The economy is one of the core functions of a nation. Depending on its economic status, the development of a country is determined. In the modern world, falling back on the economy means falling back on the international market and, therefore, falling back on its socio-economic structure. The economy is a very powerful tool that can influence numerous other driving factors necessary for development. In that sense, perhaps it won’t be wrong to say that the economy is the wildcard for development, especially at a time when the market and subscriber demographic reaches far beyond the domestic scope.
As we enter the last half of 2022, it must be noted with utmost significance that the world has evolved further with technology. Most things that have not been digitized yet are now considered obsolete and outdated. Considering the international scenario, the world has brought about severe modifications and adjustments to its economic system. It is especially true for most 1st world countries. From stock exchange to agriculture and even retail are now adapting to technological advancement. The economic infrastructure and atmosphere have been brought under the wide net of digitization and technical norms.
The digital economy emphasizes the possibility and necessity for enterprises and people to use technology to perform jobs better, quicker, and in many cases, differently than previously. Don Tapscott, a Canadian financial specialist, released The Digital Economy in the mid-1990s, warning that the internet and digitized information might affect the future of business and commerce. Time has shown the author correct: technology has revolutionized not only how businesses do business but also how personal financing has been modified and adapted to this environment. With that being said, The application of data technology to develop, adapt, market, or utilize goods and services is referred to as the “digital economy.” Online banking, e-commerce, remote education, smartphone apps, and collaborative platforms are examples of digital innovations out of numerous others.
In the contemporary world, people are increasingly adopting smartphones, tablets, smartwatches, and wristbands, and other mobile Internet gadgets to connect to the global environment at any time and from any location. Millions of people all over the world may use digital infrastructure to purchase and sell products and services. According to Thomas Mesenbourg, a US economist and statistician, three factors separate the digital economy from the traditional economy. These are- Digital Infrastructure, E-business, where digital platforms are created to facilitate a virtual marketplace for similar transactions, and E-commerce, which is basically the concept of exchanging goods using the internet.
As the “Internet of Things,” artificial intelligence (AI), VR technology, blockchain, self-driving vehicles, and other technologies advance, the digital economy will become increasingly important. With that in mind, the advantages of the digital economy can be described like this:
Information: Consumers have much more information to make purchasing decisions regarding goods and services, not solely from manufacturers and corporations but also through other consumers via forums and reviews.
Proximity: Customers may address inquiries and concerns with a service provider or a manufacturer more rapidly when they use direct customer care channels.
Global Presence: Companies may access additional markets now that goods and services are available to consumers at all times and from any location.
Security: Digital technology, such as robust authentication for online payments, improves transaction security.
There are other advantages of such a digital ecosystem. The ones mentioned above are just some of the most essential.
As a result of the strive of nations to become effective in the digital economic system and infrastructure. These initiatives include the ones like Association of South-East Asian Nation (ASEAN) Connectivity initiative, the Central Asia Regional Economic Cooperation (CAREC) Program, the Greater Mekong Sub-Region (GMS) Cooperation Program, the South Asia Sub-regional Economic Cooperation (SASEC) Program, and the Belt and Road Initiative (BRI). Out of all these, the Belt and Road initiative has been the most significant in pioneering a digital economic environment.
Out of these initiatives, perhaps the one carrying the most weight in recent times is the Belt and Road Initiative or BRI. BRI is a transcontinental long-term strategy and investment initiative aimed at infrastructure development and the acceleration of countries’ economic integration.
According to the official outline, the Belt and Road Initiative (BRI) aims to promote connectivity of the Asian, European, and African continents and their coastal regions, to demonstrate and enhance cooperation amongst some of the countries on the Belt and Road, to build all-dimensional, multi-tiered, and reinforced connectivity networks, and to achieve diversified, independent, balanced, and sustainable growth and development in these countries.
From 2009 to 2019, the expansion of the digital economy in nations along the “Belt and Road” exhibited an increasing trend. The majority of the top ten nations are in East Asia, Southeast Asia, and Central and Eastern Europe, but not in South Asia or Central Asia. Despite ranking sixth on the list, China’s digital economy’s comprehensive score improved fast between 2009 and 2019. This suggests that China has given greater emphasis to the digital economy in recent years by extending the increasing popularity and utilization of information technology. As a result, the digital economy industry’s international competitiveness has gradually improved.
The instances mentioned above are just examples of how numerous countries are adopting the digital ecosystem and how it’s actually boosting the growth of their economy. With all that in mind, it must be said that it is imperative for Bangladesh to step into this regime for economic growth and an unobstructed future. The telecommunications sector, financial companies, pharmaceutical companies, and the ready-made garments (RMG) industry all began to implement large-scale business process automation projects, resulting in a substantial increase in the number of local software developers in the following few decades following the creation of BASIS. In 2017, more than 250 Bangladeshi enterprises supplied ICT services to more than 60 countries worldwide, totaling $800 million, or around 2.2 percent of Bangladesh’s overall export value. According to USAID, North America is Bangladesh’s top ICT outsourcing export destination, followed by the United Kingdom and other European nations such as Denmark and the Netherlands.
Despite the fact that the early years were tough, the race to implement ICT in public administration has been part of the docket since late 1996. Bangladesh began to make major infrastructure investments in 2006, connecting to the ‘Information SuperHighway’ through an optical fiber undersea connection. The Bangladesh Telecommunication Regulatory Commission (BTRC) recently auctioned up the 4G wireless frequency spectrum for a record $46.75 million/MHz for 15 years in March 2021. Because the majority of consumers in Bangladesh receive ICT services via mobile networks, it is critical that the network be strong, mobile broadband pricing be reasonable, and telecommunications be of excellent quality.
However, as much as the country may have progressed into this world, Bangladesh still lacks and is backlogged quite a bit in terms of fully implementing a digital ecosystem in the economic structure. The problems which are to be blamed in this respect are very rudimentary to say the least. Inadequate access to cutting-edge technology, advanced telecommunications infrastructure, limited computer proficiency, and a slew of cultural and socio-economic considerations are just a few of the issues confronting the country.
Further development with a digital ecosystem is also affected by international relations and market systems. As of now, Bangladesh, despite having made efforts to progress in establishing a full-proof digital ecosystem, is still largely befuddled with a plethora of setbacks. Overcoming them and implementing a fully digitized economic infrastructure in every major factor of the country is now a demand of time. With the rest of the world still striving toward further development of electronic and digital infrastructure, Bangladesh has to compete on an equal level in order to maintain its position as a rising economic powerhouse. Given the recent growth, it is absolutely possible to further digitize Bangladesh where it can compete on the international scale but with further careful modifications.
The country’s economy as a whole by creating and popularizing digital payment, it is possible to boost the country’s digital economy by ensuring the uniformity of money transfers, revising travel quotas, rolling out prepaid cards, amending current restrictions on foreign exchange remittance and KYC procedures, and so on. Bangladesh has already made significant progress with Vision 2021. This, in turn, shows a ray of optimism ever since the government, regulators, stakeholders, and prominent organizations such as BASIS and e-CAB are all working toward the same goal of an enhanced digital economy.
Author- Shiddhartho Zaman
