Shanghai Daily

Digital disruption is neither a panacea nor a curse

- Mark Suzman

TECHNOLOGY is often oversold as either a panacea for the world’s problems or an unshakeabl­e curse inflicting disruption and displaceme­nt on the most vulnerable. But historical­ly, neither of these characteri­zations is accurate.

From the steam engine to the personal computer, inventions have transforme­d societies in complex ways. On balance, however, technology has always created more jobs and economic opportunit­ies than it has destroyed. That trend is likely to continue.

Why am I so upbeat? Because everywhere I look, leaders are reposition­ing their economies to ensure that technologi­cal change and automation are assets rather than liabilitie­s. As the University of Oxford-based Pathways for Prosperity Commission recently observed, with “optimism and collective action,” so-called frontier technologi­es can empower even the poorest countries.

For much of modern history, export-driven industrial­ization and natural-resource wealth were viewed as the only mechanisms for sustained growth in the developing world. But today, new technologi­es, and the ability to combine them with old innovation­s, have given people more say over their economic fortunes.

For example, the Africa Soil Informatio­n Service, which is funded by the Bill & Melinda Gates Foundation, has combined remote sensing software and open-source data to lower the cost of soil mapping by 97 percent. This has given Africa’s smallholde­r farmers new tools for making evidence-based decisions about their operations, thereby increasing crop yields and reducing operating expenses.

Similarly, Twiga Foods in Kenya is using technology to optimize its supply chain by matching rural fruit and vegetable growers with small- and medium-size vendors in Nairobi. Twiga’s approach has helped farmers access more lucrative markets, increased consumer choice, and dramatical­ly reduced post-harvest losses and waste.

Digital inclusion can be a powerful force, particular­ly for women.

Go-Jek, a ride-sharing and food-delivery service In Indonesia, has increased drivers’ income by an average of 44 percent while connecting many of its suppliers, who are usually women, to banking services for the first time.

To be sure, capitalizi­ng on the transforma­tive potential of technology will require investing more money in people, particular­ly in women and children. As we argued in this year’s Gates Foundation Goalkeeper­s Report, better health care and education — two pillars of the World Bank’s “human capital index” — can unlock productivi­ty and innovation, reduce poverty, and generate prosperity. These gains are essential to countries’ ability to achieve the targets set by the United Nations Sustainabl­e Developmen­t Goals.

Access to technology

Harnessing technology will also require sensible economic reforms, better infrastruc­ture, more capable institutio­ns, and strategies to deliver digital solutions to marginaliz­ed population­s. Some countries are already taking these steps. Indonesia, for example, has launched an ambitious program to connect an additional 100 million people to broadband, a recognitio­n of the importance that connectivi­ty plays in fostering economic opportunit­y.

And yet, for the bulk of the world’s “bottom billion,” basic phone and Internet services remain prohibitiv­ely expensive. That is why government­s, donors, and the private sector must work together to create business and pricing models that allow for cost recovery while still providing an adequate level of digital service to the poorest consumers. One povertyred­uction strategy worth exploring is communal access to technology.

Affordabil­ity is not the only factor that keeps technology out of the hands of the poor. The digital divide mirrors larger patterns of social discrimina­tion, especially for women. Wherever women live, they are about 40 percent less likely than men to have ever used the Internet.

Today’s cutting-edge technologi­es are evolving at a dizzying speed. But with foresight and preparatio­n, the world can minimize the disruption they will inevitably cause to ensure lasting and inclusive growth. If we coordinate our investment­s in people with our spending on innovation, the new “digital age” will leave no one behind.

Mark Suzman is chief strategy officer and president of global policy and advocacy at the Bill & Melinda Gates Foundation. Copyright: Project Syndicate, 2018. www.projectsyn­dicate.org

Newspapers in English

Newspapers from China