How technology is reshaping the global economy

The recent pessimism surrounding the pace of innovation has begun to turn into growing optimism—although some concerns remain. This change in sentiment is largely driven by the pace of innovation spurred by the pandemic. Scientists have invented COVID-19 vaccines at breakneck speed, workers around the world have turned to digital technologies to do their jobs, and large numbers of people have adopted digital payments, among other technological advances made over the past few years.

To be sure, some entire professions may disappear as automation increases, but that could pave the way for new, better-paying, more rewarding jobs. Furthermore, unlike previous industrial revolutions, we have the hindsight, extensive research, knowledge and experience to ensure that the Fourth Industrial Revolution (4IR) is equitable and sustainable.

Digital 4IR is already the fastest period of innovation in history. Rapid advances in technologies such as artificial intelligence, robotics, the Internet of Things, nanotechnology and biotechnology are the cornerstones of this wave of innovation.

To further alleviate the concerns of the world’s workers, the private and public sectors need to work closely together on skills investments to upskill workers and use these new technological tools.

Esther Mallowah, head of technology policy at ICAEW, said: "The public and private sectors need to make sure we have the right skills to take advantage of these technologies. In terms of the economy, employment and productivity, I think there are some concerns about how technology will impact employment. ."

"The upside for employers is that technology offers a broader skill pool, as remote working reduces the constraints of geographical barriers. Even for employees, new technology provides opportunities for development and Opportunities to develop skills."

In its report "Towards a Sustainable Fourth Industrial Revolution," PwC identified 10 emerging 4IR technologies, including synthetic biology, advanced materials, robotics , 3D printing and artificial intelligence, etc., the company believes that these technologies can individually or collectively have the greatest impact on jobs, livelihoods and the environment, and are consistent with the United Nations’ 17 Sustainable Development Goals.

PwC cited some examples of emerging applications for use in different industries, such as energy. One of 4IR’s core innovation challenges is technological breakthroughs “to enable the next generation of clean distributed grids, where virtual power plants aggregate millions or even billions of emerging renewable energy resources, all optimized through artificial intelligence and machine learning , and enable peer-to-peer transactions through blockchain and the Internet of Things.”

For example, in the financial field. "Fintech, including artificial intelligence, blockchain and the Internet of Things, can increase access and decentralize financial systems to serve the unbanked and underbanked, improve market integrity and potentially provide "Early warning signs of systemic financial stress."

Robert Harwood, COO of Slingshot Simulations, said: "Digitalization continues at an astonishing pace across all industry sectors, and as organizations around the world realize its benefits - From lowering operating costs, accelerating innovation and capturing market share, delivering improved solutions to customers and more."

These developments are already happening in developed and developing economies around the world. For example, the adoption of digital payments has accelerated since the COVID-19 outbreak, and digital finance has become a force for inclusion in countries such as Singapore, Kenya and Brazil.

The Africa Digital Financial Inclusion Fund (ADFI), supported by the Bill & Melinda Gates Foundation, accelerates financial inclusion by investing in the expansion of digital financial services across Africa. By 2030, ADFI aims to provide $400 million in grants and loans to ensure that 332 million more Africans, 60% of whom are women, have access to finance.

Mallowah said new technologies also offer opportunities to improve people's quality of life because communication costs almost nothing.

She said: "Apps such as social media and instant messaging mean people can connect with family around the world for free. Social media is also moving away from a purely social focus to being used for business. Even many small businesses in Africa are are using instant messaging software to communicate with customers."

Research by the International Finance Corporation shows that Africa is currently the region with the most digital financial service arrangements in the world. Among the nearly 700 million individual users in the world, Africa accounting for nearly half, lifting millions of families out of extreme poverty and helping small businesses thrive.

Harwood said: “In some cases, developing countries can have an advantage over developed countries through leapfrog capabilities. Consider, for example, the speed with which African countries have embraced mobile phone technology and the solutions it supports. schemes because they are not burdened by the slow transition to landline technology that is so dominant in developed countries. However, these tend to remain the exception rather than the rule."

Mallowah said that over time, the Internet of Things Data in supply chains will be able to be better monitored, which could lead to the use of smart contracts, for example. It also means consumers have better access to data and can hold businesses accountable.

Technology not only changes the way we produce and connect, it also allows more people to create and test new objects and ideas, reducing the costs and risks of innovation and product development, even in developing countries.

Success in the digital age will depend on close collaboration between the public and private sectors. Governments and regulators must ensure regulation keeps pace with innovation to avoid monopolies and protect citizens. Hopefully, as we adopt more and more new technologies into our lives and enjoy the benefits they bring, concerns about the future of work will subside. We are firmly on the cusp of widespread change, making the future full of hope.

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