Technology, growth, and inequality: changing dynamics in the digital era
Digital transformation is a defining feature of our time. The COVID-19 pandemic is accelerating this transformation. The new technologies hold considerable promise. But they also pose new challenges. Digital technologies have dazzled for sure, but they have not so far delivered the expected dividend in higher aggregate productivity growth. And inequality has been rising. As digitalisation and new advances in artificial intelligence transform markets, policies must rise to the challenges of change. The digital economy must be broadened to disseminate new technologies and productive opportunities among smaller firms and wider segments of the labor force. Policies must play their part to better harness the potential of innovation in our digital era and turn it into a driver of stronger and more inclusive growth in economic prosperity.