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ric h c ountries s hipping lows k ill tas k s abroad when offs horing c os ts little, thus driv ing apart
the wages of s k illed and uns k illed work ers at home. Ov er time, though, offs horing rais es
wages in les s s k illed c ountries ; that mak es innov ation at home more entic ing. Work ers are
in greater demand, the inc ome dis tribution narrows , and the ec onomy c omes to look more
lik e the pos ts ec ondworldwar period than the 1970s and their aftermath.
Ev en if that model is mis tak en, the ris e of the emerging world is among the bigges t reas ons
for optimis m. The larger the s iz e of the global mark et, the more the world benefits from a
giv en new idea, s inc e it c an then be applied ac ros s more ac tiv ities and more people.
Rais ing As ia’s poor billions into the middle c las s will mean that millions of great minds that
might otherwis e hav e toiled at s ubs is tenc e farming c an ins tead join the modern ec onomy
and s hare the burden of k nowledge with ric hworld res earc hers —a s haring that information
tec hnology mak es ev er eas ier.
It may s till be the c as e that s ome parts of the ec onomy are immune, or at leas t res is tant, to
s ome of the produc tiv ity improv ement that information tec hnology c an offer. Sec tors lik e
health c are, educ ation and gov ernment, in whic h produc tiv ity has prov ed hard to inc rea...
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- Spring '14