The international community came together to form the United Nations after the Second World War to build a shared future. Today, a similar effort has to be taken up to face the challenges associated with the Fourth Industrial Revolution. The latest revolution has the potential to boost incomes, productivity, and leisure time for the workforce while decarbonizing the economy and liberating women from unpaid care work.
The Various Phases of Globalization
In January 2019, the theme of the World Economic Forum held at Davos was ‘Globalization 4.0’ that signals the impending shift in globalized structures. The first phase of globalization was roughly between 1820 and 1914. This was the time when the steam engine was introduced followed by the Industrial Revolution.
Globalization 2.0 is believed to have lasted from the end of the second World War to 1990 as the world slowly recovered from the ravaging war and states chose to put more effort into nation-building.
The period after 1990 is dubbed by many as the era of ‘Hyper Globalization’. This phase coincided with major events such as the arrival of the internet, the fall of the Berlin Wall and the growth of economies such as India and China.
This brings us to the fourth phase of globalization; which many argue we are entering now. This phase is characterized by significant changes brought on by modern technologies such as Robotics, Artificial Intelligence, and Internet of Things (IoT) together with a fluctuating global economy, political tensions, social inequality at the international level and between citizens and political leaders.
Globalization 4.0 and how it is Impacting Businesses
Globalization 4.0 holds a lot of promise to the idea of a transformed world free of poverty and disparity. However, there are major impediments that must be overcome, fueled by the same energy that drives the progress of these digital technologies to start working towards a positive future and prevent the world from getting destabilized.
The system-wide impact, massive scope, and increasing speed of the Fourth Industrial Revolution make it potentially disastrous. While modern technologies have brought extraordinary advancements in almost every industry, it is also threatening to displace a large number of workers. Therefore, some sort of legislation should ideally be made to prepare people for this displacement.
Rising inequality rates are also threatening the progress made in terms of equal distribution of wealth. The biggest threat to businesses is the disruption caused by trade and tariff disputes and recent modifications in regulation and legislation such as Brexit. With an impending global recession likely to occur in 2020, it is critical for world leaders to work towards cooperation and the international business world must continue to work towards globalization.
3i Infotech is consistently evaluating the current business models of economic growth so that the Company is in tune with the significant change that is inevitable. A bold approach to policies, business models, alliances, and collaborations is the world needs right now.