Digital Strategy 2018-2020: Doing Development In A Digital .

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Digital Strategy 2018-2020:Doing Development in aDigital WorldJanuary 2018

ContentsForeword from the Secretary of State . 2Key Messages . 41. Introduction. 62. Doing development in a digital world. 113. Transforming as a digital department . 174. Delivery model and principles . 195. Conclusion. 21Photo credits:Title page and page 21: The GSMA, Mobile for Development ProgrammePage 2 and 15: DFID – UK Department for International Development1 Doing development in a digital world

Foreword from the Secretary ofStateDoing development in a digital worldIn a fast-changing world, technology affords usthe opportunity to do more as individuals and incollaboration with others. Technology gives usthe power to include, the power to reach, toinspire, to communicate, to educate, tochange. Digital technologies offer anunprecedented opportunity to revolutionise theglobal development system, change lives,transform entire economies, stimulate growthand, ultimately, end reliance on aid.Global Britain has a proud history of digital innovation – from the earliest days of computingto the development of the World Wide Web – which is evident in today’s thriving globaldigital economy. In government, we have led the world in transforming our services andsystems, using digital technology to make them easier, simpler and cheaper.DFID leads the world at open, modern and innovative approaches to development anddigital technologies are at the heart of our work - using cutting-edge technology to lift millionsof people out of poverty. For example, UK aid and British business provided critical supportfor the launch of M-PESA in Kenya, which has since driven a mobile money revolution in 93countries.This is why I am launching DFID’s Digital Strategy for ‘Doing Development in a DigitalWorld’, which will build on our rich legacy and support UK efforts to make sure the global aidsystem is ready for the challenges of the 21st century. The new strategy will ensure that ourapproach to development adapts and keeps pace with technological innovation and change.We will use the latest digital technology to push the development system to become moreeffective, transparent and accountable - enabling us to follow the money, the people and theoutcomes.Britain leads the world in humanitarian response; digital technology helps us focus our aidwhere the need is greatest. Satellite data is helping us to trigger digitally-enabled paymentsbefore the worst effects of drought are felt by those who are most vulnerable, providing lifesaving support.The Global Goals are ambitious, and rightly so. We can only achieve them by making bestuse of the latest digital technology. To get the most out of digital technologies, we need toensure that the benefits are accessible to all. Small businesses, rural communities, womenand minority groups – all stand to benefit from the growth and job creation that innovation2 Doing development in a digital world

and technology brings. We will harness the power of digital technologies to include, puttingdisability at the heart of our agenda.We will work openly and collaboratively with others who share our digital vision; for a worldwhere digital technology will be accessible to all, and where no one will be left behind.Rt Hon Penny Mordaunt MPSecretary of State for International Development3 Doing development in a digital world

Key MessagesDFID’s Digital Strategy 2018-2020 sets out a vision and approach for doingdevelopment in a digital world. Its aim is to establish DFID as a global leader in digitaltechnology and development, in order to have a bigger, faster and more cost-effectiveimpact on the lives of poor people.Digital technologies have the potential to revolutionise the lives of the poor, unlockdevelopment and prosperity, and accelerate progress towards the Global Goals. Therapid expansion of mobile phones and internet access in poor countries offers uniqueopportunities to: stimulate growth, jobs and financial inclusion, cut fraud and empower citizens to hold governments and other institutions to account, provide better response in humanitarian emergencies, improve learning outcomes for children in some of the poorest countries, increase inclusion by providing access to services previously out of reach tomarginalised groups such as girls and women, and people with disabilities, enhance traceability and transparency of aid funding throughout the delivery chain, deliver real-time feedback and direct engagement with our beneficiaries and the UKpublic.However, significant barriers stand in the way of realising the full developmentpotential of digital technologies. Over four billion people around the world lack access tothe internet, and risk being left behind in a digital world. The benefits of the internet are alsobeing accompanied by new risks of harmful concentration and monopoly, rising inequality,and state and corporate use of digital technologies to control rather than empower citizens.DFID will work in an open and collaborative way with others who share our digitalvision. Together, we will support a transformed global aid system that is well-poisedto harness the opportunities, and ready to rise to the challenges, of a digital world.We will make greater and better use of digital technology to tackle global poverty anddeliver on the Global Goals. We will: Identify and embed good practice in using digital solutions in aid programmes. Promote common principles and standards for digital development throughout the aidsystem, to ensure that more digital products and services reach, empower and improvethe lives of poor people, particularly those at risk of being left behind. Champion affordable, secure access to the internet in developing countries, so that thebenefits of digital technologies are accessible to all.We will play our part in delivering on the vision of the UK Government TransformationStrategy for digital, data and technology by: Redesigning services around the needs of our users. This will result in more open,engaging, and responsive interactions with the UK public, our suppliers and partners,and beneficiaries.4 Doing development in a digital world

Collaborating across government through common platforms, technologies andsystems, in pursuit of the UK government’s policy aims worldwide.Making better use of data - to inform delivery of the UK Aid Strategy and Global Goals.This will drive better decision-making in our programmes and operations, andstrengthen our accountability, transparency and public engagement.Above all, we will champion a view of digital, data and technology as enablers ratherthan an end goal: the goal is in the material benefits delivered to people, particularlythose who are most vulnerable and marginalised.5 Doing development in a digital world

1. Introduction1.1 Aims and visionDFID’s Digital Strategy 2018-2020 sets out avision and approach for doing development ina digital world.Its aim is to establish DFID as a global leaderin digital technology and development, inorder to have a bigger, faster and more costeffective impact on the lives of poor people.The vision is for a future where DFID will beharnessing the benefits of digital technologyat two levels: Doing development in a digital world:DFID will be using digital technology toimprove the speed, value for money,reach and impact of its programmes,which will be more flexible and usercentred. DFID will be playing its part inmaximising the development benefits ofdigital technology - realising a worldwhere the internet will be more widelyavailable, and more digital products andservices will be scaled and targeted toreach, empower and improve the lives ofpoor people, particularly those at risk ofbeing left behind.Transforming as a digital department:DFID will have re-designed departmentalservices around the needs of its users.This will mean more open and responsivecommunications and transactions with theUK public, beneficiaries and partnercountries, suppliers and civil servants.DFID and other international departmentswill be able to work together effectively inpursuit of the government’s policy aimsworldwide through common platforms,technologies and systems. Data will be6 Doing development in a digital worldused routinely to inform delivery of the UKAid Strategy and Global Goals, drivebetter decision-making within DFID, andto strengthen DFID’s accountability andpublic engagement.1.2 Starting pointsOver the past decade, the digital agenda hascome to affect DFID’s activities and prioritiesin a number of ways.Digital technologies are playing anincreasingly important role in developingcountries and development practice,presenting new opportunities as well as newchallenges. Information and communicationtechnologies are recognised as key enablersfor delivering on all of the Global Goals forSustainable Development. Global Goal 9strives for universal and affordable access tothe internet in least developed countries by2020.Digital transformation is also a key priority forthe UK government. The GovernmentTransformation Strategy 2017-2020 outlines across-government vision for digital, data andtechnology and how they supporttransformative change.Taking the lead from the GovernmentTransformation Strategy, the use of the word‘digital’ within this strategy refers to “the tools,techniques, technology and approaches of theinternet age”. This definition recognises thatthe way people are working digitally is asimportant as the tools they are using.While ambitious in its vision, this strategy isnot starting from scratch. DFID already has astrong foundation of learning, experience anddemonstrable achievement in digital

development to date, which will be importantto build on. Examples of this are highlightedthroughout the strategy.poorest by enabling poor people to buyclean energy products in smallinstalments, using mobile bankingplatforms such as M-PESA. To date, MKOPA has powered over 400,000 homesin East Africa. The programme is nowbeing expanded, with the aim of reachingone million homes by 2018.51.3 The opportunityDigital technologies have the potential torevolutionise the lives of the poor, unlockdevelopment and prosperity, and accelerateprogress towards the Global Goals. Agriculture: Technology offerspotentially lower cost solutions tootherwise expensive agriculturalextension services or hard-to-reachhealthcare services. The DFID fundedmAgri programme, led by GSMA, workswith mobile phone companies to providefarming tips in local languages, weatherupdates, market prices information aswell as nutrition advice. The servicereached over five million users in 20176. Health: Using digital technologies to driveremote diagnosis and preventioneducation could save up to 188 billion by20257. The Global Trachoma MappingProject8 used android mobilesmartphones, GPS mapping software andcloud technology to carry out a survey incollaboration with 60 partners globally.One hundred million people wereidentified as being at risk of becomingblind through Trachoma more quickly,allowing for earlier intervention and betteroutcomes. Education: The world faces a globallearning crisis. Currently it is estimatedthat 387million children globally are noton track to read by the end of primaryeducation. Digital technology has thepotential to transform learning and helptackle global education challenges,ensuring no one is left behind. A newDFID-funded EdTech Research andThe rapid expansion of mobile phones andinternet access in poor countries is impactingon development in a wide range of ways: Economic growth: Access to theinternet has been estimated to have thepotential to generate over 2.2 trillion inadditional GDP and more than 140 millionnew jobs in the developing world. TheWorld Bank has calculated that there is a1.38% growth in GDP for every 10% ofthe population connected1.Financial inclusion: M-Pesa2 - the mostsuccessful mobile phone based financialservice in the developing world - allowsover two-thirds of adults in Kenya todeposit, send and receive money througha simple text-based menu available oneven the most basic mobile phone. Sinceits launch in 2007, the cost of sendingremittances dropped by 90% and throughenabling citizens to use the service toelectricity or shopping, the value of MPesa transactions is now equivalent toaround half of Kenya’s GDP.3Utilities: Around 1 billion people in theworld have no access to affordable andreliable electricity but around 65%4 haveaccess to a mobile phone. M-KOPA Solarincreases access to electricity for the1‘World Development Report: Digital Dividends’, World Bank,20162M-Pesa received initial funding from DFID3See esaout-of-africa-into-romania/2014-05-13 The Mobile Economy’, GSMA, 20177 Doing development in a digital world5www.m-kopa.com; M-KOPA Solar has been funded by rld Economic Forum, 20168Programme funding from DFID6

Innovation hub will invest in robustresearch to identify what works andaccelerate adoption of good practice. Governance and accountability: WhenNigeria launched its e-ID system, thisresulted in an annual saving of 1 billionthrough exposing 62,000 ‘ghost workers’in the public sector (a return oninvestment of nearly 20,000% in oneyear)9, and prevented 4 million duplicatevotes during the 2015 elections10. In thepast 6 years, 1 billion digital identitieshave been issued under Aadhaar, India’sbiometric identification programme,expanding public services to poor andmarginalised populations. Cash transfersenabled by this programme are savingaround 1 billion per year and it isprojected that the benefits of theprogramme will result in a return of over52% on investment over 10 years11.Humanitarian response: Mobile cashprovides a faster and more secure routeof getting resources to people in needand enables more targeted delivery ofaid. During the Ebola crisis, the UNDevelopment Programme used mobilephones to make direct payments toresponse workers, reaching 60,000people at the height of the crisis andovercoming the logistical challenge ofpaying field workers in remote and rurallocations12.Digital technologies can also help increaseinclusion by giving voice and providing accessto information, vital services and economicopportunity previously out of reach tomarginalised groups:8 Doing development in a digital worldGiving voice: Digital communications areamplifying the voices of geographically orpolitically remote communities, projectingtheir needs further and more loudly andincreasing the likelihood of them beingaddressed. Providing access to information andchoice: Digital technologies also enableinformation to flow in the other direction,for example by providing access toeducational tools and healthcare advice. Supporting financial independence: Ecommerce and e-work platforms arehelping women, girls and people withdisabilities gain a degree of financialindependence, overcoming the socialnorms, mobility or time constraints whichcan confine them to their homes andexclude them from economic activities. Widening access to basic services:New business models and efficienciesbeing driven by digital technologies areallowing the private sector to deliver basicservices like water and electricity toinformal settlements and poor ruralcommunities for the first time.Box 1. Empowering girls and women* Technology-Enabled Girl Ambassadors inNigeria are being trained to become qualifiedmobile social researchers. They are usingmobile technology to collect accurate, rapidinsights into girls’ lives, particularly in hard toreach communities. Project iMlango delivers e-learningprogrammes to girls in rural and remoteKenyan primary schools, who otherwisestruggle to get access to education, throughhigh-speed satellite broadband connectivity,provision of tailored online educationalcontent and electronic attendance monitoring. The Girl Generation Project is using socialmedia to galvanise action to end FGM, drivingsocial and behavioural change across Africa.9A.Gelb and J.Clark, ‘Identification for Development: TheBiometrics Revolution’, Center for Global Development, 201310‘World Development Report: Digital Dividends’, World Bank,201611Andhra Pradesh Smartcard Survey, ‘Implementing aBiometric Payment System: The Andhra Pradesh Experience’,201312UNDP, 2015 *Programmes funded by DFID

1.4 The challengeWhile the opportunities are significant, theWorld Bank’s World Development Report2016 points out that ‘digital dividends’ fordevelopment are not spreading equally orrapidly enough.Over four billion people around the world lackaccess to the internet. Sixty per cent of peoplein developing countries do not have access tothe internet, rising to 85% in least developedcountries. The divides in access are similarlylarge among demographic splits in thosecountries, in particular between rural andurban populations (10% and 23%), womenand men (12% and 18%), youth and peopleaged over 45 (20% and 8%)13.Without a focus on access and accessibility,there is a risk that the digital revolution couldfurther exacerbate existing inequalities bymaking it harder for chronically excludedgroups of people to access services.In addition, the benefits of the internet arebeing accompanied by new risks of harmfulconcentration and monopoly, rising inequality,and state and corporate use of digitaltechnologies to control rather than empowercitizens.Digital technologies can, in turn, strengthenregulation, skills and accountability, therebyamplifying development outcomes.Global internet use1.5 Responding andreformingAgainst this backdrop of change, challengeand opportunity, DFID needs to reform howthe digital agenda is prioritised and put intopractice. This is critical in order for us to: Remain at the cutting edge: The worldis changing rapidly. DFID will need toadapt its development practices to keepup with the digital transformation agendaacross government and the global aidsystem. Get value for money: DFID alreadyinvests heavily in developmentprogrammes that incorporate a digitalelement and needs to ensure it gets thebest value for money from these. Maximise opportunity: Digitaltechnologies offer the potential to deliverbigger, faster, more transformative impactfor all, including people who have oftenbeen excluded from developmentbenefits. DFID needs to be able toharness this fully. Navigate risk: We also need to be ableto navigate the new risks and threatsposed to development by operating in anincreasingly digital world, and ensure thatno one is left behind.To realise the full development benefits of theinternet, digital investments need the supportof what the World Bank terms ‘analoguecomplements’: Regulations - to support opencompetition and innovation. Improved skills and inclusion - so thatpeople can take full advantage of digitalopportunities. Accountable institutions - so thatgovernments respond to citizens’ needsand demands.13‘World Development Report: Digital Dividends’, World Bank,20169 Doing development in a digital world[Source: Internet Society 2017]

This will require a clear and systematicapproach to the way that DFID engages withdigital technologies in its developmentactivities, and transforms digitally as agovernment department.DFID will focus on its users and their needs,to design solutions that take advantage ofdigital tools and technologies, rather thanseeing them as an entire solution.1.6 OverviewThis digital strategy addresses two areaswhere work is needed in order to ach

Global Britain has a proud history of digital innovation – from the earliest days of computing to the development of the World Wide Web – which is evident in today’s thriving global digital economy. In government, we have led the world in transforming our services and systems, using digital tec

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