Technology is shaking up labor markets around the world. Increasingly intelligent machines are taking over routine jobs. Three-D printing is making many traditional, labor-intensive production processes obsolete. In total, almost half of all jobs may be at risk in the United States due to automation. Job losses are no longer just limited to blue collar occupations, but increasingly also affect high-paying white collar jobs such as in insurance, in the health sector or even in government bureaucracies. Is this the end of work as we know it? Not so fast, say some, who argue that technological progress and automation have not necessarily led to less demand for work on aggregate. An often cited example is the fact that the introduction of the automatic teller machine was accompanied by an expansion in retail banking jobs as banks opened more branches.
On her daily walk down the muddy road that connects her home with school, Beatriz would sing a cumbia and dream of becoming a professional dancer. However, she would soon find out that her aspirations were short lived. At the age of 14, Beatriz got pregnant and never went back to school. In the six years following her pregnancy, she struggled with an unstable and low-paid job, cleaning rich houses in Guatemala City. By the age of 20, without minimum skills and a secure job, Beatriz had little control over her life and a murky picture of her future loomed.
Despite many advantages including an ambitious program for devolution, the challenges for a smooth urbanization process remain multifaceted for Kenya:
- Access to services remains low;
- Informality of human settlements and jobs predominate; and
- Poorly functioning land markets make investing in housing and infrastructure expensive and inefficient.
In this video, Senior Director Ede Ijjasz-Vasquez weighs in on Kenya’s urbanization challenges, focusing on urban finance, land and planning institutions, and urban governance, as he discusses the main messages of the Kenya Urbanization Review.
Video: Courtesy of Arimus Media
Let’s Work, a global partnership of over 30 organizations, is piloting tools that can help Development Finance Institutions (DFIs) measure the impact of private sector investments on jobs. The aim is for partners to not only measure jobs in the same consistent way, but also along the same nuanced dimensions: number of jobs gained, the quality of those jobs, and who gets those jobs (inclusiveness). One of the measurement methods being developed by the Partnership is the Jobs in Value Chains Survey tool.
Over the past decade and a half, Sub-Saharan Africa has experienced rapid economic growth at an average annual rate of 5.5%. But since 2008, the share of manufacturing in GDP across the continent has stagnated at around 10%. This calls into question as to whether African economies have undergone structural transformation – the reallocation of economic activity across broad sectors -- which is considered vital for sustained economic growth in the long-run.
Jobs are what we earn, what we do, and sometimes even who we are. For the poor and vulnerable of the world, jobs are key to ending poverty and driving development. But not all jobs are equally transformational. Good jobs add value to society, taking into account the benefits they have on the people who hold them, and the potential spillover effects on others. For example, inclusive jobs, such as those that employ women, can change the way families spend money and invest in the education and health of children.
- Private Sector Development
- Latin America & Caribbean
- The World Region
- South Asia
- South Africa
- Burkina Faso
- Cote d'Ivoire
- West Bank and Gaza
- Sri Lanka
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Recent research shows that
City governments invest a lot in job creation—they plan infrastructure, skills initiatives, and industry support with the goal to improve productivity and generate jobs and growth, especially in the high-skill sectors. Yet, there might be an important input to productivity that cities can pay more attention to: clean air.
Recent research suggests that a 10-unit increase in the air quality index decreases productivity by 0.35%. Seems marginal? This “productivity slow-down” costs the high-skill economy of China $2.2 billion per year for each additional 10 units of the air quality index.
The research in question studied the effect of air pollution on worker productivity in call centers in Shanghai and Nantong in China. The firm analyzed is Ctrip, one of the largest travel agencies in the country, employing more than 30,000 people. 50% of the workers’ pay is based on performance and the measures of productivity are very detailed and high frequency. The study concluded that there is a robust relationship between daily air pollution levels and worker productivity. On average, a 10-unit increase in the Air Quality Index (AQI) led to a 0.35% decline in the number of calls handled by a worker in a day at an AQI of 100. If we translate this to the entire Chinese high-skill industries, a 10-unit reduction of air pollution levels would increase the monetized value of improved productivity by $2.2 billion per year.
Urban population in Africa will double within the next 25 years and reach 1 billion people by 2040, but concentration of people in cities has not been accompanied by economic density.
Typical African cities share three features that constrain urban development and create daily challenges for businesses and residents: they are crowded, disconnected, and therefore costly, according to a new report titled “Africa’s Cities: Opening Doors to the World.”
Is this time really different? That’s the argument whenever people want to ignore the lessons of history (eg arguing that this particular financial bubble/commodity boom will never burst) and such claims usually merit a bucketload of scepticism. On the other hand (climate change, nuclear war) sometimes things really are different from everything that has gone before.
Which brings us to technology. Lots of musings are circulating about the rise of Artificial Intelligence, automation etc. Driverless cars will put millions of drivers out of work. Robots will kill off manufacturing jobs. Everything will change.
At the World Economic Forum, Klaus Schwab talks of ‘the fourth industrial revolution’. The bible is the Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies, a 2014 book by Erik Brynjolfsson and Andrew McAfee. Even President Obama has caught the bug, in a recent profile in the New Yorker
‘At some point, when the problem is not just Uber but driverless Uber, when radiologists are losing their jobs to A.I., then we’re going to have to figure out how do we maintain a cohesive society and a cohesive democracy in which productivity and wealth generation are not automatically linked to how many hours you put in, where the links between production and distribution are broken.’
Which all raises a whole series of questions – is it true? If so, is that a Good/Bad Thing and for whom? Much too substantial for a blog post, but here are a few thoughts and links.
When it gained independence in 1965, Singapore was a low-income country with limited natural resources that lacked basic infrastructure, investment and jobs.
A few decades later, the picture couldn’t be more different. Singapore has become one of Asia’s wealthiest nations, due in large part to its emergence as the highest-performing logistics hub in the region (see World Bank Logistics Performance Index).
The numbers speak for themselves. Today, the small city-state is home to the world’s largest transshipment container port, linked to over 600 ports worldwide. Singapore Changi airport is voted the best internationally, and is served by about 6,800 weekly flights to 330 cities. Finally, the island nation’s trade value amounts to 3.5 times its GDP.
Singapore’s achievements did not happen by chance. They result from a combination of forward-looking public policy and extensive private sector engagement. This experience could provide some lessons to any developing country seeking to improve its logistics network. Let us look at three key factors of success.
- trade facilitation
- waterborne transport
- maritime transport
- air transport
- international trade
- cross-border trade
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Global Economy
- Urban Development
- East Asia and Pacific
- Sustainable Communities