economy

2 Takeaways from the 2018 Spring Meetings by the International Monetary Fund (IMF) and the World Bank

Every year the IMF and the World Bank hold a conference-style event that is referred to as the Spring Meetings. These Spring Meetings bring together central bankers, ministers of finance and development, private sector executives and academics to discuss global issues such as global economy, international development and the world’s financial markets.

This year I had the opportunity to attend the 2018 Spring Meetings where discussions were held about threats and opportunities of technological changes as it affects global economies and policies. Here are 2 takeaways from the 2018 Spring Meetings focused on technology and innovation including some of my related articles:

  1. TECHNOLOGICAL ADVANCEMENTS AND JOBS
    •  Industrialization Paradigms
      • Typical Industrialization: Agriculture → Manufacturing → Services
      • Current Industrialization: Agriculture → Services
    • Impacts of Technology
      • Technological Changes → Job loss → Re-skill → New Jobs
      • Some jobs will never be recovered
      • Flow of technology and expertise doesn’t flow easily across countries
      • Even within countries technological impacts are uneven causing inequality
      • A good balance between data privacy and business models is needed that benefits societies at a larger scale
      • Depending upon where innovation (internal or external) to the organizations is can impact society at different levels
      • A good balance of foundations and advance education is needed
      • Specialized knowledge can negatively impact holistic societal impacts
    • Artificial Intelligence (AI)
      • Dystopian Views: AI will take over most human activities and would rule over humans
      • Middle Ground Views: AI will augment and enhance human activities but never replace humans
      • Utopian Views: AI will take over most human activities that would free up time for humans to do other things
    • The Brave New World of Data
      • Data quality issues are borderless
      • Standard data definitions of economic data has to be agreed upon and used
      • Data is being used to build economic policies
      • Data is being used to create multinational economic blocs
      • Data is being used to assess the humming of the global economy
      • Data Standardization and Harmonization àData Transparency àData Accountability
  1. PARTNERSHIPS
    • For economic prosperity, no organization, country, region is an island in of itself
    • Bridges need to be created across, public, private, academic, non-profit and shareholders
    • Regulations are slow to adopt to technological advancements and can be too heavy-handed or light-touch if not properly understood by policy makers
    • Grassroots changes are affecting how governments function and adapt
    • Technology and innovation should have executive level consideration across all branches of government and not just a ministry or a few people

Bonus: IMF’s Innovation Lab (iLab)

IMF has created the iLab whose goal seems to be to look at how technology and innovation is affecting the global economy and economic policies in various countries.

Related Articles:

  1. 5 QUESTIONS TO ASK ABOUT ARTIFICIAL INTELLIGENCE
  2. WHERE IS MY BIG DATA COMING FROM AND WHO CAN HANDLE IT
  3. 5 QUESTIONS TO ASK ABOUT YOUR INFORMATION
  4. 5 QUESTIONS TO ASK ABOUT PREDICTIVE ANALYTICS
  5. 5 QUESTIONS TO ASK ABOUT YOUR BIG DATA
  6. 5 QUESTIONS TO ASK ABOUT PRESCRIPTIVE ANALYTICS
  7. IDENTIFYING ORGANIZATIONAL MATURITY FOR DATA MANAGEMENT
  8. UNDERSTANDING AND APPLYING PREDICTIVE ANALYTICS
  9. 5 OBSERVATIONS ON BEING INNOVATIVE (AT AN ORGANIZATIONAL LEVEL)
  10. 5 OBSERVATIONS ON BEING INNOVATIVE (AT AN INDIVIDUAL LEVEL)
  11. HOW DO YOU COMMUNICATE?
  12. 5 QUESTIONS TO ASK ABOUT YOUR BUSINESS PROCESSES
  13. 75 QUESTIONABLE THOUGHTS ABOUT ORGANIZATIONAL TRANSFORMATION
  14. 35 CONCEPTS THAT AFFECT ORGANIZATIONAL TRANSFORMATION EFFORTS
  15. SPICE FOR BUSINESS TRANSFORMATION
  16. 5 QUESTIONS TO ASK ABOUT YOUR CULTURE

 

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Budget Sequestration is Real even if it is not…

Yes I know the data is old but bear with me on this. According to a 2003 Brookings study on Public Service, the U.S. Federal Government is composed of 3,900 political appointees, 2.7 million civilian personnel, 1.5 million uniformed personnel and 5.6 million federal contract workers. This means that the federal contractor workforce is greater than the political appointees, civilian and uniformed personnel combined. I will let this sink in for a while…

As time progresses, the number of federal contract workers is only going to increase over time. These federal contractors are not only the big boys as found on the top 100 federal contracts list but also small companies who may only have one or two contracts with a federal government agency. For an almost complete list of the number of federal contractors visit here. OK, what this means in terms of the ground reality is that when the sequester hits, it will affect the federal contractors community first as it will result in cancellation of contracts, non-renewal of projects and no issuance of new task orders which will cause hiring freezes and federal contractors looking into other sources of revenue to stay afloat. While the sequester will most definitely affect the small businesses but it will also affect the large federal contractors as well due to the uncertainty caused by lack of appropriate action.

You may ask that why we should care about this right now since the sequestration has not happened yet and it will be decided in March if it goes ahead or not. This is where I come in to inform you that even though sequestration has not started officially but just the threat of it has forced federal agencies to unofficially start cutting their budgets and some federal contractors have already frozen hiring somewhat. In my conversation with a federal contractor they indicated that, “we never planned for this.”

So now, lets connect the dots…simply put sequestration (or threat of sequestration) is resulting in hiring freezes. Since people cannot find higher-paying good jobs with the federal contractors, people have cut down on consumption of products, services and delayed purchase of any large items.  Since 70% of U.S. economy is based on consumerism, you can image what long-lasting effects sequestration is having and will continue to have directly within the DC Metropolitan areas but also across the nation.