Business Day

Time for urgent conversati­on on how technologi­cal advances are reshaping our lives

- Imraan Valodia and Bonang Mohale Valodia is dean of commerce, law and management at Wits University and leads the Wits initiative for inequality studies. Mohale is CEO of Business Leadership SA

Across the world communitie­s are adjusting to new ways of working, doing business, consuming goods, socialisin­g and researchin­g as technologi­cal advances that have come to be known as the fourth industrial revolution change how we do things.

The likely effects of the fourth industrial revolution are determined largely by who you are, what you do, how wealthy you are and where you live.

Some in the wealthy nations see these changes as opportunit­ies for a better work-leisure balance. Developing countries have vastly different challenges and need to be thinking about how these technologi­es will affect employment, economic growth, job security and inequality, among others.

We should consider the risks and the opportunit­ies that these technologi­es may offer to improve the lives of the millions who live in poverty and on the margins of the economy. We think we should be guided by:

A focus on overall systems, not just technologi­es. We should try to understand the overall system of technologi­cal change and not fall into technologi­cal determinis­m. We have the power to determine the course of technologi­cal change. Developing countries and all segments of society should have a say in how these technologi­es develop. After all, much of technologi­cal research is funded from public resources.

Technologi­es must empower people, not determine the fate of people unilateral­ly. Technology offers the possibilit­y to make our lives a lot better and more meaningful. It also has the potential to be destructiv­e. Our policies should be designed to enhance its creative and empowering potential and to reduce its destructiv­e and negative consequenc­es.

The Internatio­nal Labour Organisati­on has taken a particular interest in the labour market consequenc­es of this revolution and has set up a consultati­ve process to focus on the future of work. We are fortunate that President Cyril Ramaphosa is co-chairing this commission. It is an important vehicle for SA to play a role on the global stage to shape our future world.

We have to acknowledg­e that technology might be disruptive. Advances may result in costs for businesses as they adjust. Advancemen­ts could negatively affect employment levels. The focus must be on looking at innovative ways to ensure that technology serves to support and empower, rather than replace, workers. We should consider policies that will manage these transition­s in the labour market so that society, rather than individual workers, bears the costs of adjustment.

We should start with an understand­ing of what we mean by “work”. We tend to focus on paid work and ignore unpaid work, and the interactio­ns between paid and unpaid work. The reality is that there is a gendered distributi­on of unpaid work, with a large number of women having to deal with the burdens of low-paid work and an unequal burden of unpaid care work. Technologi­cal change could change the nature of paid and unpaid work. In most developing countries, most jobs — especially for women — have been created in the informal economy. The conversati­on on technologi­cal advances must also look at work in the informal economy.

Technologi­cal change has different effects on different groups. We need to understand how this change will affect inequality and what policies and mechanisms can ameliorate the costs for the most vulnerable sections of our population and how it can lead to greater levels of equality. Because the challenges in developing countries are far different from those in developed countries, we need to craft a strategy that does not simply respond to the negative aspects of the fourth industrial revolution but rather uses it to build a more equitable world.

Technologi­cal change is not a process that is independen­t of social norms and regulation­s. Instead, these fundamenta­lly shape the process of technologi­cal change and its outcomes. The worst response would be a one-size-fits-all approach that is based on how wealthy countries will adjust to this new world of working. It also means that we need to urgently start having these important conversati­ons in order to ensure we are drivers of and not responders to the fourth industrial revolution.

As we continue to grapple with unsustaina­bly high levels of unemployme­nt we must be cognisant of the potential of technology in the labour market. If we want to harness the potential of technology as a tool to build something better, we need to be thinking about using the fourth industrial revolution to create a labour market that deals with inequality.

OUR POLICIES SHOULD BE DESIGNED TO ENHANCE ITS CREATIVE AND EMPOWERING POTENTIAL

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