In many low and least developed countries, the journey towards digital transformation is akin to ‘navigating a labyrinth in the dark’ as a government official from Uganda put it. Without access to reliable data and strategic insights, governments and stakeholders often struggle to make informed decisions, hindering their progress and leaving many communities excluded from the benefits of the digital economy. Recognizing this challenge, the United Nations Capital Development Fund (UNCDF) has pioneered the Inclusive Digital Economy Scorecard (IDES) initiative. This strategic policy tool empowers governments by informing the path to digital inclusion, providing the crucial data needed to overcome market constraints and set priorities for a more inclusive digital future.

This article is part of a two-part series on taking stock of four years of the IDES. Building on a comprehensive survey and interviews with over 30 stakeholders, this part summarizes results and achievements in terms of government adoption, policy support and capacity building while the second part looks into specific country case studies and draws on interviews with key government stakeholders. You can find Part 2 of our blog series here.

A tool to measure the progress of a country’s digital transformation

Since its inception in 2021, the IDES is implemented in 33 countries in Africa, Asia and the Pacific with data collected for each country on an annual basis. The IDES follows a multidimensional approach and measures both the development and the inclusiveness of a country’s digital economy across four key building blocks: Policy & Regulation, Infrastructure, Innovation and Skills. Emphasizing the need to build digital economies that leave no one behind, the IDES measures the inclusion of eight marginalized segments across these dimensions: women, youth, elderly, refugees, migrants, micro-, small- and medium-sized enterprises (MSMEs), rural populations and people with disabilities. For more details on the IDES methodology, please see here.

Enabling governments: Adopted by 11 countries in Africa and the Pacific

A pivotal milestone in the IDES journey has been the official adoption of the scorecard by 10 governments as their national measurement tool for digital transformation. These countries include Burkina Faso, Democratic Republic of the Congo, Ethiopia, Madagascar, Malawi, Niger, Solomon Islands, Tonga, Uganda, and Zambia. By embracing IDES, these nations are signaling their commitment to measuring and advancing inclusive digital economies. In June 2024 as we are closing this blog, Gabon became the 11^th country to adopt IDES.

Driving policy change: Informed 17 draft and 10 enacted policy actions

IDES has not only been a measurement tool but also a catalyst for informed policy actions. A total of 17 drafts and 10 enacted policy actions have been directly informed by the scorecard across various countries. For instance, countries like Zambia, Sierra Leone and Madagascar leveraged the insights from the Digital Economy Score and Digital Inclusiveness Score to identify policy interventions and to set relevant targets for their National Digital Economy Strategies. Similarly, the design of National Financial Inclusion Strategies in Sierra Leone, Solomon Islands and Tonga have been directly informed by the results of the Digital and Women’s Inclusiveness Scores.

Beyond national governments, the IDES has garnered significant traction among other stakeholders at both national and global levels. For example, UNDP, UN Women, GSMA, Digital Impact Alliance, and Alliance for Financial Inclusion, are leveraging IDES for digital transformation analysis. Other stakeholders ranging from academic institutions like Griffiths University and Kathmandu University to industry players and NGOs like Solomon Islands’ Our Telekom and Tonga Women in ICT have leveraged the IDES to inform their work and market analysis. More concretely, UNDP adopted IDES as a key element of the SDG Digital Finance Ecosystem Assessment (SDFE) to assess the “Digital Finance Foundations” and “Inclusivity of the Digital Economy” in countries such as Morocco, Iraq, Lebanon and Namibia. In another use case, Griffiths University in Australia employed the IDES framework to develop over 20 case studies in the Asia-Pacific region that exemplify best-practices to achieve inclusive digital growth in the different areas of the Digital Economy Score, ranging from enabling digital regulation in Bangladesh to mobile payment systems in Samoa.

Strengthening national capacities: 1,520 participants from governments and other stakeholders trained

One of the core objectives of this tool is to build capacity among government agencies and stakeholders in tracking progress and designing effective digital policies and strategies. Through targeted support, IDES has assisted over 140 government agencies and stakeholders, equipping them with the necessary skills and knowledge to drive digital transformation agendas effectively. This capacity building has been achieved through stakeholder engagements and workshops, but also through concrete initiatives in various countries to drive digital transformation and inclusion at the national level. For example, Burkina Faso, Niger, Uganda and Malawi have established working groups to build capacity on a national level and develop policy recommendations based on the yearly IDES results.

In line with the tool’s objectives, a series of events and workshops contributed to stimulate knowledge sharing and collaboration among stakeholders. With 60 results presentations, 30 IDES workshops, and 28 capacity-building events conducted, IDES has reached over 1520 participants from governments and other stakeholders. This broad engagement reflects a commitment to fostering dialogue and sharing best practices in building inclusive digital economies. Initiatives include the inaugural IDES Community of Practice Meeting with policymakers from 15 different countries in Zambia, the launch of IDES at the UN General Assembly and the development of IDES training modules for two digital transformation courses for policymakers at the African Institute of Economic Development and Planning (IDEP) and graduate students at Tufts University. Furthermore, the IDES website is not only an interactive platform providing the scores of 33 countries, but also a repository of 18 knowledge products. These resources serve as valuable tools for stakeholders interested in advancing inclusive digital economies in their respective contexts.

In conclusion, the outcomes realized by IDES stakeholders highlight the transformative potential of collaborative efforts in advancing inclusive digital economies. By adopting standardized measurement tools, informing policy actions, and fostering collaboration, IDES stakeholders are laying the groundwork for a more equitable and inclusive digital future. As we continue on this journey, let us continue to leverage the power of partnership and innovation to build a world where everyone can fully participate and benefit from the digital economy.

Felix Mutati, the Minister of Technology & Science of Zambia summarized our IDES collaboration as follows: ”We now have a clear path regarding the direction we must take for our digital transformation. The IDES work that you have done with us is exceptional, and we will continue to look towards your cooperation and hand-holding, as we become a champion to deliver digital transformation in this part of the world.” To learn more about our partners perspectives on IDES, please click here for Part 2 of our blog series.