Publication: Digital Public Infrastructure and Development: A World Bank Group Approach
Loading...
Date
2025-03-11
ISSN
Published
2025-03-11
Editor(s)
Abstract
DPI is an approach to digitalization focused on creating “foundational, digital building blocks designed for the public benefit.” By providing essential digital functions at society scale that can be reused across sectors, DPIs enable public and private service providers to build on these systems, innovate, and roll out new services more quickly and efficiently. Common systems built as DPIs include digital identity and electronic signatures, digital payments, and data sharing. However, to provide DPI functionality, these systems must embed principles such as inclusion, openness, modularity, inclusivity, user-centricity, privacy-by-design, and strong governance.
This paper provides a common framework and primer on DPI for policymakers, practitioners, WBG staff, and the broader development community, including:
• DPI Concepts and Theory of Change: This includes a working definition of DPI and its core characteristics, including the role of the private sector, how DPI differs from past approaches to digitalization, and the relationship between core DPI systems, sector-specific systems, other digital technologies, and broader ecosystem enablers and safeguards. The paper also articulates the potential benefits of DPI across a range of public and private sector services, as well as risks and challenges for implementation and adoption.
• Considerations for Implementation: Drawing on the experiences of a diverse set of countries across different regions, income levels, and DPI approaches, the paper identifies common trends for building, scaling, and using DPIs that are safe and inclusive. This includes identifying what we know (and do not yet know) around different DPI design choices and models, implementation strategies, procurement, issues around use case integration and sequencing of DPI, and more.
• Principles and Practical Lessons: Finally, it summarizes key lessons from countries’ experiences with DPI to date, highlighting critical success factors and risk mitigation strategies for policymakers, practitioners, and development partners. A separate volume provides examples of DPI from countries around the globe.
By leveraging the opportunities presented by DPI, countries can accelerate their digital transformation journeys and achieve more inclusive and sustainable development. The World Bank Group is committed to supporting this crucial endeavor. The WBG’s new Global DPI Program will address key knowledge gaps and support countries in building safe, inclusive, and transformative DPI.
Link to Data Set
Citation
“Clark, J.; Marin, G.; Ardic Alper, O.P.; Galicia Rabadan, G.A.. 2025. Digital Public Infrastructure and Development: A World Bank Group Approach. Digital Transformation White Paper; Volume 1. © World Bank. http://hdl.handle.net/10986/42935 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Fostering a Digitally Inclusive Aging Society in China : The Potential of Public Libraries(Washington, DC, 2014-07-08)The World Bank has been supporting this policythrough theprogram China Rural Information and Communications: Technical Assistance on Design and Impact Evaluation, which aims to support the government make decisions about potential scaling up of innovative ICT pilot projects and to generate and disseminate knowledge about the impacts of ICT in rural China. Three activities were undertakenwith a focus on a trio of provinces (Guizhou, Jilin, and Shandong): (a) a demand survey to assess rural ICT access and attitudes; (b) a library study including scoping the status of ICT use in rural libraries; and (c) a limited impact evaluation to examine how ICT interventions have affected rural users.Publication ICT for Greater Development Impact(Washington, DC, 2012-06-15)Information and communication technologies (ICTs) have great promise to reduce poverty, increase productivity, boost economic growth, and improve accountability and governance. That promise only grew when ICTs underwent a revolution in the 2000s. Nearly 5 billion people in developing countries now use mobile phones, up from 200 million at the last decade's start, and the number of Internet users has risen 10-fold. People across the globe do much more than chat and play games. They learn where best to fish and what market to sell their produce in. They trace cattle from pastures to supermarkets. They report illegal logging and misuses of local budget. They pay bills, send money back home, and receive cash transfers. They do business on mobile phones. They use ICTs to prevent violence against women and community radio to empower them. They get state-of-the-art schooling online. They remotely monitor and switch on irrigation pumps. The World Bank Group (WBG) has worked with its clients as they have pursued these opportunities and has supported sector reforms through technical assistance and lending operations, guided by its 2001 ICT strategy. The WBG has been most successful in fostering ICT sector reform and attracting private investment in mobile communications. WBG support for ICT applications has grown rapidly over the past decade. More than 1,300 active Bank investment projects have ICT components (74 percent of the Bank's 1,700-project portfolio) to modernize internal processes and upgrade service delivery. Results have been mixed, with only 59 percent of Bank project components for ICT applications achieving or likely to achieve their objectives fully or substantially.Publication G20 Policy Recommendations for Advancing Financial Inclusion and Productivity Gains through Digital Public Infrastructure(Washington, DC, 2023-10-03)This report was developed by the Global Partnership for Financial Inclusion (GPFI) under the G20 India Presidency. Powered by digital financial services (DFS), there has been progress globally on financial inclusion, but several challenges remain. In the rapidly evolving DFS landscape and against the backdrop of widespread digital transformation across sectors, digital public infrastructure (DPI) has the potential to help countries leapfrog their digital transformation. DPI, generally understood as interoperable, open, and inclusive systems supported by technology to provide essential, society-wide, public, and private services, can play a critical role in accelerating this digital transformation in an inclusive way. DPIs can have a multiplier effect on the gains achievable through DFS by accelerating financial inclusion and closing the existing gaps. DPIs are similar to other digital and financial infrastructures but, depending on country context, can differ on account of DPIs being foundational and cross-cutting while also having an emphasis on serving key public policy objectives. DPIs can be combined to unlock even more innovation and extend further benefits to users and the market. The policy recommendations presented in this report are indicative, voluntary, and nonbinding and seek to complement the existing guidance. The policy recommendations are grouped around five key dimensions that collectively seek to ensure that DPIs adhere to a basic set of principles for achieving the following: (i) enabling and fostering the use of DPIs in accelerating financial inclusion; (ii) fostering well-designed DPIs and the enabling environment; (iii) implementing appropriate regulation, supervision, and oversight; (iv) ensuring sound and effective institutional and governance arrangements by DPIs; and (v) protecting customers and leaving no one behind.Publication Can Participation Be Induced? Some Evidence from Developing Countries(World Bank, Washington, DC, 2012-07)The World Bank has allocated close to $80 billion towards participatory development projects over the last decade. A comprehensive review of the evidence on the efficacy of the approach conducted by the authors for the forthcoming Policy Research Report, Localizing Development: Does Participation Work?, finds that while participatory projects have been reasonably effective in improving access to basic services, there is far less evidence of their effectiveness in improving household income or in building sustainable participatory institutions at the local level. A key issue is that the institutional culture in development agencies such as the World Bank lacks the flexibility and long-term commitment necessary for effective externally induced participatory development. Induced participation -- driven by large-scale bureaucratically managed processes, is quite different from more organic types of participation endogenously organized by civic groups. It requires a very different approach to development, one that pays close attention to contextual variation and to uncertain trajectories of change. In order to be effective, induced participatory projects need a strong focus on learning-by-doing; on monitoring and evaluation and a willingness to learn from failure. A review of the World Bank's practices in monitoring and evaluation, and of its incentives to learn from failure, reveals that without significant changes, including changes in the incentive structures facing management, the Bank cannot be effective in inducing participation.Publication Assessing Incentives to Increase Digital Payment Acceptance and Usage(World Bank, Washington, DC, 2022-01-18)An important step to achieve greater financial inclusion is to increase the acceptance and usage of digital payments. Although consumer adoption of digital payments has improved dramatically globally, the acceptance and usage of digital payments for micro, small, and medium-sized retailers (MSMRs) remain challenging. Using random forest estimation, The authors identify 14 key predictors out of 190 variables with the largest predictive power for MSMR adoption and usage of digital payments. Using conditional inference trees, they study the importance of sequencing and interactions of various factors such as public policy initiatives, technological advancements, and private sector incentives. The authors find that in countries with low point of sale (POS) terminal adoption, killer applications such as mobile phone payment apps increase the likelihood of P2B digital transactions. They also find the likelihood of digital P2B payments at MSMRs increases when MSMRs pay their employees and suppliers digitally. The level of ownership of basic financial accounts by consumers and the size of the shadow economy are also important predictors of greater adoption and usage of digital payments. Using causal forest estimation, they find a positive and economically significant marginal effect for merchant and consumer fiscal incentives on POS terminal adoption on average. When countries implement financial inclusion initiatives, POS terminal adoption increases significantly and MSMRs’ share of person-to-business (P2B) digital payments also increases. Merchant and consumer fiscal incentives also increase MSMRs’ share of P2B electronic payments.
Users also downloaded
Showing related downloaded files
Publication Global Economic Prospects, January 2024(Washington, DC: World Bank, 2024-01-09)Note: Chart 1.2.B has been updated on January 18, 2024. Chart 2.2.3 B has been updated on January 14, 2024. Global growth is expected to slow further this year, reflecting the lagged and ongoing effects of tight monetary policy to rein in inflation, restrictive credit conditions, and anemic global trade and investment. Downside risks include an escalation of the recent conflict in the Middle East, financial stress, persistent inflation, weaker-than-expected activity in China, trade fragmentation, and climate-related disasters. Against this backdrop, policy makers face enormous challenges. In emerging market and developing economies (EMDEs), commodity exporters face the enduring challenges posed by fiscal policy procyclicality and volatility, which highlight the need for robust fiscal frameworks. Across EMDEs, previous episodes of investment growth acceleration underscore the critical importance of macroeconomic and structural policies and an enabling institutional environment in bolstering investment and long-term growth. At the global level, cooperation needs to be strengthened to provide debt relief, facilitate trade integration, tackle climate change, and alleviate food insecurity.Publication Global Economic Prospects, June 2025(Washington, DC: World Bank, 2025-06-10)The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.Publication The Container Port Performance Index 2023(Washington, DC: World Bank, 2024-07-18)The Container Port Performance Index (CPPI) measures the time container ships spend in port, making it an important point of reference for stakeholders in the global economy. These stakeholders include port authorities and operators, national governments, supranational organizations, development agencies, and other public and private players in trade and logistics. The index highlights where vessel time in container ports could be improved. Streamlining these processes would benefit all parties involved, including shipping lines, national governments, and consumers. This fourth edition of the CPPI relies on data from 405 container ports with at least 24 container ship port calls in the calendar year 2023. As in earlier editions of the CPPI, the ranking employs two different methodological approaches: an administrative (technical) approach and a statistical approach (using matrix factorization). Combining these two approaches ensures that the overall ranking of container ports reflects actual port performance as closely as possible while also being statistically robust. The CPPI methodology assesses the sequential steps of a container ship port call. ‘Total port hours’ refers to the total time elapsed from the moment a ship arrives at the port until the vessel leaves the berth after completing its cargo operations. The CPPI uses time as an indicator because time is very important to shipping lines, ports, and the entire logistics chain. However, time, as captured by the CPPI, is not the only way to measure port efficiency, so it does not tell the entire story of a port’s performance. Factors that can influence the time vessels spend in ports can be location-specific and under the port’s control (endogenous) or external and beyond the control of the port (exogenous). The CPPI measures time spent in container ports, strictly based on quantitative data only, which do not reveal the underlying factors or root causes of extended port times. A detailed port-specific diagnostic would be required to assess the contribution of underlying factors to the time a vessel spends in port. A very low ranking or a significant change in ranking may warrant special attention, for which the World Bank generally recommends a detailed diagnostic.Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication Global Economic Prospects, January 2025(Washington, DC: World Bank, 2025-01-16)Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.