Girl Economics

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Girl Economics Admin
June 12, 2024

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Closing the Gender Pay Gap

The World Economic Forum (WEF) highlighted the 2024 election year as a crucial opportunity to close the global gender gap, which is currently projected to take 134 years to bridge. While global gender inequality has slightly narrowed, it remains a significant issue, particularly in political participation. WEF’s report suggests that with over 60 national elections and a large voting population this year, women's political representation could improve, and this was shown in recent elections in Mexico and Iceland. Europe leads in gender equality, with Iceland as the most gender-equal country for the 15th year. The global gender gap stands at 68.5%, with North America and Latin America showing the highest scores.

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Shares in British microcomputer maker Raspberry Pi surged over a third on its first trading day in London, giving the UK stock market a rare boost amid a lull in flotations. The Cambridge-based company's shares rose 36% from an initial offer price of 280p, resulting in a market valuation of approximately £542 million. Raspberry Pi, which has seen over a decade of growth from selling single-board computers, listed in London for “pragmatic reasons”, according to CEO Eben Upton. The IPO raised £166 million, potentially increasing to £178.9 million if additional shares are offered. The funds will enhance supply chains and support new engineering projects. Major investors like Arm and Lansdowne Partners participated, marking a notable win for the London market as it struggles to attract high-growth tech companies.

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Alumis and Upstream Bio, two US start-ups focused on inflammatory disease treatments, have filed for IPOs, aiming to go public before the November presidential election. Alumis, valued at around $1 billion after a $259 million funding round, focuses on severe plaque psoriasis, while Upstream Bio targets severe asthma. Both plan to list on Nasdaq. Despite recent weak IPO performances, biotechs have raised $1.7 billion this year, a 64% increase. Market conditions remain cautious, but Alumis and Upstream are positioned to list quickly when opportunities arise.

Global Technology Spending will Grow 5.3% in 2024

Written by Isabelle Saunders, Girl Economics Technology Reporter

In recent months, there’s been a surge in demand for technological goods in the Asia Pacific market, forecasted global tech investment will increase 5.4% to $4.7 trillion. Forrester has suggested to companies that they should invest in technology which backs their long term growth, main focuses should be on generative AI, software and green and digital innovation

2023 was a difficult year in Europe due to the war in Ukraine, high energy prices and inflation. Investment during this year in technology grew only by 2.6% and 2024 is forecasted double the rate. This will be in software and services, especially the UK who are service export driven, along with EU rights, regulations and fair market competition which places obligations on human oversight, safety privacy and environmental well-being.

Female Economist Spotlight: Carlota Perez

When you think of technology, images of your iPhone, self-driving cars, or robot-waiters might come to mind. While these are indeed part of the current technological revolution, economists define technology more broadly as "anything that helps us produce things faster, better, or cheaper." One leading economist who studies technological paradigms is Carlota Perez.

Carlota Perez is an Honorary Professor at the Institute for Innovation and Public Purpose at UCL, contributing significantly to our understanding of long-term technological transformations. Perez is a prominent advocate of long-wave theory, which posits that the world economy undergoes long-term cycles of growth and recession, each lasting about 50 years, as a fundamental characteristic of capitalist economies. Her research examines how these technological changes intersect with broader economic, social, and political shifts.

 

How technological developments have shaped modern growth: 

Perez’s research also encompasses the historical context of growth and development, focusing on the five major technological revolutions since the late 18th century, each of which lasted approximately 50 years driving significant surges in development. These revolutions include the advent of canals and factories in the late 18th century, followed by railways, then steel and heavy engineering, then petrochemicals and automobiles, and finally, the current age of information and communication technologies that began in the 1970s in Silicon Valley.

 

The socioeconomic and political effects of technological advances: 

Perez's work delves into the risk finance needed to fund emerging, uncertain technologies. She highlights how initial investment frenzies, such as the Dotcom bubble, inevitably lead to recessions. Subsequently, she argues that during these downturns, the newly unemployed become resentful and support rising populist leaders, contributing to rises in populism, and reflecting the current political landscape.

What can governments do? 

Perez emphasises that access to reliable internet infrastructure is vital for development, stating, "Any corner of the territory can develop as long as it is connected to the internet." She argues that the most critical support developed economies can provide is ensuring widespread access to good internet infrastructure.

She has also reinterpreted the dual economy model, advocating for both outward-looking strategies to generate wealth through exports and inward-looking approaches to enhance well-being. According to Perez, global growth should be accompanied by sustainable, competitive production methods that require constantly modernising technologies. At the same time, specialised, interconnected local economies should promote differentiated development based on local products, supported by full internet access, to improve the quality of life for all people. In her model, the state acts as an "active promoter, funder, and facilitator of local initiatives," implementing differentiated policies to provide human capital, funding, and physical, and technological infrastructure, thereby binding the two models together to form a new 'dual model’.

 

To learn more about Carlota Perez and her take on how policymakers can support technological advancements and subsequently enhance overall well-being, read on: https://www.strategy-business.com/article/05410

 

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