Overcoming Challenges to Economic Inclusion in the Digital Age
Economic Inclusion refers to the spread of participation in and benefits of economic growth to all the population. The reverse is economic exclusion, which is largely fanned by widening economic inequality, in turn exacerbated by the digital age due to factors like:
- Global job market shifts: Automation and AI replacing human labour, and a mismatch between required and available skills occasioned by tech induced obsolescence.
- Wealth concentration: The tech industry amassing significant wealth around itself to the relative diminution of traditional/ high employment sectors like manufacturing, agriculture and transport, thus widening the gap between the rich and poor.
- Regulatory challenges, posing difficulties in taxing digital businesses to enhance job-generating, lower tech sectors.
- Market dominance: Wealthy and powerful tech companies today control digital platforms, including those used in the operations of services like banks, insurance, and information dissemination.
Overcoming the challenges
Addressing these challenges requires a multi-faceted approach involving governments, private sector, civil society, and international organisations. Key strategies could include:
- Implementing policies to boost employment generating sectors – to help hi-tech and high employment sectors thrive side by side
- Building and extending the frontiers of digital infrastructure – expand internet access, teach people how to use technology, and make devices affordable to all.
- Build regulatory (in finance, insurance, taxation, business) to match tech advancements
- Promote digital finance: Make digital banking accessible and easy to understand.
- Protect hi-tech/ high employment sector integration and collaboration – to somewhat even out wealth distribution over sectors
- Pro-employment economic policies and strategies – to ensure the disparities do not edge out sectors that deliver employment with growth.
By taking decisive actions to overcome these challenges, we can harness the potential of the digital age to create a more inclusive and prosperous future for all.
Dr. Keren Obara.
Digital Marketing Associate.