Overcoming digital poverty traps in rural Asia

Abstract

The rapid spread of information and communication technology (ICT) in Asia offers the promise of a “digital revolution” for agriculture. But realizing such gains will depend on overcoming digital poverty traps, whereby significant numbers of poor smallholders inhabiting remote regions are unable to take advantage of the benefits of ICT for agriculture and thus remain mired in poverty. This phenomenon is illustrated in a model of a poor household located in a remote region that cannot accumulate sufficient ICT skills. To avoid such outcomes, policies need to be targeted at both the lack of access by smallholders to ICT for farming and their insufficient skills to use the new technologies. Increased public investments to extend “last-mile infrastructure” in digital services are necessary but not sufficient. Complementary investments in developing rural infrastructure, appropriate ICT business models and services, and improvement of the digital literacy of smallholders are also essential.