Whenever Caribbean policymakers talk about realising a digital economy, they are often greeted with an eye roll. Instead, we outline three things Caribbean governments should do to better position their citizens to harness the potential of the digital economy.

 

In a speech last week, the Prime Minister of Jamaica, the Most Hon. Andrew Holness, was reported to be encouraging Jamaicans to embrace the possibilities that can result from the country’s transition to a digital economy:

…many times booms have come in the digital global economy and we have not been able to ride them. We are now on the upswing of the digital era. Let us take advantage of it… let us not fear it…

…In the coming years, it will be the societies that have embraced technology and used it for innovation that will be the [global] leaders…

…It is clear… that the [transformation to] a digital society is imminent, it is irresistible… and the faster you embrace it and get ahead of it [the better the chances that] you will lessen the digital divide…

(Source:  Jamaica Information Service)

Although the sentiments expressed by Prime Minister Holness are the impetus for this discourse, he is by no means the only political leader, especially in the Caribbean, who has made such statements. However, whenever such views are expressed by policymakers, in many quarters, particularly in the tech space, they are greeted with an eye roll. Why? Because we have heard it so many times before, and by people who, based the views being expressed, seem to know very little about the ICT and how to properly leverage it to achieve the desired impact.

We thus thought it would be opportune – and useful – to focus on what policymakers, in fact, should be doing to help their countries better leverage ICT, and harness the potential of the digital economy.

 

1. Stop talking and start doing

Although Caribbean policymakers tend to be the ones calling for the public “to embrace the digital economy”, “to drive innovation”, and similar thoughts, invariably, their citizens are way ahead of them, and waiting for the country to catch up.

In many instances and across the Caribbean, the ecosystem to support innovation, the digital economy, information societies, etc., remains underdeveloped. As a result, the framework, tools and support that citizens and businesses need to properly leverage technology, have yet been provided. However,  there is a sense that policymakers still expect that the transformation of our societies will still occur although the fundamentals have not yet been put in place.

 

2.  Share a cogent vision and plan for realising a digital economy

In almost any discussion on ICT and technology, terms such as digital transformation, innovation, and digital economy, are likely to be used to describe a country and what is wants to achieve. However, in and of themselves, those terms can be considered generic in their meaning, and can be subject to broad interpretation. Further, use of those terms, without further explanation, can suggest lip service, and an absence of direction, i.e. the specifics of what a country wants to achieve.

Hence, if a country truly wants to realise a digital economy, for example, it should be prepared to indicate what would be the outcomes that would indicate that a digital economy has been achieved. Thereafter, a plan would need to be prepared to determine how best to get from the current situation, to the stated goals.

More importantly, the country would be in a position to share its vision, goals and the plan with its stakeholders and partners. The demonstration of a vision and strategy is likely to augur well for the support needed throughout the implementation, and in turn, could foster greater alignment between, and opportunities for collaboration among, stakeholders towards the stated goals.

 

3.  Urgently resolve the still existing e-commerce and online financial transaction constraints

When a term, such as digital economy is used, the word ‘economy’ points to matters related to money, trade, transactions, finance, etc. However, one of the bugbears of online businesses across the Caribbean region, are the challenges associated with securing online merchant accounts and e-commerce. Typically, online merchant accounts are expensive to secure, and tend to be geared towards large corporates and traditional businesses that want to expand their existing business online. More importantly, micro and small businesses, which make up at least 80% of the businesses registered across the Caribbean, and those that have been conceptualised and operate as online businesses only, tend to be unable to satisfy the requirements prescribed by local commercial banks to secure such a crucial facility.

Although, increasingly, workarounds to the e-commerce challenge are emerging, they are not ideal. Moreover, it also means that the underlying problems – which the Government ought to address – remain unresolved. Hence, Caribbean businesses are not benefiting from the efficiencies that should be realised, and effectively remain less competitive in the global marketplace.

 

 

Image credits:  Gerd Altmann from Pixabay