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The Conditions for Development Cooperation for the Digital Transformation in ASEAN Member States

Author Lim Soyoung(임소영) Date 2020.06.30 Series
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It is recognized by governments, industry and academia that the digital transformation will dramatically change the growth paradigm around the world, but this change will not be uniform across countries and among individuals. Differences in the benefits derived from digital technologies and the conditions of their use vary considerably depending on a country’s income level. So what might the digital transformation look like in developing countries? And how to respond? As the issue of global development through the digital transformation has arisen, it is necessary to find ways to cooperate that acknowledge the conditions faced by developing countries.

Developing countries face conditions that are quite different from those of developed countries in realizing the digital transformation, which requires a different approach. First of all, there is still a wide gap between advanced and developing countries in terms of digital technology consumption, but developing countries can experience leapfrogging, unlike advanced countries. This occurs especially in areas where large-scale infrastructure investments are required, including the ICT or digital sectors. As a result, many developing countries are able to skip directly to mobile communications without building infrastructure for landlines. In addition, unlike advanced countries, in which digital technology markets are mature, markets in developing countries are rapidly expanding, and the prospects for digital technology utilization projects in developing countries are bright.