young in what has been a traditionally hierarchical society, and wider opportunities for women (still a significantly smaller part of the labor force in Japan than in any other industrialized country). Show Western Europe, on the other hand, appears less oriented toward the future. On the whole, the economies of Western European countries are less concentrated on advanced sectors and are more balanced in their strengths. High-tech sectors are not the most aggressive elements in their economies, even though some of these sectors constitute areas of strength—nuclear energy, aerospace, and robotics. Overall, Europe is too weak in certain critical areas of microelectronics and information technology—for example, in basic electronic components, very-large-scale integration technology, and supercomputers. The most negative aspects of the situation in Europe are a lack of cohesion in many emergent sectors, inadequate infrastructures, and a dispersed and fragmented market. Europe’s cultural heritage, its deep-rooted traditions in the arts and craftsmanship, and the availability of welfare provisions—care and assistance for the individual citizen, typical of the “welfare state”—are equally distinctive characteristics. They give European nations an edge over the United States and Japan in applying new technologies to traditional industrial and services sectors and in creating diversified, personalized products in response to market needs. Productivity of labor has risen in Europe, although to the detriment of full employment, and so has product and process flexibility. Europe’s reputation for quality products is being maintained increasingly through the adoption and adaptation of new technologies in their production. Globalization is moving faster than the long-heralded political and economic unification of Europe. Global competition came about suddenly, and it caught Europe off guard. These two unifying processes—on the one hand, the European Economic Community (EEC) and, on the other, the global economy—are now developing side by side; in some areas they are competing. Where the European firm is an acknowledged leader in an advanced sector, these processes run in tandem; where the reverse is true, European considerations tend to take second place. Many European firms are seriously at risk of being left behind in this competition by becoming the weak link in the triad, a link that provides ideas, labor, services, and markets but essentially leaves strategic initiatives to their U.S. and Japanese partners. Europe is a divided continent and, considering only the EEC, an uneasy mix of old, established, industrialized countries and others in which rural cultures and outlooks still prevail. Policies to pump subsidies into ailing agriculture, declining industrial sectors, and overstretched nonmarket services such as public sector health care, road and rail networks, postal services, and primary and secondary education—Europe’s first response to the economic crises of the 1970s—are proving difficult to remove. Just like rapid technological change can accelerate progress, it also risks leaving many people behind. Historically, every wave of technological progress since the Industrial Revolution has been associated with sharper inequalities between countries. Before the 1800s, there was little income disparity across countries; today the average gap in per capita income between developed and developing countries is over $40,000. What would the effect of Industry 4.0 be? Would it facilitate or hinder the industrialization of developing countries? Would it reduce or increase inequalities? What is Industry 4.0?Industry 4.0 refers to the “smart” and connected production systems that are designed to sense, predict, and interact with the physical world, so as to make decisions that support production in real-time. In manufacturing, it can increase productivity, energy efficiency, and sustainability. It increases productivity by reducing downtime and maintenance costs. Estimates suggest an increase in production line availability by 5 to 15%. It can also offer opportunities for energy saving and sustainability through optimization. For example, in a case study of a multinational in the plastics sector, Industry 4.0, using energy sensors reduced the power consumption in one of its plants by around 40%, which saved over $200,000 a year in energy. However, only a few countries develop and trade Industry 4.0 technologies. So far, the US and China lead in publications and patents. They also have the largest digital platforms, half the world’s hyperscale data centres, the highest rates of 5G adoption, 94% of all funding of AI start-ups in the past five years, and 70% of the world’s top AI researchers. High-tech manufacturing and research and development capacity are another critical element for Industry 4.0, which also increase the opportunities for firms in developed countries to get a leading advantage. For example, European firms have made a lot of investments in IoT. Together with China and the US, they account for about three-quarters of all IoT spending. How would Industry 4.0 impact inequalities?Technological change affects inequality through jobs, wages and profits. In the case of Industry 4.0, new technology mainly increases productivity. As companies become more productive, they are also more competitive and more likely to hire more higher-skilled workers in better jobs. Countries in which firms adopt Industry 4.0 could expect a higher increase in productivity and competitiveness, and wages. At the same time, Industry 4.0 also brings some specific challenges. For example, many studies predict a large share of jobs lost in the economy due to AI and automation. But they do not consider that not all tasks are automated, and, most importantly, new products, tasks, and professions are created throughout the economy. Industry 4.0 in manufacturing can bring huge gains in productivity, but most firms in developing countries are way far from using Industry 4.0. Harnessing Industry 4.0 for inclusive developmentDeveloping countries would not be able to broadly deploy Industry 4.0 if they have weak manufacturing. They need to diversify their production towards more technologically advanced sectors. The state has a crucial role in promoting potential sectors, strengthening innovation systems, building coherence between STI (science, technology and information) policies and other social and economic ones, and ensuring a participatory approach in this process. Governments should also promote affordable, high-quality access to the Internet and build digital skills in the business sector, including SMEs. They should also create the conditions required to deploy Industry 4.0 in manufacturing. These include the development of national strategies directing the coordinated deployment of Industry 4.0, the creation of a multistakeholder mechanism institutionalising a participatory approach to foster Industry 4.0, and building international cooperation to accelerate the transference of technology and know-how. To foster the adoption of Industry 4.0, governments should raise the awareness of the private sector, promote investments and facilitate financing for the deployment of Industry 4.0. Policymakers in developing countries should also be attuned to changes in trade patterns and global value chains and how they would affect their workforce. Workers who cannot be trained or retrained and lose their jobs should rely on stronger mechanisms of social protection. The critical role of international collaborationThe international community should come together to help countries harness this new technological wave. The risk is to perpetuate the gaps seen in previous technological revolutions. In this regard, five critical areas are:
The United Nations Commission on Science and Technology for Development offers member states a platform to explore ways of strengthening and better coordinating STI-focused international cooperation, in the spirit of multilateralism, to harness Industry 4.0 technologies and innovation for the benefit of all. How did industrialization affect the economy?Industrialization, along with great strides in transportation, drove the growth of U.S. cities and a rapidly expanding market economy. It also shaped the development of a large working class in U.S. society, leading eventually to labor struggles and strikes led by working men and women.
How did technology affect the industrialization?New inventions and technologies played an important role in the Industrial Revolution. They changed the way things were powered, how goods were manufactured, how people communicated, and the way goods were transported.
What is the impact of industrialization on the society economy and environment?Industrialization is the transformation of a society from agrarian to a manufacturing or industrial economy. Industrialization contributes to negative externalities such as environmental pollution. Separation of capital and labor creates a disparity in incomes between laborers and those who control capital resources.
What were the social and economic effects of industrialization?The Industrial Revolution brought about sweeping changes in economic and social organization. These changes included a wider distribution of wealth and increased international trade. Managerial hierarchies also developed to oversee the division of labor.
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