ADB: Digitalization Can Reduce Inequality in Asia and the Pacific

NDO - According to ADB, digitalization can be a powerful tool to reduce persistent economic inequality in Asia and the Pacific, but to tap its potential, governments need to close the "digital divide", including gaps in infrastructure, access, and skills.

On May 6, the Asian Development Bank (ADB) released a policy report titled “Developing Asia 2025: Harnessing Digital Transformation for Good.” According to the report, although developing Asia and the Pacific has outpaced other regions in digital development in recent decades, the benefits have not been shared equally.

For example, across the region, urban internet penetration is 13 percentage points higher than rural. Mobile internet download speeds are also 38% faster in urban areas 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 remains persistent 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, living on less than $3.65 a day.

Developing Asia and the Pacific ’s rapid digital transformation has significant benefits for the region, 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.

According to ADB, digitalization can reduce inequality by increasing access to basic services such as personal finance and education, or by helping small business owners overcome barriers such as lack of access to finance or business networks.

Developing Asia-Pacific’s rapid digital transformation has significant benefits for the region. Governments that promote inclusive and sustainable digitalization have the opportunity to not only boost overall productivity and innovation, but also reduce economic inequality.

ADB Chief Economist Albert Park

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://nhandan.vn/adb-so-hoa-co-the-lam-giam-bat-binh-dang-o-chau-a-va-thai-binh-duong-post877660.html