Development Co-operation Report 2021
Shaping a Just Digital Transformation
Digital transformation is revolutionising economies and societies with rapid technological advances in AI, robotics and the Internet of Things. Low- and middle-income countries are struggling to gain a foothold in the global digital economy in the face of limited digital capacity, skills, and fragmented global and regional rules. Political stability, democracy, human rights and equality also risk being undermined by weak governance and the abuse of digital technology.
The 2021 edition of the Development Co-operation Report makes the case for choosing to hardwire inclusion into digital technology processes, and emerging norms and standards. Providing the latest evidence and policy analysis from experts in national governments, international organisations, academia, business and civil society, the report equips international development organisations with the latest guidance and good practices that put people and the sustainable development goals at the centre of digital transformation.
Also available in: French
Taxing digital economies
The digitalisation of the global economy raises significant challenges in terms of taxing corporate income and imposing and collecting value-added tax on cross-border online sales. Newly agreed international tax rules could significantly benefit developing countries, expanding their right to tax the foreign income of multinational enterprises and improving their ability to protect their tax base from tax avoidance. There is also largely untapped revenue potential from the rapid growth of e‑commerce. A significant portion of this market is international transactions. As most African countries have not yet updated their value-added tax rules to account for digital trade, this chapter highlights that they are missing out on significant tax revenues. While some developing countries have digitalised their tax systems, improving efficiency and generating increased revenue, many more need support to implement the digital transformation of their tax administrations.
Also available in: French
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