Macroscope | The digital economy is a blessing and a threat

Last month the World Bank released its flagship World Development Report entitled “Digital Dividends”.

Unlike Professor Pangloss in Voltaire’s Candide, the World Bank does not believe that all is for the best in the best of all possible worlds. While few would argue with the good news, the less good news is often not so well understood.

First the good news. According to the report, more than 40 per cent of humanity has access to the internet. Internet use has tripled from 1 billion to 3.2 billion people just in the last decade. Mobile phones are owned by more people in the poorest households than those that have running water, electricity and modern sanitation.

The digital economy has connected people, business and governments in multiple ways, creating a host of new production opportunities, expanded consumer choice, and the scope for entrepreneurship and self-employment. Small enterprises with very few personnel can reach numerous customers in any number of locations through internet platforms.