Plan of Action

Committee - ECOSOC
Agenda - Deliberation on the role of the digital economy and its global impact on economic
advancement and entrepreneurship.
Date - 6th October 2024
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The need of the hour is to understand that only through cooperative solutions can the gaps
pertaining in the digital economy be bridged. Issues pertaining to the threats of cyberattacks and
data security require holistic solutions with multifaceted approaches, and so do the causes of
digital divide and lack of digital literacy in the digital economy.
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1. The issue of digital divide arises from not a single but arises as a result of many other,
which are elaborated as mentioned below-
1. Risses further from the fact states issue unregulated regulations and rules for access
to the internet to which we suggest-
a. Inclusion of digital human rights in the mandate of ICCPR in order to ensure
equality of access through article 17 of the same and make nations revert and take
active actions on these.
2. The initiative to establish Digital Literacy as a Human Right aims to ensure access to essential
digital skills for all individuals, from students to seniors.
a. Financing will be sourced from public funding, private sector partnerships, NGO
collaborations like Mozilla foundation,oxfam,Tech soup, philanthropic contributions such
as Bill & Melinda Gates Foundation, and revenue-generating models like fee-based
training and Developed Countries like USA,Germany,Canada,United Kingdom
b. Implementation will involve launching pilot programs such as grow with google,digital
skills for youth etc, creating a collaborative framework among stakeholders, adapting
curriculum to local contexts, training local educators, and ensuring access to technology.
c. To maintain the initiative, continuous evaluation of program effectiveness, community
engagement in development, diverse funding strategies, lifelong learning opportunities,
and advocacy for digital literacy will be essential.
d. By adopting this comprehensive approach, the initiative seeks to empower individuals,
promote inclusivity, and foster societal benefits in the digital age.
3. Rising digital currencies such as cryptocurrencies form separate parallel economies and thus
lead to formation of an unregulated system of these. As solutions-
a. Encouraging nations to establish stable coins pegged to the value of the fiscal currency as
alternatives to pre existing unregulated cryptos while also bringing them under the states’
governmental and central banks.
4. Fintech is not just a technological innovation; it is a powerful engine for economic inclusion,
offering unprecedented opportunities for underserved regions to access capital and participate in
the economy. This is especially crucial for developing economies where traditional banking
services are limited or nonexistent. Digital financial technologies like mobile banking, peer-to-peer
lending, and cryptocurrencies are breaking down longstanding barriers, empowering individuals
and small businesses alike.
a. Countries like Belgium and Kenya highlight the transformative impact fintech can have.
Belgium’s fintech ecosystem, led by companies like Bancontact and KBC, has
modernized payment systems, providing seamless access to financial services for small
businesses and entrepreneurs. Kenya’s M-Pesa is a global success story, bringing over
30 million users into the financial system, many of whom reside in rural areas where
banking infrastructure is sparse. This model has enabled small businesses to thrive,
illustrating the potential of fintech to drive inclusive economic growth.
b. However, in countries like India and Nigeria, the promise of fintech is not fully realized.
India, despite the success of platforms like Paytm and PhonePe, still has around 190
million unbanked adults, especially in rural regions where access to technology is a
significant hurdle. Similarly, Nigeria faces challenges with infrastructure and financial
literacy, with approximately 60% of its population lacking access to formal financial
services.
c. To unlock the full potential of fintech, addressing the underlying barriers of infrastructure,
digital literacy, and inclusive policies is essential. This requires funding from both public
and private sectors. For example, international development organizations like the World
Bank and the International Finance Corporation (IFC) have been key players in funding
fintech projects aimed at boosting financial inclusion in developing countries. The World
Bank’s “Universal Financial Access 2020” initiative has provided $2 billion in investments
to support digital financial services across Africa and Asia.
d. Public-private partnerships are also crucial. In Kenya, M-Pesa’s success is partly due to
funding and collaboration between Vodafone and local telecom companies, supported by
government policies that promoted mobile payment systems. In India, the government
has initiated the “Digital India” program, which allocates significant resources to improve
internet access and promote digital payments, especially in rural areas.
e. By combining government policy support, private sector innovation, and development
funding, countries can create an ecosystem where fintech thrives and promotes
economic inclusion. This blend of initiatives will help bridge the financial gap in
underserved regions, enabling broader access to capital and entrepreneurial
opportunities.
f. Funding for such projects should come from a mix of international development funds,
government allocations toward digital infrastructure, and private investments from fintech
companies themselves. Venture capital and impact investors have also been increasingly
active in supporting fintech solutions in developing markets. For instance, Acumen and
Omidyar Network have invested in fintech ventures that target low-income populations,
helping scale digital financial services and promote financial literacy.
g. In conclusion, fintech’s ability to promote economic inclusion is significant, but realizing its
full potential requires strategic investments in infrastructure, digital literacy programs, and
the creation of enabling regulatory environments. With the right funding models and
collaboration between governments, private sectors, and international organizations,
fintech can drive inclusive growth and empower millions globally.
h. Adoption of E-Government Services-
Digital Public Services: Governments should accelerate the digitalization of public
services (e.g., tax filing, social services) to improve efficiency, transparency, and citizen
engagement.
Digital ID Systems: Implement robust digital identity systems that enable secure, online
verification for various services (banking, healthcare, etc.).