The Asian Development Bank (ADB) reports that digitalization can reduce Asia's economic inequality, but only if governments bridge "digital gaps" in infrastructure, access, and skills. Inclusive digital transformation can boost productivity, innovation, and improve basic services, especially for the poor.
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Digitalization promises to reduce inequality in Asia-Pacific. A new ADB report highlights that closing "digital gaps" in infrastructure, access, and skills is crucial for equitable distribution of benefits, addressing disparities across the region.
Despite rapid digital advancement, economic inequality persists. The ADB's 2025 report reveals significant disparities: urban internet usage is 13% higher and speeds 38% faster than rural areas. This digital divide exacerbates existing inequalities, with the region's Gini coefficient 6% higher in 2022 than in 1990, underscoring the urgent need for inclusive digital policies.
Digitalization offers powerful solutions. Digital platforms can revolutionize access to finance and education for underserved populations, and dismantle barriers for small businesses by providing crucial access to financing and networks. Beyond economic gains, digitalization can accelerate low-carbon development and enhance climate resilience through advanced modeling for disaster risk management and climate forecasting.
To fully leverage digitalization, ADB recommends national digital strategies prioritizing inclusion and sustainability. These should be paired with tailored policies and broad engagement with private sector, civil society, and communities. Focusing on equitable access and robust digital skills will drive shared prosperity and a more resilient future.
By prioritizing inclusive digital access and skills, Asia-Pacific can unlock shared prosperity and build a more resilient, equitable future for all.