The Organization for Economic Cooperation and Development (OECD) calls for action to capitalize on digital transformation. It highlights that now, more than ever, international cooperation and coordination are crucial in different socioeconomic areas of Latin America to preserve social cohesion.
Digital transformation can play an important role in turning the Covid-19 crisis into a new opportunity for development and addressing the region's difficulties, says the OECD in the recent report "Latin America and the Caribbean Economic Outlook 2020".
The report explores Five tools for recovery, since digital innovation can help address the current socioeconomic situation, boost productivity, strengthen institutions and achieve higher levels of inclusion and well-being.
First, the document argues that “the region is characterized by the predominance of micro and small businesses “Digital tools can help boost productivity and increase competitiveness, especially for companies that are lagging behind. Policies should therefore aim to support the adoption of technological tools with comprehensive digital ecosystems.”
Secondly, it is necessary to address digital gaps so that the benefits of digital transformation reach everyone. The adoption of digital technologies focused on people's needs can increase the quality of life in households and, therefore, improve the well-being of Latin American societies, while promoting sustainable environmental development.
The report cites, thirdly, the digital technologies. These will offer both opportunities and challenges to the labour market. It notes that in the region, some jobs are at high risk of automation, while others will experience substantial changes in the way they are performed. And it suggests that “productivity-enhancing policies must play an important role in addressing market needs and thus ensure a smooth transition by adopting new jobs and leaving obsolete jobs behind.”
Fourthly, to ensure that the benefits of digital transformation In order to ensure that women's skills are used at home and at work, it is necessary to promote appropriate skills at the early stages of life and throughout life. The document highlights that a significant proportion of women do not have experience in the field of computing, in other words, they have fewer skills. The organisation therefore suggests that action be taken at a national level; these political measures must be coordinated so that they become a decisive factor in achieving greater well-being.
Additionally, the OECD states that the Covid-19 crisis makes it necessary to international development“The challenges are cross-border in nature and therefore there are areas that require greater international cooperation. These include regulation and standards, investment, trade, digital security or tax challenges arising from the digitalisation of the economy,” the report details.
“For such international cooperation, The region already has several platforms “There are other areas on which it can build, such as the Digital Agenda for Latin America and the Caribbean (eLAC),” the publication states. It also maintains that “the transfer of experiences from the OECD and the European Union to the region must be strengthened.”
In addition, it details that the idea, inspired by the European Union's Digital Single Market, has taken hold at the subregional level. Pacific alliance has its own digital agenda. Similarly, in Central America, the countries of the Mesoamerica Program, in collaboration with the Regional Technical Commission of Telecommunications (COMTELCA) of the Central American Integration System (SICA), are initiating activities to establish a regional digital agenda with aspirations similar to those of the Pacific Alliance. Caribbean community (CARICOM) has been promoting the Single ICT Space project. Other regional or subregional cooperation mechanisms, such as the Asia Pacific Economic Cooperation (APEC), the Organization of American States (OAS), the Mercosur and the Trans-Pacific Partnership (TPP) have adopted digital development plans and agendas or have included measures that promote the development of the digital sector in Latin America and the Caribbean.
In this regard, the OECD insists that “The potential for regional cooperation and interregional alliances should be explored. Digital transformation alone will not solve development problems.” Therefore, he points out that “to take advantage of the benefits of digital technologies, greater cooperation must be adopted on broader issues, so that these technologies can be used in an inclusive, sustainable and socially responsible way. The countries of Latin America and the Caribbean must not miss this opportunity to adopt a sustainable digital transformation.”
"This crisis requires a global response. "International cooperation and new alliances are more important than ever to make the most of the digital transformation," the OECD emphasises.
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