Globalization Was Not Without Flaws but Digitalization Can Be Worse If Society Is Not Prepared

Most of us are truly thankful for being alive in this century to experience the fast pace change in information technology and amazing advancements in science which has applications in every aspects of human life. These advancements have a profound positive impact in all of our life one way or other.  

Globalization happened with our planet becoming much more connected and with planned and some unplanned movement of knowledge workers across continents which offered opportunities for millions to realize their dreams including myself. I was fortunate with an opportunity  to come to US in an H1B work visa 20 years ago and start my career in the automotive business.

Last two decades, we witnessed the free Market, drove manufacturing, information technology and knowledge work to the eastern hemisphere from west. This was partially because the western hemisphere did not have enough required skilled population for the exponential need and in some cases it was just a survival exercise to stay competitive by many corporations in an open global market.

This created a significant number of middle class in eastern hemisphere especially in populous developing nations. Not without flaws , but over a period, better standard in working conditions evolved in those parts of the world due to corporate, social and government pressure.

The price of everyday products for consumers in west remained low with cheaper massive production in the east. More market opportunity was created with consumers in eastern hemisphere for high tech and sophisticated products which has been only affordable in west before .

Corporations in the western hemisphere started looking at talent globally and started actively transforming to global businesses. Many major successful businesses were born in eastern hemisphere as a result of this globalization.

While everything simply looks logical and successful, there was an economic divide slowly getting created in the non urban areas of the western world. For many , it felt like, they were left out from the promise of what is happening around the world and what has been told in everyday media.

Majority of the politicians, businesses and government missed paying attention to this economic divide building up in the non-urban areas of United States and in many parts of Europe. Recent elections and referendums is US and Europe have indeed shocked a lot of people, but also exposed the bubble a lot of us live in.  This economic divide is indeed not a deliberate act by anyone. A free world with democracy and meritocracy are there only to advance the society and reward anyone who want to pursue their dreams. This is the general logical belief!. The reality is that the notion of “perfect union” is indeed very hard to sustain and does not exist!.

There has to be some kind of social net to support the unfortunate and left out from mainstream due to the fast pace change in society where winners and losers are created. Once left out from the economic mainstream, it is extremely hard to get back on track. The next generation of these unfortunate group, starts without the necessary social net for education and basic needs to attain their human potential.

As we are entering to the digital economy, this is only going to get worse. Think about elimination of checkout process in all grocery and convenience stores! . Think about the time when the taxi rides do not need drivers!. Just these two changes will push a significant amount of individuals into the economic left out category in society. Now think about the possibilities of intersection of science, computing (especially Artificial Intelligence & Machine Learning), connectivity and automation. This can eliminate a lot of knowledge workers who are in the economically fortunate group today.

All of these changes are fascinating and have greater positive impact on humanity eventually. But during the transition a more economic divide will get created. The change is inevitable, but our countries, communities and the pace of current governance will not be able to manage these major change unfortunately without leaving a lot more into the economically unfortunate group!