The Fourth Industrial Revolution is on the Way

Alvin Toffler, the famous American author, analyzed the profound economic and social transformations of human societies years ago within the framework of the "three waves" theory. According to this theory, all areas of life, including economic, social, and cultural fields, have been transformed in this historical triadic process. However, now we speak of the Fourth Industrial Revolution. The website of the World Economic Forum recently published an article by Klaus Schwab, the founder of this forum, which contains insightful points regarding the emerging Fourth Industrial Revolution. According to this author, humanity is experiencing a transformation process in human societies and a leap towards the Fourth Industrial Revolution. The author believes that the Fourth Industrial Revolution is not merely a simple continuation of its predecessor, the Third Industrial Revolution, but is much larger and more complex. In the framework of this revolution, physical, digital, and biological levels converge. This has implications for human economic, social, and political life, and the mentioned areas will undergo transformations in this process. According to the author of the article on the Fourth Industrial Revolution: "We are on the brink of a technological revolution that will fundamentally alter the way we live and work – which are, of course, interdependent. This transformation is different in scale, scope, and complexity from anything that has occurred before. Although we do not yet know how this transformation will unfold, one thing is clear: the response of all stakeholders in the global community, including public and private sectors, universities, and civil society, must be inclusive and comprehensive." The process of industrial revolutions is divided into four periods based on their driving forces: "The First Industrial Revolution used water and steam power to mechanize production. The Second Industrial Revolution utilized electricity for mass production. The Third Industrial Revolution employed electricity and information technology to automate production. The Fourth Revolution, which arises from the current conditions based on the Third Revolution, is a combination of the simultaneous application of new technologies in the physical, digital, and biological realms." Thus, the three areas of digital, human, and physical, which were previously separate, are now converging rapidly and intertwining. However, the most significant consequence of the Fourth Industrial Revolution, according to Klaus Schwab, may be that all areas of life, from the economy, management jobs, and even how we reside and culturally live, will be profoundly and continuously affected. He writes: "Currently, many phenomena such as artificial intelligence, self-driving cars, drones, and software used in translation or investment can be observed around us. The astonishing advancements in artificial intelligence technology in recent years, which have exponentially increased computational power due to access to vast amounts of information, and have been applied in new drugs, have made it possible to even discover our cultural interests with suitable algorithms. Digital manufacturing technology has simultaneously enabled daily interaction with the biological and biotechnological world. Engineers, designers, and architects have become pioneers of coexistence between microorganisms, our bodies, our consumer products, and even residential buildings through a combination of computational design, materials engineering, and synthetic biology." As mentioned, the consequences of the Fourth Industrial Revolution are so extensive that this revolution will also transform the fields of education and skill training, health and wellness, and even the sense of privacy. The author believes: "The Fourth Industrial Revolution will ultimately change not only what we do but also who we are. It will affect our identity and all related subjects: our sense of privacy, our understanding of ownership, our consumption patterns, the time we allocate to work and leisure, how job opportunities develop, skill cultivation, relationships among people, and interactions." According to Klaus Schwab, the Fourth Industrial Revolution, like its predecessors, signifies new challenges and opportunities. He writes: "The Fourth Industrial Revolution, like the revolutions before it, has the potential to raise global income levels and improve the quality of life for populations across the globe. So far, it has been those consumers who have enough money and access to the digital world that have benefited the most, and new technology has enabled the production of new products and services that make our personal lives more efficient and enjoyable. Examples of these services include ordering taxis, booking flights, purchasing products, paying bills, listening to music, watching movies, or playing video games – all of which can now be done remotely." Beyond the opportunities of the Fourth Industrial Revolution, challenges are also anticipated for this process. One of the challenges of this Fourth Industrial Revolution is how the benefits and profits from it will be distributed and which groups will benefit from it and which will suffer losses, and whether increased production and efficiency will lead to inflationary pressure and mass unemployment. Regarding this matter, the author claims: "... the Fourth Revolution can lead to greater inequality, especially in the labor market. Just as automatic machines replaced labor in all economic sectors, the replacement of new technology for labor will widen the gap in profit distribution between capital and labor. Conversely, this process may overall lead to the creation of more secure jobs with better benefits. However, we cannot currently predict which scenario is likely to materialize, and historical experience suggests that the final outcome is likely to be a combination of both. Nevertheless, I believe that in the future, the talent and ability of the workforce will play a more significant role in the production process compared to capital. This will increasingly lead to a divide between "low-skilled/low-wage" labor and "high-skilled/high-wage" labor in the labor market, which in turn will increase social tensions." The concerns arising from the consequences of the Fourth Industrial Revolution are not limited to economic inequality but also include social concerns. The largest group benefiting from the innovations of the Fourth Industrial Revolution is indeed those holding intellectual and physical capital, namely innovators, shareholders, and investors. This also explains the emergence of wealth and welfare disparities between groups whose income depends on capital and those whose income depends on labor. The emergence of new technology is one of the significant reasons for the stagnation or decline in income for the majority of individuals in high-income countries, as the demand for high-skilled labor has increased while the demand for unskilled labor has decreased. The consequence of such a process is the emergence of a labor market where the demand for both high-skilled and unskilled labor has increased, but the middle-skilled labor force has been left vacant. This helps explain why many workers are frustrated and fearful that their real income and that of their children will stagnate. It also helps explain why the middle class worldwide is increasingly experiencing a sense of dissatisfaction and injustice. The Fourth Industrial Revolution, as well as the convergence of the physical, digital, and biological worlds, has significant implications for power dynamics and the relationship between the state and citizens. According to the author of the article: "In the context of the convergence of the physical, digital, and biological worlds, new technologies and platforms will increasingly enable citizens to interact with the government, express their opinions, coordinate their efforts, and even bypass government officials. At the same time, the government is also trying to increase its control over citizens by employing new technological capabilities based on comprehensive surveillance systems and the ability to control digital infrastructures. Overall, the government will increasingly be pressured to change its current approach to public participation and policymaking, as the competition for power and the redistribution and decentralization of power will reduce the central role of the government in implementing its policies." Ultimately, from Klaus Schwab's perspective, humanity is still at the beginning of the Fourth Industrial Revolution, and therefore still has the opportunity to investigate, discuss, and understand new criteria and ethical laws to move towards a new collective and moral awareness based on a sense of shared destiny.