Disruptive technology comes with benefits and risks. However, it is a necessary step towards further global development, therefore mitigating these risks is essential. Developing countries in particular, may be more susceptible to the negative impacts of automation due to weaker social safety nets (The Oxford Martin School, 2016). Two common characteristics of developing countries are higher employment in the agriculture sector and a higher proportion of low-skilled labor compared to developed countries where the service sector is more substantial, and workers are higher skilled (Schlogl & Sumner, 2018). The World Bank estimates that 77% of jobs in China and 69% of jobs in India, both major economies, can be automated. This number goes up to 85% in one of the fastest growing economies in Africa, Ethiopia (The Oxford Martin School, 2016).
The United Nations General Assembly (GA) has recognized the impacts of rapid technology development on the Sustainable Development Goals (SDGs), which includes good jobs and economic growth, in resolution 70/1 in September 2015. Through this resolution, the GA had agreed to create the Technology Facilitation Mechanism in order to tackle this global trend. The effects of technology were once again considered in resolution 72/242 adopted by the GA in December 2017, which requested the Technology Facilitation Mechanism to examine the impact of technological change on the SDGs. Such resolutions have only dealt with the first step of mitigating the impacts of automation which is to identify what they are. These conclusions will serve as a basis for the generation of solutions to alleviate the negative impacts of automation in developing countries. So far it has been up to individual governments to cope with these negative effects.
Automation has the potential to boost efficiency and productivity. The governmental, corporate, and non-profit sectors are all subject to this principle. For example, the World Bank Group's 2016 report "Digital Dividend" showed that the Indian government's e-procurement strategy helped to infuse more competition into the process by raising the likelihood of successful bidders coming from outside the procurement process, resulting in a higher quality infrastructure. The greatest socioeconomic infrastructure usually draws additional investment, manufacturing, and job possibilities.
Automation reduces bureaucratic discretion and reduces the chance of minor corruption in systems based on consumerism. Reducing corruption can make doing business easier, leading to more investment and more employment opportunities.In connection with heavy work, automation eliminates the very tedious work that no one wants. For example, if you apply hundreds of labels daily, you will be aging rapidly and require little skill. The same is true if you exchange long lists of emails to adjust the time of the meeting. Such automation systems can save time and money and improve employee morale. In factory environments, robots take dangerous workplaces with blades, welding, chemical loading, etc. in an office environment, automation can also reduce human errors. For example, automation can help track unusual network operations. This helps to keep your confidential information safe.
Automation has many advantages- from factory-based industries to our day to lives, all of these are clear. However, these advantages are not without speculation and concern. The most common concern is the movement of workers. According to the recent International Labor Organization report which states that more than 2/3rd of the 9.2 million jobs in the textile and footwear industry in Southeast Asia are threatened by automation. The report lists the percentage of automation task activity with today's technology. 51% of task activity can be automated in India. According to this report: "Robot automation has the biggest impact, replacing low-skilled jobs and simple assembly tasks." The risks of automated activities in Japan and Thailand are 55.7% and 54.8%, respectively. We can automate more than 40% of our global activities. There is clearly no good news for the employees. Unemployment caused by automation has become a worrying issue. Many reports from multilateral organizations such as the World Bank and the International Labor Organization (ILO) have warned developing countries, including India, that appropriate policy measures are needed to mitigate the negative effects of automation on employment opportunities.
In the long run, automation will bring up living standards, make jobs safer and boost economic growth. Therefore, it is paramount for the developing countries to embrace technological change as sustainable economic growth should be in every developed country's national interest. One solution cannot be applied to everyone, but we will differentiate three groups of individuals with different policy needs: higher-risk workers, lower-risk workers, and future workers. Higher-risk workers will need the most support from the government to retrain and transition to new employment. For lower-risk workers, parts of their jobs may be at risk of automation, but its benefit will likely outweigh its disadvantages (AlphaBeta, 2015). A crucial long-term policy for future workers is to promote a modern education to meet the future job market's requirements. In developing countries, a high percentage are high-risk workers and future workers thus it is the government's responsibility to ensure that stakeholders take measures to facilitate adjustment rather than waiting for change to overtake them.
The economy of India is in a period of change. Government measures such as a ban on currency and the implementation of GST is yet to bear fruit. Furthermore, technological progress is a prerequisite for maintaining a high level of economic growth. Whenever a new technology is incorporated into economic processes, it naturally leads to concerns about unemployment. However, the current trend of automation is of concern because it also affects administrative tasks. Unemployment is a socio-economic problem, so governments must investigate the problem in detail and find the right combination of solutions, taking into account the various interests of the economy as a whole.
Automation is a major issue facing the global economy and its negative impacts will be most acute in developing countries. Every country should emphasizes that it is their shared responsibility to ensure the future of work and workers, as the impacts of automation has now been well acknowledged, it is high time we took action and tailor our policies to these inevitable changes.
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