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In a world increasingly reliant on technology, digital public infrastructure (DPI) has emerged as a critical component of modern society. DPI has the potential to revolutionize the way public services are delivered. By leveraging technology, DPI can make services more efficient, effective, and equitable.

A top-level scan of deployments of identity systems, digital payment systems and data exchange systems across 210 countries has identified:

• 57 digital identity systems which includes those that claim to have an electronic or digital ID in the rollout stage, with an authentication mechanism and at least two sectoral use cases.
• 93 countries with digital payment systems which includes those with at least one active digital payment system that facilitates real-time transactions and has a public interest operator.
• 103 data exchange systems which includes those with a cross-sectoral, national-level and active data exchange system. This can range from internal platforms facilitating data sharing within government departments, to systems connecting multiple agencies and authorised third parties to share data crucial to public service delivery.

What is Digital Public Infrastructure?

Digital Public Infrastructure (DPI) are the foundational digital systems and platforms that enable societies to function more efficiently, inclusively, and equitably. DPI encompasses a broad range of services and technologies, including digital identity systems, payment platforms, data exchange frameworks, and open-source technologies that support public goods and services.

These infrastructures are designed to be interoperable, secure, and scalable to support essential services, such as healthcare, education, social protection, and financial inclusion, especially in developing economies.

At its core, DPI represents a shift towards creating inclusive, citizen-centered digital ecosystems. Unlike proprietary systems that can create dependency on private actors, DPI is typically government-led or supported by public-private partnerships to ensure that the public retains access and control. This infrastructure is critical for enabling public service delivery, driving economic growth, fostering innovation, and bridging digital divides.

In the global context, DPI also plays a pivotal role in ensuring that countries, particularly those in the Global South, can harness the power of digital transformation without becoming reliant on expensive, proprietary technologies from foreign tech giants. By providing the building blocks of digital economies, DPI empowers governments, businesses, and citizens alike.

What is the Difference Between DPG and DPI?

Digital public goods (DPGs) and digital public infrastructure (DPI) are two key concepts in digital development, but they serve different purposes and scopes.

• Digital Public Goods (DPGs) are open-source software, data, AI models, standards, and content designed to be accessible, adaptable, and shared globally to address societal challenges. The focus of DPGs is on creating shared digital tools and resources that can be reused, modified, and deployed in various contexts to achieve development goals, such as improving healthcare, education, and governance.
• Digital Public Infrastructure (DPI) are foundational digital systems and services that support the functioning of a country’s economy, government, and society. DPI includes core infrastructure such as digital ID systems, payment platforms, and data exchange frameworks. It provides the backbone that enables digital transactions and interactions at scale.

DPGs are the tools, content, and standards that communities can use to build solutions, while DPI provides the foundational systems required for a functioning digital economy and governance. Both are crucial for digital transformation, but they operate at different levels and scopes.

4 Benefits of DPI in International Development

Digital Public Infrastructure can be defined as the digital systems and platforms that provide essential public services, such as healthcare, education, and transportation. These systems are designed to be accessible to all citizens, regardless of their socioeconomic status or geographic location.

For example, DPI can be used to:

• Improve access to healthcare: DPI can be used to provide remote healthcare services to people living in rural or underserved areas. This can help to reduce disparities in access to healthcare and improve health outcomes for all.
• Enhance educational opportunities: DPI can be used to provide online learning opportunities to students who cannot attend traditional schools. This can help to improve educational attainment and open up new opportunities for people of all ages.
• Promote economic development: DPI can be used to connect businesses to new markets and customers. This can help to create jobs, boost economic growth, and reduce poverty.
• Strengthen democracy: DPI can be used to provide citizens with the tools they need to participate in civic life. This can help to increase transparency, accountability, and responsiveness in government.

These examples illustrate the potential of DPI to transform public services and improve the lives of citizens. As donors continue to invest in DPI, we can expect to see even more innovative and effective ways to use technology to address the world’s most pressing challenges.

Why Gates Foundation Invested $200 Million in DPI?

In the 21st century, Bill Gates of the Gates Foundation believes that digital public infrastructure is proving to be as important for progress as traditional brick-and-mortar systems—and its effects have been impressive wherever it’s been embraced around the world.

He says:

I envisioned a world where online payments and e-government would change how we interact with money, services, and each other. Today, much of that has become a reality, in part due to the development of digital public infrastructure. I’ve seen up close how DPI is revolutionizing the way entire nations serve their people, respond to crises, and grow their economies. And at the Gates Foundation, we see it as an important part of our efforts to help save lives and fight poverty in poor countries.

He believes that strong digital public infrastructure can propel a country forward by making it easier for people to access essential services, participate in the formal economy, and improve their lives.

Bill Gates met with leaders from many countries, and their excitement about DPI is palpable. With the right investments, their countries can use DPI to bypass outdated and inefficient systems, adopt cutting-edge digital solutions, and leapfrog traditional development trajectories—potentially accelerating progress by more than a decade.

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Digital public infrastructure is key to advancing many of the issues the Gates Foundation focuses on, including protecting children from preventable diseases, strengthening healthcare systems, improving the lives and livelihoods of farmers, and empowering women to control their financial futures. That’s why the Gates Foundation committed $200 million over five years to supporting DPI initiatives worldwide.

Why Are Other Donors Investing in DPI?

International development donors are increasingly investing in DPI because of its transformative potential to advance development goals, foster inclusive growth, and build resilient societies. Several factors contribute to this surge in donor interest:

Expanding Inclusive Development

DPI is seen as a powerful tool to reduce inequality and bridge digital divides, ensuring that underserved populations can access crucial services. Digital identity systems, for instance, help people without formal identification access healthcare, education, and financial services.

This has been particularly important in countries like India, where the Aadhaar biometric ID system enables over 1.3 billion people to access government subsidies and welfare programs. The ability to provide universal access to services aligns with the United Nations’ Sustainable Development Goals (SDGs), especially those targeting poverty reduction, health, and education .

By investing in DPI, donors aim to ensure that marginalized groups are not left behind in the digital age. Access to digital infrastructure can help lift people out of poverty, providing them with the tools to engage in the formal economy, access social protection, and improve their quality of life.

Improving Efficiency and Transparency

DPI is also a key enabler of more efficient, transparent, and accountable governance. By digitizing public services, governments can reduce corruption, streamline processes, and ensure that aid reaches the intended beneficiaries.

Digital payment systems, for example, allow for direct cash transfers to citizens, reducing the need for intermediaries that could misappropriate funds. The Indian government’s adoption of digital payments through its Universal Payment Interface (UPI) has been a game-changer in this regard .

Donors recognize the potential of DPI to improve public sector efficiency. By helping governments digitize, they can create systems that are not only more efficient but also more accountable. This fosters trust between citizens and their governments, which is crucial for long-term development.

Fostering Innovation & Economic Growth

DPI lays the foundation for vibrant digital ecosystems that promote innovation and entrepreneurship. By investing in open-source platforms and interoperable systems, donors enable local developers and businesses to create contextually relevant solutions.

In countries like Kenya, mobile money platforms such as M-Pesa have revolutionized financial inclusion, enabling people without access to traditional banking to participate in the economy .

Donors are increasingly interested in creating environments where digital innovation can thrive. By investing in DPI, they aim to support the development of fintech, e-commerce, and other tech-driven industries that can boost economic growth and create jobs.

Building Digital Resilience

In an increasingly interconnected world, resilient digital public infrastructure is essential for withstanding global shocks such as pandemics, natural disasters, or economic crises. By investing in DPI, donors are helping countries build systems that can facilitate rapid responses to such challenges.

For example, during the COVID-19 pandemic, nations with digital payment and identity systems could rapidly deliver social protection programs to affected populations. This resilience is critical for maintaining stability in times of crisis, a priority for donors.

Reducing Digital Colonialism

Some donors view investment in DPI as a way to counterbalance the influence of major tech companies and foreign governments.

The donors fear digital colonialism, where control over technology infrastructure, data, and digital ecosystems in developing countries is concentrated in the hands of a few global tech corporations, predominantly based in the Global North. This domination mirrors traditional colonialism, where economic, political, and cultural power was concentrated in the hands of a few nations, to the detriment of others.

By promoting open and interoperable digital ecosystems, donors aim to reduce dependency on proprietary systems that may come with geopolitical digital colonialism.

What Are USAID Investments in DPI?

USAID has been actively involved in supporting the development and implementation of various DPI systems across different regions. Some of the key areas where USAID has invested in DPI include:

• Digital Identification Systems: USAID has worked with partners to develop digital identification systems that help people, especially those in underserved regions, access critical services. For instance, in Tanzania, USAID supported the establishment of a digital civil registration and vital statistics system, improving citizens’ access to healthcare and social protection services .
• Digital Financial Services: USAID has invested in digital financial infrastructure to promote financial inclusion. In Kenya, USAID has supported mobile money platforms like M-Pesa, which allow millions of people without access to traditional banking services to engage in financial transactions. These platforms help increase access to savings, credit, and insurance, driving economic development.
• Digital Health Systems: In the healthcare sector, USAID has supported DPI initiatives that strengthen health systems through digital solutions. For example, USAID’s investment in digital health systems in countries like India and Bangladesh has improved the delivery of healthcare services, allowing for better data collection, patient monitoring, and public health responses .

What Are Other Donor DPI Investments?

Other international donors and organizations are also actively investing in DPI initiatives to promote sustainable development and enhance governance. Here are some key examples:

• World Bank: The World Bank is a leading donor in the DPI space, providing funding and technical assistance for the development of digital identity systems, payment platforms, and data-sharing frameworks. One notable example is the World Bank’s support for India’s Aadhaar system, the world’s largest biometric-based digital identity system, which has been instrumental in providing over 1.3 billion people with access to government services and financial inclusion .
• European Union (EU): The EU has been investing in DPI initiatives in Africa and Asia, focusing on areas like digital identity and governance. The EU has funded projects aimed at creating interoperable digital systems that enhance transparency and accountability in governance. In particular, the EU has supported digital identification systems to ensure that citizens can access essential services like healthcare and social protection .
• Bill & Melinda Gates Foundation: The Gates Foundation has been a major supporter of DPI, particularly in the area of digital financial inclusion. The foundation has provided funding for open-source digital payment platforms like Mojaloop, which facilitates real-time, low-cost digital payments for underserved populations. This initiative aligns with the foundation’s goal of reducing poverty by ensuring that marginalized communities can participate in the digital economy .
• German Development Agency (GIZ): Germany’s GIZ has been involved in promoting DPI, especially in the context of governance and public service delivery. GIZ has worked on initiatives like GovStack, a global collaboration to create interoperable digital building blocks that countries can use to develop scalable DPI solutions. GovStack enables low- and middle-income countries to deploy digital solutions for governance, healthcare, and financial services without relying on proprietary technologies.

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Why is European Union Investing in DPI?

Emrys Schoemaker makes a great point about divergent approaches to digital public infrastructure investment by different donors. The approach advocated for by India and the Gates Foundation centers primarily on efficiency in government service delivery enabled by Digital ID, payments and data exchange.

In Europe the conversation is bigger – sovereignty, independence and resilience through a comprehensive digital value chain – from manufacturing (chips etc), through infrastructure verticals (the cross-over with DPI) and cloud (including hyperscalers) to consumer applications.

Europe’s vision for DPI could offer a distinctly European approach using a growth-based DPI model. Adoption of European infrastructure (eg the EU wallet) could enable fast track access to trade, travel and migration. This could have widespread traction and create an infrastructural BrusselsEffect. But this will require a high degree of ambition and coherence across the EU and member states in relation to national, regional and foreign policy.

Seven Examples of Digital Public Infrastructure

The future of DPI is bright. As technology continues to evolve, DPI will become even more sophisticated and powerful. This will open up new possibilities for improving public services and making the world a better place for all.

Even now, governments are investing in DPI to improve services for their citizens, including:

1. Aadhaar (India): Aadhaar is the world’s largest biometric-based digital identity system, used by over 1.3 billion people in India. It provides citizens with a unique identification number, enabling them to access various government services, including subsidies, pensions, and healthcare. Aadhaar also serves as the foundation for other digital initiatives, such as India Stack, which offers digital payments, e-signatures, and data-sharing services .
2. Estonia’s e-Government Platform: Estonia is a global leader in digital governance, offering an extensive range of public services online via e-Estonia. Citizens can vote, file taxes, access healthcare records, and start businesses entirely digitally. The country’s e-Residency program allows non-Estonians to establish and manage businesses within the EU remotely. Estonia’s system demonstrates the potential of DPI to enhance government efficiency and citizen engagement .
3. M-Pesa (Kenya): M-Pesa is a mobile money service that revolutionized financial inclusion in Kenya and several other countries. By providing a digital payment platform accessible via mobile phones, M-Pesa allows users to send and receive money, pay bills, and access credit. It’s a prime example of DPI enabling financial inclusion and supporting economic activity, particularly for underserved populations .
4. GovStack (Global Initiative): GovStack is an initiative led by the German government and the International Telecommunications Union (ITU) to promote modular and interoperable digital building blocks that can be used to create scalable DPI solutions. GovStack enables countries, particularly in the Global South, to rapidly deploy DPI solutions without being locked into expensive proprietary systems .
5. Universal Payment Interface (UPI – India): UPI is a real-time payment system that facilitates interbank transactions instantly via mobile devices. It enables seamless peer-to-peer and business-to-business transactions without relying on card networks or bank branches. UPI has dramatically boosted financial inclusion in India, and its model is being studied for adoption in other countries .
6. Uruguay’s Plan Ceibal: Uruguay’s Plan Ceibal was the first nationwide plan to distribute personal computers to all students and teachers in public education. The fundamental principle behind this initiative is that every student has the right to internet access. Plan Ceibal has helped to close the digital divide in Uruguay and improve educational outcomes.
7. Singapore’s Smart Nation Initiative: Singapore’s Smart Nation initiative is a government-led effort to use technology to improve the lives of citizens. The initiative has led to the development of a number of DPI projects, such as smart traffic management systems, public Wi-Fi networks, and ensuring a secure and open data marketplace

Seven Steps to Build Successful DPI Solutions

1. Focus on use cases. Building digital public infrastructure (DPI) for its own sake is unlikely to achieve high adoption. The design of DPI should be driven by solving real-world problems that people, firms, and government agencies face.
2. Prioritize inclusion and universal accessibility. DPI should be designed to work for all parts of society, which means accommodating various factors (for example, access to digital infrastructure and devices, awareness, skills, and trust in technology) and ensuring accessibility for individuals with different needs, including those with disabilities.
3. Build public trust and accountability. Adoption is enabled at a faster rate when all stakeholders have confidence that DPI works as intended and is in their best interests and that grievance redress mechanisms are in place.
4. A whole-of-country approach and public-private partnership. The shift in mind-set requires coordination and collaboration across a wide range of stakeholders; a whole-of-country approach benefits from having a singular vision.
5. Promote interoperability. The true power of DPI comes when different layers or elements can work together to enable exponential innovation. The adoption of common standards and open application programming interfaces can help to address this need.
6. Strengthen capacity and culture in government. Civil servants need incentives to take risks and to think and act boldly. Budget and procurement policies may also need to be made fit-for-purpose.
7. Cross-border use of DPI. As DPI gains global traction, there is an opportunity for enhanced regional and international cooperation to establish standards for cross-border use. This cooperation includes mutual recognition of digital IDs, interoperable fast payment systems, and secure data sharing. Such cooperation can lower the costs and risks associated with international transactions, such as remittances, access to services across borders, and cross-border data flows.

Universal DPI Safeguards Framework

The Universal DPI Safeguards Framework builds on various ‘responsible authorities’ in the DPI ecosystem and recognizes that DPI comprises technological systems and services that operate at the intersection of individuals on one hand, and civic, public and private entities that hold social, political and economic power on the other.

Risks related to DPI therefore do not arise purely from technical shortcomings, but also from inadequacy in normative (ethical, legal and regulatory) frameworks, as well as from institutional and organizational ineffectiveness. Risks vary significantly across different DPI systems (for example payment, identity and data exchange) and country contexts; they are not evenly distributed across society, nor are they necessarily static. Potential harms can be experienced in
multiple and compound ways.

The Framework is initiated by the Office of the UN Secretary-General’s Envoy on Technology (OSET) and the United Nations Development Programme (UNDP). It is rooted in the International Human Rights framework and the goals of the global community, specifically the Sustainable Development Goals (SDGs) and the Roadmap for Digital Cooperation.

It provides process and practice recommendations to address a broad spectrum of risks to individuals. These include:

• Risks to safety, arising from privacy vulnerability, digital insecurity, physical insecurity
  and inadequate recourse; and
• Risks to inclusion, arising from discrimination, unequal access, disempowerment and other
  forms of exclusion.

The Framework also provides recommendations to address structural vulnerabilities, such as digital distrust, weak rule of law, weak institutions, technical shortcomings and unsustainability. Emphasis is placed on the importance of robust governance mechanisms, capacity-building, and the development of standardized measures to gauge the impact of DPI across different contexts.

DPI is Government Digital Transformation

Digital Public Infrastructure is more than just a technological framework; it’s government digital transformation for inclusive, equitable development. By investing in DPI, international donors aim to create resilient, transparent, and accessible government systems that support broader development goals while fostering innovation.

From India’s Aadhaar to Kenya’s M-Pesa, these infrastructures are already reshaping societies, offering a glimpse into a more connected, efficient, and inclusive future.