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Digitalization—incorporating digital technologies into several factors of life, business, health, education, and society—continuously transforms economies. The study of Xia et al. (2024) discovered that the digital economy serves as the primary driver of economic growth and development–as proven in advanced countries–since it significantly impacts economic activities, precisely the way people work and interact with each other, fostering flexible arrangements and rising global connectivity. Moreover, a report by the Economist Intelligence Unit (EIU) determined that a 10 percent increase in school connectivity in least-developed countries can improve the effectiveness of years of schooling among children by 6 percent and lead to an increase in GDP per capita by 1.1 percent (Johnson, 2024).

Although the digital economy's importance and internet connectivity have been acknowledged, a digital divide—disparities in how different nations can fully harness the potential of digital technologies—continues. This resulted in over 2.5 billion people globally remaining unconnected. Being unconnected equates to a deprivation of opportunities to learn, communicate, and develop timely and critical skills for the twenty-first-century workplace (Generation Unlimited, 2019).

In the Philippines, the government has recognized digitalization's important contribution and incorporated its acceleration in the 2023-2028 Philippine Development Plan. However, significant disparities still exist between urban and rural areas. From the research of the Philippine Institute for Development Studies, the Digital First Economy (DFE) index, which tracks the growth of attaining a digital-first economy among Asia-Pacific countries, revealed that the country belongs to the first stage called "Adopter," which means that there are existing digital policies on expanding the national digital infrastructure; however, it is concentrated in key city centers (Serafica et al., 2023). As supported by the Philippine Statistics Authority (2020), the National Capital Region (NCR) has the highest internet access rate of 74.6 percent, compared to regions such as Zamboanga Peninsula—which is majorly composed of rural areas—that has the lowest proportion of households with internet access at 28.5 percent. 

The said internet disparities in the country significantly impact Filipinos in rural areas; it limits the opportunities of the rural communities in terms of education, economics, and healthcare, to name a few. Specifically, they lag in academic performance without internet access due to outdated and lacking online learning materials and platforms and fewer-to-zero opportunities for engaging in e-commerce, remote work, and other productive activities. It also limits telemedicine, online healthcare, and other digital government services that are supposedly for all Filipinos (Richest Philippines, 2024).

On a lighter note, the government has projects and initiatives to curb the adverse effects of the digital divide:  the approval of the Philippine Digital Infrastructure Project (PDIP), which aims to increase broadband connectivity nationwide—especially in remote areas—and strengthen cybersecurity through the accomplishment of the national fiber backbone, connecting Metro Manila to Southern Luzon, and the establishment of 772 free Wi-Fi sites across Mindanao. In addition, the Department of Information and Communications Technology (DICT) will provide communities access to digital literacy programs and online government services through the expansion of Tech4ED Centers. Furthermore, public-private partnerships are made to establish Digital Transformation Centers (DTCs) to serve as hubs for ICT skills and literacy training—lastly, a project providing free Wi-Fi in underserved areas (Philippine News Agency, 2025). 

Overall, digitalization is a strong global driver of economic and social transformation. However, in certain countries, especially developing ones like the Philippines, the digital divide continues between urban and rural communities--with rural areas being adversely affected. Although the Philippine government has developed several initiatives to combat these disparities, they still exist. Thus, digital accessibility, education, and infrastructure investments are necessary to guarantee and promote more inclusive and equitable digitalization of the economy. Through it, all communities can participate in and will benefit from the opportunities brought by the digital age.