Romania is well positioned to exploit the opportunities presented by the digital age. Nine of the world’s top fifteen cities with the fastest broadband internet are in here. At 59 percent of users, the country ranks second in the European Union in terms of subscriptions to fast broadband networks, World Bank’s ‘Reaping Digital Dividends’ report reveals.
But while the country is making large strides in terms of the digital economy, many challenges still remain – for individuals, firms, and the public sector. Today, only 20 percent of unemployed people in Romania use the internet to search for a job. Less than 10 percent of firms use cloud computing and just 5 percent of individuals use the internet to download official documents from public websites, the financial institution shows.
The ICT sector in Romania represents a key driver of growth for the Romanian economy if the opportunities of high-speed Internet are fully utilized to meet these challenges.
“In order to fully reap the dividends of the digital revolution, however, policies need to be enacted in three major areas. First, Romania must improve its business environment, so that firms have stronger incentives to adopt digital technologies to grow and become more productive. Second, Romania must focus on providing training and opportunities to build the more advanced skills demanded by the digital economy. Third, Romania must expand e-government services for businesses and citizens,” WB’s report reads.
The economic gains – or digital dividends – associated with the Internet often go to those with higher incomes, with the right set of skills or in a suitable enabling environment. As a result, growing inequalities between and within countries may follow.
According to the ‘Reaping Digital Dividends’ report, this need not be the case. If the right set of policies are established, digital dividends have the potential to be the driving force of poverty reduction and shared prosperity in the Europe and Central Asia (ECA) region.