Page 45 - Building digital public infrastructure for cities and communities

Bridging the digital divide for local economic development

In developed contexts, DPI is increasingly used to close access gaps that inhibit inclusive growth.
In New York State, where more than 20 per cent of residents lack home Internet access, municipal
broadband initiatives have emerged as a solution to affordability and coverage challenges. These
programmes view broadband as a public good and have spurred local economic development
by attracting small businesses, improving educational access and increasing digital literacy. The
Municipal Infrastructure Program is now a cornerstone of New York’s broader competitiveness
strategy (Tifft, 2025).

Moreover, cities that invest in DPI become more attractive to investors and innovators. As the World
Economic Forum (2023) notes, digital infrastructure is now a key determinant of a city’s global
competitiveness. DPI attracts research, development and talent, further accelerating economic
dynamism and positioning cities as hubs for innovation in the global economy.

DPI is not just a facilitator of digital transactions, it is a strategic enabler of inclusive, sustainable
and innovation-led economic development. Whether in Nairobi or New York, Bangalore or Dhaka,
DPI creates the conditions for entrepreneurship supports financial inclusion and accelerates local
and national growth. Cities and nations that prioritize robust, interoperable DPI systems lay the
groundwork for long-term prosperity in the digital age.

6 Enabling policies and institutional foundations

International legal norms and policy imperatives shape how cities deploy and regulate their DPIs.
For example, the European Union’s General Data Protection Regulation (GDPR) has set a global
benchmark for data privacy, requiring consent, data minimization and “privacy by design (PbD) and
default” in all digital services – principles that city platforms handling personal data must follow.

Similarly, the United Nations’ Urban Agenda and the U4SSC initiative provide guidelines
linking smart city projects to sustainable development and good and effective governance.
International standards development organizations like ITU have developed standards (called
ITU-T Recommendations) and frameworks for smart city Key Performance Indicators (KPIs) and ICT
interoperability, encouraging cities to align with best practices.

Cities are also increasingly joining networks (e.g., the Open and Agile Smart Cities, OASC) to
5
commit to shared principles on privacy, security, transparency and interoperability. To govern DPI
effectively in cities, it is crucial to establish a strong policy and institutional foundations based on
international legal frameworks and universal governance principles.

5 https:// oascities .org/

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