Asia-Pacific Sustainable Development Journal - Current Issue

This paper explores how digitalization can serve as a catalyst for inclusive growth cross Asia and the Pacific. Drawing on empirical and qualitative research presented t the Asian Think Tank Forum 2024, it examines the transformative potential of igital technologies in trade, finance, services and innovation. It highlights the cceleration of digital adoption in the wake of the coronavirus disease (COVID-19) andemic and its implications for productivity, international trade and financial nclusion, while also addressing persistent digital divides and regulatory challenges.

This paper investigates the impact of the digitalization of productivity in developing countries. While digitalization prompts economic growth by improving labour productivity, digital inclusion is likely to have heterogeneous impacts. Understanding this heterogeneity allows for meaningful policy formulation.

Trade and, by extension, trade agreements have become increasingly complex with the rise of digital technologies.

Employing rich survey data on 836 Indian microfirms, we examine the nexus between digital adoption, firm performance and internationalization. Using 12 unique parameters that capture the multidimensional nature of digitalization, we find that the Internet plays a significant role in improving firm sales, performance and export participation. Furthermore, we find that the use of social media has a significant association with increases in firm sales and output per worker. Furthermore, the use of digital technologies for purchasing and tracking inputs and for paying suppliers is positively associated with a greater propensity for Indian microfirms to export.

This paper contains an examination of the digital skills landscape in Indonesia undertaken using the survey on the country’s digital society index. The survey was conducted across 514 districts/cities in 38 provinces and received responses from almost 30,000 individuals and firms. It highlights the importance of digital skills in achieving the Golden Indonesia 2045 Vision and provides insights into four key pillars of digital society: infrastructure and ecosystem; skills; empowerment; and jobs. The findings serve as a fundamental basis for formulating digital skills policy strategies in order to bridge digital divides and enhance workforce competitiveness.

In this paper, the author examines the opportunities and challenges faced by small and medium-sized enterprises (SMEs) in cross-border e-commerce. Drawing on the identification by the Organisation for Economic Co-operation and Development of 47 internal and external trade barriers, the author highlights the complexity of SME participation in international markets and reviews how specific e-commerce solutions have helped mitigate some of these barriers. Three strategic approaches for government intervention are proposed: (1) adopting targeted support measures tailored to the diverse needs of SMEs, including export promotion and partnerships with integrated e-commerce platforms; (2) implementing pilot projects to test and refine policy interventions; and (3) leveraging regional frameworks, in particular the Framework Agreement on Facilitation of Cross-border Paperless Trade, to enhance SME engagement in Asia and the Pacific.

Micro-, small and medium-sized enterprises (MSMEs) account for 40 per cent of the gross domestic product, 25 per cent of the trade and 60–70 per cent of the employment in the Asia-Pacific region. Women-owned MSMEs alone comprise nearly 50 per cent of the total employment in the region. The e-commerce market of Asia and the Pacific, one of the fastest growing, is projected to reach a value of US$6.15 trillion by 2030. Many policies/incentives have been implemented by Asia-Pacific countries to help MSMEs, including women-owned MSMEs, to integrate into global value chains through e-commerce. This paper presents trends on the use of e-commerce platforms for cross-border trade by MSMEs, including women-owned MSMEs; provides examples of policies and scalable best practices; identifies barriers to trade and gaps in trade agreements; and makes recommendations for enhancing MSME participation in global value chains.

In this paper, the author examines the relationship between women’s labour force participation rates and digitalization in Asia-Pacific countries, utilizing World Bank data from 1991 to 2023. The analysis reveals that digitalization, measured by Internet users as a percentage of the population and mobile subscriptions per 100 people, has a significant positive impact on labour force participation. Women’s time use plays a critical role in influencing labour force participation rates, as women in the Asia-Pacific region spend a disproportionate amount of time on unpaid domestic work and care services, which limits their availability for formal employment and negatively affects their participation in the labour force. This underscores the need for improved time-use surveys.

Advancements in artificial intelligence (AI) and financial technologies (fintech) are transforming digital finance with innovations in personalized products, fraud detection, accessibility and risk management. However, these innovations require sensitive customer data, raising privacy and security concerns. Federated learning (FL) offers a solution by enabling institutions to train AI models locally, sharing only model updates and minimizing data-sharing risks. This paper contains an exploration of how FL can advance AI-driven innovation while ensuring privacy compliance, in particular in Asia, by analysing FL key use cases, including personalized recommendations, fraud detection and credit scoring. We then propose frameworks for FL platform assessments and stakeholder analysis for policy recommendations to enhance data security, regulatory compliance and ethical guidelines for responsible innovation in digital finance.

In this study, the author reviews the wellbeing budgets of the government of New Zealand (2019 to 2023) in education, health, housing and social development. Health spending was efficient; however, the variances in education and housing were unfavourable due to a policy hangover, underfunding and a costly national homelessness strategy. The “Well Child Tamariki Ora” programme showed mixed results with regional disparities. Pre-wellbeing budgets were focused on immediate outcomes, neglecting long-term wellbeing. Following the introduction of wellbeing budgets, collaboration increased, especially for Māori, but regional healthcare access issues persisted. Social development overspend was attributable to housing support and pandemic aid. The study highlights the need for coordinated efforts across ministries and budgeting for uncertainties.

The SIDS Accelerated Modalities of Action (SAMOA) Pathway (2014) supports sustainable development in Pacific small island developing States, yet Tonga lacks circularity metrics to inform its nationally determined contributions. This study quantifies the circularity rate and socioeconomic metabolism of Tonga using economy-wide material flow analysis, integrating data from the International Resource Panel with national statistics. Findings reveal high import dependence and zero circularity, with excess biomass waste left unutilized rather than converted into fertilizers or energy. The study highlights the potential for biomass valorization, and it recommends policies to reduce import reliance, enhance material efficiency and promote a circular economy to challenge the country’s linear consumption model.

This special theme issue of the Asia-Pacific Sustainable Development Journal (APSDJ), titled Digitalization as an Opportunity for Inclusive Growth in Asia and the Pacific has greatly benefited from the support by the Regional Cooperation and Integration Division (ERCI) of the Economic Research and Development Impact Department (ERDI) at the Asian Development Bank (ADB), and Trade, Investment and Innovation Division (TIID) of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).