The Importance of Technological Progression in Impoverished Countries

In mid-2023, United Nations Secretary-General António Guterres warned that almost 80 years following the end of World War Two, “the global financial architecture is outdated, dysfunctional, and unjust. It is no longer capable of meeting the needs of the 21st-century world: a multipolar world characterized by deeply integrated economies and financial markets. But also marked by geopolitical tensions and growing systemic risks.” Further, the Secretary-General cautioned that “the current global financial system exacerbates inequalities, denying the poorest countries the credit and debt support they need and deserve”. We address the question: How does the transfer of modern technologies improve the economic development of impoverished nations? In this paper we demonstrate that rapid technological change is a double-edged sword—bringing significant productivity gains and economic progress while also causing profound societal disruptions and posing a threat of political instability in parts of the world. Nevertheless, we believe that a rapid and sustained transfer of these technologies holds great promise for the rapid development of today’s less developed nations.