Digital transformation and the future of humanitarian response
Emrys Schoemaker lays out the necessary steps for the humanitarian sector to embrace a “digital public infrastructure” approach.
The humanitarian system is in crisis, yet globally need has never been greater. A growing number of governments have reduced their aid budgets. Recently the US-based International Rescue Committee announced they would cut around 10% of core funded positions, and UK-based Save the Children International announced they would cut over a hundred staff. These cuts are made despite the growing number of conflict and climate crises that demand international support. In May 2024 the UN aid coordinating body (OCHA) reported only $7.9 billion had been received against the GHO requirements by the end of May 2024, just 16% of the requirements for this year. More money is clearly needed. Yet as governments including Sweden, France, and the Netherlands cut their aid budgets, further resources are unlikely to be forthcoming.
But the crisis is not just one of resources; it’s also one of approach, and digital technology could play a role in mitigating it. The ways funds are delivered can be dysfunctional, and the ways digital technology and data are currently used in humanitarian response are a part of that dysfunction. Humanitarian response is a competitive market of tenders and proposals, and organizations with large amounts of data about beneficiaries can promise to deliver humanitarian support more accurately and more efficiently. Consequently, a few large, global organizations dominate the provision of life-saving resources while smaller, local organizations struggle to compete—even as they often know local needs better and deliver more efficiently. Research from Refugees International suggests that local actors can deliver aid 15.5% more efficiently than international organizations.
New approaches to using digital technologies could make a real difference. While the current use of digital technologies enables monopolies and inefficiency, adopting approaches that have been proven to disrupt monopolies, drive efficiency, and enable innovation could help. One approach that offers some inspiration is the emerging thinking around the use of digital technologies for national-level digital transformation. This approach, called “digital public infrastructure” (DPI), could prioritize humanitarian need and introduce greater efficiency to the distribution of scarce resources.
The idea of DPI reflects a shift from building specific digital systems and services to building underlying infrastructure, much like roads, railways, and plumbing. For example, in 2020 Brazil’s central bank launched Pix, an instant payment system, followed by an open finance regime that enables users to share their banking data with a range of credit, insurance, and savings providers. Today, 84% of adults in Brazil have a financial account, up from 56% in 2011.
Core to thinking about DPI is the idea of digital infrastructure that is modular and interoperable, so that components can be switched out and data can flow seamlessly between systems. To date, DPI has largely focused on specific technologies like digital identity, data exchange, and payment systems—all systems that are central to humanitarian response. Crystallized by approaches to digital transformation in countries such as India, Brazil, and Estonia, DPI thinking is gaining widespread traction. In principle, it could help address the monopolization and efficiency problems that the humanitarian sector struggles with.
This isn’t “pie in the sky” thinking—there is real interest in solving these problems. The European Commission’s humanitarian agency ECHO has been funding efforts to make data interoperable and portable, efforts that we at Caribou Digital have been supporting through the development of protocols for data interoperability. And big organizations like UNHCR are increasingly opening up their systems in different ways. But this is not just a tech issue. Getting the broader governance right is even more important. Indeed, ECHO is funding work focused on data governance. At Caribou Digital we know how effective this can be—we’ve helped UNDP develop a governance framework for DPI, which has been helpful for countries developing a strategic approach to digital transformation that serves the public interest.
So what should happen? Based on Caribou Digital’s research and efforts in this area, we see three areas where a push towards a DPI approach in the humanitarian sector could really make a difference. First, money matters, and donors have huge influence. So donors need to align on what digital infrastructure for the sector looks like and push for alignment, for example, by writing DPI into contracts. Second, how DPI is implemented matters. Coordination bodies like the UN’s OCHA should lead on defining governance and digital technology standards for the sector, providing leadership, guidance, and support. Finally, opening up systems matters. The organizations that actually deliver life-saving support need to make existing systems more open and interoperable to unlock the data that makes responding more efficient, as well as strengthen the capacity of especially local organizations to develop and use digital systems in ways that align with the humanitarian principles of dignity and protection.
Emrys Schoemaker, academic and consultant focussed on digital ID, risks and rights.
Photo by Marek Piwnicki
