Remarks by Wencai Zhang, MDCAO, 'Sustainable Development of Digital Economy,' at the 2024 Wuzhen Summit (Annual World Internet Conference)

Distinguished guests, fellow delegates, Ladies and Gentlemen,

Good morning. It is an honor to discuss the transformative potential of digital technology in driving sustainable development. This issue aligns closely with the World Bank Group's vision of a 'World Free of Poverty on a Livable Planet.

The global landscape of digital development is rapidly evolving. Digital technology can be a game-changer for economic development. It can accelerate growth in a sustainable manner. For instance, a 10 percent increase in broadband penetration can increase GDP by 0.25 percent. The opportunities presented by digitization are recognized globally. The United Nations' Digital Compact aims to create a secure, inclusive, and human-centered digital future. It focuses on bridging digital divides, safeguarding rights online, enhancing data governance, and promoting responsible AI development for equitable global benefit. Global cooperation efforts are now critical to implementing the compact.

The integration of technology in development efforts presents numerous opportunities. Digital technologies enhance healthcare delivery, education access, agricultural productivity, infrastructure and financial inclusion. For instance, telemedicine platforms revolutionize healthcare in remote areas, and e-learning solutions bridge educational gaps for millions of children worldwide.

While significant strides are being made, access remains a key concern. In 2022, over 90% of people in high-income countries used the internet, whereas only 25% in low-income countries had access. About 850 million people lack official identification, and 3.3 billion live in countries without official forms of digital identification to sign into online services. This results in denied access to services and economic opportunities, both in-person and online.

In a context where only 15 percent of the 2030 Sustainable Development Goals (SDGs) have been achieved, digital technologies are crucial for accelerating progress towards these goals. Digital technologies contribute to 70 percent of the SDGs. Countries with countries with stronger digital infrastructure and digital affordability have made 40 percent more progress towards achieving the SDGs compared to their peers in the same income group.

New opportunities bring challenges and risks. These include the widening digital divide, cybersecurity threats, data privacy, and the need for robust regulatory frameworks. Addressing these challenges requires concerted efforts. We must ensure the responsible and inclusive use of digital technologies. Prioritizing digital skills is essential. We also need policies that protect users' data and privacy while fostering innovation.

The global community must work together to address the risks and maximize the benefits of digital development. Partnership platforms play an important role. These include MDBs, IFIs, academia, private sector and industry experts. They help develop policy reforms, facilitate joint investments and coordinate digital projects.

By their nature, digital technologies defy national borders. At the national level, governments need to develop policies that promote building a skilled workforce and digital infrastructure. Digitalization relies heavily on economies of scale and network effects, which benefit from integrated markets across borders.

The World Bank's regional integration projects have played a crucial role. They equip countries with essential broadband connectivity and pro-competition legal and regulatory frameworks. From 2007 to 2022, investments in seven regional projects across five regions benefited 38 countries. This includes eight countries affected by fragility, conflict, and violence and five landlocked countries. These projects facilitated new or improved access to broadband internet for 112 million people.

The World Bank Group is redoubling its efforts and commitment. Accelerating digitalization at scale requires more financing, knowledge, innovation, and partnerships from both the public and private sectors. Our digital agenda supports middle-income countries by advancing digital infrastructure and innovation for global competitiveness. It also focuses on expanding basic digital access and reducing the digital divide in low-income countries. Internally, the World Bank is implementing a Digital Transformation Strategy to accelerate the speed and quality of our service delivery. We will leverage the knowledge from this internal transformation to support digital transformation efforts of our client countries.

To address the significant infrastructure gaps essential for digital development in Africa, the World Bank Group is committed to the M300 initiative. In collaboration with the African Development Bank, M300 aims to provide electricity to 300 million Africans by 2030.

Additionally, we are prioritizing gender inclusion to ensure that everyone benefits from digital development. Last month, we announced an expanded effort to enable 300 million more women to access broadband, thereby facilitating their access to financial services, education, job opportunities, and other essential services.

A prime example of supporting local communities is the NOVISSI program in West Africa. Launched in 2020 with the help of the International Development Association (IDA.) IDA is the World Bank's fund that helps the world's poorest countries. NOVISSI leverages digital platforms to provide financial assistance to vulnerable populations. This program demonstrates the power of digital solutions in building resilience.

The digital revolution offers unprecedented opportunities to accelerate progress towards the Sustainable Development Goals by 2030. Realizing these benefits will require collective action and cooperation. Let us work together to harness the power of digital technologies, ensuring they contribute to a more inclusive, equitable, and sustainable future for all.

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