Author name: Nasruminallah Mian

*This article is from Volume 19-3 (Jul/Sep 2024) Abstract (The digital revolution is reshaping the world economy, creating new opportunities for sustainable development and inclusive growth. Digital technologies can enhance productivity, innovation, and connectivity, as well as support green development and social inclusion. However, harnessing the potential of digital transformation requires a strategic vision, a long-term policy framework, and coordinated implementation across sectors and stakeholders. Without these elements, digital transformation can also create new challenges and inequalities. Could digital transformation be the route for Pakistan to achieve leapfrogging growth?  We could draw on the experiences of several countries in the Asia and Pacific region that have successfully implemented digital policies and achieved digital development. It is also relevant to examine the hypothesis that the government and the state, both key actors in the growth and progress of a country, may have different roles and incentives in committing to long-term journeys such as digital transformation that span multiple governance regimes. The article is structured as follows. First, we discuss the concept and importance of long-term planning, especially in the post-COVID era, and the main components of a comprehensive policy framework for digital transformation. Second, we present some country examples of successful digitalization and identify cases of leapfrogging growth. Third, we analyze the role of the government and the state in pursuing and sustaining digital policies. Finally, we conclude with some implications and recommendations for Pakistan, a developing country with immense potential to benefit from digital transformation. – Author) Table of Contents Introduction 1. DIGITAL IS THE NEXT FRONTIER 2. THE ROLE OF LONG-TERM POLICY PLANNING 2.1. The need for comprehensive policy frameworks 3. REGULATIONS TILT THE BALANCE TOWARDS INNOVATION 3.1. Long Termism and Sustainability 4. INSIGHTS FROM COUNTRY VIGNETTES 4.1. China’s Internet Plus and Economies of Scale 4.2. Estonia’s Interoperable Digital Platforms 4.3. Singapore’s Smart Nation Initiative 4.4. South Korea’s Digital New Deal and 5G Networks 4.5. India’s Digital Public Infrastructure with a laissez-faire Approach 4.6. Lithuania’s Public Policy Innovations making it a leader in Fintech 4.7. UAE – a Country with a Ministry of Artificial Intelligence 4.8. Digital Denmark 4.9. Israel – the Startup Nation 5. LONG-TERM POLICY FRAMEWORKS ENABLE DIGITAL COUNTRY TRANSFORMATION 6. ARTIFICIAL INTELLIGENCE FOR LONG TERM COUNTRY EVOLUTION 6.1. Data Enables Learning 6.2. Artificial Intelligence can provide Insights and Foresights 6.3. The State is a Long-term Stakeholder 6.4. Digital transformation and leapfrogging approach to growth 7. LEAPFROGGING AND TRANSFORMATIVE GROWTH FOR PAKISTAN 7.1. Chinese Solar Panels- a case of transformative leapfrogging 8. LESSONS PAKISTAN CAN LEARN FROM THE EXPERIENCE OF OTHERS 9. POLICY RECOMMENDATIONS AND CONCLUSION   Introduction Digital technology innovation is transforming economies and investments in sustainable development are likely to be the leading drivers of growth for the coming  years.  With digital developments spurred on by COVID, a number of governments invested in making the changeover to digital processes and services; the internet, communication and digital technology have shaped development. Dynamic economies of our time are moving from old growth drivers based on low-cost manufacturing or services to new growth drivers that are enabled by technology, new materials and value-added manufacturing and services. Technology enabled industrial capacity and supply chain, together with innovation, is driving up the value of exports for countries like South Korea and Vietnam. There is also evidence that digitally evolved societies are more inclusive, particularly pertaining to women labor force participation. In a post Chat GPT world, Artificial Intelligence presents vast potential to enhance capacity and productivity and bring innovation to public sector service delivery. Different approaches and policy actions have resulted in various country trajectories; while the paths taken may have been different, there appears to be a sustained state commitment to the digital agenda in nearly all success stories. In some cases, there is clear evidence of a relationship between long-term public policy frameworks and the digital transformation of a country. Can Pakistan’s digital transformation contribute to the much needed growth?  Can the nation leapfrog and transition to achieve an accelarated economic growth through inclusive digital transformation? Pakistan is the third largest wheat producer in Asia and ranks among the top 10 for other agricultural products, with exports surpassing $6 billion. In South Korea, the manufacturing sector accounts for 12.5% of their $1.7 trillion GDP. India’s technology exports are approaching $200 billion, growing at an annual rate of 8.3%, contributing roughly $16 billion in 2022. In comparison, Saudi Arabia’s crude oil exports were valued at $224.8 billion in 2022. IT and Business process outsourcing (BPO) sectors form the largest portion (over 60%) of India’s service exports (EY India 2023). This has driven the growth of total services exports at a compound annual growth rate of 14% in dollar terms over the past twenty years. We can learn from the journeys taken by other developing countries in the Asia and Pacific region; however, such a digital transformation would require a long-term public policy commitment that can lead to digital evolution of the government and society. 1. DIGITAL IS THE NEXT FRONTIER Innovation in digital technology is revolutionizing economies, with sustainable development investments driving growth for the next decade and beyond. Digital transformation impacts various aspects of the economy and society in complex ways, making trade-offs between policy goals challenging. It also necessitates considering cross-cutting policy issues like skills, digital government, and data governance (OECD, 2021). The adoption and mainstreaming of digital technologies, however, requires an inspired vision, a strategic long-term view and investment in public policy frameworks. Emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT), blockchain, and 5G networks have the potential to transform industries and create new opportunities for businesses and individuals. Additionally, digital technologies support green development by enabling resource efficiency and reducing emissions by promoting telecommuting and supporting sustainable supply chains and data driven decisions. Digital transformation cuts across traditional sectoral boundaries necessitating a whole-of-government approach to realize its potential and to manage trade-offs across policy areas (OECD 2021). In the digital age, technology is essential to daily life, and nations are adopting digital transformation to enhance economic growth and competitiveness. However,