May Digital Matters

This month’s Digital Matters—our monthly round-up of news, research, events, and notable uses of tech—highlights the transformative power of digital infrastructure investments, evolving challenges in technology governance, and the impact of digital initiatives on democracy and public policy.

First, we explore how investments in digital infrastructure are driving economic growth and inclusivity. From the Mojaloop Foundation's financial inclusion efforts, to Google's connectivity projects in Africa, and the Open Contracting Partnership's procurement advancements, these digital transformation initiatives demonstrate the inclusive potential of investments that are committed to user-focused outcomes.

Next, we delve into the emerging trends and challenges in technology governance. Earlier this month, U.S. Secretary of State Antony Blinken delivered a speech in San Francisco announcing a cyber strategy that emphasizes global cooperation and emphasized an approach to “digital solidarity” as a response to the more divisive “digital sovereignty” discourse.

Finally, we examine how digital initiatives influence democracy and public policy. Tech was at the forefront of events and policy as practitioners and advocates stress the need to consider broader societal impacts when pursuing tech governance in the public interest.

Bonus kudos are in order for three good things: Code for America summit, Taiwan’s digital minister Audrey Tang’s plan to align tech with democracy, and the IRS making Direct File permanent and is asking all states to join in 2025. Code is hosting their annual event this week in Oakland, Building a new digital age that works for all – an effort we support every day. And separately, Audrey Tang, Taiwan’s first digital minister, wrapped up her ministerial role this month and is launching a book tour for Plurality: The Future of Collaborative Technology and Democracy. We can’t help but get giddy when well designed pilot programs show so much promise that governments move to expand and fully operationalize effective digital systems. Yesterday, the IRS announced plans to offer Direct File to more Americans. This year the Direct File pilot was operational in 12 states and helped 140,000 taxpayers claim more than $90 million in refunds and save an estimated $5.6 million in filing costs.

As digital technologies evolve rapidly, it is crucial to align investments, governance, and policies to serve the public good, promote inclusivity, and protect fundamental rights. Let’s dive into this month’s highlights.

How does investment in digital infrastructure drive economic growth and inclusivity?

As countries around the world focus on digital transformations, investment in digital infrastructure emerges as a critical theme. The ability of digital infrastructure to stimulate economic development is well-documented, yet its potential to foster inclusive growth demands greater attention. By enhancing connectivity and financial services, digital infrastructure can uplift marginalized populations, bridge the digital divide, and support economic resilience. However, to realize these benefits, investments must be designed with the needs of end-users at the forefront.

Improving connectivity and accelerating economic growth across Africa with new investments, by Brian Quigley, Google Cloud (May 23, 2024)

Google announced new investments aimed at enhancing digital infrastructure and security across Africa to boost connectivity, economic growth, and resilience. The most ambitious feature of the program is the Umoja project, a fiber optic route connecting Africa with Australia. The Umoja project is anchored in Kenya and passes through several African countries. This initiative, part of Africa Connect, aims to establish a reliable and resilient network for the region. In addition to infrastructure, Google will collaborate with Kenya’s Ministry of Information Communications to improve cybersecurity, digital innovation, and AI deployment. Since opening its first office in Nairobi in 2007, Google has invested significantly in Africa's digital transformation, committing $1 billion by 2026. Initiatives like the Google Hustle Academy and AI Research Centers in Ghana and Nairobi are designed to support local entrepreneurship and address regional challenges. These investments and collaborations are set to drive further economic growth and digital inclusion across the continent.

Mojaloop Foundation Unveils Inaugural Report Highlighting Mojaloop’s Role in Advancing Financial Inclusion, by Mojaloop (May 15, 2024)

The Mojaloop Foundation unveiled its inaugural report on May 15, 2024, highlighting significant progress in advancing financial inclusion through its open-source software. The report, titled "Bridging the Gap: Advancing Financial Inclusion with Mojaloop," showcases achievements over the past year, including national deployments in Rwanda, Mexico, and the Philippines, as well as a regional deployment across COMESA. The Foundation emphasizes the importance of inclusive, interoperable payment systems tailored to local needs, driven by strategic partnerships and community engagement. Key advancements include enhancements to the Mojaloop software, making it more robust and secure, and collaborations with industry leaders to accelerate the adoption of Mojaloop-based solutions. Executive Director Paula Hunter and Chair Kosta Peric highlight the Foundation's commitment to building an inclusive financial ecosystem that empowers underserved communities globally. The report underscores the Foundation's vision of universal financial inclusion, where everyone can access necessary financial services via simple mobile technology.

Open Contracting Partnership's 2023 Annual Report by Open Contracting Partnership (May, 2023)

The Open Contracting Partnership's 2023 Annual Report highlights significant advancements in transforming public procurement to improve policies, markets, and people's lives. Key achievements include enhancing flood defenses for up to six million people in Assam, India, implementing nearly 100% green criteria in Lithuania's government procurement, and fostering economic inclusion in the Dominican Republic. The end of their second five-year strategy documents 14 examples of improved competition, efficiency, value for money, integrity, innovation, and inclusion, setting the stage for their new strategy to 2030. Reforming public procurement practices towards open and transparent processes can shift the overall procurement landscape and help deliver better people-centered outcomes.

What are the emerging trends and challenges in technology governance?

In the evolving landscape of technology governance, new initiatives and legislative measures are reshaping the way we manage and regulate digital technologies. From international cyber strategies to comprehensive regulatory frameworks, these efforts aim to address the complexities and risks associated with technological advancements. However, ensuring these regulations effectively protect public interests while fostering innovation remains a significant challenge. The U.S. could be doing more. Over the last six years, the only significant piece of technology regulation to emerge from Congress has been a forced divestment and possible ban of TikTok. But there are parallel efforts that can complement regulation (or the absence thereof) and contribute to better outcomes.

Technology and the Transformation of U.S. Foreign Policy by Antony J. Blinken, Secretary of State (May 6, 2024)

U.S. Secretary of State Antony Blinken announced an international cyber strategy at the RSA cybersecurity conference in San Francisco on May 6, 2024. The strategy outlines the Biden administration’s plans to engage globally on technological security issues, aiming to advance economic prosperity, enhance security, promote human rights, and address transnational challenges. Blinken emphasized "digital solidarity" and mutual assistance for victims of cyberattacks. The strategy, grounded in the National Cybersecurity and National Security Strategies, focuses on maintaining an open, secure digital ecosystem, coordinating digital governance, and building coalitions to counter cyber threats. It criticizes countries like Russia and China for their malicious cyber activities and efforts to reshape global technology governance. The plan also aims to enhance cybersecurity, digital upskilling, and AI deployment in emerging economies, bolstering the global digital infrastructure. The State Department will push against digital protectionism and market barriers, advocating for fair cloud computing practices and opposing broad cybercrime definitions that threaten privacy and free expression. The strategy also expands U.S. cyber assistance to countries facing cyberattacks, aiming to prevent adversaries from isolating their targets.

Why AI Policy Needs a Sociotechnical Perspective by Brian Chen, Tech Policy Press (May 29, 2024)

In a critique of the Senate AI Policy Roadmap, Brian Chen argues that the roadmap fails due to its narrow technical focus, ignoring the broader socio technical dimensions of AI. Announced by Senate Majority Leader Chuck Schumer and colleagues on May 15, 2024, the roadmap has been criticized for lacking substantive civil rights recommendations and potentially consolidating power within AI infrastructure providers. Chen advocates for a sociotechnical approach, which views society and technology as interconnected systems. This perspective, detailed in recent policy briefs by Chen and his colleagues, emphasizes the importance of considering the interplay between technical design and social dynamics. The Senate roadmap's focus on technical specifications and methodologies, such as computation and model parameters, misses the broader impacts of AI on labor practices, decision-making, and social relations. The roadmap's techno-solutionism overlooks the essential role of healthcare workers and the broader workforce in integrating new technologies. Chen concludes that meaningful AI policy requires a sociotechnical perspective to address the real-world implications and ensure policies serve public interests, not just technological advancements.

The Digital Services Act Meets the AI Act: Bridging Platform and AI Governance by Jordi Calvet-Bademunt & Joan Barata, Tech Policy Press (May 29, 2024)

Authored by Jordi Calvet-Bademunt and Joan Barata, this piece explores the intersection of Europe's Digital Services Act (DSA) and the newly adopted AI Act, highlighting the complexities of integrating platform and AI governance. The DSA, building on the eCommerce Directive, imposes new responsibilities on online platforms, including transparency, data protection, and systemic risk mitigation. The AI Act, adopted on May 21, 2024, provides a global legal framework for AI based on a risk-based approach. Though developed separately, both laws intersect significantly, particularly in regulating systemic risks associated with AI models and platform services. Generative AI poses unique challenges, potentially creating gaps in both DSA and AI Act enforcement. The article emphasizes the importance of balancing regulatory measures with the protection of freedom of expression, given the potential for overreach. The final AI Act, recently adopted by the European Council, will soon be published in the EU’s Official Journal, marking a critical step in global technology governance.

Push for Independent Research in Tech Accountability Legislation by John Perrino, Tech Policy Press (May 30, 2024)

On May 23, 2024, the House Energy and Commerce Innovation, Data, and Commerce Subcommittee advanced two key bills: the American Privacy Rights Act (APRA) and the Kids Online Safety Act (KOSA). Authored by John Perrino, the piece highlights that APRA aims to establish comprehensive data privacy regulations, while KOSA focuses on protecting children online by setting a duty of care for social media companies. Despite unanimous advancement, lawmakers expressed concerns, particularly around transparency and research provisions. Advocates urged the inclusion of independent research measures in both bills, leading to the addition of public interest research protections in the updated APRA draft. However, the KOSA research program remains contentious, with calls to reinstate broader research provisions removed by the Senate. The bills face hurdles, including debates on state law preemption and private rights of action, but they continue to advance with significant bipartisan support. The next steps involve full committee consideration, with APRA still in discussion draft form and KOSA awaiting a Senate floor vote. The push for independent research access remains a critical issue as legislators seek to balance privacy protections with free expression concerns.

How are digital initiatives influencing democracy and public policy?

Digital transformation is profoundly impacting democracy and public policy, shaping how governments interact with citizens and manage public services. Initiatives like digital public infrastructure and AI governance frameworks are essential for enhancing transparency, accountability, and inclusivity. Yet, as these technologies evolve, ongoing dialogue and policy adjustments are crucial to ensure they serve the broader public good without compromising fundamental rights.

Democracy Perception Index 2024 by Alliance of Democracies (May 15, 2024)

Launched at the Copenhagen Democracy Summit 2024, the Democracy Perception Index (DPI) is the world’s largest annual study on democracy, conducted by Latana in collaboration with the Alliance of Democracies. The 2024 edition, based on interviews with over 62,953 respondents from 53 countries, reveals that while 85% of people believe in the importance of democracy, only 58% are satisfied with its state in their countries. Economic inequality, corruption, and the influence of global corporations are seen as the top threats to democracy. The study also highlights regional differences in priorities, with Europeans and Americans focusing on healthcare and climate change, while Asia and Latin America prioritize corruption and economic growth. Geopolitical tensions are evident, with Western democracies favoring cutting economic ties with Russia and China under certain conditions, while the rest of the world prefers maintaining ties. The perception of global powers remains divided, with positive views of the EU, UN, and US, but a growing positive perception of Russia and China in the Global South. The US's influence on global democracy has seen a decline, especially in Muslim-majority countries and parts of Europe.

WSIS DPI High-Level Session by World Summit on the Information Society (May 27,2024)

During the WSIS DPI High-Level Session on May 27, country representatives shared their experiences with DPI implementation, highlighting the importance of frameworks like GovStack in accelerating these efforts. Ambassador Nele Leosk emphasized the collaborative nature of GovStack, which helps scale and replicate digitalization efforts. The session announced that the DPI Summit will be held in Egypt in October 2024, as revealed by Eng. Khaled El-Attar. Panelists, including Mr. Tomas Lamanauskas, Dr. Yolanda Martínez, Ms. Fatou Ndiaye, and others, discussed best practices for democratizing access to government services through digital means, which fosters productivity, transparency, and inclusion. The event also featured the WSIS Digital Service Design Prize 2024 Award Ceremony, recognizing exemplary digital services worldwide. The session underscored the need for sustainable financing, appropriate legal frameworks, and overcoming resistance to change in DPI implementation, drawing on examples from countries like Estonia, India, and Kazakhstan.

Digital public infrastructure can catalyze carbon removal and bolster carbon credit initiatives by Aditya Agrawal, Digital Impact Alliance (May 22, 2024)

DIAL research fellow Aditya Agarwal emphasizes the transformative potential of digital public infrastructure (DPI) in advancing carbon removal and strengthening carbon credit initiatives. DPI can address key challenges in carbon credit markets by enabling large-scale data exchange, fostering interoperability, scalability, and trust. As carbon credit markets grow in importance for reducing global emissions, access to transparent and reliable data becomes crucial. DPI can enhance market integrity by creating digital marketplaces, ensuring unique and valid carbon credits, and supporting compliance with social and environmental standards. Additionally, DPI can facilitate continuous monitoring and verification of carbon sequestration projects through advanced data analytics and AI, providing real-time data and performance metrics. By engaging the public and promoting collaboration across sectors, DPI can build a robust, trusted carbon credit market. Despite ongoing efforts, atmospheric carbon dioxide levels remain critically high, underscoring the urgent need for comprehensive DPI solutions to drive effective climate action and foster trust in carbon removal methods and markets.

Data Commons: Under Threat by or The Solution for a Generative AI Era? by Verhulst, Stefaan and Chafetz, Hannah and Zahuranec, Andrew, SSRN (May 21, 2024)

Stefaan Verhulst, Hannah Chafetz, and Andrew J. Zahuranec explore the concept of "data commons" in the era of generative artificial intelligence (AI). Data commons, managed for public benefit, counter privatized data silos by ensuring ethical data reuse for research and public health. The rise of generative AI presents both opportunities and challenges for these communal data repositories, potentially democratizing data insights and enhancing decision-making. However, issues around equitable access, sustainability, and ethical usage arise, risking the underutilization of data commons. The authors propose a ten-part framework to reimagine data commons governance, access, and sustainability, aiming to maximize societal benefits and mitigate risks in a generative AI era. This paper seeks to stimulate dialogue on structuring data commons to harness their full potential and address emerging complexities.

UNDP Highlights Successful Digital Transformation Strategies at the inaugural GovTech Congress by Keyzom Ngodup Massally, UNDP (May 23, 2024)

From May 21-22, UNDP showcased its digital transformation strategies at the inaugural GovTech World Congress in Madrid, Spain. Keyzom Ngodup Massally, Head of Digital Programming at UNDP, highlighted how the organization helps governments and the private sector scale technologies that benefit people and the planet. Examples include Bhutan’s National GovTech Agency fostering local digital talent, Trinidad & Tobago’s Ministry of Digital Transformation leveraging open source to avoid vendor lock-in, and Malawi deploying Digital Public Infrastructure (DPI) safeguards for digital IDs. Uruguay’s leadership in digital transformation, supported by UNDP, was also noted. UNDP’s strategies focus on fostering collaboration, deploying strategic technical talent, ensuring system interoperability, developing local talent, and designing scalable solutions. The event emphasized the importance of coordinated actions among multilateral partners like the OECD, ITU, IMF, and the World Bank to quantify the economic and social impacts of DPI. UNDP’s long-term vision involves not just technology deployment but transforming how societies engage with and benefit from digital public goods, ensuring lasting, equitable development.

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