Automation will end rapid economic growth for poorer countries
Automation is blocking the primary route for poor countries to grow rich. The solution is taxes, better use of resources and promoting the informal economy
For a long time – at least since the economic emergence of South Korea in the 1960s – many low-income countries have been able to achieve rapid economic growth through industrialisation.
The process usually starts with low-end manufacturing (apparel, footwear, plastics) and entails large numbers of workers moving from low productivity smallholder agriculture to high productivity export manufacturing.