Making digital transformation work for all in Chile
The sanitary crisis, created by the outbreak COVID-19, is accelerating Chile’s digital
transformation, which has seen a surge in e-learning, streaming, online shopping and
marketing and teleworking. The digital transformation has the potential to revamp
productivity and inclusiveness, although it comes with adoption barriers and transition
costs. Connectivity has increased substantially in the last decades, and the country
is ahead of the region. However, fixed high-speed broadband adoption, essential for
the digital transformation, lags behind. Firms have started to adopt digital technologies
but micro firms and SMEs are well behind. Rural areas have lower connectivity and
many workers lack the skills to thrive in the digital world. Lowering the entry barriers
in the communication sector and making regulations simpler and clearer would ease
infrastructure deployment. Targeted policies for SMEs, such as development of sources
of financing or specific programmes for adopting digital tools, would help them access
and use digital tools, increasing productivity. Reforms to the innovation ecosystem,
competition and the regulatory framework are also needed. To reap the benefits of
digitalisation for all, it is necessary to continue investing in quality foundational
skills, adult and lifelong learning and in high-skilled ICT specialists. Labour market
policies need to be adapted to face the challenges and exploit the benefits posed
by the digital transformation. An effective safety net would address possible labour
market disruptions.
Published on October 05, 2021
In series:OECD Economics Department Working Papersview more titles