Knowledge Economy and the Digital Divide in Asia

The rapid rise of the knowledge-based economy has resulted in an increasing gap between knowledge "haves" and "have nots", a phenomenon now widely referred to as the digital divide. This divide has become particularly apparent in Asia, a region that is home to some of the highest and lowest digital technology penetration rates in the world. Failing to adequately bridge this divide will inevitably result in greater disparities among the economies of the region. This paper provides an overview of the driving forces and key characteristics of the knowledge economy. It outlines some of the opportunities and challenges the knowledge economy presents to policy makers, societies, businesses and individuals alike. Emphasis in this paper is given to the need for assessing "e-readiness" as a critical first step in initiating any major developmental effort. This is accompanied by a broad-based assessment of the level of e-readiness in Asia, along with an examination of the crucial link between income levels and telecommunications service costs with digital connectivity. Concrete examples of actions being undertaken by non-profit organizations, corporations and individuals to bridge the digital divide in Asia are then presented, followed by some concluding remarks.