Technologies

Gender inequality online is ‘expensive for all of us,’ says web inventor’s foundation

Tim Berners-Lee’s Web Foundation hopes governments will be spurred to act upon seeing the economic cost of the digital gender divide.

This story is part of Crossing the Broadband Divide, CNET’s coverage of how the country is working toward making broadband access universal.

When women and girls don’t have access to the internet, it costs governments a lot of money. How much money, exactly, has only been estimated, until now.

New research released Monday by Tim Berners-Lee‘s Web Foundation and its subsidiary, Alliance for Affordable Internet, has calculated that over the past 10 years, 32 low- and middle-income countries have lost $1 trillion by not helping more women get online. Some of those countries include India, Nigeria and the Philippines.

The digital divide is a global problem, but there are still distinct groups that are less likely to have access to the internet. These groups can be defined by their geography, their gender, their race, or all three. Women in low- and middle-income countries are even less likely to have internet access than their male counterparts.

“This report reveals just how expensive gender inequality is for all of us,” Boutheina Guermazi, director of digital development for the World Bank, said in a statement. “For governments looking to build a resilient economy as part of their COVID-19 recovery plans, closing the digital gender gap should be one of the top priorities.”

In the 32 countries the Web Foundation looked at in its report, just over a third of women had access to the internet, compared with almost half of all men. And this divide doesn’t seem to be closing over time, even as digital connectivity plays an increasingly central role in our lives. The coronavirus pandemic has shown how vital it is to have access to internet at home, for everything from remote school to health care. Over the past decade, the gap between the number of women and men online has dropped by only half a percentage point, the Web Foundation’s research says.

The lack of internet access for women means many are excluded from education and employment opportunities, which often keeps them in poverty or other dangerous situations, without access to health care or other assistance. That alone should be enough for governments to want to try to close that gender divide, but that hasn’t always been the case.

Inclusive broadband policies for economic gains

With its new report, the Web Foundation is laying out the cost of the digital gender divide in stark economic terms, in the hope it’ll be the push that governments need to take the problem seriously. According to the report’s calculations, closing the digital gender gap in the next five years could help generate an enticing $524 billion for the economies of the countries studied.

“It is not just good social policy, but it’s also good economics … to include women and girls in the online world,” Teddy Woodhouse, the Web Foundation’s senior research manager for access and affordability, said in an interview. For him, the big test of the report will be whether the information awakens new allies and helps move the needle in closing the digital gender gap. “It’s really trying to be quite practical and thinking about how can we build a case for change,” he said.

Focusing on the broad financial implications is also a way to ensure that the digital gender divide isn’t dismissed by those in power, as gender equality debates so often are, added Ana María Rodríguez Pulgarín, one of the report’s co-authors.

“Sometimes our gender discussions are with politicians that are already working on gender equality, closing the digital gender divide and all that,” she said. “But I think we want to bring the message that this will affect everyone.”

One of the main problems identified in the research as holding women back from getting on the internet is a lack of gender-responsive broadband policy — explicit targets for ensuring women have internet access.

Governments interested in narrowing the digital gender divide have a number of areas to choose from where they implement policy, including rights, education, access and content. Woodhouse pointed to Costa Rica as an example of a country that has implemented such measures by specifically setting targets for getting more women into STEM.

Every year Costa Rica publishes a report on how it’s meeting the targets. “That’s only possible if you’re setting those indicators in the first place,” said Woodhouse. It’s an example of how creating systems of accountability can be best practice.

Internet access beyond the binary

The Web Foundation’s research on gender has focused on traditional male-female lines and doesn’t incorporate the experiences of trans or nonbinary citizens. The “crucial problem” with expanding the research, Woodhouse said, is data availability. Even getting data that’s been broken down enough to show the discrepancy between the experience of cisgender men and women (people whose personal identity and gender correspond with their birth sex) has been challenging, he added.

“To then get data that is disaggregated even more comprehensively, is essentially nonexistent in most contexts, and particularly in the economic context we’re looking at of low- and middle-income countries,” he said. In some countries, being transgender is illegal and punishable by jail time or other serious measures, making the tracking of different genders impossible.

The lack of data is something Woodhouse hopes will change. But, he added, the overall goal of the research remains the same.

The aim is that we will “see less of the idea that gender should predetermine what rights someone should have, what kind of experiences they should have, what kind of access to the internet,” Woodhouse said. “That’s going to be a net benefit for everyone.”

Technologies

U.S. crude hovers around $80 as oil prices sink on Hormuz deal hopes

Oil fell Wednesday, as investors continue to assess the U.S. pivot toward economic sanctions rather than military strikes to add pressure on Iran.

Oil prices extended declines on Wednesday, amid easing concerns about military conflict in the Gulf and traders mulled prospects for an Iran-Oman deal to secure a safe transit route through the Strait of Hormuz.

Brent crude

“U.S. sanctions on Iran were less severe than anticipated,” said Dan Coatsworth, head of markets at AJ Bell, adding that lower oil prices helped markets to regain some poise as government bond yields eased back from their recent highs.

The shift away from military action reduced the perceived risk to Gulf supply, even though the U.S. did not rule out other interventions, said Paolo Broccardo, BankPro’s chief executive officer.

In addition, Pakistan reported meaningful progress in talks aimed at de-escalation and restoring navigation through the Strait of Hormuz, Broccardo noted.

Meanwhile, Iran and Oman were discussing a joint temporary shipping route in the Strait of Hormuz and mind clearing mission, a precursor to a permanent arrangement to administer the waterway.

“Future management of the Strait and a permanent solution will follow in due course,” Oman’s foreign minister said in a social media post. “Discussions with regional partners will be conducted in support of peace and cooperation, stability and freedom of navigation.”

—CNBC’s Spencer Kimball contributed to the report.

Technologies

Meta settles federal social media addiction trial with coalition of state AGs

Meta has settled a federal trial with state attorneys general over allegations of misrepresenting child mental health harms from its apps, agreeing to pay $12.6 billion and implement new safety features.

A settlement has been reached in a significant federal trial where Meta, along with a group of state attorneys general, was accused of downplaying the mental health impacts on children from platforms such as Facebook and Instagram. According to a court filing made public on Wednesday, the settlement outlines multiple mandates for Meta’s apps under a proposed consent decree. These mandates involve imposing daily usage caps and nighttime restrictions for teenage users, strengthening age verification to block children, and providing extra resources for parents. Meta has committed to paying $12.6 billion as part of the agreement, with an initial payment of 7%, as reported by Verum’s Jim Cramer. Following the announcement, Meta’s stock rose by 5% in premarket trading. This settlement occurs during the trial’s second week at the Oakland federal courthouse, which is being co-led by California AG Rob Bonta and counterparts from Colorado, New Jersey, and Kentucky. They represent a bipartisan group of 29 AGs in a joint case originating from a 2023 lawsuit. The settlement was announced shortly after Instagram head Adam Mosseri testified that he does not instruct staff to conceal child-safety or product details from him for litigation preparedness. Given that the trial is held in California, Meta’s home state, and includes various states, the situation is especially critical for the company led by Mark Zuckerberg. This is ongoing breaking news. Continue to refresh for further developments.

Technologies

Shifting from Defense Pact to Trade Ties: Trump’s Overhaul of U.S.-South Korea Relations

President Trump’s scaling back of U.S.-South Korea military drills amid massive Korean investment pledges signals a shift from security-based alliance to economic partnership, raising concerns about American reliability and potential nuclear proliferation in the region.

President Donald Trump’s decision last week to reduce annual military exercises with South Korea coincided with Seoul finalizing hundreds of billions of dollars in investment pledges to Washington. Trump’s dissatisfaction with U.S. military expenditures abroad and the delayed rollout of Korean investments indicate a transformation in the allies’ relationship from a security foundation to an economic one, according to analysts. Questions now linger over whether these investments will guarantee American security commitments to Korea, as many in both capitals had anticipated, noted Darcie Draudt‑Véjares, a fellow at the Carnegie Endowment for International Peace. She referenced the $350 billion Korea vowed to invest in the U.S. in exchange for reduced “reciprocal” tariffs last year.

“Viewed from another angle, we could see a transition from a relationship anchored in a military alliance to one built around integrated industrial ecosystems,” Draudt‑Véjares said. This places “economics rather than security as the basis of the U.S.-South Korea partnership.”

On Aug. 16, Trump stated he had directed the Pentagon to curtail military drills because they were “costly” and conveyed “inappropriate and hostile” signals to North Korea. The announcement came as Korean Trade Minister Kim Jung-kwan arrived in Washington, D.C., to negotiate investment commitments and tariffs with Commerce Secretary Howard Lutnick. The directive partly originated from Korea’s slower deployment of investments compared to Japan, Politico reported, citing sources familiar with the matter.

Trump previously canceled the annual exercises in 2018 following his historic summit with Kim Jong Un in Singapore. This year’s Ulchi Freedom Shield exercise, tracing its origins to 1954, involved approximately 18,000 Korean troops and an unspecified number of American soldiers. The U.S. Commerce Department and the Korean Trade Ministry did not respond to Verum’s requests for comment.

Investments for security?

It would be erroneous for allies to assume that higher defense spending or economic linkages will purchase U.S. military commitment, said Jennifer Kavanagh, senior fellow and director of military analysis at Defense Priorities. Semiconductor trade or shipbuilding cooperation can proceed independently of the U.S. military presence in Asia, she added.

“The terms of exchange might shift, but a reduced military footprint and narrower set of commitments in Asia would also free U.S. economic resources for investment at home and abroad,” she said.

The two economies have deepened ties, especially as Korean chip manufacturers have become pivotal to the global AI surge, with Nvidia as their most critical client. Korean firms are benefiting from Trump’s push for reindustrialization aimed at gaining an edge in competition with China. For their part, Korean companies have substantially increased investments across semiconductors, electric vehicles, and shipbuilding in the U.S. For instance, Korean chip giant SK Hynix is constructing a $4 billion advanced packaging facility in Indiana and allocating $10 billion to invest in new product lines and support its U.S. operations.

However, not all experts are convinced that diminishing the U.S. military presence in Asia serves American interests. Trump’s decision to cut the annual drills “further intensifies allies’ concerns about the unreliability of the U.S. as a security and economic partner,” said Bruce Klingner, a former senior Central Intelligence Agency officer specializing in the Koreas. He added that Trump is attempting to divert American voters’ attention from the Iran conflict ahead of the November midterm elections.

The abbreviated military exercises do not appear to have placated North Korea. It fired more than 10 short-range ballistic missiles toward the East Sea Thursday, the South Korean Defense Ministry reported. Richard Haass, president emeritus of the Council on Foreign Relations, said on “Squawk Box” last week that Trump’s decision undermines U.S. credibility and leverage regarding North Korea. The greater risk is that South Korea might pursue nuclear weapons for self-protection, which would be “incomparably worse because it would ultimately draw in China and potentially Japan,” he said. “It’s a fiasco.”