Building the Digital State

Many governments use institutions designed in the 19th century and technology developed in the 20th century to solve the challenges in the 21st century. The results are predictable. The 2017 Edelman Trust Barometer survey showed that 85 percent of citizens around the world felt the system in their country was not working for them. Growing frustration with the seeming inability of government institutions to meet the needs of citizens is emerging as a potent driver of popular anger.

These failings carry major financial, administrative, and human costs. In the absence of systems that would provide increased levels of accountability and transparency, the limited resources available for public sector investment are often diverted or misappropriated. In the U.S. alone, the Treasury Department makes $144 billion in improper payments each year. The United Nations estimates annual global losses due to malfeasance and corruption total $3.5 trillion – money that could otherwise be directed to advance the Sustainable Development Goals. These failings carry profound consequences for individuals, not only institutions. In Puerto Rico, for example, over 60% of requests for hurricane assistance have been denied due to inadequate public records to support the claims. Disparities between technological “haves” and “have nots” are poised to widen over the next decade as artificial intelligence (AI), blockchain, and derivative technologies move toward wider adoption in commercial applications. If governments fail to keep pace, societies as a whole will struggle even more to adapt successfully to these new dynamics.

Disparities between technological “haves” and “have nots” are poised to widen over the next decade as artificial intelligence (AI), blockchain, and derivative technologies move toward wider adoption in commercial applications.

In the past, there were few options for pursuing system-level improvements in delivery of public value outside of political change. However, this dynamic is shifting with the emergence of new technologies that can transform the delivery of public value for tens or even hundreds of millions of people at a time. Deploying modular, interoperable solutions for core public sector challenges and functions such as identity validation and data management could provide the framework for an integrated government “operating system.” The core infrastructure would serve as a foundation for providing citizens with more equitable, democratized access to the digital economy and a broad range of social and political opportunities.

New America is working with the Rockefeller Foundation and the Beeck Center for Social Innovation + Impact, along with other partners, to develop technology platforms, build networks, pursue research, and establish principles with the goal of upgrading the operating and delivery systems that power governments worldwide. Improving the efficiency, accountability, security, and transparency of public institutions can provide a foundation for solving an array of global challenges ranging from economic inclusion and sustainable development to civic engagement and the restoration of public trust in institutions.

Today we kicked off this work on the digital state with a strategic dialogue at Blockchain Central at the 2018 Concordia Summit in New York. We hosted a roundtable discussion with leaders from the fields of social impact and governance and we would like to thank the following participants for committing their time and perspective to this new initiative.

Participants

• Thea Anderson, Director, Digital Identity, The Omidyar Network
• Dan Baer, Executive Director, Colorado Department of Higher Education
• Brian Behlendorf, Executive Director, Hyperledger
• Karen Bhatia, Vice President, New York City Economic Development Corporation
• David Burt, Premier, Bermuda
• Congressman Carlos Curbelo, R-FL
• Thomas Garrett, Secretary General, Community of Democracies
• Zia Khan, Vice President, Innovation, The Rockefeller FoundatioN
• Robert Opp, Director, Innovation & Change Management Division, UN WFP
• Sonal Shah, Executive Director, Beeck Center for Social Impact & Innovation at Georgetown University
• Tomicah Tillemann, Co-Founder, Blockchain Trust Accelerator, Chairman, Global Blockchain Business Council

For more information on our work, please email us at bta@newamerica.org and follow us @BlockchainTA.