This post is the first in a four-part series featuring a Dalberg study examining how digital public infrastructure can reshape the realms of finance, climate sustainability, and justice. 

In the rapidly evolving landscape of digitization, it is crucial to prioritize rights and inclusivity across technology, governance, and local digital ecosystems. Within this context, the implementation of responsible and people-centered digital public infrastructure (DPI) is imperative. In unveiling how DPI can reshape the realms of finance, climate sustainability, and justice, the United Nations Development Programme, in cooperation with Dalberg, conducted a study to quantify the potential human and economic impacts of DPI across these sectors by 2030.  

Currently, the utilization of digital public goods (DPGs) and DPI remains constrained to a limited set of applications, owing to a lack of awareness among governments regarding their potential. Outdated and exclusionary procurement guidelines, lack of IT vendors with expertise in the field, and a scarcity of well-funded DPGs exacerbate the issue. To facilitate rapid scalability and sustainability, countries require sustained financial support and innovative business models centered around the fundamental building blocks of DPI. The study by Dalberg followed a mixed-methods approach to estimate the economic and human impact of implementing DPI across 70 selected low- and middle-income countries (LMICs). The findings demonstrate how digital tools and technologies can play a pivotal role in getting countries back on track, but it is essential to apply them inclusively, sustainably, and comprehensively. 

From Cash to Digital: The Path to Inclusive Financial Services

The proliferation of mobile phones, internet access, and mobile money services in LMICs has led to significant advancements in digital financial services. These innovations have shifted the financial sector away from traditional offline modes towards faster, cost-effective, and inclusive digital systems. However, despite these developments, there is still a substantial gap in equitable access to digital financial services, with approximately 29% of adults in LMICs lacking formal bank accounts. 

The adoption of DPI has the potential to address these challenges. DPI’s impact can be observed across three specific use cases: accounts and social transfers, retail payments, and credit. DPI can enhance account access, increase the efficiency of government-to-person transfers, and expand access to credit. By leveraging digital public goods and open, interoperable digital solutions, countries can accelerate service delivery and prioritize inclusivity and resilience. By establishing the foundations for the public good and promoting interoperable digital infrastructure, countries can drive economic growth, foster inclusivity, and transform the financial landscape for marginalized and underserved communities. 

Read more here.

From Data to Action: Leveraging DPI for Climate Mitigation

Climate change is progressing faster than anticipated, requiring swift adaptation and mitigation strategies. LMICs, which prioritize economic growth due towith limited investment capacity, face unique challenges in addressing climate change. The use of digital tools for climate adaptation and mitigation is currently fragmented, hindering a comprehensive approach. 

DPI can strengthen effective, coordinated climate action. It can be implemented across various climate-related sectors, including carbon offsets, forest preservation, and weather information and monitoring systems. DPI can enhance transparency and efficiency in carbon credit trading, setting common standards for monitoring and verification. Open geospatial data and digital public goods can empower communities to combat deforestation by providing real-time monitoring tools. This could save unique forested areas and prevent the release of significant carbon emissions. Open-source weather monitoring systems can provide reliable local weather forecasts, benefiting agriculture and food security. DPI based on open-source principles and supported by digital public goods can revolutionize climate change mitigation in LMICs. With adequate investment and DPI adoption, nations can lay the foundation for sustainable climate action and protect both their citizens and the planet. 

Read more here.

The Role of DPI in Revolutionizing Access to Justice

Inadequate funding for judiciaries, typically less than 1% of national budgets, has hindered the expansion of court access and adoption of digital tools to enhance capacity. Open and inclusive DPI solutions, along with DPGs, have the potential to address these challenges. 

DPI can be impactful in two areas: case management systems (CMS) and online dispute resolution (ODR). Digitization of case management within formal judicial systems reduces case resolution time and increases throughput of cases in the system. Open and interoperable CMS can bring millions more individuals into judicial forums, reduce trial durations, and lead to significant cost savings. ODR systems can expand access to dispute resolution mechanisms, offer professional support, and expedite conflict resolution, potentially leading to substantial increase in economic output. DPI has the potential to enhance access to justice in LMICs by including millions more people in state-supported dispute resolution mechanisms. These systems can also enhance the business environment, reduce conflicts, and promote a more trustworthy future.build trust in public judiciaries. 

Read more here.