A new report by the Australian Strategic Policy Institute highlights Australia’s potential leading role in the Southeast Asia’s digital transformation during the post-pandemic recovery. Key to Canberra’s efforts in the region, in close cooperation with its strategic partner India, should be the increase of digital engagement with, and improvement of digital skills of, “traditionally under-resourced segments of the economy, such as MSMEs, women and those in non-metropolitan areas.”

These findings thus underscore the need for targeted action as well, given that the Covid-19 pandemic has caused a growing gap between those who are able to partake in the opportunities offered by the internet and those who are not. As the first lockdowns hit, physical workplaces were shut down and, where possible, moved online, with severe consequences for those who could not take advantage of labour-digitalization themselves.

The perennial issue of access inequality

At the core of an economy’s ability to leverage its digital capital is the degree to which “access inequality” affects the socio-economic order. Unsurprisingly, the chasm is deepest between rich and poor countries, with emerging and developing economies in Asia “among those with the lowest access to the Internet”, leading to social stratification that is hard to overcome. Poorer, less developed and less urbanized countries across the Asia-Pacific all show less internet access, a pattern replicated on the sub-national level as well.

However, Canberra has already made early moves to lend the much-needed helping hand in digitalization as part of an emerging broader strategy of digital engagement with the region. Australia was quick to recognize the ongoing digital boom across members of the Association of Southeast Asian Nations (ASEAN) that is slowly driving this highly heterogenous region towards closer economic integration. Based on a number of “sunrise industries”, Australia is already working on creating synergies in fields the country expects the fastest development going forward, from AI to fintech and digital infrastructure.

The role of regional digital governance structures

Australia is thus well-positioned in the region from a policy point of view – a position that gains extra weight by the fact that it is also host to numerous policy organizations and forums crucial in deciding the future direction of digitalization in the Asia-Pacific. Notably, the Asia Pacific Network Information Centre (APNIC) is located in the country, a non-governmental organization that is one of the world’s five regional internet address registries (RIRs) and as such a cornerstone in the global digital governance infrastructure.

APNIC will be electing a new Executive Committee during the Asia Pacific Network Technology Summit ( APRICOT ) from 17 February to 3 March, which could influence the region’s policy framework for years to come. The election involves three seats with more than 10 candidates , some of which with a proven track-record of working towards reducing internet access inequalities. For example, Lu Heng , the CEO of LARUS – the largest IP address solution provider in Asia – has spent more than a decade in internet regulation and governance, including with other RIRs, with a view towards increasing inclusivity.

Running under the mantra “One World, One Internet”, Lu’s stated vision is one that recognizes the obvious importance of the Internet while being aware of its challenges, notably including the fact that it’s not accessible to everyone, particularly in developing countries. This is holding people, and entire countries, back at a crucial time, meaning that Lu’s intent to promote digital globalization, a “world where everyone has access to the Internet regardless of their race, socioeconomic status, or beliefs” is a timely priority.

Closing the inequality chasm

Reaching those who have so far been left behind the digitalization race must therefore be a goal not only for governments but for key institutions such as APNIC as well. A look into even the near future demonstrates that it’s high time to do so. With the world inevitably moving to digital economies and transformation at exponential rates, improving digital skills for millions of people is no longer optional.

The need for digital talent is set to rise precipitously in the coming years, which means that comprehensive and integrated approaches are needed to not only provide the required infrastructure for internet access but to rapidly foster digital literacy among marginalized groups. Only then can Southeast Asia maintain the current growth momentum which could lead to a social transformation for the better for millions.

Australia, as a leader in the Asia-Pacific, now has the opportunity to use its power to guide this development along positive, more equal lines for the future.