DCO Policy Watch – Fifth Edition
September 2025
The fifth edition of DCO Policy Watch focuses on the urgent and evolving concept of digital resilience, providing a policy-focused analysis of how governments and regional blocs are preparing for and responding to disruptions in an increasingly interconnected world.
Digital Resilience: A Strategic Imperative
Digital resilience is no longer a purely technical concern. It is a foundational element of national security, economic continuity, and social stability. Defined as the capacity to anticipate, absorb, adapt or respond to, and recover from disruptions while maintaining essential functions and strategic direction, digital resilience is critical for safeguarding digital economies.
This edition introduces a multidimensional framework, examining three core dimensions:
- Infrastructure resilience: Ensuring secure, redundant, and autonomous digital infrastructure, including cloud, data centers, and network systems.
- Economic resilience: Diversifying supply chains and strengthening domestic digital capabilities, particularly in semiconductors, cloud services, and AI.
- Policy resilience: Enhancing the agility of policy frameworks and governance structures to address fast-evolving risks and support proactive, forward-looking strategies.
Key Global and Regional Policy Shifts
The report explores recent geopolitical, economic, and technological disruptions, from AI-driven supply chain pressures and cyberattacks to power outages and new trade restrictions, that have exposed vulnerabilities worldwide. It highlights how countries are:
- Shoring up local cloud and data infrastructures (e.g., Saudi Arabia, EU GAIA-X).
- Investing in semiconductor sovereignty (e.g., Japan’s Leading-edge Semiconductor Technology Center).
- Launching inclusive upskilling initiatives (e.g., Singapore’s AI-driven workforce programs).
- Strengthening regional cooperation through agreements such as ASEAN’s Digital Economy Framework Agreement and the African Union’s Continental Free Trade Area’s Digital Protocol.
Multilateral and Regional Cooperation
As no country can secure its digital ecosystem alone, multilateral and regional frameworks are emerging as critical enablers of resilience. New initiatives such as the World Trade Organization’s E-Commerce Agreement and the United Nations’ Global Digital Compact highlight the shift toward shared standards, capacity building, and harmonized rules to mitigate fragmentation and build trust. By participating in these cooperative frameworks, countries can access shared expertise, strengthen regional supply chains, and collectively respond to emerging digital threats.
Outlook for DCO Member States
DCO Member States are encouraged to adopt a holistic approach that integrates robust infrastructure, diversified economies, adaptable governance, and multilateral collaboration. By embedding resilience into national strategies and regional partnerships, members can future-proof their digital economies against escalating global disruptions. This proactive approach will help ensure long-term stability, foster innovation, and enhance each country’s ability to navigate complex digital challenges.