Building a Strong Foundation: The Importance of Digital Public Infrastructure to Foster an Inclusive and Resilient Digital Economy
Digital Public Infrastructure (DPI) has become a hot topic in identity communities, but as with any technology, will only deliver the promised benefits if properly implemented.
This was the key message from ID4Africa 2023 Workshop Reports on Building DPIs & Developing the African eCRVS Shared Asset in Nairobi, Kenya.
The prominence of Digital Public Infrastructure (DPI) within identity communities and its substantive role in driving the digital economy can be attributed to several factors. Recognizing the need to foster inclusive participation and instill confidence and trust in the digital age, the World Bank Group emphasizes the development of robust digital infrastructure.
DPI empowers individuals to seamlessly engage in a plethora of digital services. For instance, a textile worker nestled in a remote region of northern India effortlessly applies for social benefits through a few taps on her mobile phone, with funds swiftly transferred to her bank account. Additionally, she can readily enrol in skills training programs or electronically sign loan applications. Similarly, in Thailand, farmers enjoy the convenience of receiving fertilizer subsidies directly into their bank accounts, which are linked to their national identification records. The citizens and residents of Singapore relish the convenience of conducting a wide array of transactions online, be it registering a birth, filing taxes, or initiating a new business venture, regardless of their geographical location.
At the core of these seamless experiences lies the digital public infrastructure (DPI), encompassing a diverse range of solutions and systems that facilitate fundamental societal functions and services. These include the verification of identities with utmost security, coupled with trust services such as electronic signatures and verifiable credentials. Furthermore, DPI addresses the crucial challenges of seamless payment transfers between individuals, businesses, and governments, paving the way for efficient financial transactions. Moreover, it facilitates the smooth exchange of data across government entities and the private sector while upholding stringent safeguards for the protection of personal data, with mechanisms such as consent and privacy provisions.
Illustration: UNPD – A whole-of-society approach to digital transformation, as outlined by the UNDP.
Image: UNDP
ID4Africa 2023 Workshop 1 – World Bank Delves into DPI Foundational Groundwork
The World Bank convened Workshop 1 on “User-Centric Digital Public Infrastructure” to delve into the foundational platforms that serve as the “roads and railways” of the digital age – digital public infrastructure (DPI). DPI encompasses the likes of digital identity, payments, data exchange, and trust.
During the workshop, a fictional nation named “Digital Numeriqa” was introduced, aiming to enhance its inclusivity and digitize its economy through universal digital identity. Despite political support, ample funding, meticulous planning, and good intentions, the hypothetical program encountered familiar obstacles like low rural registration rates, unsuccessful integration by government agencies, and waning momentum leading to project termination.
To make the digital ID program successful, workshop participants highlighted the significance of effective public engagement in both the planning phase and garnering public support. The World Bank provides tools for conducting public engagement, and panelists underscored the need to proactively identify local community groups, initiate engagement early on, and support government officials unfamiliar with community engagement efforts.
Additional insights emphasized the importance of designing easily accessible and user-friendly digital ID systems, especially for rural populations. Furthermore, ensuring interoperability with other systems, such as payment systems and data exchange platforms, was seen as crucial for the seamless functioning of digital ID systems.
India and the US to Work Together on Digital Public Infrastructure
The Presidents of India and the US, Narendra Modi and Joe Biden, have announced their intention to work together to promote the implementation of digital public infrastructure (DPI). The two leaders made the announcement as part of a strategic partnership agreement, which includes a commitment to “explore a digital development partnership.”
DPI is a set of foundational digital services that can enable open and inclusive digital economies. These services include identification, payments, and data exchange. DPI can help to improve government efficiency and transparency, reduce poverty and inequality, and boost economic growth.
However, not all observers agree that the benefits of DPI will be realized. Some argue that digitized government services can undermine democratic institutions and violate individual rights. Others argue that the development benefits of DPI are much less certain than the profit motive of institutions.
It is important to carefully consider the risks and challenges involved in implementing DPI, and to put in place strong governance frameworks to protect people’s rights. With careful planning and execution, DPI can deliver significant benefits for development and inclusion.
The Importance of Governance
Dr. Emrys Schoemaker, a senior research fellow at Caribou Digital, argues that governance is the key to realizing the potential of DPI. He writes that DPI is “neither good, nor bad but never neutral.” Its impact will depend on how it is governed.
Schoemaker identifies three key elements of good DPI governance:
Institutional capacity and expertise: Governments need to have the capacity to develop and implement DPI effectively. This includes having the right people with the right skills, as well as the right processes and systems.
Risk and impact assessments: Governments need to carefully assess the risks and potential impacts of DPI before it is implemented. This includes considering the potential for discrimination, privacy violations, and other negative consequences.
National governance frameworks: Governments need to put in place national governance frameworks that protect people’s rights and ensure that DPI is used in a responsible way.
Conclusion
In a Nutshell
DPI holds immense promise for fostering development and promoting inclusivity. Yet, we must tread cautiously, acknowledging the potential risks and challenges it presents. It is vital to establish robust governance frameworks that safeguard individuals’ rights and protect their interests. To fully harness the benefits of DPI, it requires concerted efforts in development and implementation to ensure equitable access and inclusion. With ongoing initiatives by organizations like the World Bank Group, we are on the path towards a digital future that empowers individuals and spurs economic growth.
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