New Technologies, Global Value Chains, and the Developing Economies

Do new technologies present an opportunity or a threat to developing economies? For the optimists, the knowledge economy, artificial intelligence, and advances in robotics represent a historical chance for developing economies to leapfrog to a more advanced-economy status. Others worry about the ability of poor countries to compete in a world economy in which others have much greater capacity to capitalize on new technologies. In many ways, this debate is similar to the discussion about the impact of technology on labor markets and inequality within rich nations. There too, optimists and pessimists are divided about the consequences for low-skilled workers. Will technology lift all boats by providing opportunities for overall productivity gains? Or will those gains be captured by a small minority of highly skilled workers, professionals, and large corporations?