Center for International Institutions Research BRICS Challenges for

Center for International Institutions Research BRICS. Challenges for Digital Economy Development Alexander Ignatov, Junior Research Fellow Center for International Institutions Research (CIIR) E-mail: ignatov-aa@ranepa. ru

Center for International Institutions Research Digital Economy: Basic Notions • Digitization - the mass adoption of connected digital services by consumers, enterprises, and governments [WEF, 2013]; or the incorporation of data and the Internet into production processes and products, new forms of household and government consumption, fixed-capital formation, crossborder flows, and finance [IMF, 2018] • Digital Economy - the value of all economic activities that are undertaken on or supported by the Internet [OECD, 2013]

Center for International Institutions Research Digital Economy: Major Indicators • E-commerce (2017): 29 trillion $US; 13% growth • Digital services export (2005 / 2018): 1. 2 trillion / 2. 9 trillion $US; 7% annual growth • Global digital economy (2018): 4. 5 – 15. 5 % GDP • Employment (2015): 39 mln vs 36 Note: UNCTAD estimates, 2019

Center for International Institutions Research Digital Divide: Definition and Indicators • Digital divide - difference in levels of access and use of information and communication technologies (ICTs) and the gaps in access and use of Internetbased digital services 127 96 83 80 Developed countries 40 38 30 9 39 9 Mobile Fixed Broadband Households Internet users networks telephone subscriptions with Internet subscriptions access Note: per 100 persons / households. Source: ITU, 2018 Developing countries (including LDCs)

BRICS OECD Broadband subscriptions 100 FDI Market Openess 90 80 Mobile subscriptions 70 60 50 Digital Trade Restrictiveness Index 40 30 Internet users 20 10 0 Digital services STEM graduates Publications in IT-related spheres, top-cited ICT-related patents Digital economy development indicators in BRICS countries in comparison with OECD countries. Source: OECD, Employment in IT 2019.

Top countries* BRICS 1, 00 0, 90 0, 80 0, 70 0, 60 0, 50 0, 40 0, 30 0, 20 0, 10 0, 00 Digital Adoption Index DAI Business Sub-index DAI People Sub-index DAI Government Subindex BRICS countries average scores in comparison with the top-5 countries according to the World Bank Group Digital Adoption Index (DAI). Source: WBG, 2016. * - Luxembourg, Singapore, South Korea, Austria, Malta

Tetriary gross enrolment ratio Russia Brazil China South Africa India Secondary gross enrolment ratio 5 Mean years of schooling United Kingdom Active mobile-broadband subscriptions 4 Broadband subscriptions Denmark 97. 30 97. 90 98. 30 39. 90 12. 20 118. 56 81. 26 52. 70 124. 90 69. 90 79. 90 95. 10 41. 60 12. 20 97. 73 95. 35 43. 30 133. 20 80. 60 90. 50 89. 80 93. 70 45. 40 13. 40 99. 77 57. 23 25. 10 121. 70 87. 10 93. 70 97. 10 43. 20 12. 70 129. 87 81. 52 50. 10 119. 60 421. 60 91. 70 94. 00 94. 60 39. 30 13. 30 127. 81 56. 48 Internet users 3 Households with Internet access Switzerla nd 490. 60 Households with a personal computer 2 IDI Skills Sub-Index 122. 60 International bandwidth per Internet user (kbit/s) Korea, Rep. of IDI Use Sub-Index 43. 60 Mobile telephone subscriptions 1 Fixed telephone subscriptions ICT Development Index Position Countries Iceland IDI Access Sub-Index *** 45 66 80 92 134 21. 70 157. 90 68. 80 74. 40 76. 30 76. 00 21. 40 80. 80 12. 00 100. 59 78. 65 19. 50 113. 00 29. 00 46. 30 60. 80 67. 50 13. 70 90. 20 7. 80 101. 95 49. 28 13. 70 104. 60 27. 90 55. 00 59. 60 54. 30 28. 00 83. 60 7. 60 94. 30 43. 39 6. 40 162. 00 17. 40 21. 90 60. 70 56. 20 3. 00 70. 00 10. 30 91. 96 19. 38 1. 70 87. 30 25. 90 16. 50 25. 40 34. 50 1. 30 25. 80 6. 30 74. 28 25. 54

N an C us a si SA a et he da rla G nds U e ni te rm a d Ki ny ng do Sw m ed en U kr ai n Fr e an ce In di a Ko re I a, taly R ep. o Tu f rk e Es y Lu ton xe ia m bu rg Br R azil om an ia Ja pa Po n la Pa nd na m Fi a nl a H nd un ga r Ta y iw a N n or w ay e th R U na hi C Country - aim of attack Country - source of attack 10 000 1 000 100

Center for International Institutions Research Prospects and Recommendations • Enhanced practical cooperation to bridge the digital divide • Establishment of a mechanism for information exchange on digital development issues based on Part. NIR • Implementation of the initiative on the BRICS agreement on international information security • Coordination of the group’s approach to digital economy regulation and furthering the common stand in G 20 and the UN

Thank you! Center for International Institutions Research