Martin Kocher states that automation can broaden the focus on creativity and interaction; finds training and regulation necessary
Martin Kocher, 50 years old, minister of Labor and Economy of Austria, said that the growth in the use of artificial intelligence can improve job satisfaction, with an appreciation of creativity and interaction.
The statement was made in an interview on Monday (April 15, 2024) after meeting in Brasília with minister Carlos Lupi (Social Security) and vice-president and minister Geraldo Alckmin (Development, Industry, Commerce and Services).
Watch the full interview (17min26s):
Kocher stated that there is fear among workers about the possible changes caused by the increasing use of artificial intelligence. “The discussion we are having at the moment is generally filled with fear”, said he, who has a doctorate in economics from the University of Innsbruck.
He assesses that regulation is necessary to reduce negative effects, such as unemployment, without impeding technological advancement. He said that public policies should focus on training so that workers can perform in new roles.
Kocher participated in Brasília in the resumption of a Brazil-Austria cooperation committee that had been inactive since 1987. There are plans for a visit by representatives of the Brazilian government to Austria in 2025.
The minister is part of the government led by the Osterreichische Volkspartei (People's Party, in Portuguese), with a conservative liberal line.
He said it is “very good to know” from the admiration of conservative liberals in Brazil for Austrian economists such as Friedrich Hayek (1899-1992) and Ludwig von Mises (1881-1973).
But Kocher has reservations about using the ideas of these liberal economists today. He stated that, unlike what predominates in their analysis, today it is necessary to emphasize the complementarity of the actions of governments and companies. “The balance between public and private investment must be present”, he stated.
Below are excerpts from the interview:
Poder360: What are the main challenges in the economy and work today?
Martin Kocher: There is a certain fragmentation of world trade. This makes it difficult, especially for a relatively small country like Austria, to be successful in exports. Energy prices make it more difficult to remain competitive. There are changes in the world order, conflicts that make it more difficult to work together. Particularly in Europe we also see a shortage of work because of the aging population. It is a challenge for the political sphere to ensure that we have all the conditions to respond correctly to all of this. It is not easy because many of these challenges presented themselves after the first month of the pandemic. This is the case with supply problems in production chains. Globally, people are still trying to find the right answers to all of this.
To what extent are these challenges similar for Brazil and Austria, countries that are so different?
There are many similarities: the fragmentation of world trade, energy prices, energy supply. I think the whole world is more or less in the same boat. It is clear that there are differences between countries in terms of sector priorities. But there is also a lot in common, such as the need to specialize workers as much as possible, ensuring that education, updating and training for changing levels are at the best possible level. Technology is changing very quickly. Everyone is looking for the best way to educate people to keep them in the job market and ensure that they are able to participate in technological development, whether in offices or in production.
What will be the impact of artificial intelligence?
We have seen many predictions in recent decades for technological development that have been wrong. Artificial intelligence will change the way we work, the skills we need, the speed of work. It will also offer enormous opportunities to improve the work environment, to focus on what humans are much better than process automation. That is: creativity, emotional intelligence, teamwork. All of these things will become more important. The discussion we are having at the moment is generally filled with fear. Some day-to-day tasks will be done by automated processes. On the other hand, this will free up time for those tasks that we normally enjoy more and that also normally provide a higher income. The difficult thing is to ensure that everyone can follow this transition so that many jobs are not eliminated and that the vacancies that arise can be filled by people who lost their jobs because of artificial intelligence. I think this goes beyond the work environment. Artificial intelligence provides unique opportunities. But we need to ensure that there are regulations in place to protect people, to ensure that technology is used in the best interests of humanity. The European Union passed a law on artificial intelligence that attempts to regulate the topic in order to ensure that this is complied with. On the other hand, technological advancement should not be hindered.
What will be the result of your visit to Brazil?
I hope that Brazil's relations with Austria, which have lasted almost 200 years, can be deepened, especially with regard to economic ties and the exchange of people. There are many institutions that can be strengthened, but we have to revive them. The foundations on which we can build this are very good. There are around 150 companies in Austria with offices in Brazil, many of them produce in Brazil. There are huge opportunities to expand this. There are also many Brazilian companies operating in Austria. We want to ensure that we have an exchange of ideas about technology, about qualifications for work. We signed a memorandum of understanding to deepen relations and a letter of intent to work more closely to train the workforce.
Many Brazilian economists have great admiration for liberal Austrian economists, including Friedrich Hayek and Ludwig von Mises. There is even Mises Brazil Institute. What is your assessment of this?
Austria has many famous economists from that period, they provided very thought-provoking ideas. It's great to know that they are known in Brazil, far from home. Today we know that many of their ideas were right, some were not. Many of these economists had a very strong philosophical approach to solving economic problems. Economics has become a much more empirical field. I, who was an economist before entering politics, try to base the decisions I make as a politician on empirical effects, on evidence. Ideas that lean too much to one side don't survive. It is necessary to take into account the imbrications of reality.
They are part of an intense debate in Brazil and other countries about how much the State should promote development and how much should be done by workers and entrepreneurs. Is it possible to analyze how this could evolve?
We know that a strong private sector is very important for prosperity because property rights have much to contribute to solving economic problems. On the other hand, something that we have also known for a long time, but now some more recent results from renowned economists have reaffirmed, is that there must be a public sector that invests strategically. The balance between public and private investment must be present. Infrastructure is a very important aspect. Some types of infrastructure can be built by the private sector, but some cannot. So there is a role for public investment and a very strong role for good policy. I tend to think of it in terms of complementarity. The North American economist, Daron Acemoglu, who wrote the book “The Narrow Corridor”, shows that there must be a balance between private investment, private initiative, strong institutions that guarantee property, but also private investment. This must always go hand in hand, in a democratic society, making sure there is no corruption. Corruption is the biggest factor of underdevelopment. The picture that exists today in the empirically modern economy is much more diverse. This makes finding the right policies more difficult. But I think it's worth working on.
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