Menu

Blog

Aug 14, 2017

This Economic Model Organized Asia for Decades. Now It’s Broken

Posted by in categories: economics, employment, food, robotics/AI, sustainability

Pan’s company is at the vanguard of a trend that could have devastating consequences for Asia’s poorest nations. Low-cost manufacturing of clothes, shoes, and the like was the first rung on the economic ladder that Japan, South Korea, China, and other countries used to climb out of poverty after World War II. For decades that process followed a familiar pattern: As the economies of the early movers shifted into more sophisticated industries such as electronics, poorer countries took their place in textiles, offering the cheap labor that low-tech factories traditionally required. Manufacturers got inexpensive goods to ship to Walmarts and Tescos around the world, and poor countries were able to provide mass industrial employment for the first time, giving citizens an alternative to toiling on farms.


Automation threatens to block the ascent of Asia’s poor. Civil unrest could follow.

Read more

Comments are closed.