Fourth Industrial revolution, Advantages &Perils


Our future according to Yuval Noah Harari, a lecturer at the Hebrew University in Jerusalem, in his new book “Homo Deus” says ” more of us will be pushed out of employment by intelligent robots and on to the economic scrap heap”. Yes, we are on the cusp of imminent change with the advent of fourth industrial revolution catching momentum in the most advanced economies. Preceding to this we as human beings had traversed three successive revolutions each one was better than the later, because of our quest to better our lives by increasing the production commensurates with the ever increase in demand. The First industrial revolution took place between 18th and 19th century which marked the beginning of agrarian society becoming industrial and Urban along with invention of steam engine, The second industrial revolution between (1870 and 1940) characterised by steel, oil, electricity & internal combustion engine had helped in mass production and followed by Third industrial revolution started in 1980’s which was significant in many ways using the power of technology, internet and achievements in the sphere of  information technology space.

Fourth Industrial revolution

In the fourth industrial revolution is going to surpass everything that we could ever think of. It represents a fundamental change in the way we live, works and relates to one another. The beginning of new chapter enabled by extraordinary advances in technology. These advances merge the capabilities of the physical, digital and biological world. The immense potential throws out the huge promise and its potential peril. Perhaps in future, we can look beyond it as not just technology per se but an opportunity to improve the conditions of everyone with an inclusive approach.

Disruption to jobs and Skills.

The disruptions to existing models will create a huge impact on jobs ie means opportunity for new kind of jobs as well as the displacement of existing jobs. It could create a positive impact on gender parity, use of AI and Robotics and also has the potential to make the mobility more robust.

Innovation and productivity

The traditional models failed in measuring the capabilities hence cannot be actually measured. At present more than two billion remains disconnected from the global economy, But once the Fourth Industrial starts running in its full steam these disparities and gaps could be narrowed by increasing the productivity in an equitable manner.

Inequality

As per the Global Wealth Report published by Swiss bank Credit Suisse in 2015, Richest 1% of the global population controls half of all of the assets in the world. while the bottom half of the population held less than 1% of all wealth. Even those regions in the world were economic growth picked up has seen increased stress and inequality. So it remains to be seen how far fourth industrial revolution could usher rapid change in the society.

Agile Governance

The power of fourth Industrial revolution can be harnessed by governance for delivering better governance which is more accessible and helps in increasing transparency and trust. On the flipside, it can also threaten the social contract between the government and citizens.

Security and conflict

The Fourth Industrial Revolution can affect the scale and nature of conflicts. Meanwhile, new technologies are making the battlefield increasingly local and as well as global. Terrorist groups use the social media to recruit fighters to fight against the state. The combination of traditional battlefield techniques with technology is making modern conflicts more hybrid in nature. So future wars can disrupt the communication systems and narrow the line between war and peace.

Business disruption

Future disruptions in the existing business models will be a shift towards new kind of relationship between customer and business models. The new kind relationship is going to be nothing but all time connected model leveraging the power of mobile communications.WhatsApp mobile messaging service reported that its users were sending 42 billion messages every day. The Alibaba Chinese internet commerce giant Alibaba completed $14 billion online transactions on a single day through Mobile device.

Fusing Technologies

The Fourth Industrial Revolution marks the beginning of the fusion of technologies and growing harmonisation of different disciplines, The technologies like Virtual Augmented reality, 3d Printing, sensors, Biotechnology, Blockchain, Artificial Intelligence and robotics etc.

Ethics and Identity

Fouth industrial revolution triggered new changes in disciplines like biotechnology and AI, also redefining the limits of lifespan, health, cognition and other capabilities which were once considered as a fiction. In 2010 University of Michigan Institute for Social Research identified that nearly 40% decline in empathy among college students compared with their counterparts 20 or 30 years before.

 

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Democratic globalisation is the need of the hour.


In the world of  post globalisation , free flow of  goods ,labour and capital is been  made easy than ever before with fewer restrictions in place across the boundaries. But the question largely re…

Source: Democratic globalisation is the need of the hour.

Democratic globalisation is the need of the hour.


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In the world of  post globalisation , free flow of  goods ,labour and capital is been  made easy than ever before with fewer restrictions in place across the boundaries. But the question largely remains how far the world community  at large has benefited out of the phenomenon called globalisation is something which is  widely debated one often  many of expert economist are taking sides for pro-globalization and some against globalisation . Does the world  increasingly becoming unequal or  has the globalisation is  been able to solve the major problems faced by the poor and alienated class . But one thing is for sure yes globalization didn’t  provide  any  respite to the large problems of poverty and job creation but overall situation is not that favorable to consider that the perils of this opening up of markets across the border allow the rich and powerful nations to get access the natural resources and labor at cheaper rate than ever before , so naturally the corollary to fall out of the globalization largely favors the rich and elite class from developing nations to reap most of the benefit.

The recent exit of Britain  from European union is direct fallout of globalization where the native  aged people from Britain voted  in favor of exit from the European union , even the working middle class populations  from  developed  economies once enjoyed the benefits of globalization  has started feeling the heat of the gradual slow down of their economies , fall in their wages , subsequent failure to create new jobs which really created a sense of insecurity among the minds of the those who felt that they are losing out opportunities  to the migrants from other countries . So the insecurity led the people to vote in favour of Brexit . So even the nations who has largely benefited out  of the globalised environment  is now facing serious problems internally as well.

Economy of 1% :

As per the latest report from Oxfam 2016 states that  big winners of the global economy are rich,They influence the policies and resources in huge away which is actually meant to benefit the common people, they take away resources which are meant to be shared among others , they park their huge wealth outside the control of their government , involve in ways and means to evade tax on their wealth . As per the figures from Oxfam  $7.6 trillion of individual wealth which is more than the combined GDP of UK and Germany. The highly skewed wealth concentration is through inorganic ways by flouting rules by using the loopholes available like tax heavens , So the world economy  turns out to be  an economy of 1%.

Existing inequality breeds more  inequality:

As per the IMF which recently found that existing inequalities  compound further disparity among the genders  which is  in terms of education, healthcare, labour market participation and lesser representation in parliament . so a majority of people who are poor are marginalised with lesser representation in policy making , their problems and concerns are inadequately addressed . The elite and richer nations are designing policies which favour them more. So this trend would throw out larger issues of unrest, exploitation and above all free market economic policies are largely doles out favours to  the rich  to make them more richer .

Oxfam has calculated that:

  • In 2015, just 62 individuals had the same wealth as 3.6 billion people – the bottom half of humanity. This figure is down from 388 individuals as recently as 2010. •

The wealth of the richest 62 people has risen by 45% in the five years since 2010 – that’s an increase of more than half a trillion dollars ($542bn), to $1.76 trillion.

  • Meanwhile, the wealth of the bottom half fell by just over a trillion dollars in the same period – a drop of 38%.
  • Since the turn of the century, the poorest half of the world’s population has received just 1% of the total increase in global wealth, while half of that increase has gone to the top 1%.
  • The average annual income of the poorest 10% of people in the world has risen by less than $3 each year in almost a quarter of a century. Their daily income has risen by less than a single cent every year.

We need democratic Globalisation

According to Joseph Stiglitz  famous economist who  spoke and written about growing inequality vouches for democratic globalisation which can solve almost all problems faced by the world community , He clearly outlines the need for  more openness , transparent policies with democratic  values which  can make the globalisation workable for a larger  population. So in the economist point of  view people are looking for greater participation in policy making , rather than being limited them to the fringes  with out participation, There is an urge from the majority to participate in the growth benefits, But it is only possible if the world seriously look in to this aspect of allowing everyone to participate in the economic activity.

Source:https://www.oxfam.org/sites/www.oxfam.org/files/file_attachments/bp210-economy-one-percent-tax-havens-180116-en_0.pdf