
In today’s rapidly evolving world, digital transformation is no longer a luxury — it is an absolute necessity. Yet, as highlighted by the World Bank at the recent Global Digital Summit 2025, while digital technologies are accelerating economic and social progress for many, a staggering 2.1 to 2.6 billion people — nearly one-third of the global population — remain disconnected. This divide poses a serious risk, not just to individuals, but to global development itself.
The Risk of a Widening Digital Divide
When significant portions of the population lack access to digital infrastructure, it creates a ripple effect of inequalities:
Economic marginalization: Without connectivity, people in remote or underserved areas miss out on job opportunities, market access, and entrepreneurial growth.
Educational barriers: E-learning platforms and knowledge hubs are out of reach, widening the knowledge gap between connected and unconnected communities.
Social exclusion: Digital tools enable civic participation, social dialogue, and access to government services. Those without connectivity risk remaining voiceless.
The World Bank’s growing emphasis on digital transformation — underscored by the establishment of its Digital Vice Presidency — reflects the urgent need to tackle these challenges head-on.
Why Digital Transformation Must Be Central to Development
Digital transformation has immense potential to drive economic growth, create markets, improve trade, and foster welfare in both developed and developing nations. But this transformation must be approached strategically:
1. Connectivity for All:
The core challenge remains building robust digital infrastructure that reaches the last mile — from urban centers to the most remote rural villages.
According to ITU data, while global internet penetration reached 66% in 2023, the gap between developed nations (91%) and least developed countries (38%) is stark.
2. Empowering Local Economies:
Digital platforms can open up new markets for small businesses and artisans in developing countries.
Initiatives like e-commerce expansion, digital payments, and digital public services can enhance both productivity and welfare.
3. Creating Jobs and Future Opportunities:
World Bank studies show that a 10% increase in broadband penetration in developing countries can boost GDP growth by 1.38%.
Digital skills development is critical to ensure that people are not left behind by automation and AI.
The Role of Artificial Intelligence in Inclusive Development
AI holds great promise in transforming healthcare delivery, education access, and public services — particularly in developing countries. However, the World Bank rightfully points out the risks associated with AI deployment:
Bias and inequality: AI systems trained on non-representative data can reinforce existing inequalities.
Job displacement: Without careful policy frameworks, AI could exacerbate unemployment in vulnerable sectors.
Therefore, AI’s integration into development efforts must be done with caution, ensuring fairness, inclusivity, and sustainability.
The World Bank’s Approach: Action Over Words
The World Bank has rapidly expanded its digital portfolio, not only through infrastructure projects but also via research, policy guidance, and on-ground engagement with partner countries. This includes:
Investing in digital public infrastructure (DPI): Helping countries build secure digital ID systems, interoperable payment systems, and data governance frameworks.
Capacity building: Supporting governments and private sectors in developing digital literacy and local digital innovation ecosystems.
Global dialogues: Platforms like the Global Digital Summit provide critical opportunities to share best practices and discuss common challenges.
The Road Ahead
The World Bank’s message is clear: digital transformation cannot be an afterthought. It must sit at the heart of global development strategies. But this transformation must be inclusive and sustainable — connecting the disconnected, empowering marginalized communities, and avoiding the pitfalls of exclusion.
A world where billions remain offline is a world where inequality thrives. As policymakers, private-sector leaders, and development institutions come together, the challenge is to not only accelerate digital connectivity but to ensure that this connectivity brings opportunity and prosperity for all.
The digital future is here — but will it be a shared future? That question will define the next decade of global development.
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