A real and effective digital transformation can help Latin America and the Caribbean overcome the traps that impede their development

Advancing the real and effective use of digital technologies can become the bridge that allows overcoming development traps in the region, by closing historical inequality gaps and promoting more productive, inclusive and sustainable growth, ECLAC maintains in the document. Overcome the Development traps in the digital age: the transformative potential of digital technologies and AI in Latin America and the Caribbean released today.

“The region has before it the historic opportunity to use digital tools to address the three traps that inhibit its development: a first trap of low capacity to grow, a second of high inequality, low mobility and weak social cohesion, and a third of low institutional capacity and ineffective governance,” states the Economic Commission for Latin America and the Caribbean (ECLAC).

Digital transformation offers a path to strengthen competitiveness, accelerate learning, drive innovation and improve the quality of life of millions of people. But this change will not happen automatically; A joint effort will be necessary involving both governments, the private sector and civil society to ensure that the benefits of the digital era are shared by all, warns the publication that will be officially presented during the Ninth Ministerial Conference on the Information Society of Latin America and the Caribbeanwhich will be held on November 7 and 8 at the ECLAC headquarters in Santiago.

“The digital transformation of the business fabric could improve the efficiency of production processes, optimize supply chains and promote innovation in products and services. Furthermore, digitalization facilitates access to global markets, reducing dependence on traditional sectors and promoting economic diversification necessary for sustainable growth. All of the above would be facilitated to the extent that the countries of the region and their territories manage to articulate their efforts in terms of digital transformation with their productive development policies,” the document explains.

Likewise, the report presented by ECLAC highlights the economic and employment impact of artificial intelligence (AI) in the region. According to estimates made, in 2023 the total economic contribution of AI in 17 countries in Latin America and the Caribbean amounted to 70,748 million dollars, which would represent 1.11% of the GDP, while nearly 44% of the workforce in the region has a high probability of being affected by AI.

According to the new report, although 80% of the region’s urban population has access to the Internet, this percentage falls drastically in rural areas and among lower-income sectors, generating gaps of up to 50 percentage points between the richest households. and the poorest. This shows the urgency of implementing policies that guarantee “meaningful connectivity.” This connectivity is not limited to internet access, but emphasizes quality, affordability and the skills necessary so that people can fully benefit from digital opportunities. When comparing the basic connectivity indicators with other more complex ones that capture these dimensions, it is observed that, despite advances in access, barriers that limit the real and effective use of digital technologies still persist. Resolving these limitations is essential to close gaps and promote more inclusive and equitable digital development, the Commission emphasizes.

Finally, digital technologies and AI can strengthen institutions and governance capacity in Latin America and the Caribbean, improving transparency, efficiency and accountability, through various tools such as the digitalization of government processes and the offer of digital services to the population. This is essential if we consider that 70% of the region’s population expresses distrust in their governments, says the United Nations regional body.

It is expected that the implementation of the new Digital Agenda for Latin America and the Caribbean 2026 (eLAC2026) act as a key instrument so that countries in the region can take advantage of the opportunities offered by digital transformation and AI to overcome development traps. This agenda will be presented for approval during the Ninth Ministerial Conference on the Information Society.

The intergovernmental meeting is held within the framework of the so-called “Digital Week of Latin America and the Caribbean”, since on November 5 and 6, the High Level Dialogues of the European Union-Latin America and the Caribbean Digital Alliance on Artificial Intelligence and Connectivity, organized by the Government of Chile and the European Union.

Both the program and general information on the Ninth eLAC Ministerial Conference are available in the website specially created for the meeting.

The media is invited to fill out this accreditation form to attend the meeting in person. Journalists must carry their media credential or their identity card to have access to ECLAC.