How can policymakers adapt to a changing world of development and an uncertain future?
Penny Goldberg, Chief Economist of the World Bank, discusses how the former doctrine that informed policymaking – that low-income countries can exploit their comparative advantage in low-skilled labour to export and subsequently industrialise – is no longer applicable. The backlash against globalisation within advanced economies and the rise of automation have curtailed the advantage of abundant cheap labour. In such an environment, investing in human capital, the one asset that will always be valuable, is crucial.