Showing posts with label globalisation. Show all posts
Showing posts with label globalisation. Show all posts

Monday, March 4, 2013

No people - just screens, terminals and handsets…


On arriving recently at the new Terminal 5 at London’s Heathrow Airport I was struck by the car hire place - no people, just screens, terminals and handsets.


And in the parking terminal, machines that will tell you where you car is parked, just swipe your picking ticket or enter your car registration.


EU passport holders have since 2006 been issued with biometric passports with microchips in them, enabling them to pass seamlessly through automatic gates at border controls.



These new developments all reduce the need to employ people who do routine and repetitive jobs involving scanning, searching, paying and recording.

Supermarkets too are able to dispense with cashiers as customers scan items from their trolleys themselves into one device and pay (cash, credit or debit cards) into another:



And scanning devices are already being introduced in South African supermarkets – here is a ‘price-checking’ scanner at Checkers in Emmarentia:


Increasingly banks will exchange ‘brick and mortar’ branch networks for apps and cellphone-enabled technology as the safest and most secure customer offering, and banks of the future will look very different.

In case you think these developments are a long-way off for South Africa, here is the FNB branch in Hyde Park Shopping Centre:

I imagine that if banks and supermarkets in Europe are replacing recurrent employment costs with expenditure on technology then it is only going to be a short time before it happens here as well.  My local Checkers supermarket in Emmarentia employs probably well over 100 people, and we have no social contract in this country that says we need to preserve these jobs because of the social benefits of the incomes of the employees to them and their families, and of course our wider society.

These changes will not just impact on service sectors of the economy.  In mining, too, there are new developments that will enable remote-controlled mining, in which the rock face can be drilled by machines controlled from the surface:
  
What is driving these changes?

A nanometer is very small – a billionth of a meter long.  The world’s smallest microchip, unveiled in 2010, is just about nine nanometers in length.  Scientists are experimenting with ‘stacking’ microchips so as to be able to make faster and better cellphones (and military technology).  The problem is that they get very hot, so now they exploring how to use tiny amounts of fluid to keep them cool.

Microchips are unlikely to get much smaller, so now the innovation space is more concerned with how to expand their use.  More and more devices will become available with a multitude of uses that will change our lives.  And it is happening already.

We face the loss of perhaps hundreds of thousands of relatively low-paid, repetitive and relatively unskilled jobs as a result of new technologies in a short number of years – unless we can think very creatively and create a new social dispensation that has buy-in and active support from government, business and trade unions to address this question.  Currently there is little indication that this is understood by government and the trade union movement.

Government plans to create new jobs will be undermined by the impact of this technological transformation.  New jobs will have to be created in sectors that require skilled knowledge workers, in sectors such as tourism, beneficiation, information technology and so on.  Opportunities exist, arising from developments such as the Square Kilometer Array, chemical industry beneficiation etc, but these opportunities will critically require skilled people.  The loss of large numbers of relatively unskilled and low paid jobs cannot be countered easily and speedily by new job creation without a new and significant skills development plan coupled with an imaginative economic development strategy that has buy-in from all social partners.  The current National Development Plan may not be enough, especially in the context of our current conflictive political discourse.

Sunday, February 1, 2009

Low Trust Globalisation


I have indulged myself somewhat in recent posts with my thoughts on the Open Doors and Flags scenarios developed by the Shell scenarios team in 2005, in which they explore possible future worlds in 2025.

To complete the picture, the third scenario they imagine is ‘Low Trust Globalisation’. This scenario is perhaps closer to a representation of the world as it is today, and less idealistic than ‘Open Doors’ and less fatalistic than ‘Flags’.

These 3 Shell scenarios were developed through a process of exploring the results of trade-offs and choices that can be made in managing the interplay between powerful forces that exist in the global business environment. The forces derive from a drive for efficiency and the power of the market, the need for security (in the broadest sense) and the consequent push for coercion and regulation, and the push for social cohesion that arises from the human need for community.

So, while the Shell team emphasises that these three forces will continue to shape our world for the next number of years, it is the business choices and political trade-offs that will impact on the balance of these forces and lead to the scenario alternatives. So ‘Flags’ represents a world where the balance is found between the needs of security and community, with free markets playing a less significant (but not absent) role. ‘Open Doors’ emphasises the balance between community (social cohesion) and the market, with less concern about security and higher levels of regulation. And the ‘Low Trust Globalisation’ scenario is a world that finds itself concerned primarily with market efficiency and security, and in which community power and the drive for social cohesion struggle to make as big an impact.

The current global economic ‘crisis’ has had interesting consequences, with western ‘capitalist’ governments effectively nationalising banks and propping up the motor industry. It was Karl Marx of course who in the Communist Party Manifesto called for the nationalisation of the commanding heights of the economy. Come back you Reds – all is forgiven!

And it seems to be agreed, amongst economic commentators in the Western media, that much tighter regulation is needed of the banking system and the behaviour of senior banking, auditing and other financial directors and CEOs.

If this represents a fundamental shift away from the values of the market, it could lead us towards the ‘Flags' scenario, in which national interests take precedence over the globalisation trends of the last 30 years. My sense, however, especially after following what has been happening in Davos, is that the leading economic powers will seek to re-establish the power of the markets as drivers of economic growth and that Western governments will have little appetite for running banks for very long, even if new regulatory systems are negotiated and put in place.

The prime challenge facing those who see the need for a more environmentally and ecologically sustainable world system at peace with itself then remains. As the forces of globalisation reassert themselves, how can companies, organisations, communities and governments, especially those in the developing world, create innovative, practical and dynamic products, services and initiatives that stimulate more sustainable ways of living and lift people out of poverty?

We certainly live in interesting times, and the world and South Africa seem to change markedly even in the time between my blogposts! But these times are times of great opportunity and optimism, even as we face deep and sustained crises of one kind or another. Seamus Heaney, one of Ireland’s leading poets, wrote of the time when ‘hope and history rhyme’:

from The Cure at Troy

Human beings suffer,
they torture one another,
they get hurt and get hard.
No poem or play or song
can fully right a wrong
inflicted or endured.

The innocent in gaols
beat on their bars together.
A hunger-striker's father
stands in the graveyard dumb.
The police widow in veils
faints at the funeral home.

History says, Don't hope
on this side of the grave.
But then, once in a lifetime
the longed for tidal wave
of justice can rise up,
and hope and history rhyme.

So hope for a great sea-change
on the far side of revenge.
Believe that a further shore
is reachable from here.
Believe in miracles
and cures and healing wells.

Call the miracle self-healing:
The utter self-revealing
double-take of feeling.
If there's fire on the mountain
Or lightning and storm
And a god speaks from the sky

That means someone is hearing
the outcry and the birth-cry
of new life at its term.

~ Seamus Heaney ~