Dynamics of the digital economy || Current Affairs || CSS/PCS/PMS/IAS

Dynamics of the digital economy || Current Affairs || CSS/PCS/PMS/IAS

Dynamics of the digital economy || Current Affairs || CSS/PCS/PMS/IAS

Dynamics of the digital economy:

The rapid pace of digitization of economies has a huge impact on people's lives, governments and markets. As more and more people adapt to the digital economy, policy makers need to think quickly and carefully about developing policies that maximize the benefits of the digital revolution while reducing the risk of moving jobs. Digital progress is the result of general-purpose technology that has the flexibility to evolve as a driver of change to increase efficiency in all sectors. By reducing information costs, digital technologies could significantly reduce economic and social transaction costs for companies, people and the public sector. Like all revolutions, the current technological revolution is very destructive, and economies will have to face the challenges of growing inequality, unemployment and privacy.

The digital revolution is already underway and has an impact on the parameters of large production, commercial, banking and logistics companies. Digital transactions are growing rapidly and have already reached 20 percent of all transactions in developed economies. Digitization will have a major impact on the transformation of jobs. A 2017 study by the McKinsey Global Institute predicted that one-third of the US workforce would likely reprogram work by 2020. We are entering a new market for smartphones, robotics and artificial intelligence. There is no turning back, as digital technology is expected to accelerate in the coming years. There is no turning back, as digital technology is expected to accelerate in the coming years.

Developing countries will put pressure on skills delivery, workforce migration and productivity. It is striking that the underdeveloped economy is rapidly implementing these technologies and is taking on a leading role in the use of digital technologies, including electronic payments in Kenya, land registration in India, and electronic commerce in China. Specfic attention should be paid to the potential exclusion of a workforce whose skills have been degraded, and the potential threat of further concentration of wealth. According to an Economist analysis, the richest 10% have 82% of global assets, and the lowest 50% have less than 1%. So power Variability will have a major impact on politics and the labor market. It is imperative to invest in awareness of the digital economy, since economic restructuring around transformation technologies can lead to the cost of eliminating jobs. The rapid adoption of digital adoption can lead to leaving the labor market and increasing inequality.

It is expected that four drivers of change will affect business development in the next five years - high-speed mobile internet, artificial intelligence, widespread use of large data analysis and cloud technology. According to a survey conducted by the World Economic Forum, 71% of the tasks undertaken by people in 2018 will be reduced to 58% in 2022. The rest will be done by machines. Education and skills development systems are not keeping pace with the pace of change. Although the digital economy can accelerate the pace of labor market dynamics, opening up new opportunities, it makes traditional skills obsolete. Change requires more flexibility and flexibility among companies and individuals.


As a political intervention, this requires a stronger lifelong relationship between industry and training institutions. Public policy focuses on developing ICT skills, science and mathematics, problem solving and lifelong learning.

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