Part 3: ‘Readiness Across the Spectrum: Countries’

This post is part of the series UN 2.0 and the Metaverse: Are We Seeing What Is Possible?

1. Part 1: Harnessing technology, driving SDGs
2. Part 2: ‘CitiVerse: Turning the world into a global village (or rather sandbox?)’
3. Part 3: ‘Readiness across the spectrum: Countries’

This article takes a closer look at the metaverse readiness landscape across states and regions. We examine the role of the Inclusive Metaverse Index (IMI) framework as an additional benchmarking tool for tech-driven progress, while a deep dive into the strategies of the EU and the UN’s Economic and Social Commission for Western Asia (ESCWA) explores how different pathways taken by countries reflect their varying priorities and levels of development.

‘This vision is vastly ambitious, and perhaps utopian. But the overarching vision for the Metaverse does not need to be realized – perhaps ever – for many of its transformational impacts to make themselves felt’ (The Metaverse and the Arab Region’s Future).

A. Recap: Parts 1 and 2

In Parts 1 and 2 of the series, we explored the converging visions of UN 2.0 and the Global Initiative on Virtual Worlds and AI – Discovering the CitiVerse, highlighting their shared commitment to harnessing technology to accelerate progress toward the sustainable development goals (SDGs). We examined the UN’s Global Digital Compact and the outcomes of the first UN Virtual Worlds Day, identifying key areas of alignment, particularly in multistakeholder collaboration, inclusivity, and responsible technological advancement.

We also addressed the challenges of this convergence, raising critical questions about power dynamics, human rights considerations, and the need for strategic foresight. Digital transformation does not occur in a sandbox –  we already see its real-world impact. The U4SSC’s Dynamic Policy Maturity Benchmark Model responds to the demand for guidance on policy and regulatory frameworks that support smart, sustainable, and people-centric development.

B. Readiness on the spectrum: Countries

A key theme of Action Point 38 in the UN 2.0 Pact for the Future is the transformation of global governance. At the centre of this pledge of action lies a commitment to improving and strengthening the multilateral system, with the UN at its core. This will enable developing countries and stakeholders to participate meaningfully in this system. The pact highlights the need for effectiveness, inclusivity, and interconnectedness in multilateralism (Pact for the Future, pp. 25–26.) The Global Digital Compact clarifies the role of technology as an enabler of this ambitious transformation.

Every country begins this transformation from a different starting point and with different SDG priorities. As outlined in Part 2, the future may increasingly take shape in cities. Still, global realities require the international community to assess the entire spectrum of readiness to establish the envisioned effective, inclusive, and interconnected multilateral system. This approach was evident at UN Virtual Worlds Day 2024, where speakers shared insights into the diverse spectrum of infrastructural readiness and specific national needs – ranging from predominantly rural populations in Tanzania to cities like Valencia and Dubai, each presenting unique starting points and requirements (UN Virtual Worlds Day 2024)

1. A brief overview

Dubai, a rapidly growing city with a highly diverse international population, emphasised the importance of staying connected with family and cultural roots. This need could be addressed by the vision of interconnected virtual megacities that transcend spatial and temporal boundaries. Valencia, a flagship project for smart city development in Europe, serves as a blueprint for other European cities within the EU’s CitiVerse vision to establish an ecosystem of European virtual worlds.

Meanwhile, the Finnish city of Tampere was one of the first European cities to publish a metaverse strategy. In contrast, Tanzania presents a very different case. With a predominantly rural population spread across vast distances, the country’s metaverse strategy prioritises access to education, healthcare, and governmental services, enabling these sectors to bridge physical divides. This focus is tailored to the unique challenges faced by its people, differing significantly from the strategies of urban centres such as Dubai.

2. The key question: How?

While we have covered the ‘why’ in previous parts of this series, key questions remain: How can countries and organisations worldwide translate these visions into reality and build a truly global, interconnected, digitalised ecosystem? And where should each nation begin? These questions underscore the challenges of coordinating diverse stakeholders, integrating advanced technologies, and establishing effective governance frameworks beyond national borders to achieve the ambitious goals envisioned for the metaverse and UN 2.0.

C. The Metaverse Inclusivity Index: The big picture

At UN Virtual Worlds Day, a representative of Economist Impact (part of the Economist Group) introduced a pilot conceptual framework called the Inclusive Metaverse Index (IMI). The index provides a comprehensive overview of the factors required to build a successful metaverse ecosystem.

‘When working with a group of countries across the income spectrum, we need to take the lowest common denominator when considering the development of metaverse capabilities, as advanced economies are likely to have stronger baseline technological infrastructures than countries at the lower end of the development spectrum’, said Samuel Ng, UNDG Chief Digital Office.

1. A benchmarking tool

The IMI is promoted as a benchmarking tool to help countries and organisations translate their visions into reality by:

• Identifying areas requiring improvement in metaverse readiness
• Developing strategies to address these gaps and strengthen the metaverse ecosystem
• Monitoring and assessing progress, adjusting strategies as needed

2. A framework for the big picture

Overall, the IMI provides an initial overview of the many components that must work together for the metaverse ecosystem. It presents these components based on the two main pillars: Access and Engagement, along with their sub-categories.

• Access encompasses the availability and affordability of the fundamental underlying infrastructure required for metaverse participation.
• Engagement measures the readiness and relevance of individuals and organisations to participate meaningfully in the metaverse.

These two pillars are interdependent – access is a prerequisite for engagement, while engagement drives demand for access.

3. Prompting the interconnected network effect

The IMI resolves this dilemma by framing access and engagement as part of a circular development, emphasising that both must evolve together. It addresses the crucial question: ‘What comes first – access or engagement?’

According to the IMI, a baseline availability of infrastructure must come first, as readiness can only be built upon this foundation. People’s readiness is highlighted as a critical factor in the development of the entire ecosystem. Awareness – the perception of usefulness and ease of use – acts as a driving force, triggering network effects that further accelerate engagement and adoption.

Building an ecosystem of virtual worlds relies on multiple interconnected factors. The IMI aims to foster these connections between stakeholders, such as service providers, platforms, and users. This interconnection creates an indirect network effect that benefits the entire ecosystem. However, at the individual level, an increase in users leads to a direct network effect, enhancing the value of specific service providers and platforms.

Understanding this network effect is essential for companies and nations, as experience shows: ‘Once you’re ahead, you tend to stay ahead’ (Business Insights).

4. Success in the face of uncertainty

In its conclusion, the IMI acknowledges the inherent uncertainty of the future. Nonetheless, it adopts visionary and emotive language, highlighting the metaverse’s transformative potential as a paradigm shift, a fundamental change in how we think about and interact with technology. The IMI offers a valuable overview of the necessary framework conditions for a ‘successful’ metaverse.

However, defining ‘success’ in this context demands careful consideration. Is success solely about technological advancement and widespread adoption, or does it prioritise human well-being and positive social impact? Given Meta’s role in funding the IMI, as well as the authorship of Economist Impact, a critical analysis of its underlying assumptions and indicators is essential. The danger lies in allowing industry or state interests to dictate success metrics, potentially at the expense of a more holistic, human-centred approach to development. Therefore, it is crucial to examine the various drivers – such as state, industry, or hybrid – influencing the growth and direction of the metaverse.

5. Drivers of change

Knowing the drivers of change is vital to ensuring such an inclusive ecosystem. Technological transformation rarely starts at the drawing board of states. The ITU’s Focus Group on Metaverse (FG-MV) provides a non-comprehensive map of the metaverse landscape as of 2023. The technical report titled Policy and Regulation Opportunities and Challenges in the Metaverse identifies three initial drivers of development: state-led, industry-led, and a hybrid model.

a. Centralised, state-led approach

The government of China leads metaverse development, focusing on industrial applications and smart city integration. Its centralised planning enables targeted investments in specific sectors, with the goal of establishing a metaverse-related industry by 2025.

b. Industry-driven approach

In Germany, metaverse development is heavily industry-driven. The government does not have an official national metaverse strategy. Instead, German industry is actively leading the development of an industrial metaverse. A prime example is Siemens, a major player in the industrial sector, which has committed significant financial resources to advancing metaverse technology. Germany’s focus on an industrial metaverse aligns with its strong industrial base and its goal of maintaining a technological edge.

The USA is home to numerous metaverse-enabling hardware and software producers. These private sector companies are not only key players in the metaverse ecosystem but also major contributors to the development of metaverse-enabling data, network infrastructure, and software. While there is no national metaverse strategy, the focus has been on establishing international standards for critical and emerging technologies, including those relevant to the metaverse. The emphasis on a rules-based, standards-driven approach reflects a strategy that leverages the strengths of the USA’s technology sector to promote innovation and competitiveness in the metaverse landscape.

c. Hybrid approach

The EU was among the first to introduce a strategy on virtual worlds and Web 4.0. Its values-driven approach prioritises fundamental rights and aims to establish the EU as a leading Web 4.0 market. The EU proactively shapes the metaverse landscape, using foresight and stakeholder engagement to guide policy development.

Within the EU, Finland is adopting a hybrid approach. City-led initiatives in Tampere and Helsinki focus on research and virtual tourism, while a national metaverse strategy is under development. With its strong ICT infrastructure, Latvia is collaborating with industry partners to develop Riga as a major European metaverse hub.

From the West Asian region, the report highlights the United Arab Emirates and Saudi Arabia. The UAE actively engages in metaverse initiatives across various sectors, including the digital economy, social services, and healthcare, promoting innovation and economic growth. Saudi Arabia is strategically investing in the metaverse to align with its Vision 2030 programme, particularly in the gaming and smart city sectors, as exemplified by the NEOM project. Like the EU, ESCWA has published a regional strategy, which we will discuss in the following section.

Japan is actively exploring the metaverse’s social and economic opportunities through government study groups and private sector initiatives, including the development of an open metaverse infrastructure.

The Republic of Korea is investing heavily in becoming a top-five metaverse leader by 2027, focusing on technology development, regulatory innovation, and smart city applications such as Metaverse Seoul.

Indonesia is fostering a public-private partnership model for metaverse development, aiming to boost its digital economy and create a virtual capital city. At UN Virtual Worlds Day, both countries shared their experiences leveraging metaverse technologies such as digital twins and AI to enhance water resource management and address climate-related challenges (UN Virtual Worlds Day 2024).

This article examines the strategies of two political and economic regions: the EU and ESCWA.

D. EU strategy

The EU was among the first regions to launch the EU Initiative on Web 4.0 and Virtual Worlds in July 2023. The EU is adopting a proactive, bottom-up approach, actively guiding this transition and ensuring an open, secure, trustworthy, fair, and inclusive digital environment for EU citizens, businesses, and public administrations.

1. Four pillars + 1

While the baseline technological capabilities among the member states differ, they share a strong strategic fundament. Building on the 2030 Digital Agenda, the EU’s Virtual Worlds strategy is structured around 4 pillars and 23 recommendations aligned with shared goals and values, informed by input from the EU Citizens’ Panel on Virtual Worlds, which gathered public perspectives to ensure the strategy reflects shared values and priorities.

These four pillars outline the key focus areas for shaping virtual worlds in the EU:

1. Empowering people by fostering awareness and enhancing digital skills
2. Supporting businesses through the development of a European Web 4.0 and industrial ecosystem
3. Promoting societal progress by leveraging public services
4. Ensuring open governance by steering towards an open, inclusive structure for virtual worlds

The strategy also includes a fifth pillar focused on connectivity and cloud infrastructure, reinforcing the EU’s existing internet strategy and the 2030 Digital Decade agenda to support the development of secure, accessible, and resilient virtual worlds.

2. The EU on the IMI

The EU strategy’s emphasis on the 2030 Digital Agenda aligns closely with the IMI’s Access pillar, providing a strong foundation for infrastructure development. The four pillars of the EU’s Virtual Worlds strategy represent the next phase – fostering engagement among citizens, industry, the business sector, and public services. Combined with perceptions of usefulness and ease of use, this approach serves as a key driver of the network effect, further accelerating engagement and adoption.

3. Addressing uncertainty

Like the IMI, the EU acknowledges the uncertainty surrounding the evolution of virtual worlds. While the development of underlying technologies remains speculative, the European Commission recognises that close monitoring is essential for effective regulation. Past experiences with AI and social media platforms inform the governance of this technological transition (Isabelle Hupont, Joint Research Centre, at UN Virtual Worlds Day 2024).

A recent report by the EU Commission, Emerging Digital Technologies in the Public Sector: The Case of Virtual Worlds, outlines three possible scenarios for the future of virtual worlds:

1.  Community-owned entities or networks: Key infrastructure and applications are open and collectively administered
2.  Corporate-owned entities or networks: Key infrastructure and applications are closed and controlled by private companies
3.  Hybrid entities or networks: A combination of community and corporate ownership

The current landscape predominantly reflects the corporate-owned scenario, with private companies controlling most applications and platforms. Publicly owned and governed infrastructure remains limited to foundational elements, such as deep-sea internet cables and domain name systems.

Echoing discussions from UN Virtual Worlds Day, the report highlights the need for proactive public sector involvement to help shape the development of virtual worlds and the metaverse.

E. ESCWA strategy

Like the EU, ESCWA actively develops the metaverse. In its recent report, The Metaverse and the Arab Region’s Future: Public Policy Choices and Actions, ESCWA analyses the metaverse as part of a broader series on megatrends – strategic forces that are already profoundly shaping the world.

The report highlights the significance of megatrends, describing them as multidimensional and transformative. These changes do not occur in isolated social, economic, or technological domains; instead, their impacts are deeply interconnected, influencing multiple sectors simultaneously.

1. A clear message: The journey is the reward

ESCWA also acknowledges the uncertainty surrounding the future development of the metaverse and clearly articulates its value.

‘This vision is vastly ambitious and perhaps utopian. But the overarching vision for the Metaverse does not need to be realised – perhaps ever – for many of its transformational impacts to make themselves felt’ (The Metaverse and the Arab Region’s Future).

This is a crucial statement about our relationship with the metaverse. The wisdom lies in recognising that this vision, perhaps utopian, does not require complete realisation to be meaningful. Its true value lies in its transformational impact, in the changes and growth that occur along the way. Like travellers using the North Star for navigation, we do not necessarily expect to reach it. (As a side note, Mark Zuckerberg famously called the metaverse the company’s new ‘north star’ when Facebook rebranded as Meta at Connect 2021.)

The vision of the metaverse serves as a north star, an orientation point rather than a literal destination. What we ultimately achieve may be entirely different. Focusing on the process and the journey fosters intrinsic motivation, maximises the value of our experiences, encourages acceptance of uncertainty, and ultimately leads to a more balanced perspective.

Therefore, success metrics should reflect this focus on transformation and growth, rather than merely measuring the attainment of a predefined endpoint. This is an approach not only embraced by ESCWA but also embedded in the transformative strategy behind UN 2.0. With this in mind, we now turn to the pathways outlined by ESCWA.

2. Possible pathways

In March 2024, ESCWA issued a report titled The Metaverse and the Arab Region’s Future – Public Policy Choices and Actions. This report outlines three distinct pathways for the advancement of the metaverse in Arab countries.

a. Pathway One: An element of transformation

The first pathway presents metaverse advancement as a driver of industrial transformation and employment in Arab countries. It focuses on developing the entire metaverse value chain and establishing the foundational infrastructure and technologies needed for its expansion across industries.

Employment remains one of the most pressing challenges in Arab countries, with an urgent need to create substantial new job opportunities to sustain families. This is the goal – while the metaverse itself is simply the means to achieve it.

Building this utopian ecosystem will require a significant new workforce, including jobs that exist ‘at the intersection of the present and the future’. Pathway One represents a commitment to investment in a possible future to sustain people’s livelihoods today. Ultimately, it reflects a strategic move to diversify Arab economies, secure long-term growth, and leverage existing resources for a more sustainable future.

b. Pathway Two: An element of strategies

The second pathway presents metaverse advancement as a key component of strategies to improve societal well-being in Arab countries. The report highlights the potential benefits of investment, focusing on five key dimensions: education, health, climate, and government services.

During UN Virtual Worlds Day, Mounir Tabet from ESCWA emphasised the crucial role of the public sector in shaping the metaverse landscape. The UAE, Saudi Arabia, Egypt, and other Arab countries are leading in applying innovative thinking to integrate the metaverse and AI into public services. He called on the UN to facilitate collaboration between governments, technology companies, and content creators to address the challenges of virtual world technologies (UN Virtual Worlds Day 2024).

ESCWA’s 19 public policy recommendations provide guidance for governments navigating the metaverse landscape. These recommendations stress the need for a coordinated approach, integrating policy, investment, and technical strategies to maximise opportunities and mitigate risks.

Policymakers are encouraged to:

1. Support metaverse-related SMEs through targeted initiatives
2. Improve intergovernmental coordination for virtual services and digital diplomacy
3. Strengthen cybersecurity while updating regulatory frameworks

On the investment side, the recommendations highlight the need to:

1. Align metaverse funding with green finance, using tools such as digital twins for energy management
2. Upgrade infrastructure with advanced 5G/6G wireless networks, supported by financial incentives and tax breaks

From a technical perspective, the recommendations call for:

1. Investment in sustainable edge computing
2. Research into potential health risks from prolonged VR exposure
3. The use of immersive VR to enhance education, climate awareness, and cultural preservation, ultimately promoting social stability

c. Pathway Three: A catalyst for new influence

The third pathway presents metaverse advancement as a catalyst for new forms of Arab influence in the next global era. It reflects the strong ambition of Arab countries to position themselves as ‘first movers’ in the digital economy and to shape the emerging rules and governance of the metaverse.

The metaverse offers Arab countries an opportunity to overcome geographical disadvantages by creating and leading a new virtual ‘territory’. As the world transitions towards a post-fossil fuel future, Arab nations view the metaverse as both a technological frontier and a strategic opportunity to become key players in the digital economy, securing their place on the global stage.

Dubai, in particular, is already moving in this direction. Through the UN’s CitiVerse Initiative, the city is partnering with international organisations to proactively harness emerging technologies, drive digital transformation, and strengthen its position as a global leader in virtual innovation.

F. Diverse perspectives: A shared future?

Each country and region approaches the transformation from a different perspective. This report has examined strategies from two political and economic regions, ESCWA and the EU. European countries and the EU may see the metaverse as an extension of their existing digital and physical infrastructure. For other nations, it represents an opportunity to create a valuable virtual space, unconstrained by the limitations of their physical environment and history.

While Europe’s economic and governance landscape was shaped by the Industrial Revolution, Arab nations largely bypassed this period. Experts from the World Bank have urged the region not to miss the Fourth Industrial Revolution. This gives Arab nations a unique approach to the metaverse, unburdened by legacy industrial structures and shaped by the lessons of a history marked by colonisation.

History will determine whether we are learning from past achievements, failures, and their consequences to create a more sustainable and just future. The need to recognise the interconnectedness of past, present, and future is acknowledged in the Declaration on Future Generations (Pact for the Future, p. 52).

G. Conclusion of Part 3

Part 3 explored the diverse landscape of metaverse readiness. The IMI helps foster the network effects needed to drive the shift towards a new socio-technological ecosystem. The different pathways taken by countries reflect their varying priorities and levels of development.

Outlining these pathways and strategies aligns with UN 2.0’s vision to harness emerging technologies to accelerate progress towards the SDGs. Recognising the metaverse as ‘perhaps utopian’ allows us to focus on the transformative journey itself, valuing the impact of our efforts along the way. This emphasis on the journey aligns with the UN 2.0 framework and the CitiVerse Initiative’s commitment to responsible technological advancement, as discussed in previous parts of this series.

H. Next up

Building on this understanding, we will analyse in Part 4 how the SDGs are not just goals but also define the boundaries for sustainable development. We are already living in an ecosystem where technology is deeply embedded. With UN 2.0 and the Global Initiative on Virtual Worlds, we are consciously integrating technology into the fabric of our reality. As the title of the upcoming second UN Virtual Worlds Day states, ‘Delivering on the Pact for the Future’.

I. Ask Diplo’s AI Assistant

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