Explain the problem of technical change in an occupation for a specific country ??
Answers
Our lives are being shaken to their very core by technological change, with the Fourth Industrial Revolution transforming economies as never before.
The unprecedented speed of change, as well as the breadth and the depth of many radical changes unleashed by new digital, robotic and 3D technologies, is having major impacts on what we produce and do, how and where we do it and indeed how we earn a living. And while the transformation will proceed differently in advanced and developing parts of the world, no country or market will be spared from the tidal wave of change.
To appreciate the changes at hand, two interrelated aspects of the economy are particularly illustrative: growth and productivity on one hand, and employment on the other.
As the World Economic Forum highlights annually in its Global Competitiveness Report, productivity is the most important determinant of long-term growth. Yet productivity growth has stagnated around the world, particularly since the great recession, putting into question our ability to provide rising living standards for the world’s citizens. While arguments abound as to what has been driving the productivity slowdown, an important question is how the Fourth Industrial Revolution will drive it in the years to come.
In theory, the application of new technologies to existing problems should improve efficiency and thus productivity. Technological innovations tend to raise labour productivity by allowing the existing workforce to do more with less, by replacing existing workers with technology (with an obvious downside, as I will come to later), and they also usher in new products and processes that open up new sources of growth.