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Smart Bangladesh Vision 2041

Inclusive Digital Transformation to Build a Developed and Prosperous Country by 2041

Smart Bangladesh Vision 2041 is about more than a futuristic Bangladesh, more than 5G internet, more than 100% smartphone penetration, more than 100% high-speed internet penetration, more than going cashless.

Smart Bangladesh is about being inclusive, about the people, the citizens of Bangladesh. Built on the 4 pillars of Smart Citizens, Smart Government, Smart Economy and Smart Society, it is about bridging the digital divide by innovating and scaling sustainable digital solutions that all citizens, regardless of their socio-economic background, all businesses, regardless of their size, can benefit from. Building on the launch pad created by Digital Bangladesh, Smart Bangladesh is the next major step towards realizing Bangabandhu’s dream of Shonar Bangladesh, a Golden Bangladesh.

Our Initiatives

Smart Citizens and Smart Government
Smart Citizens and Smart Government
Smart Citizens and Smart Government

Digital Service Design Lab: Accelerating the Digitization of Govt. Services

a2i’s Digital Service Design Lab (DSDL) organizes workshops that bring together civil servants, ordinary citizens, local technology companies and international experts to visualize and analyze manual services end-to-end, simplify them by eliminating redundant steps required of citizens, design the digital incarnation of the simplified services, prepare budgets and implementation plans. The workshop ends with the secretary of the relevant ministry or departmental head responsible for a service approving the plan for execution followed by nationwide implementation. However, the DSDL team continues to interface between the ministry and the tech company that is awarded the final contract, for as long as necessary.

The uniqueness of this methodology is that both service recipients (citizens) and service providers (concerned ministries) are involved in the digital service designing process which not only caters to the requirements of both parties but ensures ownership of the concerned ministry as its officials are directly involved in the process.

Moreover, participating in the workshops, interacting with citizens and ministries at the design stage has contributed immensely to developing and maturing the local IT industry’s capacity to develop citizen-centric digital government services. To the extent that, Bangladeshi IT companies are now also working internationally, for example in Fiji and the Philippines, providing e-Government solutions.

 

MyGov: One Platform, Multiple Solutions

MyGov is a single, central platform that not only brings the digital services from all ministries onto one app, but also features all auxiliary services such as online payments.

MyGov allows citizens to look for service applications and information regarding services. It allows users to complete service applications, know the status of service delivery as well as make necessary payments. ‘333’, the National Service Access Helpline, is also integrated within the app. This helps users without internet access get information and request services and can even be used to locate the nearest Digital Centre.

 

4IR

Over the next 20 years, Bangladesh — like many other countries — faces some very big challenges as the Fourth Industrial Revolution (4IR) and other trends, such as the automation, artificial intelligence, and shift to a circular economy, threaten existing jobs in key industries such as garments and textiles. Some of these challenges may be particularly acute. A recent analysis suggested that 47% of the jobs in Bangladesh may be at risk by 2041 in 5 sectors — including 60% of jobs in garments which currently represents 81% of exports.

With support from a2i, the Cabinet Division of the Government of Bangladesh has undertaken a strategic initiative to create a shared, living, national system for responding to turn the challenges posed by 4IR into opportunities by bringing together public-private sector, academia, and development partners with accurate understanding of the current facts, critical future trends and guidance on how to respond.

The 5 main building blocks for the system include:

 

  • REAL TIME DATA Comprehensive and curated real-time data on current patterns — the state of jobs demand, what skills are being looked for in jobs, pay levels, ideally to be easily analysed by geography and sector.

 

  • FORECASTS assessments of job vulnerability at individual, job levels, drawing on analysis that breaks jobs down into bundles of competences. These become most useful if they can be shared in easily accessible ways with workers, students, schoolchildren, parents and educators.

 

  • OPPORTUNITIES Comparable analysis of emerging opportunities, including growing jobs and potential fields for new jobs — so as to feed into the design of training and other systems, as well as business strategies.

 

  • EXPERIMENTATION AND ADAPTATION Sector strategies for adaptation, involving the key industry bodies, and combining support for adoption of new technologies, new business methods and models, and new skills. To arrive at the right strategies, a fair bit of experimentation is necessary and must be encouraged.

 

  • POLICY National policy strategies involving key bodies such as Ministries, NSDA, universities, polytechnics, schools, companies, industry associations and civil society organizations, to ensure that the powers of the state are aligned with future needs.

 

a2i has already facilitated 50 4IR pilot projects in 13 ministries, 20 industries, and 2 public universities in partnership with Singapore Polytechnic and Temasek Foundation.

 

Going forward:

  • a2i’s iLab will catalyze the development and commercialization of homegrown tools, technologies and solutions. 
    1. All line ministries will undertake experimentation with at least one project associated with 4lR (new technology, re-skilling/upskilling) which can be assessed for scale up.
    2. Provide 4IR matching fund/innovation fund for prototyping.
    3. Arrange to showcase the 4IR projects/initiatives/prototypes resulting from the experiments. 
    4. Ministries and associations related to Skills and Employment will be onboarded for reskilling and upskilling. The Bangladesh Technical Education Board (BTEB) will take the lead to develop 4IR-based curriculum. 
    5. 4IR-based soft skills will be included in all tiers of education by the National Curriculum and Textbook Board (NCTB) with support from a2i.
  • a2i’s Human Development Media will launch a national campaign on 4IR to raise mass awareness.
  • All 4IR projects will be coordinated by a2i’s National Intelligence for Skills, Education, Employment, and Entrepreneurship (NISE) and monitored by the Cabinet Division.
Smart Economy and Smart Society
Smart Economy and Smart Society
Smart Economy and Smart Society

ekShop: Digital Livelihoods for the Youth and Refugees

On her 18th birthday, Rity got a sewing machine as a birthday gift from her aunt. She was filled with joy and excitement about the possibility of realizing her dream of becoming a fashion designer and supporting her family.

She worked day and night to create the perfect dress. Finally, when it was ready, Rity and her mom took it to the nearby bazaar. Alas, the customers there couldn’t offer her a fair price! They tried again to a nearby town. but to no avail. Rity was very upset.

At that point, Mitu, a Digital Centre Entrepreneur from Rity’s village came with a different idea.
Mitu snapped a picture of the dress. Uploaded an advertisement at major e-commerce marketplaces in Bangladesh. Enabling customers in the capital Dhaka to see Rity’s dress & buy it.

This is not just the story of Rity. This is the story of millions of rural youth, artisans and farmers in Bangladesh unable to secure a fair price for their products. And this is what inspired a2i, the flagship innovation and digital transformation program of the Government of Bangladesh and UNDP to establish ekShop.

ekShop is a unique assisted rural eCommerce model that integrates the countrywide physical network of nearly 7,000 Digital Centres. Through ekShop, Digital center entrepreneurs assist rural youth, artisans and farmers to:
Reach new, urban customers directly, bypassing multiple layers of traditional, high-cost intermediaries;
Secure a ‘fair price’ for their produce;
Open virtual shops to market and sell their products online;
Receive assistance from the Digital Centre Entrepreneurs on advertisement and promotion;
Connect and negotiate cheaper prices with logistics partners; and
Receive and make payments digitally.

To provide countrywide logistic network, ekShop has already engaged 16 local and 4 international e-commerce companies. Enabling nearly one million entrepreneurs to join the platform. To date 5 million transactions valuing $10 million has taken place.

In collaboration with the UNDP SDG Impact Accelerator, a2i is exploring ways to leverage ekShop to help the 3.5 million Syrian refugees in Turkey to secure digital livelihoods.

UNDP’s Crisis Bureau is facilitating replication of the ekShop model in Colombia, Uganda, Jordan and other countries.

As the flagship digital transformation program of the Bangladesh government, a2i strives to empower thousands of youth, entrepreneurs like Rity to realize their dreams and ensure no one is left behind.

For more, visit – https://www.ekshop.gov.bd/

 

iLab: Incubating and Scaling-up Social Innovations

Like a self-fulfilling prophecy, by constantly depicting government as boring, unimaginative, bureaucratic leviathans, we have boxed them into a corner where we struggle to think of them as capable of being anything else. In fact, historically, it has been the public, rather than the private sector, that has actually been the vanguard of accelerating revolutionary innovations and transforming the world.

a2i’s iLab incubates and accelerates innovations to tackle some of the most pressing societal and environmental problems that Bangladesh faces today by leveraging technology; particularly, electro-mechanical devices, Internet of Things and renewable energy.

It reaches out to individual innovators, students and startups through innovation and challenge competitions. Promising innovators receive seed funding from an innovation fund, access to a Maker Lab, and mentorship by experts from both industry and academia.

The incubation process also features guidance for young innovators to turn prototypes into practical and viable solutions. “Prototype to product” development is iLab’s last but most significant area of support before scale-up through commercialization. Innovators are further supported with copyright and patent filing to protect their intellectual property.

For more, Visit – https://ilab.gov.bd

 

Digital transformation of CMSME sector

While digitisation, particularly the electronic delivery of public services and digital payments, has undoubtedly been a great equaliser across the board, there are some important segments of the Bangladesh economy that remain underdeveloped and largely excluded.

This is the issue at hand when thinking about Bangladesh’s cottage, micro, small and medium enterprises (CMSME) and bringing a greater proportion of the sector under digitisation in the spirit of inclusive innovation.

The overarching incentive for financial service providers is one of cost-cutting, namely to bring down the cost of lending to CMSMEs, which can be achieved through digital inclusion. To this effect, there are six key points:

1. Identity
Just as we have created a digital identity for individuals using eKYC, we need to create digital identities for our CMSMEs. This is the obvious first point, for any entity that wishes to be included in the digital framework, it must have a digital identity.
How to go about doing this is another matter. If we are to take trade licenses of individual organisations as their identity, then obtaining separate trade licenses will be extremely difficult. a2i however, is working on a centralised trade license system, and this could be a solution to simplifying the process.

2. Linked Transaction History
A CMSME may be conducting transactions, and digital transactions at that, through an MFS, but that does not provide them with a transaction history that is directly related to the entity.
The app TallyKhata is a good example of how this can be achieved. The existence of linked transaction history for a CMSME entity directly correlates with the next point. a2i-ekShop’s ”Bazar Bondhu” network in 4 districts is another example where an accounting system-enabled e-commerce link is pushing financial inclusion and economic resilience together in the micro-merchant segments.

3. Credit Worthiness Criteria
The only way to reduce the cost of providing credit to a CMSME entity is to figure out the creditworthiness of the entity. There are some important caveats to this issue. Firstly, this creditworthiness has to be achieved electronically; it would not be feasible to sit and interview and go over documentation of specific entities. This is where the eKYC and the linked transaction history come in to help provide a low-cost, electronic creditworthiness mechanism.
Second, with the millions of entities under the CMSME umbrella, this as an initiative must start small, with collaborative experimentation playing a key role in establishing this creditworthiness in CMSMEs, where MFS providers and traditional banks can all play a part, with support from a2i.

4. Awareness and Skills
It is vital for any entity to be aware of the precise benefits and potential drawbacks of being digitally included. For example, CMSMEs suddenly transitioning from paper transactions to a digital system may be slapped with a hefty VAT. We thus need to be mindful of the need to help CMSMEs navigate such potential issues.
Specific skills are also required to be instilled into the personnel of these enterprises. For example, if TallyKhata is the tool provided, then the skills developed must be complementary to that. For such a novel idea, with novel skill development required, a precise understanding of the context will be critical.

5. Safety Framework
This point harkens back to the original issue of transitioning to digital, namely, what are the issues a CMSME entity could face. Right off the bat, the formalities associated with the newer system will be difficult to adapt to.
However, the bigger safety concerns are common to the digital space — for example, data privacy and the risk of digital identity theft. Therefore, there is also a need for specific safety frameworks focused on the CMSMEs.

6. Partnership Framework
For all of the ideas presented above, there is a clear understanding that none of it is possible in isolation, and that there need to be multiple moving parts to achieve the desired outcomes. Just a bank, or MFS, or even the government — any one sector in isolation cannot do this. This has to be a collaborative effort, of working together.

What this means is a digital partnership framework — one built on agreements and APIs for electronic handshakes so that there is little need for signing multiple MoUs. The key here is to operate without losing business incentives and proprietary advantage for businesses, but keeping in mind that the quick electronic handshakes will be key to reducing the cost of doing business for the providers.
a2i is keen to support and accelerate the development of such a framework, and it would be central to the success of future digitisation initiatives concerning CMSMEs.

We cannot forget the demand side
While the above-mentioned points talk about the providers’ actions to help facilitate the smooth transitioning to digital for CMSMEs, as alluded to at the beginning of the post, all actions are irrelevant if there is little incentive for the CMSMEs themselves to switch to digital. This is true for the CMSMEs’ customers as well, who will also need to be incentivised to switch to digital payments from cash. Ultimately, it is only when all sides are in agreement and are sufficiently incentivised to accept changes will the process of bringing CMSMEs under a digital financial framework be possible.

Publications

RAPID DIGITIZATION OPERATIONS MANUAL

RAPID DIGITIZATION OPERATIONS MANUAL

THE a2i JOURNEY

THE a2i JOURNEY