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publicationApril 23, 2024

Digital Economy for Latin America and the Caribbean - Country Diagnostic : Jamaica

Jamaican boy and girl smiling broadly

Summary:

Jamaica's digital transformation, led by the country's Vision 2030, is driving significant changes in its economy and society. Achievements include bringing high-speed broadband to 90 schools and investing over US$2 million in emergency broadband infrastructure. Efforts to modernize governmental processes are underway, such as upgrading the eGov Data Centre and digitalizing tax and welfare transactions. Challenges remain, but a recent report from the World Bank Group's Digital Economy for Latin America and the Caribbean (DE4LAC) initiative offers strategic recommendations across six key areas to accelerate Jamaica's digital agenda.

 

The main challenges facing the digital economy and government digital transformation include:

  • The high costs and subpar quality of broadband services and devices, impacted by market concentration and organizational fragmentation, are key concerns. Internet costs, averaging around 8% of monthly income, hinder widespread adoption of digital services.
  •  Limited interoperability of platforms and uncoordinated digitalization of government functions and services make it hard for the country to improve its digital government infrastructure. The current siloed approach among ministries, departments, and agencies leads to slow deployment of services, inefficiencies, inconsistencies, and higher costs.
  • The lack of specific, measurable goals in digital skills policies and weak support for startups and digital businesses hold back digital service and technology adoption. With only 36% of the workforce aged 25–64 holding a Caribbean Secondary Education Certificate and limited formal digital skills training, a shortage of professional with the right expertise hinders expansion of digital businesses. Additionally, less than 10% of Jamaica's digital businesses use platform-based or data-driven business models.
  • Significant gaps exist in the digital trust environment, which is essential for fostering confidence and security in online transactions. The government is focusing on improving data protection and cybersecurity governance. Expanding these trust practices and standardizing data management and security protocols across all government functions is crucial steps.

Recommendations:

The report outlines a framework for the Jamaican government to develop its digital economy across six pillars.

                1. Digital Infrastructure - Affordability: Improve affordability of internet services by assessing the impact of taxes and levies on pricing. Strengthen competition in the telecommunications market to encourage lower prices and better service quality.

                2. Digital Public Platforms - Whole-of-Government Approach: Adopt a "building-blocks" approach and interoperability of government infrastructure, with centralized ICT management and data hosting services, as well as common standards for resilient infrastructure.

                3. Digital Financial Services - Ecosystem Enhancement: Advance the digitalization of cross-border remittances and promote digital government-to-person social transfers.

                4. Digital Skills - Cohesive Vision: Develop a unified strategy for digital skills development, including upskilling programs for public sector employees.

                5. Digital Businesses - Digital Transformation Support: Boost demand for digital businesses and innovation ecosystem growth through targeted initiatives focusing on business formalization, operational competitiveness, and export market readiness.

                6. Trust Environment - Institutional Arrangements: Develop a digital transformation strategy, and implement a clear institutional arrangement for digital government, including the Ministry with portfolio responsibility for digital transformation and skills, and an ICT Authority