Does technology hinder development?


Published 21.08.19
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Low-income countries are disadvantaged by the introduction of new technologies due to being unable to access skilled employment opportunities

How do new technologies impact developing countries? The optimist’s view is that they can help low-income countries leapfrog in development by not having to replicate old models of industrialisation. The pessimist’s view is that low-income countries won’t be able to take advantage of new technologies due to a lack of skills and capabilities. Data on the employment consequences of participation in global value chains in low-income countries reveal findings that are more in line with the pessimist’s view – new technologies are disadvantaging low-income countries on the production side and seeing few employment prospects.