As we stand on the cusp of a new digital era, the importance of collaboration between the public and private sectors in driving innovation has never been more critical. Since the 1990s, Public-Private Partnerships (PPPs) have evolved from only focusing on physical infrastructure to encompassing the complex dynamics of interconnected physical and digital assets. As a result, Digital Public-Private Partnerships (DPPPs) have emerged as a way to create and deliver digital infrastructure and services, driving digital readiness and ultimately fostering economic growth and well-being – a task particularly relevant for Latin American countries.
The Network Readiness Index (NRI)
The latest version of the Network Readiness Index (NRI) focuses on DPPPs as a foundational vehicle to shape a digital future that is resilient, inclusive, and aligned with broader societal goals. The NRI is a global benchmark that evaluates how economies leverage technology for development and competitiveness. It assesses the impact of Information and Communication Technology (ICT) across four fundamental pillars: Technology, People, Governance, and Impact. Each pillar is further broken down into sub-pillars and indicators, providing a comprehensive view of network readiness in each evaluated economy.
While in the Americas, the United States continues to excel globally maintaining its leading position of the ranking, countries in Latin America and the Caribbean (LAC) display a mix of progress and persistent challenges.
| The Americas | Latin America & the Caribbean |
| United States of America (1st) | Brazil (44th) |
| Canada (11th) | Costa Rica (52nd) |
| Brazil (44th) | Uruguay (53rd) |
A Picture of LAC’s Network Readiness
Among Latin America, Brazil leads the results, ranking 44th globally. It shows mixed results where highly digitally engaged governments and businesses are somewhat offset by weaker results in adoption of digital technologies by individuals. It exhibits impressive performance in domestic market scale, e-participation, and government online services, but lags in the government promotion of emerging technologies.
Costa Rica follows at the 52nd position, demonstrating significant strides in digital inclusion and Sustainable Development Goals (SDGs) contributions. Uruguay and Chile are also notable performers, both maintaining a position within the top 55, and showcasing effective governance and a commitment to quality of life improvements.
When looking at the NRI pillars, Latin American countries performed best at the Governance and Impact pillars, maintaining a position within the top 43. In Governance, Brazil leads in the 39th position, while in Impact, Costa Rica stands out in the 29th spot globally. In contrast, People and Technology are the two pillars with remaining obstacles and challenges for Latin American countries, with some economies ranking as low as 70th globally.
| Economy | Technology | People | Governance | Impact |
| Brazil (44th) | 45 | 49 | 39 | 64 |
| Costa Rica (52nd) | 70 | 57 | 57 | 29 |
| Uruguay (53rd) | 66 | 45 | 55 | 43 |
| Chile (54th) | 69 | 54 | 40 | 61 |
Overall, the LAC regional performance highlights several areas for improvement for Latin America. Countries such as Peru and Argentina rank significantly lower than their peers, with issues ranging from limited ICT skills development to weaker regulatory frameworks. Moreover, socioeconomic disparities, particularly in rural and gender gaps in digital payment adoption, underscore the challenges of fostering equitable digital transformation.
LAC’s Strengths and Weaknesses
These mixed results can be further explained by the specific indicators signaled as strengths and weaknesses within each pillar for LAC countries.
| Pillar | LAC Strengths | LAC Weaknesses |
| Technology | – FTTH/building internet subscription – AI scientific publications – International internet bandwidth | – Internet access in schools – Investment in emerging technologies – Population covered by at least a 3G network |
| People | – Firms with website – Mobile broadband internet traffic within the country – Adult literacy rate | – ICT skills in the education system – AI talent concentration – Government promotion of investment in emerging technologies |
| Governance | – E-commerce legislation – ICT regulatory environment – Privacy protection by law content | – Cybersecurity – Rural gap in use of digital payments – Regulation of emerging technologies |
| Impact | – Domestic marke scale – Happiness – ICT services exports | – Income inequality – SDG5 Women’s economic opportunity – Prevalence of gig economy |
In Technology, many countries such as Nicaragua and Bolivia, score poorly in mobile connectivity, internet access in schools, and availability of high-speed broadband. In People, lack of ICT skills in the education systems and inadequate investment in developing human capital hinder the readiness for technological adoption. This is particularly prominent in countries like El Salvador and Nicaragua, where education-related indicators are notably weak.
In Governance, there exist socioeconomic gaps in access to digital payments and a significant rural-urban divide in internet usage, highlighted by issues of inclusion ranked poorly across various countries, notably Argentina and Guatemala. In addition, a significant weakness is observed across these three pillars in the investment, promotion, and regulation of emerging technologies. Countries like Honduras and Venezuela rank poorly on governance aspects.
Finally, for Impact, income inequality and a low contribution to SDG5 ‘Women’s economic opportunity’ signal the important barriers still present in the region in terms of economic opportunity and equality across the population and the need for substantial improvements in infrastructure, governance, and education.
The Importance of Digital Public-Private Partnerships (DPPPs)
The NRI 2024 edition emphasizes the transformative potential of DPPPs in driving digital readiness. By bringing together the agility of private sector innovation with public sector accountability, DPPPs can address infrastructure deficits, enhance digital skills, and foster inclusion in LAC countries.
Firstly, DPPPs can help bridge the digital divide by providing accessible technologies to underserved communities, ensuring equitable access to digital services. Costa Rica exemplifies how collaboration between government and technology providers can bridge rural connectivity gaps, improving access to essential digital services. An agreement signed between the National Institute of Learning of Costa Rica (INA) and Ericsson in 2024 is supporting the development of the digital skills demanded by the Costa Rican labor market, as well as strengthening its digital ecosystem. The collaboration enabled by this agreement includes the development of several programs aiming at harnessing the full potential of 5G technology, promoting digital skills, and providing tools for digital transformation to entrepreneurs and citizens. The “21st Century Technologies” program, for instance, provides students and teachers with access to online self-learning materials and training in key technologies including telecommunications, artificial intelligence, automation, IoT, and 5G. A series of lectures will be also conducted by Ericsson experts in collaboration with academic institutions.
Public-Private Partnership to promote digital skills in Costa Rica The National Institute of Learning of Costa Rica (INA) and Ericsson signed an agreement in 2024 to promote collaboration between experts, teachers, students, and the industry to harness the full potential of 5G technology, contribute to the development of talent with digital skills, facilitate exploration of various use cases, and provide tools for digital transformation to entrepreneurs and citizens. The agreements include the “Connect to Learn” program, which aims to support different actors in society in reducing the digital divide and developing digital skills to improve the quality of life and create new opportunities for the population and businesses through widely available connectivity and access to inclusive and quality educational content. Additionally, the “Ericsson 5G University” program aims to provide educators with a deep understanding of 5G technology and improve their digital skills. Through the inclusion of concepts and fundamentals of wireless communication technology in classes, the program enhances the knowledge and skills of students, preparing them for future employment in the ICT sector. Similarly, the “21st Century Technologies” program will provide students and teachers with access to online self-learning materials and training in key technologies including telecommunications, artificial intelligence, automation, IoT, and 5G. A series of lecture will be also conducted by Ericsson experts in collaboration with academic institutions. The collaboration enabled by this agreement supports the development of the digital skills demanded by the Costa Rican labor market, as well as strengthen its digital ecosystem, contributing to the improvement of living and working conditions for the citizens of the country. |
Secondly, by integrating cutting-edge technologies like AI and IoT into public services, DPPPs enable governments to modernize service delivery and enhance the efficiency and quality of services offered. Finally, DPPPs leverage blended financial models, combining public funds with private investment, which can significantly enhance funding digital transformation initiatives. Brazil, for example, has leveraged DPPPs to expand its telecommunications infrastructure and introduce scalable digital solutions. The “Brasil Mais Produtivo” program implemented by SENAI (National Service for Industrial Training) in partnership with the Brazilian government, assesses companies’ digital readiness and provides financial support for adopting and developing digital technologies. Through digital transformation and improved processes and management, participating companies can optimize their operations and save resources, generating significant financial results!
Looking Ahead
The global digital landscape underscores the growing importance of comprehensive digital transformation strategies that address not just technological infrastructure, but also regulatory frameworks, skills development, and digital inclusion.
Success stories from LAC leading countries – like Brazil and Costa Rica – illustrate that strategic initiatives can drive significant progress and a path to improved network readiness, even within constrained economic contexts. This requires targeted investment in emerging technologies, regulatory frameworks to foster innovation, and a stronger focus on digital literacy programs. Several steps to improve LAC’s NRI performance can be highlighted from the results:
- Investing in robust and widespread digital infrastructure, including high-speed internet access and mobile connectivity.
- Focusing on developing ICT skills through educational reforms, targeting both young people and the workforce, can empower individuals to effectively engage with emerging technologies.
- Strengthening collaborations between public and private sectors to facilitate investments in technology and innovation can enhance digital service delivery and infrastructure.
- Establishing clearer regulatory frameworks to promote investments in digital technologies, along with strong governance structures, can help overcome administrative hurdles and foster a supportive digital economy.
- Increasing government and private sector investments in R&D can spur innovation and drive the local technology ecosystem, which is vital for staying relevant in a fast-evolving digital landscape.
- Ensuring equitable access to technology for marginalized communities can help bridge the digital divide and unlock the full potential of the digital economy.
In sum, as the global digital landscape evolves, Latin American countries must prioritize comprehensive strategies that address infrastructure, governance, and societal impacts. By embracing DPPPs, the region can leverage its growing ICT potential to bridge existing gaps and build a more inclusive digital future.
Jonathan Puerta is a Portulans Institute Fellow, consultant, and researcher in economics of innovation, artificial intelligence policy, competitiveness, and industrialisation. He specialises in conducting research and policy evaluation, managing cross-sector projects, and collaborating with global stakeholders. Jonathan holds a Distinction MSc in Science & Technology Policy from the University of Sussex and a BSc in Business Administration from Universidad de Antioquia. He is also a One Young World Ambassador, Global Shapers Fellow, and YLAI alum.