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	<title>Inter Press ServiceAnne Cortez - Author - Inter Press Service</title>
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		<title>How do we Navigate Asia-Pacific’s Climate-Cyber Polycrisis?</title>
		<link>https://www.ipsnews.net/2026/03/how-do-we-navigate-asia-pacifics-climate-cyber-polycrisis/</link>
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		<pubDate>Tue, 03 Mar 2026 09:52:05 +0000</pubDate>
		<dc:creator>Anne Cortez</dc:creator>
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		<description><![CDATA[Communities globally are increasingly exposed to overlapping threats. Extreme weather, health emergencies and cyberattacks are occurring more frequently and simultaneously, often interacting in ways that amplify risks and strain response systems. Experts describe this as a polycrisis, where threats converge, creating a complex pressure point for governments, businesses and communities. Today, a polycrisis is brewing [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="158" src="https://www.ipsnews.net/Library/2026/03/The-effects-of-Typhoon_-300x158.jpg" class="attachment-medium size-medium wp-post-image" alt="How do we Navigate Asia-Pacific’s Climate-Cyber Polycrisis?" decoding="async" srcset="https://www.ipsnews.net/Library/2026/03/The-effects-of-Typhoon_-300x158.jpg 300w, https://www.ipsnews.net/Library/2026/03/The-effects-of-Typhoon_.jpg 624w" sizes="(max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">The effects of Typhoon Odette in Lapu-Lapu City, Cebu, Philippines, 2021. Credit: Unsplash/Carl Kho</p></font></p><p>By Anne Cortez<br />MANILA, Philippines, Mar 3 2026 (IPS) </p><p>Communities globally are increasingly exposed to overlapping threats. Extreme weather, health emergencies and cyberattacks are occurring more frequently and simultaneously, often interacting in ways that amplify risks and strain response systems.<br />
<span id="more-194233"></span></p>
<p>Experts describe this as <a href="https://www.weforum.org/stories/2023/03/polycrisis-adam-tooze-historian-explains/" target="_blank">a polycrisis</a>, where threats converge, creating a complex pressure point for governments, businesses and communities.</p>
<p>Today, a polycrisis is brewing at the intersection of climate change and cybersecurity. The latest <a href="https://www.weforum.org/publications/global-risks-report-2025/" target="_blank">Global Risks Report</a> by the World Economic Forum ranks extreme weather and natural disasters among the top global threats, while risks linked to digital and artificial intelligence have climbed up the list. </p>
<p>Over the next decade, these environmental and technological dangers are expected to dominate, underscoring how deeply intertwined they have become.</p>
<p>Asia and the Pacific is increasingly becoming a hotspot for these twin threats. The world’s most <a href="https://www.adrc.asia/publications/databook/ORG/databook_2023/pdf/DataBook2023.pdf" target="_blank">disaster-prone region</a>, it faced the highest number of disasters and deaths in 2023, with 66 million people affected and <a href="https://rrp.unescap.org/economic-impacts/economic-impact" target="_blank">annual losses</a> reaching an estimated US$780 billion. At the same time, the region has become the new <a href="https://www.weforum.org/stories/2023/06/asia-pacific-region-the-new-ground-zero-cybercrime/" target="_blank">ground zero</a> for cybercrime, fuelled by rapid digital transformation during and after the pandemic. </p>
<p>In 2024, it accounted for over <a href="https://www.crnasia.com/news/2025/cybersecurity/asia-pacific-had-the-most-cyberattacks-in-2024" target="_blank">one-third of all global cyber incidents</a>, including roughly 135,000 ransomware attacks in <a href="https://broadsheet.asia/2025/04/24/southeast-asia-faces-rising-ransomware-threat-as-attacks-surge-in-2024" target="_blank">Southeast Asia</a> alone, costing the region an average of US$3.05 million per attack. The Philippines, Indonesia and Vietnam were among the most affected.</p>
<p>Asia’s geographic exposure and rapid digital growth have turned its climate vulnerability into a growing cyber vulnerability, especially across critical infrastructure and information systems. </p>
<p>As essential services including health, communications and energy depend on digital networks, climate-driven disruptions such as typhoons and floods can force systems into manual workarounds or less secure channels, creating openings for digital breaches at the worst possible moment. </p>
<p>The <a href="https://en.wikipedia.org/wiki/2011_T%C5%8Dhoku_earthquake_and_tsunami" target="_blank">9.1 magnitude earthquake</a> and tsunami in Japan in 2011 provided an early glimpse into the interconnected climate-cyber risks. In weeks following the earthquake, <a href="https://thediplomat.com/2011/07/japans-cybercrime-problem/" target="_blank">cyber criminals</a> exploited the chaos with phishing and malware schemes disguised as disaster relief efforts, stealing data and hindering recovery.</p>
<p>So far, cases in the region have largely involved natural hazards, but climate change is intensifying these events, increasing their frequency and severity and placing sustained stress on digital infrastructure, which in turn creates more openings for cyber attacks. </p>
<p><a href="https://www.gfz.de/en/press/news/details/mehr-erdbeben-durch-menschengemachten-klimawandel" target="_blank">Some researchers</a> suggest that, contrary to prevailing beliefs, climate change is expected to increase the frequency and severity of earthquakes and volcanic eruptions in addition to other extreme weather events, and all of these events have been linked to spikes in cyber incidents.</p>
<p><a href="https://ieeexplore.ieee.org/abstract/document/10500233" target="_blank">Research</a> shows that the likelihood of cyberattacks increases dramatically during natural disasters, as defensive systems and attention are compromised. In the <a href="https://www.cisa.gov/news-events/alerts/2024/09/25/cisa-warns-hurricane-related-scams" target="_blank">United States</a>, for instance, <a href="https://consumer.ftc.gov/features/dealing-weather-emergencies#stayingalert" target="_blank">government agencies</a> and researchers have warned the public of heightened digital threats including scams following hurricanes and wildfires, demonstrating how climate hazards can create openings for malicious actors. </p>
<p>When these vulnerabilities are exploited, response and recovery efforts can be paralysed at the very moment they are most needed.</p>
<p>This convergence of vulnerabilities changes the nature of disaster risk. The UN Office for Disaster Risk Reduction now includes cyber threats in its <a href="https://www.undrr.org/media/47578/download?startDownload=20251022" target="_blank">hazard taxonomies</a> because losses of connectivity and cyber incidents reshape exposure and coping capacity. Treating these threats separately leaves significant gaps in preparedness and response.</p>
<p>Across the Caribbean, interest in the climate-cyber convergence has grown, with governments and partners conducting <a href="https://eptanetwork.org/database/projects/1194-the-impact-of-cyberattacks-fintech-and-climate-changes-on-future-financial-stability" target="_blank">assessments</a>, <a href="https://www.lac4.eu/discussing-cyber-climate-coverence-in-the-caribbean/" target="_blank">dialogues</a> and <a href="https://blogs.worldbank.org/en/latinamerica/earthquake-tropical-storm-epidemic-outbreak-cyber-central-america" target="_blank">scenario planning</a> to strengthen shared resilience and ensure that physical and digital systems can withstand compounded shocks. In Europe, <a href="https://www.scirp.org/journal/paperinformation?paperid=93271" target="_blank">researchers are drawing lessons</a> from environmental law to inform and strengthen cybersecurity policies. </p>
<p>Given these global developments, it is concerning that <a href="https://cop30.br/en/news-about-cop30/cop30-highlights-technology-as-a-strategic-ally-in-tackling-the-climate-crisis#:~:text=On%20the%20first%20day%20of%20the%20conference%2C,climate%20change%20took%20center%20stage%20in%20the" target="_blank">the recent COP30</a> focused heavily on how technology can support climate adaptation, yet paid less attention to how the same systems become vulnerable during climate-driven disruptions. </p>
<p>Even more worrying is that Asia and the Pacific, despite being highly exposed to both disaster and cyber risk, has not yet shown the same level of integrated response or public alarm seen elsewhere.</p>
<p>The region has robust frameworks for disaster and climate resilience under the <a href="https://www.undrr.org/implementing-sendai-framework/what-sendai-framework" target="_blank">Sendai Framework for Disaster Risk Reduction</a>, implemented through regional <a href="https://asean.org/wp-content/uploads/2022/06/ASEAN-Framework-on-Anticipatory-Action-in-Disaster-Management.pdf" target="_blank">action plans</a>, <a href="https://seadrif.org/news/asean-asia-first-regional-climate-disaster-risk-financing-facility/" target="_blank">financing facility</a> and <a href="https://www.iges.or.jp/en/pub/project-strengthening-institutional-and-policy" target="_blank">cooperation programs</a>. </p>
<p>At the same time, ASEAN and its partners have cybersecurity <a href="https://asean.org/our-communities/economic-community/asean-digital-sector/key-documents/" target="_blank">policy guidelines</a> that cover digital governance, data management and response to transboundary cyber threats. However, these tracks largely operate in parallel, missing opportunities for integration. </p>
<p><a href="https://www.guycarp.com/insights/2025/09/climate-change-x-cyber-an-intertwining-risk.html" target="_blank">Reports</a> highlight gaps in how climate and cyber risks are managed and financed. Agencies still work in silos, with little joint analysis or shared data, and insufficient tools, financing and capacity to manage combined climate-cyber risks.</p>
<p>Asia and the Pacific has the institutions and expertise to respond, but what is missing is a mindset that treats climate and cyber threats as interconnected. As climate extremes and cyberattacks accelerate, the region cannot continue fighting on two fronts with divided defences.</p>
<p>Building climate-cyber resilience in the region requires integrated planning, strengthened continuity systems and regional cooperation. </p>
<p>First, joint climate-cyber assessments and exercises are needed to map interdependent failures and strengthen coordinated response. </p>
<p>Second, critical services need strong backups, diversified connectivity and tested recovery plans that anticipate physical damage to digital infrastructure, ensuring continuity even during disasters. </p>
<p>Third, financing and cooperation should harmonise reporting for compound events, require safeguards and build pooled insurance, supported by development banks and donors.</p>
<p>The convergence of climate and cyber risks is changing the nature of crises worldwide. Future disasters are likely to involve multiple, interacting shocks rather than isolated events. As this reality enters discussions in platforms such as Davos and ASEAN 2026, attention is turning to the Asia and Pacific region to advance integrated resilience as a policy priority. Delaying action will only compound impacts and put far more lives and futures at risk.</p>
<p><em>This article was originally published <a href="https://devpolicy.org/how-do-we-navigate-asia-pacifics-climate-cyber-polycrisis-20260226/" target="_blank">online</a> at Devpolicy Blog. The Blog is run out of the <a href="http://devpolicy.anu.edu.au/" target="_blank">Development Policy Centre</a> housed in the <a href="http://crawford.anu.edu.au/" target="_blank">Crawford School of Public Policy</a> at <a href="https://www.anu.edu.au/" target="_blank">The Australian National University</a>.</p>
<p><a href="http://linkedin.com/in/annekatherinecortez/" target="_blank">Anne Cortez</a> is a knowledge and communications consultant for the Asian Development Bank&#8217;s climate and health portfolio. She also advises the APAC Cybersecurity Fund, an initiative of The Asia Foundation, on strategic communications and policy priorities. Learn more about her work <a href="https://annecortez.my.canva.site/" target="_blank">here</a>.</em></p>
<p>IPS UN Bureau</p>
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		<title>How Blue Carbon Ecosystems are Saving the Philippines’ Sinking Islands</title>
		<link>https://www.ipsnews.net/2024/11/blue-carbon-ecosystems-saving-philippines-sinking-islands/</link>
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		<pubDate>Wed, 06 Nov 2024 10:02:37 +0000</pubDate>
		<dc:creator>Anne Cortez</dc:creator>
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		<guid isPermaLink="false">https://www.ipsnews.net/?p=187709</guid>
		<description><![CDATA[Imagine living with water up to your knees for half of the year, where homes are flooded, and people constantly fear that the sea might one day engulf the town and everyone in it. This is the reality for the sinking islands in the Philippines—a cluster of four island barangays in Tubigon located in the [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="200" src="https://www.ipsnews.net/Library/2024/11/submerged_2_ok-300x200.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2024/11/submerged_2_ok-300x200.jpg 300w, https://www.ipsnews.net/Library/2024/11/submerged_2_ok-629x419.jpg 629w, https://www.ipsnews.net/Library/2024/11/submerged_2_ok.jpg 630w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Submerged structure in Tubigon, Philippines. Credit: Greenpeace
<br>&nbsp;<br>
<em>In the Philippines, a group of islands is rapidly sinking due to an unprecedented rise in sea levels. This blog dives into how these coastal communities are utilizing marine resources and ecosystems to find solutions and build resilience against climate risks.</em></p></font></p><p>By Anne Cortez<br />KUALA LUMPUR, Malaysia, Nov 6 2024 (IPS) </p><p>Imagine living with water up to your knees for half of the year, where homes are flooded, and people constantly fear that the sea might one day engulf the town and everyone in it.<br />
<span id="more-187709"></span></p>
<p>This is the reality for the <a href="https://www.youtube.com/watch?v=eMGV0-Sm4pA" rel="noopener" target="_blank">sinking islands</a> in the Philippines—a cluster of four island barangays in Tubigon located in the south-central region of Bohol. Here, the sea level is rising at an alarming rate of 10.8 millimeters per year, three times faster than the global average. If this continues, these islands could disappear by 2100.</p>
<p>Tubigon sank by one meter after being hit by a 7.2 magnitude earthquake over a decade ago. While still recovering, the islands were devastated by a <a href="https://reliefweb.int/report/philippines/philippines-super-typhoon-rai-odette-humanitarian-needs-and-priorities-revision" rel="noopener" target="_blank">super typhoon</a> in 2021, unleashing four-meter-high tidal waves that destroyed over 1.7 million homes and displaced more than 3 million people. This year, the islands were declared <a href="https://www.gmanetwork.com/news/lifestyle/content/906461/sinking-island-in-bohol-affects-livelihood-education-of-residents-declared-inhabitable-by-denr/story/" rel="noopener" target="_blank">inhabitable</a> by the government.</p>
<p><em><strong>Existential Climate Threats to Coastal Communities</strong></em></p>
<p>Coastal communities like the Philippines are severely threatened by accelerating sea level rise compounded by extreme weather events. Similar to small island developing states, also known as SIDS, low-lying coastal areas are the most <a href="https://www.nature.com/articles/s41893-023-01230-5" rel="noopener" target="_blank">vulnerable</a> to climate change. </p>
<p>Their geographic location leaves them highly-exposed to natural disasters and hazards like cyclones and tidal flooding. These vulnerabilities exacerbate coastal communities’ unique development challenges. </p>
<p>The Intergovernmental Panel on Climate Change (IPCC) <a href="https://www.ipcc.ch/srocc/chapter/chapter-4-sea-level-rise-and-implications-for-low-lying-islands-coasts-and-communities/" rel="noopener" target="_blank">reports</a> that with the current 1.5 degree temperature increase, global sea levels will continue to rise and low-lying coastal regions are to experience extreme sea events such as storm surges and massive tides annually by 2050. </p>
<p>SIDS, including <a href="https://earth.org/tuvalus-sinking-reality-how-climate-change-is-threatening-a-small-island-nation/" rel="noopener" target="_blank">Tuvalu</a> and the <a href="https://only.one/read/sinking-islands-rising-costs" rel="noopener" target="_blank">Maldives</a>, along with the sinking islands of Tubigon, are proof of the existential threats of climate change. These communities are at risk of vanishing unless urgent action is taken.</p>
<p><em><strong>Bouncing Back from Climate Risks</strong></em></p>
<p>While island communities are under threat, they are <a href="https://carnegieendowment.org/posts/2022/09/why-small-island-states-are-vulnerable-but-not-powerless?lang=en" rel="noopener" target="_blank">not powerless</a>. Many of them have shown commitment to addressing climate-related risks in their national climate action <a href="https://climatepromise.undp.org/sites/default/files/research_report_document/State of Climate Ambition.pdf?_gl=1*15bml2m*_gcl_au*MTk0ODExMjU1NS4xNzIyMjMwMjk1*_ga*MTEyOTIwMTQzOC4xNzAyMDE1MjUy*_ga_3W7LPK0WP1*MTcyMzY0MzYyNS4xMy4xLjE3MjM2NDM3MjQuNjAuMC4w" rel="noopener" target="_blank">plans</a>. Their goal is to build climate resilience.</p>
<p>The term &#8220;resilience&#8221; is often mentioned in climate change discussions, but what does it really mean? It comes from the Latin verb <em><a href="https://www.c2es.org/wp-content/uploads/2019/04/what-is-climate-resilience.pdf" rel="noopener" target="_blank">resilire</a></em>, meaning &#8220;to bounce back.&#8221; Resilience refers to the ability to recover from <a href="https://www.ipcc.ch/site/assets/uploads/2018/03/SREX-Chap2_FINAL-1.pdf" rel="noopener" target="_blank">risks</a>, which, in the context of climate change, is determined by the degree of vulnerability and exposure to climate-related threats. </p>
<p>For coastal communities and low-lying islands, rising sea levels pose a significant risk, so they must build resilience to endure and recover from climate-related hazards and disasters.</p>
<p><em><strong>Turning to Blue Carbon Ecosystems for Solutions</strong></em></p>
<p>Many SIDS set a good example in piloting <a href="https://climatepromise.undp.org/news-and-stories/small-island-developing-states-are-frontlines-climate-change-heres-why">measures</a> to build resilience and adapt to the impacts of climate change. Similarly, the residents of Tubigon, many of whom are fisherfolks, have learned to adapt to the rising tides. </p>
<p>The local community has developed resilience strategies and initiatives to help them sustain their lives on the islands. One promising solution involves utilizing the sea and its resources, part of what is called the <a href="https://www.thebluecarboninitiative.org/#:~:text=The%20Blue%20Carbon%20Initiative%20currently,is%20stored%20in%20the%20soils*.">blue carbon ecosystem</a>. </p>
<p>Blue carbon ecosystem is a collective <a href="https://www.tandfonline.com/doi/abs/10.1080/21664250.2021.1888558">term</a> for natural marine resources such as mangroves, seagrasses, and marshes known for their ability to capture and store carbon dioxide from the atmosphere. <a href="https://www.sciencedirect.com/science/article/pii/S0308597X15003905">Research</a> shows that these coastal resources can transfer and store carbon ten times more effective than tropical forests. </p>
<p>These <a href="https://link.springer.com/article/10.1007/s10584-013-0920-3">ecosystems</a> also support fishery production, protect shorelines and reduce flooding, and provide habitats for wildlife and migratory species. <a href="http://taccire.suanet.ac.tz/bitstream/handle/123456789/146/blue carbon.pdf?sequence=1&#038;isAllowed=y">Studies</a> indicate that conserving blue carbon ecosystems is a timely and cost-effective strategy to help coastal communities adapt to climate change.</p>
<p><em><strong>Harnessing Coastal Resources for Climate Change Adaptation</strong></em></p>
<p>Tubigon and the Bohol region have long implemented measures to protect their blue carbon ecosystems, helping residents adapt to climate-related risks. Their strategy is two-fold: eliminating destructive fishing practices and conserving coastal resources particularly mangroves. </p>
<p>The local community has designated bantay dagat (which translates literally to sea protectors) to patrol its marine area spanning 156 hectares of coral reefs and 335 hectares of mangroves. These protectors report illegal fishing activities and safeguard the mangrove forests. </p>
<p>Over time, many locals have transitioned from destructive fishing methods, such as dynamite and cyanide use, to more <a href="https://aquadocs.org/bitstream/handle/1834/20301/Bohol_opt.pdf?sequence=1&#038;isAllowed=y" rel="noopener" target="_blank">sustainable aquaculture and alternative livelihoods</a>, including crab and squid jigging, grouper farming, and ecotourism.</p>
<p>Moreover, particular focus is given to mangrove conservation. The vast <a href="https://icleiseas.org/index.php/2018/03/28/the-philippine-seas-and-climate-change-unlocking-blue-carbon-solutions-for-a-cooler-planet/" rel="noopener" target="_blank">mangrove</a> area in Tubigon is considered a valuable blue ecosystem resource playing an important role in sequestering carbon. Experts <a href="https://www.tandfonline.com/doi/full/10.1080/21580103.2011.621377" rel="noopener" target="_blank">estimate</a> that a 4-decade mangrove plantation can store over 370 tons of carbon per hectare. </p>
<p>Additionally, mangroves act as natural seawalls, reducing wave energy and shielding residents from rising sea levels and tidal flooding. By investing in the preservation of blue carbon ecosystems, coastal communities like Tubigon tap into an essential resource that supports their livelihoods and enhances their resilience to the effects of climate change.</p>
<p><em><strong>Turning the Tide</strong></em></p>
<p>The islands of Tubigon stay afloat amidst the intensifying battle against climate threats. Most recently, the Philippines joined an <a href="https://www.weforum.org/press/2023/12/the-philippines-joins-blue-carbon-action-partnership-to-strengthen-coastal-ecosystems/" rel="noopener" target="_blank">alliance</a> to build the resilience of coastal communities. It was also selected as the host of a <a href="https://unfccc.int/loss-and-damage-fund-joint-interim-secretariat" rel="noopener" target="_blank">fund</a> dedicated to supporting countries to respond to loss and damage, enabling them to recover and rebuild from the adverse effects of the climate crisis. </p>
<p>Allowing islands to sink and entire communities to disappear is unimaginable, especially when we have the resources and tools to address the planet&#8217;s most significant crisis. Time is running out, but there is still hope to turn the tide.</p>
<p><em><strong>This article is originally published in <a href="https://globaldev.blog/how-blue-carbon-ecosystems-are-saving-the-philippines-sinking-islands/" rel="noopener" target="_blank">Global Dev</a> as part of its Climate Resilience series.</strong></em></p>
<p><em><strong>Anne Cortez</strong> is a communications and knowledge management consultant with over a decade of experience working with governments, academic institutions, and international organizations including the UN, ADB, and The Asia Foundation. She has spearheaded and managed development programs and capacity building initiatives promoting climate action, digital inclusion, and health equity across Asia and the Pacific. Previously, she led the knowledge and communications team at the UN think tank for global health based in Malaysia, and the social mobilization division at the Department of Education in the Philippines. Anne has a master’s degree in international studies and an undergraduate degree in communications. <a href="https://bit.ly/annecortez" rel="noopener" target="_blank">Learn more about her work here</a>.</em></p>
<p>IPS UN Bureau</p>
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		<title>Role of Regional Economic Cooperation in Inclusive Digital Transformation in Asia</title>
		<link>https://www.ipsnews.net/2023/02/role-regional-economic-cooperation-inclusive-digital-transformation-asia/</link>
		<comments>https://www.ipsnews.net/2023/02/role-regional-economic-cooperation-inclusive-digital-transformation-asia/#respond</comments>
		<pubDate>Tue, 21 Feb 2023 09:08:24 +0000</pubDate>
		<dc:creator>Hsiao Chink Tang  and Anne Cortez</dc:creator>
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		<guid isPermaLink="false">https://www.ipsnews.net/?p=179580</guid>
		<description><![CDATA[Digitalization is a key driver of competitiveness and development. As the world takes the path to unprecedented digital advancement, Asia continues to be a powerhouse of digital transformations in a wide range of areas from microchip manufacturing to electric vehicles, from digital currency to e-commerce. Coronavirus (COVID-19) pandemic has accelerated digital transformations, but not all [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="189" src="https://www.ipsnews.net/Library/2023/02/Farmer-using-tablet_-300x189.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2023/02/Farmer-using-tablet_-300x189.jpg 300w, https://www.ipsnews.net/Library/2023/02/Farmer-using-tablet_.jpg 372w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text"><a href="https://www.istockphoto.com/en/photo/farmer-using-tablet-to-contact-customer-in-orchard-gm1451689545-488319517?phrase=farmer%20asia%20ecommerce" rel="noopener" target="_blank">Farmer using tablet to contact customer/ iStock</a></p></font></p><p>By Hsiao Chink Tang  and Anne Cortez<br />BEIJING, The People’s Republic of China, Feb 21 2023 (IPS) </p><p>Digitalization is a key driver of competitiveness and development. As the world takes the path to unprecedented digital advancement, Asia continues to be a powerhouse of digital transformations in a wide range of areas from microchip manufacturing to electric vehicles, from digital currency to e-commerce.<br />
<span id="more-179580"></span></p>
<p>Coronavirus (COVID-19) pandemic has accelerated digital transformations, but not all countries have benefitted equally. For example, <a href="https://www.chinadaily.com.cn/a/202202/23/WS6215a0d0a310cdd39bc886b2.html" rel="noopener" target="_blank">rural farmers</a> in the People’s Republic of China (PRC) were able to take advantage of existing digital mobile network, digital payment, and logistic services to find alternative markets and sell their produce online. </p>
<p>Many <a href="https://www.technologyreview.com/2020/05/06/1001186/china-rural-live-streaming-during-cornavirus-pandemic/" rel="noopener" target="_blank">turned</a> to established e-commerce platforms, such as, Pinduoduo, Taobao, and JD, and doing so innovatively via live-streaming. </p>
<p>In contrast, rural farmers in some <a href="https://www.phnompenhpost.com/national/cambodian-farmers-hit-hard-covid-19-pandemic-ngos-find" rel="noopener" target="_blank">other parts</a> of Asia struggled to keep their livelihoods during the pandemic. Without access to face-to-face trades due to lockdowns, let alone selling online, many had to live with little or no income. </p>
<p>Businesses of micro, small, and medium-sized enterprises (MSMEs) in many parts of Asia also suffered during the pandemic. Even in ordinary circumstances, persistent barriers such as poor and costly infrastructure, poor digital literacy, and limited government support hinder the growth of MSMEs in many developing economies. </p>
<p>Inevitably, during COVID, many MSMEs failed to capitalize on the pandemic-triggered digital transformation. </p>
<p>The above are some of the issues discussed in a <a href="https://rksi.adb.org/events/dialogue-on-regional-cooperation-in-promoting-digital-economy-challenges-and-way-forward/" rel="noopener" target="_blank">dialogue</a> organized by the ADB-PRC Regional Knowledge Sharing Initiatives (RKSI) and the Ministry of Finance, the PRC, on the topic of digital transformation and regional cooperation. </p>
<p>The forum acknowledged that despite the many opportunities presented by the digital economy in Asia, a great part of the region’s digital potential remains untapped, and key regulatory, infrastructural, financial, and capacity challenges remain. </p>
<p>There is also a widening digital divide among countries that are under-connected and those that are digitalized.</p>
<p>Prevailing digital infrastructure and non-infrastructure gaps, specifically in e-commerce across Central Asia, are highlighted in a Central Asia Regional Economic Cooperation Program (CAREC) Institute <a href="https://www.carecprogram.org/uploads/Day-1_Session-2_Dr.-Abbas_ENG.pdf" rel="noopener" target="_blank">study</a>. The study shows that e-commerce development among CAREC countries is highly varied and key gaps remain.  </p>
<p>These gaps include those in basic digital infrastructure and regulatory policies resulting in a lack of economic opportunities, income inequality and weaknesses in the business environment. A <a href="https://www.adb.org/news/features/digitalization-six-sectors-can-boost-regional-cooperation-central-asia" rel="noopener" target="_blank">solution</a> to bridge this gap and drive an inclusive digital growth is regional cooperation. </p>
<p>In 2021, ministers from Central Asia Regional Economic Cooperation (CAREC) member countries endorsed the <a href="https://www.adb.org/sites/default/files/institutional-document/777876/carec-digital-strategy-2030.pdf" rel="noopener" target="_blank">Digital Strategy 2030</a>, which identifies areas that can catalyze collaboration and digitalization in the region. Similarly, Greater Mekong Subregion (GMS) countries are considering a <a href="https://www.greatermekong.org/g/sites/default/files/GMS-Building-Digitally-Connected-1-December-2022-single-pages-QRCODE-smallfilesize.pdf" rel="noopener" target="_blank">proposal</a> to promote and enhance cooperation in the digital economy, leveraging on the GMS cross-border e-commerce cooperation platform. </p>
<p>Region-wide cooperation allows governments and stakeholders to coordinate policies, share costs of building and maintaining infrastructure, and expand markets to advance the digital economy. Regional cooperation mechanisms also help build trust and harmonization that are crucial for digital development among countries. </p>
<p>In turn, digital advancement promotes regional cooperation in trade, finance, transport, energy, and other sectors.  To make inclusive digital transformation a reality, cooperation must extend beyond the public sector and encourage collaboration with partners from international organizations, private businesses, MSMEs, civil society, and other stakeholders. </p>
<p>Regional cooperation offers great potential to level the field and ensure that no one is left behind in the digital economy. Regional cooperation also means sharing and learning from country experiences across the region. </p>
<p>There are rich lessons and inspirational stories from not just digital-focused firms, but also individuals with digital skills, who have transformed their lives and that of their families and communities waiting to be heard and shared. </p>
<p>Regional focused platforms such as CAREC, GMS, and RKSI, play a crucial role on this front in facilitating such cross-border knowledge exchanges and partnerships to ensure inclusive and sustainable development, and improve people’s wellbeing.</p>
<p><em><strong><a href="https://www.adb.org/contact/tang-hsiao-chink" rel="noopener" target="_blank">Hsiao Chink Tang</a></strong> is a Senior Economist and <strong><a href="https://www.linkedin.com/in/annekatherinecortez/" rel="noopener" target="_blank">Anne Cortez</a></strong> is a Communication Specialist at the Asian Development Bank-PRC <a href="https://rksi.adb.org/" rel="noopener" target="_blank">RKSI</a>, a south-south development knowledge sharing platform that draws on the PRC’s experience and facilitates knowledge exchange among ADB’s developing member countries.</em></p>
<p>IPS UN Bureau</p>
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