Digital Spillover Is Having Positive Impact On Economic Development

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DIGITAL ECONOMY over a smart phone on blur background , business technology concept
DIGITAL ECONOMY over a smart phone on blur background , business technology concept (Photo Credit: www.shutterstock.com)

The digital spillover effect of ICT (information and communications technology) investment is having a positive impact on economic development, Edward Zhou, vice president global public affairs at Huawei Technologies told delegates at the ongoing International Telecommunication Union (ITU) summit in Durban, South Africa.

Huawei Technologies has published position paper titled: Telco: Investment, Innovation and Competition in the ICT Infrastructure that states that ICT supports societal wellbeing and public affairs.

“It contributes to promoting education accessibility and cultural communication, reducing unemployment rate, ensuring both public and personal safety and security, improving government efficiency and transparency.”

The report stated that the development of ICT is necessary for economic growth.

The position paper conducted a regression analysis on a data set of 125 countries for the period 2010 to 2016, during which 4G mobile network becomes dominating, and concluded that with 16-20% increment in ICT capital services, GDP is about to raise 1%.

The company in partnership with the Oxford Economics has evaluated the magnitude of the digital spillover effect ICT investment. It concluded that every $1 invested in digital technologies over the past three decades has added $20 to GDP, on average.

“This is enormous return compared to non-digital investments, which delivered an average return of about $3 to $1 invested.”

Digital Technologies To Improve People’s Lives – ITU

Huawei’s position paper was support by ITU Secretary General Houin Zhao.

Digital technologies have huge potential to improve people’s lives, Houlin Zhao, ITU Secretary-general told delegates at the ongoing International Telecommunication Union (ITU) summit in Durban, South Africa
“Digital technologies is changing our lives and economies. I think also our society,” said Zhao.

“It has huge potential to improve people’s lives.”

ITU, the UN’s lead agency for information and telecommunications technologies (ICTs), is at the forefront of digital revolution.

Last month, the organisation launched a new ITU Focus Group on Technologies for Network 2030.

The Focus Group will examine how emerging technologies can enhance network capability and constant demand of 5G and innovation.

Zhao said investment in 5G infrastructure is an absolute urgent need.

The ITU Secretary-General also talked about 4i’s to bridge the digital divide, boost economic growth and advance SDGs (the Sustainable Developments Goals, otherwise known as the Global Goal, which are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.

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