Cybersecurity as an Economic Public Good: Challenges for Emerging Economies

Abstract

The rapid expansion of digital technologies has fundamentally transformed economic systems across the world. In emerging economies, digitalization has accelerated financial inclusion, service delivery, and market integration, but it has also generated new forms of systemic risk in the form of cyber threats. This chapter conceptualizes cybersecurity as an economic public good and examines why market mechanisms alone are insufficient to ensure adequate levels of digital security. Drawing upon economic theory, real-world incidents, and policy experience from emerging economies, the chapter analyses cybersecurity through the lenses of externalities, market failure, coordination problems, and state intervention. It argues that underinvestment in cybersecurity poses serious risks to economic stability, financial systems, and inclusive growth. The chapter concludes by proposing policy measures that emphasize collective action, public–private cooperation, institutional capacity building, and international coordination to strengthen cybersecurity governance in emerging economies.

Keywords: Cybersecurity, Public Goods, Economic Security, Emerging Economies, Digitalization