Narrowing the Economic Gap: The Impact of Technological Innovation on Access and Welfare of the Poor

Abstract

Technological innovation has great potential to improve economic welfare and reduce poverty, especially for people in lower socioeconomic strata. However, despite the rapid development of technology, inequality of access remains a major challenge to equitable distribution of its benefits. Access to technology in various sectors of the economy is often limited by inadequate infrastructure, lack of digital skills, and high costs of accessing technology tools. This causes limitations for the poor to utilize technology to improve their productivity, income and welfare. Therefore, a key challenge is how to ensure that low socioeconomic groups can access and utilize technology effectively. The importance of policies that support equitable access to technology, such as the provision of affordable digital infrastructure, digital skills training programs, and collaboration between the government, private sector, and civil society, are key to creating economic justice. Without concrete measures to address these access gaps, technology risks exacerbating existing inequalities rather than reducing them. For this reason, strengthening the community's capacity to access and utilize technology can be a long-term solution to achieve equitable economic welfare at all levels of society.