The UK government has made much of the power of data and technology in domestic policy, but it’s global approach, in common with most other governments, is still fragmented, writes Claire Melamed. Ongoing reviews by the Foreign, Commonwealth and Development Office offer an opportunity for a more joined up diplomatic and development strategy in this sector, with benefits for the UK and for international partners.
Beneath the Labour government’s sober exterior beats a secret techno heart. The new Industrial Strategy, released in October 2024, was full of optimism about the ‘transformative power of data’ to accelerate economic growth. This was swiftly followed the same month by the Data (Use and Access) Bill, which aims to ‘unlock the secure and effective use of data in the public interest’. Ministers at the Foreign, Commonwealth and Development Office (FCDO) have been quick to emphasize their commitment to the data agenda too, with new Minister Annelise Dodds saying that she: “understands the importance of exploring ways to harness the Power of Data to promote growth in a more equal and sustainable world.”
The government has clearly been following the evidence, which shows that investments in data are some of the best available, with a rate of return averaging £32 for every pound invested.
The United Kingdom (UK) is not alone in its optimism about the potential for data to accelerate economic growth and improve service delivery. Governments around the world are focused on the same thing. The Dominican Republic is reforming a data law inherited from the colonial period to make it fit for the new era of digital and artificial intelligence (AI). In Ghana, by the end of this year, three quarters of all of the 28 Ministries, Departments and Agencies will have signed Memoranda of Understanding with the Ghana Statistical Service to share data. Both Ghana and the Dominican Republic, along with 14 other countries, are part of the ‘Power of Data initiative’ supported by the UK, which brings together governments, the UN and the World Bank to mobilise the power of data at scale through this kind of institutional and political commitment by governments, development partners and funders.
For all countries, getting the best out of data will also depend on good relationships with other governments and technology companies, plus an ability to shape the emerging landscape of global rules and norms. New global rules for data and technology are being written now, in the Europe Union, the United Nations (UN), the World Trade Organization, and a host of regional and bilateral agreements. These relationships will touch on trade, security and development interests, and shape how the costs and benefits, risks and rewards that inevitably come with change are distributed, both globally and nationally.
Despite progress on the internal front, many countries are not yet well set up to make the most of their external relationships in this area. Governments and multilateral agencies, including the UN, share the common challenge of integrating a new issue into existing institutions with established hierarchies, incentives and ways of working. In the worst case, this leads to internal competition for influence within and between departments, and confusion and frustration for international partners.
This is an area where some low- and middle-income countries are moving faster than their high-income counterparts. Kenya is the first country in Africa to appoint an Ambassador whose remit covers digital technology, AI and data. India’s agenda for their G20 presidency covered the importance of digital innovations for development, and the parallel need to strengthen data capacities and governance.
The UK has a chance to position itself as a leader in this area among high income countries through the three reviews that have been launched by Foreign Secretary David Lammy into different aspects of the UK’s external engagement. These cover global impact, how development and diplomacy work together, and economic diplomacy.
With relatively small changes driven by strong leadership at the political level, the UK could be working with other similarly minded governments to drive the global policy agenda on data and technology, bringing in the wealth of expertise from academia, the private sector, the law and the voluntary sector. At the moment, counterparts from low- and middle-income country governments often report having to engage with different people within Embassies and High Commissions, with the data, digital, AI, development and diplomatic portfolios frequently split and siloed.
As one senior African government official puts it: “My mandate in government covers our global engagement on data, AI and digital transformation, and the UK is an important partner. However engaging is time consuming and difficult, as there are many different points of contact both in the Embassy and in London, making it harder than it should be to develop common agendas, strategise, and deliver on impact together.”
As countries adapt their internal priorities and policies to the new technological environment, they also want different things from their development partners. The UK has a lot to build on here: FCDO runs a long standing and respected development program in the area of data and statistics, a major programme of partnerships in digital solutions for service delivery, and a partnership with Canada through the AI for Development Fund. Other government agencies such as the UK Space Agency, HM Revenue & Customs, and the Office of National Statistics also run international development programmes, and there is a huge amount of investment in data, digital and AI through sectoral programmes such as health, education and climate.
However, in common with many other donor countries, there is a risk that with all this activity happening in silos, the total is less than the sum of its parts. Some development programmes have been slow to respond to the changed reality – for example, insisting on prioritising expensive and slow household survey programmes as the main method of data collection, where countries want to focus on the possibilities of using the data that runs through new digital systems. A modern development partner needs to be responsive and adaptive, and not allow internal interests to supersede the needs of partner countries.
Through the reviews, the UK has an opportunity to show what genuine partnership looks like in this sector by increasing coherence, demonstrating the potential to reduce the risk of duplication and increase learning across programmes, and drive the scalability and replication of successful approaches.
The good news is that this is relatively easily fixed. The Labour government has been willing to act quickly to strengthen its reach on key issues – as evidenced by the appointment of two new envoys for climate and nature ahead of key global meetings in the last few months. Taking a similarly ambitious and proactive approach to data and technology would require a combination of political leadership, investment in expertise and the willingness to support institutional adaption. Doing so would align the government’s external strategy and commitment to be a good global partner with its ambitions to reform how data and technology support the UK’s domestic growth agenda and the rest of the government’s missions.
The UK has a strong reputation both as a development partner and as a champion of progressive causes in the international system. The new government has come in with positive and welcome rhetoric about rebooting relationships, striving for more genuine partnerships and forging new alliances with the middle-income countries who are increasingly the new power-brokers in international forums. The world of data and technology offers the perfect opportunity to make good on this ambition.
Image: The Foreign and Commonwealth Office. By Adrian Pingstone – Own work, Public Domain, Wikimedia: https://commons.wikimedia.org/w/index.php?curid=358146
The views and opinions expressed in this post are those of the author(s) and not necessarily those of the Bennett Institute for Public Policy.
