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.

 

Advertisements

Fist Full of few dominates 50% of the world’s Wealth


Statically  if we tries to comprehend the data globally on the list of world’s richest people, it is quite easy, well-known that handful of few owns or control  the 50% of the world population ,if you happen to read the book  “The price of inequality “ written by American Economist  and a Nobel prize winner Joseph Stiglitz , In his book clearly states “1% of the world population holds 99% world’s wealth “According to Oxfam “The richest 1% is going to own more than all by 2016” .The staggering inequality throws out a huge challenge, to fight against the man-made crisis called “poverty”.We as a  global citizen are in a time where 1 out of 9 people has anything left to eat or more than  a billion people still live with 1.25$ a day.According to Oxfam research paper  increase,the  share of wealth is 4%  ie is  44% in 2009 to 48% in 2014., which is  going to be  50% in  2015. The reason for their meteoric growth in wealth is exploitation of resources both nature , human for cut throat profiteering, Evasion of tax by Corporation  ,rich ,skewed policy & economic measures favouring few , Low wages inadequate for living, non-imposition of  tax on wealth&capital.  As per the data UHNI(have wealth of  3 crore or more in  dollar terms) ,North America tops the list by 65,475 followed by Europe ,Asia pacific region  in the third position where more concentration of world’s  population  happens to be & , African  region is having least no ofUHNI only 1024.statistic_id204072_ultra-high-net-worth-individuals---distribution-by-region-2014

Wealth Distribution World- wide

               The wealth distribution is so skewed and concentrated, Billionaires, Centa millionaires, UHNWI and millionaires controls the wealth of the total population globally. So people who are living in poverty has  been left with no option, but to live on extreme poverty with no shelter, food & no money to take care of their health. As per the above, data the accumulation of wealth in this hands of this few is only going to go up year after year.

chartoftheday_3384_The_global_pyramid_of_wealth_n

Richest 80 equals the wealth of 50% of the total world population

The data is  startling to  see how the wealth accumulation trends pan out to be , 80% of the world richest people holds fortune, which is equal to the  combined wealth of 50% of the world population,which is roughly 3645 trillion. So rich keeps getting more richer as years go by, Generally the predicament of the poorest still goes bad to worst. Rich thinks of getting more richer and improve his or her fortune, but poorest of the poor struggles to get half a square meal a  day.

chartoftheday_3144_World's_80_Richest_People_Have_Same_Wealth_As_Poorest_50%_n

World’s share of  wealth, based on income group

0.7% of the world population  owns and controls 41% of the  world’s wealth which comes to above or equal to 1 million USD and 42.3% world’s wealth is controlled by 7.7%  (1 lakh to 1 million), and between 10,000-10,0000 USD is controlled by 13.7% which roughly equal to 22.9% of the world population, 3% of the population controls wealth of 68.7% of the population having less than 10,USD ie is in Indian rupees it amounts to Six  lakh rupees.

chartoftheday_2933_Wealth_distribution_n

More than half of the Extremely poor globally is in India

India and china are two most populated country where more than 50% of the world population resides, India is having 33% extremely poor which is 18% of the world population, and followed by china with 13% of the which is 19% of the world population , China as country has reduced their level of poverty , but India as a  country  has a  long way to go.

So  the time has come  to address the issue on a  global basis, by legislating new policies, renewed effort to control the poverty, increased and equitable distribution of natural resources and farmlands. Certainly efforts are  showing a reduction in poverty levels compared 10 to 20  years back, But the effectiveness of  measures adopted  are not giving an encouraging sign to look forward.

chartoftheday_2136_Countries_with_the_largest_population_of_people_in_poverty_n (1)

Sources of data: http://www.statista.com/, 

                           https://www.oxfam.org/