Beyond AI: Poverty is the Real Job Disruptor in Developing Countries

ValueFirst
The Orange Journal
4 min readMay 27, 2024

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Created by Valuefirst with Designer

Introduction

In today’s fast-changing digital world, there’s widespread concern about how artificial intelligence (AI) will impact jobs (MIT Tech Review, 2024). Some argue that AI itself isn’t the threat, but rather the people who know how to use it (Businessinsider, 2023). Others suggest that AI could lead to job creation (Stanford Review, 2023) or become as ubiquitous as the internet, minimizing its impact. However, in developing countries, the primary concern isn’t about the threat of AI, but rather whether individuals will attain the necessary skills to secure employment or compete globally. AI serves as an additional barrier to acquiring global employment competitiveness, compounded by poverty and the quality of education.

Socioeconomic Implications of AI-driven Job Transformation

Upon closer examination, poverty, education, and employment are deeply interconnected. In developing countries, these factors collaborate to inhibit job access and hinder individuals from securing quality employment due to the lack of accessible, high-quality education and technology. Those unable to afford quality education and technology face heightened difficulty in securing employment. Consequently, individuals with financial means to access quality education and technology have a significant advantage in the job market, leaving those trapped in poverty behind.

Poverty’s impact on education is profound. Despite efforts to increase school enrollment, millions of children worldwide, predominantly in poor countries, remain out of school. UNESCO reports that approximately 244 million children worldwide are not attending school, with the majority residing in impoverished nations. Additionally, UNICEF indicates that over 600 million children globally lack proficiency in reading and math, a problem exacerbated by poverty. In regions such as sub-Saharan Africa and Central and Southern Asia, where poverty is widespread, many children are deprived of quality education.

Deloso, R. (2022), argues that literacy now extends beyond traditional reading, writing, and numeracy skills to encompass digital literacy. Consequently, a small fraction of individuals in developing countries possess adequate literacy levels.

According to Borden magazine, digital literacy encompasses the ability to utilize technology to access and evaluate resources critically and create information. UNESCO regards digital literacy as essential for success in the technology-driven era. As the global digital divide narrows, individuals lacking digital skills fall further behind.

Challenges of Upskilling for AI-related Jobs

The WEF and The EDISON Alliance assert that internet access is fundamental to achieving UN SDG goals, yet only 35% of individuals in developing nations have internet access, compared to over 80% in developed countries. UNICEF reports that two-thirds of the world’s school-age children, approximately 1.3 billion aged 3 to 17 years old, lack internet access at home. According to the World Bank, raising access to 75% would boost the collective GDP of the developing world by $2 trillion and generate 140 million new jobs.

Numerous barriers hinder digital literacy, including inadequate education and training, unreliable infrastructure such as electricity, limited access to technology, and insufficient storage facilities for devices. Furthermore, access is influenced by wealth and gender. For instance, households with higher incomes and education levels are more likely to utilize the internet and other information technologies, thereby enjoying greater opportunities than their uneducated or impoverished counterparts. However, education in developing countries often lacks awareness or training in AI skills, leaving even educated individuals ill-prepared to compete globally against those proficient in AI.

The Role of Government Policies in Mitigating AI-related Job Displacement

Addressing these challenges requires more than merely distributing gadgets or establishing Wi-Fi spots. We must invest in quality education that offers everyone an equal opportunity, irrespective of their location. This necessitates governments, NGOs, and other stakeholders to invest in programs addressing the root causes of inequality.

In regions like sub-Saharan Africa and Central and Southern Asia, characterized by high poverty rates, the disparity in education between affluent and impoverished children is stark. Up to 96% of the poorest children lack access to quality education, highlighting the urgent need to rectify poverty-induced education and employment issues.

Governments in developing countries must prioritize improving and delivering quality education, enhancing digital literacy, and fostering AI skills development. UNESCO recognizes the importance of AI curriculum and has developed AI competency frameworks for students and teachers that schools can adopt.

Conclusion

In conclusion, the worry about AI’s threat to jobs and employment is a luxury many individuals in developing countries cannot afford. Even supposedly affluent and well-educated young people must first grapple with job acquisition. The majority are deprived of quality education and have diminished prospects of securing decent employment. Governments must prioritize providing quality and equitable education. However, as long as poverty persists, many will remain ensnared in a cycle of poverty where employment is scarce.

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