Need to be prepared for job losses - Taoiseach at Davos
After all, even though we punch substantially above our weight in terms of pharmaceutical and IT production, Ireland — by virtue of its size — is not a major economy.
This is Mr Kenny’s fifth visit to the World Economic Forum and, in all probability, the most important as this year’s gathering is being held amid fears for the global economy, the refugee crisis, and heightened instability in the Middle East.
The annual event in Davos has often been criticised as little more than a talking shop for the rich and powerful — a bunch of capitalists having a fine time of it in a fancy ski resort. That would be to deny its true worth. Yes, Davos is a talking shop, but therein lies its strength.
What started as a cosy chat around the log fire in an alpine chalet is now a huge event, with more than 2,500 participants from 140 countries, among them 40 heads of state.
But the key ingredient is the 1,500 heads of many of the world’s top companies — not just from the West, but from emerging economies as well.
The forum’s official motto is: “Committed to improving the state of the world”. That sounds grandiose, but not without reason. While the forum never attempts solutions to global problems, its strength lies in its ability to spot economic and geopolitical trends and give advance warning about them.
The forum’s latest research shows we are on the cusp of a fourth industrial revolution, with technological advances that will bring profound economic, political and social changes.
The stark reality is that more than 5m jobs will be lost by 2020 as a result of developments in genetics, artificial intelligence, robotics, and other technological changes, according to WEF research. The findings are taken from a survey of 15 economies covering about 1.9bn workers but they have implications for all economies, including our own.
“To prevent a worst-case scenario — technological change accompanied by talent shortages, mass unemployment, and growing inequality — reskilling and upskilling of today’s workers will be critical,” the researchers say.
“It is simply not possible to weather the current technological revolution by waiting for the next generation’s workforce to become better prepared.”
Administrative and office jobs will account for two thirds of the losses, with women faring worse than men because of their low participation in the Stem fields of science, technology, engineering, and mathematics.
Doing nothing about such profound technological change is not an option. Governments everywhere — Ireland included — have a duty to create the proper environment in education and business to ensure this generation of school and college leavers are equipped for the challenges ahead.
Mr Kenny will speak today at a panel debate on the global economy and meet senior business figures.
Let us hope he is not in Davos just to talk but also to listen.
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