Facilitation 2.0: Trade and Investment in the Digital Age

The report details the 'Facilitation 2.0' initiative in Papua New Guinea, focusing on three primary reform pillars: the passage of an Electronic Transactions Act, the development of a digital payments ecosystem, and the attraction of foreign direct investment (FDI) into the digital economy. It highlights the necessity of a legal framework for e-signatures and contracts to enable paperless trade and business efficiency. In the payments sector, it identifies low financial inclusion and infrastructure gaps as major hurdles, recommending risk-based KYC schemes and improved interoperability. For digital FDI, the report uses a global survey to argue that regulatory stability, digital skills, and data security are paramount for attracting investors. The document concludes with a multi-agency roadmap for the Papua New Guinean government to operationalize these digital transformation goals.

• The proposed Electronic Transactions Act (ETA) is essential for providing a legal framework for e-transactions, including online contracts and electronic signatures, which would reduce uncertainties and boost business efficiency.
• Implementing cross-border paperless trade measures could significantly benefit Papua New Guinea, with estimates suggesting a 12% increase in exports (approximately $400 million per year) and a 28% reduction in trade costs (over $85 million per year).
• Digital payment adoption in Papua New Guinea is severely hindered by low financial inclusion, with only 20% of adults holding commercial bank accounts and only about 20% of the population possessing formal identification.
• To increase the adoption of digital payments, the report recommends that the government distribute public-sector salaries and social benefits through e-money accounts and consider tax credits for small businesses using digital payments.
• The Bank of Papua New Guinea is encouraged to adopt a tiered know-your-customer (KYC) scheme to lower barriers for low-value, low-risk accounts and improve financial inclusion for the unbanked.
• A global survey of 310 investment decision-makers indicates that the most critical 'big picture' factors for investing in a digital economy are the level of digital skills, regulatory stability and predictability, and the overall regulatory framework.
• For investors specifically targeting new digital activities, the highest priorities are data security regulations, copyright laws for intellectual property protection, and data privacy regulations.
• The availability of e-payment services was identified as the most important factor for existing firms deciding whether to adopt new digital technologies.
• Regarding physical infrastructure for digital FDI, investors prioritize international connectivity, national backbone connectivity, and urban connectivity over rural connectivity.
• The most important regulatory elements for attracting digital infrastructure investment are the ease of receiving licenses, the availability of skilled local engineers, regional coordination for investment, and the use of international standards.

APA

World Economic Forum (2020). Facilitation 2.0: Trade and Investment in the Digital Age. http://www3.weforum.org/docs/WEF_Facilitation_Insight_Report_2020.pdf

Chicago

World Economic Forum. Facilitation 2.0: Trade and Investment in the Digital Age. 2020. http://www3.weforum.org/docs/WEF_Facilitation_Insight_Report_2020.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Facilitation 2.0: Trade and Investment in the Digital Age |date=October 2020 |url=http://www3.weforum.org/docs/WEF_Facilitation_Insight_Report_2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020facilitation, author = {{World Economic Forum}}, title = {{Facilitation 2.0: Trade and Investment in the Digital Age}}, institution = {World Economic Forum}, year = {2020}, month = oct, url = {http://www3.weforum.org/docs/WEF_Facilitation_Insight_Report_2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }