Estudiantes: Jason Saavedra, Juan Diego Rondón López.

The Fourth Industrial Revolution: what it means, how to respond

First of all, it is necessary to clarify what the fourth industrial revolution is all about.
Consequently, this revolution occurs because humans tend to have a capacity to transform
natural resources as a benefit for production and satisfaction of the world market. On the
other hand, it is called the fourth revolution, since it is a process of the previous ones, the
first of which was mechanization, which went from having hydraulic machines to steam
engines, improving hydraulic energy and the technification of the agricultural sector for
worldwide economic growth.
The second industrial revolution, on the other hand, is about electricity, which leads
to mass production, with the assembly line and electricity. Consequently, the third
revolution is about information technology, which leads to automation, information
technology and communication. Finally, the fourth revolution is about digitization, as the
internet of things is created, leading to the cloud, digital coordination, cybernetics and
robotics.
After which, it can be observed that in all of them there is a process of technification
in specific areas, which leads to a growth of both social and economic development being
the axis of this, the production of market satisfaction.
To begin with, the research shows how society is starting a technological revolution
in the areas of living, work, economy and culture, as opposed to societies. Consequently,
there are three objectives of this revolution, which are "speed, scope and impact on
systems" (Schwab, 2016).Thus, it is a problem because it is making the new industries look
for a fast way to relate this development in the industries, which leads to a "transformation
of entire systems of production, management and governance" (Schwab, 2016).
On the other hand, it can be observed how this technological development helps to
connect the majority of the world in aspects that relate to the production and satisfaction of
entertainment, creation of new methods of growth in various aspects of development of
societies, and the effective advancement of technology for global health. That is, thanks to
inventions developers, virtual assistants and software that help to translate or invest and
also achieve to have "exponential increases in computing power and by the availability of
large amounts of data, from software used to discover new drugs to algorithms used to
predict our cultural interests"(Schwab, 2016). Therefore, it also helps different fields of
workers to come together and perform a task together that leads to a common goal.
First, the remains and opportunities are described, who mainly explains the increase
"of global income levels and improve the quality of life of populations around the world"
(Schwab, 2016). Consequently, it generates a level of inequality, since by technologizing
several labors, it generates disruptions in labor, "the net displacement of workers by
machines could exacerbate the gap between returns to capital and returns to labor"
(Schwab, 2016), thus being a problematic that managed to occur in the first industrial
revolution, but also "On the other hand, it is also possible that the displacement of workers
Estudiantes: Jason Saavedra, Juan Diego Rondón López.

by technology will result, in aggregate, in a net increase in secure and rewarding jobs"
(Schwab, 2016).
To date, those who have benefited most have been consumers who can pay
and access the digital world; technology has made possible new products and
services that increase the efficiency and enjoyment of our personal lives.
Ordering a cab, booking a flight, buying a product, making a payment,
listening to music, watching a movie or playing a game can now be done
remotely (Schwab, 2016).
For this reason, in the future, technological innovation will also bring miracles on
the supply side, improving efficiency and productivity in the long term. On the other hand,
transportation and communication costs will be lower, logistics and global supply chains
will be more efficient, and trade costs will be reduced, all of which will open up new
markets and drive economic growth.
Similarly, technology is one of the main reasons for stagnant or even declining
incomes of most populations in high-income countries, this means that if there is when
there is an increase in demand for workers, who are highly skilled have to grow, but while
if there is less demand for workers with lower levels of education and skills tends to
decrease, for this reason "middle classes around the world increasingly experience a
generalized sense of dissatisfaction and injustice" (Schwab, 2016).
Now, adaptation by the whole world is mandatory in different areas, since a bad
adaptation to the technological and industrial environment that has been experienced
throughout history will generate problems in the short, medium and long term both in the
world economy and in society. In addition, the risks for humanity that these industrial
changes bring with them, are both good and bad at the same time, as mentioned by the
author in the text, where he referred to national and international security with the creation
of nuclear weapons that can damage entire countries by their power, which are countered
with technological tools capable of reducing these impacts on a large scale for the
extinction of humanity..
However, not everything has to be good in a technological evolution, the negative
impact of this revolution on people is not entirely perfect, since, for example, people
become dependent on technology, they can not be more than 1 day without their cell phone
or electronic device nearby to keep informed of what has happened in the world or simply
communicate with their close social circle. As stated by Schwab (2016) "Constant
connection can deprive us of one of life's most important commodities: time to pause,
reflect, and engage in meaningful conversation" (p.1). Years ago, people did not need to be
on social networks to be entertained or to feel happiness, they only needed to have a
familiar person nearby to be able to talk about any topic anywhere, we have sacrificed
family traditions for the evolution of the social network, we have sacrificed family
traditions for the evolution of the social network..
Neither technology nor the disruption that accompanies it is an exogenous
force over which humans have no control. We are all responsible for guiding
its evolution, in the decisions we make every day as citizens, consumers and
investors. Therefore, we must seize the opportunity and the power we have to
Estudiantes: Jason Saavedra, Juan Diego Rondón López.

shape the Fourth Industrial Revolution and steer it toward a future that
reflects our common goals and values (Schwab, 2016).
By way of conclusion, the road to the next industrial revolutions is in our hands,
humanity, with the consequences that they bring, we are responsible for making good or
bad decisions regarding technological evolution. For this reason, it is important to take into
account our history as humanity and the global impact that these revolutions are bringing to
humanity and ask ourselves what will be our future as humanity, as stated by (Schwab,
2016) "In its most pessimistic and dehumanized form, the Fourth Industrial Revolution may
indeed have the potential to "robotize" humanity and thus deprive us of our heart and soul."
Additionally, the reflection to the changes that have occurred and those that may occur
thanks to the industrial revolutions is important to make it personally and jointly so that
specific conclusions can be reached to achieve solutions for the benefit of humanity, since,
we are the ones who make the future.
References:
Schwab, K. (2016). The Fourth Industrial Revolution: what it means, how to
respond. World Economic Forum.https://www.weforum.org/agenda/2016/01/the-fourth-
industrial-revolution-what-it-means-and-how-to-respond/