National Digital Transformation in the Maldives
The Maldives has been making strides in digital adoption, but how does it fare when it comes to a comprehensive National Digital Transformation? Let’s dive into the current state, challenges, and potential paths forward for this island nation.
The Current Landscape: Digital Government vs. National Digital Transformation
The Maldives has never had an integrated National Digital Transformation Strategy. Instead, the focus has been narrowly aimed at Digital Government to improve Public Digital Services. This approach, while beneficial, falls short of a true national digital transformation.
One key issue is the government’s tendency to conflate National Digital Transformation with Digital Government (Public Service Delivery Portals). This misconception limits the scope and potential impact of digital initiatives.
What is the current state in Digital Readiness?
According to the UNDP Digital Readiness Assessment toolkit for rapid analysis, the Maldives is currently in the stage 2 out of 5 in Digital Readiness. This means the country is advancing in selected areas of digital transformation but without a coordinated strategy.
There are 5 pillars for the Digital Readiness assessment and 5 Stages of Digital Readiness Assessment. We have scored inconsistently in different pillars of the Digital Readiness Assessment.
The UNDP Digital Transformation Framework
The UNDP’s Digital Transformation Framework outlines the most crucial areas for collaboration to ensure inclusive digital transformation. It places UNDP’s Principles of Digital Inclusion at its center and incorporates Digital Public Infrastructure (DPI) as a key enabler.
This framework aims to improve coordination and clarity, driving a whole-of-government and whole-of-society approach to digital transformation. This is vital for achieving digital inclusion and leveraging digital technologies to achieve the Sustainable Development Goals.
The Framework consists of five pillars
which are: (1) People, (2) Connectivity, (3) Government, (4) Regulation, and (5) Economy.
The Digital Readiness Assessment also aims to improve coordination and
clarity to drive a whole-of-government and whole-of-society approach to digital transformation. This is crucial in achieving digital inclusion, ensuring that no one is left behind from the potential of digital, and enabling countries to leverage digital to achieve the Sustainable Development Goals.
Unique Challenges for the Maldives
The Maldives faces distinct challenges in implementing a comprehensive digital transformation strategy:
- A whole-of-society approach can be problematic, as many individuals without relevant experience offer opinions on digital transformation.
- These views often focus narrowly on specific aspects like technical standards or public service delivery, missing the broader scope of national digital transformation.
- The government has yet to publish an official digital transformation roadmap or strategy, making it difficult to align efforts and set comprehensive national goals.
- Policymakers often use inconsistent terminology and fail to differentiate between National Digital Transformation and Smart Nation or Smart City Development.
example: https://minnovation.com.au/smart-cities-2/australias-smart-cities-current-projects-and-future-plans/
The Bright Spot: Digital Public Infrastructure
One area where the Maldives shines is in Digital Public Infrastructure, particularly in payments. The country ranks at the highest level — transformational (5) — in this category. This success can be attributed to the proactive work of local banks in facilitating online banking well before the COVID-19 pandemic.
The Challenge: Digital Economy
On the flip side, the Maldives scores a concerningly low 0.25 in Digital Economy. This low score stems from a lack of clarity between Digital Economy and Digital Government among policymakers. While there’s talk about economic diversification, concrete plans for nurturing technology startups are scarce.
Why Should We Care?
The potential for economic growth through tech startups is immense. Take, for example, the recent sale of a Sri Lankan tech startup, WSO2, for $600 million. This success story underscores the untapped potential in the region.
The Road Ahead: Fostering Innovation and Collaboration
It’s high time for the Ministry of Economic Development to take significant steps to uplift the startup ecosystem and diversify the economy. The government needs to work closely with the private sector in this digital transformation journey.
Some potential strategies could include:
- Implementing support programs similar to Enterprise Singapore, which provides grants to startups
- Exploring investment models akin to Temasek Holdings
- Creating a robust innovation ecosystem with substantial government support for startups
The Importance of a Whole-of-Society Approach
The UNDP emphasizes the need for a whole-of-society approach alongside a whole-of-government strategy. This ensures that digital transformation considers all aspects of society, including vulnerable and marginalized groups.
I believe the current administration is working on a digital transformation roadmap, and it will reflect on key areas as addressed in the article when it comes to the digital economy and hoping that it will also take the important role of the private sector into consideration.
GovTech Maturity: Room for Improvement
The World Bank’s GovTech Maturity Index 2023 reveals that the Maldives lags in crucial aspects of public sector innovation. Specifically, the country lacks a dedicated agency to drive government innovation and policies to nurture GovTech startups.
Conclusion: A Call to Action
As the current administration works on a digital transformation roadmap, it’s crucial to address key areas like the digital economy and the role of the private sector. By tackling technology challenges from an outside perspective and fostering collaboration between public and private sectors, the Maldives can set a strong foundation for its digital transformation journey.
