PROSPECTS FOR POVERTY REDUCTION IN THE DIGITAL ECONOMY

Abstract

The rapid expansion of the digital economy is reshaping global development pathways and creating new opportunities for poverty reduction. This study examines how digital technologies contribute to improving income generation, financial inclusion, and human capital development. It also analyzes key challenges such as the digital divide, unequal access to infrastructure, and disparities in digital skills. The findings suggest that while digital transformation enhances economic participation and access to services, its poverty-reducing effects are not automatic and depend on inclusive policies and institutional support. Without targeted interventions, digitalization may reinforce existing inequalities. The study concludes that leveraging the full potential of the digital economy for poverty reduction requires coordinated efforts in infrastructure development, education, and regulatory frameworks to ensure equitable access and sustainable growth.