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Challenges and Opportunities for Public Administration in the Fourth

Industrial Revolution

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 Challenges and Opportunities
for Public Administration in the
Fourth Industrial Revolution
E Shava and C Hofisi
Department of Public Management and Administration
School of Basic Sciences
North West University

ABSTRACT
The world is at the brink of the much anticipated digital transformation orches-
trated by the Fourth Industrial Revolution. Despite the perceived benefits of
increased efficiency and effectiveness in service delivery, the fourth industrial
revolution largely presents numerous challenges to public administration in de-
veloping countries that lack enough human and material resources to execute the
ensuing huge technological advancements. Using eclectic literature sources, the
article examines the opportunities for and challenges confronting governments in
the fourth industrial revolution. The examination focuses on disruption of soci-
etal values and restructuring of economy, poor infrastructural development, lack
of skills capacity to integrate new technologies, fear of losing jobs, poverty and
inequalities threaten the success of Public Administration in the Fourth Industrial
Revolution. The article recommends governments to embrace new technologies
based on their capacity of a well-equipped workforce which caters for the future
shrinking of global economies.

Introduction
Following the World Economic Forum (WEF) survey in (2016), the technological wave
of the Fourth Industrial Revolution scares the majority of people in both developed
and developing countries as the threat of losing jobs cut deep into the livelihoods of
people (Shank 2016). The results from the survey reflected that, if the Fourth Industrial
Revolution became successful a net loss of more than 5 million jobs will be, lost

Volume 9 number 9 • December 2017 203

globally. Such an unprecedented displacement of workers seems to be a necessary
evil enveloped in the blanket of new opportunities. A report from World Economic
Forum (2016) published prior to Geneva Conference states that, the Industrial revolu-
tion which involves developments in previously disjointed fields’ inter-arlia artificial
intelligence, machine learning, robotics, nanotechnology, 3-D printing, genetics and
biotechnology. These developments pose a serious threat and disruption to business
models and labour markets in the next five years, which is a challenge for organisations
to be in possession of the needed skills to match the latest technological developments.

Schwab (2016) and Smith (2014) argue that, these disruptive changes can lead to geo-
political instability, machine learning, rising role of women, automation and mobile
ubiquity. Organisations across the globe have not yet reacted negatively to the idea
of Fourth Industrial Revolution probably because they are aware of the slow pace of
implementation of such technological advancements. Against this background there-
fore; this article seeks to answer the following research questions:

●● Will businesses thrive when the Fourth Industrial revolution take full control?
●● Is the Fourth Industrial Revolution a threat to Public Administration, human
labour and survival or it is opening new door for opportunities?
●● What is the future of Public Administration in the Fourth Industrial Revolution?

THE NEXUS BETWEEN PUBLIC ADMINISTRATION

and THE FOURTH INDUSTRIAL REVOLUTION
Developed and developing countries seem to embrace the innovative technologies
ushered in the 21st century by the Fourth Industrial Revolution. These technologies as
McKinsey (2016) observes can assist local & central governments to accelerate ser-
vice delivery in their constituents. OFE (2015) states that, new technologies brought
by the Fourth Industrial Revolution can be used to improve the management of public
finances in a transparent and accountable manner. Kemp (2016) argues that, local
government need to query its capability on how it can use the current technology to
mitigate public sector challenges. Kemp reiterates that, various, strategies need to be
devised to implement the changes emanating from the Fourth Industrial Revolution.
Whereas trends in the Fourth Industrial Revolution can facilitate change in Public
Administration, in some way they can disrupt the engagement of citizens with public
organisations which can compromise service delivery (White, Russell & Krein 2015).
However, empirical research points out to performance improvements in the public
sectors of countries which adopted early the new technologies ushered in by the
Fourth Industrial Revolution.

204 African Journal of Public Affairs

UNFOLDING CHALLENGES OF PUBLIC ADMINISTRATION
IN THE FOURTH INDUSTRIAL REVOLUTION
Emerging and developing economies are scared to embrace the much popularised
Fourth Industrial Revolution due to the high rate of perceived job losses associated
with the concept in the next five years. As alluded in the introduction, Cann (2016)
observes that, if successfully implemented the Fourth Industrial Revolution can con-
tribute to demographic changes that seek to transform labour markets in five years’
time paving way to major job losses in the industrial sector of developing and devel-
oped countries. The main challenge is that every industry and geographical region
will suffer from such huge skills and jobs displacement in the process, destabilising
the economies of countries. The business sector will not be spared as they invest
more, into skills development than hiring short term labour force. More job losses
as the World Economic Forum (2016) reports will be in administrative and white
collar categories. The report ascertains further that, about 2.1 million jobs will be
created in areas such as computer, mathematical or Architecture and Engineering.
However, Schwab (2016) cautions that, such predictions seem to be inaccurate since
the disruption tends to vary from sector to sector. Therefore; whilst anticipating the
coming of the Fourth Industrial Revolution, urgent and targeted action needs to be
undertaken by governments to establish a workforce equipped with future proof
skills to cater for the future shrinking of economies and be able to combat the high
unemployment and growing inequalities as a result of such a huge technological
advancement (Apostol 2016).

OPPORTUNITIES, CHALLENGES AND EFFECTS

OF FOURTH INDUSTRIAL REVOLUTION ON THE
FUNCTIONING OF PUBLIC ADMINISTRATION

Disruption of societal values and restructuring of economy

Coleman (2016) claims that the Fourth Industrial Revolution has serious impact on
society and business due to the digital transformation in the manufacturing sector. He
contends further that, the use of robotics and artificial intelligence, quantum com-
puter, sensors and nanotechnology reduces human labour paving way to disruption
of household income. However, Coleman suggests that, the introduction of artificial
intelligences leads to skills shortage as there will be few specialists to implement the
exponential technologies thereby creating opportunities for employment for those who
possess the relevant skills. Barra (2016) differs that technological progress is a dras-
tic and well demanding process that occurs in stages especially in the auto industry.

Volume 9 number 9 • December 2017 205

Mesnard (2016) concurs that, all revolutionary technologies that change industrial
production drastically, can put jobs at risk. Mesnard’s argument emanates from the
view that, the Fourth Industrial Revolution can narrow labor demand or impose new
requirements for education. In the United States for example, the share of employment
in the manufacturing industry declined from 25% in 1970 to close to 10%. However,
judging from the pace at which the Fourth Industrial Revolution is overtaking labour
force, robots and computers have the potential to eliminate several jobs in office and
administration which is a distress to many public workers who fall in this category.

Digitalisation and Changing of the World order

Prisecaru (2016) acknowledges that, digitalisation resulting from the Fourth Industrial
Revolution reproduces existing inequalities in the world order whereby weaker and
impoverished states still struggle to pass through the second and third industrial
revolutions. To this end, robotics and artificial intelligence-key features of the Fourth
Industrial Revolution can contribute to dehumisation of people’s socio-economic lives
in areas such as values, integrity, creativity, innovation and sensitivity, ethics and mo-
rality. Analysts warn that despite the inevitability of the technological progress, gov-
ernments should be cautious when mitigating the unintended consequences of these
technological advancements. Several conferences on the Fourth Industrial Revolution
such as Davos have not yet prioritised technological advances that spearhead socio-
economic development. Myers (2016) argues that since many countries have adopted
the 17 sustainable Development Goals to eradicate poverty, protect the planet, end
poverty and hunger among others. Chances are high that if new technologies are
adopted by countries, economic development can be witnessed though it depends on
the existing policies to support the global initiative.

EFFECTS OF THE FOURTH INDUSTRIAL REVOLUTION

ON PUBLIC ADMINISTRATION

According to Schwab (2016), the Fourth Industrial Revolution, just like previous
revolutions (First, Second & Third) has the capacity to re-engineer global employ-
ment and incomes around the world although it has several devastating effects on
business, economy, labour markets and people’s livelihoods. The article observes
several challenges which can be brought by the Fourth Industrial Revolution on pub-
lic administration which also have a direct impact on the well-being of humans, busi-
ness and local governments in general. The effects have been extensively elucidated
as follows:

206 African Journal of Public Affairs

On Humans
As the digital divide is fast encroaching, technologists and analysts predicted the dev-
astating consequences of this global transformation process. Schwab (2016) claims
that, the Fourth Industrial Revolution may affect the identity, privacy, ownership and
consumption patterns of humans. The process may be disastrous to how people should
work or enjoy leisure, cultivate skills, and meet new people or nurture relationships.
The reason is that everything in the aspect of human life will be digitised leaving no
room for physical operation by the people thereby compromising the social relations
of people which will impact negatively on social capital. Schwab endorses further that,
presently, the Fourth Industrial Revolution is already determining people’s health lead-
ing to what he called a ‘quantified’ self which degenerates into human augmentation.
The World Economic Forum (2016) points out that, the Fourth Industrial Revolution
if unchecked can diminish the functioning of public administration and some of the
quintessential human capacities inter-arlia compassion and cooperation. Notable
examples are the human interaction with smartphones, tablets, ipods etcetera. The
authors’ argument stems from the fact that, constant connection to digital technologies
can deprive human beings of the spirit of association interaction with other humans,
time to reflect, pause and engage in meaningful conversation. Notwithstanding the dis-
ruption of social interactions, the advancement of latest information technologies may
pose a serious threat to the privacy of individuals. This is due to cyber related crimes
such as hacking which is now a major threat to governments across the world (Magyar
2016). Based on these arguments, the Fourth Industrial Revolution may be fundamen-
tal in accelerating production in workplaces, however, given the possible harm new
technologies can impose on humans the debate can still be raging on whether the
Fourth Industrial Revolution is beneficial or not.

On Governments
The imminent Fourth Industrial Revolution which seeks to revolutionarise the physical,
digital and biological worlds came at a time when citizens are demanding service de-
livery from governments. Therefore the advent of new technologies enables citizens to
express their opinions through social networks (facebook, whatsapp, twitter) and other
online platforms which is fundamental in faciliting e-participation, thereby, enhancing
the social accountability of governments. Schwab (2016) argues that, the introduction
of modernised technologies enables governments to increase their technological pow-
ers whilst maintaining control over populations through pervasive surveillance systems
which control digital infrastructure. Whereas, the digital era brings rays of hope to
several governments, on one hand, the Fourth Industrial Revolution is bringing unpre-
dictable nightmares to unsuspecting governments in terms of governance and control.

Volume 9 number 9 • December 2017 207

Paunova (2016) claims that due to the Fourth Industrial Revolution, governments are
increasingly being subjected to immense pressure to restructure and re-align their ap-
proaches to public engagements and policy making matters. The authors’ argument
is premised on the notion that, the policy making function of government is slowly
but surely being relegated due to new sources of competition in redistribution and
decentralisation of power enabled by the new technologies.

Scholars assert that, for public administration to survive the disruptions likely to be
caused by the Fourth Industrial Revolution, public officials should have the capacity to
adapt to the new technologies since the administrative structures will be subjected to
efficiency and transparency mechanisms which stand global competition (Shcwab 2016;
Kobyakov 2016; Jessop 2016). Notably, some public policy making institutions in various
governments still subscribe to the Second Industrial Revolution which is an obstacle they
need to tackle to increase decision making using modern technological devices along-
side regulatory frameworks. Critics warn governments to shift from the traditional Second
Industrial Revolution strategies as the approach was developed to be more mechanistic
using a strict top down approach which has since lost its momentum. Therefore rapid
changes accelerated by the Fourth Industrial Revolution challenge legislators, to quickly
adopt and be innovative enough to embrace new technologies.

It can be argued that the survival of public administration as the Fourth Industrial
Revolution gains momentum requires modern technological governance which is
regularised by new technologies. The private sector as observed by Prisecaru (2016)
has already undertaken initiatives to welcome the inevitable entrance of new tech-
nologies which is imperative in adopting the unexpected changes which may come.
Collaborations of governments, businessmen, civic society and regulatory agencies
are vital in achieving the benefits of the Fourth Industrial Revolution. Schwab (2016)
affirms that, on governments the Fourth Industrial Revolution will have a profound ef-
fect on the national and international security, which can perpetrate conflict. Dehaze
(2016) argues that, the current innovation and technological battles which are rampant
in highly industrialised countries emanate from the promulgation of new technologies
which is a wave of the Fourth Industrial Revolution. Similarly cyber-warfare is increas-
ingly becoming common among modern states which poses a serious threat to world
peace and security. Governments around the world have to develop comprehensive
responses to these challenges posed by the revolution.

On Business and Government relations

Global senior business executives and CEOs are concur that the Fourth Industrial
Revolution can accelerate innovation and increase the velocity of production in the

208 African Journal of Public Affairs

business circles due to the highly balanced connectivity (Schwab 2016). Governments
around the world have to forge new partnerships with and create a conducive envi-
ronment for business to tap into opportunities created by the Fourth Industrial revolu-
tion. Evidence in global industries reflected that, new technologies introduced by the
Fourth Industrial Revolution have a direct impact on businesses. From the supplier
side, several industries perceive the introduction of new technologies as the duplica-
tion of existing needs which is tantamount to disrupting existing industry value chains.
Prisecaru (2016) observes that, disruptions can be initiated by innovative competi-
tors who often manipulate the global digital platforms for research and development,
sales, marketing and distribution. These competitors can easily overthrow well-estab-
lished incumbents quicker than enhancing the quality, speed or price at which the
value is delivered.

Kobyakov (2016) admits that, paradigm shifts can be witnessed on the demand side
since the need to be transparent with consumers influence new patterns of consumer
behaviour which is a product of mobile technologies and data. This growing trend
forced companies to adapt to the latest design and market related practise to enhance
the delivery of goods and services. The development of technology is a key trend
for enabling platforms that combine demand and supply. These can disrupt existing
industry structures including those which are prevalent in the demand economy. To
the general public, such technological platforms which are being spearheaded by
smartphones allow people to purchase goods, assets and, conduct transactions and
services online. Modern technologists advocate for the Fourth Industrial Revolution
because it reduces business barriers and increases efficiency in professional working
environments. Evidence in several states is showing that, new technologies are in-
creasingly dominating the business world and are apparently being used to effectively
deliver goods and services. Jessop (2016) indicates that, the introduction of online
financial platforms such as Bitcoin, cryptocurrency and Blockchain technology can
lead to transmittable global digital currency beyond the control of individual states and
reshaping of world finance. This is fundamental in reducing transaction costs between
lenders and borrowers.

Although the world seems to appreciate the introduction of new technologies, they
have their own shortcomings. Schwab (2016) identifies four weaknesses associated
with the Fourth Industrial Revolution which include inter-arlia:

●● customer expectations;
●● product enhancement;
●● collaborative innovation; and
●● on organisational reforms (Schwab 2016).

Volume 9 number 9 • December 2017 209

However, the increase in consumer satisfaction exposes new technologies as vibrant
forms of physically and technologically delivering services which add value for money
to consumers. The argument is based on the fact that, modernised technologies in-
crease the resilience and durability of assets whereas data and analytics are being
maintained. Based on the above arguments, new technologies enable senior managers
to be innovative in decision which increases the production of goods and services.

On economic policy and societal well-being

Borg (2016) a Swedish economist and politician warns that, the vast technological
changes in the digital sphere, inter-arlia connectivity, robotics and big data can have
a broad and disruptive effect on the labor market. For instance in the UK and USA,
prior to the end of the financial crisis, short-term contracts, self-employment, part-time
employment and seasonal work became rampant. Prisecaru (2016) reiterates that, as
the digital transformation engulfed the world; most jobs in the public sector will be
negatively affected by robotics and digitalisation which negatively result in revenue
tax. Moreover, labor income will be reduced in the long term disrupting pension
funds as the social costs of taxes in terms of both employment and reduced Gross
Domestic Product (GDP) will increase. The World Economic Forum (2016) claims that,
for public administration to cope with the sophisticated changes in the technological
environment, education and re-education should be appraised since income distribu-
tion is affected with low income earners as the greatest causalities. On the same note,
disparities in the pension incomes will be witnessed in the process, making it more
drastic for governments to provide adequate healthcare to elderly people in communi-
ties. Borg (2016) argues that, although countermeasures such as fiscal policy can be
implemented by governments, it can still be undermined by the erosion of taxes and
demand for higher expenditure. This will call for a drastic cut of expenditure on social
security which is a drawback to the young men, job seekers, refugees and economic
migrants. Given these scenarios, the Fourth Industrial Revolution needs to be strategi-
cally embraced in order to promote the well-being and sustainability of communities.

On the Economy and Labour Force

Jessop (2016) admits that, significant transformations in the economy and labour force
will be ushered in by the fourth industrial revolution, which require public organisations
to increase their accountability. The article observes that, the introduction of new tech-
nologies gives rise to opportunities and innovative strategies for generating wealth and
mitigating risks related to rising disparities owing to the use of artificial intelligence and
robotisation of labour. Thorsten (2013) argues that, due to robotisation of the economy,
governments need to strategically reposition their operation systems to adapt to changes

210 African Journal of Public Affairs

brought in by the high technological devices. The rationale for this argument is that, such
advanced technology has a direct impact on the labour force and economy. According
to the concept of demographic tomb which has been subject to debate over years, few
workers will remain as the population ages to sustain economic growth. Chan (2016)
laments the demographic decline which can result in low economic growth rate and
higher debt. As the Fourth Industrial Revolution improves productivity, the dilemma
especially in the public service is that, there will be a large number of workers with
little or no job to do. Therefore the Fourth Industrial Revolution, presents technological
breakthroughs in robotics and artificial intelligence which call for both public and private
sector organisations to reduce human labor. A typical example is 3D printing which is
likely to restructure manufacturing, hence the Fourth Industrial Revolution represents
major economic upheavals coupled with several social challenges ever-witnessed in the
history of mankind (Richard and Susskind 2015).

THE FOURTH INDUSTRIAL REVOLUTION

AND THE RISE OF CYBER TERRORISM
Laraque (2016) denotes that, although new technologies appear to have been em-
braced by governments globally, as agents for social and economic change, they have
paved the way to global terrorism and cyber-attacks. Eide & Karspesen (2015) argue
that cyber-terrorism has been rife due to interactions with high-technology emanating
from the Fourth Industrial Revolution. For instance, in Syria and Iraq new technologies
are being fused with traditional models of warfare, namely, infantry artillery forces
resulting in unpredictable dynamics. Organised Criminal organisations such as Boko
Haram of Nigeria emerged, operating with high intensity and help of other multina-
tional corporations such as the launching of Distributed Denial of Service (DDoS) at-
tacks. These effects of cyber-attacks as discussed in literature pose serious threats to
the functioning of public administrations as governments are incurring huge costs in
counter-terrorism security measures to ensure the safety of their citizens.

Matsubara (2016) acknowledges the possibility of cyber-crime which can threaten the
survival of public administration in the digitised era. An international cyber security
called Palo Alto Networks Day conference held in Tokyo on 7 June 2016, revealed the
possible threat of the Fourth Industrial Revolution as it affects a change in legislations,
and intelligence structures for countries. The questions, which arise are; Will poor coun-
tries, especially, in the African context be able to upgrade their national security systems
to counter-act cyber terrorism? Given the rising poverty in African states and the effects
of climatic change, Africa will still lag behind in terms of security, leaving few developed
countries as the elite circle of this global technological initiative. The World Economic

Volume 9 number 9 • December 2017 211

Forum (2016) suggests that, governments need to upgrade their cyber security systems as
a drive for complementing the Fourth Industrial Revolution. These attempts stipulate the
demerits of Fourth Industrial Revolution in the light of cyber terrorism.

THE FOURTH INDUSTRIAL REVOLUTION AND

THE FUTURE FOR PUBLIC ADMINISTRATION
Unanswered questions still remain on whether the governments across the globe are
ready to embrace the Fourth Industrial Revolution. According to Kaplan (2015) some
think tanks still ask the questions: How different is the Fourth Industrial Revolution
from the previous three? Can the Fourth Industrial Revolution contribute to economic
growth and sustainable development of countries? Based on these questions and
analyses from modern literature it is likely that, the Fourth Industrial Revolution can
be fully embraced by governments since it improves productivity and guarantees ef-
ficiency in workplaces. However, Davidow (2014) argues that due to the technological
changes as a result of the Fourth Industrial Revolution, chaos is inevitable. His reason-
ing stems from the fact that, ‘Machine intelligence is already having a major effect on
the value of work – and for major segments of the population, human value is now
being set by the cost of equivalent machine intelligence’, therefore, public administra-
tion will have to respond to this reality. Similarly, Colvin (2015) disputes that only those
people with high capacity empathy will benefit because robots cannot entirely replace
human to human interaction. Critics interrogate the nature of humanness and reason
for existence if the Fourth Industrial Revolution gains momentum.

Halal and Marien (2011), state that the perceived benefits of the Fourth Industrial
Revolution are numerous although, they depend on the effectiveness of the forthcom-
ing new technologies, which may be disruptive and can generate unexpected harm
to social and economic well-being of humans. The authors argue further that, it is
rather difficult to predict the pace of change since the artificial intelligence can have
its own shortfalls which can compromise the speed at which these technological de-
vices are expected to ignite change. Insight tapped from Kernaghan (2014) enlightens
that, the Fourth Industrial Revolution can lead to the proliferation of terrorism and
abuse by political fanatics and other criminal organisations thereby infringing on the
rights of citizens and the global intended outcome. Kaplan (2015) and Roberge (2013)
denote that, the transformation process through new technologies can be challenging
to public administration due to the inability of states especially third world countries
to adapt to changes due to insufficient human and material resources. Based on this
understanding, the world seems to be at a periphery of accepting the Fourth Industrial
Revolution or reject it since some governments are still grappling to implement such

212 African Journal of Public Affairs

vast technological changes which can result in the huge technological adoption gap
between the developed and developing countries. These notions, alone, pose a risk to
public administration as governments need to conduct skills assessment programmes
that promote huge development of technological knowhow among officials.

CONCLUSION
The changes emanating from Fourth Industrial Revolution are being received by gov-
ernments with mixed reactions as; they can contribute to reduction in employment as
laborforce is overtaken by digital machines. The article depicts the increased deprivation
of humanity when the Fourth Industrial Revolution took control of world economies.
Whereas, the improvements in production, efficiency of public organisations is well-
embraced on one hand, new technological inventions can lead to several disruptions in
operational and management structures public and private organisations. In most cases
public organisations have to incur huge expenditures in an attempt to integrate the lat-
est and most advanced technologies resulting from the Fourth Industrial Revolution. The
article deduces that, business can be disrupted, social economic statuses worsened and
the financial sector may suffer due to the introduction of new online financial platforms
such as Bitcoin. Skills development, human interactions may be negatively affected due to
the use of machines. Global terrorism, and organised crime units can emerge due to highly
advanced technology which can cause slavery of children and other vulnerable groups of
people in communities due to unscrupulous fortune promising online platforms.

This article argues that governments need to be ready to adapt to changes presented
by the Fourth Industrial Revolution. As new technological devices tend to replace hu-
man labour in the long run, the future of public administration is threatened, therefore,
governments need to conduct skills training initiatives to capacitate workers on the use
of modern technology. As the digital debate rages on, several governments, especially
in the developing world, should voice their concerns rather than simply letting devel-
oped states dictate the developmental path to them. States should be able to integrate
relevant stakeholders including private sector organisation and map the way forward
in terms of how the Fourth Industrial Revolution should be adopted and to what extent
by both public and private sectors.

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