Ravi Venkatesan argues that productivity growth requires AI-enabling infrastructure investment, in services and industry alike.
Dani Rodrik argues manufacturing cannot absorb 1.5B informal workers, pushing developing economies toward services-led growth. AI raising productivity across informal sectors could dissolve that trade-off, making foundation model access a new policy lever in emerging markets.
en English
Economics
Jun 1, 2026
Ravi Venkatesan
Lost in the debate about whether developing countries should pursue manufacturing- or services-led growth is the potential for new AI tools to make even informal workers far more productive. If governments can broaden access to such technologies, they no longer need to choose between strategies.
BENGALURU—In a recent commentary, Dani Rodrik, one of the world’s leading experts on the economics of trade and development,…
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