I do not understand this alternative. Tapping into global markets is great���if you have something to sell. But if low-wage labor is no longer a powerful source of potential comparative advantage, what then do poor countries have to sell that could jump-start development? There is labor, there is capital, there is expertise, there is your natural resource base. Poor counties are poor because they lack capital and expertise. And as for natural resources���well, "resource curse" is a phrase often heard for good reasons:
Michael Spence: The ���Digital Revolution��� of Wellbeing: "In the early stages of development... labor-intensive process-oriented manufacturing and assembly has played an indispensable role.... Advances in robotics and automation are now eroding the developing world���s traditional source of comparative advantage.... E-commerce platforms... the real prize is the global marketplace. Only if digital platforms could be extended to tap into global demand would they suggest an alternative growth model (provided that tariffs and regulatory barriers do not get in the way)...
#noted
Published on October 02, 2019 09:40