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BizBeat Ep. 26: Digitalizing the world without a 'digital divide'
Updated 16:20, 06-Feb-2021
By Xia Cheng
03:36

A novel called "Folding Beijing" shows a dystopian future in which the Earth's surface is shared over a 48 hour cycle. Beijing is divided by three classes physically. The first governing class occupies the space for 24 hours after which the earth's surface gets turned upside-down to move the second and third classes up.

The second class are the middle-class people who will enjoy the following 16 hours. Then, the building of the second classes will fold and retract while the high buildings of the third class unfold and rise. The third class are working class people who can be awake for only eight hours. When each class is turned down or folded, the residents there are put to sleep.

Travelling, communications and economic activity between classes is tightly controlled and violators are sent to jail. That's indeed a dystopian world we don't want to live in.

But the book raises a good question: as technology and digital solutions are bringing new economic growth momentum, are they actually dividing the society?

In the World Economic Forum's new annual Global Risks Report, the "digital divide" is dubbed a top risk the world must tackle in the next two years along with infectious diseases, job crises and a lack of hope among young people.

The COVID-19 pandemic worsened inequality. People have been reliant on digital solutions and the internet to work, learn and get by. But the gap between the rich and the poor regarding access to digital technology creates an opportunity gap that could eventually lead to substantial economic inequality.

In short, given the pace of the digital revolution, inequality could worsen as economies progress. That's the reason we have to tackle the digital divide now. Digital technology was not invented to tackle inequality. But some of the adoptions of digital technology could serve as solutions for inequality.

A good example is China where new digital platforms are closing the opportunity gap. China's booming e-commerce allows micro and small companies, even those in remote villages to sell products directly to almost a billion internet users across the country. That helps to equalize opportunity.

Fintech is a powerful tool in China for inclusive finance. Fintech platforms generate credit scores using cash flow data, online customer reviews and other digital indicators. That means they can use these scores to make loans without collateral to millions of micro and small businesses in China. Those tiny businesses previously could not obtain a traditional bank loan.

Meanwhile, video conferences using the 5G network can virtually bring high-quality teachers to the classrooms in rural areas where the educational resources are insufficient. That reduces the opportunity gap for education.

But after all, the key lies in equal access to digital infrastructure. And such a right needs to be protected and ensured by governments and public policies. So it is time for global governments to work together and build open and accessible digital infrastructures to prevent the world from "folding."

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