MANILA, May 6 (Xinhua) -- Digitalization can be a powerful tool to help reduce persistent economic inequality in Asia and the Pacific, but to harness its potential, governments need to narrow "digital gaps," the Asian Development Bank (ADB) said in a report on Tuesday.
According to the Asian Development Policy Report 2025: Harnessing Digital Transformation for Good, developing Asia and the Pacific has outpaced other regions in digital development in recent decades, but the benefits have not been shared equally.
For instance, across the region the percentage of residents using the internet is 13 percentage points higher in urban areas than in rural areas, said the report, noting that mobile internet download speeds are also 38 percent faster in urban areas than in rural areas.
Previous studies have also found that many of Asia and the Pacific's developing economies lag in terms of digital inclusion and have generally low digital skill levels, the report said.
"Developing Asia and the Pacific's rapid digital transformation puts the region in a position to reap significant benefits," said ADB Chief Economist Albert Park.
"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 Park.
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, the report added.
The bank recommended 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.
