World Bank: Digital Transition Potentially Accelerates Economic Growth

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The World Bank (World Bank) said that the digital transition that continues at this time is one of the front lines in global economic development.

"Digitalization provides a unique opportunity for countries to accelerate economic growth and connect people with services and jobs," said World Bank President Ajay Banga in a written statement in the middle of this week.

Although growth opportunities and potential have shown a real impact, in 2022 around 3 billion people are still in the status of digital channels (internet). According to him, most of these people live in developing countries.

"They experience a big gap in the use of intermediate digital products and in countries that are still a challenge," he said.

Therefore Ajay stated that the World Bank continues to cooperate with governments in developing countries to overcome regulatory and infrastructure constraints on digital inclusion and transformation.

"We want to encourage financial inclusion and low-cost payment systems, expand the digitization of government services and operations," he stressed. Ajay explained, the World Bank provides funding facilities by focusing on supporting digital transformation in the financial sector to encourage wider use of new financial technology while maintaining financial system integrity and stability.

"We will increase our cooperation to help countries increase the effectiveness of the government's revenue and expenditure collection system and benefit from new digital technologies while mitigating risks," he said.

Ajay ensured that the World Bank would continue to seek to increase cross-border payments, support the implementation of the G20 Roadmap to increase wide cross-border payments, ensure that payment innovation spurs growth, poverty alleviation and job creation.