Rethinking poverty reduction in an automated economy

Gibson Nyikadzino

The World Economic Forum (WEF) in January noted that in ten years time, fifty percent of jobs will be changed by automation. However, automation is not expected to eliminate more than five percent of the jobs. On the other hand, the United Nations anticipates reducing poverty in the world by 2030.

Further statistics reveal in the next decade 1.2 billion employees worldwide will be affected by the adaptation of automation technologies and Artificial Intelligence (AI). As economies mutate, digital transformations occurring the world over are believed to be affecting the vulnerable and low-skills populations, thus, these groups are in need up-skilling. 

In the development context, this might cause the rise in inequality and challenges in reducing poverty levels. Already, Africa’s most populous nation, Nigeria, is the world’s poverty capital after overtaking India, despite India’s population relatively six times more Nigeria’s. By 2050, Nigeria is expected to be the world’s third largest country by population and its poverty problem will likely worsen. The visible poverty levels are likely to continue in sub-Saharan Africa in general, where Nigeria and the Democratic Republic of Congo (DRC) in particular, are set to house the majority of the world’s poor. While poverty is an African-wide problem, only Ethiopia is on track to meet the United Nations’ Sustainable Development Goal (SDG) of ending extreme poverty by 2030.

Last year the World Bank (WB) recorded that extreme poverty in Zimbabwe rose from 29 percent in 2018 to 34 percent, an increase from 4.7 to 5.7 million. Putting it bluntly, Zimbabweans and their leaders are still finding it hard to start forty years into independence.  

Ending poverty is a huge assignment, and working towards its reduction is a practice that can be achieved in equal measure because of vast knowledge and innovations around sustainable practices.

Embracing modern communication technologies or ICTs and the internet of things is an imminent mission that governments in the less economically developed countries should embark to reduce poverty, boost agriculture, improve the health being of the people among other things. As expected, losing jobs in the next decade and joining the poverty bracket will make many people part of the miserable statistics if they do not rethink adaptation to modern technologies.

The forms of journalism today are not what we had just five years ago. The introduction of solar or electric powered vehicles will push most petrol attendants out of work, for instance. In Europe, Sweden has already started banning diesel powered vehicles.  The education sector too is facing transformation; e-learning is becoming an effective form of knowledge exchange. Education and health sectors are becoming ICT driven. New skillsets are therefore required in reducing poverty and adapting to the vagaries of the changing world of work.

Oftenly, in Africa, some academic qualifications have become irrelevant; rendering holders useless as they fail to compete for jobs in the interconnected world and reduce poverty. These academic disciplines have become moribund and dysfunctional.

Kenya’s academic and public intellectual Prof. Lumumba says: “Africa must review and change the education curriculum in order to meet the modern challenges and future opportunities. We must not lock ourselves in a state of permanent lamentations.”

Talking about and embracing modern technologies alone is not going to change Africa’s fortunes in poverty reduction, but a change mindset.

No single sector has an answer to the reduction of poverty. It calls for collaboration from government, private sector and citizens with interest in socio-economic development. It is imperative to learn about what has worked elsewhere and realise that at the heart of the success stories were politicians taking hard decisions and taking more action than ideological rhetoric.

Africa should work towards more growth to address inequality and reduce poverty. Zimbabwe by 2030 is expected to become a middle-income economy. Figures have been released by President Emmerson Mnangagwa’s government to squeeze in citizens the idea that the country’s economy has been growing, “correct fundamentals” have been put in place. The statements, albeit, have been meaningless to the layman who is pummeled by the harsh economic conditions.

It does not mean that growth automatically reduces poverty, but no growth definitely implies that poverty is not going to be reduced.

In fighting to reduce poverty, the future jobs demonstrate that the automation revolution will not necessarily lead to a loss of work. Rather, it represents an opportunity and a call to action for up-skilling to reduce poverty and address inequality.

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