Advancing technology, rather than globalization, has been the driving force behind rising inequality in developed and developing countries alike, the International Monetary Fund (IMF) said Tuesday.
Technology, like foreign direct investment, has raised incomes for skilled workers, widening the gap between rich and poor in most countries around the world, the IMF said in a portion of its latest World Economic Outlook.
Technology not only raises demand for skilled workers, it also automates and destroys jobs for low-skilled workers, the IMF said.
Much uncertainty surrounds the study because data were limited and not always directly comparable across countries. Also, the spread of technology is facilitated by trade and globalization, the IMF said.
But in general, goods and services trade tended to make the poor better off by lowering prices. Agricultural exports were particularly effective in helping the poor because jobs were created and wages rose in areas where the poorest live.
In the analytical chapters of its World Economic Outlook released in advance of the October 17 publication of the forecast, the IMF said the durability of the global economic expansion is likely to persist.
The IMF has lowered its 2008 global growth forecast to 4.8 percent from a previous estimate of 5.2 percent, but states that global economic growth has been faster, broader and more stable since 2004 than at any time in the previous 30 years.
Kilde: www.worldbank.org
