UNCTAD intergovernmental group of experts on e-commerce and the digital economy
14 October 2020
I bid you welcome to this session of the intergovernmental group of experts on e-commerce and the digital economy. The importance of this forum has never been greater. The pandemic has made us all acutely aware of the value of digital technologies mitigating travel restrictions and social distancing measures put in place across the world.
Our surveys show that more people are shopping online and relying on the internet more than ever before. Yet persistent digital divides mean that far from all are in a position to take full advantage of these digital opportunities. The recovery from the pandemic makes it even more important for countries to enhance their digital readiness so as to be able to participate effectively in the evolving digital economy.
The focus you have chosen for this session is about value creation and capture in the digital economy, an issue we highlighted one year ago in the Digital Economy Report 2019, but which has become even more critical since the outbreak of the COVID-19 pandemic.
Today, the dominant role played by the global digital platforms has been accentuated amidst the crisis, as most of the digital solutions that are being used to cope with the pandemic are provided by a few major companies, most of which based in the United States or China. An impressive signal of this dominance is that while overall stock market performance has been down during the crisis, the value of these digital platforms has surged.
The need to address digital divides and weaknesses in the digital economies of member States has become even more acute. For a “better recovery”, the digital dimension must be kept high on the policy agenda, and policy responses must balance the opportunities with the risks involved.
Technology is not deterministic. It is up to governments, in close dialogue with other stakeholders, to shape the digital economy by defining the rules of the game and taking action at both national and international levels. Differences in digital readiness and the high concentration of market power in the digital economy call for a structural reform of policies and regulations aimed at ensuring a fair distribution of the gains from digital disruption. Already we are seeing that first serious attention to this matter before the US Congress.
There are few simple solutions, and even fewer that are tried and tested. These policy challenges are complex and call for smart solutions that chart new pathways towards consensus. In some areas there is a clear need for responses at the regional or global level. For example, we need novel international solutions on digital competition, digital taxation, digital data and digital trade policies. Finding suitable responses will require effective international collaboration and policy dialogue, with full involvement of all countries.
Importantly, international collaboration and policy dialogue must address the unequal gap between digital producers and digital consumers, if the digital economy’s development potential is to be realized. It is clear, for example, that finding global consensus will require including significant flexibilities accounting for the variation in digital readiness. But it is precisely when facing disruptions – whether resulting from a global pandemic or from technological change – that we most need to come together as one and work together. I wish you every success with your deliberations. Thank you.
