Maroc - NEWSDAY.CO.TT - A la Une - 04/Sep 09:31

Digital economy rewired

TRINIDAD and Tobago must move urgently to adapt its economy to the realities of digitalisation or risk being left behind, warned experts at the Central Bank’s annual Research Review Seminar at its auditorium on September 3. The seminar, The Digital Economy: Rewiring the Analogue Economy to Achieve Durable Benefits, brought together leaders from government, the private sector, academia and finance to debate how technology, policy and infrastructure can reshape outdated systems for long-term competitiveness. Central Bank deputy governor Dr Dorian Noel opened the seminar, noting that digitalisation is no longer optional. "At the bank, we fully recognise the potential of digitalisation to enhance and improve economic outcomes," he said, adding that concepts such as artificial intelligence and digitalisation "can no longer afford to be treated as mere falsehood. Instead, they form an integral part of our daily existence." Noel noted that the Central Bank’s 2021-2026 strategic plan placed digital solutions at the core of monetary policy, financial stability and internal operations. "Digitalisation is now widely regarded as one of the most powerful tools for enabling and achieving sustainable growth and development," Noel added. But, he cautioned, the transition must be inclusive, secure and resilient. "Careful consideration must be given to the best approach to address citizens who may be potentially compromised by the development of the digital economy… paramount importance must be given to building public confidence in our ability to defend against cyber actors and digital viruses." The discussion was framed in terms of three simultaneous global shifts – globalisation, decarbonisation and digitalisation – reshaping economies and industries. "What we are witnessing is a retreat from the hyper-connected trade and supply chains that dominated the last three decades," said Kirk Henry, group chief information officer at Ansa McAL. "For TT, a country historically reliant on hydrocarbons, this shift is both a challenge and, I dare say, an opportunity. "Technology is no longer a support function – it is the foundation of competitiveness." He pointed to emerging technologies such as artificial intelligence, blockchain, advanced data analytics and automation as both "promise and peril." They bring efficiency and new business models, but also the risk of disruption and inequality. "For small and open economies like ours, the task is not only to survive these shifts, but to position ourselves to thrive in them," Henry said. [caption id="attachment_1175977" align="alignnone" width="1024"] An AI-generated image showing the digital economy landscape.Photo courtesy Freepik -[/caption] "That is precisely what today’s panel is about – how TT can rewire its analogue economy into a digital one, and in so doing, build durable benefits for the future." Henry highlighted the size of the opportunity. Citing research by Markets and Markets, he noted the global digital transformation market is set to grow from approximately US$911 billion in 2024 to US$3.2 trillion by 2030, at an annual growth rate of nearly 24 per cent. "The question we need to ask is, how do we participate in that upcoming $3.2 trillion marketplace?" he asked. Denyse White, deputy national chief digital officer at the Ministry of Public Administration and Artificial Intelligence, responded by stressing that TT’s focus should be on value creation. "The digital economy shouldn’t be simply putting technology onto an analogue existence," she said. "It’s about leveraging not just technology but process, people and an enabling environment for identifying emerging opportunities." White said TT should avoid false comparisons with countries like Estonia, whose population is similar to TT and where government services are fully digitised. Instead, TT must capitalise on its own strengths. [caption id="attachment_1176042" align="alignnone" width="683"] Central Bank, Independence Square, Port of Spain - File photo[/caption] "The digital economy is an opportunity for us to leverage our unique brand, our way of doing things, our knack for creation and monetise that creation,”" she said. She stressed that conventional ways of measuring the ICT sector underestimate its true contribution. "Are we really measuring the impact of technology that is integrated across the board, not just technology services?" she asked. "We are a nation of small businesses, so we cannot use the same measurements we see globally to assess what is going on in TT." Collaboration and inclusion, she said, are critical. "Government cannot do it alone. They have to partner with the private sector, who has the experience and the better measurements in terms of ROI," White said, citing Europe’s example where digital IDs emerged from the banking sector. She urged special attention to micro, small and medium enterprises (MSMEs): "These are the real engine of what we’re doing. If we want to stimulate activity, then we need to be looking at the lower levels in terms of business size." Simone Martin-Sulgan, vice-president of Liberty Caribbean TT, noted that infrastructure – particularly telecommunications – remains the backbone of digital transformation. "When we think of connectivity, we often just think about internet and being able to do an Amazon purchase," she said. "But it’s connectivity, data and technology converging, and how they come together to transform people’s lives." TT, she argued, has a strong foundation.   "We have two mobile providers for a population of 1.3 million and five main broadband connectivity providers. "We’ve built world-class networks and are upgrading them with high-speed fibre and gigabit-ready networks." But resilience and security, she said, must be part of the plan. "Preparedness is not just about connectivity," she cautioned. "It’s about making sure the infrastructure is secure, scalable and sustainable to support the next wave of innovation." She pointed to initiatives like public-private partnerships and programmes to expand rural broadband access as critical to bridging the digital divide. Small businesses and policy barriers Entrepreneur Agyei Archer, founder of Public Good Studio, offered a practitioner’s perspective grounded in his work in technology. He described three fundamental challenges for small businesses seeking to scale digitally – basic business viability, supportive public policy and access to financial infrastructure. "We have a very deep wealth of small business innovators and people who have great ideas. But the reality is that some of those ideas tend to be distanced from the nuts and bolts of needing to make more money than you’re spending," Archer said. Public sector frameworks often add friction. "We have a massive food import problem, and we started our agritech solution to solve it. We immediately identified shortages we could address by sourcing from Dominica or Guyana. But the policies and plant import regulations aren’t there, so it becomes impossible." Financial systems, meanwhile, remain underdeveloped for digital entrepreneurs. "Digital business requires the ability to process money online," Archer said. "Unless you are a founder with either technical experience or money to hire a technical team, those implementations are hard. We don’t yet have a solution that can help a small business owner who doesn’t know much about technology set themselves up with online payments." What is needed, he argued, is accessible financial "rails – from digital payments to loans and insurance – built into the economy. "It’s really a trifecta," he said, involving basic business understanding, public sector partnership and financial infrastructure. Christian Upper, senior adviser at the Bank for International Settlements, joined virtually to provide an international lens. While not commenting specifically on TT, he outlined three broad themes relevant to all economies – productivity, geography and vulnerability. First, productivity gains only come when processes are redesigned for digital, rather than simply automated. "The first step of digitalisation was using word processors to replace typewriters," he said. "That doesn’t really change productivity. The real leap is when you tailor your processes to digital economies – when information flows automatically through systems without retyping. That’s when you get gains." Second, geography matters less but does not disappear. "Digital technology allows me to deliver my remarks and listen to questions, but it doesn’t allow me to be in the coffee break to see how people think," he noted. For small states, this creates both opportunity and competition. "Trinidadian firms can provide services globally, but firms from abroad can also provide services there." He spoke of increased exposure to cyberattacks and natural disasters. "In the past, if there was a blackout you could still work. Now, once the battery runs down and the internet is gone, you’re paralysed. "From a national security point of view, this makes economies very vulnerable." Noel reminded participants that the stakes are high, noting that global e-commerce transactions are projected to reach US$4.8 trillion in 2025, and surpass US$150 trillion by 2034. "Disturbed adoption is flagged as a key driving force in bolstering efficiency and delivery of domestic services," he said. "Digitalisation can facilitate the creation of new industries, foster entrepreneurship, enhance the ease of doing business and strengthen global competitiveness." But for those benefits to be durable, the digital economy must be rewired with resilience, inclusivity and innovation at its core. "If this is our new economic reality, then it should be a reality that is as inclusive as possible. "Digital inclusion requies active participation across all societal groups to ensure a just transition," said Noel.   The post Digital economy rewired appeared first on Trinidad and Tobago Newsday.