DP15772 Artificial Intelligence, Globalization, and Strategies for Economic Development
|Author(s):||Anton Korinek, Joseph E Stiglitz|
|Publication Date:||February 2021|
|Keyword(s):||artificial intelligence, inequality, labor-saving progress, terms-of-trade losses|
|JEL(s):||D63, F63, O25, O32|
|Programme Areas:||International Trade and Regional Economics, Development Economics, International Macroeconomics and Finance, Macroeconomics and Growth|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=15772|
Progress in artificial intelligence and related forms of automation technologies threatens to reverse the gains that developing countries and emerging markets have experienced from integrating into the world economy over the past half century, aggravating poverty and inequality. The new technologies have the tendency to be labor-saving, resource-saving, and to give rise to winner-takes-all dynamics that advantage developed countries. We analyze the economic forces behind these developments and describe economic policies that would mitigate the adverse effects on developing and emerging economies while leveraging the potential gains from technological advances. We also describe reforms to our global system of economic governance that would share the benefits of AI more widely with developing countries.