Tuesday, 03 August 2021 01:52

Possible closing of broadband gap would create more than 44 million jobs in El Salvador

Written by Evelyn Alas

The mission of the Inter-American Development Bank (IDB) is to assist in the development of Latin America and the Caribbean (LAC) and to finance efforts to reduce poverty and social inequality in the region.

It is a socioeconomic index that provides a simple measure of the current status and development of broadband in the region. One of its objectives is to help identify the main obstacles to broadband development in IDB member countries. In addition, the IDBA helps to measure the success of the implementation of projects aimed at the development of the sector through the degree of compliance with the objectives set. The possible closing of the broadband gap is the one that projects the creation of more than 15 million jobs in the world.

But if El Salvador invests, it could be creating more than 44.1 thousand jobs for the investment in CAPEX MÓVIL of 10%, which would be US$37.7 million and an investment in CAPEX FIJO of US$86.5 million, which would surpass the central government's goal of generating new jobs, since every year at least 33 thousand high school graduates leave the country.

The Desarrollo de la Banda Ancha (IDBA) consists of measuring in a simple way the current status and development of broadband in Latin America and the Caribbean (ALC).  The ABDI and all relevant information is publicly available for consultation on the IDB's broadband portal.

Although the private sector makes significant investment efforts every year in most countries, strategic public investment is needed to articulate public-private partnerships to reach the most remote and disconnected areas of the region.

The percentage of rural investment needed in each country has been estimated based on population density and the percentage of rural population. The higher this indicator, the lower the expected financial return and the greater the need for public intervention.

The index evaluates a very challenging and essential element in the information society: broadband development. In addition, based on the variables that comprise it, four other specific development measures are offered, which are the pillars on which broadband development is based:

  • Public Policies and Strategic Vision.
  • Strategic Regulation.
  •  Infrastructures
  • Applications and Training

The methodology followed for calculating the IDBA. It explains how the index is conceptually composed and the way in which the values of the variables are incorporated; likewise, the components of the IDBA and their interrelationships are described.

The variables are the minimum units of information that form part of the IDBA. This section presents the 44 variables used in the study. Of these, 3 0 form a direct part of the IDBA, while the remaining 1 4 are considered auxiliary variables that have contributed to constructing new variables, to aggregating the clusters or simply to providing information on the country in question for a correct analysis of its situation.