BNR's Badea: Technology development and implementation of AI models no longer optional for emerging economies

Leonardo Badea, First Deputy Governor of BNR, emphasizes the necessity of technology and AI for emerging economies to escape the middle-income trap. He describes a shift towards a binary economy where value derives from information and technology rather than physical labor. Badea argues that competitive advantages based on low labor costs are unsustainable, as advanced economies target high-margin segments of global value chains. He highlights the importance of investment in research and education for sustainable economic growth, which should be generative, fostering future prosperity. The impact of AI on the labor market is complex, with potential displacement effects countered by the creation of new tasks. Badea sees the rise of AI and robotics as a new developmental phase, marking a shift towards a knowledge-driven economy.