The digital tools have rescued people in the COVID-19 lock downs like no other thing and the use the use of technology has demonstrated the potential of digital finance to provide relief for millions around the world.
A new UN report also says digital tools have supported businesses, protected jobs and livelihoods, and promise a transformational impact on sustainable development, and empower citizens, both as taxpayers and investors.
The report, “People’s Money: Harnessing Digitalization to Finance a Sustainable Future”, was released by the UN Secretary-General’s Task Force on Digital Finance on Wednesday.
Describing the the acceleration effect of the pandemic on digital finance, UN development chief Achim Steiner says “things that we anticipated would happen over the next few years, have happened in weeks.”
“The pandemic has allowed governments to see the importance of overcoming traditional limitations, and identifying and reaching the most vulnerable.”
He cites the example of digital cash transfers in Pakistan, saying the transfers have helped millions of people in Pakistan.
Similarly, schools, governments and parliaments have worked remotely through digital connections.
Pakistani children in a Sindh village, Image: Dan Casperz/ UK Department for International Development/Wikipedia
The development leader says the widespread adoption of smartphones, puts powerful digital tools in the hands of more than a billion people, allowing them to work, socialize, and manage their finances.
However, there is a need to remodel the financial system, to underscore the fact that the trillions of dollars’ worth of investment flowing around the world, ultimately come from ordinary people.
“Citizens are the owners of this wealth, which is made up of pensions, and savings. The Task Force was keen to bring back the notion that the citizen is at the center of the economy. Citizens need greater transparency, and to have a say over where their pension contributions go. And, as well as returns for investors, we also need to see public purpose benefits. Digital finance is a significant opportunity for citizens to re-engage, because this is a way to address major challenges, such as climate change,” he said according to UN News Center.
The Task Force comprises senior figures from the tech sector, financial institutions, governments, and UN bodies. It was set up by UN Secretary-General António Guterres in 2018 as part of the strategy to support financing for the 2030 Agenda, the UN’s blueprint for a better future, for people and the planet.
