LocationsMissed Connections: An incomplete digital revolution in Latin America and the Caribbean
August 4, 2024
Advances in digital technologies and their cross-cutting applications have driven transformations that are reshaping global economies and societies. The technological revolution also promises great development opportunities, with the potential to positively impact 70% of SDG targets. While the growth of the technology sector in Latin America and the Caribbean (LAC) is remarkable, as shown in a previous #GraphForThought, it remains incomplete. The region still lacks the basic infrastructure for an inclusive digital transition where the benefits of digitalization are accessible to all. Efforts are also needed in education on digital skills and establishing a regulatory framework to ensure these advancements reach all members of society.
This #GraphForThought uses data from ECLAC to examine one aspect of the digital divide in LAC, focusing on household connectivity by income level and across urban and rural households.[1] Internet access is measured as the share of households with a fixed connection at home, relative to all the households in an area or income group.
In 2022, 67.3% of households in the region had internet access, compared to 91.1% in OECD countries. This average conceals significant disparities: only 46.4% of the poorer households in LAC had a fixed connection, compared to 84.6% for wealthier households, with some countries experiencing even greater inequality (Figure 1). In contrast, the gap in OECD countries is smaller, with 82.4% of low-income and 97.7% of high-income households connected.
The urban-rural divide is also stark (Figure 2). Urban households in LAC have double the internet access of rural ones (74.8% vs. 35.8%), with some countries having less than 20% of rural homes connected.[1] However, countries like Chile and Panama have achieved rural internet access levels comparable to the OECD.
Globally, people rely on the internet for various aspects of well-being (such as work, education, or connection). Having fixed internet access significantly impacts children's educational outcomes, and adults' professional futures and opportunities for upskilling. It enables flexible work arrangements, access to financial, health, and government services, and participation in political and social debates.
Countries like Costa Rica, Dominican Republic, and Panamaacknowledge that a lack of internet access contributes to poverty and have included it as a dimension in their national Multidimensional Poverty Indexes. Affordability remains a significant barrier, disproportionately affecting low-income households that cannot afford connectivity fees. Governments may need to significantly scale up relevant funding schemes, such as subsidies, to increase household demand and make service expansion profitable for providers, especially in rural areas.
For digital technologies to be a driver of development, they need to be accessible to all, regardless of income or geographic location. Clear strategies to connect less populated areas and extend internet access to all citizens is essential. Internet access is necessary but not enough. It needs to be accompanied by skill development strategies and regulation that ensures that digitalization is a driver of more inclusive and sustainable growth. Reducing the digital divide in LAC is crucial to guarantee the fast-growing technological advances contribute to human development, rather than deepening inequality in the region.
[1] Internet access data focuses on fixed household connections and excludes mobile device access.
[2] Data from a separate household survey (High-Frequency Phone Survey 2021 by the World Bank and UNDP) reports similar disparities in urban-rural access in Jamaica and Belize.
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