The idea that emerging digital technologies are key requirements for sustainable development is not new.
For years, the World Economic Forum has continually reiterated the need for governments and larger private institutions to adopt digital transformation as a way of meeting sustainable development goals and tackling bigger long-term issues such as climate change and economic inequality.
This view has also been largely shared by the United Nations and many of the world’s leading academics.
The past few Philippine government administrations also share this view. In recent years, the national government and various LGUs have already engaged private sector partners such as Aboitiz InfraCapital (AIC) to improve the Philippines’ digital infrastructure with the ultimate goal of facilitating equitable and sustainable development in the country.
Amidst the COVID-19 pandemic, in particular, AIC has grown to be a major player in the country’s efforts towards achieving digital transformation. The company’s investments in small cell sites and common tower projects have proven instrumental in boosting digital communications across the Philippines.
All this being said, the question as to how digital transformation will result in sustainable development still remains. To answer this, this short guide will summarize some of the ways digital evolution will help countries achieve their sustainable development goals.
1.) It Removes Barriers That Limit Job Opportunities
High domestic employment has to be achieved before sustainable development can begin in earnest. Unemployment and underemployment reduce economic activity and value creation which, in turn, makes it difficult to achieve sustainable development.
Through the expansion of digital infrastructure, Philippines’ development partners could create the conditions needed to improve domestic employment.
With better digital connections, access to knowledge, training, and jobs will no longer be as limited by geography or economic status.
Additionally, digital transformation will create more equitable access to both global and domestic markets, enabling greater entrepreneurship and trade, thus, increasing employment opportunities.
2.) Digital Transformation Expands Freedom of Expression
Digital transformation will not just increase a country’s economic power but also its population’s sociopolitical power—a key component of sustainable development.
Digital access lays the foundations for true freedom of expression, allowing normally disenfranchised and economically disadvantaged individuals to finally have a meaningful voice.
Even modest digital transformation has proven itself to be a great equalizer, giving ordinary citizens more of a say in the policy directions of their home countries than was ever possible before the internet.
This louder voice can be critical for ensuring that development does not unnecessarily infringe on the rights of communities or create long-term environmental problems.
3.) It Brings People into the Financial System
In developing and middle-income countries, there remains a widespread mistrust of financial institutions, hampering the ability of these organizations to fund development and entrepreneurship endeavors.
The expansion of digital infrastructure and the convenience it brings to personal finance will be key to encouraging more individuals to become a part of mainstream financial systems.
Regardless of whether an individual ultimately chooses to use a traditional bank or a newer fintech business, the entry of more people into mainstream finance will be important for reducing the risks of business and entrepreneurship.
Widespread adoption of digital finance will also enable the more efficient processing of various important services, reducing the burden on both individuals and institutions, and ultimately making it easier to shift to more sustainable ways of facilitating development.
4.) It Improves Access to Healthcare
Adding digital infrastructure can effectively increase access to medical services through telemedicine. Telemedicine services and improved access to medications will be a boon to communities without immediate access to a doctor or medical facilities.
Soon, digital transformation may become key to effective preventative medicine, improving the overall health of a population while simultaneously reducing the cost of healthcare.
This more efficient delivery of preventative healthcare can also reduce the financial, time, and labor burden associated with palliative care, setting the stage for more sustainable health care models.
5.) Digital Transformation Prevents Labor Flight and Maintains Family Connections
Labor flight is a serious issue affecting many developing and middle-income countries. The people emigrating from their home countries in search of a better way of life are typically the most productive individuals in their country.
While they may deliver value to their home country through remittances, the bulk of their productive value will go to their host economies. Their migration also reduces the integrity of family units, putting young children at a developmental disadvantage and creating long-term social repercussions along the way.
Digital transformation can empower more individuals to earn a decent income in their home countries, reducing the motive to migrate elsewhere.
This allows them to create more value domestically and prevents capital flight over the long-term. This also has the effect of preserving families, enabling the next generation to have a better chance at becoming more productive and self-actualized adults.
6.) Digital Transformation is a Requisite for the Internet of Things
The Internet of Things (IoT) is a technology trend that is already changing everything about how societies function.
Even now, it is enabling substantial efficiency gains in agriculture, energy production, water management, and the distribution of services. In other words, the Internet of Things is creating the very conditions needed for efficient and sustainable development.
However, for the IoT to bring its full benefits to a population, affordable and high-quality digital connectivity must become universal.
To enjoy the benefits of the IoT, it is not enough for every individual to own a smartphone—they must also be able to use it to connect to the internet wherever they may be in the country, without any difficulties related to cost or connection quality.
A well-directed digital transformation involving both the public and private spheres may very well be the single biggest factor that will empower countries to shift toward sustainable development.
In middle-income countries such as the Philippines, this transformation may even enable a quality of life comparable to highly industrialized economies for just a fraction of the resources it used to take.
With this in mind, funding wider digitalization in support of sustainable development should be something policymakers and business leaders take seriously.
