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Cabinet hopes digital economy to add extra 5% to GDP

In the next three years, broadband Internet should appear across Ukraine.

Cabinet hopes digital economy to add extra 5% to GDP
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The Cabinet of Ministers at a meeting on Wednesday, 17 January, approved the Concept of Development of Digital Economy for 2018 - 2020 and approved a road map for its implementation.

The concept, developed by the Ministry of Economic Development and IT experts, provides for a shift from a raw-material type economy that consumes natural resources to high-tech industries and efficient processes through IT technologies and communications.

"Today, about 35% of the rural population of Ukraine do not have access to broadband Internet at all, 53% of Ukrainian schools and 99% of medical institutions are not connected to Internet either. The situation may be overturned through public-private partnership projects. In just a few years, broadband Internet coverage may reach 80 % figure," said Stepan Kubiv, First Vice Prime Minister and Minister of Economic Development and Trade.

According to the concept, broadband Internet should expand throughout Ukraine in the next three years. The document also provides for the digitalization of educational processes and stimulation of digital transformations in education, medicine, ecology, non-cash economy, infrastructure, transport, public security, etc.

"The successful experience of Sweden, Korea, Estonia, Ireland, and Israel shows that the immediate effect of the integrated development of the digital economy can amount to 20% of GDP in five years. Our ambitious plan until 2021 provides for at least extra 5% GDP growth thanks to the development of the digital economy. This will be an entirely new quality of life for Ukrainians," deputy head of the Ministry of Economic Development and Trade, Mykhailo Titarchuk, told the Cabinet meeting.

Last fall, President Petro Poroshenko called for providing the rural areas with high-speed Internet access so that villagers could use the telemedicine service.

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