Even though Nepal has 125 percent telephonic penetration, and internet penetration has reached 132 percent, broadband internet still remains unaffordable
The COVID-19 pandemic has accelerated an already-ongoing process of massive digitalization in economic production and services together with the development of digital transformation, migration to digital platforms, and a surge in demand for digital services. Artificial Intelligence (AI) and robotics are getting, for the first time, autonomous and self-learning, with human-like capabilities. The discussion about digitalisation and the future of work has become even more imperative.
Automation is the use of technology to perform tasks where human input is minimised. This includes enterprise applications such as business process automation (BPA), IT automation, network automation, automating integration between systems, industrial automation such as robotics, and consumer applications such as home automation. By 2025, global digital transformation investment is predicted to reach US $2.8 trillion, up from US $1.8 trillion in 2022.As per Nepal Rastra Bank report, Foreign Direct Investment in Nepal in Information and Communication Technology sector has reached Rs. 10,858 million, comprising 4.8 percent of the total FDI stock.
Digital Nepal Framework 2019 is a broad outset of the Government of Nepal which deliberates about digital government. It was made into one blueprint as eight sectors and 80 digital initiatives to guide Nepal as it embarks on its digital transformation journey.
The 80 digital initiatives aim to propel socio-economic growth in Nepal by addressing crucial challenges while unlocking the growth potential in each of the eight key sectors, that is, Digital foundation, Agriculture, Health, Education, Energy, Tourism, Finance and Urban infrastructure.
The methodology gives the path to implement the vision of integrating ICT into Nepal's development. Digital Nepalsees our businesses, people and the government using digital technology to drive innovation, increase productivity and enrich the quality of life of the people.
The early successful history of the Internet and mobile provides the movement for Nepal to influence the potential of digital technologies to drive accelerated growth these days. Digital services are being provided by ride-sharing applications such as Pathao, Tootle, and inDrive; payment platforms such as connect IPS, eSewa, IME pay, Khalti, Nameste pay, or online shopping apps and websites such as Muncha. com and Daraz. The financial sector is also offering reliable web and mobile-based banking services, which is a leapfrog toward a modernizing digital financial market. The volume of digital transactions has increased together with the development of digital platforms and other advanced technology.
However, most of the public services are out of the preview of digital technology.
Some of them use technology partially, and most of them don't have access to the digital platform.
The citizen app (Nagarik app) introduced by the government has not been implemented for public service delivery rather than being used as a record keeper only. Until and unless government services are delivered to the public through digital means, the digital transformation will not take a seamless shape.
Digital transformation is not an easy journey. Even though Nepal has 125 percent telephonic penetration and internet penetration has reached 132 percent as of April 2023, broadband internet and smartphones still remain unaf-fordable for the low-income people. Likewise, international bandwidth, a key factor for the internet, is especially expensive in landlocked countries such as Nepal.
Inadequate e-commerce sites and lack of reliable supply chain throughout the country are some other important factors challenging the efficient and voluminous use of e-commerce activities. Various initiatives underway for the collection of public data and service delivery by local government, different government departments, and ministries have helped digitalization to some extent, but this has also resulted in fragmented outcomes due to decentralized initiatives and uncoordinated implementation. The digital divide due to diverged broadband Internet speed and availability, level of IT literacy and digital skill, cyber security and cybercrimes are some other significant growing concerns of the e-community.
Government services provided by using new technologies such as computing, mobile devices, social media, internet and cloud computing – referred to as digital governance – provide big opportunities to societies for economic development. According to Digital Nepal Framework, governments are typically one of the largest technology users and consequently able to deliver public services digitally. Governance in Nepal can build upon digital transformation of a number of on-going initiatives such as government public key infrastructure, national ID, driving license, vital registration of citizens, land registration processes, automation of passport, voting cards, immigration records, among others, and interoperability of all digital services. E-governance, digitalisation of public services and digital skills agenda should be a key part of the government's national strategies.
The education sector can play a key role in developing digital skills and literacy by including them in the curriculums from primary school onwards. Developing robust legal and regulatory frameworks for data protection and cybersecurity is essential to build digital confidence and trust.
Establishing the Internet as an essential service, improving broadband network availability for new technology, government facilitation for subsidized international bandwidth, adopting next-generation advanced technologies, ensuring high-speed Internet connectivity, and government policies that encourage innovation in the digital financial ecosystem are some other important factors to be considered for efficient transformation of governance and economy through digital technology.
Acharya is the former Managing Director of Nepal Telecom
A version of this article appears in the print on August 24, 2023, of The Himalayan Times.
