Digitalisation can help reduce economic inequality in Asia and the Pacific. However, to make the most of it, governments must close the “digital gaps,” such as gaps in infrastructure, access, and skills. This is according to a new report from the Asian Development Bank (ADB).
The bank said in a statement on Tuesday that while digital development in Asia and the Pacific has grown faster than in other regions in recent years, not everyone has benefited equally.
For example, in the region, 13% more people in urban areas use the Internet than those in rural areas, according to the Asian Development Policy Report 2025: Harnessing Digital Transformation for Good, released Tuesday.
Mobile internet download speeds are 38% faster in urban areas compared to rural areas.
Previous studies have found that many developing countries in Asia and the Pacific are behind in digital inclusion and have low digital skills.
Economic inequality still exists in the region despite fast development and growth.
In 2022, the average Gini coefficient for developing Asia was 6 percent higher than in 1990. The Gini coefficient measures how unequal income or wealth is within a country.
“Developing Asia and the Pacific’s fast digital growth gives the region a chance to gain big benefits.”
“Governments that promote inclusive, sustainable digitalization have an opportunity to not only boost overall productivity and innovation but also reduce economic inequality simultaneously,” said ADB Chief Economist Albert Park.
The ADB says digitalization can help reduce inequality by making basic services like personal finance and education more accessible. It can also help small business owners overcome challenges like lack of financing or business networks.
Digital transformation can also help speed up the move to low-carbon development and strengthen communities in the region against extreme weather and disasters. For example, it can help with models and data analysis to improve disaster management and predict climate patterns, leading to solutions like climate-resistant crops.
The report suggests that governments in developing Asia and the Pacific create national digital plans that include goals for inclusion and sustainability. They should also make policies that suit local needs and encourage these goals. Governments should also work with businesses, community groups, and regional and international organisations.
ADB is a global development bank that supports inclusive, resilient, and sustainable growth throughout Asia and the Pacific.
The bank works with its members and partners to solve big problems together. It uses innovative financial tools and partnerships to improve lives, build good infrastructure, and protect the planet. Founded in 1966, it is owned by 69 members—50 from the region.
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