DIGITAL FOR CARIBBEAN DEVELOPMENT A Discussion Paper #D4CD Digital for Caribbean Development 2 Digital for Caribbean Development ACKNOWLEDGEMENTS This discussion paper is a product of the Department of Economics of the Caribbean Development Bank (CDB) and was prepared by Mrs Donna Kaidou-Jeffrey (Lead Author and Economist), Raquel Frederick (Research Analyst), Wayne Elliott (Research Analyst) and Dindial Ramrattan (Statistician) under the guidance of Dr. Justin Ram, Director of Economics. It has had the invaluable contributions of colleagues from the CDB including: Ronald James (Economist), Dr. Idamay Denny (Portfolio Manager-Social Sector Division), Douglas Fraser (Head of Procurement), Kevin Hope (Economist), Amos Peters (Economist), Paul Murphy (Operations Officer – Social Sector Division), Julio Cesar Gonsalves Lima (Chief Information Officer), Lothar Mikulla (Corporate Communications Officer) and Sonia Hampden (Secretary, Economics Department). We also appreciate the input and thoughtful reviews of: Jan Yves Remy (Deputy Director, Shridath Ramphal Centre, University of the West Indies), Jennifer Britton (Deputy Programme Manager, Information Communication Technologies for Development, CARICOM Secretariat), Casimiro Dias (Advisor, Health Systems and Services, Caribbean Sub-regional Programme Coordination, PAHO), Michele Marius (Director, ICT-Pulse), Christopher Williams (GIS Specialist, Organisation of Eastern Caribbean States) and Klao Bell-Lewis (Communication Specialist). 3 Digital for Caribbean Development TABLE OF CONTENTS List of Figures and Tables – 2 Acknowledgements – 4 Abbreviations – 5 Executive Summary – 8 Introduction – 13 CHAPTER 1: The State of the Digital Ecosystem in the Caribbean – 16 1.1 The Digital Ecosystem as a Foundation for Transformation – 17 1.2 The State of the Regional Digital Ecosystem – 17 1.3 Regional Readiness – 28 4 Digital for Caribbean Development CHAPTER 2: Digital Solutions for Development – 30 2.1 Building Resilient Societies – 31 2.2 Competitiveness and Productivity – 44 CHAPTER 3: A Roadmap for the Region – 53 3.1 Introduction – 54 3.2 Digital Skills and Literacy – 56 3.3 Infrastructure – 56 3.4 Regulation, Legislation and Data Governance – 59 3.5 e-Government – 60 REFERENCES – 57 5 Digital for Caribbean Development LIST OF FIGURES AND TABLES Box 2.1 e-Procurement in the Public Sector 34 Box 2.2 e-Estonia 36 Box 2.3 Digital Transformation in the Region – the Case of the Caribbean Examinations 39 Council Box 2.4 The Case of SONAR in Disaster Management 40 Box 2.5 Case Study: Digitising Fiat Currencies in the Caribbean 43 Box 2.6 Digitisation of PATH Payments in Jamaica 44 Box 2.7 The Barbados Regulatory Sandbox 45 Box 2.8 Digital Caribbean Settlements Network 46 Figure 01 Percentage of Individuals using the Internet (%) 20 Figure 02 Estimated Broadband Access Costs in 2016, % Gross National Income per Capita 21 Figure 03 Fastest Broadband Package by Advertised Download Speed for Under USD60 in 22 Select Caribbean Countries Figure 04 Main Domains of e-Government 33 Figure 05 e-Administration Programmes in the Caribbean 33 Figure 06 EGDI Rankings for CDB BMCs 2018 35 Figure 07 Digital Trends in Education 39 Highlight #1 The Vision for CARICOM Single ICT Space 26 Highlight #2 OECS Electronic Government Regional Integration Project 37 Table 1 Key Technologies of the Fourth Industrial Revolution, and Illustrative Development 12 Table 2 National ICT and Digital Legislation and Policies in the BMCs 24 Table 3 Comparable Education Indicators in the IDI, 2017 Table 4 Examples of New and Redundant Roles 38 6 Digital for Caribbean Development ABBREVIATIONS 4IR Fourth Industrial Revolution HIPCAR Harmonisation of ICT Policies, Legislation and Regulatory Procedures AI Artificial Intelligence ICT Information and Communications AML/CFT Anti-Money Laundering and Counter Technologies Terrorism Financing IDB Inter-American Development Bank AR Augmented Reality IDI ICT Development Index ASYCUDA Automated Systems for Customs Data IoT Internet of Things BMC Borrowing Member Country ITU International Telecommunications CAPE Caribbean Advanced Proficiency Union Examinations KYC Know Your Customer CARCIP Caribbean Regional Communications Infrastructure Programme LTE Long Term Evolution CARICOM Caribbean Community M2M Machine-to-machine CDB Caribbean Development Bank Mbps Megabits per second CSEC Caribbean Secondary Education NASA National Aeronautics and Space Certificate Administration CXC Caribbean Examinations Council OECS Organisation of Eastern Caribbean States DEWA Dubai Electricity and Water Authority OOP Only-once principle DFS Digital Financial Services p.c. Per Capita DXCD Digital Eastern Caribbean Dollar PATH Programme of Advancement through ECCB Eastern Caribbean Central Bank Health and Education ECCU Eastern Caribbean Currency Union PSMP Public Sector Modernisation ECTEL Eastern Caribbean Telecommunications Programme Authority RTA Regional Trade Agreement EGDI E-Government Development Index SDGs Sustainable Development Goals EGRIP Electronic Government Regional UNCITRAL United Nations Commission on Integration Project International Trade Law Findex Financial Index UNCTAD United Nations Conference on Trade FINTECH Financial Technology and Development G2P Government-to-Person UN DESA United Nations Department of Economic and Social Affairs GATS General Agreement on Trade in Services UNVR United Nations Virtual Reality GATTS General Agreement on Tariffs and Trade VR Virtual Reality GDP Gross Domestic Product WIPO World Intellectual Property Organisation GNI Gross National Income WTO World Trade Organisation GOJ Government of Jamaica XCD Eastern Caribbean Dollar GWAN Government Wide Area Network 7 Digital for Caribbean Development 8 Iceland 8.98 COMPARABLE ICT DEVELOPMENT ICT DEVELOPMENT INDE2017 DEVELOPMENT ICT DEVELOPMENT ICT COMPARABLE UICK FACTS - The economies are open and vulnerable to environmental andglobaleconomicshocks. openandvulnerabletoenvironmental The economiesare tocommodityexporters. withamixofservice-based economicallydiverse providers The BMCsare ECONOMIC CONTET 0 1 2 3 4 5 6 7 Iceland 1 Korea (Rep.) Switzerland Denmark United Kingdom Hong Kong, China 2 Netherlands 0 Norway 14 Dutch, EnglishandFrench 3 officiallanguages Languages and CentralSouthAmerica theCaribbean, across Scattered 19 countries Geography Luxembourg Japan Sweden Germany New Zealand Australia France United States Estonia 2 Singapore 0 Monaco 15 Ireland Austria Comparative growthrates(%),2014-2018 Finland Israel Malta Belgium Macao, China Spain Cyprus 2 Canada 0 Andorra 16 Bahrain Belarus 7 Slovenia B . A 31 Out of189countriesinthe2018HDI Ranks between54and168 Human Development inHaiti of which11millionare 17 millionpeople Population BAR R Latvia 7.24 Croatia SKN SKN Greece Qatar 2 United Arab Emirates 0 Lithuania 17 Uruguay Czech Republic Portugal Russian Federation Slovakia Italy Hungary Poland Bulgaria 2 0 Argentina 18 Kazakhstan O Wor E A Brunei Darussalam C m d D Saudi Arabia t h v B BM e Serbia e an l r 6.51 d BAH r Chile g S c BAH i n ed ma C Romania g s Moldova ma ec l Costa Rica l S o Montenegro r tates ket Oman n o Malaysia m Lebanon an i Azerbaijan es d Brazil d Turkey 6.04 TT e TT v TFYR Macedonia e l Jordan o (BZE) Belize Kuwait p i GRE n Mauritius 5.8 GRE g Georgia ec 5.71 ANT Armenia o ANT n 5.69 DOM DOM o m Thailand i Ukraine es China 5.54 Iran (I.R.) SVG SVG Bosnia and Herzegovina Colombia Maldives Venezuela 5.15 SUR Mexico SUR Albania (CAY) Islands Cayman Seychelles Mongolia South Africa Cape Verde Panama Uzbekistan Peru the Bahamas(BAH) Commonwealth of 4.84 Ecuador JAM JAM (JAM) Jamaica Tunisia Morocco Others Philippines 32% 10% Algeria HAI 4.63 Egypt SLU SLU Share ofregional economic output Botswana Dominican Rep. BAH Fiji 13% Viet Nam Kyrgyzstan Tonga (HAI) Haiti Indonesia Bolivia Paraguay Gabon JAM Libya 18% 28% Ghana TT Sri Lanka Islands (TCI) andCaicos Turks Namibia 3.71 El Salvador BE BZE Bhutan Timor-Leste 3.44 Palestine GUY GUY St. Vincent and the Granadines (SVG) (SVG) St. VincentandtheGranadines Guatemala Syria Samoa Cambodia (SKN) St. KittsandNevis Honduras Nicaragua Côte d'Ivoire S. Tom Principe Lesotho India Myanmar Montserrat (MON) Zimbabwe Islands (BVI) British Virgin Cuba (GRN) Grenada Kenya Saint Lucia (SLU) Saint Lucia Lao P.D.R. Nepal Vanuatu Senegal Nigeria Gambia Sudan Anguilla (ANG) Zambia Bangladesh Pakistan Cameroon Mozambique Mauritania Antigua andBarbuda(ANT) Uganda Dominica (DOM) Dominica Rwanda (TT) andTobago Trinidad Kiribati Mali Togo Solomon Islands Djibouti Barbados (BAR) Afghanistan Guyana (GUY)Guyana Angola Benin Burkina Faso Equatorial Guinea Comoros Tanzania Suriname (SUR) Guinea 1 Malawi H . 72 HAI A I Madagascar Ethiopia Congo (Dem. Rep.) Burundi Guinea-Bissau Chad E 0 Central African Rep. ri . t 96 Eritrea re a Iceland 8.98 COMPARABLE ICT DEVELOPMENT ICT DEVELOPMENT INDE2017 DEVELOPMENT ICT DEVELOPMENT ICT COMPARABLE UICK FACTS - The economies are open and vulnerable to environmental andglobaleconomicshocks. openandvulnerabletoenvironmental The economiesare tocommodityexporters. withamixofservice-based economicallydiverse providers The BMCsare ECONOMIC CONTET 0 1 2 3 4 5 6 7 Iceland 1 Korea (Rep.) Switzerland Denmark United Kingdom Hong Kong, China 2 Netherlands 0 Norway 14 Dutch, EnglishandFrench 3 officiallanguages Languages and CentralSouthAmerica theCaribbean, across Scattered 19 countries Geography Luxembourg Japan Sweden Germany New Zealand Australia France United States Estonia 2 Singapore 0 Monaco 15 Ireland Austria Comparative growthrates(%),2014-2018