OECD: Fourth Industrial Revolution ‘exciting’ but has downsides

Face of the future: The humanoid robot Sophia was granted citizenship in Saudi Arabia, the first robot in the world to be given nationality. (Getty Images)
Updated 12 February 2019
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OECD: Fourth Industrial Revolution ‘exciting’ but has downsides

  • Challenge is how to empower half of the workforce that will be displaced
  • National leaders urged to broaden their horizons and make appropriate decisions to create a better future

DUBAI: The Fourth Industrial Revolution (4IR) will be exciting and full of promise, but carries downsides, Jose Angel Gurria, the secretary-general of the Organization for Economic Cooperation and Development, said on Monday.

In a discussion with CNN’s Becky Anderson at the World Government Summit (WGS) in Dubai, Gurria said: “The danger is not just about knowing the technology that is growing at breakneck speed, but how you empower half of the workforce that will be displaced.

“The Fourth Industrial Revolution will carry with it many promises and challenges in employing technology and how to use it. Half of the workforce is going to be disrupted by technology, due to over- or under-qualification. How can we motivate and upskill those that will be displaced in the process?”

Gurria focused on the need for countries to realize the effects on labor forces and on generations yet to enter the world of work.

He also urged national leaders to “broaden their horizons and make appropriate decisions in order to create a better future.”

 

Intellectual property in the 4IR

Intellectual property governance policies promote innovation and creativity, according to the World Intellectual Property Organization’s director general, Francis Gurry.

“Effective intellectual property systems ensure that ideas are transformed into products and services that are beneficial to people,” Gurry said. “Through intellectual property, we ensure that good ideas are translated into economic products, balance of interests and competitiveness.”

In 2018 alone, 2.5 million patent applications were filed worldwide, which, Gurry said, explained the need for stricter protection laws.

China and the US lead the world in terms of patent numbers, followed by Japan.

“We have a large number of patents on artificial intelligence, so this sequence must be protected,” Gurry added. “We expect significant changes in the distribution of capacity around the world as a result of the development of artificial intelligence in robots.”

 

Mobility in the 4IR

Artificial intelligence (AI) and nanotechnologies are among the UAE’s key priorities during the 4IR, according to Mattar Mohamed Al-Tayer, Dubai Road and Transport Authority (RTA) general manager.

“The importance of artificial intelligence in the transportation sector lies in three objectives: supporting the management of major events, forecasting traffic, and monitoring and dealing with accidents,” Al-Tayer said during a session at the WGS on “The Future of Mobility in the Age of 4IR.”

He highlighted the accomplishments the RTA has made over the years, turning Dubai into one of the world’s most efficient cities when it comes to mobility and transportation.

“In Dubai, we organized with international transport companies, such as Uber and others, to provide intelligent services to community members.

“The transport sector in Dubai is moving over a million people, and this figure makes us aware of the importance of establishing a solid infrastructure that enhances transportation,” he said.

 


Bank lending for ‘real economy’ key to boost China growth: central bank official

Updated 17 min 53 sec ago
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Bank lending for ‘real economy’ key to boost China growth: central bank official

  • ‘The central bank doesn’t wish to use administrative methods to require banks (to lend)’
  • Quantitative easing is neither necessary nor possible at the moment

SHANGHAI: China should encourage its banks to support smaller, private firms in the real economy, rather than forced lending or policies such as quantitative easing, a state newspaper quoted a central bank official as saying on Saturday.
“The central bank doesn’t wish to use administrative methods to require banks (to lend),” Sun Guofeng, head of the monetary policy department at the People’s Bank of China (PBOC), told the Financial News, a bank publication.
“It wants to establish positive encouragement mechanisms though monetary policy tools to encourage banks to actively increase their support for the real economy, especially toward smaller and privately-owned firms,” Sun said.
The comments come a month after Sun wrote a commentary in which he argued that problems with timely capital replenishment, bank liquidity gaps and poor rate “transmission” are three major constraints on banks’ supply of credit.
In the interview with the Financial News, Sun said monetary policy transmission had “noticeably improved,” showing that steps to enhance transmission mechanisms had been effective.
He said the central bank would increase the strength of innovation in monetary policy tools.
Perpetual bond issuance “is only one breakthrough” in reducing capital constraints on banks, Sun said, adding that “other methods” could be used in the future.
He said that quantitative easing was neither necessary nor possible at the moment, noting that under China’s financial system the significance of the central bank buying Chinese treasury bonds on the secondary market is limited, and that the PBOC is barred from buying the instruments on the primary market.
China’s banks made the most new loans on record in January following a series of moves to boost lending as authorities try to prevent a sharp slowdown in the world’s second-largest economy.