GovTech to deliver $10 trillion in value by 2034, says WEF

At the meeting of the World Economic Forum (WEF) in Davos this week, tech is front and center – and it goes beyond reckoning with this week’s speech from a new U.S. president cozying up to Silicon Valley. WEF’s wider take on government technology (GovTech for short) frames it as “a transformative force with the potential to enable governments to be more transparent, efficient and sustainable.”

The Forum’s tone leans toward evangelism, and the wider societal implications of a totally digitized government are largely swept aside. But the stated benefits of GovTech – gains in efficiency, transparency and sustainability – speak to concerns across the political spectrum.

GovTech maintains trust in government by keeping pace with digitization

An online feature from WEF looks at the proposed benefits in the context of a newly published report, which estimates GovTech could deliver nearly $10 trillion in public value by 2034. The Forum argues that GovTech is about much more than modernizing creaky bureaucracies; rather, it says, reimagining government as an innately digital entity will enable it to keep up with the speed of private enterprise.

“As public trust wanes and people grow accustomed to the speed and convenience of private-sector innovation, the machinery of governance too often feels slow, opaque and inefficient,” it says. “When governments lag, gaps widen – between rich and poor, urban and rural, connected and disconnected.”

Technology in government offers ‘transformative value to society’

WEF’s report on the global public impact of GovTech forecasts that the market will double from $606 billion in 2024 to $1.42 trillion by 2034. “Yet, its significance transcends sheer market growth, offering transformative value to society.”

It does so by enabling gains in three critical areas.

The first is efficiency gains from automation. WEF points to Azerbaijan’s e-visa system, which “reduced application processing times from nearly a week to three hours, while its digital contracts system cut administrative tasks from days to just 15 minutes.”

The second is gains in transparency. “GovTech enhances transparency and combats corruption, which is estimated to cost 5 percent of global gross domestic product annually. Bahrain’s Open Data Portal reflects this commitment to transparency, offering access to over 390 datasets from various ministries.”

Finally, sustainability gains address the escalating economic toll of inaction on climate crises. “From resource optimization to emissions reductions,” WEF says, GovTech supports climate goals.

WEF ultimately frames digital government as an urgent problem, requiring bold leadership, decisive action, wide collaboration, strategic infrastructure investment and a commitment to inclusivity. “We are at a pivotal moment,” it says. “As climate change accelerates, economies transition, and societies digitize, governments must decide whether to lead or lag.”

Per the report, “a true GovTech transformation promises far reaching benefits, from more efficient resource allocation and data-driven decision-making to the creation of new value across public services.”

Blake Hall talks digital ID wallets at WEF

ID.me’s CEO Blake Hall is in Davos participating in WEF, and GovTech is on his mind, too.

Hall is speaking on a panel, “Reimagining Governance: The Next Frontier in GovTech,” to share insights on “how technology, including digital identity wallets, can improve public trust and enhance government services.”

He also contributed an article for WEF on how AI-driven fraud challenges the global economy, and how digital ID wallets can help address the problem.

Identity verification a key piece of digital economy

For digital government to work, there must be a solid foundation of trust underpinning transactions. Digital wallets are a conduit for trust – but trust itself is built on identity verification. A piece from Thomson Reuters looks at how digital advancements in identity verification can help build trust, and weighs the risks inherent in implementation.

The focus is a case study on the U.S. Supplemental Nutrition Assistance Program (SNAP), which now delivers benefits online. Account fraud is a problem. The study looks at how organizations can blend legacy and new identity verification measures to improve security. There are roles for knowledge, possession, inherence (of which biometrics is an example), location and behavior. There is also a need for oversight on data collection, and for systems to be adaptable to change.

Article Topics

biometric authentication  |  biometrics  |  digital government  |  digital ID  |  digital wallets  |  government services  |  ID.me  |  identity verification  |  World Economic Forum