payments and online banking which are critical for the development of a digital society. As a result, Nepali
society has not been able to reap the full benefits of the ongoing digital revolution.
Emerging business models and disruptive technologies such as artificial intelligence (AI), robotics, and the
Internet of things (IoT) are transforming the way work is done. These digital technologies are allowing
governments and enterprises globally to unlock the potential to achieve exponential growth.
Digital as a Catalyst for Exponential Accelerated Growth
There are strong linkages between digital adoption and GDP growth. According to a World Bank report,
every 10% increase in Internet penetration in a country results in incremental economic growth of 1.3%. 16
The impact is more pronounced once the penetration reaches critical mass.
Source: World Bank; International Telecommunication Union (ITU); Nepal Telecommunications Authority
Nepal needs to expand at a significantly higher rate (8%–10%) than current projections (~5%) to have a
realistic chance of meeting the income criteria for elevation from the LDC category by 2022 and becoming
a middle-income country by 2030. Disruptive digital technologies have the potential to enable Nepal to fasttrack its socioeconomic growth. The Digital Nepal framework intends to guide Nepal in identifying critical
digital initiatives that can allow it to meet its growth potential.
16
Exploring the Relationship Between Broadband and Economic Growth, World Bank, 2016
17
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