Chapter I           Economic Commission for Latin America and the Caribbean (ECLAC)


Diagram I.1
Dimensions of digital development and the effects on society, the production sector and the State
 Risks                                     Society                                   Production sector                     State
 Greater inequality                      New models of communication       New management models            Digital government
 Reduced competitiveness            and interaction                         New business models                 Citizen participation
 Economic concentration              New models of consumption         New production models
  Institutional crisis                                                                    Industrial restructuring
 Geopolitical polarization

 Telecommunications and
 information technology pillar
                                                                        Network and service coverage
 Digital infrastructure                                           High data transmission speeds and low latency
  Telecommunications services                                Access to information technology services and software
 Software and systems                                         Affordability of devices and services
 Information technology services
 Multifunctional devices

  Digital economy                         Information and knowledge            Innovation and entrepreneurship      Digital government
  Digital goods and services             Online goods and services             Marketaccess                           Digital innovation in the State
  Applications and digital platforms:   Access to public services              Efficiency in management,             Digital tax efficiency
  marketplaces,social networks,       Consumption on demand              marketing and distribution             Digital citizenship and
 video streaming                          and customization                      Data as a strategic asset               citizen participation
  Digital content and media              Data privacy and security              Cybersecurity and data privacy        Open data and transparency
 Sharing economy                        New jobs, new skills                                                                 Cybersecurity and data privacy

 The digitalized economy               Smartproducts                         Industrial reconfiguration               State digital innovation
 E-business                                Products as services                   Automation and robotics                Governance of public services
 E-commerce                              Informed and customized              Sophisticated production               (education, health,
                                                consumption                                                                          justice,security)
 Industry 4.0                                                                            Digital transformation
                                                Premium on responsible               of production (data-based              Governance for digital
  Agricultural technology
                                                consumption                            productivity)                              transformation (cybersecurity,
  (agritech),financial technology
                                                                                                                                           competition,tax,trade, etc.)
  (fintech),automotive technology     Data privacy and security             Cybersecurity and data privacy
  (autotech),etc.                           New jobs, new skills
 The smart economy


                                                           Welfare and                         Productivity and                  Efficiency, effectiveness
                                                          sustainability                          sustainability                        and sustainability

Source: Economic Commission for Latin America and the Caribbean (ECLAC).

       The digital transformation of the production sector is taking the form of new management, business and
production models that are facilitating innovation and the introduction of new markets and disrupting traditional
industries. The expansion of the industrial Internet, smart systems, virtual value chains and artificial intelligence
in production processes is speeding up innovation and generating productivity gains, with positive effects on
economic growth. In addition, all this is driving the transformation of traditional industries through automotive
technology (autotech), agricultural technology (agritech) and financial technology (fintech), among others.
In particular, smart production models can bring increased competitiveness with a smaller environmental
footprint, as companies are using digital tools to map and reduce their footprint in order to assess their impact
on climate change and modify their production processes.
      A similar process ought to take place in the public management models of State bodies, in order to meet
citizens' demands and improve government action. The adoption of these technologies by such institutions
would increase the efficiency and effectiveness of provision for services such as health care, education
and transport. It would also improve citizen participation in democratic processes, increase transparency
in government operations and facilitate more sustainable practices. In particular, smart city solutions are
transformative because of their potential social, economic and environmental impact, especially in a region
where 80% of the population is concentrated in cities.

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