2022 Perspectives for the Public Sector

Citi Perspectives for the Public Sector 13 Estonia • Having classed internet access as a human right, Estonia has become a role model for a strategic approach to digital transformation centered on national digital infrastructure and ID. • 99% of government services are provided online, saving an estimated 2% of GDP. e-residency, which allows foreigners to set up virtual companies in Estonia, has boosted the economy by over €1 billion. • 99% of citizens have digital ID, 67% use it regularly, 44% voted online, 27% use digital signatures, and 17% use mobile ID. India • Aadhaar is the world’s largest ID number scheme, with almost 90% of the Indian population enrolled. • Between 2015 and 2019, the government of India disbursed around $77 billion to its citizens and saved $12 billion from leakage (such as fraud, for instance) because of the digital ID system. • The scheme has driven improvements in social mobility, enhanced access to financial services (giving people the ability to save), and is assumed to have increased GDP growth. Sweden • Like other Nordic countries, Sweden has adopted a voluntary digital identity based on a bank-federated model. • Its BankID can be on cards or smartphones (and supports fingerprint and face recognition). It is used for authentication with various apps/ web services as well as logging in to authorities, health centers and for payments. • BankID was used by 84% of the population as of 2019. Colombia • Colombia has successfully begun to digitize communications with its citizens, beginning with a web page that lists available services. Services such as electronic licenses and registrations for citizens are now being digitized. • The percentage of Colombia’s citizens with access to the internet rose from 52% in 2016 to 75.3% in 2019; the goal is to extend access to the entire population, ending digital exclusion. Turkey • The Digital Transformation Office is charged with leading digital transformation, mediating the delivery of Digital Turkey (e-Government) services, and increasing inter-institutional cooperation and coordination. • Digital Turkey, currently in development, will introduce the delivery of user and topic-based integrated services such as ‘My Vehicles’, ‘My Home’ and ‘My Health’. • TekDurak, also in development, will act as a one-stop service point, increasing the variety of service delivery channels and meeting the needs of disadvantaged segments of society. Conclusion Digital is now a critical part of our lives, especially in the wake of the pandemic. In order for countries to leverage its full benefits, governments must actively embrace the age of information and assume a leading role in digital transformation. To do so, governments need to devise and adopt comprehensive digital policies that promote infrastructure, innovation, new markets, and education. They should appoint digital czars to align strategy across government agencies, nationwide and internationally (to address cyber risks, for example). And they must reconsider regulations, to ensure that they are fit for purpose to address today’s challenges such as data privacy and open competition. Setting the right laws and creating the right environment has been central to every economic transformation in history: the fourth industrial revolution will be no different. Achieving digitization objectives will be challenging for many countries. However, governments do not need to do it on their own. Instead, they should ensure global policy coordination on topics such as data, cybersecurity and digital assets. They should also build partnerships with the private sector to leverage its expertise, lower costs and accelerate delivery times. Private companies may be able to facilitate digital identity or provide protection against cyber threats, for instance, while subsidies might be necessary to ensure broadband access in hard- to-reach rural areas. By taking a comprehensive view of digitization’s challenges and opportunities, governments can mobilize digital policy as a compliment to monetary and fiscal policies and generate growth in their economies. Citi’s Public Sector team and Digital Policy, Strategy and Advisory practice is partnering with many public sector clients around the world to help evolve their digital policy framework and execution priorities on topics such as payments infrastructure, digital identity, digital security and sustainability.