ECONOMYNEXT – Governments need to narrow “digital gaps,” including gaps in infrastructure, access, and skills to help reduce persistent economic inequality in Asia and the Pacific using digitalization, according to a report by the Asian Development Bank (ADB).
“Governments that promote inclusive, sustainable digitalization have an opportunity to not only boost overall productivity and innovation but also reduce economic inequality at the same time,” said ADB Chief Economist Albert Park.
“Developing Asia and the Pacific’s rapid digital transformation puts the region in a position to reap significant benefits.”
The Asian Development Policy Report 2025: Harnessing Digital Transformation for Good recommends that governments in developing Asia and the Pacific adopt national digital strategies that integrate inclusion and sustainability objectives, and enact locally tailored policies that promote these objectives.
Governments should also engage with the private sector, civil society organizations, and local and international communities.
Previous studies have also found that many Asia and Pacific developing economies lag in digital inclusion and have low digital skill levels.
Despite rapid development and growth, ADB said, economic inequality persists in the region.
As of 2024, 18.9 percent of the region’s population was classified as poor, or living on less than 3.65 dollars a day.
Digitalization can alleviate inequality by widening access to basic services such as personal finance and education, or by helping small business owners overcome barriers such as lack of access to financing or business networks, ADB pointed out.
It can also accelerate the shift to low-carbon development and make communities more resilient to extreme weather and disasters.
Although developing Asia and the Pacific has outpaced other regions in digital development in recent decades, the benefits haven’t been shared equally, ADB said.
Across the region the percentage of residents using the internet is 13 percentage points higher in urban areas than in rural areas, the global lender said, with mobile internet download speeds are 38 percent faster in urban areas than in rural areas. (Colombo/May7/2025)
