Essay On Digitization

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As the Global economy pushes deeper into the 21st century one of the largest challenges it will face is labor digitization. This is the practice of decreasing reliance on conventional labor in favor of other forms of labor. This trend of digitization is only going to get more popular as the price of technology decreases. However, this trend is especially challenging for developing nations. These countries don’t necessarily have the infrastructure to support labor digitization and many of them rely on their cheap exports for economic growth. With their exports no longer cost effective, due to the high cost of human labor versus robotics, they will have to change their economies just to survive. Infrastructure development is needed along with decreased export reliance, increased skilled labor, increased communication between the private sector and educational institutions, and increased domestic consumption and urbanization. The task is to carry out that change in a stable and economically beneficial way and it should be recognized that all nations are involved together, both developed and developing, as they are all part of the global economy. The People’s Republic of China is arguably one of the most proactive nations with regards to mitigating the effects and adapting to labor digitization. It has invested heavily in its manufacturing industry for over half a century, and has also invested in a new digital economy. The People’s Republic of China has outlined its digitization goals in its 12th five year plan. One of the first priorities of this plan is cutting reliance on the export sector. To do so, the Chinese government has invested heavily in domestic consumption. Additionally to solve its overcapacity in manufacturing Chi... ... middle of paper ... ... for cheap labor, while evenly adding funds to education for specialized labor. While this process is taking hold, corporations need to be incentivised to use said nation’s labor for skilled purposes. This can be undertaken through negotiations and tax incentives. Additionally, new jobs during this time will be created from investment in sustainable energy, the manufacturing of high-quality products and materials, and big data jobs. Also new outsourcing and crowdsourcing jobs will begin to develop as developed nations begin skilled labor outsourcing, not just cheap and unskilled labor outsourcing. With these new job opportunities and with increased effort by governments, the job market for skilled labor will skyrocket. Cumulatively, the adaption in this way to labor digitization will allow a state in any economic situation to grow economically for decades to come.

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