University of Dhaka

Department of Economics
MSS in Economics 1st SEMESTER, 12TH BATCH
ECON 514: Bangladesh Economy: Sectoral Studies

Topic: The 4th Industrial Revolution in Context of Bangladesh

SUBMITTED TO:
DR. Mahbubul Mokaddem
PROFESSOR
DEPARTMENT OF ECONOMICS

SUBMITTED BY
AI Manifesto

Name Roll Number

Adnan Hossain Anik 199
Md. Akib Hossain 192
A.A.M Azizun Nabi 189
Tanjil Tabassum 209
Israt Jahan Reshme 211
Tanvir Ahmed Emon Re-ad
Joy Matubbar 181
Nayeem Rahman Khan 210
Jannatul Romana Hashi 194
Mamun Sarder 197
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Contents

Chapter1 : Conceptualization ............................................................................................................1

1.1 Introduction..................................................................................................................................1

1.2 Terminologies .............................................................................................................................3

Chapter2 : Sector Identification .................................................................................................... 6

2.1 Industry 4.0 and The Manufacturing Sector of Bangladesh ........................................... 7

2.1.1 The Textile and RMG Industry.......................................................................................... 8

2.1.2 The Agro-Processing Industry ........................................................................................9

2.1.3 The Pharmaceutical Industry ......................................................................................... 10

2.1.4 The Leather Industry ....................................................................................................... 11

2.2 Industry 4.0 and The Service Sector of Bangladesh ..................................................... 12

2.2.1 Transport and Communication....................................................................................... 13

2.2.2 The Financial Sector ....................................................................................................... 14

2.3 Industry 4.0 and the Agricultural Sector of Bangladesh .............................................. 15

Chapter3 4IR: Bangladesh Scenario ............................................................................................17

3.1 Threshold Analysis .................................................................................................................. 18

3.2 Is Bangladesh Ready?: A Comparative Case ................................................................. 23

3.3 Classroom to the Workplace: Evaluating the 4IR Readiness of Fresh Graduates .. 24

3.3.1 Introduction...................................................................................................................... 24

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 3.3.2 Data Method ................................................................................................................... 25

3.3.3 Outcomes ......................................................................................................................... 25

3.3.4 Limitations ....................................................................................................................... 29

3.4 Policies Undertaken .............................................................................................................. 30

3.5 Impediments to Industry 4.0 in Bangladesh ..................................................................... 31

Chapter4 Consequences ............................................................................................................... 33

4.1 Positive Impact ....................................................................................................................... 35

4.2 Concerns Surrounding the Fourth Industrial Revolution .............................................. 36

Chapter5 Policy Prescriptions ........................................................................................................37

5.1 Conclusion................................................................................................................................ 38

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Chapter1 : Conceptualization

1.1 Introduction

The term "Industrial Revolution" describes the profound change in human civilization
brought about by the adoption of new production techniques, systems, and technologies.
The Industrial Revolution was a period of significant economic and social change that took
place from the late 18th century to the mid-19th century. The way we live, work, and
interact has changed as a result of the rapid industrialization and technological
advancements that have occurred during this time. The majority of goods were made by
hand, in tiny quantities, and with little to no use of machinery before the Industrial
Revolution. Mass production of products was made possible by the development of new
tools and procedures, which raised output and productivity while lowering costs. As a
result, the economy grew and new jobs and possibilities were produced. One of the most
significant examples of the Industrial Revolution was the textile industry. Before the
advent of machines, textiles were produced using manual labor, primarily in people's
homes. With the invention of the spinning jenny and power loom, which allowed for the
mass production of textiles, the industry was transformed. There have been four industrial
revolutions, and each was characterized by substantial improvements in technology and
production methods.

The first industrial revolution began in the 18th century and was characterized by the
invention of steam power, the mechanization of textile manufacturing, and the
development of iron and steel production. Due to the development of factories and mass
production as a consequence, productivity and economic growth significantly increased.

Relation among the factors of production also had changed due to this revolution. Before
the invention of steam engine, labor was whole. Artisan or worker would produce the
whole thing by himself from the beginning to the end. But as soon as steam engine powered
factories came into operations, labor stated to divide among workers. Eventually, no one
was producing a thing anymore rather they were producing a part of it.

The technical revolution, also referred to as the second industrial revolution, occurred in
the late 19th and early 20th centuries. The development of electricity, the internal
combustion engine, and the assembly line, which enabled mass production and the
emergence of new industries like the car industry, respectively, marked this period.
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In this period, we saw the rise of mass production and consumption to a new height. One
of the greatest economic crises “The Great Depression” also happened during this time.
We saw the emergence of socialism in today’s Russia. The world also witnessed two world
wars in this time period.

With the creation of the microchip and the growth of computers and the internet, the third
industrial revolution, also referred to as the digital revolution, got underway in the latter
half of the 20th century. As a result, numerous manufacturing procedures were
automated, and new sectors like software and telecommunications began to flourish.

The fourth industrial revolution is known as Industry 4.0, is the current period of
technological advancements marked by the convergence of physical, digital, and
biological systems. It is characterized by the development of advanced technologies such
as artificial intelligence, robotics, the Internet of Things (IoT), and 3D printing. These
technologies are transforming the way we work, communicate, and live by improving
efficiency, productivity, and personalization.

To sum up, the four industrial revolutions have significantly transformed human society
through the introduction of new manufacturing processes and technologies, leading to
increased productivity, economic growth, and social change. The fourth industrial
revolution is the current period of rapid technological advancement, characterized by the
conjunction of physical, digital, and biological systems.

The fusion of physical, digital, and biological systems that occurs during the 4th Industrial
Revolution (4IR) causes a complete digital transformation of all facets of civilization. Being
a developing nation, Bangladesh is experiencing rapid technological developments that
could have a significant positive impact on its society and economy. A skilled workforce,
supportive policy environment, and the need for major infrastructure development are just
a few of the difficulties that this revolution will also present.
However, Bangladesh is a big nation, and its industry is expanding. Inspite of this, it has a
lot of obstacles to overcome before adopting the 4IR. The absence of sufficient
infrastructure, such as fast internet and a steady source of electricity, is one of the biggest
problems. For the adoption of digital technologies and the development of smart
manufacturing, these are crucial.

The absence of a skilled population presents another significant issue for Bangladesh. The
country's educational system is not yet prepared to offer the 4IR-related skills, and there
is a dearth of experts in occupations like automation, artificial intelligence, and data
science.
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Despite these obstacles, Bangladesh has made some strides in implementing the 4IR. To
make society more technologically capable, the government has introduced programs like
the Digital Bangladesh Vision 2021 and the Bangladesh National Digital Infrastructure. As
a result of investments made in digital infrastructure and services by businesses like
Grameenphone and Robi Axiata, the private sector has also contributed to the country's
digital transition.

Overall, with its fast technical advancement and change, the Fourth Industrial Revolution
has the potential to drastically alter all facets of society. Bangladesh, like many emerging
nations, has a lot of obstacles to overcome before adopting the 4IR. However, the nation
has made some strides toward establishing a community that is more technologically
enabled, and there is opportunity for future expansion. In order to completely implement
the 4IR, Bangladesh will need to maintain its investment in digital infrastructure, schooling,
and labor force development.

Figure 1-1: Timeline of Industrial Revolutions

1.2 Terminologies

We shall now explore the most frequently used terminologies associated with the Fourth
Industrial Revolution. As the world undergoes a rapid digital transformation, it is essential
to understand the various technologies, systems, and concepts that are driving this
change.

Industry 4.0: Industry 4.0 and the fourth industrial revolution are heavily related but not
exactly the same concepts. Industry 4.0 refers to the specific set of technologies and
practices that enable a high level of automation and data exchange in manufacturing. The
fourth industrial revolution is a broader term that describes the overall impact of these
technologies on society, the economy, and the environment. Industry 4.0 can be seen as
a subset or a catalyst of the fourth industrial revolution. They can be used interchangeably

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when talking about the technological aspects of manufacturing, but not when considering
the wider implications for humanity.

Artificial Intelligence: Artificial intelligence (AI) refers to the ability of machines to perform
tasks that typically require human intelligence, such as perception, reasoning, learning,
and decision-making. In the context of the Fourth Industrial Revolution, AI is a key driver
of digital transformation, as it enables machines to process vast amounts of data, identify
patterns, and make predictions with high accuracy and speed.

Big Data Analytics: Big data analytics is the process of examining large and complex data
sets to uncover hidden patterns, correlations, and insights. It involves using advanced
data processing technologies, statistical algorithms, and machine learning techniques to
extract valuable information and knowledge from data. The goal is to improve decision-
making, optimize performance, and create new business opportunities.

IoT (Internet of Things): IoT (Internet of Things) refers to the interconnectivity of physical
devices, vehicles, buildings, and other objects embedded with sensors, software, and
network connectivity, allowing them to collect and exchange data. It plays a critical role
in Industry 4.0 by enabling smart manufacturing, predictive maintenance, and real-time
monitoring of operations, leading to increased efficiency, productivity, and cost savings.

IIoT (Industrial Internet of Things): IIoTT specifically refers to the use of IoT technologies
and devices in industrial settings such as manufacturing, logistics, and energy
management. The main difference between IoT and IIoT is the context and purpose of
their use, with IIoT being more focused on improving productivity, efficiency, and safety
in industrial operations, while IoT has broader applications in consumer and commercial
settings.

Blockchain Technology: Blockchain technology is a decentralized digital ledger that

records transactions in a secure and transparent manner. It enables trusted and efficient
peer-to-peer transactions without the need for intermediaries such as banks,
governments, or other third parties.

Cyber-physical systems: CPS or Cyber-Physical Systems, refers to a class of engineered

systems that integrate physical and cyber components to create a new generation of smart
and interconnected systems. CPS involves the integration of sensors, actuators,
processors, and communication technologies to monitor and control physical processes, as

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well as the development of software algorithms to analyze and optimize the performance
of these systems. CPS is a critical component of the fourth industrial revolution, enabling
the development of intelligent and autonomous systems that can operate with high
precision and efficiency.

Edge Computing: Edge computing is a vital component of the Fourth Industrial Revolution
because it enables faster data processing and reduces latency, allowing real-time
responses to critical events. By bringing computing power closer to the data source, edge
computing can improve system performance and reliability while reducing network
bandwidth requirements. This technology is particularly important in fields such as
autonomous vehicles, remote monitoring, and smart infrastructure.

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Chapter2 : Sector Identification

Industry 4.0 is a term for the fourth industrial revolution, a paradigm shift in manufacturing
following those of steam power, mass production, and computers. It refers to the
integration of digital information technology with the physical world of goods, processes,
and materials utilizing Internet-connected devices and software applications.

According to the research focus of a report published by the World Economic Forum, there
are four main sectors with great potential in Industry 4.0-Agriculture, Energy, Healthcare,
and Manufacturing.

The first step is to investigate which sectors can benefit most from investments in Industry
4.0. The expansion of real GDP per capita in a developing country like Bangladesh is
largely determined by the rate at which aggregate productivity growth occurs in an
economy. This means the potential to benefit from Industry 4.0 lies in manufacturing.
According to the World Bank, the manufacturing sector accounted for 21.24% of the GDP
in Bangladesh in 2021. This means that the manufacturing sector constituted about 63.8%
of the industry sector, which contributed 33.32% of GDP in 2021 The manufacturing sector
is one of the largest and fastest growing sectors in Bangladesh, especially in ready-made
garments.

Although, the service sector accounted for about 52.1% of the GDP in 2020, but employed
only about 37.4% of the labor force. This indicates a low level of productivity and quality
in the sector. However, some sub-sectors such as IT-enabled services, outsourcing,
telecommunication, tourism, and hospitality management, etc. have great potential to grow
and contribute more to the economy. Industry 4.0 can help the service sector improve
customer experience and satisfaction, enhance operational efficiency and productivity,
and create new business models and opportunities. By using new technologies such as IoT,
cloud computing, analytics, AI, and machine learning, service providers can offer
personalized and customized services, automate and optimize service processes, leverage
digital platforms and ecosystems, collaborate with other service providers across sectors,
and offer value-added services and solutions.

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 Figure 2-1: Share of different sectors in Bangladesh's GDP (2021)

2.1 Industry 4.0 and The Manufacturing Sector of Bangladesh

Industry 4.0 is transforming the manufacturing sector by leveraging cutting-edge

technologies such as the Internet of Things, artificial intelligence, and cloud computing to
create a smart factory that is more efficient, flexible, and sustainable. These technologies
enable real-time monitoring and analysis of manufacturing processes, allowing for better
decision-making, increased productivity, and reduced waste. Industry 4.0 is driving
innovation and changing the way manufacturers design, produce, and deliver products,
resulting in significant improvements in quality, cost-effectiveness, and customer
satisfaction. Manufacturers need to embrace Industry 4.0 to remain competitive in today's
fast-paced and rapidly evolving global market.

Bangladesh's manufacturing industry should implement Industry 4.0 to boost

effectiveness, productivity, and product quality. The industry can streamline its processes
and save operating costs by utilizing the latest technologies, such as automation, artificial
intelligence, and the Internet of Things. Adopting Industry 4.0 can also assist Bangladeshi
enterprises to maintain their competitiveness and fulfilling the shifting needs of consumers
on the international market.

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Implementing the industrial internet of things (IIoT) can help improve productivity,
efficiency, and innovation in the manufacturing sector. Bangladesh is a developing country
with a large manufacturing sector, mainly in the garment and textile industry. The country
is also trying to diversify into new markets, such as leather. To boost its export growth and
competitiveness, Bangladesh needs to improve its technology adoption and digitization in
the manufacturing sector.

We shall now discuss how Industry 4.0 can bring about changes in the key industries.

2.1.1 The Textile and RMG Industry

Bangladesh’s textile and RMG sector is one of the largest and most important industries
for the country’s economy. It can adopt and benefit from Industry 4.0 by improving its
productivity, quality, efficiency, innovation, and competitiveness in the global market.
Some of the ways that Industry 4.0 can help Bangladesh’s textile and RMG sector are:

Efficiency: Industry 4.0 technologies such as automation and the Internet of Things can
help streamline production processes, leading to improved efficiency and reduced costs.
For instance, automated machines and robots can carry out repetitive tasks with precision
and speed, while real-time monitoring of production processes can identify bottlenecks
and areas for improvement.

Quality: Advanced analytics and machine learning can analyze large amounts of data to
identify patterns and anomalies, leading to better quality control. This can help reduce
waste and improve customer satisfaction, as well as enhance the reputation of the sector.

Sustainability: The textile and RMG sector is one of the largest contributors to
environmental pollution in Bangladesh. Industry 4.0 can help address this issue by enabling
real-time monitoring of production processes, allowing manufacturers to identify and
address environmental issues such as energy consumption and waste generation. This can
lead to more sustainable practices and reduced environmental impact.

Competitiveness: By adopting Industry 4.0, manufacturers in the textile and RMG sector
can stay competitive and meet the changing demands of customers in the global market.
By using smart technologies, manufacturers can offer more customized and higher-quality

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products, leading to increased customer satisfaction and loyalty. This can help improve the
sector's competitiveness and attract more investment.

Collaboration: Industry 4.0 technologies can facilitate collaboration between different

stakeholders in the textile and RMG sector. For example, real-time data sharing can help
improve communication between manufacturers, suppliers, and customers, leading to
better coordination and faster response times. This can lead to more efficient supply chains
and improved overall performance.

2.1.2 The Agro-Processing Industry

The agro-processing industry of Bangladesh is one of the topmost thrust sectors in

Bangladesh as per the export policy of the Bangladesh Government. It employs about 40%
of the labor force and contributes 16% to the country’s GDP. The agro-processing industry
includes frozen fish, shrimp, other frozen food, tea, vegetables, tobacco, cut flower, fruits,
spices, dry food, and other processed agricultural products. The agro-processing industry
has the potential to grow further with the availability of raw materials, domestic market
demand, and export opportunities.

Industry 4.0 can benefit the agro-processing industry of Bangladesh by improving

productivity, quality, efficiency, sustainability, and competitiveness. Some of the possible
applications of Industry 4.0 in the agro-processing industry are:

Smart farming: using sensors, drones, satellite imagery, and precision agriculture
techniques to monitor crop conditions, optimize inputs, and increase yields.

Smart processing: using automation, robotics, machine learning, and blockchain to

enhance food safety, traceability, quality control, and waste reduction.

Smart marketing: using e-commerce platforms, digital marketing tools, and social media to
reach new customers, expand markets and increase brand awareness.

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2.1.3 The Pharmaceutical Industry

The pharmaceutical industry of Bangladesh is one of the most potential sectors for the
country's economy. It meets nearly 98% of the domestic demand for medicines and also
exports to several countries around the world. The industry has achieved competitiveness
by producing quality generic drugs at low cost. The industry has a market size of
approximately $3 billion and is expected to become a $6 billion industry by 2025. The
industry faces some challenges such as regulatory barriers, lack of innovation, and
dependence on imported raw materials. However, it also has opportunities such as
increasing demand for healthcare services, rising incomes, improving infrastructure, and
patent exemption under WTO rules. Here are some ways in which Industry 4.0 can benefit
the pharmaceutical industry in Bangladesh:

Better quality control: Advanced analytics and machine learning can be used to analyze
data from manufacturing processes, identifying patterns and anomalies and helping to
improve the quality of products. This can help reduce the risk of errors and product recalls,
enhancing the reputation of the industry.

Enhanced supply chain management: Industry 4.0 technologies such as the Internet of
Things (IoT) and blockchain can be used to improve supply chain visibility and traceability,
helping to ensure the safety and authenticity of products.

Improved regulatory compliance: The pharmaceutical industry is subject to strict

regulatory standards, and Industry 4.0 technologies can help ensure compliance with
these standards. For example, machine learning algorithms can be used to analyze
manufacturing data in real time, identifying issues before they become non-compliant.

Increased speed to market: By adopting Industry 4.0 technologies, pharmaceutical

companies in Bangladesh can reduce the time it takes to bring new products to market.
Advanced manufacturing techniques such as 3D printing and personalized medicine can
help to create more efficient production processes.

Improved safety and security: Industry 4.0 technologies can help ensure the safety and
security of pharmaceutical products. For example, IoT-enabled sensors can be used to
monitor storage conditions and detect potential safety hazards, while blockchain can be
used to track the movement of products throughout the supply chain.

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2.1.4 The Leather Industry

The leather industry of Bangladesh is a major industry that produces leather-based

products such as garments, shoes, belts, bags, jackets, suitcases, wallets, and some fancy
items. This industry accounts for a 3% share of the global leather market. It employs about
0.85 million people, mostly women. The industry faces some challenges such as
environmental pollution, lack of raw materials, poor infrastructure, and low-value addition.
However, it also has opportunities such as growing demand for leather products,
government support, relocation of tanneries to a modern industrial park, and
diversification of products and markets.

By embracing Industry 4.0 technologies, the leather industry in Bangladesh can improve
quality control, enhance supply chain management, improve efficiency, customize
products, increase sustainability, foster collaboration, and enhance worker safety. These
benefits can help to create a more competitive and sustainable industry that can meet the
needs of customers both in Bangladesh and around the world. Here are some ways in
which the leather industry in Bangladesh can benefit from Industry 4.0 technologies:

Improved quality control: Industry 4.0 technologies such as the Industrial Internet of
Things (IIoT) can be used to monitor the production process in real-time, providing insights
into operations and helping to identify quality issues early on.

Enhanced supply chain management: Industry 4.0 technologies such as blockchain can be
used to improve supply chain visibility and traceability, ensuring the safety and
authenticity of products and enhancing the reputation of the industry.

Improved efficiency: Automation and robotics can be used to streamline manufacturing

processes, reducing waste and improving overall efficiency. Machine learning algorithms
can also be used to optimize production processes and improve equipment maintenance.

Customization: Industry 4.0 technologies such as 3D printing can be used to create

customized leather products, meeting the unique needs of individual customers and
increasing customer satisfaction.

Sustainability: Industry 4.0 technologies can help leather manufacturers in Bangladesh to

adopt more sustainable practices, reducing their environmental footprint and enhancing

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their reputation. For example, IIoT sensors can be used to monitor energy usage and
identify opportunities for improvement.

Improved collaboration: Industry 4.0 technologies can help foster collaboration between
different stakeholders in the leather industry. Real-time data sharing can improve
communication between manufacturers, suppliers, and customers, leading to more
efficient supply chains and improved overall performance.

Enhanced worker safety: Industry 4.0 technologies such as wearable sensors can be used
to monitor worker health and safety, reducing the risk of accidents and injuries in the
workplace.

These are some of the key industries of the manufacturing sector of Bangladesh that ought
to be the spearheads in adopting Industry 4.0.

2.2 Industry 4.0 and The Service Sector of Bangladesh

The service sector of Bangladesh is a vital part of its economy that accounts for about
51.3% of its GDP. It includes various industries such as trade, transportation,
communication, finance, education, health, and personal services. The service sector has
grown rapidly in recent years and has become a major source of output, growth, and
employment. However, it also faces challenges such as low productivity, poor quality, skill
gaps, infrastructure bottlenecks, regulatory hurdles, and limited access to finance. To
overcome these challenges and enhance the competitiveness and inclusiveness of the
service sector, Bangladesh needs to adopt policies that promote innovation,
diversification, modernization, and integration.

Industry 4.0 can improve the service sector of Bangladesh by enabling more efficient,
innovative, and customer-oriented services that can enhance competitiveness and growth.
We shall now discuss some of the key industries of the service sector that have the most
potential.

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2.2.1 Transport and Communication

Transport and communication are vital for the socio-economic development of any country.
Bangladesh has a diverse transport and communication network that includes roads,
railways, waterways, airways, as well as post, telecommunication, and information
technology services. The government of Bangladesh has prioritized this sector to improve
infrastructure, connectivity, efficiency, safety, and employment opportunities. However,
the sector also faces some challenges such as congestion, pollution, accidents, and
inadequate maintenance. Here are some ways in which Industry 4.0 can revolutionize the
transport and communication sector of Bangladesh:

Smart Transportation: Industry 4.0 technologies such as the Internet of Things (IoT) can
be used to create a smart transportation system in Bangladesh, improving traffic
management and reducing congestion on roads. This can lead to improved fuel efficiency,
reduced emissions, and a better overall experience for commuters.

Fleet Management: Advanced analytics and machine learning algorithms can be used to
optimize fleet management, improving routing and scheduling to reduce wait times for
passengers and optimize fuel usage for transport companies. This can lead to cost savings
and improved performance for the transport sector in Bangladesh.

Enhanced Communication: Industry 4.0 technologies can improve communication between

different stakeholders in the transport sector, including passengers, transport companies,
and government agencies. This can lead to improved safety and security, better passenger
experiences, and more efficient management of the transport system overall.

Intelligent Traffic Management: AI-powered systems can be used to analyze traffic data
in real-time, helping to identify patterns and trends and optimize traffic flow. This can
reduce traffic congestion, improve safety, and reduce the environmental impact of
transportation in Bangladesh.

Smart Logistics: Industry 4.0 technologies such as blockchain can be used to improve
logistics in the transport sector, improving supply chain visibility and traceability. This can
lead to improved safety and security of goods, reduced waste, and improved performance
for logistics companies in Bangladesh.

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2.2.2 The Financial Sector

The financial sector in Bangladesh comprises formal, semi-formal, and informal sectors.
The formal sector includes regulated institutions, while the semi-formal includes those
regulated outside of banking laws, and the informal includes unregulated institutions. The
sector supports economic growth and poverty reduction but faces challenges such as low
efficiency, high non-performing loans, weak governance, and limited access to finance for
some segments of society.

The financial sector of Bangladesh is one of the major beneficiaries of industry 4.0, as it
has adopted new technologies to improve its services, efficiency, and competitiveness. For
example, technology-powered micro-loans have enabled financial inclusion and
empowerment for rural people1, while blockchain-based crypto-banking systems are
expected to transform the traditional banking system soon.

One way in which Industry 4.0 can improve the financial sector in Bangladesh is through
digital transformation. The use of advanced technologies such as cloud computing, the
internet of things (IoT), and artificial intelligence (AI) can enable financial institutions to
streamline their processes, improve efficiency, and reduce costs. This can translate into
improved customer experience, faster transaction times, and better risk management.

Big data analytics is another area where Industry 4.0 can have a significant impact on the
financial sector in Bangladesh. The use of big data can enable financial institutions to
analyze vast amounts of data and gain insights into customer behavior, market trends, and
risk management. This can help them make better-informed decisions and develop
innovative products and services that meet the needs of their customers.

Artificial intelligence-powered chatbots and virtual assistants can also improve the
customer experience in the financial sector in Bangladesh. These technologies can provide
personalized customer support, reduce response times, and improve customer satisfaction.
This can lead to higher customer retention rates and increased brand loyalty.

The use of blockchain is another area where Industry 4.0 can have a significant impact on
the financial sector in Bangladesh. Blockchain technology can enable secure and
transparent transactions, reduce fraud, and improve regulatory compliance. This can lead
to greater trust in the financial sector and improved access to finance for underserved
segments of society.

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Fintech innovation is another area where Industry 4.0 can have a significant impact on
the financial sector in Bangladesh. Industry 4.0 technologies can enable fintech startups
to develop innovative products and services, expanding access to financial services for
underserved segments of society. This can lead to greater financial inclusion, reduced
poverty, and increased economic growth.

Mobile banking is an area where Industry 4.0 can have a significant impact on the financial
sector in Bangladesh. The use of mobile banking apps can provide greater convenience
and accessibility to financial services for customers, particularly in rural areas with limited
physical banking infrastructure. This can lead to increased financial inclusion and improved
access to finance for underserved segments of society

2.3 Industry 4.0 and the Agricultural Sector of Bangladesh

The agricultural sector of Bangladesh is a vital part of its economy and society. It
contributes about 14.2 percent to the national GDP and employs about 42.7 percent of the
workforce1. It also plays a key role in ensuring food security, poverty alleviation, and
human resources development for the country. However, agriculture in Bangladesh faces
many challenges due to climate change, natural disasters, land degradation, low
productivity, and market constraints. Therefore, it is important for Bangladesh to adopt
sustainable and resilient agricultural practices and policies to cope with these challenges
and enhance its agricultural potential.

Industry 4.0 can revolutionize the agricultural sector of Bangladesh by leveraging

technology to improve productivity, efficiency, and sustainability, while addressing issues
such as food security, supply chain management, and financial inclusion.

Precision Agriculture: IoT sensors, drones, and GPS can optimize crop management and
provide real-time data on soil moisture, nutrient levels, and weather conditions, leading to
increased productivity and reduced waste.

AI-powered Decision Making: Predictive analytics can help farmers make data-driven
decisions on planting, harvesting, and marketing their crops, leading to better yields and
profitability.

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Blockchain for Supply Chain Management: Blockchain technology can provide secure and
transparent supply chain management, enabling farmers to track their products from farm
to market and ensure fair prices and payments for their produce.

Digital Financial Services: Digital financial services such as mobile banking and
microfinance can provide greater access to finance for smallholder farmers, leading to
increased financial inclusion and improved livelihoods.

Agricultural Robotics: Agri-robots can automate labor-intensive tasks such as planting,

weeding, and harvesting, leading to increased efficiency and reduced labor costs.

Agri-tech Innovation: Agri-tech startups and innovation hubs can facilitate the
development and adoption of new technologies in the agricultural sector, leading to
increased innovation, competitiveness, and sustainability.

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Chapter3 4IR: Bangladesh Scenario

The Fourth Industrial Revolution (4IR), which is reshaping how we live and work, is
characterized by the integration of digital, physical, and biological systems. Artificial
intelligence (AI), Internet of Things (IoT), 5G connectivity, blockchain, robotics, and
improved materials are some of the most significant technologies causing this transition
(Schwab, 2015).

One of the defining features of the 4IR is the increasing use of automation and the
deployment of intelligent, interconnected systems. This is expected to lead to significant
increases in productivity and efficiency, as well as the creation of new business models
and the transformation of many industries. So, emergence of new technology based on
the components of the 4th industrial revolution would pave the way of transitioning from
the previous mode of productions into the industry 4.0.

In case of developing countries like Bangladesh, which does not even fully assimilate the
2nd or 3rd industrial revolution, we see a jump into the current global movement (Fong,
2009). We saw this leapfrogging effect when majority of Bangladesh’s population started
using mobile phones before even having access to a telecommunication device like
telephone. Therefore, the beginning of the industry 4.0 in Bangladesh is hard to trace and
are often mixed with the transitions into 3rd industrial revolution.

However, the 4IR also presents significant challenges, such as the potential for job
displacement due to automation, the need for new skills and training, and the risks
associated with the widespread use of data and digital technologies. So, we can also
identify this transition by the labor productivity as well. If the same or more amount of
output is produced with less labor, the factor concentration must have been changed.
Either labor has become more productive or investment on new technologies has started
to give returns. The latter case is happening in Bangladesh. According to a 2018 report by
the private think tank Centre for Policy Dialogue (CPD), factory automation caused the
percentage of female workers in the apparel industry to drop from 64% in 2015 to 60.8%
in 2016 (Sarwar, 2018). Moreover, net job loss occurs as a result of growth's inability to
keep up with the employment losses brought on by automation. Bangladesh managed to
virtually triple its export volume from $12.5 billion in FY2010 to $34 billion in FY2019 despite
having fewer workers—down from 4.4 million to 4 million—and a smaller workforce. Yet,
at this time, the industry has accelerated the use of 4IR technology due to labor

17
constraints and rising compliance expenses. According to a collaborative study conducted
by Bangladesh Computer Council's ICT Division and the University of Georgia, by the
conclusion of the eighth fiscal year (2025), more than 40% less labor may be required to
create the same amount of RMG production as is currently produced.

Another major sector of Bangladesh’s GDP Agriculture contributes 11.2% to the total GDP.
Though its contribution is declining over the years, this sector still employs 38% of total
labor according to latest survey data. But agriculture sector is still way behind in terms of
mechanization. According to a study percentage of mechanization in different stages of
agricultural production is very low. Specially in harvesting, planting, fertilizer, weeding,
drying and storage. But significant level of mechanization is achieved in other stages
(processing, threshing, irrigation, land preparation and pesticide). Therefore, it is safe to
say that, Bangladesh’s agricultural sector is transitioning into the second industrial
revolution at a slow speed. So, applying advance technologies from the Industry 4.0 in this
sector could be very difficult.

Overall, the beginning of the 4IR is a significant turning point in human history, with
effects on the economy, society, and environment that will last for a long time. To make
sure that the advantages of the 4IR are distributed evenly and fairly, it is the responsibility
of individuals, groups, and governments to navigate these changes in a responsible and
sustainable way.

3.1 Threshold Analysis

There is no clear line or set of rules that must be met to enter the fourth industrial
revolution. The fourth industrial revolution is the coming together of digital, physical, and
biological systems and technologies. Examples include artificial intelligence, the Internet
of Things, 3D printing, robots, and biotechnology.

Some of the best ways to tell if a country or organization is ready for the 4th industrial
revolution are:

Digital readiness: A high level of digital infrastructure, connectivity, and literacy is

essential for success in the fourth industrial revolution. Countries and organizations that
have made significant investments in digital technology and have a robust digital

18
ecosystem are more likely to be able to leverage the benefits of the 4th industrial
revolution.

Innovation: Countries and organizations that have a culture of innovation and

entrepreneurship are better positioned to take advantage of new technologies and
develop new goods and services. Innovation is the driving force behind the fourth
industrial revolution.

Education and skills: The 4th industrial revolution will require workers with new skills and
competencies, such as data analysis, programming, and problem-solving. Governments
and organizations that make investments in education and skill building will be better
equipped for the changes introduced by the fourth industrial revolution.

Regulatory environment: The 4th industrial revolution will raise new regulatory challenges,
such as privacy, security, and liability. Countries and organizations that have a flexible
and adaptive regulatory environment will be better able to address these challenges and
support innovation.

Overall, the threshold for graduating into the 4th industrial revolution is a complex
combination of technological, economic, social, and political factors. Countries and
organizations that are able to adapt to the rapidly changing technological landscape and
embrace innovation will be most successful in the 4th industrial revolution.

In Bangladesh’s context let’s consider these above criteria to portray an overview of the
overall situation regarding 4IR.

To measure Bangladesh’s digital readiness, here the Cisco Digital Readiness Index (2022)
is used. This index is developed to measure a country’s preparation to transit into a digital
ecosystem as a whole. It is comprised of seven components. Basic needs, business and
government investment, ease of doing business, human capital, start-up environment,
technology adoption, and technology infrastructure. According to this index Bangladesh
ranks 109th among 146 countries. Among those seven components Bangladesh scored
above the world average in only one (basic need). In other six components Bangladesh is
far behind the global average.

19
 Figure 3-1:Cisco Digital Readiness Index of Bangladesh

To measure innovation threshold, the Global Innovation Index by World Intellectual

Property Organization (WIPO) is taken into consideration. In its 15th edition Bangladesh
ranks 102nd among 132 countries with a score of 19.7. Bangladesh also has ranked poorly
among regional and income-group countries. It ranks 20th among 36 lower-middle-income
group economies and 8th among 10 Central and South Asian economies. There are seven
main components in the Global Innovation Index known as the Seven Pillars of GII.
Bangladesh’s performance in these indices is not satisfactory considering its position on
the regional and income-group ranking.

To measure Bangladesh’s performance on education and skill parameter we used HDI

index, a widely used tool to quantify human development across countries. A long and
healthy life, access to information, and a reasonable level of living are the three
fundamental elements of human development that the HDI measures in summary form over
time. Bangladesh's HDI score for 2021 is 0.661, placing it 129th out of 191 nations and
territories and in the category of Medium Human Development. But the positive insight
from HDI dataset could be the increasing trend over the years. This could result into a
strong backdrop for transitioning into the 4IR.

20
Figure 3-2: The Seven GII Pillar Scores for Bangladesh

Figure 3-3: HDI in comparison 1990 – 2021

21
To understand Bangladesh’s regulatory environment, this study used the Government AI
Readiness Index developed by Oxford Insights. Several governments are looking to
incorporate AI into their daily operations and the provision of public services. AI is being
utilized to increase service delivery efficiency, provide more equitable service access, and
improve the service experience for citizens. There is, however, a dearth of knowledge
regarding the fundamentals required for a government to be in a position to integrate AI
into services, as well as what is required for AI to be used in government successfully and
responsibly after that. This dearth of knowledge is addressed by the Oxford Insights
Government AI Readiness Index 2022. According to this index Bangladesh ranks 80th
among 181 countries. Bangladesh scores 43.63 out of 100 in the Government Pillar of this
index which includes parameters that reflects government’s flexibility to adopt policies to
cope with the changing technological landscape. This Government Pillar includes vision,
governance and ethics, adaptability, and digital capacity. Bangladesh scores moderately
in these parameters and indicated toward a potential environment to support the transition
into the 4IR.

Figure 3-4: 3 Pillars of the Government AI Readiness Index

22
Next section uses all the three pillars of the Government AI Readiness Index to answer
the question whether Bangladesh is ready to make the transition into the Industry 4.0.

3.2 Is Bangladesh Ready?: A Comparative Case

Bangladesh and Vietnam are two Asian countries that have made remarkable progress in
economic and social development in the past few decades. They are often compared and
contrasted in terms of their strengths, weaknesses, opportunities and challenges. They
also share some common features such as a large population, a young demographic, a
strategic location, a diversified export base and a strong resilience to external shocks. One
of the main sectors that both countries compete in is the garment industry, which accounts
for about 80% of Bangladesh’s exports and 16% of Vietnam’s exports. Both countries have
benefited from the shift of global production from China due to rising labor costs and trade
tensions. However, Vietnam has an edge over Bangladesh in terms of product quality,
value addition, market diversification and integration into global value chains.

Bangladesh and Vietnam are both developing countries that aspire to adopt Industry 4.0
and enhance their competitiveness in the global market. However, they face different
challenges and opportunities in terms of their readiness, capacity, and potential for digital
transformation. Vietnam has been more proactive and ambitious in pursuing policies and
strategies to embrace Industry 4.0 and has achieved some notable successes in sectors
such as manufacturing, agriculture, and e-commerce. Bangladesh, on the other hand, has
been more cautious and lagging behind in terms of infrastructure, innovation, skills, and
governance for Industry 4.0. Bangladesh needs to overcome its structural constraints,
invest more in human capital development and foster a conducive ecosystem for digital
innovation.

The Government AI Readiness Index ranks countries by how prepared their governments
are to use AI in public services. According to this index, Vietnam is ranked at 62nd place
globally in 2023, while Bangladesh is ranked 110th place globally in 2023.

Vietnam's proactive and strategic approach towards Industry 4.0 has given it an edge
over Bangladesh. Vietnam has developed a national strategy that focuses on the adoption
of digital technologies to enhance its GDP, competitiveness, and social welfare.

23
Additionally, Vietnam has invested in improving its infrastructure, human resources, and
business environment to attract more foreign direct investment and foster innovation.

Figure 3-6: Bangladesh (2021 Index Score 36.10) Figure 3-5: Vietnam (2021 Index Score 51.82)

3.3 Classroom to the Workplace: Evaluating the 4IR Readiness of Fresh

Graduates

3.3.1 Introduction

Amidst the scenario of Bangladesh, we have tried to investigate the actual preparedness
of the youth citizen of Bangladesh—particularly young and fresh graduates. We aimed to
gather information about their understanding, skills, experience, feelings, and
preparedness related to the Fourth Industrial Revolution. We have examined fresh
graduates' perspectives of their university experience regarding the soft employability
skills they develop. Because with the advent of the latest revolutionary phase of
automation, the employability skill set required from graduates will inevitably shift from
being more technically focused towards being more social and softer (Kahn, 2017; National
Center for O*NET Development for USDOL, 2017). So, skills nowadays refer to hard skills
and soft skills like teamwork, project management, leadership, communication, creative
thinking, and problem-solving (Turner and Mulholland, 2017; Department for Business
Innovation and Skills).

24
3.3.2 Data Method

One hundred eighty-three fresh graduates who have passed between 2020 to 2022 were
our participants. Their information was collected through an online survey. The
questionnaire of the survey has tried to reflect how much they are capable of using
different software. In addition, the 15-item Goldsmiths soft skills inventory was used to
investigate their perspective and soft skills regarding employability.

3.3.3 Outcomes

Job Status: Among the 183 participants, 126 participants have reported that they are
unemployed. Only 57 of them have started working.

Usage of Analytical Software

Nearly 20% of the participants reported that they had yet to use any analytical software.
Besides, 78% of them have used Excel. SPSS user is also significantly 16%.

25
Programming Language Usage

It could be much higher among fresh graduates. Nearly 60% need to become more familiar
with the programming languages. C++ and Python are known among 16% of the
participants. Very few are also familiar with SQL, Java, and other Languages.

26
Creativity Software Usage

Half of the youths have used Canva and Photoshop. On the other hand, one-fourth of the
participants have yet to use any creative software. Besides, many participants are familiar
with adobe Illustrator and Premiere Pro-Aftereffects.

AI Usage

We asked the participants if they have used AI tools like Grammarly, Quil Bot, Chat Gpt,
Copy.Ai, Midjourney, Lexica, etc. 62% of the participants have reported using AI or taking
the help of AI to make their work smoother and more manageable. In comparison, 38% of
the participants do not use AI.

AI Usage
Never Used any
AI tools 38%
Using AI tools 62%
Table 3.1: AI Usage Among Fresh Graduates

27
Soft Skill Set

We followed Goldsmith's soft skills inventory set and asked the participants about their
feelings regarding soft skills they are taught at the university or their academic
institution. We have found a mixed response towards university. Significantly, half of the
participants have reported that their self-management skill needs to be adequately
nourished at university. At the same time, half of them responded that the university
adequately nourishes their ability to work under pressure. Again, half the participants
believe that their institution needs to make more effort to develop their imagination
ability. Besides, half of the participants reported that their institution had taught them to
take responsibility and had no impact on their character maturity. Moreover, many

28
participants have claimed that their university needs to do more to develop their
emotional intelligence and insight.

3.3.4 Limitations

The first difficulty was that it was an online based survey. The authors needed help
persuading young graduates to participate in the survey. The most complicated task was
persuading participants to go for the interview. Few people evaluated whether the survey
had a political intent. Therefore, the issue was resolved by respecting the participant's
privacy. Due to respect for privacy, no contact information was gathered. Next is the
correctness of the responses. Notably, we could not determine whether the respondents'
answers were actual. Most of all, the ongoing study has taken only 183 samples. Taking
more samples with a handful of time could produce more accurate and precise outcomes.

29
3.4 Policies Undertaken
The Bangladeshi government has taken several steps to support the adoption of Industry
4.0. The 8th Fiver-Year Plan (June 2020-June 2025) recognizes industry 4.0 as a key
driver of economic growth, innovation, competitiveness, and employment. The plan aims
to develop a digital economy that leverages ICT, artificial intelligence, big data, cloud
computing, robotics, etc. The plan also supports ICT exports and entrepreneurship by
providing incentives, subsidies, grants, loans, etc. for ICT products and services.
Furthermore, the Bangladeshi Government fosters regional cooperation on industry 4.0 by
participating in platforms such as BIMSTEC, SAARC, BBIN, etc. We shall discuss the
policies undertaken thus far in brevity.

Digital Bangladesh Vision: The government has launched the Digital Bangladesh vision to
transform the country into a digital economy by 2021 and a knowledge economy by 2041.
This vision sets a clear direction for Bangladesh to embrace the fourth industrial revolution
and leverage digital technologies for economic growth, innovation, and social
development.

National Policies: The government has also adopted several national policies that support
Industry 4.0, including the ICT Policy 2018, National Industrial Policy 2016, National Skills
Development Policy 2011, and National Science and Technology Policy 2011. These policies
provide a framework for enhancing the country's digital infrastructure, human capital, and
innovation capacity, and encourage the private sector to invest in technology and R&D.

Investment in ICT Infrastructure: The government has invested in developing the

country's ICT infrastructure, such as high-speed internet connectivity, digital platforms,
data centers, and cyber security systems. These investments aim to improve the country's
digital connectivity and accessibility, facilitate e-commerce and e-governance, and
enhance data security and privacy.

Promotion of ICT Education and Training: The government has also prioritized ICT
education and training by establishing ICT divisions in universities and colleges, creating
ICT incubators and innovation hubs, providing online courses and certifications, and
organizing various skill development programs. These initiatives aim to equip the country's
workforce with digital skills and competencies, enhance their employability and
productivity, and foster innovation and entrepreneurship in the ICT sector.

30
Encouragement of ICT Exports and Entrepreneurship: Finally, the government has
encouraged ICT exports and entrepreneurship by providing tax incentives, subsidies,
grants, and loans for ICT products and services. These incentives aim to promote the
growth of the country's ICT industry, increase its competitiveness in the global market,
and generate employment opportunities and revenue for the country.

Experts have varying opinions on the effectiveness of Bangladesh's policies in addressing

the challenges of Industry 4.0. Some believe that the policies are inadequate to overcome
the lack of awareness, education, infrastructure, innovation, and governance. On the
other hand, some argue that the policies are overly ambitious and unrealistic, given the
current situation of the country, such as low GDP growth, high poverty rate, weak
institutions, and corruption. However, some experts believe that the policies can be viable
and achievable if they are implemented effectively and efficiently, with proper monitoring,
evaluation, coordination, and participation.

3.5 Impediments to Industry 4.0 in Bangladesh

Industry 4.0 presents numerous opportunities for Bangladesh to enhance its economic
growth, create jobs, and improve social welfare. However, several institutional and
infrastructural hurdles hinder the adoption of Industry 4.0 in the country.

Institutional challenges include a lack of awareness among government and private

organizations regarding the potential benefits and challenges of Industry 4.0, inadequate
policies and regulations to support digital transformation and innovation, and insufficient
collaboration and coordination among stakeholders.

Infrastructure-related obstacles comprise of a shortage of funding to invest in smart

technologies and equipment, unreliable internet connectivity and limited access to cloud
computing services, a shortage of skilled human capital to operate and maintain Industry
4.0 systems, and inadequate socio-economic development to ensure social inclusion and
environmental sustainability.

In addition to these hurdles, there may be other factors that could affect the adoption of
Industry 4.0 in Bangladesh. For example, some business owners may be hesitant to change
their existing production models due to concerns about losing control or market share.
Some workers may resist new technologies due to fears about losing jobs or the need to

31
learn new skills. Some customers may prefer low-cost products over high-quality products
that require more resources and time. Low-cost labor may discourage owners from
investing in smart technologies that can enhance productivity and quality, as they may
perceive them as unnecessary or risky. Moreover, the initial investment cost for industry
4.0 may be prohibitive for many factories, especially small and medium enterprises, that
lack sufficient capital and access to finance

32
Chapter4 Consequences

The Bangladeshi labor market could undergo major changes as a result of the 4th
Industrial Revolution (4IR). Here are some potential consequences:

Automation is one of the most important effects of the 4th Industrial Revolution (4IR),
which has had a significant impact on Bangladesh's labor market. As new technologies like
artificial intelligence and robotics continue to develop, many jobs that are currently done
by humans are at risk of being automated. This could lead to job losses and a significant
shift in the types of skills that are in demand. For instance, new technologies like automated
sewing machines and 3D printing could make employment in the garment industry, one of
the biggest employers in Bangladesh, obsolete. Similarly, jobs in the agriculture and
manufacturing industries could also be at risk of automation due to new technologies like
drones and autonomous vehicles. Workers in Bangladesh will need to acquire new skills
that are in demand in the new economy to be ready for the effects of automation on the
labor market. Skills like computing, data analysis, and robotics engineering may fall under
this category.

Second, when it comes to 4IR, the digital divide is a major issue in Bangladesh. Many
workers in the country may lack access to the necessary technology and infrastructure to
compete in the digital economy. This could lead to significant challenges and disparities for
workers who are left behind. For example, workers in rural areas of Bangladesh may not
have access to high-speed internet connectivity, which is essential for many jobs in the
digital economy. Furthermore, workers who do not have access to computers,
smartphones, or other digital devices may be unable to take advantage of new job
possibilities that necessitate the use of these tools. The digital divide could also impact
education and training opportunities for workers in Bangladesh. To address the digital
divide, the government of Bangladesh will need to invest in infrastructure and initiatives
that improve access to technology and digital devices. This could include expanding
broadband internet access to rural areas and providing subsidies or incentives to make
digital devices more affordable for workers. Additionally, education and training programs
will need to be tailored to the needs of workers who may lack access to technology.

The 4IR is likely to disrupt traditional industries in Bangladesh, leading to significant

challenges for workers in these industries. Industries such as textiles and garments, which
are significant employers in the country, may be particularly impacted by the changes
brought by the 4IR. With the increased use of automation and robotics, the need for

33
human labor in these industries may decrease. For example, automated sewing machines
could replace human workers in textile and garment factories, leading to job losses and a
shift in the types of skills that are in demand. To address these challenges, workers in
Bangladesh will need to develop new skills and competencies that are in demand in the
new economy. This could include skills like coding, robotics engineering, and data analysis.
Additionally, the government of Bangladesh could invest in education and training
programs that provide workers with the skills needed to succeed in the new economy.
Furthermore, the government could also explore the potential of developing new industries
and sectors that can take advantage of the new technologies, creating new job
opportunities for workers.

From the perspective of the Fourth Industrial Revolution (4IR), job polarization in the labor
market of Bangladesh is likely to be exacerbated. With the adoption of new technologies
such as automation, artificial intelligence, and machine learning, the demand for workers
with specialized technical and digital skills is likely to grow, while the demand for low-
skilled workers may decrease. This means that some workers may be left behind because
they lack the skills required to thrive in the new economy. Workers in low-skilled sectors
such as textiles or manufacturing, for example, may find it increasingly difficult to compete
in a job market where technological skills are in high demand. These workers may struggle
to transition to new sectors or find new jobs if they do not have access to training and
upskilling programs.

The need for specialized technical and digital skills may make it difficult for Bangladesh's
aging workforce to compete in the job market and adapt to new technologies. Older
employees can acquire these skills and maintain their competitiveness with the aid of
upskilling and reskilling programs. By making investments in education and training and
collaborating with employers to create training plans unique to particular industries and
sectors, the government of Bangladesh can support these initiatives. The government can
support workers in gaining the skills they need to stay competitive by funding upskilling
and reskilling programs. This will also help to ensure that all workers profit from
technological advancement.

34
4.1 Positive Impact

4th Industrial Revolution has the potential to bring significant positive consequences to
Bangladesh, including economic growth, improved quality of life, increased efficiency,
environmental sustainability, and entrepreneurship and innovation. Such as,

Employment opportunities: While some jobs may be lost due to automation, the 4IR is also
likely to create new employment opportunities in fields like e-commerce, fintech, and
logistics. This could lead to the emergence of new industries in Bangladesh and the creation
of new jobs.

Remote work: The COVID-19 pandemic has accelerated the trend towards remote work,
and this is likely to continue in the 4IR. This could lead to a more dispersed labor market,
with workers in Bangladesh competing for jobs with people from all over the world.

Gig economy: The 4IR is also likely to lead to the growth of the gig economy, where
workers are hired on a temporary or project basis. This could provide more flexible work
arrangements for workers in Bangladesh, but could also lead to job insecurity and a lack
of benefits.

Environmental sustainability: The 4IR could also lead to a greater focus on environmental
sustainability in the labor market in Bangladesh. This could create new job opportunities in
fields like renewable energy, sustainable agriculture, and waste management.

Collaborative work: The 4IR is likely to encourage more collaborative work across borders
and industries. Workers in Bangladesh may need to develop new communication and
collaboration skills to work effectively in these new environments.

Emerging industries: The 4IR is likely to create new and emerging industries in Bangladesh,
such as artificial intelligence, blockchain, and the Internet of Things. These industries may
require highly specialized skills, and workers in Bangladesh may need to adapt to these
new demands to stay competitive.

Cybersecurity: As more businesses move online and collect data, there will be an increased
demand for cybersecurity professionals in Bangladesh. This could lead to the emergence
of a new industry in the country and provide new job opportunities.

Entrepreneurship: The 4IR could encourage entrepreneurship in Bangladesh, as new

technologies make it easier to start and run a business. This could lead to the emergence
of new startups and create new job opportunities.

35
Investment in infrastructure: The 4IR will require significant investment in infrastructure
in Bangladesh, particularly in areas like high-speed internet connectivity and digital
literacy programs. This could create new job opportunities in the construction and
technology industries.

Increased need for soft skills: With the 4IR, there will be an increased need for soft skills,
such as communication, collaboration, and problem-solving. This could create new
opportunities for workers in Bangladesh who excel in these areas.

4.2 Concerns Surrounding the Fourth Industrial Revolution

The underlying techs of the 4IR will transform various aspects of human life, such as work,
communication, health, education and entertainment. But there are many ethical and moral
concerns. One such concern is mass surveillance carried out by the authority on people’s
privacy. 4IR technologies, such as big data, AI, biometrics, facial recognition, drones,
social media and internet of things (IoT), can potentially invade people’s privacy by
collecting, analyzing, sharing and using their personal data without their consent or
knowledge. These technologies can also expose people to cyberattacks, identity theft,
surveillance, discrimination, manipulation and other harms that can affect their dignity,
rights and values.

One of the key technologies of 4IR is the blockchain. Blockchain's ethical issues include
the lack of third-party protection, which can lead to disputes, errors, and fraud, as
intermediaries are eliminated. Additionally, the lack of privacy due to public and traceable
transactions can compromise sensitive data. The zero-state problem is also a concern, as
blockchain transactions are irreversible, leading to a permanent record that can affect
one's identity and reputation.

4IR also poses some challenges and risks, such as unemployment and inequality. Some
experts argue that 4IR will result in technological unemployment, as machines replace
human workers in many sectors and tasks. This could lead to job losses, skill gaps, lower
wages and social unrest. Others argue that 4IR will result in increased income inequality,
as the benefits of technology are unevenly distributed among individuals, regions and
countries. This could widen the gap between the rich and the poor, create digital divides,
undermine social cohesion and democracy.

36
Chapter5 Policy Prescriptions

For Bangladesh, the Fourth Industrial Revolution (4IR) offers both chances and
difficulties. The following recommendations for policy may be taken into account in order
to take advantage of the opportunities and handle the challenges:

Education and Skill Development: Bangladesh needs to enhance its education and skill
development system to prepare its workforce for the changing nature of work brought
about by 4IR. This includes investing in science, technology, engineering, and math (STEM)
education, vocational training, and lifelong learning programs.

Infrastructure Development: The development of robust and reliable infrastructure is

crucial to the success of 4IR. This includes the expansion of high-speed internet and
broadband connectivity, the deployment of 5G technology, and the development of smart
cities and transportation systems.

Innovation and Entrepreneurship: The country needs to create an enabling environment

for innovation and entrepreneurship to thrive. This includes promoting research and
development, protecting intellectual property rights, and providing access to finance and
mentorship to startup companies.

Digital Governance: The government needs to embrace digital governance and use
technology to improve public service delivery, increase transparency, and reduce
corruption. This includes the implementation of e-governance, e-commerce, and digital
payment systems.

Social Safety Nets: The government needs to ensure that the benefits of 4IR are shared
equitably among all citizens, including the most vulnerable. This includes expanding social
safety nets, providing training and support to workers who may be displaced by
technological change, and addressing the digital divide.

Also, to address job polarization, the government of Bangladesh could invest in education
and training programs that provide workers with the skills needed to succeed in high-skill
jobs in the new economy. This could include initiatives like vocational training programs or
degree courses in technical fields. Additionally, the government could implement policies
that promote the creation of high-skill jobs in new industries and sectors. Furthermore, the
government could develop policies and programs that help workers transition to new

37
industries or retrain for new jobs. For example, wage subsidies or job training programs
could be implemented to provide financial support to workers who are transitioning to new
industries. Job placement services could also be established to help workers find new
employment opportunities. Overall, addressing job polarization and ensuring that workers
are not left behind in the 4IR requires a comprehensive approach that includes
investments in education and training, policy interventions to promote the creation of high-
skill jobs, and programs to help workers transition to new industries or retrain for new jobs.
Overall, the key to success in the 4IR era is to foster a collaborative ecosystem that brings
together government, academia, the private sector, and civil society to create shared
value and drive sustainable development.

5.1 Conclusion

We all want a better Bangladesh for us and the future generation. The essay will hopefully
contribute to and establish the understanding of the mechanism between Artificial
Intelligence, the fourth industrial revolution, and encountering in future employability. It
will help the policymakers further diminish the severe consequence of 4IR and reap its
maximum benefits. We all want a better Bangladesh enriched with economic prosperity for
us and our future generations.

38
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