Background Digital transformation – a key topic in development cooperation

Digital technologies are a driving force for sustainable development and thus play a crucial role in the implementation of the 2030 Agenda. They can improve access to public services, or even make these services accessible in the first place. They can enable communication with people living in remote areas, and can offer brand new economic opportunities.

The digital transformation is enabling millions of people to connect online, to get involved in discussions and exchange viewpoints. For governments and administrations, digital technologies offer a variety of opportunities for reforming the public sector and ways to better reach and support their citizens – for example in the areas of healthcare or social support. Digital services change the relationship between citizens and the state, and can substantially improve inclusive participation in democratic processes.

Digital technologies also represent a major opportunity to help tackle one of the biggest challenges of our time: climate change and adaptation to its effects. For example, artificial intelligence can help to recognise the signs of oncoming drought or extreme weather events early, manage irrigation efficiently and in a way that conserves resources, and plan and direct urban traffic so as to minimise its environmental impact.

The digital transformation is also transforming development cooperation itself. Digital technologies are improving communication with partner organisations and the general population, and are helping to create new tools for planning, impact assessment, forecasting and accountability.

Digital transformation also brings new challenges that development cooperation needs to address.

Existing disparities in access to and use of digital technologies (known as the “digital divide”) can amplify existing income disparities. According to the latest Mobile Gender Gap Report (External link), around 265 million women around the world have less access to mobile internet than men, which excludes them from many of the opportunities offered by the digital transformation. The internet provides access to information, education, networks, job portals, digital payment systems and services. Women and girls are denied all of these digital opportunities if they cannot access the internet. At the same time, marginalised groups and people living in rural areas stand to benefit hugely from digital technologies, which can facilitate economic, public and political participation, make it easier to access health services, and enable them to reach their educational and employment potential.

How wide the digital divide is depends on various factors. In addition to the necessary infrastructure and affordable access, knowledge about how to use digital technologies and the availability of relevant content also play a role.

The Federal Ministry for Economic Cooperation and Development (BMZ) is committed to pursuing a digital transformation that puts the focus on people, takes disadvantaged groups into account, and helps to conserve natural resources and combat global challenges like hunger and poverty.