Briefing Paper

Policy to Support Digital Trade: Lessons from Two Emerging Economies

This briefing explores policy experiences in the digital economy and digitalisation through a
detailed study of two selected countries, Brazil and Indonesia. This critical analysis provides
insights into how policymakers can regulate and deal with the challenges of the emerging digital
economy. Overall, digital policy directions in these two countries have much in common. While both
countries already have core digital regulation and infrastructure in place, policymakers are
working to refine policy to ensure that it fits with the changing needs of the digital economy
and digitalisation. Both countries are moving beyond market-enabling policies to focus on a
number of strategic areas through interventionist policies, rather than allowing a relatively passive
diffusion of technology and knowledge. Not all of these initiatives have been effective and some
carry costs, but in certain areas they have been associated with more vibrant local sectors that are
helping increase local economic value added.