2020
Language:
English

Automation, Politics, and Public Policy

Developing countries face several policy challenges unleashed by automation. Given the pace of technological change, upskilling strategies are likely not to be a panacea. Safety nets and wage subsidies may be desirable, but the question remains how to finance them (without making labor more costly and thus exacerbating a trend toward replacement). Investing in labour-heavy sectors such as infrastructure construction, social, education or healthcare provision may be a way for developing countries to manage disruptive impacts of automation though these would imply major public investments and do not in themselves substitute for a long-run strategy for economic development.