Bridging the Digital Divide: ADB Calls for Inclusive Digitalization to Tackle Inequality in Asia-Pacific

Digital transformation has the potential to reshape economic and social dynamics in Asia and the Pacific, providing an unprecedented opportunity to reduce deep-rooted inequalities. However, this promise remains elusive without deliberate, inclusive policy efforts, according to the Asian Development Policy Report 2025: Harnessing Digital Transformation for Good released by the Asian Development Bank (ADB).

While digital development in the region has seen remarkable growth, the report emphasizes that these advances have been unevenly distributed, leading to what the ADB identifies as persistent “digital gaps.” These include disparities in digital infrastructure, internet access, and digital literacy—especially between urban and rural communities.

Uneven Progress in Digital Development Across the Region

Over recent decades, the Asia-Pacific region has emerged as a frontrunner in digital transformation, outpacing global averages in internet connectivity, mobile technology adoption, and digital innovation. Yet this progress masks significant regional and demographic disparities.

ADB reports that internet usage is, on average, 13 percentage points higher in urban areas compared to rural counterparts. Mobile internet download speeds are also 38% faster in urban centers, giving city dwellers a clear advantage in accessing digital services like online banking, remote education, and e-commerce.

Moreover, many developing economies in the region still struggle with digital inclusion and limited digital competencies among large segments of their populations. These deficiencies hinder economic participation and productivity growth, especially among marginalized groups such as women, youth, and low-income households.

Persistent Economic Inequality Despite Growth

The report highlights the troubling persistence of economic inequality despite the region’s strong development record. The population-weighted average Gini coefficient—a measure of income inequality—increased by 6% between 1990 and 2022. As of last year, 18.9% of people in developing Asia were living on less than $3.65 a day, reflecting the widespread nature of poverty.

ADB Chief Economist Albert Park emphasized that while the region is poised to benefit greatly from ongoing digital advancements, inclusivity must be at the forefront. “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,” he stated.

Pathways to Inclusive Digitalization

According to the report, digital tools can help reduce inequality by:

• Expanding Access to Basic Services: Digital platforms can enhance access to finance, healthcare, and education, especially in remote and underserved areas.

• Empowering Small Enterprises: E-commerce platforms and digital financing services can help small business owners and entrepreneurs access markets and credit.

• Boosting Agricultural Resilience: Data-driven technologies, including satellite-based modeling, can help farmers adapt to climate change by identifying climate-resilient crop options.

• Enhancing Disaster Preparedness: Advanced analytics can support disaster risk reduction efforts and improve forecasting of climate-related events.

However, the benefits of digitalization can only be realized if governments take a proactive approach to bridging digital divides.

Policy Recommendations for Governments

The ADB report calls for a multi-pronged policy framework to harness digital transformation effectively. Key recommendations include:

• Adopt National Digital Strategies: These strategies should explicitly integrate goals of inclusion and environmental sustainability, ensuring digital benefits reach all segments of society.

• Promote Localized Policy Solutions: Policies should reflect the unique challenges and strengths of different countries and communities.

• Collaborate Across Sectors: Governments are urged to work with private sector stakeholders, civil society organizations, and international partners to co-create and implement impactful digital initiatives.

Such collaboration will be vital to fostering innovation, pooling resources, and building trust among citizens.

ADB’s Role in Regional Transformation

Established in 1966 and owned by 69 members—50 from the Asia-Pacific region—the Asian Development Bank continues to be a critical partner in shaping inclusive, resilient, and sustainable development in the region. ADB leverages innovative financial tools and strategic alliances to help its members tackle development challenges, invest in quality infrastructure, and safeguard the environment.

By championing inclusive digitalization, ADB envisions a future where technology serves as a bridge to equality rather than a barrier—enabling every person in Asia and the Pacific to benefit from the digital age.