Digital economy through modern global challenges: revealing best countries

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As everyday online connections among people and communities, sectoral governance and businesses, numerous ICT-devices and data processing, etc. the digital economy has become a vital part of national agenda. Main components in digital economy, such as e-business and infrastructures, e-commerce, e-banking and e-governance make the concept an attractive tool in dealing with modern challenges. 

   Digital economy provides numerous benefits to modern national politico-economic governance, e.g. it contributed to rapid ICTs expansion in all walks of life with positive effect on a variety of industries and businesses while increasing competitiveness and productivity. It has been already evident that efficiency in business can be improved greatly by using digital technology devices to automate their operations and processes, and reduced running costs.

Open AI and ChatGTP-4
The digital economy is set to carry more weight in the future, as the “Internet of Things”, artificial intelligence (AI), virtual reality, blockchain, self-driving cars, and other digital technologies develop. The latest developments in digital transformation include hybrid work, intelligent search through AI and OpenAIs, as well as robotic process automation to drive industrial processes, customer data platform solutions to drive customer value and experience, integrated Agile DevOps to drive innovation, and IT Service Management, to name a few…

   OpenAI is a by-product of a widespread use of artificial intelligence’s means; it first entered social agendas at the end of November 2022 by releasing innovative ChatGPT as a “research preview”. Already in January 2023, the OpenAI has been the fastest-growing user base, achieving an estimated 100 million active users: e.g. Similarweb, an internet analytic firm, estimated that ChatGPT attained an average of 13 million unique visitors per day. ChatGPT had many successes over the ensuing months, including powering Microsoft Bing, the second most popular search engine in the world. ChatGPT is an internal artificial intelligence (AI) project that OpenAI initiated in December of 2015; there were many evolutionary releases starting with GPT-1 in June 2018, GPT-2 in February 2019, and GPT-3 in June 2020. Through this rapid and continual advancement, ChatGTP is currently in its 4th generation.

   Economies that want to develop a solid roadmap for digitalization should invest in talent, training and education, as well as into scientific research, concentration and innovation.
In 2022, five most digital economies were in Denmark (it ousted the USA for the first time since 2017), USA, Sweden, Singapore and Switzerland.
Denmark’s triumph is in large part due to its outstanding performance in future readiness: defined by the global competitiveness council, WCC as the degree of a state’s “preparedness to exploit digital transformation”. Denmark has been regarded as a global leader (among 63 states) and performing strongly in such parameters as business agility and IT integration; and also reaching fifth place in its governing adaptive attitudes. Besides, Denmark remains among the world’s leading economies in digital talent and training and education.
As the WCC confirms, digital nations appear as a “result of combination” of such digital parameter as talent, optimal digital regulation, data governance, digital “attitudes” and the availability of capital.

Reference to: https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-digital-competitiveness-ranking/

Digital competitiveness factors
World competitiveness report underlined three main factors determining digital economy’s “potentials”, among them are:
1. Knowledge. That is – know-how necessary to discover, understand and build new technologies; with such sub-factors as: a) talent, b) training and education, and c) scientific “concentration”.
2. Technology. That is – an overall politico-economic context that enables the development of digital technologies; with such sub-factors as: a) regulatory framework, b) available capital, and c) technological framework.
3. “Future readiness”. It is the level of country preparedness to exploit digital transformation; with sub-factors as: a) adaptive attitudes, b) business agility, and c) IT Integration.

  Generally, in national competitiveness the following factors shall be included: – economic performance, – government efficiency, – business efficiency, and – infrastructure.

Ranking in competitiveness
The competitiveness ranking among some of the EU member states in 2023 looks the following way:
= in some Nordic countries: Denmark with about $392 bn GDP (and about $70.000 per capita) is the first among 64 states in the world; Sweden with about $585 bn GDP and $65.000 per capita at eighth place; and Finland with about $280bn GDP and $58.000 per capita at 11th place.

  = in other Baltic Sea States: Estonia with $38 bn GDP and $46.000 per capita at 26th place; Latvia with $38,4 bn GDP and $38.000 per capita at 51st place; Lithuania with $70 bn GDP and $46.000 per capita at 32nd place.

  = among EU countries in the “trillion category”: – Germany with $4 trillion GDP and $63.000 per capita at 22nd place; – France with about $2,8 trillion GDP and $54.000 per capita at 33rd place; – Italy with $2 trillion GDP and $51.000 per capita at 41st place; – Spain with about $1,4 trillion GDP and $46.000 per capita at 36th place; – the Netherlands with about $925 bn GDP and over $68.000 per capita at 5th place in the world.

   Additionally: Austria with over $470 bn GDP at 24 place in the world; and Poland with $688 bn GDP and $42.000 per capita at 43rd place.
Information about other states can be easily obtained from: https://www.imd.org/centers/wcc/world-competitiveness-center/

   Our comment. For more than 70 years, the most widely accepted measure of national economic growth has been the Gross Domestic Product, GDP as an indication of marketed economic activity, but not a real socio-economic wellbeing. The GDP gives only an incomplete picture of the system within which a just social economy shall operate. The economic growth measured through the GDP is regularly referred to by economists, politicians and decision-makers as an ultimate denomination of national overall progress. Even internationally, the IMF and the World Bank are using changes in states’ GDP to guide “efficient policies” and determine the countries’ progress in the world. Instead, the GDP-based activities encourage the rapid depletion of natural resources and degrading and devastating ecosystems. It doesn’t include volunteering and organised work towards sustainability and doesn’t pay attention to the growing income disparities in societies, both nationally and globally.

 

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