Examining the Impact of Digital Transformation on Achieving Global Sustainability Targets in Developing Economies

Abstract

The pressure to achieve global sustainability agendas, as identified in frameworks such as the United Nations Sustainable Development Goals (SDGs), is another major challenge for developing economies due to limited resources, institutional incompatibilities, and technology imbalances. Digital transformation has become a central enabler, accelerating progress towards these sustainability objectives through enhanced efficiency, transparency, and sustainable growth. The paper focuses on how digital transformation can contribute to global sustainability goals and to the development of emerging economies, with particular attention to its economic, social, and environmental aspects. It is grounded on a comprehensive review of the empirical literature, policy reports, and case-based evidence. It investigates how to apply digital technologies (big data analytics, artificial intelligence, blockchain, and digital platforms) to achieve improved governance, sustainable resource management, financial inclusion, and affordable access to essential services, including healthcare, education, and clean energy. The research findings indicate that digital transformation can also be a useful tool for advancing sustainability by simplifying production processes, decarbonizing the environmental footprint, enhancing institutional accountability, and supporting decision-making with data. However, the paper also notes the most notable challenges that may hinder the above benefits, including low-quality digital infrastructure, skill shortages, cyberattacks, regulatory concerns, and the digital divide. As the paper points out, exclusionary digital strategies can still exacerbate the socioeconomic inequalities that already exist in the wake of digital transformation. Consequently, policy interventions, capacity-building activities, and investments in digital infrastructure are needed to make global sustainability goals work to the advantage of digital transformation and, in equal measure. The implications of the findings can be very useful to policymakers, development practitioners, and researchers interested in using digital innovation to achieve sustainable development in developing economies.