The “Digital Revolution” of Wellbeing
— June 28, 2019
By A. Michael Spence
For example, studies show that e-commerce and digital finance in China have contributed to both the rate and inclusiveness of economic growth. Very small businesses (with an average of three employees) that could not access conventional sources of credit can now get financing. They also can tap into expanded markets through various online platforms, many of which provide tools and data to boost productivity, improve product quality, and benefit from business training.
In general, e-commerce platforms enhance financial and economic inclusion if they are open and geared toward broadening access to digital markets, rather than competing with their own users’ product lines. By contrast, digitally driven automation, artificial intelligence (AI), and machine learning have non-inclusive effects – owing to major labor-market disruptions – that must be countered.
Read the full Project Syndicate article.
A. Michael Spence is a William R. Berkley Professor in Economics & Business.