Technological advancements and human development: A tale of two worlds

Technological progress has been transformative in recent years. There have been epoch-making breakthroughs, especially in information and communication technologies. Solutions like artificial intelligence (AI), advanced robotics and digital transformation are profoundly reshaping industries and our daily lives. They boost productivity across multiple sectors. According to a report by the McKinsey Global Institute, AI alone could contribute an additional $13 trillion to the global economy by 2030.

However, the outcomes of technology, such as rapid economic growth and improved quality of life, are not evenly distributed. While some nations are able to leverage the prowess of technology for their communities, others are ill-equipped to do so. One of the most glaring examples of technology leaving a vast part of the globe untouched is the digital divide. In developed countries, high-speed internet, smartphones and access to advanced technologies are ubiquitous, providing opportunities for education, employment and economic advancement.

However, over two billion people do not have access to reliable data connectivity. The internet penetration rate in sub-Saharan Africa stands at just 39% compared to nearly 93% in Europe.

The lack of basic digital infrastructure leaves communities marginalized, and unable to fully participate in the global economy. While many of the world’s richest countries continue to achieve record levels of human development, the poorest countries remain below their pre-COVID-19 crisis levels.

Inequality across the world is rising again: after 20 years of convergence, the gap between the richest and poorest countries has started to widen from 2020. The result is deepening inequality, exacerbating political polarization and creating global gridlock that must be urgently addressed. These disparities raise a crucial question: How can we leverage technology to improve human development everywhere, not just in a few regions?

We must realize that technological advancements alone cannot foster human progress. It is essential to integrate these advancements with inclusive, people-centred institutions that promote equity and opportunity for all. As demonstrated by this year’s Nobel laureates in economics – Daron Acemoglu, Simon Johnson and James Robinson – societies with poor rule of law and exploitative institutions fail to generate sustainable growth or positive change. Only inclusive institutions can promote economic growth as well as human development in all its dimensions – freedom from hunger, ill-health and social deprivation – while also ensuring gender and income equality and access to quality education.

In other words, the future of human development depends on our collective commitment to building an inclusive and equitable global society that achieves the Sustainable Development Goals (SDGs). SDG8, for instance, calls for inclusive and sustainable economic growth, full and productive employment, and decent work for all. This can be achieved only when governments and businesses commit to this goal and invest in technology and people-centred policies.

Human development is measured in terms of three factors:

In each of these areas, technology can help, provided we have the collective resolve to use it for the common good.

Digital transformation in governance can be a game-changer. Estonia, in Northern Europe, has embraced a digital-first approach that allows nearly all government services to be accessed online, increasing transparency and reducing bureaucracy. Similarly, AI is revolutionizing judicial systems, streamlining case management and ensuring faster delivery of justice in many countries.

Technology can also play a critical role in fostering job-led growth, particularly in developing economies. AI, automation and other emerging technologies have the potential to create millions of new jobs. A World Economic Forum report estimates that AI and automation could generate 97 million new jobs globally by 2025.

Rwanda offers a promising example. The Rwandan government’s partnership with Carnegie Mellon University to establish a regional centre of excellence for ICT education illustrates how developing nations can harness technology to drive job creation and economic growth. Similar initiatives are needed across the Global South to ensure that emerging technologies foster inclusive prosperity and contribute to the achievement of the SDGs.

Former UN secretary-general Kofi Annan once said, “Our challenge is to ensure that globalization becomes a positive force for all the world’s people, instead of leaving billions of them behind in squalor.”

The rapid pace of technological advancement holds immense potential for improving lives. By combining technological innovation with inclusive governance and targeted investments in education, healthcare and infrastructure and by aligning with the collective resolve to meet the SDGs, we can rise to this challenge and create a more just and equitable world where human development flourishes in every corner of the globe. We can ensure that the benefits of the digital age are shared by all.