GJ-IIMA-SPENCE

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GJ-IIMA-SPENCE
Digital technology raises optimism in world: Michael Spence

Ahmedabad, Feb 4 () Noted economist and Nobellaureate Michael Spence on Tuesday said the digital technologydeveloped in the last 25 years has changed the world incountless ways.

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He also said the use of digital technology has raisedoptimism in the world as economies and parts of societies arein the process of being built on a digital foundation, whichwill result in more equitable wealth distribution.

"Digital technology, which has developed in the last25 years has brought a lot of change which was not imaginedbefore. The use of digital technology has raised optimism inthe world as economies and parts of societies are in theprocess of being built on a digital foundation, which willresult in more equitable wealth distribution," Spence said.

He was speaking at a symposium at the Indian Instituteof Management- Ahmedabad (IIM-A).

Speaking on Mahatma Gandhi's "trusteeship principle",at a time when India is celebrating his 150th birthanniversary year, Spence said that trusteeship used to be partof the concept of public service.

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"However, these days most politicians, with someexceptions, don't think of themselves as trustees so doesn'tleaders in business," he said.

Gandhi had introduced the trusteeship principle forrich people, asking them to be trustees of their wealth anduse it for the upliftment of the poor.

"Every day we use the concept of trusteeship infinance. Trustees are people or organisations that manage andoversee the management of assets for the benefit of aspecified individual or a group of people," Spence said.

Embedded in this concept is expertise which takes someskill to do this properly, and not everyone can be expected tohave the skills, he said.

"By and large this trusteeship system has workedpretty well when applied. But, its application has beennarrower than it should be, and certainly...than Gandhienvisioned in a more expansive social version of it,"the US-based economist said.

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"Recently, there was a huge financial crisis but not asingle major institution moved in the direction of acceptingsome part of the collective responsibility for the crisis orfor preserving the stability and integrity of the system," hesaid referring to the recent financial meltdown in the West.

Moreover, things like the recent rise of emergingeconomies and digital technology have made me more hopefulwhen income disparity is rising, Spence said.

"Emerging economies have distributed wealth betweencountries, and even domestically the wealth is beingdistributed among the have-nots," he added. PD APNSK NSK
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