USING THE OPPORTUNITIES OF THE DIGITAL ECONOMY TO REDUCE POVERTY.

Abstract

Poverty remains one of the most pressing global challenges, limiting access to essential services such as education, healthcare, and adequate living standards. In recent years, the rapid expansion of the digital economy has introduced new opportunities for poverty reduction by enhancing financial inclusion, expanding employment opportunities, and improving access to public services. This study examines the role of digital technologies in alleviating poverty, drawing on recent empirical and theoretical research. Findings indicate that digital tools—such as mobile internet, fintech solutions, and online labor platforms—enable individuals, particularly in developing countries, to access markets, manage financial risks, and participate in economic activities more effectively. However, the benefits of digitalization remain unevenly distributed due to persistent digital divides in access, infrastructure, and skills. A significant portion of the global population still lacks internet connectivity and digital identification, limiting their participation in the digital economy. Furthermore, rapid technological advancements, including artificial intelligence, are transforming labor markets and increasing the demand for digital competencies, posing both opportunities and risks for vulnerable populations. The study emphasizes that without inclusive policies, investments in digital infrastructure, and the development of human capital, digitalization may exacerbate existing inequalities rather than reduce poverty. Therefore, effective government strategies, institutional frameworks, and international cooperation are essential to ensure that the digital economy contributes to inclusive and sustainable development. This research contributes to the growing body of literature by highlighting both the potential and limitations of digital transformation as a tool for poverty reduction.