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Working Paper 97 | September 2025

Name of the Asset | The Impact of Digital Public Infrastructure (DPI) Interventions on Socioeconomic and Development Outcomes in Bangladesh  

Type of Asset Research

Date September 2025

DOI 10.69814/wp/202597


SUMMARY

DPI refers to the foundational digital systems—such as digital ID, digital payments, and data exchange platforms—that support public service delivery and governance. The study aims to assess the current state of DPI in Bangladesh, evaluate its data ecosystem, analyse its socioeconomic impacts, identify associated risks, and provide strategic policy recommendations. Using a mixed-methods approach, the study combines econometric analysis with expert insights from government agencies and stakeholders. Propensity Score Matching (PSM) analysis reveals those individuals with access to DPI score significantly higher on a socioeconomic status index, confirming a positive causal relationship. A separate analysis using satellite nightlight data further supports this, showing higher economic activity in regions with greater DPI access. On the global scale, the study finds that DPI contributes significantly to GDP growth across countries, including Bangladesh. Bangladesh has made significant strides in DPI through initiatives such as the National ID system and over 9,000 Digital Centres that integrate physical and digital access points. These “phygital” infrastructures have saved citizens time and money, improved transparency, and enhanced access to services—particularly for marginalized groups like rural women. However, there are still critical challenges, including fragmented and inaccessible data systems, low digital literacy, cybersecurity threats, and the risk of exacerbating existing inequalities if DPI is not implemented inclusively. To address these issues, the report recommends strengthening the supporting infrastructure, enhancing data governance with comprehensive legal frameworks, developing unified digital service portals, improving digital financial systems, and expanding digital literacy programs. Furthermore, it stresses the importance of safeguarding citizen data through robust cybersecurity systems and encouraging innovation via public-private partnerships. The report concludes that, with careful planning and inclusive policy frameworks, Bangladesh can harness DPI to foster equitable development, efficient governance, and sustainable economic growth. 

AUTHOR  |  Selim Raihan, Lubaba Mahjabin Prima, Takrem Ferdous Surid, and Eshrat Sharmin

COUNTRY AND/OR REGION | Bangladesh

NAME OF THE PROGRAMME |  The Socioeconomic Impact of Digital Public Infrastructure

FUNDER | Co-Develop
 
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