Podcast 🎧 & blog: Latin America’s Digital Future in Keywords, Needs, Priorities

Awareness of the benefits of digital transformation is increasing in Latin America and the Caribbean (LAC), as it is collaboration with international entities to drive projects forward. Year by year, this is laying down pathways for a more connected and inclusive digital government, with tangible benefits for the population and the economic area as a whole. 

Miguel Porrúa, Lead Specialist on Digital Government at the Inter-American Development Bank (IDB), sat down with us to share some valuable insight into the evolution of digital government across LAC. Picking up on the post-pandemic momentum is essential to keep the ball rolling in the region. But all development projects and new initiatives must be tailored to local, national needs, and the key topics in governments’ focus across the area. 

Post-Pandemic Momentum, Evolving Priorities 

Digital transformation in LAC has been accelerating in recent years, especially following the COVID-19 pandemic. The health crisis made clear the urgency for accessible digital services, from healthcare to education and social assistance, which drove governments to prioritise digital infrastructure. “COVID accelerated the adoption of digital technologies because, when we couldn’t do anything else, technology helped people get essentials like groceries, healthcare, and education,” Porrúa explains. This shift has now solidified digital solutions as one of the pillars for national economic development, with strategies springing up across the region. 

Enthusiasm has grown, but disparities remain. Despite ambitious agendas, only four LAC countries currently rank among the top 50 worldwide for digital government readiness. “The IDB works to tailor digital transformation support to each country’s unique context. So, one of the primary goals of our organisation is to address those gaps too, by working with governments to implement initiatives that directly respond to local needs,” Porrúa explains.  

For instance, the IDB has supported digital inclusion efforts in Peru, aimed at bringing technology access to indigenous communities; in Panama, actions were directed towards economic competitiveness and attracting investment. In Brazil, instead, backing was focused on initiatives of intergovernmental integration, to make national and local governance more efficient. The approach varies as needs do, Porrúa illustrated. That sets countries to boost their digital capabilities overall, while also empowering governments to set and achieve specific digital milestones. 

Bridging Regional Diversity by Addressing Local Needs 

Digital identity and interoperability initiatives serve as common elements across the Inter-American Development Bank’s projects. Yet, each country requires a different implementation strategy. In Uruguay, for example, while digital identity systems are established, the current focus is on encouraging citizens to adopt and utilise these tools. “Even where infrastructure exists, encouraging effective public use remains a priority,” Porrúa warns. 

But these tailored approaches do demonstrate the IDB’s commitment to finding adaptable solutions that respect each country’s structures and sociopolitical landscape. Salient examples in this sense are represented by Brazil and Argentina, where there are federal structures or multiple layers of governance – backing interoperability there, for example, aims to bridge government silos across agencies and levels, enabling smoother information flow across them. 

In addition to that, the IDB stresses the need to build local expertise and self-sufficiency. “The IDB’s support is rather about building each country’s institutional capacity to manage and sustain these initiatives. Take Chile, where the Secretariat for Digital Government has recently been established. There, the IDB is providing both strategic and operational support to ensure its digital initiatives become part of a sustainable public governance framework,” Porrúa explains. 

Hot Topics – Project Sustainability, Data Protection, Infrastructure 

At the heart of successful digital transformation for the LAC region, in fact, lie institutional capacity and robust regulatory frameworks. That is why the IDB is focusing on building institutions that not only implement digital agendas today, but also ensure their longevity in the future. “We need to support these institutions not just in delivering services, but in building their capacity to manage digital projects sustainably,” Porrúa highlights. In this way, the IDB is creating the right footing to ensure countries can continue to innovate and expand their digital services independently. 

One of the most pressing areas of focus for the IDB is data protection. Approximately half of LAC countries still lack comprehensive data protection laws or dedicated regulatory agencies, posing a significant barrier to secure and resilient digital transformation. In highlighting this rift, Porrúa points out the stark contrast with Europe’s comprehensive GDPR model. But the IDB is on it, actively working with countries to draft legislation that provides a strong data protection framework. After all, digital governance hinges on trust – and trust, in turn, on robust data governance as well. 

Connectivity remains another critical area of focus, particularly in rural regions, where limited infrastructure constrains access to digital services. Additionally, as cyber threats become more pervasive, IDB has increased its investments in cybersecurity initiatives. Projects in countries like Uruguay, Argentina, and Jamaica aim to strengthen cybersecurity defenses, ensuring that as the region becomes more digitally connected, its digital infrastructure remains secure. 

Digital Citizens to Build Regional Cohesion  

But as Miguel Porrúa in this episode anticipates, so to say, one of the most significant efforts toward digital regionalisation in Latin America is the Mercosur Digital Citizen Initiative*. The project is set to allow for seamless cross-border digital services through mutual recognition of digital IDs – across Uruguay, Brazil, Argentina, and soon Chile.  (*The initiative was unveiled end of November 2024, after the recording of this podcast) 

This cross-border venture is especially relevant in a region with such close cultural and economic ties, providing a tangible solution to some of the mobility and service access issues faced by citizens in Latin America. Then, for instance, a Brazilian citizen traveling to Uruguay will be able to access digital services in Uruguay using their Brazilian digital identity. 

International Collaboration and a Clear Path Ahead 

These projects demonstrate how international partnerships have been key in IDB’s digital transformation strategy in Latin America. Countries like Estonia often are taken as models for LAC’s initiatives – with some of these having been informed by collaboration with e-Governance Academy too.  

e-Governance Academy’s collaboration with IDB has included translating their e-governance guide “e-Estonia. E-Goverance in Practice” for a Spanish-speaking audience, and helping countries like Jamaica and Guyana implement digital governance frameworks inspired by the key enablers we know – interoperability, digital identity, and the likes. As Porrúa explained, “Estonia has been invaluable to us as a model of digital government excellence. Their experience has inspired policymakers across the Caribbean and Latin America.” 

These partnerships further expand on a broader trend of regional digital cooperation taking place, where shared knowledge and resources enhance each country’s digital readiness. “The future of digital transformation in LAC is less about individual national advancements, and more about creating a cohesive digital ecosystem across the region,” Porrúa says. By pooling resources and sharing expertise, countries in Latin America are advancing their digital capabilities, strengthening their collective resilience against cyber threats, and improving regional interoperability. 

Challenges remain, but do not slow down digital transformation in Latin America and the Caribbeans. With continued support from the Inter-American Development Bank, collaboration with countries like Estonia, and regional and international projects like the Mercosur Digital Citizen initiative and EU-LAC Digital Alliance  the region is well-positioned to increasingly reap the benefits of digital technology for a more inclusive, secure, and interconnected path ahead. 

Author: Federico Plantera

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