The state and impact of the Fourth Industrial Revolution on economic development

Abstract

The first industrial revolution is often described as the shift from human’s reliance on animals, human effort and biomass as the primary sources of energy. This reliance was replaced by the use of fossil fuels and mechanical power. The second industrial revolution began towards the end of the 19th century and through the first two decades of the 20th century. The second industrial revolution was characterised by the distribution of electricity, both wireless and wired communication, the synthesis of ammonia and innovative forms of power generation. The third industrial revolution took place during the early 1950s and was characterised by the development of digital systems, communication and rapid advances in computing power which resulted in new ways of generation, processing and sharing information (World Economic Forum, 2016: Internet). The fourth industrial revolution (also known as 4IR) was coined by Klaus Schwab, the founder and executive chairman of the World Economic Forum.1 According to Schwab, the fourth industrial revolution can refers to a world where “individuals move between digital domains and offline reality with the use of connected technology to enable and manage their lives”.