Transformation to Digital Economy: Source for inequality or Tool of Advancement?

Abstract

Transformation towards the digital world is the key modern direction of global economic development. Our society is going through a qualitatively new stage of evolution. This stage is characterized by the greatest influence of technologies. The common nature of these technologies is digitization, which is changing our daily lives. These processes have become even more noticeable and important under the conditions of the Covid-19 pandemic. Pandemic-related restrictions have made governments, businesses, and individuals acutely aware of the need and urgency to implement digital technologies into everyday life as quickly as possible. As a result, the process of digitalization of the world has accelerated unprecedentedly. The article stress of differences between the developed and developing world in terms of the speed of digitalization and the level of utilization of new technologies. Developed economies with abandoned knowledge, a better-trained workforce with digital skills and greater access to appropriate infrastructure utilize and exploit modern technologies‘ wider range of opportunities, than developing countries, which are characterized not only by low income but as well by less expenditure on Research and Development, education and infrastructure, resulted in low-skilled human resources and restricted environment for digital transformation.  The article analysis the various data from the World Bank and other international organization to assess the level of network readiness and reveal the correlation with GDP and government expenditure on Research and Development.