The new US International Development Finance Corporation (USDFC) will be considerably larger than its predecessor, and it will also be more focused on low and lower middle income countries. It will have new tools to deliver but face expanded competition.
Now that computers are capable of taking the jobs that require brain as well as brawn, it may appear there is little left for humans to do. But there are reasons to doubt the pessimism. This note reviews some of the literature around AI, automation, jobs, and development prospects with a focus on potential implications for developing countries and in particular for Africa.
There is a significant and ongoing ramp-up in support for explicitly subsidized official development finance to the private sector around the world, but its role remains poorly defined. Lessons from the aid effectiveness literature as a whole and principles on effective use of aid suggest the need for approaches that do not merely finance the marginal private investment.
The UK’s Secretary of State for International Development oversees an aid-financed R&D budget that is larger than that of the next 15 biggest donors combined. At the moment, a considerable proportion of that UK R&D spend goes towards solving global technological challenges related to neglected tropical diseases including malaria, and a considerable proportion again towards local evaluation of aid-financed development interventions. Much of the rest is somewhat opaquely distributed to British universities for research supposedly related to development.