// . //  Insights //  The Next Evolution Of Government In A Digital Era

Governments around the world are trying to keep pace with the constant changes in society being driven by new digital tools. In many cases, they are playing catch up, particularly in service delivery and the organization of public administration.

As governments adapt to the digital age, they face challenges related to digital inequalities, regulatory control, cybersecurity, and national sovereignty. To address these challenges, governments must reassess their role vis-à-vis public transactions (between individuals, businesses, or organizations) in the digital spaces to ensure fair access, equal opportunity and safety and security for all. This report explores three possible trajectories and two digital platform models that will shape the next evolution of government.

Key drivers of government evolution in the digital age

Over the past decade, governments have adopted digitalization at a large scale. Their role is evolving from a traditional service provider of last resort to an active enabler of connectivity.

Exhibit 1: Evolution of government-citizen interaction
Evolution of governement-citizen interaction

However, in 2023, most global citizens purchase or consume products and services on digital platforms from which government is absent. Whether in Asia, North America, Europe, Africa, or the Middle East, citizens conduct most of their digital affairs via privately owned platforms such as Alibaba, Amazon, Google, X, or Facebook. Regarding this evolution, there is a growing concern that governments are relinquishing their role in managing digital spaces, leading to a reliance on private companies to safeguard citizens’ rights and ensure equitable access.

Exhibit 2: Most visited global online marketplaces
Monthly million visits, 2023

This increased concentration of social and economic activities into a small number of commercial digital platforms, as well as critical pain points such as digital inequalities, cybersecurity threats, and national sovereignty have made it imperative for government to expand and evolve its structure to mimic those of digital platforms.

How the next evolution of government can be configured

Governments are evolving in different directions depending on their political and economic environments. Nevertheless, we envision three possible trajectories taking root in the coming years.

The government assumes complete ownership and operational responsibility for digital platforms. It not only initiates their development but also oversees their ongoing maintenance and governance. This approach provides the government with a high level of control over the digital space, ensuring a centralized authority. However, it may come at the cost of increased financial expenditure and potential inefficiencies due to the bureaucratic nature of governmental processes.

The Conductor sees the government taking on the role of an orchestrator that facilitates and regulates transactions that occur on digital platforms operated by the private sector. By leveraging the expertise and innovation of private entities, the government aims to enhance efficiency and service quality. This model allows for a balance between public oversight and private sector dynamism, enabling the government to shape the digital landscape without directly owning and operating the platforms.

The government acts as a facilitator that brings together various stakeholders to collaboratively own and operate digital platforms. This approach aims to foster a spirit of cooperation among diverse entities, including the public and private sectors. By encouraging joint ownership and cooperation, the government seeks to ensure that digital platforms are designed, implemented, and maintained in a manner that aligns with the broader public interest. The focus is on promoting collaboration, innovation, and responsiveness to the needs of both the government and the public.

The government assumes complete ownership and operational responsibility for digital platforms. It not only initiates their development but also oversees their ongoing maintenance and governance. This approach provides the government with a high level of control over the digital space, ensuring a centralized authority. However, it may come at the cost of increased financial expenditure and potential inefficiencies due to the bureaucratic nature of governmental processes.

The Conductor sees the government taking on the role of an orchestrator that facilitates and regulates transactions that occur on digital platforms operated by the private sector. By leveraging the expertise and innovation of private entities, the government aims to enhance efficiency and service quality. This model allows for a balance between public oversight and private sector dynamism, enabling the government to shape the digital landscape without directly owning and operating the platforms.

The government acts as a facilitator that brings together various stakeholders to collaboratively own and operate digital platforms. This approach aims to foster a spirit of cooperation among diverse entities, including the public and private sectors. By encouraging joint ownership and cooperation, the government seeks to ensure that digital platforms are designed, implemented, and maintained in a manner that aligns with the broader public interest. The focus is on promoting collaboration, innovation, and responsiveness to the needs of both the government and the public.

Digital platform models for government evolution

These trajectories can be achieved through two digital platform models that differ in terms of ownership and control, data security and privacy, and services offered:

1. Hegemonic model — Fully government-owned digital platform

A digital platform with full government ownership and oversight represents a centralized approach to managing and delivering public services online. Under this model, the government maintains complete ownership and control over the platform, ensuring a unified and cohesive strategy in its development, deployment, and management.

2. Archipelago model — Segmented digital platforms with semi-ownership

This is a segmented digital platform with semi-government ownership, which can be likened to an archipelago model. It operates under a structure where the government shares ownership and control with other entities, such as private companies or nongovernmental organizations.

A hybrid model that incorporates elements of both centralized and segmented digital platform approaches is the most likely to work. Such a hybrid model will need a design approach that balances the imperatives of efficiency and security with the aim for innovation and flexibility.

But regardless of which specific model is adopted, the next evolution of government will need to take on key roles in the provision of the following rules of engagement with the digital space: agility, inclusion, transparency, accountability, security, privacy, and innovation. By adhering to these principles, the next evolution of government will help contribute to the creation of a more efficient, effective, and equitable society.

Written in collaboration with the World Governments Summit.