Aprovechamiento de las tecnologías emergentes en otros sectores de la economía

A Revolution is
accelerating in
digital technologies.
Who will
it leave out?

Digital Foundations –
Are they Critical to
Increase Uptake and
Relevance of Emerging
Digital Technologies?
Are the LAC Region
and Colombia Ready?
Case Example:
Departamento del
Amazonas
Key Messages
2/23
Outline
Expert Views of
Emerging Digital
Technologies
01 02 03 04 05
A Revolution Is accelerating
in digital technologies.
Who Will It Leave Out?”
International Regulation Workshop
September 4th-5th, 2023
Cartagena, Colombia

Expert Views of Emerging
Digital Technologies
01
3/23
Cartagena, Colombia

Several of the
Strategy Consultants
and Think Tanks often
identify “the most
significant …”
4/23
Kodexo Labs
Top 10 Emerging Technologies
Transforming the IT Industry
2023 (March)
• Artificial Intelligence (AI) and Machine
Learning (ML)
• Quantum Computing
• 5G and Next-Generation Networks
• Edge Computing
• Blockchain
• Cybersecurity Advances
• Augmented Reality (AR) and Virtual
Reality (VR)
• Robotic Process Automation (RPA)
• Internet of Things (IoT)
• Biotechnology and IT Convergence
McKinsey Digital
Technology Trends Outlook
2023 (July)
• Applied AI
• Industrializing machine learning
• Generative AI
• Next-generation software development
• Trust architectures and digital identity
• Web3
• Advanced connectivity
• Immersive-reality technologies
• Cloud and edge computing
• Quantum technologies
• Future of mobility
• Future of bioengineering
• Future of space technologies
• Electrification and renewables
• Climate technologies beyond
electrification and renewables
Main Differences
Sources:
(1) Kodexo Labs, March 2023
(2) Technology Trends Outlook 2023, McKinsey & Company, July 2023
Cartagena, Colombia

Digital Foundations – Are they Critical
to Increase Uptake and Relevance of
Emerging Digital Technologies
02
5/23
Cartagena, Colombia

The World Bank’s view
of the Digital House is
only as strong as the
Digital Foundations
6/23
The World Bank is providing
support to client countries through
establishing foundations,
accelerators and advocating use-
cases, with the objective of
addressing global challenges
including climate, pandemic,
fragility, and equity/inclusion.
Digital Transformation for Green,
Resilient, and Inclusive Development (GRID)
Digital use
cases across
sectors
Digital
acceleratos
Digital
foundations
Financial Services, Health, Education, Social Protection, Agriculture,
Urban, Trade, GovTech, InfraTech, Climate Tech
Data Safeguards
Data protection, privacy,
and cybersecurity
Data Platforms
ID4D / G2Px /
payments
Data Capabilities
Digital literacy
and skills
ICT Industry Development: Digital Jobs
Digital Data Infrastructure: Data Storage, Computing, and
Exchange Systems
Broadband Connectivity, Access and Use: Affordable and High-Quality
Cross-Cutting Themes: Climate Change, Private Capital Mobilization, Gender and Inclusion,
and Jobs and Economic Transformation
Cartagena, Colombia

… and the interoperability between advanced technologies and networks, and
sharing of data depends on the Digital Public Infrastructure (DPI)
7/23
DPI are the foundational and re-usable digital platforms
that are ‘rails’ for most digital transactions
Applications / Services Layer
Digital Public Infrastructure Layer
Broadband and Data (Hard) Infrastructure Layer
Every country has some form of DPI – but of varying types.
There are different ways to building DPI components, but key
features are open design, interoperability, and whole-of-
economy thinking
They are the middle layer between ‘hard’ infrastructure
(broadband, data centers, cloud, etc.) and services (e.g.,
e-commerce, financial services, government services, etc.)
Data
Sharing
Payments Identity
Cartagena, Colombia

Rapid developments in
IoT and related
connectivity
technologies have also
introduced risks and
raised concerns
8/23
Current State of Governance Gaps on IoT and Related Technologies
Risk Survey Results Description of Risk
Ethics and
Integrity
82% - Not Confident Confidence that users are protected against the unethical and
irresponsible use of the technology
Cybersecurity 73% - Not Confident Confidence that users are protected against cyberattacks
Equal Access 65% - Not Confident Confidence that connected devices and related technologies are
accessible and beneficial for all members of society, irrespective of
geography, socio-economic status or other factors
Environmental
Sustainability
51% - Not Confident Confidence that connected devices and related technologies are
environmentally sustainable
Financial and
Operational
Feasibility
37% - Not Confident Confidence that connected devices and related technologies can
be maintained and will provide value throughout their life cycles in
the context of rapid technological and social changes
Interoperability
and system
architecture
31% - Not Confident Confidence that connected devices and related technologies can
operate with each other effectively and efficiently
Source:
(1) World Economic Forum, State of the Connected World, INSIGHT
REPORT, January 2023
(2) Based on a survey of over 270 global IoT and connected device
stakeholders was conducted, including interviews of more than 25
experts from the public, private and civil society sectors in 39 countries
on six continents and in 19 industries.
Cartagena, Colombia

… and unless we invest in digital skills development there are no benefits of
disruptive technologies
9/23
Lack of digital skills is one of the main obstacles to be
online and a key factor affecting inequality.
Source: Company announcements and news articles
Private sector and especially big tech firms are launching
various initiatives to develop digital skills.
Governments around the region are promoting different
programs to foster digital skills (e.g., Colombia, Ecuador, etc.).
Some of them in partnership with MDBs and private sector.
Global private sector initiatives in digital upskilling
Microsoft & SAP: train 60,000+ women in
AI, cloud computing, web design skills
Amazon: USD 1.2 billion investments
during 2020-2025 to digital upskilling
Google: launched “Google Cloud Skills
Boost” to train 40 million people on
Google cloud skills
IBM: aims to equip over 30 million people
with digital skills through 170+ academic
and industry partnerships
Cartagena, Colombia

… and investment
in affordable
devices - large
scale regional
partnerships
between public,
private and tech
10/23
The Challenge: Cost of Smartphones Out of Reach of the Poorest
Estimated total cost as a percentage of monthly income, 2022
Source:
World Bank, Affordable Devices for
All Innovative Financing Solutions
and Policy Options to Bridge Global
Digital Divides, August 2023
Average Cost:
Colombia $54, Nigeria $57,
Pakistan $84, Rwanda $49
Low-cost
smartphone
Colombia Nigeria Pakistan Rwanda
30%
16%
43%
28%
87%
65%
113%
74%
First Quintile
Second Quintile
Solutions:
1. Negotiate lower costs (taxation,
device costs)
2. Targeted Subsidies
3. Financing Schemes(Pay as you Go)
4. Risk sharing facility (RSF) provides
partial credit guarantee along with
concessional loans to Participating
Financial Institutions (PFIs) for
their on-lending to end borrowers.
1
2
3
4
Cartagena, Colombia

Are the LAC Region and Colombia Ready?
03
11/23
Cartagena, Colombia

12/23
The Digital Economy foundations in LAC are improving with alarming inequality
across the region
DE4LAC
Assessment
56.6% of fixed broadband penetration in the region, compared to 75% in ECA,
42% in APAC. (TeleGeography, 2022).
Digital
Infrastructure
Argentina, Brazil, Panama, Chile and Uruguay are among the top 50 rankings in
2019. Belize, Cuba, Haiti and Jamaica are among the worst ranked in LAC.
(OECD, 2019).
Digital Public
Platforms
In 2021, LAC experienced the second highest growth rate (+22%) for mobile
money accounts registered, and the value of transactions increased significantly
at +39% (GSMA, 2021).
Digital Financial
Sevices
Venture capital (VC) investment in LAC reached a record $15.7 billion in 2021,
more than half of the total private equity dollars invested globally in 2021
(LAVCA, 2021).
Digital
Businesses
Only 5-15% of adults in most LAC countries have medium or high-level
computer skills in technology environments, compared to 29.7% of OECD
countries (World Bank, 2021).
Digital Skills
In the first half of 2022, LAC recorded 137bn cyberattacks, an increase of 50%
compared with the same period of 2021. Mexico (85 million attacks) and Brazil
(32 million attacks) are the most targeted countries in the region (Fornitet, 2022).
Trust
Environment
1
2
3
4
5
6
Cartagena, Colombia

13/23
The government of
Colombia has prioritized
efforts to boost digital
technology adoption among
businesses, individuals, and
the public sector
Agenda Colombia Digital 2022-2026, based on the National Development Plan (PND)
2022-2026, establishes the digital transformation agenda for Colombia and aligns with
DE4LAC’s pillars
“Agenda Colombia Digital 2022-2026”
(based on PND 2022-2026)
DE4LAC pillars
Literacy and digital skills for equality Digital Skills
Inclusive digital economy Digital Businesses
Digital public management designed
for people
Digital Public Platforms
Secure digital ecosystem Trust Environment
Internet governance and use of
emerging technologies
Digital Public Platforms,
Digital Infrastructure
Cartagena, Colombia

14/23
Progress per pillar: Colombia is a leader of digitalization in Latin America, but
with progress comes new objectives
63% of the population using
the internetin 2021, up from
38% in 2014 (ITU ICT
Indicator Database 2021)
Internet users in Colombia
pay 4.4% of GNI per capita
per month for 5 GB of fixed
internet, an amount higher
than Mexico (2.4%), Peru
(3.6%), Brazil (3.5%), and
Chile (2.5) (ITU 2021)
References: 1 ITU ICT Indicator Database 2021. 2 Global Findex Database, World Bank 2021. 3 BCR, Banco de la República de Colombia. 4 Pitchbook and CB Insights. 5 ECV, DANE 2022, 6 MinTIC 2019. 7 MinTIC 2021
Colombia has a consolidated
digital government strategy
and is implementing a
building blocks approach to
the delivery of digital public
services and the
construction of digital public
platforms.
X-Road, Colombia’s
government interoperability
platform, has limited uptake.
Out of 171 government
entities, only 64 use X-Road,
and only 27 processes are
interoperating.
Digital Financial Services
More than half of
Colombians (aged 15+) have
made or received digital
payments, up from 37% in
2017 (Global Findex
Database, World Bank 2021)
78.4% of store purchases (by
number of transactions) are
paid in cash (BCR, Banco de
la República de Colombia)
Digital Businesses
Even though Colombia's GDP
only accounts for 6% of
LAC's GDP, it hosts 12.8% of
digital firms per GDP in the
region (Pitchbook and CB
Insights)
For every 6 digital start-ups
in Colombia, there is only 1
established digital
business. (Pitchbook and
CB Insights)
Digital Skills
2016–2026National
Decennial Education Plan
(PNDE)recognizethe
importanceofdeveloping
digitalskillsamongthe
Colombianpopulation
andestablishaseriesofgoals
andprogramsthat directly
contributetothisend
Colombia ranked 94th out
of 141 in 2019 World
Economic Forum’s Digital
Skills Index (2019)
Trust Environment
Comprehensive data
protection framework that
addresses critical aspects of
data regulation and supports
important rights (right of
access, rectification, and
opposition)
Thisdataprotection
frameworkdoesnotgovern
somecoreaspectsof
personaldataprotection
(righttodataportability,the
reportingofdatabreachesto
thedatasubjects,and
expandedlegaljurisdictionfor
processingpersonaldata.)
Cartagena, Colombia

15/23
Challenge : Colombia still faces a challenge in achieving universal access to the
internet, and other digital technologies, indicative of the prevalent inequality
trends in the country
Internet (fixed or mobile): Almost 70% of rural households without internet vs. 33% of urban households (fixed or
mobile) (ECV, DANE 2022)
Fixed internet: 88% of rural households without fixed internet, vs. 47% of urban households
17% of ICT roles occupied by women
61% Colombia’s female population have expressed an interest in being trained in ICT
85% of women have a financial product vs. 93% of men
Fixed broadband household penetration is 100% among stratum 6 vs. 22% among stratum 1 (MinTIC 2019)
Average speed of subscribed fixed broadband service of stratum 1 is one-fifth of average speed for strata 4
and 5 (MinTIC 2021)
Gender
Income
Rural-Urban
References: 1 ITU ICT Indicator Database 2021. 2 Global Findex Database, World Bank 2021. 3 BCR, Banco de la República de Colombia. 4 Pitchbook and CB Insights. 5 ECV, DANE 2022, 6 MinTIC 2019. 7 MinTIC 2021
Cartagena, Colombia

16/23
Policy priorities: How can Colombia tackle the challenge of digital inequality and
achieve an inclusive digital economy?
Develop high-quality
digital infrastructure
• Foster competition
for affordable
internet
• Co-finance
infrastructure in
underserved areas
• Release spectrum
for 5G development
Improve government
systems
• Strengthen
interoperability
• Implement the
governance
framework
• Efficient data
management
Digital Financial Services
Boost digital financial
services
• Foster fast and
interoperable
payment systems
• Implement open
finance
• Leverage digital G2P
payments
Digital Businesses
Support platform-based
businesses and digital
commerce:
stronger financial
infrastructure
• Enable capital
markets
development
• Design targeted lines
of credit
• Strengthen financial
infrastructure
Digital Skills
Define a national strategy
and framework
• Assess most
demanded digital
skills
• Integrate digital skills
into curricula
through educational
trajectory
Trust Environment
Strengthen personal data
protection and critical
infrastructure assets:
• Integrate best
practices e.g., data
portability, reporting
data breaches
• Protect private sector
critical assets
• Develop
cybersecurity
expertise
1
2
3
1
2
3
1
2
3
1
2
3
1
2
1
2
3
Cartagena, Colombia

Case Example: Departamento del Amazonas
04
17/23
Cartagena, Colombia

18/23
The Democratization of
ICTs and the National
Connectivity Plan:
Increase access from
60 to 85 percent
Source: TeleGeography and MinTIC
High Divide
5.4M habitants
10 departments
Medium Divide
3.5M habitants
6 departments
Low Divide
42.7M habitants
17 departments
• The mobile operators'
proposal is to focus
coverage efforts on sites
where the digital divide is
medium-low.
• And in the other places
where the gap is medium or
high, focus efforts on
improving transmission and
modernizing the network.
Amazonas
1
2
Cartagena, Colombia

• 70% of households located in urban areas (Leticia and Puerto Nariño) use the internet,
the percentage drops to 17% in rural areas.
• Households and businesses without income stratification (typically the most vulnerable
households), have the lowest percentages of internet connection with less than 5%.
• The gap is dramatic in indigenous communities where 70% do not have access to the
internet compared to 20% in non-indigenous communities.
• Of the connected households that have a family member studying, the majority (51%)
have never used the internet to attend classes virtually. Only 23% do so often.
• During the Pandemic only 8% of students used the internet for on-line classes.
• 78% of the indigenous population never used the Internet in the last 5 years.
Connectivity in Department of Amazonas,
Colombia a stark and shocking reality
Source: World Bank, “Informe: Cierre de brecha digital en el departamento del Amazonas”, August, 2023
1
2
3
4
5
6
19/23
Cartagena, Colombia

20/23
The availability of resilient, quality, and affordable connectivity is a fundamental
input to the development of new technologies to protect the natural ecosystem
and offer new opportunities for socio-economic growth.
For example:
The connected Amazon would be the first step
for the use of disruptive technologies
Artificial Intelligence applications can be used to monitor territorial
consumption and illegal activities
Biotechnologies can play a key role in the genomic mapping of
the Amazon
Internet of Things (IoT) applications can help the eco-sustainable
development of the tourism industry
Cartagena, Colombia

Key Messages
05
21/23
Cartagena, Colombia

22/23
Cartagena, Colombia
• We believe digitalization is one of our most powerful tools to accelerate and achieve our World Bank
Mission to eradicate poverty on a livable planet
• Digital technologies are accelerating and must be leveraged to do good … to enable us to confront
head on the many crisis we face: climate change, fragility, pandemics, food insecurity, etc.
• We must first develop our digital foundations and DPI to fully benefit from AI and all other advancing
technologies be it IoT, AR/VR, etc.
• We can not forget the risks … rapid developments in advanced technologies have also introduced risks
and raised concerns about their security, privacy, sustainability, interoperability and fair distribution
of benefits
• We can not rest or be satisfied until all citizens, small business and government administrations are
able to fully utilize these technologies
• Colombia has the potential, the knowledge, capacity and capabilities – what is needed is the Passion,
the Will and the Leadership
• Just Do It! (per the Nike Ad, 1988)
Key Messages (Food for Thought)
1
2
3
4
5
6
7

Thanks!
Doyle Gallegos
Regional Program Manager
Digital Development Global Practice
Latin America and Caribbean Region
dgallegos@worldbank.org
23/23

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