Leverage Technology Investment GFC 2024

To make decisions that result in good job creation and evaluate outcomes, good job creation needs to be set as an explicit goal rather than a secondary objective or a positive externality. Furthermore, sufficient funding and multistakeholder partnerships are principles for sustaining progress. The sections below provide details about each of the key actions, drawing on examples of where technology can play a role in driving good job creation. Structural transformation Hard infrastructure refers to the physical structures and facilities that are essential for the functioning of an economy. In particular, information and communications infrastructure is key to increasing countries’ “readiness” to take advantage of technologies, enabling them to leapfrog previous innovations and improve productivity and livelihoods. For example, the Digital India campaign developed digital infrastructure that connected rural areas with high-speed internet networks, enabling digital payments and resulting in an unprecedented surge in the digital economy. Robust infrastructure also enables countries to benefit from AI. Research from the World Bank shows that middle-income countries have disproportionately high adoption of generative AI relative to their economic scale, contributing to more than 50% of global traffic, but that poor digital infrastructure causes disruption to online traffic patterns that can prevent users in these countries from harnessing its full potential. Data infrastructure refers to the systems and technologies needed to manage data. It facilitates decision-making and harnesses AI opportunities in different countries. In recent years, many countries have been able to leverage data to create data- informed job strategies, such as Singapore’s SkillsFuture Program. But this is often a challenge in many middle-income countries due to limited resources. Governments can support creating a robust national data infrastructure by setting up dedicated data observatories that include blue- collar, white-collar and informal local jobs; countries with more advanced data capabilities can assist nations to enhance their data capabilities. A favourable business environment is crucial for attracting investment, spurring innovation, fostering competition and contributing to economic growth. A key enabler for creating a favourable business environment is reducing red tape, as well as implementing transparency and anti-corruption measures to encourage investment and create long-term policy certainty. For example, Estonia’s support for innovation and creation of a favourable regulatory environment led to a flourishing tech sector and startup ecosystem, with companies such as Bolt, Wise and Skype originating in Estonia, driving growth and economic impact. Policies and mechanisms for collaboration are necessary for realizing the inter- or intra- regional trade and investment opportunities that a favourable business environment enables, opening access to wider markets and creating spillovers that can create jobs. However, much of international trade relies heavily on paper-based transactions, creating inefficiencies and stifling the inclusion of small and medium-sized enterprises (SMEs). Technology can improve the efficiency, security and transparency of trade opportunities by harmonizing systems and policies, increasing collaboration between regulators and developers, and promoting equality and access. Strong education institutions are vital for the job-creating growth of societies and economies, as they provide foundational preparation for the future workforce. The problem-solving skills learned at an early age form the basis of more specialized skills needed for a knowledge-based economy, supporting industry diversification. Digital tools can enhance this acquisition of skills. For example, Kenya’s Digital Literacy Programme set out to introduce primary schools to digital technology and communication and provide schools with ICT infrastructure. As a result, a range of jobs was created in ICT support centres in participating counties, absenteeism was reduced as students became inspired to pursue technology-related careers and Kenya’s global profile was raised as an ICT hub. Leveraging Technology Investment for Good Job Creation 6