There are 2.9 billion people worldwide who do not have access to the Internet or opportunities to engage in the digital economy. Despite technological advances, the digital divide continues to affect all aspects of life, from banking to healthcare, education, communication and media.
Two years ago, on September 21, 2022, world leaders recognized the importance of technology as a fundamental global issue in the United Nations General Assembly Declaration on the 75th anniversary of the founding of the United Nations. The world is committed to improving digital cooperation and developing digital technologies.
However, digital inclusion is about more than closing gaps. It is an opportunity to build a fair and just society and a prosperous economy.
The World Economic Forum reported in May 2022 that with 95% of the world’s population living within mobile broadband network range, the digital divide is less about connectivity and more about a combination of lack of digital literacy and limited equipment. Even those with internet have a hard time getting good quality service at an affordable price. Only 53 percent of the world’s population has access to high-speed broadband.
While the digital divide is much larger in rural areas and disproportionate for certain groups, for example, it affects more women than men, it still affects both developed and underdeveloped countries. About half of the US population lacks access to broadband speeds due to lack of coverage or skills, according to Harvard Business School.
TechRepublic spoke to Jonathan Wong, head of technology and innovation at the United Nations Economic and Social Commission for Asia and the Pacific, and Anna Osborne, head of marketing and communications at the UK’s Good Things Foundation, to understand the challenges. Digital inclusion and driving opportunities of technology.
From saving money to improving employment opportunities and the ability to work flexibly, Osborne explained, “There are many benefits to digital inclusion for society, organizations and individuals.”
“At the community level, organizations and government can benefit from channel shifts, more efficient service delivery capabilities and a skilled workforce,” Osborne added.
Depriving people of easy access to information, learning and essential services means billions will be lost.
Technology and technology projects drive digital inclusion
In Asia and the Pacific, the UN’s ESCAP warns that despite significant opportunities, women in the region are constrained by a number of factors. Women are victims of the gender gap in mobile phone ownership, they are paid lower wages, have lower education levels and lower financial status, Wong told TechRepublic.
Wong acknowledges that the pandemic has accelerated digital economies and societies at an unprecedented pace, but asserts that the digital transformation has not been without its challenges. “In the Asia-Pacific region alone, more than two billion people lack access to the digital world,” Wong explained.
“Digital technologies have supported governments to implement social protection schemes quickly and at scale, and enabled e-health and online education; digital finance and e-commerce have supported businesses to continue and do business,” explained Wong.
ESCAP—working with the Griffith Asia Institute—recent policy handbook: Harnessing Digital Technology for Financial Asia and the Pacific. The guide provides policy makers to develop a policy and regulatory environment that will enable the poor and women to benefit from digital financial products and services.
Projects, where governments, organizations, the private sector and the public collaborate, have emerged as new ways to address the digital inclusion crisis. With 10 million people in the UK still lacking even the most basic digital skills, 1.5 million without internet access and 2 million struggling to afford to buy, the Good Things Foundation has launched a new social infrastructure to tackle digital exclusion.
“The barriers to digital inclusion are complex but fall broadly into four areas: skills, motivation, confidence and access,” Osborne said.
The Foundation works in partnership with national, regional and local organizations and communities to support those affected by the lack of digital inclusion policies. Last year, they teamed up with Virgin Media O2 to tackle “information poverty” in the UK through the National Databank. Virgin Media O2 has promised free mobile data to address the country’s digital inclusion crisis. Virgin Media O2 has announced that it is expanding its program with 15 million GB of free data in July 2022 to help people stay connected as the cost of living in the UK continues to rise.
As Osborne explained, the National Databank is helping hundreds of thousands of vulnerable people in communities across the country and is “a national food bank of contact information. The initiative has distributed around 500,000 free SIM and mobile data donated by Virgin Media, O2, Vodafone and Three.
The Good Thing Foundation is setting up a national dishing bank to provide support to people who can’t get online because they can’t buy their own devices. This startup aims to close the gaps in technology device ownership through tech device donations.
In the Asia-Pacific region, EAAP continues to work to ensure that it is at the center of the digital transformation the world has embraced since the pandemic began. And just like in the UK, the private sector is key to creating opportunities.
See: The Covid-19 Gender Gap: Why Women Quit and How to Get Back to Work (Free PDF) (Republic of Tech)
“In Asia Pacific, the private sector plays a key role in developing digital technologies, and ensuring that businesses that develop such technologies are ‘inclusive’ is an important policy agenda for governments pursuing digital inclusion more than any specific technology,” said Wong.
Technology companies can follow these inclusive policies and enter new markets based on the economy by creating accessible and affordable technology products and services.
ESCAP and the United Nations Capital Development Fund (UNCDF) launched the Women’s FinTech MSME Innovation Fund to support fintechs, financial services providers and startups that help women entrepreneurs succeed.
“Through this fund, we have worked with SHE Investments to launch the KOTRA-Riel accounting application, the first tool to support Cambodia’s micro-entrepreneurs plan, manage cash flow and access regular financial services,” Wong added.
One of the most important barriers women entrepreneurs face in growing and developing their businesses is access to finance. Limited collateral, lack of financial history and low digital literacy are key challenges women micro-entrepreneurs face in accessing bank finance.
“KOTRA-Riel addresses these challenges by creating a simple and user-friendly experience that allows non-technical people to track business income and expenses with the click of a button,” added Wong.
In addition, recently—through a partnership between the ASEAN Secretariat and ESCAP—the Economic Ministers of ASEAN Member States adopted Guidelines for Promoting Inclusive Business in ASEAN, making it the first region in the world to adopt such guidelines.
“Ensuring that digital transformation in our environment does not become another facet of deep inequality may be one of the challenges we face as countries begin to rebuild,” Wong said.
In the UK, Osborne says barriers to digital inclusion cannot be overcome by technological solutions, but by support that improves skills, reduces costs and removes barriers to access. This, Osborne said, is in partnership with industry, government, the third sector and the community.
