Global Changes in Governance to Tech based Rebalancing

Global Changes in Governance to Tech based Rebalancing​

By: Amit Bhushan Date: 1st Nov. 2017

The economic signals emanating have a distinct pattern. The political leadership across most of Asia and Africa is striving hard for a tech based rebalance. Taking broader examples- there have been improvement in metrics reported on ‘ease of doing business’ and this is not just in India, but even many south east Asian nations (such as Thailand, Vietnam and Indonesia) and even Nigeria (or even Kenya), which has reported a distinct jump. Similarly, Saudi Arabia has unveiled a roadmap for broader tech-driven growth plans with aspirations to put together new city/ies under entirely new supportive legislations. The signal from Arab world with its energy resources would ensure that the changes percolate widely there as well as become a trend to be adopted for the region. This broadly sums up as a trend though the growth in ‘public platforms’ which are in line with the taste of the nations or region and their wider adoption is yet to pick up. There has been growth in the local e-commerce platforms and reported business though.

Soon what is likely is that the internet technologies which prove their saliency in one market may feel compelled to address similar markets by replication of eco-systems supported by easier transcend of information and tech enabled processes. With the governments under pressure to adopt technologies and ease controls on businesses, it is perhaps high time that the businesses themselves become more amenable to technologies, their faster and wider adoption across entire spectrum of enterprise activities and leverage the same to scale up faster. One of the key metric perhaps that needs to tracked is how easy is for an international food franchise to set up shop either fully owned , joint venture or as a co-branded entity since food is perhaps easier of the businesses. Currently many nations have artificial barriers and regulations that have hindered the flow of ideas and the sincerity to push jobs growth first should see this wave of liberalization rather quickly than just hi-tech stuff. It may be noted that most open business centers are also high on food businesses even if there strength is not recorded be that London or Paris or New York, each of them would boast of food joints from almost everywhere in the world and this is due to supportive local policies.

As the local services grow in sophistication on the back of technology adoption, there is likelihood of rise of local service conglomerate and domestic consumption in these markets. Further strengthening of the local banking, insurance, retail & wholesale trading would lead to demand for real estate as well as government services such as education, health care, legal services etc. besides energy. While many of the governments might be glued on to attract manufacturing, however given the sharply changing competitiveness, most investors are still skeptical. The light manufacturing especially of consumer goods viz. fast moving as well as durables may however start to move to be locally manufactured given the local preferences and tastes taking on a higher weightage and also propelled by supportive regulations and standards. This short to medium term trend is likely even as nations may continue to jostle with geo-economics as well as geo-political rebalance for their own advantage.

The Netas more often tend to identify themselves with the trend on their ride to popularity rather than starting something new and/or educating people about the same. This especially when a mega-trend is witnessed across regions. Of course we have some hold outs in the region like Pakistan remaining struck with the past in blocking trade and transit and in the process killing business liberalization opportunities for its own people. It might be trying hard alongside China to start some new trade lanes though fate of which might be unknown at best. There also may be nations that have not seen much transformation beyond an initial spur in politics. There is likely to be continued pressure to diversify manufacturing away from hitherto manufacturing nations towards consumption centers or resource centers for a much greater value addition at those places. This is likely to keep politics busy and would continue to swing fortunes of the Netas as this had done in the recent past.

 

[Swaswati Borpuzari]

Global Changes in Governance to Tech-Based Rebalancing​

In the rapidly evolving landscape of the 21st century, the world has witnessed a significant shift in how governance and technology intersect. The traditional models of governance, rooted in hierarchical and bureaucratic structures, are being reimagined to incorporate the dynamic and transformative power of technology. This tech-based rebalancing is not just a trend; it is a fundamental reorientation of how governments, businesses, and societies operate, aiming to enhance efficiency, transparency, and inclusivity.

The Rise of Digital Governance​

The concept of digital governance has gained traction as governments worldwide seek to leverage technology to streamline their operations and better serve their citizens. This involves the use of digital tools and platforms to improve public services, facilitate communication, and enhance decision-making processes. For instance, the adoption of blockchain technology in Estonia has revolutionized its public services, making them more secure and accessible. Similarly, the use of artificial intelligence (AI) in Singapore’s Smart Nation initiative has streamlined urban management and public safety.

Digital governance also extends to the realm of regulatory frameworks. Governments are increasingly using data analytics and AI to monitor and regulate industries, ensuring compliance with laws and standards. The European Union’s General Data Protection Regulation (GDPR) is a prime example of how regulatory bodies are adapting to the digital age, setting stringent guidelines for data protection and privacy.

Tech-Driven Policy Making​

The integration of technology into policy-making processes is another significant aspect of this rebalancing. Governments are using data-driven insights to inform policies and make more evidence-based decisions. For example, predictive analytics can help identify areas prone to social unrest or economic downturn, allowing policymakers to intervene proactively. In the United States, the use of big data in public health initiatives has been crucial in managing the COVID-19 pandemic, from tracking infection rates to distributing vaccines.

Moreover, technology is enabling more participatory forms of governance. Online platforms and social media are being used to gather public input and feedback, making the policy-making process more transparent and inclusive. The City of Boston’s "Citizen's Connect" app, which allows residents to report issues and track their resolution, is a testament to the power of technology in fostering civic engagement.

Economic Rebalancing through Technology​

The tech-based rebalancing is not limited to governance; it is also reshaping the global economy. The rise of the gig economy, facilitated by platforms like Uber and Airbnb, has created new opportunities for workers and consumers alike. However, it has also raised concerns about worker rights and economic stability, prompting governments to develop new regulatory frameworks to balance innovation with social responsibility.

In addition, the adoption of emerging technologies such as AI, the Internet of Things (IoT), and 5G is driving economic transformation. These technologies are enabling the development of new industries and the modernization of existing ones. For example, the integration of AI in manufacturing is increasing productivity and efficiency, while the IoT is revolutionizing supply chain management and logistics.

However, this economic rebalancing also poses challenges. The digital divide between developed and developing nations, as well as between different socio-economic groups within countries, is a significant concern. Governments must ensure that the benefits of technological advancements are equitably distributed and that no one is left behind. Initiatives like digital literacy programs and infrastructure investments in underserved areas are crucial in this regard.

Environmental and Social Rebalancing​

Technology is also playing a crucial role in addressing environmental and social challenges. The use of AI and machine learning in climate modeling and environmental monitoring is providing valuable insights for policymakers and scientists. For instance, satellite imagery and AI algorithms are being used to track deforestation and pollution, aiding in the development of targeted conservation efforts.

Socially, technology is being harnessed to promote inclusivity and address inequality. Digital health solutions are making healthcare more accessible in remote and underserved regions. Online education platforms are bridging the educational gap, providing quality learning opportunities to students in diverse settings. In India, the "Digital India" program is working to improve digital infrastructure and connectivity, with the goal of empowering rural communities and enhancing their access to essential services.

Challenges and Considerations​

While the tech-based rebalancing offers numerous benefits, it also comes with its share of challenges. Issues such as digital privacy, security, and ethical use of AI are paramount. Governments must develop robust frameworks to protect citizens' data and ensure that AI is used responsibly and transparently.

Additionally, there is a need for international cooperation to address global challenges. Cybersecurity threats, digital trade regulations, and the governance of emerging technologies require a coordinated effort among nations. International organizations like the United Nations and the World Trade Organization are crucial in facilitating such cooperation.

Conclusion​

The global changes in governance to tech-based rebalancing represent a significant shift in how societies are managed and how economies are structured. While this transition brings about numerous opportunities for improvement and innovation, it also requires careful consideration of the challenges it poses. By fostering digital literacy, ensuring equitable access to technology, and developing robust regulatory frameworks, governments can harness the power of technology to create more efficient, transparent, and inclusive systems. The future of governance and the global economy lies in this balanced integration of technology, where the benefits are maximized and the risks are mitigated.