From connectivity to competitiveness

The “Digital Bangladesh” slogan, which emerged in 2009, echoed a collective dream of embracing technology across all aspects of life. The dream had a modest yet revolutionary vision: to “connect people and enable digital inclusion to reach out to all Bangladeshis.” In its first stage, it has achieved this goal phenomenally. “Mobile penetration has crossed over 95 per cent. Broadband has penetrated beyond urban areas. E-services have begun even in government institutions. Digital literacy has begun to spread.” The “click and pay” experience is a reality for a generation that had to spend hours to avail themselves of a utility bill and/or a passport. However, history is not a reward for those who rest on their laurels in the middle of a journey. The world Bangladesh is confronting today is more complex and competitive than it had envisioned when it decided to digitalise itself. The world is undergoing a radical shift driven by AI, blockchain technology, cloud computing and the platform economy. The nation is no longer required to connect its people but to make its people competitive. In other words, it needs to convert a digital connection into a digital advantage. That is Digital Bangladesh 2.0. It is a shift in strategy for a nation to shift from users to producers.

The New Imperatives of the Digital Age: The second stage of the digital journey in Bangladesh is characterised by a different logic and a more ambitious vision. The earlier journey in Bangladesh was primarily about infrastructure and inclusion – enabling people to have internet access at home and the presence of mobile banking and e-government services. The new vision is to infuse digital intelligence in all its layers.

The essence of this shift centers on the imperative of competitiveness. The world is undergoing a change in its economy driven by big data, AI services and cloud computing. As a country that needs to survive in this new economy, Bangladesh needs to transform from a technology consumer to a producer. The youth and innovative spirit of Bangladesh provide a platform for this shift. However, this will depend on investments in human resources and infrastructure.

But it is equally important to speak about platform governance, not just online governance. The old e-government strategy focused on digitising paperwork. The new digital governance vision imagines a state that is a network of platform-based information systems. In this vision, technology is a deep-enabling factor rather than a surface-level one.

The second fundamental imperative is financial transformation. Although Bangladesh’s success in m-money services like bKash and Nagad has won many accolades, it is essential to build on this strength and develop a more integrated digital finance ecosystem with interoperable payments, an instant payment system and more.

Education and human capital system must undergo a shift as well. While a digitally networked society is important, a digitally skilled society is essential. The education system at all levels needs to transform itself so that it imparts not only literacy but also coding fluency, data analysis fluency, AI fluency and design thinking fluency. Otherwise, infrastructure development will not ensure competitiveness.

Fourth and last, cybersecurity and data governance will have to establish public trust. As more and more critical information is placed online, citizens will not accept digital systems until they can trust that all information is secure. The establishment of that trust is not a tangential detail in this project. Instead, it is fundamentally central to all that follows.

Governance Re-Imagined: The government of Bangladesh has already prepared a comprehensive National Digital Transformation Strategy (2025-2030) draft to digitally transform more than 800 government services and develop a unified architecture for data and governance. The strategy is to create a common platform in Bangladesh, known as the Bangladesh National Digital Architecture (BNDA) and the National Data Exchange (NDX), to connect isolated databases and ensure seamless service delivery. This strategy will deliver efficient, transparent governance.

The role of AI will be pivotal to this new system of governance. Just think of feedback mechanisms where AI can quickly analyse citizen complaints. Or predictive systems that can foretell where corruption is likely to occur. Or an AI-based analysis that can help inform policymaking, not just based on bureaucratic intuition. AI can sharply improve administrative response and cause little human resistance.

Similarly revolutionary is its application in transparency. The blockchain can ensure that land registries are secure, that supply chains and expenditures are legitimate and that medical information is recorded with absolute immutability. Making transactions transparent increases transparency and reduces corruption. There have already been some pilots testing blockchain in healthcare and logistics.

There is also a cloud-native government infrastructure emerging as a key enabler. With cloud computing, governments can share digital resources and benefit from cost reduction and enhanced security. However, a cloud computing strategy needs to apply robust principles of information governance to avert abuse and breaches.

But innovations are challenged. Institutional resistance, silos within government offices and scattered databases remain significant hurdles. The absence of coordination and a culture of accountability can make technology a mere cover for an inefficient system. To effect meaningful change, the system of governance has to transform from a hierarchical structure to a digital, collaborative framework where information can move easily between agencies and decisions are made based on intelligence, not ignorance.

If it is done correctly, the payoff is enormous: faster, more affordable services for all citizens, transparent procurement procedures, more targeted and efficient subsidy distribution, evidence-based policymaking, and, eventually, rebuilding trust in government. Technology-based re-imagining of governance can redefine citizenship and transform the state from a hindrance to an enabler.

Digital Finance and Fintech: One area that is more indicative of Bangladesh’s success in its digital journey than others is its finance industry. It has not even been a decade since mobile banking services have transferred financial power to millions of people who never had to step into a banking hall. The mobile has thus turned into a purse.

However, the next level is not about growing more users but is all about creating a comprehensive ecosystem for digital finance. The Bangladesh Bank Interoperable Instant Payment System (IIPS) between banks, fintech companies, and mobile wallets is a critical step in this regard. Cross-provider real-time transfer services can boost trade and micro-enterprises and decrease reliance on cash.

The fintech revolution needs to shift its focus to more advanced services, such as credit scoring and micro-lending, beyond basic transaction services. Banks and financial institutions can develop customised financial services for small businesses and lower-income individuals through AI and open APIs.

The area where blockchain technology has shown promise is financial integrity. The development of ‘smart’ contracts will enable greater efficiency in trade finance and reduce fraud in public procurement. The role of distributed ledgers will strengthen security and transparency in banking while facilitating worldwide fintech collaborations.

However, with opportunity comes risk. The rising dangers include cyber-fraud, identity crimes, algorithmic bias and money laundering. Regulation needs to keep abreast of technological advancements, not stifle them, but provide a resilient ecosystem for digital KYC norms, data regulations, and fintech testing zones.

If Bangladesh can implement these factors effectively, digital finance can become a strength for its economy. Together, it can improve productivity, provide more credits to SMEs, create more employment opportunities in fintech services, and enable Bangladesh to emerge as a meaningful player in digital finance export services within its own region. Finance will not only connect people but will empower them.

Human Capital for the Fourth Industrial Revolution: No transformation can outpace the people who must carry it forward. The foundation of Digital Bangladesh 2.0 will rest not on machines or codes but on minds. Education, therefore, must be re-engineered to produce digital citizens rather than analog graduates.

In its simplest form, digital literacy is still a key consideration. In this regard, digital equity still needs to address rural communities and women. There is a need to invest in rural broadband infrastructure and provide digital centers in rural areas. Moreover, digital literacy skills are required in school curricula. But beyond literacy is a need for more advanced digital skillscoding, big data analysis, network security, systems design and algorithmic thinking. There is a need for institutions of higher learning to develop new disciplines in fields like AI development and big data science. Vocational institutions can provide courses for those who want to pursue digital skills as a trade.

The pandemic has revealed how well and how quickly technology can improve teaching and learning. There is no need for this to end. Online learning sessions and certifications in virtual classrooms can provide a level playing field for those in distant and less-privileged regions. Even blockchain-based certifications like “ShikkhaChain” can enhance transparency in academic credentials.

Equally important is linking education to employment. Skills must translate into livelihoods. Partnerships among universities, industries, and government can ensure that curricula reflect real-world demands. Internship pipelines, innovation hubs, and startup accelerators can help graduates become job creators rather than job seekers.

Inclusivity is a moral and economic imperative. If society leaves half of its population (women) behind in the digital race, its productivity will remain halfway. Gender-sensitive policies and scholarships for women in science and technology, along with a secure online environment, are a mandate for balanced growth.

In the end, a competitiveness education has to balance technological capability with ethical sensibility, creativity and flexibility that will differentiate human intelligence from artificial intelligence in the coming decades.

Cybersecurity, Data Governance and The Architecture of Trust: The more digital transformation advances, the greater the risk escalates. The same technology that brings people together and enables possibilities can simultaneously expose and imperil. Cybersecurity is not peripheral to Digital Bangladesh 2.0 but its bedrock.

The government’s strategy aims to train tens of thousands of cybersecurity professionals by 2030, recognising that a skilled defense workforce is the first line of defense against cybercrime. Yet beyond the workforce, the nation needs a comprehensive cyber-resilience framework that includes regular audits, crisis-response mechanisms and real-time threat intelligence.

Equally critical is data governance. As more public and private services depend on digital data, the questions of ownership, consent, and accountability become central. Bangladesh’s proposed Personal Data Protection Act must enshrine citizens’ rights to privacy and clearly define obligations for both the government and businesses. An independent Data and AI Authority, as envisioned in policy drafts, could oversee the ethical use of emerging technologies and ensure compliance with global standards.

Cloud computing introduces another layer of complexity. While it enables scalability and cost efficiency, it also concentrates on data risks. Cloud policy should therefore include data-residency requirements, encryption mandates and standards for vendor accountability.

However, one of the most intangible and essential aspects of cybersecurity is trust. The citizenry will only adopt digital technology if they can trust that their information will not be exploited and that, when abuse occurs, they will have recourse. The development of trust will require transparency within government and continuous civic education campaigns on digital rights and duties.

In the absence of this protective mechanism, even the most sophisticated digital technology is bound to fail. With this in place, Bangladesh can assure that security and innovations are not enemies but partners in development.

From Connectivity to Competitiveness: To ensure that Bangladesh can transform its connectiveness into competitiveness, a unified national vision is required that combines technology and human resources. The first instrument is institutional integration in Bangladesh through the National Digital Architecture and the National Data Exchange. Once this is in place in its totality, government departments and concerned bodies can communicate in a streamlined fashion.

The second lever is regulatory modernisation. Outdated laws cannot govern new technologies. The government must accelerate the passage of data protection, AI ethics, and cybersecurity legislation. It should also establish agile regulatory sandboxes that allow fintech and blockchain innovators to experiment safely under supervision.

The third lever is human-capital upgrading. Schools and universities should embed digital skills into their core curriculum, while industry-academia partnerships should translate these skills into employment. Incentives for research and innovation must reward problem-solving rather than rote learning.

Fourth, a growth opportunity is required in the fintech and digital finance ecosystem. Areas that can achieve enhanced efficiency through technological innovation include real-time payments, blockchain-based trade finance and AI-driven microcredit. The country can earn much-needed foreign currency through exporting this tech.

The fifth lever concerns sector-driven innovations. The agricultural sector can benefit from AI-driven irrigation and yield predictive analysis; the education sector can adopt AI-based tutoring and blockchain-based certification; and health services can opt for telemedicine and cloud-based health storage. The manufacturing sector can benefit from automation in the RMG industry.

In conclusion, a trust framework in cyberspace is imperative and will ensure that a strategy is successful in its endeavors. Moreover, trust in cyberspace will be considered a currency in a new economy and will guide those possessed of it.

The Opportunities Before Us: However, if the blueprint for Digital Bangladesh 2.0 is appropriately implemented, the possibilities are endless. The country can skip through many levels of its industrial development and position itself in worldwide value chains as a digital innovation hub. The government can increase its value of tech exports from a few hundred million dollars to a few billion dollars through software development, fintech services, and AI-enabled services.

Small and medium enterprises the backbone of economies will have access to lower borrowing costs and electronic commerce services that will help them compete in a global market. There will be transparent, efficient governance that reduces corruption and instills trust in institutions.

The area where a profound shift will occur is in employment. Youth with digital power will have opportunities for freelance work worldwide and will make valuable contributions to global ventures through collaborative project development. Digital inclusion will thus transform rural Bangladesh into ventures and initiatives that bridge the productivity gap between rural and urban areas through digital opportunities such as e-learning and rural healthcare.

In sum, Digital Bangladesh 2.0 promises not only economic dividends but a social renaissance a nation more confident, transparent and equitable.

Risks and Realities: Every revolution carries its countercurrents. The shift to a competitive digital economy will test Bangladesh’s institutions and resilience. Bureaucratic silos, slow procurement, and overlapping jurisdictions could stall reform. Without interoperability and coordination, digital systems may remain fragmented and inefficient.

The digital divide remains a stubborn obstacle. Unless rural connectivity, affordability and literacy are addressed, millions could remain excluded from the benefits of digitisation. The divide is not only geographic but also gendered. Women remain under-represented in STEM education and ICT employment, and unless that changes, the promise of inclusivity will ring hollow.

The skills gap is a cause for concern. To raise a generation of AI engineers and/or cybersecurity specialists takes many years. If there are not enough opportunities in their own country, this will constitute a new wave of brain drain for Bangladesh.

Cybersecurity failures may also affect this. A major hacking incident could reduce people’s willingness to embrace ICTs. Furthermore, delays in regulatory implementation might expose this country to exploitation by large ICT players and/or unconventional digital finance.

Finally, technology without ethics is dangerous. Automation may displace workers, algorithms may reinforce bias and data exploitation may undermine privacy. The pursuit of competitiveness must therefore remain anchored in human values and social responsibility.

A Vision for 2030: Imagine Bangladesh in 2030, fully realised as Digital Bangladesh 2.0. Citizens access every government service through a unified portal powered by secure digital identity. Payments across all sectors occur instantly through interoperable platforms. Students in rural villages attend world-class lectures online, their certificates verified on blockchain. Farmers use drones and sensors to manage crops, while AI models predict market prices. Hospitals maintain cloud-based patient records accessible anywhere, reducing medical errors and saving lives.

In this vision for the future, youth power a thriving technology export sector that spans AI offshoring, cloud development and fintech services, generating billions in foreign exchange earnings. Women hold top positions in science and technology as well as digital entrepreneurial ventures. Startups in Dhaka and Chattogram pair up with those in Singapore, Nairobi and Dubai. Entrepreneurs in rural areas sell goods to the global market via online shopping sites.

Cybersecurity is robust, governance is transparent and people feel secure in trusting that their information is protected. The economy is resilient and innovative. The country is no longer a passive observer of global digital trends but a participant and even a contributor.

A Shared Responsibility: To implement this vision, all stakeholders must share it. The policymakers have to translate a vision into action. Completing the National Digital Architecture, complying with data protection legislation and working with ethical AI are among the pressing issues. Policymakers must ensure that all digital policies are inclusive and that all districts have transparent infrastructure and development.

Industry must match policy ambition with private-sector innovation. Companies should invest in upskilling their employees, adopt secure, interoperable technologies and collaborate with startups to co-create solutions. Cybersecurity and data protection should be treated as investments in trust, not costs of compliance.

The academic sector needs to read its human capital for this shift. The academia needs to transform school curricula, develop micro-credentials in new domains and collaborate with industry partners on applied project work. Research needs to address practical problems, such as AI in the agricultural sector and blockchain in trade. The success of each industry is contingent on the others. With vision in policymaking, execution in industry and talent in academia, a country shifts from adaptation to innovation.

The Promise and the Pivot: The story of Digital Bangladesh 1.0 was one of access, with millions brought online, services digitised and governance modernised. The story of Digital Bangladesh 2.0 must be one of advantage, where digital capacity translates into productivity, innovation and global competitiveness.

The foundation has been laid: a young, ambitious population; infrastructure development in place; development of the startup ecosystem underway; and a roadmap in place. However, ambition without coordination is unstable, and connectivity without trust is meaningless. The key is to blend technology and integrity, innovation and inclusion.

If Bangladesh can achieve this synthesis, it will not only enter the digital age but will define it. The digitally empowered Bangladesh will serve as a guiding star for other developing nations. The Bangladesh success will illustrate that a developing economy can easily transform into a vibrant knowledge society through vision and value-driven technology.

The writer is a professor of Journalism and Mass Communications at Savannah State University in Georgia, USA. sibhuiyan@yahoo.com