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Rabab Fatima's statement at the side event "Digital transformation and regional cooperation in the Pacific¡±, 80th Session of the Commission of UN ESCAP

Excellencies, Distinguished Colleagues,

I'm very pleased to be part of this important event,  which addresses the critical  issue of digital transformation and regional cooperation in the Pacific. I thank the Pacific Islands Forum Secretariat (PIFS), Pacific Community (SPC), and the ESCAP Subregional Office for the Pacific for organizing this vital event and giving me this opportunity to share my thoughts.

I just had a very successful Mission to Fiji last week aimed at strengthening UN support for the 2050 Strategy for the Blue Pacific Continent. The signing of the CROP-UNCT Principles of Dialogue and Engagement was an important milestone to bolster collaboration between the UN, Pacific Islands Forum and CROP agencies to deliver on our shared commitments in the 2050 Strategy, the 2030 Agenda and the next POA for SIDS.

I am very happy to inform you that the  Member States  have already  agreed on the draft Outcome Document of the next POA for the SIDS to be adopted at the SIDS4 Conference in Antigua and Barbuda next month. The new POA  titled "The Antigua and Barbuda Agenda for SIDS (ABAS)¡± ushers in a renewed declaration for sustainable and resilient prosperity for SIDS by 2034.  The POA has identified 10 priority areas for action, including Science, Technology, Innovation, and Digitalization.

In the new POA, the international community has committed to provide SIDS with the necessary means of implementation to enhance their STI capacities and to harness digital technologies for sustainable development in SIDS. This includes; strengthening digital cooperation, developing digital infrastructure, bridging digital divides, and ensuring an open and inclusive digital future for all.

While the 2023 ITU statistics indicate progress with 67% of the population in SIDS using the Internet, there are significant disparities among SIDS, particularly in the Pacific region where only 41% are online. In Papua New Guinea, only about   27 per cent of the population are online. In advanced economies, almost everyone is using the internet. If SIDS are to converge with more developed economies, it is critical to bridge the digital divide.

 

Excellencies, Distinguished Colleagues,

I would like to focus my intervention on two issues, which are particularly pertinent to the Pacific SIDS: digitally-deliverable services, and data.

On digitally-deliverable services, we have seen that the digital transformation of the global economy has led to other services being increasingly tradeable and delivered remotely. The offshoring of business services represents an opportunity for SIDS to become part of digital value chains by producing and exporting such services.

In 2022, global exports of digitally-deliverable services accounted for 55 per cent of total trade in services. However, SIDS represent a meagre 0.1 per cent of digitally-deliverable exports. I would like to highlight here that this analysis excludes that of Singapore, as it is an outlier among SIDS.

The other point I would like to make is on data.

More and better data on the performance of SIDS in the digital economy is urgently needed. The available data from trade in ICT goods and services, and digitally-deliverable services, only paints a very partial picture.

I am therefore pleased to note the establishment of a Centre of Excellence for SIDS, which will include a SIDS Data Hub, a technology and innovation mechanism, and an Island Investment Forum, as part of the new POA for SIDS. These initiatives will enhance data availability in SIDS, facilitate knowledge exchange, capacity building, and innovation support to narrow the digital divides.

Looking ahead, we must prioritize three key areas:

First, I would like to reiterate the proposal I made last week during the meeting at the PIF Secretariat. It will be important to align the work of the Pacific Data Hub with that of the SIDS data hub, going forward.

 It will also be of critical importance to step up efforts to close the digital divide in SIDS within the broader ambit of the 2050 Strategy and this specific deliverable of the new POA.

 

Second, it is important to ensure that Internet cost is more affordable. As recently reported by ITU, the entry-level fixed broadband prices -- adjusted for purchasing power parity -- in SIDS exceed the average price elsewhere by about 25 per cent.

Unfortunately, the factors underpinning the price and affordability gaps between SIDS and other countries are mainly structural. Telecommunication operators in SIDS typically face higher costs due to inadequate infrastructure, remoteness, limited economies of scale, high cost of imports, and environmental vulnerability.

Therefore, it would be important to foster regional cooperation and collaboration among SIDS to share resources, best practices, and expertise in building and maintaining broadband infrastructure. By pooling resources and expertise, SIDS can achieve economies of scale and negotiate better deals with equipment vendors and service providers.

The new POA also provides some guidance to this effect. It emphasizes fostering connectivity between SIDS and neighboring regions to strengthen economic ties and facilitate the movement of goods and people, essential for advancing digital transformation and regional cooperation, for example, in the Pacific.

Enhancing regional cooperation in the context of digital transformation can also help to build relevant digital skills. For example, Governments in SIDS, Development partners and the private sector could pool resources so that the digital skills initiatives can be provided at scale and achieve higher impact. 

 

Third, recognizing the digital economy as integral to the development agenda.  

My office, UN-OHRLLS, has conducted case studies on digital transformation in three SIDS across various regions. Recently, we finalized an in-depth country study in Kiribati.

Through this case study, we found that despite significant improvements in mobile and Internet usage, affordability of ICT services remains a barrier for many. Limited means to purchase devices and the cost of services relative to income pose challenges.

Furthermore, we also found that if the delivery of public services is to be digitally transformed, further technical assistance is essential for training government staff in new digital tools and applications.

As we look forward to the SIDS4 Conference, now is the time for the global community to unite and support SIDS in their journey towards digital transformation and resilience.

 

Thank you.