In the past, new institutions have emerged to cushion this painful transition, limiting the recessionary hit to societies. Historically, doing so appears to have held the key to sustainable growth. If this time’s technological transition is as great as any previously, securing sustainable growth will need new institutions to manage this transition and mitigate its societal side-effects. I have speculated on one area where that next institutional wave might usefully break – universities like this one, as new centres of lifelong learning and technological diffusion. In future, institutional innovation will be every bit as important as technological innovation if that gift of growth is to keep on giving. 22  All speeches are available online at www.bankofengland.co.uk/speeches  22  References  Acemoglu, D and Restrepo, P (2017), ‘Robots and Jobs: Evidence from US Labor Markets’, NBER Working Paper, No. 23285. Acemoglu, D and Restrepo, P (2018), ‘Artificial Intelligence, Automation and Work’, NBER Working Paper, No. 24196. Acemoglu, D and Robinson, J (2012), Why Nations Fail: The Origins of Power, Prosperity and Poverty, Penguin Random House. Allen, R (2005), ‘Capital Accumulation, Technological Change, and the Distribution of Income during the British Industrial Revolution’, University of Oxford Economic Series Working Papers, No. 239. Allen, R (2009), ‘Engels’ pause: Technical change, capital accumulation, and inequality in the British industrial revolution’, Explorations in Economic History, Vol. 46, No. 4, pp. 418-435. Andrews, D, Criscuolo, C and Gal, P (2016), ‘The Global Productivity Slowdown, Technology Divergence and Public Policy: A Firm Level Perspective, Hutchins Center Working Papers.
The selection of a champion city recognises the enormous potential of cities across Malaysia, where three quarters of our population live, to be the engines of innovation. In our work at Bank Negara on a range of issues – whether it is to improve access to financing, promote financial inclusion or lift economic efficiency through migration to electronic payments – our collaboration with cities and their leaders has been the source of many solutions and breakthroughs in addressing the challenges that we face. This reflects the close and vibrant communities and networks within cities that can be drawn upon much more quickly and effectively to deliver solutions that will benefit the community. As a champion city for remittances, Kota Kinabalu will similarly be able to show the way in generating new solutions for remittances. There are many valuable lessons that we can take from our recent experience with the Greenback project in Johor Bahru. But it will be important for us to receive your ideas and your input to ensure that we are addressing the specific needs and circumstances of people and businesses in Kota Kinabalu. Kota Kinabalu has a sizeable population of foreign workers who contribute to the state of Sabah, while supporting and improving the livelihoods of their families back home.