© International Trade Centre 2022 The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland Postal address: ITC Palais des Nations BRICS Digital Economy Report 2022 About the report Dynamic business development and an improving policy environment mean the BRICS countries (Brazil, the Russian Federation, India, China and South Africa) can become important players in the digital economy. Yet challenges remain to bridge the digital divide, upgrade skills and digital governance, and improve access to technology and finance. This report examines digital market trends and policy developments in the BRICS countries. It urges them to enhance cooperation through joint efforts to narrow the digital divide, advance digital governance discussions, improve measurement of the digital economy, catalyse cooperation among private-sector players and support development and uptake of new digital technologies. The report was prepared by ITC in collaboration with UNCTAD, in the context of the BRICS meetings hosted by China in 2022. Publisher: International Trade Centre Title: BRICS Digital Economy Report 2022 Publication date and place: Geneva, December 2022 Page count: 56 ITC Document Number: TFPB-22-58.E Citation:International Trade Centre.BRICS Digital Economy Report 2022. ITC, Geneva. The views and opinions expressed in this report are those of the authors and contributors, and do not necessarily reflect the views of the BRICS members, ITC and UNCTAD. For more information, contact: Quan Zhao: zhao@intracen.org ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short extracts of this paper may be freely reproduced, with due acknowledgement of the source. Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or translated material should be sent to ITC. Digital image(s) on the cover: ©Shutterstock ©International Trade Centre (ITC) ITC is the joint agency of the World Trade Organization and the United Nations. Foreword Acknowledgements This paper was prepared by Rishab Raturi, ITC trade consultant, and reviewed by Quan Zhao and Jean-Sébastien Roure (both ITC) and Torbjörn Fredriksson and Wei Zhang (both UNCTAD) The paper was produced under the supervision of Mohammad Saeed, Chief, Trade Facilitation and Policy for Business, and Rajesh Aggarwal, Director(officer in charge), Division of Market Development (both ITC). We would like to thank delegates from the BRICS countries for their review and comments on the initial draft. We would like to thank Natalie Domeisen and Anne Griffin (both ITC), who oversaw the editing and production process; Jennifer Freedman, who edited the report; and Franco Iacovino and Serge Adeagbo (both ITC), who provided graphic and printing support. Thanks also to Christina O’Shaughnessy and Richard Waddington for their editorial input in the preliminary phase of writing. Production of this publication received support from the Ministry of Commerce of the People’s Republic of China. vi Box Acronyms Unless otherwise specified, all references to dollars ($) are to United States dollars, and all references to tons are to metric tons. Executive summary This report provides an overview of market trends and policy developments related to the digital economy in the five BRICS countries (Brazil, the Russian Federation, India, China and South Africa). It suggests that BRICS can further enhance cooperation through joint efforts to bridge the digital divide, advance digital governance discussions, improve measurement of digital economy, catalyse cooperation among private-sector players and facilitate development and uptake of new digital technologies. The International Trade Centre in collaboration with the United Nations Conference on Trade and Development prepared the report in the context of BRICS meetings hosted by China in 2022. Defining and measuring the digital economy is tough Opportunities and challenges for BRICS digital economy While BRICS countries have large e-commerce markets, the share of online shoppers among internet users varies from around 20% in India and South Africa to 40% in Brazil and the Russian Federation,to almost 80% in China. Domestic and international e-commerce platforms are active in BRICS countries and e-commerce is expected to maintain rapid growth in the post-pandemic recovery. How to strengthen BRICS cooperation on the digital economy? Guided by the BRICS Strategy for Economic Partnership 2020–2025 and other strategic initiatives, and building on previous achievements, BRICS countries could further enhance digital cooperation in the following areas: Data centres are key to the digital economy, as they store, process and distribute data. However, almost 80%of the world’s data centres are located in developed countries. Data