Original article by Yuwa Hedrick-Wong, MasterCard Center for Inclusive Growth
The diminishing role of manufacturing in job creation means we must look to new pathways for moving people from poverty to prosperity. The debate about the future of work and its impact on our economy, society and way of life is intensifying. The senior fellows of the Mastercard Center for Inclusive Growth met recently to discuss technological changes and their far-reaching social, political and economic implications. It is clear that technology will continue to substitute workers in both routine manual and cognitive tasks with ever more capable robotics and algorithms amplified by artificial intelligence.
The diminishing role of manufacturing in job creation in developing countries means that their vast numbers of underemployed and unemployed will have to struggle a lot harder for a job that pays a living wage. This will make poverty alleviation all the more difficult. Thus, while the current shock wave of technological changes has worsened inequality in many developed countries, it is simultaneously making it harder to reduce inequality in the developing world.
Inclusive growth has always been important, but it is now more important than ever. In a world where technological changes are rapidly and continuously reinventing how work is being done, workers need to reinvent themselves to stay productive and relevant.