ECONOMICS MADE SIMPLE : The 4 industrial revolution in the Tanzanian context

Among the current issues of discussion across the world is that of the fourth industrial revolution. It has been discussed in various places and contexts. These include in the 2016 World Economic Forum (WEF) where WEF founder and Executive Chairman Professor Klaus Schwab dwelt at the concept at length.

He has written a book on this revolution. There are several components or results of this revolution that are high in discussion. They include issues like blockchain technology and related matters including crypto currencies such as bitcoin.

Although in its infancy stage of development, the revolution is real. New as it is, it needs to be unpacked in Tanzanian context as partly attempted in this piece.

Earlier industrial revolutions

There have been three industrial revolutions before this one. The first one is related to the use of water and steam power to mechanize production of goods and services. The second is related to the use of electricity for mass production. The third revolution used electronics and information technology for automation of production processes.

The fourth industrial revolution

The fourth industrial revolution is still taking shape. It is building on the third one. It is a digital revolution that has been seeing the light of the day since the middle of the 20th century. What is unique in the fourth revolution is its characteristic of a fusion of technologies related to the physical, digital and biological spheres.

It is characterised by disruption in virtually all industries across the world. It is transforming all production, management, governance and many other systems. The technological revolution is basically altering many spheres of life including the way people live, work and interact.

Relevance for Tanzania

The earlier three industrial revolutions have been missed by many developing countries including Tanzania in a big way. These countries cannot afford missing the fourth revolution.

The impacts and implications of the revolution in literally all spheres of life make it very relevant for a country like Tanzania. The disruptions that accompany it include labour market disruptions with potentials of machines displacing labour due to artificial intelligence related to machine learning among others. This has many implications in the unemployment debate.

The revolution is introducing new systems, structures and products with many and far-reaching implications on ways of life, policy, legal and regulatory frameworks. It is bringing products such crypto currencies including bitcoins and systems such as digital market places and platforms and other related technological disruptions characterised and driven by digitisation of almost everything sooner than later.

All these have started and will indeed keep on disrupting what have been normalcy and comfort zones in the public and private sectors as well as academic, civil society, politics, development partners and general public spaces.

Therefore, the beauty of it is that they do not need to have perfected the first three revolutions for the fourth one to be relevant for them. A country like Tanzania can and should frog-leap into the fourth revolution.

Professor Luhanga’s insights

Among the relatively very few scholars in Tanzania who have taken great trouble in studying, writing and educating on some components of the fourth industrial revolution is the very senior academics Engineer Professor Mathew Luhanga, currently Chairman of the Mzumbe University Council, among others. His 59 paged document has specifically dwelt at length on blockchain technology and its many potential and actual use cases.

These include use in education, health, agriculture and many business and related areas. He correctly insists that Tanzania should not miss the fourth industrial revolution vehicle in general and in the context of blockchain technology in particular.

A blockchain is a growing list of records known as blocks. The blocks are linked using cryptography which is hidden writing. It protects information and communications using codes that make only those people the information is intended for to be able to read and process it. A blockchain is resistant to modification of the data.

Ways forward for Tanzania

What is most important for Tanzania is to very well understand the fourth industrial revolution and its many and far-reaching implications in virtually all spheres of life. Those in the frontier of knowledge have to take intellectual leadership on the matter. They need and deserve supportive environment in its very broad sense in furthering the understanding of this concept in and out.