Assessing the Socioeconomic Impacts of Digital Public Infrastructure
Digital Public Infrastructure (DPI) refers to foundational digital systems, such as digital identification, digital payments, and data exchange platforms; those enable efficient, inclusive, and transparent public service delivery. These systems act as the backbone of digital transformation, supporting governance and economic development at scale.
Recognizing its importance, the Global Development Network (GDN), with support from Co-Develop, launched a pilot program to assess the socioeconomic impacts of DPI in three countries: Bangladesh, Ethiopia, and Benin. The pilot aimed to generate locally driven, evidence-based insights into how DPI contributes to welfare, growth, and governance outcomes, while also addressing risks related to digital divides, data governance, and inclusion.
In Bangladesh, the South Asian Network on Economic Modeling (SANEM) served as the implementing partner. SANEM designed and carried out a comprehensive study to examine the socioeconomic effects of DPI. Using a mixed-method approach, the study combined quantitative and qualitative tools. The quantitative analysis drew on nationally representative survey data, applying Propensity Score Matching (PSM) to measure the causal effects of DPI on household welfare, and incorporated satellite night-time light data to assess regional economic activity linked to DPI use. In addition, SANEM conducted a cross-country econometric exercise to place Bangladesh’s DPI progress within the global context. To complement the econometric findings, the study also gathered insights from key informant interviews with relevant stakeholders, ensuring that institutional and governance perspectives were reflected.
The study’s findings underscore DPI’s role in advancing socioeconomic development in Bangladesh. Results from the PSM analysis show that individuals with access to DPI score significantly higher on a socioeconomic status index, suggesting a meaningful positive impact on welfare. Regional analysis using night-time light data revealed that areas with greater DPI uptake experience stronger economic activity, while cross-country evidence confirmed DPI’s contribution to GDP growth.
On the ground, Bangladesh’s DPI initiatives, such as the National ID system, the Surokkha vaccination platform, and more than 9,000 Union Digital Centres, have saved citizens time and costs, enhanced transparency, and expanded access to essential services, particularly for rural and marginalized groups. However, challenges remain, including fragmented data systems, low levels of digital literacy, cybersecurity risks, and persistent gender and rural-urban gaps in usage.
SANEM’s study demonstrates that DPI has significant potential to foster inclusive growth and good governance in Bangladesh. The findings point to the need for strengthening data governance, enhancing digital literacy, and ensuring inclusive design to maximize DPI’s benefits for all citizens.
