Adoption of the Global Digital Compact and the importance of DPI for global cooperation

Source: The post adoption of the Global Digital Compact and the importance of DPI for global cooperation has been created, based on the article “How to realise the full potential of Digital Public Infrastructure” published in “Indian Express” on 21st October 2024

UPSC Syllabus Topic: GS Paper 2- International Relations-Effect of policies and politics of developed and developing countries on India’s interests.

Context: The article discusses the Global Digital Compact’s adoption and the importance of digital public infrastructure (DPI) for global cooperation. It highlights India’s leadership in DPIs, the need for impact assessments, and the significance of data for understanding how these systems affect people’s lives and economies.

What is the Global Digital Compact?

1. The Global Digital Compact (GDC) was adopted on September 22, 2024, at a UN summit. It aims to ensure that technology benefits everyone globally.
2. It builds on the Universal Safeguards for Digital Public Infrastructure initiative started in 2023.
3. For detailed information on The Global Digital Compact (GDC) read this article here

How has India contributed to digital public infrastructures?

1. India, holding the G20 presidency, promoted digital public infrastructures (DPIs) to boost economic growth, especially in the Global South.
2. India leads with the world’s largest digital identity program, Aadhaar, and the most real-time digital payments, reaching 14.96 billion transactions in August.

What are the global impacts of DPIs?

1. The World Bank’s ID4D (Identity for Development) initiative supports digital identity systems in nearly 60 countries, enhancing global digital public infrastructure (DPI) adoption.
2. G2Px (Digitising government-to-person payments), a program for digitizing government-to-person payments, is active in 35 countries, improving financial accessibility.
3. India’s Modular Open Source Identity Platform (MOSIP) is assisting 11 countries in building secure digital identity systems.

What are the challenges and benefits of DPIs in India?

1. DPIs have significantly increased financial inclusion in India, raising the percentage of adults with bank accounts from 25% in 2008 to over 80% recently, with women owning 56% of these accounts.
   2. Digital transactions comprised nearly 50% of India’s GDP in 2022-23, facilitating access to credit through pre-approved loans via UPI.
2. However, understanding the exact impact of DPIs on income and social status is difficult due to limited data.

How Can India Improve Impact Assessments?

1. India can improve impact assessments by focusing on three areas: design, data, and dialogue.
2. DPIs should include built-in assessment mechanisms.
3. Reliable data collection and management are crucial, as is fostering dialogue among stakeholders like government, private sector, and civil society.

Question for practice:

Discuss how India’s leadership in digital public infrastructures (DPIs) has contributed to economic growth and financial inclusion.