The Disruptions in Disruptive Technologies: Implications for the Developing World

It is safe to say that the increasing growth in access to technology has transformed the global economy and society’s ability to drive social innovation. In the “Disruptive Technologies” article, the authors show that there’s no sign of this pattern slowing down and list twelve emerging technologies that have the power to “disrupt the status quo, alter the way people live and work, and rearrange value pools” including mobile internet and energy storage, just to name a few. [1]

With my background in international development in mind, I asked myself: if these technologies disrupt the status quo, what would this mean for developing countries and their ability to drive social innovation? The article pointed out that technologies such as energy-storage devices could increase electricity access in these countries. [1] The “Global Forces” article also touted the developing world’s new opportunities for rapid economic progress due to technology as a disruptive force. [2]

However, it is important for governments and policymakers to recognize the challenges that developing countries will face in response to these technologies and highlight solutions to these challenges. In the words of Kemal Dervis, “The key to enabling continued convergence - even at a fairly rapid pace – is good political governance. Developing country governments must implement policies aimed at managing the impending transformation, while maintaining social solidarity and cohesion.” [3]

For instance, the use of knowledge work automation and advanced robots as disruptive technologies will most likely render obsolete the low-wage work that developing countries currently offer, thus further opening up the possibility for income inequality. [3] In order to cope, it is vital that governments and policymakers in developing nations find ways to invest in education reform to supply citizens with the necessary skills to withstand the shock, keep the workforce competitive, and boost innovation. [4] One way that governments practice ‘good political governance’ is by recognizing the urgency of challenges early and create necessary partnerships to overcome these challenges. One example of such a partnership could be with NGOs or private sector companies that could help provide skills-based training to workers affected.

Another example is cloud computing as a disruptive technology. Due to developing countries’ struggles to access inexpensive broadband and data servers and data infrastructure centers, their ability to utilize cloud computing is limited and underscores the digital divide. These countries’ lack of legal and regulatory agendas concerning privacy also present concerns with the use of cloud computing. [5] Cloud computing has the potential to radically alter society in the developing world, especially when combined with the use of mobile phones, but policymakers will have to step up to the plate and resolve the privacy and infrastructure issues in order for citizens to take greater use of cloud computing and its opportunities for social innovation.

There is no doubt that disruptive technologies will be game changers for societies and economies across the globe. However, developing countries will have to ask themselves: How can we overcome the challenges and use these disruptions to contribute to our development, while allowing our citizens to participate in the benefits of these technologies and increased possibilities for innovation?

[1]Disruptive Technologies: Advances That Will Transform Life, Business, and the Global Economy (McKinsey Quarterly, May 2013); http://www.mckinsey.com/business-functions/business-technology/our-insights/disruptive-technologies

[2] The Four Global Forces Breaking All the Trends (McKinsey Quarterly, April 2015); http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-four-global-forces-breaking-all-the-trends

[3] Why Emerging Economies Should Embrace Disruptive Technologies (World Economic Forum, October 2015)  https://www.weforum.org/agenda/2015/10/why-emerging-economies-should-embrace-disruptive-technologies/

[4]Jobs, Technology, and Disruptive Change (Information and Communications for Development Blog, February 2014) http://blogs.worldbank.org/ic4d/jobs-technology-and-disruptive-change

[5]Poor Countries Struggling to Harness Cloud Computing (SciDev, December 2013) http://www.scidev.net/global/communication/news/poor-countries-struggling-to-harness-cloud-computing.html