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82 L. SCHLOGL AND A. SUMNER
productive ARS in the first place, from which profits can be siphoned
off for redistribution. In the absence of the existence of such a sector,
there may be a case for the provision of international aid to support basic
income guarantees or automation adjustment assistance overseas.
In many countries, one could say that the coping strategy adopted so
far has been to invest in currently labor-intensive sectors such as infra-
structure and construction. A—risky but potentially inevitable—long-
term coping strategy for developing countries would be to anticipate
automation trends and to try to (further) develop a productive post-in-
dustrial sector. If industrialization begins to look increasingly unattractive
as a job creation strategy due to reshoring of hitherto outsourced pro-
duction in value chains, countries would be well advised not to invest in
the costly creation of manufacturing clusters but rather in the growth of
a long-term ARS. Such an ARS could, for example, involve the social,
education and healthcare sectors, and some forms of tourism, and infra-
structure construction which are generally considered resilient despite
increasing service automation. The problem with such an approach is that
highly productive and tradeable services are skills-intensive, and non-trad-
able services (such as social care, personal services, etc.) are not (yet)
highly value-adding, may not be sufficiently scalable, and may generally
be too heterogenous to be targeted by post-industrial policies, in a similar
way that industrial policies targeted the emergence of industrial clusters.
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Disrupted Development and the Future of Inequality in the Age of Automation