TED Talk: Technology and the Future of The World Economy (Essay Sample)

Technology and the Future of The World Economy
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It is amazing that given the economic crises that the world has experienced since the Great Depression, most futuristic movies and utopian novels are based on science fiction, rather than current global trends in the areas of technology and the economy. Equally surprising, there is little long term speculation in the corporate sector with respect to future technological trends and how they will impact business activities, given the increasing integration of technology and business activities. Given the opportunity to speak at a TED conference, in this regard, I will talk about how the world’s future economy will be solely driven by technology to address resources scarcity and high costs of production, and how exhaustion of natural resources in the industrialized countries will shift the balance of power to today’s less developed nations. This topic is important because it anticipates the economic and political changes that will have a financial impact on people’s lives and the relationship between different countries.
Scarcity of natural resources is the major factor that is likely to play a critical role in determining economic relations between countries in future (Lundahl, 2005, p. 25). Presently, the developed world has an upper hand in economic relations because of its advanced industrialization level and technological superiority over the third world. However, future resource scarcity will shift the power base from Europe, China, and North America to Latin America and Africa, where most of the resources are yet to be exploited. Availability of cheap labor is also another factor that will make manufacturers shift their operations to third world countries. This will see third world countries overtake Europe and North America in industrial growth. In fact, this trend is already a reality as more American companies move into China and Latin America where labor is far cheaper than in the U.S.
The banking industry is another potential front that will see significant transformations. The ATM, which is today the face of technological innovation and automation of functions in the banking sector, will become obsolete together with the banking staff because hard currency and over-the-counter operations will be outdated. Mobile banking would have developed to a level where all business and money transactions will be electronic and will be conducted using hand-held gadgets (Bak & Stair, 2011, p. 105). Similarly, the world will be so globalized that there will be no use of having different currencies. A single world currency, say the dollar, will be the only standard of measure. To regulate the circulation of the virtual currency, there will be a world central bank that will electronically monitor the value of virtual money in public possession. Employers will load money electronically to workers electronic bank accounts, and governments would have devised a system of deducting taxes automatically.
The job market is also poised to witness tremendous changes. Concerned over the high costs of production, entrepreneurs will exploit technology to minimize the demand for human resources (Masys, 2002, p. 33). Consequently, many people are likely to be out of employment as robots and automated machines take their place. Given the high levels of unemployment, governments will be forced to establish robust social welfare programs to provide essential services and needs to the public. This development is lik...