New Global Index Defines What Makes Digital Economies More Trusted

The “Digital Intelligence Index” by Fletcher School at Tufts University shows that in emerging and developing economies such as Kenya, there is strong and growing digital demand – one example is that of social media use and mobile payment adoption.

In the Index done in partnership with Mastercard, governments in such digital economies need to do more to nurture their digital economies and instill trust in their emerging digital ecosystems.

The Middle East and Africa region are emerging as a hotspot for digital demand, with nations like Kenya leading the way.

The Sub-Saharan African region, on the other hand, has led a mobile money revolution, making two-thirds of the world’s 37 billion mobile money transactions in 2019.

In Africa, the two largest economies, Nigeria and South Africa remain in the Watch Out category where young people in these emerging markets are demonstrating high levels of digital engagement, a bright spot for governments attempting to expand digitalization in their economies.

“The pandemic may be the purest test of the world’s progress towards digitalization. We have a clearer view of how dynamic digital economies can contribute to economic resiliency during a time of unparalleled global turmoil and can be positioned for recovery and change,” Bhaskar Chakravorti, Dean of Global Business at The Fletcher School said.

With nearly two-thirds of the world’s population online today, the world is entering an ‘after access’ phase, where access alone is not enough.

Aspects such as the quality of access, effective use of digital technologies, accountable institutions, robust data governance policies, and fostering trust are greater factors in determining digital competitiveness and sustainability.

Young people in emerging economies are demonstrating high levels of digital engagement, a bright spot for governments attempting to expand digitalization in their economies.

“Never before has there been such an acute need to understand the factors that drive digitalization and digital trust. With that knowledge, businesses and governments can work together to help all 7.6 billion people around the world benefit from the vast opportunities a digitally advanced economy can bring,”  Ajay Bhalla, president, Cyber & Intelligence, Mastercard said.

Mapping 95% percent of the world’s online population and drawing on 12 years of data, the Digital Evolution scorecard measures 160 indicators in 90 economies across four key pillars: institutional environment, demand conditions, supply conditions, and the capacity for innovation and change.

Singapore, United States, Hong Kong[2], South Korea, Taiwan, Germany, Estonia, UAE, Israel, Czech Republic, Malaysia, Lithuania, and Qatar – are both highly digitally advanced and exhibit high momentum as stand out economies.

Economies such as Sweden, the United Kingdom, Netherlands, Japan, and Canada – are mature digital economies with a high state of digital adoption despite slowing digital momentum. They tend to trade off speed for sustainability and are typically invested in expanding digital inclusion and building robust institutions.

Economies such as China, India, Indonesia, Poland, and Russia – are evolving rapidly along with Kenya, Cameroon, Ivory Coast, Rwanda, Tanzania, and Ghana. With such momentum and significant headroom for growth, they are often highly attractive to investors.

Economies such as South Africa, Nigeria, Uganda, Ethiopia, Namibia, Colombia, Peru, Pakistan, and Sri Lanka – have a number of infrastructure gaps. Despite this, young people are showing enthusiasm for a digital future with the increased use of social media and mobile payments.

The link to the full report is here.