The Group of Twenty (G20) serves as the premier forum for international economic cooperation, bringing together 19 countries and the European Union. Originating in response to the late 1990s Asian financial crisis, the G20 has evolved into a platform for major economies, expanding its influence to cover 85% of the world’s economic output, over 75% of global trade, and two-thirds of the global population. As a crucial actor in global governance, politics, and cooperation, the G20 has played a pivotal role in overcoming economic crises and addressing critical global issues.
Evolution of the G20 Digital Economy Agenda
The 21st century has been aptly dubbed the “century of digital advancements”. The G20’s digital economy discussions began in 2015 when Turkey initiated the B20 Conference on Digital Economy. Subsequently, the G20 Leaders’ Communique, 2015 acknowledged the dual nature of the internet economy. The Hangzhou Summit, 2016 marked a turning point with the establishment of the Digital Economy Task Force (DETF). Discussions within the DETF focused on fostering entrepreneurship, enhancing science and technology cooperation. Following this, Germany’s presidency in 2017 saw the formation of the first G20 Digital Economy Ministerial Meeting and the introduction of the G20 Roadmap on Digital Economy where initiatives like the G20 Digital Government Principles, Bridging the Digital Gender Divide, Measurement of the Digital Economy, and Accelerating Digital Infrastructure for Development, were introduced. Japan, during its presidency in 2019, continued the G20’s exploration of digital policies and emphasised on human-centric AI and the promotion of AI principles. The year 2020 was a turning point, catalysed by the COVID-19 pandemic, which underscored the critical role of the digital economy in economic recovery. The Riyadh Summit, 2020 emphasised the importance of data-driven, human-centric, and evidence-based policies, recognizing the role of digitization in improving living standards, enhancing economic competitiveness, creating quality jobs, and providing public services. This initiative aimed to address challenges such as digital divides, innovative policy strategies, anti-competitive practices, privacy protection, security, and inequality reduction. Following this in the Rome Summit, 2021, the DETF focused on topics including Digital Transformation for Sustainable Growth; Trustworthy Artificial Intelligence; Measurement and Impact of the Digital Economy; Consumer Awareness and Protection; Children Protection and Empowerment; Innovation for Smart Cities and Communities; Connectivity and Social Inclusion; Data Free Flow with Trust; Digital Government; Digital Identity; and Agile Regulation.
Indonesia’s Presidency
Although discussions around the digital economy have made a significant mark in the overall G20 deliberations, it was only in 2022 that this domain was formalised as a working group. Following the overarching theme of ‘Recover Together, Recover Better’, Indonesia worked on the subtheme of ‘Achieving a Resilient Recovery: Working Together For a More Inclusive, Empowering, and Sustainable Digital Transformation’ and held 4 DEWG meetings in 2022 culminating into the Bali Package . The Indonesian G20 Presidency highlighted the concept of “people-centred digital connectivity,” in its document titled ‘Stocktaking on the Extended Concept and Shared Understanding of Digital Connectivity’, emphasising resilient, high-quality connectivity that supports inclusive, safe, and secure digital public services. ‘The Collection of Policies and Recommendations’ was released with the aim to improve meaningful participation of people in vulnerable situations and bridge digital divides in the digital economy. Digital identity solutions play a crucial role in advancing digital inclusion and achieving Sustainable Development Goals (SDGs). To support this progress, a report on Identifying Key Enablers on Digital Identity was released.
India’s Presidency
The first (DEWG) meeting under India’s Presidency was held on 13-15 February, 2023 in Lucknow. The inaugural day featured five workshops covering various aspects of digital public infrastructure, cybersecurity solutions for MSMEs, sustainable development goals, and the application of geospatial technologies. The following day showcased extensive discussions on two priority areas: Digital Public Infrastructure and Cybersecurity. The final day focused on the priority of Digital Skilling, with India proposing mechanisms for building a digitally skilled and future-ready workforce. The second meeting of the (DEWG) was organised on 17-19 April, 2023 in Hyderabad. On the first day, thematic panel discussions addressed topics such as high-speed mobile broadband, digital inclusion, and sustainable green digital infrastructure. The following day, a multi-stakeholder workshop on the “Mutual Recognition Framework on Digital Skills” was conducted, showcasing best practices and initiatives in the field. The day also featured in-depth discussions on the critical role of Digital Skilling in shaping digital transformation. The third day included detailed discussions on Digital Public Infrastructure and Cyber Security in the Digital Economy. The meeting also aimed to enhance coherence among various G20 Working Groups and Parallel Tracks, with discussions involving leads from Global Partnership for Financial Inclusion (GPFI) and the Health Working Group. The meeting highlighted DPI initiatives related to financial inclusion and universal digital healthcare in India.
The third DEWG meeting was conducted on 12-14 June, 2023 in Pune. The Global DPI Summit was a significant event facilitating discussions on sector-agnostic and sectoral DPIs, featuring thought-provoking discussions among 60 global experts. INDIA STACK, a successful digital solution implemented at a population scale, was released and around 7 countries have already signed MoUs with India in this regard. The Global DPI Exhibition showcased successfully implemented DPIs, attracting a diverse audience. The closed-door meeting of G20 DEWG centred on topics such as Digital Public Infrastructure (DPI), the concept of the “One Future Alliance & One Future Fund” for DPI, enabling principles for good DPI, and financing opportunities for DPI in Low and Middle Income Countries (LMICs).
The fourth and the final meeting of the DEWG concluded in Bengaluru on August 19, 2023. The G20 New Delhi Leaders’ Declaration, resultant outcome document of this meeting, the preceding meetings, and the related side events, covers a range of topics relating to the discourse of digital economy that were. The declaration acknowledges the significance of fostering an inclusive, open, fair, and secure digital economy. The document highlights the critical role of digital technologies in addressing challenges posed by the COVID-19 pandemic and in helping countries with limited technological and financial capacity to develop inclusive, secure, and trusted digital systems that respect human rights and thus calls for an inclusive, sustainable, and human-centric approach that prioritises privacy and data protection to harness the potential of digitalization.
Accessible, inclusive, secure, and safe digital systems were acknowledged as drivers of the future economy, fostering growth, innovation, education, and sustainable development. Furthermore, the potential of digital skilling initiatives to accelerate digital economic growth was also highlighted. The deliberations this year revolved around three major areas: Digital Public Infrastructure (DPI) for Digital Inclusion and Innovation, Building Safety, Security, Resilience and Trust in the Digital Economy, Digital Skilling for Building a Global Future Ready Workforce.
The document sets out to define DPI as a set of shared digital systems built on secure, interoperable, and open standards to provide equitable access to public and private services. This infrastructure, governed by applicable legal frameworks, is crucial for fostering development, innovation, trust, and competition while respecting human rights. DPI played a pivotal role during the COVID-19 pandemic by facilitating access to services through innovative public and private sector solutions. The Ministers of the DEWG stressed on the importance of secure and inclusive governance for DPI, promoting a human-centric approach and protecting privacy and data. They underscored the potential of DPI in enhancing meaningful connectivity and advancing the 2030 Agenda for Sustainable Development and Sustainable Development Goals. Acknowledging the global demand for DPI, the Ministers emphasise the need for comprehensive, multi-stakeholder approaches, coordinated financing, and technical assistance, particularly for Low-and-Middle-Income Countries (LMICs). Subsequently, the Ministers proposed the One Future Alliance (OFA) as a voluntary initiative to synergize global efforts in the DPI ecosystem. Recognizing the existing gap in knowledge sharing on DPI, the outcome document also recommends the establishment of a Global Digital Public Infrastructure Repository (GDPIR) to facilitate the sharing of practices and experiences related to DPI development and deployment in various countries. Post this meeting, a report by the World Bank, guided by the G20 India Presidency, Ministry of Finance and Reserve Bank of India (RBI), titled G20 Policy Recommendations for Advancing Financial Inclusion and Productivity Gains through Digital Public Infrastructure was released.
The document also discusses safety, security, resilience, and trust in the digital economy and reaffirms the importance of the same. Digital solutions are now integral to various sectors and thus there is a significant need for shared practices and approaches to build a secure and resilient digital economy. Multi-stakeholder collaboration is highlighted as a critical strategy for addressing shared security risks associated with the digital economy. In this regard, the DEWG introduced G20 High-Level Principles for Enhancing Safety, Security, Resilience, and Trust in the Digital Economy, which is a non-binding document inspired by the strategies and tools previously developed and employed by G20 member states. These principles are intended to strengthen the digital economy’s resilience by promoting a culture of security, encouraging capacity-building, promoting multi-stakeholder collaboration, and providing support for research and development.
The Ministers also focus on addressing digital skill gaps and promoting digital literacy, with a strong emphasis on reducing gender skill gaps. They recognize the need for upskilling and reskilling the workforce, especially in the context of changing job requirements in the digital era. In this regard, the G20 Toolkit on Digital Upskilling and Reskilling Programs was introduced as a resource to guide these efforts. To ensure a common understanding of digital skills across borders, the G20 Roadmap to Facilitate the Cross-Country Comparison of Digital Skills is welcomed. This roadmap aims to enable cross-country comparisons of job roles and digital skills, bridging the gap between supply and demand for digitally skilled workers. Finally, the DEWG also proposed to develop a virtual Center of Excellence (CoE) for digital skilling initiatives, highlighting its potential to share best practices and encourage learning from different countries’ approaches. This centre would be constructed and managed by UNESCO, serving as a repository for best practices related to digital skilling initiatives, occupational standards, skill taxonomies, professional certifications, skill credentials, as well as studies pertaining to demand and supply gaps, with a particular focus on digital skills. The primary objectives would include the exchange of pertinent information and the encouragement of knowledge sharing regarding the approaches of interested countries.
The G20’s commitment to the digital economy has evolved over the years, addressing several global challenges and opportunities. The recent achievements under India’s presidency have set the stage for continued collaboration and progress. India’s presidency resulted in the first ever instance of 19 member states providing a working definition for DPI, and detailed principles and approaches that might be considered in its development and deployment. India’s strategy of running parallel negotiations, both within the G20 process and bilaterally with key trading partners, paid off handsomely and led to the inclusion of DPI in joint statements and policy charters with countries like the United States, the European Union, France, and the United Kingdom. In the coming years, as the digital economy takes centre stage in global discussions, the G20 remains a key player in shaping its future, ensuring inclusivity, innovation, and responsible governance.