By Stefania Fabrizio and Andrea F. Presbitero, IMF Blog

December 4, 2017

Population growth and technological innovation don’t necessarily have to widen inequality in developing countries. They can also offer new opportunities to increase growth and create jobs: the long-term outcomes depend on today’s policy choices. But those choices are not easy because policies for sustained and inclusive growth may conflict with short-term needs. We look at the trade-offs and how to balance short- and long-term goals for sustainable and inclusive growth.

Population growth and automation

Compared with advanced economies, which already face the challenges of aging and declining population, developing countries are still experiencing demographic growth as today’s children become working-age adults. The United Nations estimates that in Africa the under-25 generation represents 60 percent of the population. As population growth potentially boosts the supply of low-skilled workers, while automation simultaneously squeezes labor demand, this new generation of workers will advance only if they can acquire marketable skills. Den Rest des Beitrags lesen »