Brookings and Co-Develop urge smarter MDB financing and digital infrastructure reuse

As governments increasingly invest in digital public infrastructure (DPI), a new policy discussion led by Brookings and Co‑Develop is calling for a fundamental rethink of how multilateral development banks (MDBs) finance digital systems. The goal is to unlock the full potential of digital assets through reuse, interoperability, and continuous development.

Unlike traditional infrastructure, digital assets — such as software, datasets, and protocols — scale efficiently. Once built, a single codebase or dataset can serve millions at near-zero marginal cost, with each new user lowering average costs and strengthening network effects. For governments, this “reuse dividend” offers a unique chance to advance inclusion and efficiency, Brookings and Co-Develop argues.

However, MDB financing remains rooted in models designed for physical infrastructure, which is capital-intensive, siloed and hard to iterate. Digital systems are still treated as bespoke solutions for individual ministries, rarely reused across agencies or borders.

To address this, Brookings’ Center for Sustainable Development and Co‑Develop convened a roundtable with global stakeholders to explore how MDBs can better support digital infrastructure reuse without compromising national sovereignty.

Cross-sector collaboration, agile deployment

Participants identified key priorities: shifting incentives to reward shared platforms over narrow mandates, and restructuring MDB loans to encourage cross-sector collaboration. They stressed the need for clearer procurement models, interoperable APIs, permissive licensing, and vendor agreements that contribute back to shared codebases. Harmonizing global safeguards can also help assess technical compliance and real-world impact.

Agile deployment was another focus. Prototyping sandboxes, pre-vetted vendor marketplaces, and use-case-specific building blocks — such as agriculture data protocols — can reduce costs and improve delivery. Ethiopia’s digital ID rollout, supported by the World Bank, was cited as a successful example of cross-sector collaboration.

Participants also emphasized the importance of ongoing system maintenance. They urged MDBs to fund operational expenses and adopt commercial best practices like continuous integration and deployment (CI/CD). Results-based financing (RBF), piloted in Jordan, was highlighted as a promising model linking disbursements to performance metrics and inclusive governance.

The roundtable concluded with three strategic proposals to accelerate global DPI reuse: codifying common loan eligibility criteria to promote interoperability and accountability; strengthening MDB–government collaboration to support integrated investment strategies; and focusing reform efforts on shared global goals, such as scaling digital cash transfers to combat poverty.

Success in this domain could inspire similar reuse-driven approaches to health, food systems, and climate resilience — redefining MDBs as curators of global public goods. Realizing the reuse dividend will require a coordinated shift from bespoke digital projects to shared, adaptable infrastructure across ministries and borders, the meeting concluded.

AI in public services should not leave young people behind, WEF piece argues

A piece authored by Valeria Tafoya, who specializes in artificial intelligence for sustainable development at UCL, looks at how AI in government should be designed to empower people, for the World Economic Forum.

While governments around the world are actively publishing their AI strategies, Tafoya says many of these efforts lack ways to monitor outcomes or assess risks. According to the Artificial Intelligence Index Report 2024, 32 out of 128 countries enacted at least one AI-related bill between 2016 and 2023.

The OECD has highlighted that digital government adoption remains uneven, with many countries facing challenges in interoperability and governance capacity. These limitations hinder effective data sharing, coordination and the delivery of seamless public services.

From a youth perspective, the urgency stems not only from the rapid adoption of AI but also from the opportunity to rethink governance itself, the WEF piece argues. A July workshop revealed that AI is entering public systems at a time when younger generations are demanding greater transparency, inclusivity, and measurable impact.

Building critical public systems that rely heavily on AI carries risks, including service disruptions, privacy breaches and power imbalances. This underscores the importance of designing AI systems with human oversight, accountability and resilience at their core.

Digital sovereignty is often narrowly defined by data storage location, but it also encompasses the capacity to govern technology through skilled teams, resilient infrastructure and frameworks that enable the use of data in the public interest.

The U.S.-based GovTech initiative, Propel, offers a compelling example by developing tools to evaluate AI models in public assistance programs. These tools help monitor performance, detect bias and ensure that AI-driven decisions are fair and transparent.

To truly transform how citizens interact with government services, complex systems must be made transparent. This involves explaining AI decisions clearly, auditing algorithms for fairness and enabling robust oversight. Mexico’s initiative to introduce a biometric CURP, which integrates fingerprint and iris biometric data into a unified digital identity system, has sparked concern among digital rights groups who warn of potential mass surveillance and human rights violations.

When foundational safeguards are in place, governments can move beyond risk mitigation to experiment with agile approaches, pilot programs and iterative reforms. This opens space for youth and civil society to co-create solutions that are both responsible and responsive to public needs. Some governments are already exploring such models.

In Spain, Correos Lab uses pilot financing and prize mechanisms to accelerate GovTech solutions, enabling them to be tested at scale within months. Achieving this requires enabling conditions such as standardized interoperability rules, procurement processes that support small and medium-sized enterprises, and iterative testing pathways that inform broader reform.

Youth networks are emerging as living laboratories for innovation, bringing urgency, creativity, and a commitment to responsible technology. They are increasingly positioned as co-designers in cross-functional teams, research initiatives, accelerators, and incubators. By partnering with universities, innovation centers, and startup ecosystems, governments can harness young people’s perspectives as a renewable source of civic imagination.

AI is poised to reshape public service delivery, but its impact will be positive only if citizens remain central to system design, if pilot programs have credible paths to scale, and if digital sovereignty includes not just infrastructure ownership but also the capacity to govern it effectively, Tafoya believes.

Article Topics

Co-Develop  |  digital government  |  digital ID  |  digital public infrastructure  |  World Economic Forum