The COVID-19 pandemic has made it clear to all countries how vital it is to be futureready and that digital transformation is at the core of economic development.
Based on the Digital Sprinters framework developed by Google and selected data from three global indices, the present study attempts to measure the future readiness of 27 emerging economies in Asia-Pacific (APAC), Europe, Latin America, and the Middle East and Africa (MEA), thus developing a first edition of a Future Readiness Economic Index (FREI).
Quantifying Digital Sprinters efforts
The Digital Sprinters framework set forth recommendations for governments, the private sector and other stakeholders across four pillars: (1) Physical Capital, (2) Human Capital, (3) Technology, and (4) Competitiveness. The first part of this report seeks to assess 27 emerging economies’ performance under these pillars, using data accumulated over the last 20 years by three global indices (the Network Readiness Index, NRI; the Global Talent Competitiveness Index, GTCI; and the Global Innovation Index, GII).
Regarding Physical Capital, the top 5 spots are occupied by Singapore and the smaller Gulf Cooperation Council (GCC) countries. However, Internet penetration in some of the 27 countries remains low, suggesting that in the larger, more populated countries, more investments are needed to provide affordable Internet access of good quality to all. The data indicates that investment in physical capital is a prerequisite to digital acceleration, but is not enough on its own.
Regarding Human Capital, it is found that China and India, the two most populous countries in the world, are in the top 7 regarding ‘lifelong learning’ and ‘skills matching for jobs’. When it comes to entrepreneurship Chile, Viet Nam and South Africa score high, ranking in the top 7 alongside Singapore, China and Israel. As for bridging the gender gap, the smaller GCC countries have made progress and are in the top 7 with Singapore, Argentina, Chile and South Africa. Overall, there is however room for improvement as investment in AI female talent remains limited in the group of 27.
Regarding Technology, and considering in particular the adoption of advanced technologies such as Cloud computing, AI and a platforms approach, it is noteworthy that Ukraine, Viet Nam and Thailand are in the top 7, and that China emerges as the leader in the group of 27. Israel is in second position, and Singapore in third. India is in 7th position, after Thailand. It is also interesting to note that there is a clear correlation between Governance and Future Technologies adoption, as exemplified by Indonesia and Israel.
Regarding Competitiveness, most of the Emerging Markets Group of 27 score relatively low on institutions. It is important to keep in mind that, under that heading, the leaders are Singapore and the UAE, both of which also score well globally. Chile, South Africa and Colombia complete the top 5, immediately followed by Qatar (6th) and India (7th). With respect to digital government, it is found that authorities in many of the emerging economies are active in using and encouraging digital technologies, with Singapore, Israel, and the UAE leading the way, followed by Brazil, Saudi Arabia, Russia, and Mexico.