportunities it promised, only a limited number of Customs administrations have embarked on pilots, and even fewer on full deployment of platforms based on the technology. Harmonized regulatory frameworks and neutral blockchains were seen as conditions for the uptake of the technology.
CONNECTING SYSTEMS SHOULD BE A PRIORITY
The digital format of the information collected from various IT systems can differ. Regulatory bodies such as Customs authorities could theoretically have access to data-rich ecosystems managed by public and private entities, and be able to record the journey of a shipment along the supply chain. However, this goldmine of information is not as valuable if there is no standardized and up-to-date means for Customs to collect and interpret this data.
SHIFT TO TELEWORKING
Most administrations adapted quickly to the new circumstances, with the staff starting to work from home. Members had to increase their bandwidth and reached out to providers for support in obtaining collaborative on-line tools. Clear benefits such as reduced commuting time, in many cases more efficiency, increased possibilities for participation in on-line trainings and events were observed. However, there was agreement that inability of inspection staff to telework, potential security breaches, poor internet connection and lack of opportunities for informal discussions and networking, was a clear disadvantage, especially for officers joining the administrations for the first time.
NEED TO KEEP AN OPEN MIND
Flexibility was a word that was heard a lot during the three days of the conference: when discussing the platforms developed to collect and analyse data, when reviewing processes and workflows in the event of incidents, and when looking at possible measures to respond to a constraint, such as the need to limit physical contacts while enabling safe movements of goods and the people moving them.
The speakers supported a strong role for the WCO in continuing to be a platform for Customs multilateral cooperation and sharing of experiences on digitization. There was also an expectation that Customs should take the lead in promoting digitization not only with public entities, but also with private sector stakeholders participating in international trade.
Technology makes it possible to recalibrate procedures, training, and deployment of staff, among other things. With this in mind, the WCO Secretariat will continue to stimulate the exchange of information on the various technologies used to manage the flows of goods, people and conveyances across borders, and on progress made towards a digital supply chain. Most articles in this edition of the WCO Magazine relate to the implementation of technology, another testimony of the importance of technology for the Customs and trade community.
 The conference was held from 11 to 13 November 2020
E-commerce is one of the five priorities of the Pacific Aid-for-Trade Strategy 2020-2025, noting its potential to narrow distances and trade costs, and to promote diversification of Pacific economies.
In this COVID-19 era, digital trade has become even more important, given its ability to sustain economic activity whilst preserving social distancing. Even when lock-downs and border closures will be lifted, new online buying and selling habits are due to stay and it is therefore essential that Pacific businesses are well-equipped to face this new digital era to avoid the risk of falling behind.
It is against this background that Forum Islands Countries, development agencies, and donor partners joined forces to improve digital trade readiness in the Pacific. At a 2017 PIFS-UNCTAD-WTO Pacific E-commerce workshop, partners concurred on the need to lay solid analytical and policy foundations as a precondition to undertake truly transformative actions.
To support this determination, PIFS and its partners have developed national and regional E-commerce Assessments, and are in the process of developing a regional E-commerce Strategy and Roadmap which will define the Pacific consensus consensus on priority regional actions to promote digital trade readiness. Focus will then shift on implementation.
A Concept Note of the E-commerce Initiative is available here.
|Cook Islands||Papua New Guinea (2020)|
|Federated States of Micronesia (2020)||Republic of Marshall Islands|
|Fiji (2020)||Samoa (2017)|
|Kiribati (2019)||Solomon Islands (2018)|
|Nauru (2021)||Tonga (2019)|
|Niue (2020)||Tuvalu (2019)|
|Regional Assessments and Strategies|
|Pacific E-commerce Assessment (2020)||Pacific E-commerce Strategy and Roadmap (2021)|
Changes brought about by the expanding digital economy could help persons with disabilities gain more equal access to the world of work, or they could create greater barriers. A new ILO report proposes actions to ensure that the post-COVID world of work is disability-inclusive.
Advances in the digital economy, significantly accelerated by the COVID-19 pandemic, are creating unprecedented opportunities to build a more inclusive world of work for the more than 1 billion people with disabilities globally, a new report from the International Labour Organization (ILO) says.
However, digital barriers also threaten to aggravate existing inequalities and exclusion, unless they are countered with effective and targeted initiatives, as highlighted by the study.
The report, An inclusive digital economy for people with disabilities , was prepared by the ILO Global Business and Disability Network (GBDN) and the Spanish disability NGO Fundación ONCE. It looks at the effects of the digital revolution on the creation of new jobs, changes to existing roles and work models, as well as online recruitment processes. It also highlights key areas for action by different groups of stakeholders, including the digital industry, academia, governments, workers and employers, and people with disabilities themselves.
The report highlights three main levers for creating a more inclusive digital labour market for persons with disabilities: ensuring accessibility, fostering digital skills and promoting digital employment.
The increase in digital work creates acute problems for those without the necessary skills or equipment, the study says, pointing out that, due to persistent exclusion, people with disabilities generally have lower levels of education and training than their peers without disabilities.
Hence, reskilling and upskilling will be key to building an inclusive future of work, alongside initiatives to foster digital employment and support collaboration between relevant stakeholders. Assistive technologies (AT) could also open up new occupations and opportunities. However, the report warns that a lack of accessible AT could create new barriers because without it many essential digital tools will not be usable by people with disabilities.
“The COVID-19 pandemic has accelerated trends already present in the world of work, including the expansion of the digital economy,” said Manuela Tomei, Director of the ILO’s Conditions of Work and Equality department. “We must ensure that we direct this trend so that it supports an inclusive future of work in which the talents and skills of persons with disabilities can contribute to the success of workplaces and societies worldwide.”
“In order to leave no one behind, the technological revolution which we are living, and which has been accelerated by the pandemic, needs to ensure an inclusive design for people with disabilities, so prevent it being a barrier for them,” emphasized Fernando Riaño, Director of Institutional Relations and Social Responsibility in the ONCE Social Group, of which Fundación ONCE is a part.
The report was published at the Zero Project conference, the largest annual disability-specific meeting, which this year was held virtually on 10 February, with the theme “Employment and ICT”. Its aim is to increase awareness of the way an increasingly digital world of work is affecting those with disabilities and identify how the future of work can be shaped to be more inclusive. It was developed within the framework of Disability Hub Europe, a project led by Fundación ONCE and co-funded by the European Social Fund.
The COVID-19 pandemic has plunged the world into the worst recession since World War II. In 2020, the global economy shrank by 4.3% – over two and half times more than during the 2008-2009 global financial crisis.
Lockdowns and other preventive measures that governments have put in place to curb the spread of the virus have disrupted economic activity in ways for which societies were largely unprepared.
As social distancing and restrictions on movement became the new normal, businesses and consumers increasingly “went digital”, providing and purchasing more goods and services online.
Soon-to-be released findings from a study conducted by UNCTAD and eTrade for all partners shows the strong uptake in e-commerce wasn’t a rich world phenomenon. In fact, consumers in emerging economies have made the greatest shift to online shopping.
Latin America’s online marketplace Mercado Libre, for example, sold twice as many articles per day in the second quarter of 2020 compared with the same period the previous year. And African e-commerce platform Jumia reported a 50% jump in transactions during the first six months of 2020.
Not everyone can ‘go digital’
Businesses and consumers that were able to “go digital” have helped mitigate the economic downturn caused by the pandemic. But they have also sped up a digital transition that will have lasting impacts on our societies and daily lives – for which not everyone is prepared.
The pandemic has benefited the world’s leading digital platforms more than others. Most solutions being used for e-commerce, teleworking and cloud computing are provided by a relatively small number of large companies, based mainly in China and the United States.
Meanwhile, in many of the world’s poorest economies, consumers and businesses aren’t able to capitalize on the new e-commerce opportunties due to persistent bottlenecks and barriers, such as costly broadband services, overreliance on cash, a lack of digital skills among the population and government inattention.
The risk is that the huge digital divides that already existed between and within countries will only worsen in the wake of the pandemic. The result will be even deeper inequalities that would threaten to derail progress on the United Nations Sustainable Development Goals.
Building an enabling e-commerce ecosystem
To prevent this from happening, UNCTAD has identified three critical areas where greater efforts are needed.
First, governments need to prioritize national digital readiness so that more local businesses can become producers in the digital economy, not just consumers.
Building an enabling e-commerce ecosystem requires changes in public policy and business practices to improve the digital and trading infrastructure, facilitate digital payments and establish appropriate legal and regulatory frameworks for online transactions and security. So the approach must be holistic. Policies should not be made in silos.
Second, businesses in developing countries need to become better prepared to participate in the digital economy. This requires faster digitalization for smaller businesses, more attention to digital entrepreneurship (including reskilling), better capabilities to capture and harness data, and stronger regulatory frameworks for creating and capturing value in the digital economy.
Third, the international community – including development partners, United Nations agencies and commissions, regional economic communities, and organizations concerned with digital development – need to strengthen their collaboration with governments and the private sector to leverage the opportunities and minimize the risks of countries falling by the wayside.
Only through active collaboration can we ensure e-commerce plays a powerful and positive role in national and international efforts to “build back better”.
Need for dialogue and collaboration
Better dialogue and collaboration are needed to identify new pathways for the digital economy that take into account and leverage varying kinds of experience and expertise and avoid duplication.
One example of such a platform is the eTrade for all initiative, currently funded by the Netherlands, Germany and Estonia.Over the past four years the initiative has acted as a global helpdesk for developing countries to bridge the knowledge gap on e-commerce information and resources.
Since the outbreak of the pandemic, more than 30 eTrade for all partners have worked together to raise awareness on the e-commerce opportunities and risks emerging during the crisis and identify ways businesses in developing and least developed countries could overcome the challenges.
The initiative’s work focuses on seven policy areas identified as critical to e-commerce’s development:
- E-commerce strategy
- ICT infrastructure
- Payment solutions
- Trade logistics and facilitation
- Legal frameworks
- Skills development
- Financing SMEs
Countries should redouble their efforts in these areas to turn the digital opportunities brought by the pandemic into development gains.
The European Commission, together with the Organization of Africa, Caribbean and Pacific States (OACPS), has signed a new initiative of €14.5 million with the United Nations Capital Development Fund (UNCDF) to unlock the potential of digital finance to benefit more than 600,000 women, youth and entrepreneurs across African, Caribbean and Pacific countries.
“Today more than ever, digital technologies have a central role to increase access and usage of affordable financial products and services that meet people and business needs -as well as accelerate economic recovery from the coronavirus pandemic. This is why, as reflected in our EU Strategy with Africa, we want to join forces with Africa to foster a digital transformation that also helps us close the digital gender divide,” said Jutta Urpilainen, Commissioner for International Partnerships. “If we want to achieve the Sustainable Development Goals, digital solutions are key to create more jobs and improve basic services such as health and education.”
“Our work responding to COVID-19 in 2020 showed that access to digital finance and infrastructure was a major determinant of how resilient societies and businesses were in the face of the shocks caused by the pandemic”, said Henri Dommel, UNCDF Director of Financial Inclusion. “This partnership with the EU will boost the response to the pandemic and economic recovery of ACP countries using digital finance as a tool to reach the last mile.”
Mobile money is the provision of financial services through mobile technologies. It allows for the paying of bills and receiving money by the use of mobile apps. Mobile money also creates new opportunities for businesses and individuals as it grows in all regions of the world, both in urban and rural communities. Nevertheless, there is a long way to go as 1.7 billion adults remain unbanked, especially women and youth. This represents 46% of adults in the developing countries.
Thanks to this EU funded initiative, UNCDF will support key policy reforms for digital transformation as well as create inclusive financial services tailored to the needs of women and youth, including innovative savings products and credit.
The joint action will be implemented in different countries in Africa (Gabon, Niger, Malawi and Ethiopia) as well as in the Caribbean (Trinidad and Tobago and Eastern Caribbean States) and in the Pacific region (Vanuatu, Samoa, Timor Leste, Tonga and Fiji).
This initiative is fully in line with the recent launch of the new Digital 4 Development Hub, aimed at building strong ties across the globe to make the digital revolution an opportunity for everyone.
Ana PISONERO HERNANDEZ (+32 2 295 43 20)
Gesine KNOLLE (+32 2 295 43 23)
For the public: Europe Direct by phone 00 800 6 7 8 9 10 11 or by email
United Nations Capital Development Fund (UNCDF)
The coronavirus global health crisis is severely harming livelihoods and sending hundreds of millions into poverty. Although economic recovery appears far off, the crisis has also encouraged incentives for economic transformation, demonstrating the immediate benefits of financial inclusion. In spite of the progress made in the past ten years, supporting digital finance remains critical for governments and individuals to create a conducive ecosystem for economic recovery and to provide a tangible response to coronavirus.
Although much is still unknown of the socioeconomic consequences of the coronavirus on women and youth, the disease is especially harmful to those who generally earn less, save less, hold more insecure jobs and, therefore, have less capacity to absorb economic shocks. The situation for women and youth in Least Developed Countries (LDC) is likely to deteriorate faster than in more developed countries.
Trade isn’t all about tariffs or taxes, as COVID-19 has shown.
From fresh produce to toilet paper to bicycles, the pandemic has disrupted the complex supply networks that crisscross the globe. And with that disruption, the virus has revealed the delicacy of many of these links, and how tenuous the world’s worst-off are within these global arrangements.
Garment factories in Bangladesh, Myanmar, and Cambodia have all experienced cancellations of orders. In total, U.S. and European fashion companies have refused to pay overseas suppliers over $16 billion in global goods, affecting millions of workers.
For lower-income countries that rely heavily on tourism, a similar story unfolded. Pandemic lockdowns started, cancellations ensued, and the many that work in parks, safaris, and heritage sites — often in more remote areas with few employment prospects — lost jobs and essential income.
Of course, COVID-19 is a disaster of massive proportions, with most if not all people and institutions diminished in one way or another. Should we expect that global value chains, or GVCs, which have driven international trade and spurred economic development in some low-income countries, be more resilient?
1 Overcoming challenges
For the world’s lowest-income nations, becoming a link in a global “chain” of production can help to boost economies. But for businesses in these countries, there are hurdles to overcome from customs and transportation to infrastructure and certification requirements. But, following that, there is promise.
In Germany, voluntary monitoring of supply chain abuses ‘has failed’
The country is under pressure to introduce compulsory regulations.
According to the World Bank’s “World Development Report 2020,” a 1% increase in GVC participation boosts per capita income by over 1%. But, the report notes that GVCs are at a “crossroads,” with growth leveled off since 2008 with GVCs at 52% of trade.
Take Bangladesh, the country doubled its world market share of exports between 1995 and 2012, with much of the growth attributed to its garments industry being integrated into GVCs. Key to the country’s success were government incentives, flexible labor arrangements, and very little taxation. Yet during the pandemic, according to the Center for Global Workers Rights, over 1 million workers have been fired as a result of canceled orders and buyers’ refusal to pay.
Can GVCs be re-centered so the world’s worst-off in countries like Bangladesh aren’t the first to bear the brunt of shocks?
2 Taking the lead
The services sector of GVCs is linked with the highest gross domestic product growth. Job gains in this sector are offsetting losses in manufacturing. Countries have responded, by, for instance working to develop tourism industries or IT sectors. For years, Cabo Verde had been positioning itself as an island idyll, now it is at a crossroads amid the pandemic-induced global travel restrictions. What did the country do? It’s paying idle workers in the tourism sector 70% of their income until the end of this year.
With the exponential development of the global need for now-digital connectivity, there is space for low- and middle-income countries to spearhead new models for themselves, while maintaining efforts that have had success.
In Myanmar, the government swiftly responded to the increased need for digital commerce. In Tanzania, the tourist board and wildlife conservation authorities live-streamed the great wildebeest migration. In Samoa, Women In Business Development used the Maua app, the country’s first e-commerce platform, to create an online market where farmers and small businesses have been selling their products during lockdowns.
Setting aside the integral roles of importers, industry, donors, and multilaterals, what can low-income countries do themselves to work toward some control?
1. Understand strengths and weaknesses
Countries need to take advantage of strengths and build resilience against shocks. Ethiopia’s coffee sector is using its close ties with diverse coffee markets in the EU, the U.K., and Saudi Arabia to weather the global coffee crisis. Schemes that guarantee a minimum price for farmers and coffee producers, or salaries for garment workers and tourist guides, are more important now than ever.
2. Improve the business climate
With strong and transparent institutions, countries can better navigate the complex dynamics of GVCs, and hopefully dictate their own terms. Governments could review their foreign direct investment strategies by looking at the exporting sectors that have been attracting investment. Rwanda is now providing a preferential tax rate for investors that undertake to work with a host of different energy sources to position the country’s investments beyond the pandemic.
3. Reduce trade and investment barriers
Complex customs rules, regulations against foreign companies, export restraints — countries can address these so they’re not at a disadvantage from the start. Initiatives such as the Enhanced Integrated Framework at the World Trade Organization have been working with countries to assess the barriers and work to put improvements into action.
4. Build digital capabilities
The internet was already facilitating GVCs, but many countries will still need to overcome their many challenges of infrastructure, of skills, of systems, of policy.
With trade, no country can work in a silo. EIF has been leading a #PowerUpTrade campaign together with the lowest-income countries, highlighting how people who work along value chains are being impacted by COVID-19.
The pandemic is showing us that the poorest countries continue to be the most vulnerable, and while they can do a lot on their own, they also can’t do it alone.
The World Travel and Tourism Council predicted in November 2020 that 174 million people could lose their travel-related jobs that year alone due to the COVID-19 pandemic. To re-boot the global economy and re-connect society physically and virtually in a new reality, people will need to engage physically and digitally with public authorities and businesses.
But the potential is bigger: the possibility to safely claim who we are will impact how we live and how fast the world economy can recover – alleviating key risks highlighted in World Economic Forum’s COVID-19 Risk Outlooks Report.
Human-centric digital identities are an enabler to alleviate the global risks of health, movement, travel and trade highlighted in the COVID-19 Risks Outlook, May 2020.
The need for trust
The advantages of trusted claims are multiple from binding health tests to an individual being able to enter venues or travel, to relying upon education and work certificates issued remotely, to remotely signing property contracts. But with contact tracing, self-declaration or health credential approaches facing scrutiny – how to enable the new normal?
People are worried about the impact of technology on their personal data management (66% of people lack trust in data based on the Edelman Trust Barometer), but there is one fundamental digital infrastructure layer that can bring transparency to interactions: digital identity.
Click to enlargeTable show global risks of health, movement, travel and trade highlighted in the COVID-19 Risks Outlook, May 2020.
Human-centric digital identities are an enabler to alleviate the global risks of health, movement, travel and trade highlighted in the COVID-19 Risks Outlook, May 2020.
Image: World Economic Forum
Human-centric digital identities: an enabler to rebuild economy and trust
Human-centric, digital identity lets people know who they are dealing with without revealing more than the strictly necessary information. Digital identities give the user control of their data – they provide clear audit trails and streamline how businesses and governments allow people to register and access their services and trade. It has great potential for online education, issuing employment credentials, fighting fraud or proving one’s health status. Digital identity was often confined to the technology community or banking’s Know Your Customer checks and to combat money laundering.
With our digital footprint extending into all walks of life, digital identification is becoming a global topic. A healthy digital identity network widens civic participation and supports societal advancement, a case in point would be the Estonian digital identity approach, which allows the nation’s public and private sector e-service information systems to link up and function in harmony.
Digital identities are widely accepted
While government’s role is key, regulators have understood that they don’t hold all the cards and that solutions are needed across the public and private sectors. Digital identity trust frameworks led by governments working with the private sector are emerging – defining claims for people and organizations that should be broadly recognized.
Such frameworks have emerged in Canada, the EU, the Smart Africa Alliance, Australia and New Zealand, and in vertical market sectors from health and employment to travel, encompassing data responsibility, cyber security, interoperability, inclusion, governance, redress and liability.
‘As proven in Canada, a digital ID ecosystem is not only a motor to connect people, governments and the private sector in a trusted and transparent way – but it also accelerates participation in the economy, work and mobility’
—Vidya ShankarNarayan, Assistant Deputy Minister and CIO, Agriculture and Agri-Food Canada and previously Director General, Digital Government
Human-led identity approaches avoid surveillance and mistrust
While trust models vary among regions following the eminently practical Good Digital Identity guidelines will help to open an era of transparency:
Strong governance and transparency of the data and business models behind digital identity provision are key to build trust with people. To avoid surveillance, the safe capture, storage, transfer and agreed usage of identity data requires strict oversight.
Digital identity provision needs to be interoperable. Some digital identity models have developed from banking communities sharing data, others from payment networks or mobile operators. The next chapter must break new ground and function across sectors and borders – as a key piece in establishing trade areas or travel corridors.
The accessibility of digital identity systems will be judged. In many countries, citizens do not have access to identity documents, while people with disabilities, or without technical skills or the latest devices may be disadvantaged. An opportunity for new trust solutions now emerges: e.g. tech for good to open hitherto closed data sources from companies and authorities; new community vouching models – e.g. paying bills regularly, giving blood or volunteering as verifiable claims of existence.
The risks of doing nothing
The cost of not pursuing digital identities is high. Being able to digitally prove claims is vital to enable paperless, contactless, streamlined processes across public and private sectors. Sadly, COVID-19 has shown many cases of fraud applications for grants from bogus organisations, selling non-genuine tests to citizens, setting up fake companies or enlisting fake directors to harvest data. In the UK alone, Policy Exchange estimates that fraud and error could cost the government between £1.3bn-£7.9bn ($1.8bn-$10.8bn) in 2020.
Click to enlargeIllustration shows the intersection of digital identity in social and economic sectors.
Digital identity enables trusted interactions needed now and in the future global society and economy.
Next steps for governments and companies
Governments around the world are spending huge amounts to bail out economies due to the impacts of COVID-19, looking for GDP gains, streamlining economies and decreasing fraud. Digital identity enables all this, as well as robust testing regimes, opening travel and work places. The value creation of digital ID is equivalent to 3-13% of GDP by 2030, according to McKinsey.
So what needs to be done?
Frameworks may have to be rewritten to enable digital forms of identification to be accepted at parity with physical ID documents.
Policymakers need to be able to move as quickly as the technology and times in which they live. Data protection authorities must offer sufficient data protection legal bases to enable biometric digital identity to function.
For citizens to trust and be willing participants, organizations must take the time to contribute to the global dialogue between trust frameworks and explain their models clearly. Innovative thinking is needed to enable citizens of all backgrounds to participate in this digital public infrastructure.
Every year since 2017, the Kampala Innovation Week brings together stakeholders in the startup ecosystem to celebrate, re-focus and energize the innovation efforts in Uganda and across the region.
KIW2020, last year’s edition of the annual KIW, was like no other. Owing to the COVID-19 pandemic, KIW2020 was organized as a hybrid event that involved in person participation of over 150 attendees with more than 5,000 others joining online from Uganda, Sudan, Kenya and the UAE, among other countries.
It goes without saying that the COVID-19 pandemic brought unprecedented challenges across many facets of life and business, and particularly disrupted many startups especially in economies like Uganda. Consequently, the KIW2020 edition was aptly themed around recovery and resilience for Startups and SMEs, where innovators, entrepreneurs, investors and development partners from all around the region gathered for discussions amid the ongoing global health crisis.
Discussions were focused on fostering the resilience and recovery of the Ugandan entrepreneur, financing Uganda’s green economy through entrepreneurial solutions, and rethinking the approach to startup financing.
Each day, a major partner event was hosted, with Day 1 dedicated to ITCs pitch competition which reached over 1000 people online. Activities were hosted by the Uganda Green Enterprise Finance Accelerator (UGEFA) on Day 2 around green entrepreneurship in Uganda and the various opportunities for finance. Enabel hosted a boot camp on Day 3 around digital innovation for entrepreneurs in the context of COVID-19.
Some of the speakers included Iyinoluwa Aboyeji, co-founder of Andela, Flutterwave and Future Africa, Norhizam Abdul Kadir, Vice-President of Fintech and Islamic Digital Economy at Malaysia Digital Economy Corporation, and renowned investor and entrepreneur Tomi Davies, President of the African Business Angel Network.
One notable showcase of this edition was the resilience of the startups that weathered the storm as the world quaked under a global pandemic. Indeed, the ingenious innovations that soared above the pandemic demonstrated the power of startups to swiftly devise solutions for contemporary issues and global challenges.
Below are three main highlights of the discussions at the KIW2020
Entrepreneurs embrace innovation during the pandemic
Julian Omalla had a dream of starting a fresh juice business. With UNCDF support, she started Delight Uganda Limited, a successful fresh juice business that sources its raw materials from farmers in Nwoya district.
When the pandemic hit, Omalla had to lay off her workers and close the business whose main customers were students in boarding schools. She used the lockdown period to re-strategize, reorganize and grow more fruits through the Nwoya Fruit Farmers’ Association that consists of over 5,000 farmers. This is one of the stories of resilience amid a global pandemic that was showcased during KIW2020.
Despite the apparent market uncertainty, many startups, companies and individuals have risen to the occasion, shifting their working models and using innovative digital solutions to meet customers’ needs. A number of startups are providing solutions in financial services, health, education, e-commerce, and entertainment, among other sectors.
Companies like Tubayo Travel and Pro Interns, both of which depended heavily on in person communication and freedom of movement for their business modules, discussed the ways in which COVID-19 forced them to adapt and adopt new ways of working in order to survive.
Here is a recap of the discussion.
Panelists discuss the need for a Startup Act
Startups are universally recognized as a vital engine that powers rapid economic growth. In Uganda, despite the numerous laws and policies that guide companies, panelists at the KIW2020 observed that there is need for a specific Startup Act that not only defines what a startup is but also stipulates specific benefits to startups such as access to tax relief and how the government can support them to access international markets.
“Many businesses are collapsing because of the lack of law protection,” said John Walugembe, CEO at Federation of SMEs. “Startups need to be recognized for their contribution to the economy, not as a favour to them.”
Though the panelists agreed that there is need for more groundwork and research before a Startup Act can be enacted, a clarion call was made for an urgent legal framework within which startups can be engaged. They added that the framework should provide for more lenient requirements for registration, mechanisms for access to finance, and an enabling environment for entry and exit into the sector.
Watch the discussion here.
Digital innovation to improve efficiency in the humanitarian sector
There is no doubt that the pandemic has hit hardest the people who are traditionally marginalized, affecting their ability to access social services like health and education. Consequently, the humanitarian sector needs to embrace digital innovation to build solutions that improve the lives and livelihoods of the most vulnerable.
The discussion emphasized the concern that digital solutions should make the lives of people supported by humanitarian organizations better, not worse. Governments and regulating authorities play a leading role in accommodating the innovation process and ensuring consumer protection.
“We need to ensure that our solutions do not for instance propagate domestic violence or create more division amongst communities,” observed Jaki Mebur Market Engagement Manager, GSMA.
Keeping in mind the limited access to technology and digital literacy that marginalized communities face, digital innovations should address the needs of the most vulnerable.
Watch the discussion here.
Please visit the Kampala Innovation week Facebook page to watch all the live stream sessions.
COVID-19 has put e-commerce at the forefront of retail. Before the pandemic, online shopping was growing at a steady pace of 4.5 percent a year globally. ButBusinesses that were able to adapt to digital platforms thrived, in general, while traditional retailers with weak online strategies dwindled, with several prominent ones filing for bankruptcy.
a trend referred to as embedded finance. This surge in embedded finance can significantly improve access to finance for small and medium-sized enterprises, reducing costs and increasing efficiency in the digital economy.Services such as digital payments, credit, and insurance are increasingly being offered at the point of sale by non-financial companies—
In recent years, platforms such as Alibaba, MercadoLibre, Jumia, and Amazon ventured into finance following a similar arc: adding payments facilitation to their platforms and then expanding these capabilities beyond them. Rich data on payments and transactions enabled these companies to build solid credit scoring models and start extending credit and a variety of other financial services to merchants and consumers.
The trend of embedding finance is now expanding beyond e-commerce, shows a recently published report. Digital firms operating in agricultural value chains, ride-hailing platforms, and e-logistics are following a similar pattern and have either introduced financial services or have expressed interest in piloting new financial offerings.
A sudden shift with lasting consequences
Unique digital shoppers increased in most countries, with a few exceptions where lockdown policies restricted all types of economic activities, including e-commerce. Data show substantial growth rates in most regions, from the United States to Africa and the Middle East, reshaping consumer behavior and enterprise operations.
Figure 1: Google Trends for Some of the Largest e-Commerce Platforms between March and May 2020
Online sales are no longer an option, but a necessity for brick-and-mortar businesses. On the consumer side,In Latin America, MercadoLibre registered a 100 percent year-on-year increase in demand for essential goods and pharmacy products in the early weeks after the onset of the crisis. In Africa, Jumia registered a fourfold increase in sales of grocery items. Amazon’s third-quarter sales in 2020 rose by 37 percent from a year earlier.
Several new platforms gained relevance in emerging markets of Africa, Asia, and Latin America, adopting new business models and helping the overall landscape to become more competitive. And the crisis might open opportunities for second-generation “niche” platforms that operate in specific market segments that are traditionally excluded from large e-commerce platforms. For example, in Kenya, agricultural value-chain platform Twiga Foods partnered with Jumia Kenya, an e-commerce platform, to sell baskets of assorted fruits and vegetables directly to consumers. In Brazil, an initiative called Compre Local allows customers to locate and buy items from small businesses in their neighborhoods using a simplified payment solution. It is yet to be seen how many of the several initiatives emerging during this period will consolidate to become viable market solutions in the long-term.
An upward trend with a few questions ahead
But the road ahead is not without challenges.Most platforms saw a surge in the use of digital payments, notably digital wallet—a payment system that allows consumers to make safe, instant transactions without using cash. In Africa, Jumia enforced the use of digital payments in countries such as Kenya, as it temporarily discontinued cash on delivery. Mercado Pago, in Argentina, saw a strong increase both in terms of penetration of digital payments and volume of transactions.
The advantages of digital payments became evident when compared to countries with low mobile-money penetration and/or not well-established agent networks. For example, in Nigeria, some platforms had to discontinue mobile payments because disruptions to the agent network made it difficult for sellers to cash out their payments.
In addition to inadequate infrastructure, uncertainty about regulatory frameworks for the provision of financial services can represent a key risk for e-commerce platforms and needs to be prioritized by regulators in the short term. Because the segment is evolving rapidly, regulators have not yet developed a coherent and simplified framework for embedded finance solutions to operate. Changing requirements linked to payments and credit licenses as well as know-your-customer requirements for sellers and customers need to be addressed for platforms to expand.
It will also be critical to monitor the expansion of e-commerce, as the rapid market developments may draw new lines of inclusion and exclusion to the digital economy. Several e-commerce platforms registered an increase in first-time users since the onset of the COVID-19 crisis, indicating an expansion of the customer base making online purchases. However, low-income households still seem to be out of reach due to lack of basic digital literacy, high costs to access services, and low levels of financial inclusion. Addressing these barriers should be prioritized to make digital economies more inclusive for smaller companies and low-income households.
Under increasing pressure to respond to the Covid-19 pandemic and achieve the SDGs, the world’s least developed countries receive the lowest share of private finance mobilised by blended finance transactions. This is one of the core findings of “Blended Finance in the LDCs, 2020: Supporting a Resilient Covid-19 Recovery,” released today by the United Nations Capital Development Fund (UNCDF) and the Organization for Economic Cooperation and Development (OECD).
The third edition of the Blended Finance in the LDCs report series acknowledges that LDCs are not able to harness the full potential of blended finance, defined in the report as the strategic use of development finance to mobilise commercial finance towards the SDGs, with a focus on unlocking investment that the private sector would not have done on its own. Between 2012 and 2018, LDCs received 6% of the total global share of private finance mobilised by blended finance transactions, a total of USD 13.4 billion. This represented the lowest proportion of mobilised private finance among country categories. By comparison, lower middle-income countries received USD 68 billion, while upper-middle income countries received USD 84 billion.
Against the ever-increasing gap to finance achievement of the SDGs, much of the 13.4 billion received by the world’s 47 LDCs reached just five countries (Bangladesh, Myanmar, Angola, Senegal and Uganda). At the industry sector level, over 60% of the private finance reaching LDCs through blended finance transactions went to only three sectors—energy, banking and financial services, and mining and construction. The least-targeted areas were health, water and sanitation, education, and other social sectors.
Such finance challenges coincided with mounting pressure to respond to the COVID-19 pandemic as it brings distressing health outcomes to LDCs on top of dramatic shocks from the ensuing global economic crisis. In the medium to long term, the report states that blended finance can play a key role in supporting LDCs to mobilise resources for economic recovery. This will require immediate action to start building a pipeline of bankable projects that can attract private capital, as well as coordination among development finance actors around such efforts as capitalizing small businesses, investing in sustainable infrastructure, promoting gender equality, the transition to digital economies, and supporting health systems. In the immediate term, blended finance can play a catalytic role in the growth and strengthening of health systems in LDCs, including —potentially— the dissemination of vaccines.
“UNCDF is proud to continue its work and thought leadership on the effective use of blended finance in LDCs,” said Judith Karl, Executive Secretary of UNCDF. “As Covid-19 threatens achievement of the SDGs in the LDCs, and in the context of the Decade of Action, innovative solutions for mobilizing much-needed finance for LDCs must be brought to scale through systemic and transformational approaches. Now is the time to redouble our commitment to leave no one behind. We hope this report promotes discussion and creates more options for how blended finance can be used to increase mobilisation of financing to LDCs.”
“The evidence in this report sounds an alarm: far too little development finance is reaching those furthest behind, which risks cleaving the world down unequal lines when solidarity is needed more than ever” said Jorge Moreira da Silva, Director of the OECD Development Co-operation Directorate. “With COVID-19 already reversing development gains in LDCs, and many challenges still ahead, it is urgent that we redesign global finance to incentivise sustainable investment. Official development finance can be leveraged better to mobilise and align additional finance for the SDGs in LDCs, and tools to increase transparency and measure impact will go a long way to help scale blended finance in LDCs.”
“Malawi is very pleased to support the third edition of this report, which comes at a crucial moment when the Covid-19 pandemic has increased financing needs in LDCs, and the preparatory process for the Fifth UN Conference on LDCs has commenced,” said H.E. Perks Ligoya, Ambassador and Permanent Representative of the Republic of Malawi to the United Nations and Chair of the Global Coordination Bureau of the Least Developed Countries. “Increasing development financing available for LDCs will be critical for recovery from the Covid-19 pandemic and the achievement of the SDGs.”
In addition to presenting updated data and incisive guest contributions, the “Blended Finance in the LDCs, 2020: Supporting a Resilient Covid-19 Recovery” report includes an Action Agenda to harness the potential of blended finance for the LDCs. The Action Agenda focuses on four critical points:
Support domestic financial ecosystems and market development: Blended finance should be used strategically to develop sustainable market systems and build the capacity of local capital market actors.
Design blended finance solutions to reach the “last mile”: Blended finance actors should design innovative structures that reach the most vulnerable and underserved communities.
Improve impact management and measurement and promote transparency: Lack of transparency and impact measurement of blended finance operations severely hinders further development and improvement of this market.
Bring blended finance to scale through systemic and transformational approaches: By adopting a portfolio approach and by focusing investments in key sectors prioritised in national crisis recovery and sustainable development plans, blended finance can play a strategic and significant role in supporting COVID-19 recovery.
Blended Finance in the Least Developed Countries 2020
The Blended Finance in the Least Developed Countries, 2020 report is the second joint UNCDF-OECD report. It builds on UNCDF research and experience, OECD data and analysis, and a series of guest contributions written by a varied range of blended finance experts.
To access the full report, go to www.uncdf.org/bfldcs
This time last year, concepts such as “lockdowns,” “mask mandates” and “social distancing” were unknown to most of us. Today they are part of our everyday language as the COVID-19 pandemic continues to impact all aspects of our lives. Through the following 12 charts and graphics, we try to quantify and provide an overview of our colleagues’ research in the face of a truly unprecedented crisis.
The New Poor
Accelerated Economic Downturn
Relieving the Debt Burden
Migrants Sending Less Money Home
Impact on Businesses and Jobs
The High Cost of Health Care
Millions More Without Meals
Fragility, Conflict, Violence: Home to More and More Poor
Seizing the Sustainability Opportunity
COVID-19 and the related lockdown measures to prevent the virus’ spread have highlighted how important it is for everyone to have access to reliable and resilient digital infrastructure. Restrictions on movement have generated higher Internet usage and increased traffic on networks, reflecting an increase in remote working and learning, as well as other activities that have shifted online.
This article provides insight into the effect of COVID-19-related lockdown measures on internet speed in a sample of developing countries in Africa. The findings of this study demonstrate the resiliency of digital infrastructure in Africa and also highlight and reflect the benefits of partnership between public and private stakeholders to manage traffic surges. The development community should encourage and leverage these partnerships to not only ensure continued network resilience during times of crisis, but also to minimize the digital divide between countries and within countries as the new global digital transformation takes shape.
- Increase in internet usage – The COVID-19 pandemic and related lockdown measures have increased the amount of internet traffic around the world. Countries in Africa reflect this global trend, reporting higher data traffic during the months in which “stay at home” orders were established. However, this increase in traffic was not temporary; countries continue to reflect a surge in traffic compared to the pre-lockdown weeks.
- Public and private sector reaction – As a consequence of higher internet usage, public and private stakeholders have promoted a wide range of measures to facilitate access to the internet. For instance, some regulators have enabled temporary spectrum bands to meet the increase in demand while private operators have offered more affordable data plans.
- Internet speed is slow – The data recorded by Ookla® Speedtest® reported on average low mobile and fixed internet speeds across the 18 African countries surveyed. Even before the onset of the pandemic, speed was below the acceptable threshold of 10mbps, considered the lower bound for a good quality broadband service. In contrast to what might be expected in OECD countries, mobile internet generally provides faster service than fixed.
- Effect of the lockdown on internet speed was modest and temporary – Findings from the sample of 18 African countries indicates a negative effect of the lockdown on mobile (-17%) and fixed internet speed (-5%), particularly in the first week of lockdown. Some countries also experienced a decline before the “stay at home” orders, suggesting that some activities shifted to remote connectivity before the official lockdown mandates. However, networks across the continent reacted well.
- Public and private sector partnerships and cooperation was and remains critical for ensuring network resilience – The findings of this study demonstrate the resiliency of digital infrastructure in Africa and also highlight and reflect the benefits of partnership between public and private stakeholders to manage traffic surges. The development community should encourage and leverage these partnerships to achieve the ambitious objective of universal access to the internet.
An online information session was held by the WTO on 2 December to prepare for an Aid for Trade “stocktaking event” to be held online on 23 — 25 March 2021. Organized by the Committee on Trade and Development, the online event is set to examine the trade and development challenges arising from the COVID-19 pandemic and the measures taken in response to the crisis.
The information session highlighted how the crisis has had a significant impact in areas such as economic diversification and resilience, e-commerce, the empowerment of women and young people, the integration of micro small and medium-sized enterprises into the global economy, trade facilitation and trade in services.
The stocktaking event will feature sessions organized by WTO members as well as those organized by the WTO Secretariat and international organizations.
Members are invited to communicate to the WTO Secretariat details of the session(s) they wish to organize by filling in the form available here. The deadline for submission is 31 December 2020.
Aid for Trade is a multi-stakeholder initiative seeking to mobilize resources to address the trade-related needs and supply-side constraints identified by developing countries and least-developed countries. More information can be found here.
Earlier this year, WTO members agreed to extend the current biennial Aid for Trade work programme entitled “Empowering Connected, Sustainable Trade” into 2022 when the next Global Review will be held. They also agreed to an addendum to reflect the impact of the pandemic in the work programme.