Technology, Growth, and Inequality: Changing Dynamics in the Digital Era

Technology, Growth, and Inequality: Changing Dynamics in the Digital Era. Brookings Institution. Zia Qureshi. February 12, 2021

Ours is a time of exciting technological change. The era of smart machines holds the promise of a more prosperous future for all. But it demands smarter policies to realize that promise. To capture potential gains in productivity and economic growth and to address rising inequality, policies will need to be more responsive to change as technology reshapes markets. And change will only intensify as artificial intelligence and other new advances drive digital transformation further—and at an accelerated pace in the aftermath of the COVID-19 pandemic.

As technology shifts market dynamics, policies must ensure that markets remain inclusive and support broad access to the new opportunities for firms and workers. New thinking and policy adaptations are needed in areas such as competition policy, the innovation ecosystem, digital infrastructure development, upskilling and reskilling of workers, and social protection regimes. Fostering wider diffusion of new technologies among firms and building complementary capabilities in the workforce can deliver both stronger and more inclusive economic growth. [Note: contains copyrighted material].

[PDF format, 26 pages].