Giving Compass' Take:
- Shanta Devarajan discusses reports about technology and the future of work, emphasizing that there is opportunity for inclusive growth across the globe, especially in the informal labor market.
- This perspective is valuable since much of the consternation about tech and work centers around fears for job losses due to inadequate training. How can we focus efforts in the areas where inclusivity can thrive?
- Read about the playbook for building a diverse workforce.
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Two publications on the future of work crossed my desk recently. One was the 2019 World Development Report (WDR), “The Changing Nature of Work“; the other a report by the Pathways for Prosperity Commission, “Charting Pathways for Inclusive Growth.” That they crossed my desk is not accidental: As Acting Chief Economist of the World Bank, I provide guidance on the World Development Report, and I am a member of the Pathways Commission.
Both reports paint an optimistic picture of the impact of technology on developing countries, in stark contrast to some of the gloom and doom being forecast in developed countries. The reasons for their optimism are different in the two reports, as are their policy implications. But these differences are complementary rather than contradictory. Taken together, they provide a robust platform for harnessing the power of technology for inclusive growth.
Part of the optimism is because the fear that technology will eliminate jobs is not new. The WDR notes that in 1589, Queen Elizabeth I of England was alarmed by the introduction of the knitting machine: “Consider thou what the invention would do to my poor subjects…by depriving them of employment.” The Pathways Commission report observes that personal computers may have eliminated typewriter jobs but created many more in other sectors. Despite the fourfold increase in automatic teller machines (ATMs) in the U.S. in the 1990s, by 2010 there were 10 percent more bank tellers than in 1980.
Yet, this time may be different. The Pathways Commission describes the unprecedented scope and pace of technological change. Not only does technology affect all parts of the economy, but Moore’s Law, that computing power doubles every 18 months, is now found in other technologies, such as wireless data transfer. The WDR notes that the skills needed for jobs in the new economy—problem solving, critical thinking, teamwork—are different from those taught in standard classrooms. There is another reason this time may be different: the current debate about technology is taking place amid widespread concern about inequality.
Read the full article about the future of inclusive growth by Shanta Devarajan at Brookings.