Closing the digital divide to combat poverty in Latin America and the Caribbean

A boy does homework on a mobile phone at home.Pollyana Ventura / Getty Images

The digital economy, connectivity and the possibilities offered by remote work emerged for broad social and economic sectors in Latin America and the Caribbean as a safeguard against the devastating effects of the COVID-19 pandemic.

But not everyone has that possibility.

Internet broadband access is less than 50% in the region, which translates into digital exclusion and fewer opportunities for many.

There has been talk of the "digital poor" for some time.

In times of coronavirus, this means that millions of people do not have access to remote employment opportunities, online vocational education and training, or financial services, among other benefits.

The nature of work is changing and there are trends that will persist even after the pandemic.

Digital platforms, for example, offer previously unthinkable opportunities for professionals and service providers as well as independent workers and small producers and traders in rural communities.

In addition to the national market, there are enormous possibilities to offer products and services in the international market.

But to get on the digital economy train, it will be essential to expand connectivity.

The recent World Bank report

highlights, among other things, the vital importance of drastically expanding Internet access and the penetration of smart telephony in the new work environment.

Unfortunately, ours lags behind other regions of the planet.

It exhibits a digital divide that, instead of promoting equality, tends to exacerbate inequities.

Closing that gap, promoting the creation of human capital and opening opportunities in the labor market of the future to the enormous mass of workers that today make up the informal economy, heavily hit by the pandemic, are urgent challenges.

Since 1993, on October 17 of each year we observe the International Day for the Eradication of Poverty.

It is a good opportunity to highlight the challenges of this new form of exclusion, which is urgent to remedy if we want to take the necessary steps for inclusive growth in the region, which offers opportunities for all and a way out of poverty for the most vulnerable sectors.

Latin America has been hard hit by the pandemic, with a projected fall in regional GDP in 2020 of 7.9%.

Some 25 million jobs could disappear.

In terms of poverty, we will have lost a good part of the gains made during the last two decades.

According to our estimates, included in the semi-annual report

, released days ago, more than 50 million people could fall back into poverty this year.

It is a frankly bleak scenario, aggravated by the limited fiscal capacity that the countries of the region have today.

All connected

Job creation is the most effective way to eradicate poverty.

It is therefore essential to energize the economies of the region as we face the post-pandemic recovery.

This requires promoting production, trade and the supply of services, activities that to a large extent already have a digital base.

But, to take advantage of the growth opportunities that exist in many sectors of the economy, it will be necessary to promote innovation, improve productivity and, above all, give a strong boost to digital inclusion.

Sales through e-commerce platforms, online services, and the survival of thousands upon thousands of small and medium-sized businesses during the social distancing stage were made possible by access to the Internet in millions of households.

Many more must be connected.

The World Bank approved a $ 94 million program in June to support digital transformation and inclusion in the Caribbean.

In addition, a few days ago a digital acceleration project for Haiti was given the green light, with funds of 60 million dollars.

And in Brazil we are advising the Government on the registration of informal workers through the use of digital identity systems, so that they can receive financial assistance.

The reconstruction phase of our countries will require more programs like these.

In the midst of the emergency, the governments of the region will have to make a very efficient use of limited resources.

Direct assistance to the most vulnerable sectors will probably be necessary for some time to come, and it will also be essential to reduce public debt to sustainable levels.

These priorities will compete with key investments to create jobs and develop the infrastructure to rebuild economies, as well as essential support to improve Internet connectivity and broadband access.

The benefits will be both immediate and long-term.

Guaranteeing better access to the Internet for all is equivalent to multiplying the educational, training and employment possibilities of the population.

In other words, equip it with more tools to face the enormous challenges of the future.

Carlos Felipe Jaramillo

is Vice President of the World Bank for the Latin American and Caribbean region.