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1. IntroductionThe 2030 Agenda for Sustainable Developmentrecognizes the role of information and communications technologies (ICTs) in advancing progressDigitalization presents bothtowards the achievement of every single one ofthe Sustainable Development Goals (SDGs), withICTs being widely acknowledged as a catalystfor decent work and economic growth, industryand innovation, and gender equality.1 While theaccelerating trend of digitalization and its potential for advancing development outcomes is indisputable, its net impact depends on the level ofdigital readiness of countries to take advantageof the opportunities it presents. Many developing countries, especially the least developedcountries (LDCs), are inadequately prepared tocapture opportunities emerging as a result ofdigitalization. Moreover, there is a risk that digitalization will lead to increased polarization andChallenges&OpportunitiesHuge differencesin readinessHigh concentrationof market powerNeed for cross-cuttingpolicy responseThose that are not wellprepared risk falling furtherbehind, leading to wideninginequalitieswidening income inequalities, as productivitygains may accrue mainly to a few, already wealthyand skilled enterprises and individuals. In 2020,the significant divides in digital readiness werefurther accentuated by the COVID-19 pandemic.The speed at which the digital economy is unfol-New policies and regulationsneeded to facilitate aninclusive digital economyding, and the gaps that exist in terms of theability of countries, enterprises and individualsto engage in it, underline the urgency of scalingup global support for capacity-building andIt is in this context that UNCTAD’s ECDEtechnical assistance to countries trailing behindProgramme comes in. In 2016, the Nairobiin the digital economy. A particular challenge forMaafikiano – the outcome document of thecountries is to address a large number of policy14th UNCTAD Ministerial Conference – formallyareas in parallel and in a coordinated manner,acknowledged UNCTAD’s leadership role in theoften without reliable statistics and other infor-area of e-commerce and the digital economy formation to inform the decision-making process.development through its three pillars of work.10

A three-pillar approachThe ECDE Programme provides a unique platform for:Building knowledgeGenerating research and better statistics toenable governments and other stakeholders tounderstand the implications of economic digitalization for sustainable development.Providing assistance to developing countriesas they seek to prepare for and adapt to digitaldisruptions.Fostering global multi-stakeholder dialogueand a more coordinated approach on e-com-Building consensus Building capacitymerce and the digital economy from a development perspective.In addition to its three-pillar approach andThe Framework is organized around the mainensuing synergies, the Programme’s added valueworking areas and positive changes expectedis derived from a global reach with a focus onin the short, medium, and long term to reducesupporting countries trailing behind, a strongdigital divides between and within countries andemphasis on partnerships, a mainstreamedpromote equitable, inclusive, and sustainableapproach to gender, and a high degree ofgains from the digitalization of economic andrelevance to the current development context,social activities (see Figure 1).which has been defined by the COVID-19pandemic and which led to several adaptations ofthe Programme’s work in 2020.To enhance the effectiveness of its interventions,a more efficient use of resources and a robust andresults-driven approach to programme management and monitoring, the ECDE Programme usesa Results Framework that unites all individualprojects under a common vision.11

Figure 1.E-commerce and Digital Economy Programme’s Results FrameworkImpactEnhanced inclusive and sustainable development gains and economic benefits from e-commerceand the digital economy for people and businesses in developing countries, particularly LDCsLevel of accountability at Impact level: Governments of member States, private sector, civil societyOutcome 1Improved decision-making and policy formulation at thenational level on e-commerce and digital economy fordevelopment, in a gender sensitive mannerOutcome 2Improved efficiency of governments, internationalorganizations, civil society and private sector in addressing issues and providing assistance on e-commerceand the digital economy for development, in a gendersensitive mannerLevel of accountability at Outcome level: Governments of member StatesOutput 1.1Research and analysisenhancing the understandingandincreasing the awareness ofpolicy makers aboutpolicy options and goodpractices to benefit frome-commerce and thedigital economyOutput 1.2Capacity building assistance to policy makers forintegrating e-commerceand the digital economyin the national development agenda in dialoguewith other stakeholdersOutput 2.1Facilitation of cooperation,exchange of good practicesandconsensusbuildingamong policy makers, aswell as research institutions,academic centres, private andpublic entities at the national,subregional, regional andinternational levels in the areasof e-commerce and the digitaleconomy for developmentLevel of accountability at Output level: UNCTADActivity 1.1.1Digital Economy ReportActivity 1.1.2Technical notes on ICT for developmentActivity 1.1.3Policy briefsActivity 1.1.4Database on statistics relatedto E-commerce and the DigitalEconomyActivity 1.1.5Other research activities12Activity 1.2.1E-commerce and Law ReformActivity 1.2.2ICT Policy Reviews & National E-commerce StrategiesActivity 1.2.3Measuring E-commerce and the DigitalEconomyActivity 1.2.4eTrade Readiness AssessmentsActivity 1.2.5eTrade for WomenActivity 2.1.1Intergovernmental Group of Experts onE-commerce and the Digital EconomyActivity 2.1.2Working Group on Measuring E-commerce and the Digital EconomyActivity 2.1.3eTrade for allActivity 2.1.4eCommerce Week(s)Activity 2.1.5Digital Co-operation for Development(UNGIS, SG Roadmap, WSIS)Level of accountability for activities: UNCTAD

The Results Framework is operationalized via a Work Plan and is accompanied by a detailedgrees of control over the different levels ofmonitoring and evaluation (M&E) Framework, theresults in its Results Framework. The achie-primary purpose of which is to guide progressvement of expected outcomes is dependentmeasurement in terms of expected results andon Member State governments and partners’against expected targets.willingness and ability to take action on theThis first Year in Review for the ECDE Programmeas a whole, provides an overview of its main activities and accomplishments in 2020, based on theevidence collected in line with its Results andTheECDE Programme has varying de-knowledge and recommendations providedby UNCTAD. Some variance between expected and actual performance at the outcomelevel should therefore be expected.M&E Frameworks. It is not an exhaustive account of everything that was done. Instead, it highlightsto predict donor support for the ECDE Pro-key facts and figures as well as main develop-gramme over the course of the next fivements and outlines some of the Programme’syears, or how specific activities will evolve,main objectives for 2021 and beyond, based onthe Programme’s M&E Framework is both acountry demands as well as donor and partnerliving and iterative document which will be re-priorities. An overview of the Programme’sviewed periodically as needed, to ensure thatmanagement, including human and financialthe M&E process supports evidence-basedresources as well as risks, is also provided.decision-making and continual programmeChallenges and limitations: Considering that it is not always possibleimprovement to the greatest extent possible.Both the Results Framework and cor-responding M&E Framework are at an earlystage of maturity. This Year in Review 2020 isthe first time that they are operationalized.As the Programme is still evolving, it has notbeen possible to report baseline and/or actual data on all the performance indicators inthe Results Framework. Further fine-tuning ofthe Results and M&E Frameworks has beenoutlined as a priority for the upcoming periodin view of lessons learned from the development of this Year in Review.13

2. Highlights from 2020Against the backdrop of the COVID-19 pandemic, UNCTAD’s ECDE Programme continued to evolvewhile adapting its focus and activities to reflect the evolution and impact of the pandemic on e-commerce and the digital economy.The Programme saw strong demand forassistance from LDCs and other developingand transition economies and witnessedgrowing support from development partners.In 2020, 13 countriesbenefited from capacity-building activities under theProgrammeLiving up to itscommitment topartnership, a significantdevelopment in 2020 wasthe expansion ofsubscribed to thecollective vision ofsupporting developingcountries on theirjourney to e-commercefor development,while championingsuccessful initiatives.27 newsarticlesThe article ‘COVID-19has changed onlineshopping forever,survey shows’, whichshed light on the pandemic’s impact on thewere published on theway consumers useUNCTAD website generatinge-commerce and digitalsolutions, generatedmore than 50,000 uniquepage views, making itthe second most readnews item on UNCTAD’swebsite in 2020.96,000 uniquepage views14Leading rolein UNGIS32 partners2 new partnersas of Dec 2020 in 2020The CommonwealthSecretariatThe InternationalLabour OrganizationUnited NationsGroup on the Information Society,which was chairedby UNCTADin 2020-21.Thanks to new commitments fromsome donors, extra-budgetary fundingwill more than double, enabling theprogramme to:Strengthenthe team 2.7 6.5million millionin 2020 in 2021Respondto morerequests forassistance inall its areas.

The Programme demonstrated agility in steering resources where needed. As with many other organizations, following the measures introduced by the Swiss authorities in relation to the epidemiologicalsituation caused by COVID-19, in March 2020, the ECDE team switched to ‘working from home’ mode,which was still ongoing at the time of drafting this report (April 2021).During thepandemic, the ECDEteam undertookdedicated researchefforts relatedto the pandemicand its impact one-commerce‘COVID-19 andE-commerce: AGlobal Review’Targeted surveysof consumers aswell as e-commerce companiesDedicatedrepository onthe eTrade forall platformThe first researchoriented projectundertaken under theeTrade for all umbrella.to further enhanceunderstanding of thepandemic’s impactwith useful knowledgeresources from allpartnering organizations on ways to copewith the COVID-19fallout.NEWIn the spirit ofinnovation, several newactivities and featureswere introduced tostrengthen and providenew impetus for existingwork streams.eTrade -upRefinements ofthe Programme’sResults and M&Eframeworks.The Programme also “went digital” in a number of ways to ensure its delivery in criticaltimes.virtual eWeek2,000 in 2020participantsat the virtualeWeekas compared with1,500 at the “physical”eCommerce Week in 201948 Women digitalentrepreneursAll delivered online The Intergovernmentalin 2020Group of Expertsfrom 17 countries across SouthEast Asia and Africa participated ineTrade for Women e-Masterclasses Training workshops Publication launch eventsand stakeholder consultations15

3. Contributingto the SDGsDigital technologies can help accelerate progresstowards every one of the 17 SDGs of Agenda2030. By working to increase understanding, buildcapacity, and foster dialogue between developingcountries and their partners to enable them toreap the benefits and mitigate the risks of digitalization, the ECDE Programme contributes directlyto SDGs 5, 8, 9, 10 and 17.2The research pillar generates better official dataand analysis, which are needed to facilitate policyformulation to harness digital trade for development and promote inclusive and sustainable economic growth (SDG 8), foster innovation (SDG 9),reduce inequalities (SDG 10) and boost exports ofdeveloping and least developed countries (SDG17).We will improve digitalcooperation. Digital technologies have profoundly transformed society. They offerunprecedentedopportunitiesandnew challenges. When improperly ormaliciously used, they can fuel divisionswithin and between countries, increaseinsecurity, undermine human rights,and exacerbate inequality.Shaping a shared vision on digital cooperation and a digital future that show thefull potential for beneficial technologyusage, and addressing digital trust andsecurity, must continue to be a priorityas our world is now more than everrelying on digital tools for connectivityand social-economic prosperity. Digitaltechnologies have a potential to accelerate the realization of the 2030 Agenda.We must ensure safe and affordabledigital access for all. The United Nationscan provide a platform for all stakeholders to participate in such deliberations.»Declaration on the commemoration of theseventy-fifth anniversary of the UnitedNations, 21 September 2020Through its eTrade for Women initiative, whichis centered on the potential of women digitalentrepreneurs to thrive as business leaders andThe Programme’s eTrade for all initiative, establi-emerge as influential voices in the public policyshed for the purpose of enabling the internatio-debate, the Programme advances inclusive andnal community, in partnership with the privatesustainable economic growth by empoweringsector and other stakeholders, to join forces forwomen in the digital economy, in line with SDG 5a more inclusive digital future, epitomizes SDG 17.and SDG 8.16

ECDE Partners in 2020Funding and rammes,the private sectorand academia17

4. Main activities and accomplishments in 20204.1 Building knowledge on how to benefit from e-commerce andthe digital economyA key component of the ECDE Programme is itsthe Digital Economy Report 2021 got underwaypolicy-oriented research and analysis related toand various statistical information was updatedthe development implications of e-commerce andon the readiness of countries to engage in andthe digital economy. A stronger evidence basebenefit from e-commerce and on the volumeis required for countries to improve economic,and composition of e-commerce. New researchsocial and environmental outcomes. In 2020,was undertaken to consider the implicationsthe Programme gave particular emphasis to thefor developing countries of trade negotiationslinks between the COVID-19 pandemic and therelated to e-commerce.implications for e-commerce. Preparations forImplications of COVID-19 fore-commerce and developmentIn 2020, the research agenda of the ECDEProgramme was adjusted to give more focus onthe pandemic’s implications for e-commerce. Afirst assessment published already in April 2020drew attention to the rise in the use of digitalsolutions against the backdrop of wide divides interms of digital readiness. This was followed upwith two sets of surveys. The first was releasedin October, covered consumers in nine Suisse and NIC.br. The second, whichfocused on e-commerce businesses and policymakers in LDCs and other developing countries,stressed that despite new opportunities for digitalbusiness models, the outlook looked challengingfor many e-commerce businesses. Two-thirdsreported a rise in operational costs and almosthalf expected to cut their workforce.18COVID-19ANDE-COMMERCEIMPACT ON BUSINESSESAND POLICY RESPONSES

These and other inputs fed into a major underta-COVID-19ANDE-COMMERCEking under the eTrade for all initiative to analyzethe impact of COVID-19 on E-commerce at boththe global level and regionally. While most of theA GLOBAL REVIEWresearch took place in 2020, the Global Reviewreport was published in March 2021. Regionalreports prepared by four UN regional commissions were also planned for release in 2021. Thereport was featured as part of the online “Aid forTrade Stocktaking Event” organized by the WorldTrade Organization on 23-25 March under theme3: Digital connectivity and e-commerce, attendedby more than 100 people.The critical global policy challenge that emergedfrom this study was to ensure that greaterefforts are made to reduce inequalities in e-tradereadiness. All stakeholders have a responsibility in this context to ensure that e-commerceplays a positive role in national and internationalrecovery efforts. Resources should be committedto that goal.The Digital Economy ReportThe Digital Economy Report (DER) is an UNCTADflagship publication that is published every twoyears. It analyzes current trends and major international policy issues regarding ICT, e-commerceand the digital economy, and their implications fortrade and development. The Report reflects theand its key role in trade and development.During 2020, the main focus was on commissioning leading experts to prepare backgroundpapers that will feed into DER 2021, which willfocus on cross-border data flows and development.increasing pervasiveness of the digital economy19

The DER has a long shelf life and is one of the mostU N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N Tdownloaded publications of UNCTAD. During2020, more than 100,000 visits were recordedon UNCTAD’s website for the 2019 edition of theDER, making it the third most visited report of theorganization.The DER received coverage in multiple international media, including The Economist, theHindu Business Line, Forbes, and The GuardianNigeria. The latter two drew attention to the risksto developing countries of remaining mere provi-DIGITAL2019ders of raw data, and also highlighted the impor-ECONOMY REPORTtance of investing in data culture to harness theVALUE CREATION AND CAPTURE:IMPLICATIONS FOR DEVELOPING COUNTRIESopportunities presented by the digital economy.Geneva, 2019Technical Notes on ICT forDevelopmen

Figure 2. B2C E-commerce index, average values by country group, 2019 vs. 2020. Figure 3. Cyberlaw adoption rates in developing and least developed countries, 2018 vs. 2020 Figure 4. UNCTAD's eTrade Readiness Assessment status, as of December 2020 Figure 5. Overall implementation rate of eT Ready recommendations by country . Figure 6.