In this article, we will look at the 25 least technologically advanced countries in the world. If you want to skip our detailed analysis, you can go directly to the 5 Least Technologically Advanced Countries in the World.
Global Digital Divide
The global digital divide has accelerated over the recent years. In 2022, over 1 billion new users joined the internet while nearly a third of the total world population remained offline, according to the International Telecommunication Union. Global disparities in the access and usage of the internet surged globally as the world dramatically shifted to online platforms in 2020 as a consequence of the pandemic. Countries in Europe and America were quick to adapt to the new change while developing countries suffered. Developed countries across the world boasted a high internet penetration of 87% while developing countries had only 44% of their population using the internet.
Technological progress requires investment in research and development, infrastructure, and government initiatives. Least developed countries, where the rural population is the highest lacked mobile coverage and were limited to 2G networks. COVID-19 further exacerbated existing inequalities, especially for low-income and vulnerable groups. One of the major barriers obstructing technological development is access to capital to afford innovation and deploy the infrastructure to support these tech advancements. With internet costs exceeding 2% of monthly gross national income per capita in several least developed countries, the road to development looks rather dented.
The nature of the digital divide is multifaceted and is not only limited to internet connectivity. It extends to adequate access to devices, affordable internet, digital literacy, and infrastructure to support a fast and reliable network.
How is Tech Censorship Hindering Growth?
Pakistan is facing a significant economic challenge as it implements a national internet firewall, Reuters reported. The Pakistan Software Houses Association (P@SHA) estimates that it could cause economic losses of up to $300 million. This move by Pakistan is to regulate and monitor content across social media. The senior vice chairman of P@SHA expressed its concerns over the prolonged internet disconnections and unstable performance of the VPN. This could lead to a meltdown of business operations and if extended can cause companies to move out of Pakistan and set their businesses elsewhere. The lack of transparency regarding the firewall has resulted in distrust among internet users and IT clients. Moreover, this also leads to proprietary data and privacy issues among enterprises operating in Pakistan.
This situation is concerning as Pakistan’s IT exports are continuously growing. In 2023, it reached a staggering $3.2 billion, up 24% year-over-year. The enforcement of the firewall and internet disruptions can dampen the growth trajectory. The government has already blocked access to social media platform X, formerly known as Twitter since February, to prevent anti-state activities. However, critics oppose it and call it an attempt to limit democratic accountability.
The potential economic impact of the firewall also stresses the broader issues of the global digital divide. Developing countries like Pakistan already face economic as well as global competition challenges. These disruptions can threaten the viability of Pakistan’s local tech businesses while also hindering foreign direct investments. Such restrictive measures can accelerate the existing disparities in countries like Pakistan that are far behind in technological advancements.
READ ALSO: 20 Most Corrupt Countries in Asia and 25 Poorest Countries in Asia by GDP Per Capita.
Investment Needs of Developing Countries
We recently talked about the growing tech trends in our piece about the most advanced countries in the world and discussed that electrification and renewables are among the biggest tech trends in 2024, other than Artificial Intelligence. However, as the world progresses toward cleaner energy sources, the technological gap between developed and developing nations is becoming dominant. Developing countries face a staggering $4 trillion investment deficit needed to achieve sustainable development goals, highlighting the urgent need to invest in green technology and clean energy to match the pace of developed countries.
Some of the biggest companies across the world are continuously investing in developing nations to improve their infrastructure to provide cleaner energy to their residents. Among them, First Solar, Inc. (NASDAQ:FSLR) emerges as a market leader in the renewable energy industry. It manufactures and markets low-carbon photovoltaic modules. The company has a nameplate manufacturing capacity of 16.6 gigawatts globally. It strives to reach 16 gigawatts in the US, aided by its continuous technological investments. Recently, it commissioned the largest solar research and development center in the Western Hemisphere, the Jim Nolan Center for Solar Innovation. The company invested $500 million in the center, taking the total investments by the solar leader to $2 billion so far.
The company strives to improve its solar panels by improving their efficiency, providing low degradation rates and longer panel life. It recently set a new world record as its California Technology Center achieved an efficiency of 23.1% for Cadmium-Tellurium (CdTe) cells, low-carbon photovoltaic cells. For context, CdTe solar modules have a typical efficiency range of 9-15%. The higher efficiency of these cells can result in longer life spans and lower levelized cost of electricity. This achievement puts First Solar, Inc. (NASDAQ:FSLR) closer to its goal of reaching 25% efficiency by 2025.
What sets First Solar, Inc. (NASDAQ:FSLR) apart is its strong foothold over the global market. It aims to reach 25 gigawatts of global manufacturing capacity by 2026. It has a total capacity of 5.5 gigawatts in Southeast Asia and is continuously increasing its presence there. One instance is its $700 million solar manufacturing facility in Tamil Nadu, India which boasts a total annual capacity of 3.3 gigawatts. Moreover, the company also has a strong presence in Africa. Leveraging its expertise across the value chain of solar production, the company has been active in Africa for over 10 years, particularly in South Africa, Namibia, Zambia, and Burkina Faso. Its innovative module technology has helped bring the cost of solar electricity down, leading to increased energy security free of fluctuating price impacts. Its reliable and highly efficient Series 6 PV modules generate nearly 7% more energy in Africa compared to other competing technologies. First Solar, Inc. (NASDAQ:FSLR) is also a member of the Power Africa Initiative and aims to support its goal of increasing cleaner electricity generation capacity to over 30,000 megawatts across the continent.
While we acknowledge the potential of FSLR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now, let’s have a look at the 25 least technologically advanced countries in the world.
Methodology
To compile our list of the 25 least technologically advanced countries in the world, we utilized R&D spending data of countries as a percentage of GDP for the latest year available. Our list includes countries for which R&D spending data was available for either 2020, 2021, or 2022. We have ranked countries in descending order of the said metric.
Please note our list does not include countries with unavailable or outdated data.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
25 Least Technologically Advanced Countries in the World
25. Mexico
R&D Expenditure as a Percentage of GDP: 0.27%
Mexico is ranked among the 25 least technologically advanced countries in the world. In 2022, the country spent only 0.27% of its GDP on research and development. Although Mexico has a growing IT sector with potential for advancement in the tech sector, it still faces many challenges including low R&D investment, skills gap, lack of focus toward innovation, inadequate policies, and poor infrastructure.
24. Burkina Faso
R&D Expenditure as a Percentage of GDP: 0.25%
Burkina Faso is ranked 24th on our list. Its economy is dependent on traditional sectors such as agriculture and mining which limits the focus on other high-growth tech sectors. Moreover, lack of investments and low income contribute to the absence of tech developments in the country. In 2016, the country had a digital adoption index of 0.236.
23. Georgia
R&D Expenditure as a Percentage of GDP: 0.24%
Georgia spent 0.24% on research and development in 2022. The developing country relies on non-tech sectors for its economy. It is one of the least technologically advanced countries in the world.
22. Moldova
R&D Expenditure as a Percentage of GDP: 0.23%
Moldova is one of the poorest countries in Europe. Some of the factors that hinder the tech advancements in the country include economic vulnerability, energy poverty, and political instability.
21. Bermuda
R&D Expenditure as a Percentage of GDP: 0.23%
Bermuda spent 0.23% on research and development in 2020. It is ranked 21st on our list.
20. Armenia
R&D Expenditure as a Percentage of GDP: 0.21%
Armenia is one of the least technologically advanced countries in the world. In 2022, it spent 0.21% of its GDP on research and development. Lack of investment in R&D is one of the key factors hindering development in its tech sector.
19. Bosnia and Herzegovina
R&D Expenditure as a Percentage of GDP: 0.19%
Bosnia and Herzegovina is ranked 19th on our list. The country is not excelling in tech and innovation due to many issues including complex legal and regulatory frameworks, corruption, a weak judicial system, and a poor investment climate. In 2022, it spent only 0.19% on research and development.
18. Panama
R&D Expenditure as a Percentage of GDP: 0.18%
The lower level of technological development in Panama can be attributed to high levels of corruption in the country along with other challenges. It is ranked 18th on our list of the least technologically advanced countries in the world.
17. Mali
R&D Expenditure as a Percentage of GDP: 0.17%
Mali’s tech progress is hindered by political instability and conflict. In 2021, the country spent 0.17% of its GDP on research and development.
16. Pakistan
R&D Expenditure as a Percentage of GDP: 0.16%
Pakistan is one of the least developed countries in the world. In 2021, it only spent 0.16% of its GDP on research and development.
15. Peru
R&D Expenditure as a Percentage of GDP: 0.16%
Peru ranks 15th on our list. Some of the major issues faced by the country that hinder overall growth and development include political instability, corruption, and economic volatility.
14. El Salvador
R&D Expenditure as a Percentage of GDP: 0.16%
El Salvador ranks 14th on our list as it spent 0.16% of its GDP on research and development in 2021.
13. Uzbekistan
R&D Expenditure as a Percentage of GDP: 0.16%
Uzbekistan is an emerging lower-middle-income economy. Its R&D expenditure was 0.16% of its GDP in 2022.
12. Azerbaijan
R&D Expenditure as a Percentage of GDP: 0.15%
Azerbaijan is ranked among the least technologically advanced countries in the world. It only spent 0.15% of its GDP on research and development in 2022.
11. Paraguay
R&D Expenditure as a Percentage of GDP: 0.14%
Paraguay ranks 11th on our list. Paraguay has a limited infrastructure for tech which hinders its growth. In 2021, it spent 0.14% of its GDP on research and development.
10. Kazakhstan
R&D Expenditure as a Percentage of GDP: 0.12%
Kazakhstan ranks 10th on our list. Its economy depends on its reserves of natural resources. However, the country is now embracing technology which can potentially decrease its reliance on oil for its economy.
9. Sri Lanka
R&D Expenditure as a Percentage of GDP: 0.12%
Lack of ICT literacy, inadequate ICT infrastructure, and inability to access e-government services are some of the biggest challenges faced by Sri Lanka. In 2020, it only had 0.12% R&D spending.
8. Tajikistan
R&D Expenditure as a Percentage of GDP: 0.09%
Tajikistan is one of the least technologically advanced countries in the world. It only spent 0.09% of its GDP on research and development in 2020.
7. Mongolia
R&D Expenditure as a Percentage of GDP: 0.09%
Mongolia lacks technological development. In 2022, the country had an R&D spending of 0.09%.
6. Kuwait
R&D Expenditure as a Percentage of GDP: 0.08%
One of the biggest challenges faced by Kuwait’s tech sector is the lack of data infrastructure. Moreover, the country’s low investment in research and development hinders its technological growth.
5. Kyrgyz Republic
R&D Expenditure as a Percentage of GDP: 0.08%
Kyrgyz Republic or Kyrgyzstan is ranked 5th on our list of the least technologically advanced countries in the world. In 2021, the country only spent 0.08% of its GDP on research and development.
4. Guatemala
R&D Expenditure as a Percentage of GDP: 0.06%
Guatemala is the 4th least technologically advanced country in the world. Major factors inhibiting digital growth in the country include weak digital literacy, inadequate infrastructure, and the unaffordability of digital technologies.
3. Trinidad and Tobago
R&D Expenditure as a Percentage of GDP: 0.05%
Trinidad and Tobago is ranked 3rd on our list of the least technologically advanced countries in the world. Its major issue hindering tech advancement is the lack of digital infrastructure.
2. Iraq
R&D Expenditure as a Percentage of GDP: 0.04%
Iraq ranks 2nd on our list. In 2021, the country spent only 0.04% of its GDP on research and development. Iraq’s tech growth is stunted due to political instability and isolation from global technology trends.
1. Myanmar
R&D Expenditure as a Percentage of GDP: 0.04%
Myanmar is ranked 1st on our list of the least technologically advanced countries in the world. The country had an R&D spending of 0.04% in 2022. The biggest challenges faced by the country include the rule of law, the role of the military, corruption, property rights, and social tolerance.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article was originally published at Insider Monkey.