IDB study states $68.5 billion needed to close gap with OECD

As per the new study by the Inter-American Development Bank - IDB, the digital connectivity gap with members of the Organisation for Economic Cooperation and Development - OECD is reduced, then the Latin America and the Caribbean Region can increase the employment rate and jump-start sustainable economic growth.

Regional: As per the new study by the Inter-American Development Bank – IDB, the digital connectivity gap with members of the Organisation for Economic Cooperation and Development – OECD is reduced, then the Latin America and the Caribbean Region can increase the employment rate and jump-start sustainable economic growth.

Over 15 million direct jobs, regional economic growth (GDP) by 7.7%, and increase productivity by 6.3% would be generated if this gap between the OCED nations is closed.

The Annual Broadband Development Index Report evaluated that the
the state of broadband entrance in 26 nations in the region and determines the size of the gap opposite organisation for the nations of Economic Cooperation and Development – OECD.

IDB president Mauricio Claver-Carone asserted that “Delays in developing connectivity and digitalisation in Latin American and Caribbean regions have intensified the economic and social impact of COVID-19 mutant.”

“But this reality also gives a historic opportunity to overcome inequality and create jobs and sustainable economic growth.”

Claver-Carone further noted that IDB is initiating every measure to manage a digital ecosystem that would assist the region in achieving these investments, designing the national broadband plans, and generating the public-private alliances needed to increase coverage for every citizen.

It is estimated that if the region has to close the gap, it would require $68.5 billion, as per the new study of the IDB.

Out of this amount, its 59 per cent must be utilised to improve connectivity in urban areas and in contrast, 41 per cent must be alloted to the rural areas. The study further shows that more major public-private partnerships are required to close the gap with OECD nations.

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