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VoxDev Development Economics
S6 Ep10: Simon Johnson on geopolitics, AI, and the future of global development
Mar 12, 2025
Simon Johnson, a renowned MIT professor and Nobel laureate, discusses the transformative impact of AI on global development and the shifting geopolitical landscape. He examines how countries in the global south must adapt to deglobalization and the influence of major players like China and Russia. Johnson reflects on the role of international institutions like the IMF and World Bank amid rising global challenges. He also explores the urgent need for skills development in response to job automation and the unique power dynamics of tech entrepreneurs.
32:49
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Quick takeaways
- The rise of artificial intelligence poses significant job displacement risks in low and middle-income countries, necessitating strategic labor market adaptations.
- Changing geopolitical dynamics are driving developing nations to focus on regional trade collaborations and internal market strengthening amidst deglobalization trends.
Deep dives
The Impact of AI on Labor Markets
The rise of artificial intelligence is significantly altering labor dynamics, particularly in low and middle-income countries. AI can execute tasks previously performed by human workers, especially in areas like clerical work and customer service, creating concerns about job displacement. As AI technology continues to advance rapidly, many traditional jobs are at risk of being automated, which raises questions about future employment opportunities. This shift necessitates a strategic approach by these countries to adapt their labor markets and consider the skills that will be relevant in an AI-driven economy.
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