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Digitalization in Developing Countries: Cases from Africa, Southeast Asia, and Latin America
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About this book
About this book
After the coronavirus pandemic, digitalization is progressing rapidly and simultaneously in all around the world, both in developing and developed countries. In developing countries in particular, where the lack of infrastructure and shortcomings in various economic and social systems have been a hindrance to development, there is a growing focus on overcoming these issues with digital technology, which is hoped to lead to significant progress (leapfrogging). The digitalization of the economy first flourished in China, and this raises the question of how it is spreading in other developing countries. This book examines how ordinary people, rather than advanced corporations, are using digital technology and services in their daily lives and work, what benefits they are receiving, and what challenges they are facing in developing countries. The book explores the reality of digitalization in five countries from three regions: Peru, Venezuela, Indonesia, Vietnam, and Kenya.
Contents
Introduction. Digitalization in Developing Countries
Author：Miki HAMADA
Chapter 1 The Use of Digital Technology in Peru: Gaps Between Urban and Rural Sectors
Author：Tatsuya SHIMIZU
Chapter 2 Online Marketing in the Urban Informal Sector: Changes in Small Business in Nairobi
Author：Takahiro FUKUNISHI and Naomi INOUE
Chapter 3 Financial Digitalization in Indonesia: E-money and Micro, Small and Medium Enterprises
Author：Miki HAMADA
Chapter 4 The Use of Agri-platforms among Smallholder Farmers: Cases of Villages in Kenya
Author：Naomi INOUE
Chapter 5 Digital Service Firms in Vietnam: Who Are the Founders and How Are They Growing?
Author：Mai FUJITA
Chapter 6 Needs for Cryptocurrencies in Developing Countries: Cases in Venezuela Where the Fiat Currency Has Lost Its Valu
Author：Aki SAKAGUCHI
Preface
Preface
In recent years, our lives have become increasingly convenient thanks to digital technology. In part due to the COVID-19 pandemic, remote work, which was relatively uncommon until not long ago, has become a familiar part in working styles. The development of online meeting technology has enabled us to communicate with people from distant countries, although time zone differences remain a challenge. When we have questions, we can ask our smartphone and a digital assistant will give us a variety of options. Recently, generative AI responses have become even more precise and instantaneous. Our lives have seen dramatic changes, and the progress in digital technology continues to accelerate.
This book is the outcome of the research project “Digitalization and the Developing World: Things That Change and Do Not Change” organized by the Institute of Developing Economies (IDE-JETRO) during 2021-2022. Prior to this project, a one-year preparatory research project “Emergence and Development of a Digital Economy in Developing Countries” was conducted in 2019. At the beginning of the current research project, we received valuable input and inspiration from Dr. Asei Ito (University of Tokyo), an expert on the Chinese economy and digitalization in developing countries. We would like to express our sincere gratitude to Dr. Ito.
When this project was planned in 2018, digitalization was progressing at a remarkable pace in China, and new businesses utilizing digital technology were being created around the world. In Japan, on the other hand, where infrastructure and systems are well developed and many convenient services are available, little need was felt for services such as ridesharing apps and QR code payments. Thus, there was a gap between the enthusiasm for digitalization around the world and that in Japan. Although the COVID-19 pandemic may have somewhat lessened the gap, digital technology is advancing in many parts of the world, and the digital landscape there is probably different from the one in Japan.
The Institute of Developing Economies (IDE-JETRO) conducts research on the economic, political, and social issues of developing countries and regions. For over 60 years since its establishment, the institute has undertaken studies on the process and problems of development in accordance with the corresponding stages of development. However, unlike industrialization, digitalization is probably the first process that we have observed in which both developing and developed countries are moving in the same direction at the same time with similar technologies in hand, instead of developing countries following developed countries. Furthermore, as the term “leapfrog” suggests, the benefits of digitalization may be greater in developing countries where institutions and infrastructure are underdeveloped and could lead to accelerated development.
While success stories in the digitalization of developing countries have attracted attention, this book focuses on how people in developing countries use digital technology in their daily lives and work and how they enjoy its benefit, instead of presenting innovative and successful digital services.
This book covers five countries from three regions: Peru and Venezuela in South America, Indonesia and Vietnam in Southeast Asia, and Kenya in Africa. A close look on these cases reveals some notable points: digital technology-based services are rapidly spreading in these countries; each country and society has its own way of dealing with digital technology and services; and there are many difficulties and issues to be addressed in the digitalization in these countries.
This book presents snapshots of the rapidly evolving digital landscape. The cases highlighted in this book provide insights into how people in these countries are adapting themselves to engage with digital technology. The cases show that a human touch, such as preferences, ingenuity, and wisdom always lies between digitalization and people’s daily lives. In other words, digitalization may evolve with some traits rooted in the social and cultural features of each region and country. We hope this book can give a glimpse of digitalization and its impact upon people’s daily lives in developing countries.
editor