Digital Economy Policy in Developing Countries

The digital economy – that part of economic output derived solely or primarily from digital technologies with a business model based on digital goods or services – is of increasing importance to developing countries. Yet digital economy reality is undershooting its potential in these countries, due to a series of challenges. Digital infrastructure is in part incomplete, costly and poorly-performing. The wider digital ecosystem suffers a shortfall in human capabilities, weak financing, and poor governance. Growth in the digital economy is exacerbating digital exclusion, inequality, adverse incorporation and other digital harms. Alongside explaining these challenges, this paper overviews the policy objectives and measures, and processes and structures necessary to enhance digital economy growth and its contribution to socio-economic development.