Digital technology can play a critical role in promoting inclusive development and economic resilience for marginalised communities, particularly during the COVID-19 pandemic, a new study found.
The findings , published in the Research Policy Journal, are based on a large-scale randomised control trial (RCT) involving 2,974 participants in Bangladesh. The research examined how access to content-based digital platforms empowers marginalised entrepreneurs and job seekers, increasing their income and resilience.
Compared to the control group, the treatment group experienced a 9.6 percent smaller decline in household income during the global crisis, demonstrating stronger economic resilience. Entrepreneurship activity among the treatment group was 3.1 percent higher than in the control group, indicating greater self-employment capabilities.
It revealed that those who received training in using a content-based digital platform demonstrated significantly higher income resilience and improved employment status during the global crisis as a result of the pandemic.
Poverty is not just about income, it is about exclusion. Our research highlights how digital technology can break down barriers, providing marginalised individuals with opportunities to participate in economic activities that were previously out of reach. The results highlight the potential of digital platforms as cost-effective tools for fostering resilience and inclusivity.
Dr Jianan Lu, University of Portsmouth's School of Accounting, Economics and Finance
Dr Jianan Lu , from the University of Portsmouth's School of Accounting, Economics and Finance said: "Poverty is not just about income, it is about exclusion. Our research highlights how digital technology can break down barriers, providing marginalised individuals with opportunities to participate in economic activities that were previously out of reach. The results highlight the potential of digital platforms as cost-effective tools for fostering resilience and inclusivity."
This study is one of the first RCT -based empirical evidence, on digital technology and inclusive development. It not only evaluates the direct impact of digital skills training but also examines how digital technology lowers economic entry barriers, enhances information access, and strengthens social capital.
The research demonstrated that providing digital training and access to such platforms can have a direct impact on economic empowerment.
The study aligns with the UN's Sustainable Development Goals (SDGs) , particularly the objective of 'leaving no one behind'. It offers important policy recommendations, including:
- Establishing digital skills training schemes for marginalised groups, particularly young people and women.
- Promoting content-based digital platforms as inclusive economic tools.
- Providing targeted support for entrepreneurship and job creation through digital channels.
One key aspect of the study involved the development of Haate Haat ('Hand to Hand' in Bengali), a content-based mobile app inspired by the Chinese platform Kuaishou (Kwai). Unlike other social media algorithms that prioritise influencers and celebrities, Haate Haat allows ordinary users to showcase their businesses and connect with potential customers.
This research has broad implications for policymakers, businesses, development organisations and consumers to bridge the digital divide and foster economic resilience among vulnerable communities.
The paper was written in collaboration by the University of Portsmouth, University of Oxford and University of Birmingham.
