Barbados on a digital high

The Inter-American Development Bank (IDB) says regional states, including Barbados, could dramatically increase employment levels and improve sustainable development if they closed the digital connectivity gap with nations of the Organisation for Economic Cooperation and Development (OECD).

Importantly, the study has revealed that in Latin America and the Caribbean, major broadband penetration and 4G technology coverage gaps still existed compared with OECD countries.

Moreover, the average citizen in the region was spending more than 20 per cent of his or her income to access broadband services, a level way above the three per cent recommended by the International Telecommunication Union to make it affordable.

At the same time, the new IDB study titled Digital Gap in Latin America and the Caribbean: Annual Broadband Development Index Report, showed Barbados ranked among the top performers, making significant strides in the area.

The study, which evaluated the state of broadband penetration in 26 countries in the region and estimated the size of the gap vis-à-vis OECD nations.

The study suggested that millions of direct jobs could be created in the Caribbean and Latin America, leading to economic growth of approximately 7.7 per cent and result in an increase in productivity by 6.3 per cent.

There was good news in the study about Barbados in the global ranking of the index, which included a total of 65 countries.

“Barbados, Uruguay, and Argentina were the countries that advanced the most in the ranking, climbing 11, nine, and six positions, respectively, from 2018. In the case of Barbados, the reason for the hike was a dramatic improvement in the Public Policies and Strategic Vision pillar; in Uruguay, in the Infrastructure pillar; and in Argentina, in the Strategic Regulation pillar,” it was noted.

The best-placed regional country in the 2020 ranking was Barbados, in position 31, followed by Chile, Costa Rica, Brazil, Argentina, Uruguay, and The Bahamas, in positions 33, 38, 39, 40, 42, and 43, respectively.

“Delays in improving connectivity and digitalization in Latin American and Caribbean countries have dramatically exacerbated the economic and social impact of COVID-19. But this reality also offers a historic opportunity to reduce inequality, and create jobs and sustainable economic growth,” said IDB president Mauricio Claver-Carone.

“The IDB is taking steps to drive a digital ecosystem that will help the region attain these investments, design national broadband plans, and create the public-private partnerships needed to expand coverage for all citizens, especially those who are most vulnerable,” he added.

To close the gap, countries in the region would need US$68.5 billion, according to the IDB. Of the total, 59 per cent should go to improving connectivity in urban areas, something which is mostly handled by the private sector.

In contrast, 41 per cent would go to rural areas, where public investment is typically the main source of funding. According to the study, more public-private partnerships were needed to close the divide with OECD countries.

Based on the index’s results, the report has recommended that for Caribbean countries, there should be greater investment in infrastructure and in updating regulatory frameworks.
(IMC1)