Robots threaten jobs in developing countries like the Philippines, according to the United Nations Conference on Trade and Development (Unctad).
In a policy brief, Unctad said two-thirds of jobs in developing countries could disappear with full automation. The use of robots could also make it more expensive to operate in developing countries.
“The increased use of robots in developed countries risks eroding the traditional labor-cost advantage of developing countries,” the policy brief said.
“The share of occupations that could experience significant automation is actually higher in developing countries than in more advanced ones, where many of these jobs have already disappeared, and this concerns about two-thirds of all jobs,” it added, citing World Bank research.
The policy brief says that industrial robots have primarily been deployed in the automotive, electrical and electronics industries.
Reshoring has also been slow to happen and hasn’t yet undermined continued offshoring. As opposed to offshoring, reshoring sees companies moving their labor operations back to developed countries, to be carried out by robots or automated systems.
However, the paper advised developing nations to join and take advantage of the digital revolution to counter reshoring and fully benefit from an expanding global economy.
The paper explained that disruptive technologies always bring risks, but they also open up new opportunities. This requires reshaping education systems to create the managerial and labor skills needed to operate new technologies, “as the combination of skilled labor and automation may be superior to either on its own,” said the report.
It also requires establishing Internet links between massive data storage and the computing devices that power the increased use of robots, and developing the associated regulatory frameworks.
Moreover, enhancing regional trade integration among developing countries can help them attain a sufficient market size to make affiliates of transnational corporations forego reshoring and maintain production in these countries.