The International Labour Organization estimates that 73.4 million people aged 15-24 do not have a job (43% of global youth), and three times as many young people are underemployed. At the same time, 40% of employers report skills shortage for entry level vacancies, according to McKinsey (Social Initiative 2015). Hence, skill gaps have become an issue to both employers and the unemployed. This trend is exacerbated by technological advancements which are rapidly replacing manual jobs, leaving millions of young people unprepared to participate in the 21st-century knowledge economy.
Three aspects of the skills gap problem need to be addressed in order to find a sustainable solution: urgency, proficiency in technology, and job market readiness. The 2016 World Development Report finds that returns to education are particularly high for ICT-intensive occupations. The wage premium for working in ICT-intensive occupations is around 5% for both men and women in developing countries (WDR 2016). This suggests a tremendous potential of technology education for reducing poverty and boosting prosperity in the developing world.
Susan McPherson is one of those inspiring women working at the wonderful intersection of business and social impact. Susan explains why storytelling is fundamental for success, in the business and nonprofit worlds.
Susan believes in the power of information and knowledge to drive more positive change in the world. Susan and I talk extensively about the power of storytelling for successful communication campaigns. And she gives important tools to effectively implement communication strategies for nonprofits and social entrepreneurs. Susan develops the fundamental communications advice: make it simple, shareable, and fill with empathy. And, most importantly, set up goals and measures of success from the very beginning.
Susan also talks about the great things going on in diversity and inclusion, and also the challenges ahead. She thinks that we know what to do to make more young women embrace math and sciences, and that now is time to move to action. Susan says that you “can’t be what you can’t see” and that more funding is needed for women-led tech companies and ventures.
Call it “secular stagnation,” or the disappointing “New Mediocre,” or the baffling “New Normal” – or even the back-from-the-brink “contained depression.” Whatever label you put on today’s chronic economic doldrums, it’s clear that a slow-growth stall is afflicting many nation’s economies – and, seven years into a lackluster recovery from the global financial crisis, some fragile economies seem to be lapsing into another slump.
As policymakers struggle to find a plausible prescription for jump-starting growth, a tug-of-war is under way between techno-utopians and techno-dystopians. It’s a struggle between optimists who foresee a world of abundance thanks to innovations like robot-driven industries, and pessimists who anticipate a cash-deprived world where displaced ex-workers have few or no means of earning an income.
To add a bracing dose of academic rigor to the tech-focused tug-of-war, along comes a data-focused realist who adds a welcome if sobering historical perspective to the debate. Robert J. Gordon, a macroeconomist and economic historian at Northwestern University, takes a longue durée perspective of technology’s impact on growth, wealth and incomes.
Gordon’s blunt-spoken viewpoint has caused a sensation since his newest book, “The Rise and Fall of American Growth,” was launched at this winter’s meetings of the American Economic Association. His analysis injects a new urgency into policymakers’ debates about how (or even whether) today’s growth rate can be strengthened.
When Gordon speaks at the World Bank on Thursday, March 31 – at 11 a.m. in J B1-080, as part of the Macrofiscal Seminar Series – economy-watchers can look forward to hearing some ideas that challenge the orthodoxies of recent macroeconomic thinking. His topic – “Secular Stagnation on the Supply Side: Slow Growth in U. S. Productivity and Potential Output” – seems likely to spark some new thinking among techno-utopians and techo-dystopians alike.
To watch Gordon’s speech live via Webex – at 11 a.m. on Thursday, March 31 – click here. To dial in to listen to the audio, dial (in the United States and Canada) 1-650-479-3207, using the passcode 735 669 472. For those telephoning from outside the United States and Canada, the appropriate numbers can be found on this page.
- Income Inequality
- Global Inequality
- global unemployment
- Macroeconomics and Fiscal Management
- Macroeconomics and Economic Growth
- macroeconomic policy
- Macroeconomic Management
- Macroeconomists for the Poor
- Labor and Social Protection
- Public Sector and Governance
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- Global Economy
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Another contribution to the ‘Power, Politics and Positive Deviance’, conference which took place February 8, 2016 at La Trobe University, Melbourne.
I finally got round to reading The Power of Positive Deviance, in which management guru Richard Pascale teams up with the two key practitioners – the Sternins (Jerry and Monique) – to analyse over 20 years of experience in developing the Positive Deviance (PD) approach, building on their pioneering experience working on malnutrition in Vietnam in the early 1990s. Since then, PD approaches have spread and morphed in 50 countries North and South and been used on everything from reducing gang violence in inner city New Jersey to trying to reducing sex trafficking of girls in rural Indonesia.
The starting point of PD is to ‘look for outliers who succeed against the odds’ – the families that don’t cut their daughters in Egypt, or the kids that are not malnourished in Vietnam’s poorest villages. On any issue, there is always a distribution of results, and PD involves identifying and investigating the outliers.
But it also matters who is doing the looking. The community must make the discovery itself – it’s no use external ‘experts’ coming in, spotting PD and turning it into a toolkit. Whether it is US hospital staff taking responsibility for tackling MRSA, or poor villagers selling their daughters in Indonesia, this gets round the defensive ‘immune defence response’ that solutions peddled by experts aren’t relevant.