Pros and Cons of Industry 4.0
The basic meaning of the fourth industrial revolution, better known as Industry 4.0, is that Kazakhstan is moving from physical manufacturing models to cyber-physical production.
What opportunities can the fourth industrial revolution provide? Ambassador Extraordinary and Plenipotentiary of Kazakhstan to Uzbekistan, Yerik Utembayev, has volunteered to address this question.
The first event for journalists in the embassy’s new building was devoted to the Address of President Nursultan Nazarbayev to the people of Kazakhstan. As the head of the diplomatic mission stressed, the document outlined ways of further promotion to the list of the 30 most competitive countries in the world. One of them is Germany, which by 2030 plans to completely switch over to the system of internet-based industry. In this area, the government of the country invests about 200 million euros. Similar project programs are also launched in the Netherlands, France, Britain, Italy, Belgium and other nations. In Russia, too, the ‘fourth revolution’ has already begun.
Kazakhstani experts believe that information systems are transformed from supporters into an integral part of the production process. Digital data become the same resource as raw materials, semi-finished products, materials and labor. This allows for a dramatic increase in production efficiency. However, like any other process, this one also has its pros and cons.
Experts attribute the use of new technologies and business models to pluses, especially in the basic sectors. That will provide an opportunity to increase the physical volume of exports and to compensate for losses from lower prices. In general, the use of breakthrough technologies would provide an opportunity for the emergence of new industries.
To minuses, forecasters attribute the fact that under the influence of new technologies people will lose their jobs. From this point of view, the provision of employment will mainly be in small business. In this regard, in their view, improving the business environment, reducing transaction costs through deregulation and liberalization of the economy, improving the quality of public services for business is the basis for long-term stability and sustainability of the economy and the well-being of society.