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Development Implications of the Digital
Transformation of Labour
Perspectives from German
Development Cooperation:
Linda Gabel
Deutsche Gesellschaft für internationale
Zusammenarbeit (GIZ) GmbH
Seite 224.04.2018
Sector Project:
Digital Development
1. Introduction: GIZ Sector Project Digital Development
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About 380 projects implementing digital solutions in 80 countries
ICT Projects in German Development Cooperation
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2. Relevance of Digital Transformation of Labour
We need: 20 million jobs
for Africa
One strategy: Jobs in
the global South to end
poverty
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How can the digital economy help us to create jobs and
end poverty (to reach SDG 1 and SDG 8)?
What can we do to prevent or minimize the negative
impacts of the digital economy and use its potentials at
the same time?
What is our responsibility as German development
cooperation and what is the role of the private sector?
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3. Definition: Digitalisation of Labour
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Digital Labour Market Trends:
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Digital Labour Market Trends
AutomationPlatform
Economy / IT-Sourcing
Digital Enterprise Entrepreneurship
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4. Development Implications
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Automation
• Job loss through automation and reshoring
• Two-thirds of jobs in developing nations could
be wiped out by automation (World Bank 2016)
• Threat that gender-specific challenges of
employment increase on a more technology-
based labour market
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Digital Platforms
• Inadequacy of earnings (‘race to
the bottom’)
• Labour oversupply
• Poor communication and lack of
information in the work process
• Health and safety issues
• Discrimination and poor
treatment
• Long and distorted working
hours
• Lack of collectively bargain and
negotiate
• New employment opportunities
• Can improve payment practices,
• Higher degree of inclusivity and objectivity
• Enable workers to transcend some of the
constraints of their local labour markets
(ineffective, corrupt market and labour
institutions)
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IT-Sourcing/Digital Offshoring
• Poor working conditions
• High rates of staff turnover
• Dependence from their Western employers
• Impact sourcing (include socioeconomically
disadvantaged individuals into the online
offshoring market): jobs and income to poor
communities and helps workers learn
marketable skills
• New jobs on a global labour market
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Titel
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Digital Enterprise and
Entrepreneurship
• Start-ups: just few job opportunities
• Competiveness on a global market
• Exclusion of a huge labour force
lacking access and/or skills for
these jobs
• New employment opportunities in the
long-term
• Participation on a global market (e.g.
eCommerce)
• Creating a local ecosystem
• Fostering innovations
• Stimulating the local market (mainly
urban areas)
How can we support digital
entrepreneuship and enterprises
without doing harm to local markets?
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Strategic Partnerships with the European Private Sector
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How can we minimize the threats and
leverage the opportunities of digital work?
• Enable participation in the digital economy
through education (capacity building)
Providing digital literacy and IT-Skills,
especially for women and girls
• Strenghten local economies through support of
digital enterprises and start-ups
• Strategie partnerships with the European
private sector
• Supporting fair working condition
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Future Skills
• changes across a full range of
education (formal and informal)
• skills requirements change quickly
• Lifelong learning opportunities
• Digital skills
• Demand for computer programming
skills
What future skills will we need to address the new labor market
requirements and to make sure that no one will be left behind in the
digital economy?
Is it enough to provide access and digital literacy skills?
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bmz.d
e
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Initiative #eSkills4Girls – Digital Competencies for Women and Girls
• Digital Economy: Big potential for women empowerment
• initiative #eSkills4Girls promotes education and employment opportunities for
women and girls in the digital economy
• Important topic for the German G20 Presidency
- Africa Code Week with SAP: coding
workshop for 1.3 million youth in
more than 35 countries
- Indonesia: Girls Innovation Camps
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• Jobs: Is the digital economy an answer to the job crisis in
the global South? – How?
• Skills: How to create a robust and future oriented
workforce in the Global South? What are the skills they
need?
• Global / Local Market: How can coders from the global
South compete on a global market? Shoudl we rather
focus on: How can digitalization strengthen local labor
markets?
5. Discussion
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THANK YOU
Contact: linda.gabel@giz.de
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