There are many benefits of the intensive and widespread use of digital technologies. They favor competitiveness, democratize access to information and strengthen the capacities of the public sector, ultimately allowing greater economic growth, higher levels of well-being and better opportunities for all to be achieved.
Likewise, investment in infrastructure has multiple channels through which it affects the quality of life of citizens, the productivity of companies and the efficiency of the economy in general. Its specific impact on job creation is especially relevant due to its link with the policy objectives of creating local economic activity, increasing the income of vulnerable populations, and reducing inequality.
However, the materialization of these benefits has not been possible given the digital and infrastructure gaps that exclude those who do not have access or skills to take advantage of them. In fact, on a global scale inequalities have deepened, social mobility has stagnated and productivity has weakened.
In the specific context of Latin America and the Caribbean, these gaps are especially visible.It is estimated that 32% of the population does not have internet access, 67% of schools do not have sufficient connection speed and 50% of countries do not have an advanced digitization agenda. In general terms, the development of a digital ecosystem is located in an intermediate stage as an expression of the wide range of pending tasks.
Similarly, despite the advances in infrastructure investment in public services such as drinking water, sanitation and electricity made in the region, the heterogeneity in access and quality of services is high. For example: despite the fact that drinking water coverage is around 80% in most countries, less than 60% of people choose to drink tap water. For its part, access to electricity service in the region is above 90% on average; however, there is a high disparity in the quality of the service (intermittency) and its access in rural areas.
In this regard, converting digitization and investment in infrastructure into a vehicle to achieve better economic and social results is a priority for the countries of the region. Even more so because of its direct link with the fulfillment of the Sustainable Development Goals (SDGs):
SDG 1: End of poverty.
SDG 4: Quality education.
SDG 7: Affordable and clean energy.
SDG 8: Decent work and economic growth.
SDG 9: Industry, innovation and infrastructure.
SDG 10: Reduction of inequalities.
SDG 11: Sustainable cities and communities.
SDG 17: Partnerships to achieve the goals.
Specifically, the inclusion of this thematic axis in the 2022-2026 Work Program aims to contribute to the fulfillment of the following goals:
Promote digital inclusion in the region.
Promote regional digital connectivity.
Promote the development of sustainable infrastructure.
Promote the use of green energy.
The digital divides are understood in three dimensions: access, affordability, and quality. To address all of these, the provision of connectivity infrastructure is a necessary condition, albeit not a sufficient one, as an enabling factor for the use and exploitation of technologies.
The main challenges identified to achieve greater deployment of digital infrastructure include stimulating private sector interest in projects with uncertain profitability, promoting regional and international cooperation to leverage technical and financial opportunities, and creating efficient schemes for public-private collaboration.
Furthermore, the adoption of the Paris Agreement in 2015 at COP 21 by 195 countries plus the European Union is undoubtedly one of the greatest efforts ever made by the international community regarding climate change. The Latin America and Caribbean region has seen significant improvements since 2000 in terms of access to electricity, with the proportion of households having access to electricity increasing from 87% in 2001 to 95.1% in 2019. However, these very positive figures can mask significant differences in access between subregions, countries, and social groups.
Moreover, the energy matrix of Latin America and the Caribbean continues to be predominantly fossil fuels (non-renewable energy: oil, gas, and coal) at 70%. Despite this, renewable energies have made progress in recent years. Solar and wind energy increased from 4.1% to 14.4%, and energy derived from sugarcane increased from 19.5% to 28.4% from 2000 to 2019, respectively.
In this context, the development of this program will focus on promoting the achievement of the following objectives:
December 08, 2021
