Digital Hotspots: Developing Digital Economies in a Context of Fragility, Conflict and Violence

Digital Hotspots: Developing Digital Economies in a Context of Fragility, Conflict and Violence

The World Bank (WB) presented a new working paper on digital transformation in countries with high levels of instability.

The organization estimates that up to 10% of the world's population lives in countries affected by conflict. In most cases, state instability is caused by a combination of weak economic performance, ineffective institutions, demographic changes, social inequality, and the effects of climate change. Digitalization is one of the drivers of socio-economic development in unstable states. The purpose of the publication is to analyze the factors limiting and facilitating the implementation of digital projects in Afghanistan, Iraq, Yemen, Libya, Syria, Somalia, and South Sudan. As the authors note, the main barriers holding back digital development and the influx of investment are institutional instability, interdepartmental disagreements, and the lack of transparent regulation and fiscal policy.


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