Building blocks for a new U.S. posture on digital development – from bilateral response to multilateral coordination

Read the full Beyond Connectivity: Visions for values-based digital development dossier.

U.S. policymakers are showing a markedly increased interest in addressing the persistent digital divide in low- and middle-income countries (LMICs). An examination of digital policy trends points the way to how the U.S. government can channel its resources and work effectively with allies to meet the stated needs of LMIC stakeholders, while promoting the values that underpin liberal democracies, including the right to privacy and to freedom of expression. Through a combination of desk research and consultations with subject-matter experts, as well as with current and former government officials from the United States and LMICs, we find that:

1. The growing policy attention to digital transformation in LMICs is motivated by (a) growing concern of authoritarian influences exerted through digital technology and data surveillance; (b) the hope that closing the digital divide can open new markets for next-generation digital technologies produced in the U.S.; and (c) the opportunity to use technology to close the social and economic divides in LMICs made even more apparent by the Covid-19 pandemic.
2. The increased policy attention among U.S. policymakers has led to lofty statements and highly visible initiatives designed to catalyze investments in technology that prioritize individual rights, market competition, environmental impact, and transparency. However, this rhetoric has, largely, yet to be matched with commensurate funding among the U.S. agencies that offer aid and investment in LMICs. There also is still no clearly articulated strategy that defines where and how these agencies can best engage and how to effectively coordinate with democratic allies. In fact, certain legislation governing U.S. foreign assistance hampers the American response to digital authoritarianism and the global digital divide.
3. The increased policy attention among U.S. policymakers has led to lofty statements and highly visible initiatives designed to catalyze investments in technology that prioritize individual rights, market competition, environmental impact, and transparency. However, this rhetoric has, largely, yet to be matched with commensurate funding among the U.S. agencies that offer aid and investment in LMICs. There also is still no clearly articulated strategy that defines where and how these agencies can best engage and how to effectively coordinate with democratic allies. In fact, certain legislation governing U.S. foreign assistance hampers the American response to digital authoritarianism and the global digital divide.
4. To be a partner in the digital journey of LMICs, the U.S. and its allies should emphasize shared resources, mechanisms for coherent cross-border regulation, capacity building, and open dialogue to ensure the national policy landscape in the U.S. positively supports LMICs.
5. Finally, any meaningful response on the part of the U.S. government must be done in coordination with democratic allies, in particular the European Union and G7 member states. To offer a complement, if not an alternative (which may not be feasible), to China’s state-subsidized approach, the U.S. will need to work closely with allied sovereign states and multilateral development banks to both create the conditions for attracting private, institutional investment, and agree upon a common, overarching values framework to govern the digital infrastructure.