Meaningful digital transformation in Asia Pacific

The relentless pace of technological advancement is nothing short of breathtaking. Quantum computers, soon to compute 47 years faster than today’s supercomputers, are nearly a reality.

ChatGPT, once a novelty, has seamlessly integrated into daily life. Drones now traverse the skies, delivering food, medicine, and disaster relief to the most remote corners of the globe. Satellites illuminate Himalayan villages with internet connectivity.

Meanwhile, digital technologies have given rise to breakthroughs in biotechnology, robotics, nanotechnology, environmental science, and medical research, heralding transformative solutions for humanity and our planet. Indeed, the sky is no longer the limit.

Yet, amid these marvels, a stark reality casts a shadow. The United Nations, striving to achieve the 17 Sustainable Development Goals (SDGs) by 2030, finds itself lamentably behind schedule. Progress remains frustratingly sluggish, particularly in the Asia Pacific, where climate action is alarmingly retrogressing.

While digital technologies offer a lifeline and the promise of being transformative in achieving the SDGs, especially for women entrepreneurs, and youth, we must first ensure robust connectivity, cultivate requisite skills, enact appropriate legislation, and secure financing.

Connectivity is critical to inclusive and sustainable development, especially among least developing countries, landlocked developing countries, and small island developing states.

Persistent power shortages and unstable grids, especially in rural areas, hinder necessary infrastructure. In 2023, 33 percent of the global population remained offline, with 73 percent of these individuals in low-income countries, according to statistics from the International Telecommunication Union (ITU). The high cost of digital devices further widens this gap. Equally critical is the development of digital skills. Large parts of the population in developing nations lack the skills to engage with the digital economy. This deficit is exacerbated by poor quality education, especially in rural areas.

An effective legal and regulatory environment is indispensable. Many Asia-Pacific countries lack overarching e-commerce regulations, leaving significant gaps in areas such as online contracts, e-signatures, consumer protection, cybersecurity, taxation, and data privacy. Only 37 percent of small island developing states and 48 percent of least developed countries have enacted data protection laws.

Financing is another crucial factor. Access to capital, especially for women and youth entrepreneurs, is vital for digital sector growth. Around 40 percent of small and medium-sized enterprises (SMEs) in developing countries face a $5 trillion financing gap, with women-owned businesses receiving just 3 percent of venture capital funding.

The international community’s role in galvanizing digital transformation in the Asia Pacific is pivotal. While initiatives like Aid for Trade have seen an uptick in information and communication technology-related commitments, rising from $1.5 billion in 2019 to $2.2 billion in 2021, these investments account for a mere 4.1 percent of total allocations. There is a pressing demand for substantially increased financial backing. Effective reform hinges on collaboration among national governments, the private sector and other stakeholders, as well as development partners.

In India, drones delivering medical supplies to remote areas drastically improve health outcomes by ensuring timely access to essential medicines and vaccines. In the Philippines, telemedicine bridges healthcare gaps, connecting underserved patients with professionals. Satellite technology in Indonesia revolutionizes education by bringing internet access to rural communities, enabling virtual classrooms and remote learning, and equipping youth with essential skills.

Moreover, digital platforms can spur economic growth by fostering digital entrepreneurship and e-commerce, empowering small businesses, particularly those owned by women and youth, to expand their reach and stimulate economic development. Biotechnology innovations strengthen food security by developing resilient crops, while precision agriculture boosts yield and reduces waste. Environmental monitoring provides critical data, helping governments track deforestation, monitor pollution, and predict natural disasters.

Additionally, digital payment systems and mobile banking enhance financial inclusion, offering underserved populations access to essential financial services. This empowers individuals, especially women, to save, invest and build businesses, contributing to poverty reduction and economic stability.

Though our future may be precarious, it holds the promise of a more inclusive and sustainable world—if we unite in a global endeavor to embrace this digital metamorphosis. The time for rhetoric has passed; now, we must escalate our global commitment to ensure that the dividends of digital progress are shared by all, leaving no region or community in the shadows. The moment to act is now, to ensure that the benefits of this digital era reach everyone, everywhere. The Jakarta Post/Asia News Network

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Atsuko Okuda is director of the ITU regional office for Asia and the Pacific. Shamika N. Sirimanne is director for technology and logistics of the UN Trade and Development UNCTAD.

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The Philippine Daily Inquirer is a member of the Asia News Network, an alliance of 22 media titles in the region.