Does technology hinder development?

According to development economist Dani Rodrik, although new technologies allow developing countries possibly to by-pass old models of industrialisation, the main barrier is that in many countries, low-income countries are unable to take advantage of new technologies due to a lack of skills and capabilities. New technology makes low-skilled labour more substitutable for capital. The policy challenge is to invest effectively in human capital to improve capabilities so that new technology can be a blessing rather than a barrier to development.

This longer talk from Professor Ian Goldin at Oxford is also strongly recommended