4TH INDUSTRIAL

REVOLUTION
27 FEBRUARY 2025
TECHNOLOGY AND POLITICS
• Technological advancements have historically played a critical role in
shaping global power structures.
• From the Industrial Revolution to the digital age, each technological
breakthrough has influenced economic systems, military strategies, and
geopolitical competition.
• This lecture explores the historical evolution of technological shifts, the
strategic importance of emerging technologies, and the impact of fourth
industrial revolution on economy, society and governance. These elements
are essential for understanding how innovation and technological
competition shape international relations in the 21st century.
How does Technology impact on
Development and Power?
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Historical Overview: Technology and
Global Politics
• Pre-Industrial Era: Communication & Information
Tech
• Printing Press (15th century): Invention of the
printing press by Johannes Gutenberg around 1440.
• It democratized access to information, broke the Church's
monopoly on knowledge, and facilitated the spread of
revolutionary ideas such as those seen in the Reformation and
the Enlightenment.
• Telegraph (19th century): Allowed rapid
communication, enabling empire-building and
diplomacy.
First Industrial Revolution (1760-1840)
• Introduction of steam power and mechanization of
production.
• Impact: Initiated a shift from agrarian economies to
industrial powerhouses in Britain, altering global economic
and political power by enabling mass production and
imperial expansion.
Second Industrial Revolution (1870-1914)
• Mass production, electricity, and assembly lines.
• Expansion of global trade and urbanization Enabled nations like
Germany and the United States to catch up and compete
with Britain, redistributing global industrial power and
influencing colonial policies and world politics.
• [Link]
3. The Digital revolution, computers, internet, automation
Third Proliferation of computing, telecommunications, and
Industrial the internet.
Revolution Shift towards a knowledge-based economy and
(Mid-20th Rise of information technology and globalization
globalization.
Century -
Present) Transformation of warfare with cyber capabilities
and digital intelligence.

4. The Characterized by artificial intelligence (AI), quantum

Fourth computing, biotechnology, robotics, and advanced
Industrial automation.
Revolution Blurring of physical, digital, and biological spheres.
(21st
Century
Onward) Rise of data as a strategic asset, influencing power
dynamics among states and non-state actors.
 Political & Legal
Industrial Revolution Key Technologies Economic Impact Global Power Shift
Impact

Legal codification of Britain becomes the

Steam engines, Rise of factory
First (1760s-1840s) property rights, world’s dominant
mechanization system, urbanization
corporate charters industrial power

Rise of regulatory
Rise of monopolies, U.S. and Germany
Second (1870s- Electricity, railroads, states, labor laws,
Fordism, financial challenge British
1910s) mass production social security
capitalism hegemony
systems

Knowledge economy,
Computing, Neoliberal U.S. dominance via
financialization,
Third (1950s-2000s) automation, deregulation, digital tech corporations
deindustrialization in
globalization governance and finance
the West

Algorithmic
Platform capitalism, Tech corporations as
AI, blockchain, governance,
Fourth (2000s- data as commodity, geopolitical actors,
quantum computing, surveillance
present) automation of China’s rise in AI &
biotechnology capitalism, cyber-
services 5G
sovereignty conflicts
Klaus Schwab’s Fourth
Industrial Revolution (4IR):
• Whats his main argument?
• A New Technological Era: We are witnessing a
technological revolution that is transforming how we live,
work, and interact.
• Not Just an Extension of the Third Industrial
Revolution: This revolution is distinct due to its speed,
scale, and systemic impact.
• Technology as a Tool and a Challenge: While technology
brings immense benefits, it also poses ethical, political,
and economic challenges.
Klaus Schwab’s Fourth
Industrial Revolution (4IR):
• The merging of physical, digital, and biological
[Link] 4IR is not just about automation but
about intelligence augmentation, where AI and big
data create new power dynamics.
• [Link]
How the Fourth Industrial Revolution (4IR) differs from
previous revolutions

o Speed/Velocity: The revolution is unfolding at an exponential pace.

o Scale/Breadth and Depth: Combines multiple technologies, affecting every
industry and aspect of society.
o Impact/Systems Impact: Reshapes entire economic, social, and political
systems.
TECHNOLOGICAL ACCELERATION
(VELOCITY)
[Link]
Videos About Industrial Revolutions
• Industrial revolutions
• CNBC: [Link]
• Fourth Industrial revolution (WEF)
• [Link]
Breadth and Depth: Transforming Every Industry and Society

• The ongoing revolution is unique because it transforms

multiple sectors simultaneously and penetrates deeply into
daily life and governance.
• Healthcare: AI-driven diagnostics, CRISPR gene editing, and
robotic surgeries are revolutionizing medicine.
• Finance: Blockchain and decentralized finance (DeFi) are
disrupting traditional banking systems.
• Education: AI tutors and digital classrooms are changing the
way knowledge is disseminated.
• Manufacturing: The rise of Industry 4.0, with smart factories
using IoT, AI, and robotics, is redefining production.
Systems Impact: Reshaping Economic, Social, and
Political Structures

• The velocity of technological change is restructuring political, economic, and social

systems at an unprecedented pace.
• Technology Disrupts Everything
Companies like Uber, Airbnb, and Alibaba disrupted traditional business models within a few
years.
AI and automation are making manual and cognitive jobs obsolete.
• The Shift Toward Zero Marginal Cost
Digital businesses have near-zero costs for replicating and distributing services.
Example: Facebook creates no content, Uber owns no cars, and Airbnb owns no hotels—yet
they dominate their industries.
• Economic and Social Consequences
Rising Inequality: Automation benefits those who own technology rather than those who
work for wages.
Geopolitical Risks: Countries must navigate AI warfare, cyber threats, and surveillance
technologies.
Need for Ethical Regulation: Technologies like CRISPR gene editing raise questions
about human genetic modification.
 III. Key Technological Drivers of 4IR

1. Physical Technologies
o Autonomous Vehicles: Driverless cars, drones, AI-powered logistics.
o 3D Printing: Transforming manufacturing, medicine, and construction.
o Advanced Robotics: AI-driven automation, collaborative robots (cobots).
o New Materials: Smart materials, graphene, bioengineered substances.
2. Digital Technologies
o Internet of Things (IoT): Interconnected smart devices and sensors.
o Blockchain: Decentralized, secure data transactions.
o Artificial Intelligence (AI): Machine learning, deep learning applications.
o Big Data Analytics: Enhanced decision-making, predictive modeling.
3. Biological Technologies
o Genetic Engineering & CRISPR: DNA modification, designer medicine.
o Neurotechnology: Brain-computer interfaces, cognitive augmentation.
o Bioprinting & Synthetic Biology: 3D-printed organs, bioengineered tissues.
Economic Impacts of 4IR

1. Growth and Productivity

o Potential to increase global GDP through automation and AI.
o Innovation-led economic expansion vs. concerns over “secular stagnation.”
2. Labor Market Disruption
o Automation replacing routine jobs.
o Polarization of job opportunities (high-skill vs. low-skill divide).
o Emergence of the gig economy and freelance digital work.
3. Changing Business Models
o Data-driven platforms reshaping industries (Uber, Airbnb).
o New organizational structures and collaborative ecosystems.
Wealth Concentration
• Silicon Valley (2014) vs. Detroit (1990)In 1990,
the three biggest Detroit firms had a market value
of $36 billion, 1.2 million workers, and $250 billion
revenue.
• In 2014, the three biggest Silicon Valley
firms had $1.09 trillion market value, but with just
137,000 workers.
• Conclusion: Digital businesses generate enormous
value with fewer workers.
Employment: Job Creation vs. Job
Displacement
• Automation replaces routine, repetitive [Link], robotics, and
digital platforms create new jobs but often require higher
[Link] from traditional full-time jobs to the gig economy
and freelancing.
• New Jobs Created:
• AI trainers, drone operators, digital marketing analysts, cybersecurity
experts.
• Gig economy roles: Uber drivers, online freelancers, remote
consultants.
• ❌ Jobs at Risk:
• Manufacturing, retail, logistics, transportation, and administrative jobs.
• Example: Self-checkout in stores replaces cashiers.
Impact on Society

Inequality and the Middle Class

The digital divide grows between those who adapt to new
technologies and those who do not.
Wealth concentrates in tech-driven economies.
Winners: AI engineers, biotech experts, data analysts, digital
entrepreneurs.
Losers: Routine workers in factories, call centers, and
transportation.
Solutions: Universal Basic Income (UBI) debate: Should
governments provide income for displaced workers?
Job reskilling programs: Training workers in AI, coding, and
cybersecurity.
Impact on Society
Changing Human Interaction & Social Behavior
Digital addiction and mental health concerns arise due
to increased screen time.
Example: Social media algorithms create echo
chambers and fuel political polarization.
3. Ethical Concerns in AI and Automation
Bias in AI: AI models trained on biased data can reinforce
discrimination.
Autonomous Weapons: Unregulated AI warfare
poses global risks.
Impact on Governments & Global
Governance
1. Government Efficiency and Digital Governance
Governments adopt digital tools to improve public services, taxation, and decision-making.
Example: Estonia’s e-Residency program allows global entrepreneurs to register businesses digitally.
2. Cybersecurity & National Security Challenges
Increased reliance on digital systems means higher cyberattack risks.
Example: Cyberattacks on critical infrastructure (power grids, banking systems).
3. Political Instability and Misinformation
AI-driven fake news and misinformation campaigns impact democracy.
Example: Russian interference in the 2016 U.S. elections using social media bots.
4. Regulation Challenges
Governments struggle to regulate AI, cryptocurrencies, biotech, and automation.
Example: Different countries take varying stances on AI ethics and data privacy (e.g., EU
GDPR vs. China’s surveillance policies).
Future Challenges and Opportunities

 Education & Skills Development

o Need for continuous learning and adaptability.
o STEM and interdisciplinary knowledge becoming essential.
 Regulating Emerging Technologies
o Balancing innovation with societal impact.
o Ensuring cybersecurity and data protection.
 Sustainability and Climate Action
o Using 4IR technologies to combat climate change (smart grids, clean energy).
o Ethical concerns in AI-driven decision-making for resource management.
Conclusion
• The Fourth Industrial Revolution is unlike any before—it is faster, deeper, and
more interconnected.
• Past revolutions took decades to spread; today’s innovations can reach global
adoption in a few years.
• The Fourth Industrial Revolution is not just about new tools but a fundamental
shift in political, economic, and security landscapes.
• The benefits and risks of technology must be actively managed to
ensure inclusive growth.
• Governments, businesses, and individuals must prepare for the fundamental
restructuring of industries, jobs, and social systems.