2023-Public-Sector-Perspectives

Frontier technology: How technology can accelerate development Frontier technologies • Artificial Intelligence • Internet of Things (IoT) • Big Data • Blockchain • 5G • 3D Printing • Robotics • Drones • Gene Editing • Nanotechnology • Solar photovoltaic According to the United Nations Conference on Trade and Development (UNCTAD), frontier technologies — such as artificial intelligence, robotics and biotechnology (see box for list) — have the potential to play an important role in delivering sustainable development. As of 2021, such technologies were worth $350 billion: UNCTAD estimates the market could grow to over $3.2 trillion by 2025. 12 The potential benefits of frontier technologies are enormous but to leverage the opportunities available, countries must prepare. UNCTAD suggests a focus on the following: • ICT deployment, • Skills • R&D activity • Industry activity • Access to finance Unsurprisingly, countries better prepared to exploit the power of frontier technologies include the US, Switzerland, Singapore and other developed countries; most of the least ready countries are developing economies, especially in sub-Saharan Africa. 13 Among developing countries, there are notable outliers such as India, however. By putting digital identity at the heart of its transformation, India has significantly increased financial inclusion in recent years. UNCTAD suggests that countries need to pursue science, technology and innovation policies that reflect their circumstances and seek to build digital skills among the workforce to close digital divides. It might also be necessary to enhance social protection to tackle the potential negative consequences of frontier technologies, such as the rise in gig employment, which can leave workers vulnerable as well as widening of economic inequality. For instance, governments can use regulatory measures and economic and fiscal instruments, as well as improved education policies, to ensure that vulnerable and low- income groups have access to opportunities created by frontier technologies. Developing countries should also seek technical and financial support through international cooperation and official development assistance. Co-creation: Putting innovation to work for clients and countries Citi, which has more than 750 public sector clients, invests heavily in innovation, employing approximately 70,000 technology experts, and investing more than 20% of its revenue in technology. A key part of our approach to innovation is co-creation of new solutions with clients. 12 https://unctad.org/system/files/official-document/tir2020_en.pdf 13 https://unctad.org/system/files/official-document/tir2020_en.pdf Citi Perspectives for the Public Sector 61