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Methodology
This GDI 2024 measures the digitalization of 77 countries that represent a total of 93% of the world's GDP and 80% of the global population, which should generally reflect global progress in digital transformation. The 77 countries are grouped into three clusters — Frontrunners, Adopters, and Starters — according to their level of ICT maturity and economic development. The GDI makes specific recommendations for the countries of each clusters on the acceleration of their digitization process.
Digitalization does not progress in isolation. Adequate ICT supply and strong demand are required to tap into its full potential. The GDI considered both economic value and industry development, helps countries improve the ROI of ICT investments, identify the strengths and weaknesses of their own ICT industry, and inform the development of national digitalization strategies.
These target values are extrapolated from market penetration projections based on the highest ranked countries, historical market performance, and expert opinions. Each country's score is then determined by its normalized raw data value in relation to this scale. In most baseline cases, a value that is less than 10% of the target value will be allocated a score of 1. A value of between 10% and 20% of the target value is allocated a score of 2, and so on.
|
VALUE (% of target value) |
GDI SCORE |
| 1-10% | 1 |
| 11-20% | 2 |
| 21-30% | 3 |
| 31-40% | 4 |
| 41-50% | 5 |
| 51-60% | 6 |
| 61-70% | 7 |
| 71-80% | 8 |
| 81-90% | 9 |
| 91-100% | 10 |
The enabler's weights are determined through factor analysis, which derives an index variable from an optimally weighted linear combination of the items, known as Factor Scores. The weight assigned to each item is based on its factor loading, reflecting the strength of its relation to the factor (GDI). Consequently, GDI allocates 30% to Ubiquitous Connectivity, Digital Foundation, and Policy & Ecosystem, and 10% to Green Energy.
The final index score is then calculated by aggregating the four segments:
GDI=\( \sum_{i=1}^{4}\left(\frac{\alpha_{i}}{n_{i}} \times \sum_{j=1}^{n_{i}} \text { Score }_{j}\right)\)
i：represents the four pillars
ni：represents the number of indicators for each pillar
j：represents the indicators of each pillar
αi：represents the weight of each pillar
Remarks:
The GDP used for GDI calculated is based on purchasing power parity (PPP), which account differences in the cost of living across countries. The latest data from sources such as the Organization for Economic Cooperation and Development (OECD), the International Telecommunication Union (ITU), GSMA, the World Economic Forum (WEF), the World Bank, the United Nations, Ookla, IDC, and Huawei. Missing data were estimated based on conditions within similar geographic regions. The data in the chart may be different from the actual calculation result due to rounding adjustment.
