The publication, “Power and Progress: Our Thousand-Year Struggle over Technology and Prosperity,” authored by Daron Acemoglu and Simon Johnson, provides a comprehensive analysis of the intricate relationship between power, technology, and societal prosperity. This 546-page volume challenges the prevalent belief that technological advancements inevitably lead to collective benefits, advocating instead for a more inclusive approach to harnessing the rewards of technology.
The authors posit that the trajectory of technological progress and the manner in which society allocates its benefits are pivotal in determining whether technology primarily serves a privileged elite or the broader populace. They underscore that the distribution of technological gains is not predetermined, but rather influenced by the institutions and policies established by society.
According to Acemoglu and Johnson, technology has the potential to either automate processes and precipitate a shift from labour to capital, leading to exacerbated inequality, or to enhance human productivity and engender shared prosperity. They underscore the significant role of institutions in shaping the repercussions of technological change, asserting that a more inclusive approach to technology can only emerge if the fundamental structures of social power evolve.
The book draws upon historical examples, spanning from the industrial revolution to the contemporary era, to elucidate the impact of technological change on societal welfare. It foregrounds how technological innovation, in the absence of appropriate policies and countervailing forces, can exacerbate inequality and consolidate power in the hands of a select few.
Acemoglu and Johnson also scrutinise the implications of Artificial Intelligence (AI) for the future of the labour market, highlighting the potential for AI to either augment productivity or render human labour redundant. They emphasise that the outcomes of technological innovations hinge on the incentives delineated by state policies and the presence of countervailing forces to balance the interests of labour and capital.
Furthermore, the publication addresses the global implications of technological change, emphasising that developing countries, with substantial labour forces, can be substantially affected by technological advancements in advanced economies. The authors underscore the significance of national institutions in mediating the impact of technology and advocate for policymakers and stakeholders to engage with the insights presented in the book.
In conclusion, “Power and Progress” presents a compelling case for reconceptualising the nexus between power and technology to attain more equitable and inclusive outcomes. The authors’ expertise in economics, coupled with their extensive research, renders the book a valuable resource for comprehending the intricate dynamics of technological change and its ramifications for society.
The review, authored by a senior research fellow at the Institute of Development and Economic Alternatives and an associate professor of economics at Lums, offers a credible and insightful perspective on the book’s significance. With its accessibility and abundance of historical examples, “Power and Progress” serves as a valuable resource for policymakers, scholars, and individuals seeking to grapple with the complexities of technological change and its societal impact.
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