ADB: Digitalization Can Reduce Persistent Inequality in Asia-Pacific

Digitalization can be a powerful tool to reduce persistent economic inequality in Asia and the Pacific—but to harness its potential, governments need to close the “digital divide,” including gaps in infrastructure, access, and skills, according to a new report from the Asian Development Bank (ADB).

Asia and the Pacific ’s rapid digital transformation is developing, and the region stands to reap significant benefits. (Source: ICT News)

Although developing Asia and the Pacific has outpaced other regions in digital development in recent decades, the benefits have not been evenly shared, according to the ADB.

For example, across the region, urban internet penetration is 13 percentage points higher than rural internet penetration, according to the Asia Development Policy Report 2025: Harnessing Digital Transformation for Good , released on May 7.

Mobile internet download speeds in urban areas are also 38% faster than in rural areas. Previous studies have also found that many developing economies in Asia and the Pacific lag behind in digital inclusion and generally have low levels of digital skills.

At the same time, despite rapid growth and development, economic inequality persists in the region. In 2022, developing Asia’s population-weighted average Gini coefficient—a measure of within-country inequality—was 6% higher than in 1990. As of last year, 18.9% of the region’s population was classified as poor, meaning living on less than $3.65 a day.

“Developing Asia and the Pacific’s rapid digital transformation means the region can reap significant benefits,” said ADB Chief Economist Albert Park. “Governments that promote inclusive and sustainable digitalization have the opportunity to not only boost overall productivity and innovation, but also reduce economic inequality.”

Digitalization can reduce inequality by increasing access to basic services like personal finance and education, or by helping small business owners overcome barriers like lack of access to finance or business networks.

Digital transformation can also help accelerate the transition to low-carbon development and make communities in the region more resilient to extreme weather and natural disasters, for example by supporting modelling and analysis to improve disaster risk management and forecasting climate models to identify solutions such as climate-resilient crops.

The report recommends that governments in developing Asia and the Pacific adopt national digital strategies that integrate inclusiveness and sustainability goals and enact locally tailored policies to advance these goals. Governments should also work with the private sector, civil society organizations, and local and international communities.

Source: https://baoquocte.vn/adb-so-hoa-co-the-giam-bat-binh-dang-dai-dang-o-chau-a-thai-binh-duong-313586.html