INGENIEUR
through bandwidth upgrades from megabit to gigabit , paving the way to fully intelligent homes .
In enterprise scenarios , information digitalisation and process digitalisation are evolving towards business digitalisation , enabling enterprises to satisfy new application scenarios , improve the working experience , boost production efficiency and innovate new business models . By consolidating digital technology and industry know-how , industrial digitalisation is constantly adding value to economies and moving from information-intensive industries to pillar industries like energy , manufacturing , oil and gas , real estate and agriculture .
In city scenarios , the digitalisation of governance , public services , and economic activities is accelerating the development of smart cities , with more than 1,000 cities implementing digitalisation in stages globally .
At the country level , over 170 countries have released digital strategies , including digital infrastructure buildout and application digitalisation , to achieve systematic digitalisation .
CONNECTIVITY & ECONOMY
An OECD report of 2019 has summarised that connectivity has become a defining feature of the modern economy . It is one of the significant trends of the 21 st century . This is reflected in the increasing demand for resources to be invested in linking communities , economies and countries . In the Asia-Pacific region alone , the Global Infrastructure Hub ( GIH ) estimates that investment in connecting infrastructure will more than double in ten years to reach USD2.5 trillion per year by 2020 . However , the needs remain significant , with the Asian Development Bank ( ADB ) estimating that the Asia-Pacific region needs to invest some USD26 trillion by 2030 , while the global demand for investment in infrastructure over the same period is estimated by McKinsey Global Institute ( MGI ) and the OECD at between USD4.7 trillion and USD6.0 trillion per year . Middle-income countries account for about a quarter of this demand . There are multiple initiatives to meet the growing demand for transport , energy and telecommunications networks spanning the globe . Connectivity is high on the policy agenda of most countries . With the huge sums of money already being spent or needing to be spent , a question that is often taken for granted is why is it important to enhance connectivity ? Why does connectivity matter ?
During the recent global financial crisis , many advanced economies implemented various types of fiscal stimulus plans . The plans were based on Keynesian economics where increased Government expenditure is used to stimulate demand and recover from a depression . A significant proportion of the deficit spending went towards infrastructure , particularly transport and energy networks . In the United States , the fiscal stimulus expenditure on infrastructure ( and lowincome households ) did have an expansionary effect . In fact , it was estimated that one extra dollar spent on infrastructure in Canada increased GDP in the long term by between USD2.46 and USD3.83 . Many of the studies established a positive and significant link between infrastructure and development outcomes . Evidence abounds elsewhere on the positive effects that connectivity infrastructure has on the economy even at the micro-scale . There are also medium and longterm effects in strengthening the foundation for future economic growth , including making labour markets more efficient and productive .
CONNECTIVITY IN GLOBAL VALUE CHAINS
Global value chains ( GVCs ) are a defining characteristic of the 21 st century economy . They have totally transformed the links between firms and countries and redefined the relationships between trade and competitiveness . The growth of GVCs has been in tandem with improvements in transportation and communications technologies , which have allowed the fragmentation of production tasks to different locations . Governments seeking to join GVCs should create world-class relationships and climates for foreign tangible and intangible assets . Both actions depend in part on connectivity to international markets and border efficiency . This is the reason why international indices such as the World Bank ’ s Logistics Performance Index and the WEF ’ s Competitiveness Index are important as global indicators of performance and competitiveness .
30 VOL 90 APRIL-JUNE 2022