The Global Digital Solidarity Fund

“Let us act together, locally and globally, to ensure that the digital opportunities provided by the emerging information society promote a fairer, more equitable and more cooperative society.” Digital Solidarity Fund Charter

On 14 March 2005, the Global Digital Solidarity Fund was launched in Geneva at an inaugural ceremony that included several Heads of State, and distinguished officials from around the world.

The mission of this newly-inaugurated Fund is to promote and finance development projects that will enable marginalized people and countries to take their place in the Information Society. The Fund relies on the voluntary commitment of stakeholders, and complements existing funding mechanisms.

Designed as a collective effort to dismantle existing obstacles to empowering poor communities and nations, it will tackle chronic problems such as prohibitive pricing of technology and technology products, and lack of access to training.
At the same time, the Fund also recognizes that the digital divide is a phenomenon that exists not only between poor and rich countries, but also in the developed world between cities and villages, between men and women, and between the young and the elderly.

An idea whose time had come
When the idea of a voluntary Digital Solidarity Fund was first mooted back in 2003, at the first World Summit for the Information Society, it sparked considerable controversy.

The concept originated from Senegal’s President Wade, who initially proposed the concept of “digital solidarity” to a WSIS Preparatory Committee meeting in February 2003 in his capacity as coordinator of ICT matters within the New Partnership for Africa’s Development (NEPAD).

Supporters of the idea saw the Fund as a new way to help technologically disadvantaged countries improve or build infrastructure in a bid to narrow the digital gap between the developed and developing worlds. Sceptics expressed misgivings about feasibility of managing another global funding mechanism and questioned its effectiveness.

Lack of consensus eventually led the Geneva phase of the Summit to request the United Nations Secretary-General to set up a task force to study existing and new financing mechanisms, including the proposed voluntary Digital Solidarity Fund, and to report back to the second phase of the Summit in Tunis in November 2005.

Many of the prime movers behind the Fund, however, were not content to see this idea put on hold until Tunis 2005. For them, declarations of future intent were not good enough.“ I saw many parties become involved in lengthy discussions over the idea of a new fund for ICT development,” ITU Secretary-General and Secretary General of WSIS, Yoshio Utsumi, recalls. “They even created a task force to investigate the existing funds. But, in the meantime, the organizers of the Digital Solidarity Fund had already taken concrete steps. Truly, actions did speak louder than words.”

On the final day of WSIS Geneva Phase (12 December 2003), the mayors of Geneva and the French city of Lyon, the President of the Province of Turin (Italy) and President Wade of Senegal formed a committee and created the Digital Solidarity Fund. The city of Geneva donated USD 395’000, while Lyon donated EUR 368’000 and Senegal contributed USD 500’000, bringing the starting total to EUR 1 million.

“Many ideas never even leave the planning stages, let alone get tried out. But this was not the case with the Digital Solidarity Fund,” said Utsumi. “I am proud that, through all its work with the WSIS process, ITU has been able to provide the fertile soil for this acorn to grow and mature.”

The Geneva Principle
The Digital Solidarity Fund is sustained through the voluntary commitment of public authorities and/or private entities that decide to implement a new financing mechanism for development known as the “Geneva Principle”.

This principle involves a 1 per cent contribution to the Fund linked to public ICT procurement contracts. On 1 January 2005, the city of Geneva adopted, and is now applying, the Geneva Principle, according to which the city’s public authorities commit to including “a digital solidarity clause” in all calls for bids pertaining to the purchase of ICT equipment and services.

This digital solidarity clause requires the successful bidder to contribute 1 per cent of the total amount of the transaction, paid on its profit margin, to the Digital Solidarity Fund.

New contributions to the Fund
During and after the inauguration ceremony, many additional donors pledged their support and contributions.

Chairman of the African Union, Nigerian President Obasanjo, donated EUR 500’000, pledging administrative and technical support for the Fund’s projects. Algeria’s President Abdelaziz Bouteflika also announced a contribution of USD 500’000, adding that his country was joining the Fund as a founding member.

Mr Benaïssa, representing His Majesty King Mohammed VI of Morocco, announced that his country would also become a founding member of the Fund, and pledged EUR 300’000. France’s Foreign Minister Michel Barnier reiterated his government’s support for what he called a “fair and brilliant” idea based on global solidarity, donating EUR 300’000. President Nguema Mbasogo of Equatorial Guinea also pledged EUR 300’000.

Further pledges of EUR 300’000 have been made by the government of Kenya, the Agence Intergouvernementale de la Francophonie, the city of Paris, the Italian region of Piemont, the French region of Rhône-Alpes, the community of Lille, and the Basque region. Ghana also announced a contribution of EUR 280’000, while the cities of Curitiba, Saint Domingue and Dakar all promised in-kind contributions to the Fund’s work. Like Geneva, the Swiss town of Delémont promised to subscribe to the Geneva Principle including “a digital solidarity clause” in all calls for bids pertaining to the purchase of ICT equipment and services.