In our increasingly interconnected world, where digital technologies are rapidly transforming multiple aspects of daily life, the critical role of cybersecurity cannot be overstated, especially in developing nations. As these countries strive to harness the power of modern technology to drive economic growth, enhance public services, and elevate living standards, they concurrently face heightened risks associated with cyber threats. The increasing exposure of developing countries to cyber incidents is often compounded by various factors, including scarce resources, inadequate infrastructure, political unrest, inefficiencies in cybersecurity and technology markets, shortages of skilled cybersecurity professionals, legislative voids, and rapid rates of digital adoption. "Cybersecurity Economics for Emerging Markets" is a pioneering research work that delves into the drivers and profound consequences of cyber incidents worldwide. From economic setbacks that can destabilize entire economies to interruptions of vital services and impediments to social and economic development, the impacts of cyber incidents are far-reaching. This book analyzes hundreds of scholarly works and thousands of publicly disclosed cyber incidents over the past decade across some 190 countries. It sheds light on these incidents’ characteristics and trends, as well as the proactive roles that private market players and governments can assume to safeguard infrastructure in cyberspace effectively. The book presents practical, evidence-based policy suggestions that include efforts to strengthen the resilience of the most essential and interconnected sectors. It advocates for bolstering the national cybersecurity industries, strategizing cybersecurity research and development, addressing market failures through cybersecurity awareness and training programs, and taking proactive steps to reduce and control contagion effects from cyber incidents. By revealing crucial empirical and theoretical dimensions of cybersecurity economics, this book provides insights that could inform the creation of effective cybersecurity investments, with a focus on developing countries. These insights are invaluable for policy makers and stakeholders committed to fortifying the digital ecosystem against the ever-evolving landscape of cyber threats.
Authors
- Citation
- “ Vergara Cobos, Estefania . 2024 . Cybersecurity Economics for Emerging Markets . © Washington, DC: World Bank . http://hdl.handle.net/10986/42130 License: CC BY 3.0 IGO . ”
- Collection(s)
- Stand alone books
- ISBN
- 978-1-4648-2120-2
- Pages
- 132
- Published in
- United States of America
- Rights
- CC BY 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by/3.0/igo/
- UNIT
- Office of the Chief Economist for Infrastructure
- URI
- https://hdl.handle.net/10986/42130
- date disclosure
- 2024-09-17
- region geographical
- World
Table of Contents
- CYBERSECURITY 1
- ECONOMICS 1
- CYBERSECURITY 3
- ECONOMICS 3
- CYBERSECURITY 5
- ECONOMICS 5
- Contents 7
- Foreword 11
- Acknowledgments 13
- About the Author 15
- Executive Summary 17
- The Threat Landscape 17
- The Economic Costs of Cyber Incidents 19
- The Cybersecurity Market 20
- Conclusions and Policy Recommendations 22
- Notes 23
- References 23
- Abbreviations 25
- Introduction 27
- Note 30
- References 30
- The Threat Landscape 31
- Key Messages 31
- Introduction 33
- Unraveling a Decade of Disclosed Cyber Incidents 38
- Diversity of Cyber Risk 56
- Data Availability A Key Limitation to Achieving Tailored Solutions 60
- Policy Recommendations 61
- Annex 1A Databases of Disclosed Cyber Incidents 63
- Annex 1B The Cybersecurity Readiness Profile 66
- Annex 1C Bridging the Gap Variation in Commitment Scores versus Relative Exposure 68
- Notes 69
- References 71
- The Economic Costs of Cyber Incidents 75
- Key Messages 75
- Introduction 76
- Cybersecurity and Macroeconomic Stability 77
- Trends and Cost Characteristics of Cyber Incidents 78
- The Challenge of Measuring Indirect Costs 81
- Policy Recommendations 84
- Annex 2A Aggregated Costs of Cyber Incidents 86
- Annex 2B Literature Review on the Direct and Indirect Costs of Cyber Incidents 88
- Notes 94
- References 94
- The Cybersecurity Market 99
- Key Messages 99
- Introduction 101
- The New Digital Gap The Cybersecurity Gap 103
- The Market Influence of Governments in HICs 105
- Cybersecurity Market Failures 106
- Critical Cybersecurity 113
- Policy Recommendations 115
- Notes 116
- References 118
- Conclusion 123
- Glossary 125
- References 127
