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Digital divide slows development and accentuates inequalities: 2,6 billion people still offline

According to a study by Ispi-Deloitte, in low-income countries only 27% of people have access to the Internet. Young people and women are especially at risk: 90% of girls between 15 and 24 are not connected. The disparity in AI adoption is widening the gap between economies

Digital divide slows development and accentuates inequalities: 2,6 billion people still offline

We are all hyperconnected. smartphone always in hand, Artificial Intelligence that spreads like wildfire, cloud and quantum computing. And yet, billions of people are still cut off from all this. 2,6 billion to be exact, a third of the world's population is still offline. This is happening in low-income countries, where only 27% of people have access to the internet, and in low-middle-income countries, where the figure is 53%, just over one in two people, with large groups remaining excluded from basic online services. This is what emerges from the new Valid identity document elaborated by Ispi and Deloitte on digital divide, which analyses the risks of a lack of connectivity for growth, competitiveness and social cohesion. The research highlights how deep-rooted internal inequalities, with an internet usage rate of 83% in urban areas compared to 48% in rural areas. Young women are the most penalized: in low-income countries 90% of girls between the ages of 15 and 24 live without internet access.

Connectivity weighs on growth and investment

The data collected by Ispi and Deloitte show how the level of connectivity today has a decisive impact on growth and on the attraction of the investments. According to the World Bank, in fact, a 10% increase in mobile broadband penetration can stimulate an increase in GDP per capita of 1,5-1,6%. On the contrary, the lack of digital financial services hinders access to credit for millions of entrepreneurs in low- and middle-income countries where, according to the United Nations Development Programme (UNDP), GDP growth could be 20% to 33% slower in the next few years. The hardest hit are micro, small and medium-sized enterprises: without online financial services, over 19 million of them would be cut off from financing.

More digital = more investment

According to the study, countries that are able to exploit digital solutions attract more investments. Online services, such as information portals or platforms where you can register business activities, bring in an average of 8% increase in the inflow of foreign direct investment. “These digital capabilities also increase business registration rates, with beneficial effects especially on startups, female entrepreneurship and communities living outside urban areas,” the document reads.

On the contrary, poor connectivity also negatively affects the adoption of Artificial Intelligence applications. The AI ​​Preparedness Index developed by the International Monetary Fund to measure a country's level of preparedness for the strategic use of AI – in terms of digital infrastructure, investment in human capital, STEM skills and innovation – highlights a deep gap between nations: advanced economies obtain an average score of 0,68, more than double that of low-income countries (0,32).

Women and young people are the most penalized by the digital divide

There is also an additional factor to take into account: the disparity in the ability to exploit new technologies is further exacerbated by the limited access to education and allto training of developing countries, where millions of people are at risk of being excluded from new job opportunities. The World Economic Forum warns that nearly 40% of Today's skills will become obsolete, with 60% of workers needing reskilling by 2030.

I young people and women represent the groups most exposed to educational gaps: according to the United Nations, in low-income countries, 90% of adolescents and young women (15-24 years old) do not have access to the Internet and their ability to acquire digital skills is 35% lower than their male peers. Consequently, they continue to be underrepresented in jobs related to technologies and artificial intelligence. This gap limits access to job opportunities and economic independence, exacerbating gender inequalities in the labor market. The data in the publication therefore foreshadow a perspective in which AI will benefit only a few and will further increase the economic and social gap not only between nations but also between demographic groups.

“The digital economy is the economy of the future”

“The digital economy is the economy of the future, and yet 2,6 billion people are still offline”, commented Andrea Poggi, Head of Dcm Public Policy & Stakeholder Relations Centre and Dcm Innovation Leader, “The digital divide is one of the main obstacles to economic growth and sustainable development. In a world where digital access creates opportunities, a third of the population is excluded from education, employment and financial services, increasing inequality and slowing global progress. Addressing this challenge is not only a moral imperative, but also a necessity to build a more resilient, innovative and equitable global economy.”

“Il the cost of exclusion is higher than that of inclusion.”, commented Antonio Villafranca, ISPI Vice President for Research, “According to the World Bank, digital exclusion could cost low- and middle-income countries up to $2.000 trillion in lost economic growth over the next decade. Investing in digital access today means preventing more serious economic inequalities tomorrow. Digital inclusion does not happen by chance, but by choice: a choice we must make to build a future of shared prosperity.”

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