.

School of International Studies

ANALYSIS ON THE CONSEQUENCES OF THE FOURTH INDUSTRIAL

REVOLUTION.

Caracas, July 2018

INTRODUCTION
 At the end of the XVII century the steam engine radically changes the
world as we know it today, now the key is the robots and the digital world. It is
thus, as the Fourth Industrial or Industrial Revolution 4.0, the introduction of
digital technologies to factories by sensors and information systems.

"We are on the verge of a technological revolution that will change the
way we live, work and relate, in its scale, scope and complexity, the therapy
will be different," says Klaus Schwab (2016).

In this investigation the consequences of the consequences of a 4.0

revolution were raised, the positive or negative factors for the world economy
and as a beneficiary to the internationalists.

This is how in the present work a series of objectives were proposed

with which it is intended to determine the consequences and the positive and
negative impact of the Fourth Industrial Revolution and those who are on the
list of the beneficiaries of this phenomenon.

The work is structured as follows:

1) Explain that it is the Fourth Industrial Revolution.

2) Develop what impact the Fourth Industrial Revolution will have on
world geopolitics.
3) Show what impact the Fourth Industrial Revolution in Latin America
will have.
4) Indicate what impact the Fourth Industrial Revolution will have on
the internationalists.

However, Klaus Schwab writer of the book "The Fourth Industrial

Revolution" (2016), considers, first, that the three industrial revolutions that
have occurred to date have had an impact on two factors, although in
different proportions: all have contributed to a greater automation and greater
connectivity.
 Occurred in 1784 with the use of water to generate steam at the
service of the mechanization of production; it happened again in 1870, when
electricity was applied to mass production; it was repeated in 1969 with the
advent of electronics and information technologies; and it happens again
today, thanks to technological advances that allow unprecedented levels of
automation, and the almost universal adoption of smart mobile devices, which
favors an interconnection unimaginable just a few years ago.

It can be affirmed then, that the Fourth Revolution follows the path of
the third, but it is not a mere sequel, because the giant step taken by
technology since the 1970s, and especially since the year 2000, has
exponentially expanded its scope, to the point of diluting the boundaries in the
physical, the digital and the biological. So, the Fourth Industrial Revolution not
only affects the way we work, but also how we live, how we relate to each
other, the functioning of governments and companies, and so on.

"In its scale, scope and complexity, this transformation will be different
from all that humanity has experienced so far" Klaus Schaw

The Fourth Industrial Revolution

 The word "Industry" is often used as a synonym for a factory or to give
meaning to an entire subsector of activity (for example, when talking about
the textile industry or automobile industry). But, in a linguistic way, the word
industry comes from further away, it represents "ingenious skill to execute
something" and the admirable industry of bees or the magnificent industry of
a blacksmith or craftsman has been discussed for centuries. So, in this
environment, revolution will mean a drastic change in the organization of the
means of production.

With respect to the aforementioned Fourth Industrial Revolution or

Industry 4.0, it belongs to a new way of structuring the means of production.
The main objective is to emphasize and accentuate the idea of a growing and
correct digitalization and mutual coordination in all productive units of the
economy.

The Fourth Industrial Revolution is marked by the concentration of

digital, physical and biological technologies, which promise to change the
world as we know it. So, the new powers of change will come from the hand
of genetic engineering and neurotechnology, two areas that seem very distant
for a normal citizen.

The important, like out the theorists of the idea stand out, is that it is
not only about developments but about the meeting of these. Evenly, it
represents a transformation of the paradigm, instead of one more step in the
frantic technological career. It is also based on cyberphysical systems, which
combine physical infrastructure with software, sensors, nanotechnology,
digital communications technology.

The fourth industrial revolution, is not defined by a set of emerging

technologies in themselves, but by the transition to new systems that are built
on the infrastructure of the digital revolution (previous). (Schwab, 2016).
 In addition, there are three reasons why current changes or
transformations are not an extension of the third industrial revolution, but the
arrival of a different revolution with speed, scope and impact on systems.
According to Schwab (2016), the speed of current advances is
unprecedented in history and is interfering with almost every industry in every
country.

In another order of things, the fourth revolution follows the other three
transforming historical phases: first, the shift from manual to mechanized
production (1760 - 1830), the second, around 1850, which brought electricity
and allowed mass manufacturing and finally the third, in the middle of the
20th century with the arrival of electronics and information technology and
telecommunications.

Subsequently, the fourth phase brings with it a penchant for the total
automation of manufacturing, this automation is carried out by cybernetic
systems, being possible through the internet of things or the cloud, being able
to cooperate with each other and with humans.

Thus, the basic principle is that companies can create intelligent

networks that can control themselves, along the entire value chain. Then, the
most enthusiastic academics have in mind when they talk about Fourth
Revolution or revolution 4.0: nanotechnologies, neurotechnologies, robots,
artificial intelligence, biotechnology, energy storage systems, drones and 3D
printers will be the protagonists.

In addition, these could also be the protagonists of the most

controversial antecedent of change, since, the fourth revolution could end
with five million jobs in the 15 most industrialized countries in the world, even,
an industrial-scale version of this revolution could add US $ 14.2 billion to the
world economy in the next 15 years.

We are facing one of the most important changes in the world, in terms
of what industrialization is concerned but the objective is to determine, how
positive can be the fourth industrial revolution even when it could end millions
of jobs around the world? Who exactly are the beneficiaries?

To answer these questions, the following questions will be asked.

1) What is the Fourth Industrial Revolution?

2) What impact will the Fourth Industrial Revolution have on world

geopolitics?

3) What impact would the Fourth Industrial Revolution in Latin America have?

4) Indicate what impact the Fourth Industrial Revolution will have on the
Internationalists.

1) What is the Fourth Industrial Revolution?

 It is understood as the Fourth Industrial Revolution, as a new way of
organizing the means of production. "The Fourth Industrial Revolution
represents the convergence of our digital, physical and biological worlds. An
era of robots, artificial intelligence, autonomous cars, genetic design ...
"(Schwab, 2016).

The objective to be achieved is to put to work a large number of "smart

factories", which are capable of having greater adaptability to the needs and
production processes. Thus, the technological bases on which this industry is
supported are the following: Internet of things; Cyberphysical systems;
Culture Maker and Fabrica 4.0.

This idea of Fourth Industrial Revolution, is not yet a reality already

established and examined, but a new fact in the industrial development that
contrasts great social changes in the following years, making an intense use
of Internet and the latest technologies, with the purpose of developing
industrial plants, energy generators more efficient and respectful with the
environment, as well as with production chains that are better communicated
with each other and with the supply and demand markets.

2) What impact will the Fourth Industrial Revolution have on world

geopolitics?

This new concept of Industrial Revolution, will drive decisive changes

in our society, just as the steam engine did in the First Industrial Revolution,
chain production, in the Second and electronic systems, information
technologies and globalization in the third.
 Fourth Industrial Revolution is based on connecting all the devices and
devices involved in the production to the Internet in such a way that they are
interconnected and send all the information they generate in real time. This is
how they link capable machines to learn, big data technologies, sensors,
machine-to-machine communication and automation technologies, creating
an intelligent industry.

Thanks to this, it is possible to boost productivity, improve quality

controls, agility, efficiency, sustainability and protection of the environment,
achieving significant savings and optimizing, ultimately, each and every one
of the processes.

In addition, it is considered for many as the natural evolution of the

sector and the path for those productive companies that want to anticipate the
future and achieve a privileged position in the market.

This is added, that nowadays, knowledge management is already at

the heart of production systems. In fact, in the Fourth Industrial Revolution, all
the production systems will be completely connecting all the constituent
subsystems, all the processes, all the objects that intervene, the suppliers,
the customer networks and the distribution channels.

It is there, where the complexity will be much higher and will demand
sophisticated direct marketing offers. Also, the computer systems will be built
around and inside the machines, the storage systems and the suppliers that
know how to adhere to the new standards and connect directly with the
robotic devices. As was repeated previously, this will allow everything to be
controlled in real time.

As a result, the plants of the factories of the future will have clearly
defined these standards and will share the established interfaces.
Collaborative connectivity will be the key to success. The use of these
technologies will make it possible to replace in a flexible way the machines
that are repaired or better benefits along the value chain. Adaptation to
market changes and productivity will be the big beneficiaries.

Likewise, the Fourth Industrial Revolution represents the end-to-end

integration of the value chain, which ranges from changes in the demands of
the general public to the satisfaction of smart factories.

Therefore, it will no longer make sense to talk about simple factories.

The factories will be smart (Smart Factories) or they will not be. In the same
way that a first-generation mobile phone is not valid today, the day will come
when a factory that has not adapted to the fourth generation will not have
sustainability.

That is why, the implications in the training of technicians and

entrepreneurs that the Fourth Industrial Revolution will need are sufficiently
clear and rationally deductible. Governments and universities should not
remain passive and should plan the necessary changes in the curricula. This
is how they began affecting computer scientists, engineers, designers and
business managers, but they ended up affecting all university degrees and, of
course, all professional training.

In this way, the Fourth Industrial Revolution is not a simple

technological change, it is a change of philosophy and economic structure
that makes it difficult to predict to what extent the lives of millions of people
will change. This is how the growing digitization and collaborative
coordination between all the productive units of the economy is the final goal
to be achieved.

3) What impact would the Fourth Industrial Revolution in Latin

America have?
 In a special session on artificial intelligence at the first meeting of the
Forum of the Countries of Latin America and the Caribbean on Sustainable
Development, held in Mexico City, many important points were discussed
about the development of the Fourth Industrial Revolution in Latin America.

First, they thought that to get on the train of the Fourth Industrial
Revolution and avoid being swept away by a technological tsunami, the Latin
American countries should first understand what this global process is about,
identify the sectors that can be nourished by new technologies and evaluate
the possible benefits and costs of their use.

"In 2020, to give an example, there will be 50,000 million connections

of people, data and objects only on the Internet. However, in the public
administration of our countries we do not have the tools and capacities to
digest, understand, analyze and internalize this disruptive volume of social
and economic data "said Margarita Cedeño, Vice President of the Dominican
Republic.

In addition, José Ramón López, Professor, Founder and Coordinator of

the Center for Mexican Studies at the University of Oxford, claimed the
innovative capacity of the State, calling for a radical transformation of
education and strengthening of universities.

Also, Sergio Alcocer Martínez de Castro, President of Mexico

Exponential, a center of strategic thinking, pointed out that some of the most
outstanding technologies, such as artificial intelligence, the internet of things,
augmented reality, robotics, the blockchain ( chain of blocks), virtual reality,
drones and printing in three dimensions, can contribute to achieving the
Sustainable Development Goals (SDG). "We have to follow them, work on
them and see how we implement them in each of the countries of the region,"
he said.
 To conclude, at the close of the session, the Executive Secretary,
Alicia Barcena, pointed out that ECLAC (Economic Commission for Latin
America and the Caribbean) is intensely focused on the study of new
technologies in Latin America and the Caribbean, a work that put available to
the countries of the region to identify new needs and priorities.

It should be added that Barcena invited attendees to participate on

August 8 and 9, in Chile, in the preparatory meeting for the Sixth Ministerial
Conference on the Information Society of Latin America and the Caribbean,
scheduled for 2018 In colombia. In this meeting the issues addressed in this
special session will be discussed again.

It could be said to conclude that the Fourth Industrial Revolution will

have a very high impact on the Latin American economy, based on the best
use of resources, the reduction of costs and the implementation of new
electronic models in companies.

4) Indicate what impact the Fourth Industrial Revolution will have

on the Internationalists.

To start, the human being is currently living a technological age, where

the internet plays a leading role in our personal interactions, government
systems and commercial industries. So, the internet is the basis of the
development of this Industrial Revolution. In addition, the complexity of the
Fourth Industrial Revolution will create a total transformation in the social,
political and economic structure of nations.

Likewise, many define the Fourth Industrial Revolution as the

construction of new technological systems built on the infrastructure of the
digital revolution. The implementation of these digital, physical and biological
technologies will affect the employment market and industries throughout the
world.

According to various investigations, what we will see in the Fourth

Industrial Revolution will be an increase in smart factories. However,
industrial automation will affect traditional professions globally. It is estimated
that around 5 million jobs will be replaced by robots and artificial intelligence.

Despite the decline of traditional occupations, the Fourth Industrial

Revolution led to the emergence of new jobs around the total automation of
industrial manufacturing. Well, these places are developed in aspects that
high technology can not exercise as they are creativity and leadership.

Now, there are some solutions to facilitate the process of integration

into the cybernetic systems of the fourth industrial revolution. First, to be
disruptive, since the fourth industrial revolution is based on a market
transformation. You must be prepared for the drastic changes that may arise
when implementing new high-tech systems.

Second, use algorithms, since they are fundamental in the emerging

market of the fourth industrial revolution. Thus, by studying the patterns of
customer behavior, you will achieve a clear vision of how to start or improve a
company.

Third, invest in optimizing technology, because, as the human being

progresses, technology advances along with us, so in the fourth industrial
revolution it is important to update the information systems that are available.

Finally, be innovative. Since, business innovation leads to commercial

success. And, the inclusion of high technology in emerging markets will
increase revenues as a company, and stand out from the rest.
Next, there are skills that are also necessary and essential to apply to the
jobs of the future. These are the following:

First, the resolution of complex problems. Since, the problems are

not obstacles, but opportunities. In addition, there will always be a problem,
be it simple or complex. It is inevitable and the solution lies in the
management of the problem. In the jobs of the fourth industrial revolution, it is
essential to possess this skill.

Second, possess critical thinking. There are two key factors in critical
thinking: logic and reason, these must be used correctly, since it is a key
factor to distinguish them from others.

Third, creativity. Namely, technology is a brush and ideas are

painting. So, you have to dare to paint and create a masterpiece.

Fourth, the handling of people. That is, no matter how automated a

company is, you have to recognize that this company is nothing without its
employees.

Fifth, coordination with others. In other words, they say that the
Roman Empire was not built in a day and much less was built alone. So,
cooperation reflects a crucial communication skill. It is necessary to know how
to work with others efficiently.

Sixth, possess emotional intelligence. Having skills such as

persuasion and leadership are aspects that robots can not master. So, you
have to use that ability, since many will be looking for the social skills that
technology does not have.

Seventh, judge and make decisions. The best decision when

working in an automated company is known as "studying". That is to say, to
make decisions, it is imperative to have a broad knowledge of what is being
done and only there will be able to judge and make efficient decisions.

Eighth, service orientation. The orientation of specifically

technological services will be more important than ever. Since, many
entrepreneurs seek talents that meet a diversity of varied knowledge, where
you can guide others in the process.

Next, negotiation skills. Since this is a skill that will never go out of
style. The ability to negotiate with colleagues, clients or bosses will be vital
within the looming automation era.

Finally, possess cognitive flexibility. That is, reasoning is essential

for an individual's productivity. The more agility one possesses when
changing from one concept to another, the greater level of cognitive flexibility
will be had.

In another order things, it is necessary to explain what are the

functions of an Internationalist to understand why the explanation of these
suggestions and skills that must be possessed to thrive in the fourth industrial
revolution.

First of all, when we enter the university we are excited by the idea
of knowing that the profession goes much further, but on the other hand, we
begin to realize that few know it and less a labor market that wants a
specialized offer.

This being so, what does an internationalist know how to do? There
are certain functions in which you must be trained; how to articulate
knowledge, manage discipline in its diverse areas such as politics,
economics, legal, social, cultural, environmental and strategic.
 In addition, another of the capabilities of an Internationalist, is to
provide advice within the institutions for the implementation, improvement,
development and implementation of the programs that have to be applied
under their care.

Added to this, the nature of their work requires the application of

principles and techniques learned during the race to attend and solve
properly problems and situations of great difficulty, typical of the area of their
competence, either as a direct responsible for programs or as a collaborator
of higher level professionals.

Another important point to take into account, are the skills that an
internationalist must have, such as discretion, coordination, the management
of people and especially the ability to negotiate.

To conclude, it is for these reasons and many others that the Fourth
Industrial Revolution will have a positive impact on the Internationalist, if he
knows how to exploit the resources apprehended and studied during his
career.
 CONCLUSION

He proposed to expose in the following essay, the consequences of

the fourth industrial revolution, in addition to the impact that could have on
global geopolitics, in Latin America and for internationalists.

"We are on the verge of a technological revolution that will

fundamentally change the way we live, work and relate, in its scale, scope
and complexity, the transformation will be different from anything that the
human race has experienced before," says Klaus Schwab ( 2016).

For the objectives stated and explained throughout the investigation, it

can be concluded that this is a phenomenon that will impact and is impacting
positively in the countries with the greatest technological scope.

In addition, to open roads to future generations where in each field of

research and learning, their maximum potential is exploited.
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