LAC Digital Economy: Country Diagnostics

Report No: Digital Economy for Latin America and the CaribbeanCountry Diagnostic: Jamaica April 2024 DDT © 2024 The World Bank1818 H Street NW, Washington DC 20433Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed inthis work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments theyrepresent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, col-ors, denominations, and other information shown on any map in this work do not imply any judgment on the part ofThe World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowl-edge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to thiswork is given. Attribution—Please cite the work as follows: “World Bank. 2024. LAC Digital Economy: Country Diagnostics:Jamaica. © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications,TheWorld Bank Group,1818 H Street NW,Washington,DC 20433,USA;fax:202-522-2625;e-mail:pubrights@worldbank.org. TABLE OF CONTENTS 2.1. The importance of digital infrastructure: Enabling inclusive digital transformation in Jamaica. . . . . . .442.2. Current state of digital infrastructure: High prices and low quality and usage of broadband servicesare barriers to inclusive digital transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .452.3. Recommendations: Improving data and device affordability, expanding a resilient backbone network,and strengthening the institutional and legal framework. . . . . . . . . . . . . . . . . . . . . . . . . . . .55 3.1. The importance of digital public platforms: Improving service delivery and core government systems. .613.2. Current state of digital public platforms: Opportunities to improve service delivery and core governmentservices through digital transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .623.3. Recommendations: Clarifying the political and institutional authority, centralizing managementof ICT assets, and adopting a “building-blocks” approach to services online. . . . . . . . . . . . . . . . . .74 4�DIGITAL FINANCIAL SERVICES������������������������������ 81 4.1. The importance of digital financial services: Key enabler for financial inclusion. . . . . . . . . . . . . .82 4.2. Current state of digital financial services: Toward financial inclusion through the interoperabilityof JAM-DEX accounts, payment instruments, and payment services. . . . . . . . . . . . . . . . . . . . . .83 4.3. Recommendations: Enhancing payment system infrastructure, expanding access for non-bank paymentservice providers to the ACH, and updating the legal/regulatory framework for fintech and open banking. . .93 5.1. Importance of digital businesses: Promoting productivity and economic inclusion. . . . . . . . . . . .101 5.2. Current state of digital businesses: Limited digital business maturity and a challengingenabling environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102 5.3. Recommendations: Enhancing the business environment, expanding the support ecosystem,and catalyzing digital market development opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . .113 6� DIGITAL SKILLS��������������������������������������1176.1. The importance of digital skills: Developing digital skills to build the foundationfor a technology-enabled society. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1186.2. Current state of digital skills in Jamaica: Uncoordinated efforts to addressthe high demand for and low supply of digital skills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1196.3. Recommendations: Creating a national digital skills strategy to improve coordinationaround a shared vision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1287� TRUST ENVIRONMENT����������������������������������1367.1. The importance of a trust environment: Enabling the digital economy by upholdingfoundational rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1377.2. Current state of the trust environment in Jamaica: Progress through the data protection framework. .1387.3. Recommendations: Align with international standards such as the Budapest Conventionand identify critical information infrastructure sectors. . . . . . . . . . . . . . . . . . . . . . . . . . . . .154REFERENCES����������������������������������������161ANNEXES�����������������������������������������