Achieving Inclusive Growth in the Fourth Industrial Revolution

good afternoon my name is Martinez and a member of the managing Board of the World Economic Forum and head of the news center we established in San Francisco on the fourth Industrial Revolution it's a privilege and pleasure to welcome all of you to our session on exceeding inclusive growth in the fourth Industrial Revolution which is not only the theme of succession but the whole meeting as we know the fourth Industrial Revolution is impacting every aspects of life from business to society to government and even to who we are in our own identity but as we move forward in the fourth Industrial Revolution we cannot leave people behind and achieving inclusive growth is essential just to make sure that everybody participates in the benefits of the fourth Industrial Revolution and also we minimize the downside of it and our distinguished panelists will discuss that today this is the reason why the World Economic Forum decided to open a center dedicated to this topic in San Francisco taking a look at specific technologies with a human centric approach and identifying the positive impacts to the citizens and to the society and walking backwards to develop the government's protocols and the policy frameworks to make sure that we accelerate the positive impact and minimize the negative impact it is an Applied Research Center where we sit down with energy leaders government leaders startups international organizations top research universities and kobe-wan these protocols and implement them through pilot implementations we all welcome we all invite you all of you to join us at the center and reach out to your counterparts at the World Economic Forum if you're interested with that I'll hand over the session to my colleague Nick Davis to take it off next reporters thank you very much Murat and thank you everyone for being here this session is titled the same as the theme of this conference achieving inclusive growth in the fourth in real revolution and I want to start by reminding us all that science and technology are not ends in themselves neither really is economic progress the point of us being here as part of the World Economic Forum network and community the point of the activities that we do when we're not lucky enough to sit here and talk about technology is really to improve our own and others lives in different ways and possibly the greatest challenge of any Industrial Revolution is making sure that those who are normally vulnerable or excluded are able to participate in it and so the topic of discussion and the channel challenge for this panel is to ask ourselves the question what do we need to do to make the coming the ongoing revolution in emerging technologies such as artificial intelligence and bio technologies 3d printing neuro tech space exploration and new frontiers in almost every part of science how do we make sure that those are truly inclusive and able to benefit the largest number of people and it's a fantastic opportunity to sit here and discuss this in China not just because China is a world leader in science and technology but you may know that China and the economic progress the improvement in living standards here in this country over the last thirty years was responsible for more than half well more than half of the global increase in living standards and reduction in numbers of people in poverty and so it's here that we have four fantastic distinguished panelists to give us a vision but not just a vision some practical ideas about what all of us can do to help achieve that sense of inclusion those real benefits to people around the world as a result of the exciting technology that many you are working on and developing and to do this we have Deputy Prime Minister Tommen from Singapore who's also the coordinating minister for social and economic affairs we have gene you who is the president of DD to Jing very well-known an exciting ride sharing company and more here in China we have the member of the forum's board of trustees but also a chairman CEO and founder of Salesforce Marc Benioff and a close friend of the forum as well and finally the distinguished economist Tyler Cowen professor of economics from George Mason University and I hope that this will be an opportunity for the panelists to have a little bit of a debate and a challenge to each other and to you as well before we finish in about 48 minutes time I'm going to open by turning to first speaker on my left here Deputy Prime Minister Tommen maybe to set the stage for us a little bit what is the current context for inclusive growth where do we stand today and what worries and excites you but thanks a lot I think the broad description of the problem is first one of middle class stagnation across a broad range of the more advanced economies and second it has to be emphasized because it's not subtly noticed is the fact that we haven't had much catch up from most of the developing world with the advanced world the conventional theories of economic development just haven't played out with the exception of for smaller Asian economies in the 70s and 80s and now coastal China but those are exceptions if you look at Africa if you look at the broad swath of South Asia if you look at Latin America there's been very little movement relative to the frontier let's say we look at American levels of productivity and incomes and we look at what's happened since the 60s till now there's been very little movement very little convergence from less developed in the direction of or in in catching up with the most developed globalization national economies just haven't played out in the way they sherry the source of the problem we know for the first issue of middle-class stagnation is weak productivity growth and there's something which economists on the left and right would agree on that if you don't have sustained uplift of productivity growth we're not going to get an uplift of median incomes of incomes of the broad middle that I think we agree on the source of that problem is that we actually don't have that much disruption happening in our economies despite all that said about Google and Facebook and the latest developments in AI the spread of new technologies isn't that wide the internet may appear to be everywhere but it's not really used that intensively and most new technologies escape the large small and medium enterprise sector of most economies and they escape whole sectors apart from a few leaders in each sector so the diffusion of new technologies has not been rapid and large parts of the advanced economies in fact most economies don't have enough disruption so we need more disruption second problem the lack of catch-up and lack of convergence I would say also reflects a lack of globalization in fact most of Africa most of South Asia most of Latin America is not inserted in the global economy they are asserted within semi protected economies or they just not part of a market economy so we need more disruption more technological innovation and more globalization a little contrary to what you know some of the magazine articles will we'll tell us what is only going to work if we have more activist social strategies as well which is a domestic policy imperative because without active social compacts formed through federal and local government initiative and public/private initiatives is very difficult for us to sustain an era of greater disruption because jobs and firms will be disrupted and to sustain globalization and bring it up to a new new level including a lot much larger part of the world and I think the the interesting story coming out over the last few years when you think of activist social policies is just traditional redistribution about 1 percent against 99 or 10 against 90 and how you go about redistributing it's about the failure to regenerate towns and the failure to integrate neighborhoods in a whole range of countries if you look at the VEX it vote if you look at the u.s. presidential elections last year if you look at even voting patterns in Istanbul Paris Moscow a whole range of places voting patterns are very different in the most the largest most cosmopolitan cities compared to the suburbs the smaller towns and the countryside stock will be different in brexit start will be different in the u.s. presidential elections and that's telling us something we have to think about the local we have to think about how we help local communities regenerate themselves and the traditional methods of redistribution just don't do it it has to be about specialization has to be about capabilities it has to be about communities of learning and communities of mutual mutual help and that what to the local level it very rarely works a continental scale economy or a national level but it works at a local level because people know each other you know who the employers are the employers know who's in the community college or the universities or high schools you can actually form a community the community of learning a community of mutual health and far more attention in social policy federal and local across a whole range of countries has to be paid to these local factors regenerating communities because disruption will have to be part of life it is not part of life we are going to get stuck at low productivity growth and we're going to get stopped at incomes that just don't change from one generation or another or start slipping which is what's happened finally just one quick point because the biggest issue is really about the emerging world at the developing world and the lack of catch-up and we have to think very hard there of how we use technology to make access to the modern world and to make access to global markets much easier and much cheaper for small enterprise and for individuals and the good things that can be done broadband can be put in place high-speed broadband regulatory systems can be changed so as to protect incumbents less and encourage new players to come in because competition is quite essential in the IT space and in the technology space January is what promotes innovation in fact there's a long way to go in regulatory reform in a whole range of developing countries to be able to bring in new technologies faster and the real beneficiary we know who the losers are amongst incumbents but the real beneficiary is a much broader swath of small players and individuals and we we have to make this move because the consequences are dire if you don't achieve this it's not just about some countries being left behind it's going to be consequences of the geopolitical nature thank you very much time and so taking us from the big picture context of the challenges facing us down to some of the the innovations in policy as well as the old tasks that we know that we still have yet to complete in economic policy as well on that so gene you are one of the disruptors that that Taman talked about there and here in China you have a grand vision for the sharing economy and mobility talk us through how your version of this fits into inclusive an inclusive growth thank you I totally agree with Deputy Prime Minister on disruption I think we do need more disruption on technology and on business model but at the end of the day we need to figure out why do we need those we need those to benefit humanity to serve every individual in the term so in our daily work what we're trying to do which is to maximize the benefit of technology and sharing economy to serve two purposes so the first one is on the resource problem that is the vs. problem that's facing all human being right now on this planet for exemplary of all Beijing Shanghai people want to copy the lifestyle of Los Angeles then we will have a resource crisis again so the sharing economy and the data signs we are utilizing today's basically to improve the utilization rate of all the cars of the rose phase of all the energies so that's the number one point and I think without this new business model we cannot imagine what will happen on resource and second more importantly is from economy perspective what is doing to all of us everyone knows China is going through this restructuring our economy and actually on our platform most of the drivers are part-time drivers they earn the second income for their family so they are young graduates who haven't figure out what they want to do for their lifetime their stay at home moms their co miners who will lose their jobs version and in our platform we provide them dignity for life for example about 2 million drivers on our platform earn at least $30 a day and if you if you do a mass monthly rate is 3 times of China's minimum wage so we help these people to transition for their next stop life we're not saying you will do this job forever but this is to prepare them for the next challenge and from a bigger scale perspective this is to prepare our economy for the next challenge so it's not just serving as the landing crucian is also a launching pad for our economy so that's what we are talking about these days and just as a follow-up to this you're also being involved in in other parts of the sharing economy and I know that o fo and mobile can similar schemes have started to take this using the Internet of Things approach to sharing bicycles how fast is the sharing economy growing in China what's the potential here that you see to transform cities and to perform other tasks it's huge and after five years we're a young company very young company but after five years we provide the 20 million rise on a daily basis which is two times of the other markets adding up together and it's not just and also it's not just to provide private car share it's also taxi minibus buses in bikes on our platform so that's the other beauty of sharing economy I think it also provide inclusive growth here so everyone can have a fair access to mobility service it's not just for higher income people for lower income people can also have easier access to service they would like to enjoy thank you turning to mark we've talked a little bit about the macro contextual problems we've talked about a set of technologies here building on digital in the sharing economy touching on IOT but the fourth Industrial Revolution is being driven by lots of exciting and some unknown and uncertain technologies when you look from where you are in San Francisco out into the the world of emerging technology where do you see some areas that we need to be excited and dynamic about and where are some areas that we maybe need to be worried about inclusion and thoughtful before they can come out good okay well thanks Nikki and first of all let me reinforce what Murad said which is that the World Economic Forum is building a very exciting new Center in San Francisco in the Presidio which is called the center for the fourth Industrial Revolution it's based on many of the concepts that Nick wrote about in the books that you've seen published by the World Economic Forum with Klaus Schwab and these incredible world-changing concepts in regards to the technology and shifts that are going on and there's so many exciting new technologies that are emerging both in the biological sciences as you know and also information and technology the biggest you know shift on the technology side that we can see happening today is certainly artificial intelligence and artificial intelligence is growing now at just a much faster rate than ever expected and it's not just machine intelligence it's not just machine learning it's also deep learning and other really incredible new characteristics of artificial intelligence including vision and object detection and others but this idea that there's this broad new platform which is what AI is an incredible new platform that I think that if any of us were to start our company is over again we would start with the AI as the platform and build up today many of us are including now in building AI within our existing platforms that's probably true of almost every company that I'm thinking of today that's in the mainstream and artificial intelligence is going to have dramatic effects and dramatic changes on our society and dramatically improve not just our healthcare and not just not just you know our levels of productivity but it's also going to be very disruptive and I think a lot of us realize that it will also create an incredible crisis of equality and this crisis of equality is going to really shake our society in many different areas and the crisis of equality that artificial intelligence will bring well I think you know really make us look at some of the foundational aspects society of course we're going to probably look at things like basic income we're probably also going to look at things like how do we build new new models of Education and learning especially as we start to displace more and more workers we heard Premier Li today speak about how as larger companies bring in these next generation next generations of automation that workers in many cases indeed r2 are displaced and that's why there's more reliance today on new business creation and next generation small and medium businesses why couldn't agree with him even more than that he's absolutely right well what I can also tell you is that this crisis of equality is going to also affect how we manage our companies and leave them and I think we saw that playing out today or this week in the newspapers and the magazines around the world and we saw that uber went through a significant change in their management management structure and the CEO was fired and one of the board members left and so forth and what happened well it wasn't that long ago it was only in February that there was a really an incredible article incredible article written by one of their executives Susan Fowler who really just pointed out that they had created a culture that was not about equality and it triggered inside a true fourth Industrial Revolution company uber a crisis of equality and you could see it start to play out to the point where women felt unsafe to work at uber and that is a terrible situation for any company and it's certainly a terrible situation for women when they feel that way that they don't feel safe in an organization and this I believe is going to be reflected in society going forward when we talk about inclusive growth which is the title of this what that means to me is equality it means that we are including everybody that is we are including all genders all races all sexual orientations everyone we include everyone we treat them equally we give them equal opportunity we pay them equally you know that the World Economic Forum writes an incredible incredible report and if you haven't read some of the work that Saudi has done I mean the gender pay to pay report okay says that it's going to still take us 170 years before we have gender pay equality this should be assigned that we have throughout our organizations these very serious problems that need to be addressed today so we must search for greater levels of equality within ourselves and that this will be absolutely a critical and an intrinsic part of this fourth Industrial Revolution and if you think that any company or any country or any non-governmental organization will escape that crisis of equality I assure you that it none will and that that's that's kind of where I see it as of right now thank you very much nock and I want to come back to Jean in a minute to ask about how Dedes is dealing with those same inclusion aspects in a fast-growing company here in China but before I do I'd like to turn to to Tyler Cowen Tyler Talman opened by saying he was concerned about a lack of disruption a lack of dynamism in the global economy and you've written about the great stagnation about the complacent classes and in fact in in in some of that work pointed to the fact that technologies have had a role in perhaps distracting us or making us less dynamic less attentive to some of the bigger problems around us when we think about this challenge of inclusive growth and the need to to be more dynamic what's your take on what what countries what people what organizations need to do and how does it look from the economics perspective from from where you stand looking at the data and not just at and corporate culture if we look at most of the Western world for at least 15 years real wages for the middle class have been stagnant or in a few cases even falling this is the most important fact of our times so if you are reading that we are receiving a new technological cornucopia of incredible products basically that cannot be true it would be showing up in the real wages of most people I think the United States in particular we have an economy with several quite stagnant sectors health care almost 18% of our GDP it's incredible the highest in the world yet over the last 10 years our mortality numbers have disappointed they have come in below par in many counties of my country people are now dying sooner than they had 10 or 15 years ago if you look at education just ask a simple question to date how much has the internet improved education in the United States the answer is not quite zero but the biggest thing that goes on often is simply emailing your professor there are now some MOOCs we're not sure how well that will do most of Education is unchanged it's fairly stagnant simple core question for real people what does it cost to buy a house in an above-average School District every year this costs more and that costs going up is actually far more significant than most of the benefits that Tech has brought us just a simple number that's really striking we've talked about uber let me say in passing I'm much more optimistic about IDI than uber but you look at ubirr in the United States uber hired Steve Levitt one of the most famous economists in the world to do a study what is the social benefit of uber for each American on average this is a study done by uber the answer was $20 which is fine great $20 per person how many of us in this room have produced $20 a value for each American but at the end of the day that's just like a fluctuation in or you know electricity bill or a fraction of your property tax increase it's not that big a deal so the Internet has made leisure much better it's connected us to people much more but it's very instructive to compare say the last 10 years of the internet to 1995 1998 which I would say was the true information technology revolution in those years IT was very powerful and you see output going up at a rate of higher than 3% in most sectors of the American economy right now we're doing more with information but so much of our economy resists improvement or look at government we don't even know how to measure the quality of government what does that tell you right is government working hard to get us a means to do so I would say not in my country in many other countries in my opinion the quality of government probably is declining so when you have such major sectors as healthcare education and government either semi stagnant or declining and disappointing you can be doing a lot of things right you can have heroic entrepreneurs in Silicon Valley which I'm a big fan of by the way I love the big tech companies I'm not anti tech but GDP is a huge mountain and to make a dent in that mountain and have a growth rate of 3% it's much much harder than people realize and right now we are not there we need more disruption we need more entrepreneurship and as we heard from Singapore we need it for the whole world service sector productivity is stagnant even in Singapore even in Singapore they cannot really get it to increase and that tells you something it is a hard problem Thank You Tyler so this is the problem we're faced with and back to Eugene because you're at the heart of this in trying to move a mountain in many ways what's your response to Tyler on on this sure I think the key top you we're talking about is in be inclusive here and it's actually our company's philosophy and I also want to address the point professor Cohen just made a lot of people think for our industry why sharing we compete with taxis seriously for example but actually it's not we consider our philosophy is we should be inclusive each other in both taxis and ride sharing should be an alternative to private car sharing that's a solution to the private car if you think about China which is the country and most familiar with we have we have 150 million private car owners I would say actually we have 200 million cars and private cars and if you assume every driver drives 1.5 times a day that's maximum already that's 300 million drivers and in our vision transportation in the long run will become as a matter of fact a service rather than a form of ownership right when transportation becomes a service we can freely berate all these car owners then we can engage more taxi drivers and rideshare drivers together to work for people like all of us here so that's you know that's being inclusive here that's the benefit of being inclusive here and it also will do a very good impact you're utilizing technology and based on sharing economy and will serve other humanities in the second part on the diversity I'm very glad mark talked about it I think we also we're a company that truly believe in diversity first of all we are trying to go global a lot of people are talking about uber we are we also see global market is the future market and Bedwell our philosophies we have to create customer value we have if not we want to go global and we have to it's if we can bring value to people there and to bring value we have to sleep study very deeply on you know what local customers need so we have to respect local diversity and if from a company's culture perspective we also need to understand each employee was there inside was there inner growth driver so for example we we have this women network which I personally feel extremely passionate about didi has more than has 50% women employees and about 40% of senior women executives so for example we talk about how women can develop career in our company and we encourage other moms in pregnant women to take one day off to work from home actually every week so that's that's from a company's perspective and also from economic perspective how we look at inclusive in diversity perfect so we're we're kind of orbiting around two of these important topics here and I want to bring Timon back in to maybe bring us down one more level and and picking up on Tyler's point about this really need to do something this urgent need to do something and yes in Singapore so you sure you have many experiences about how reforming education we're forming government to develop more dynamism but also transmitting that across the world in different ways is is part of what you mentioned in in in the globalization of some of these ideas you mentioned a few ideas before but what are some practical examples that we can hook on to and maybe take back with us to our other their home cities or elsewhere to learn from and build on together well let's say a couple of things and I say this not because Singapore's our model for the world in any sense but it has worked in Singapore reasonably well and there may be some interesting parallels with other cities first I think we have to reshape education and reverse the trend of over academisation that's taken place in the last 40 to 50 years almost everywhere including in China in India the overemphasis on the academic track not just in schools but in tertiary education such that the Fourier regular college education model has become dominant it just doesn't meet the needs of the real world and it doesn't meet the needs of the natural spectrum of abilities that we have in any society we have to take a step back and ask how do we develop the talents skills and enthusiasm of individuals in a way that's relevant to the real world relevant to the opportunities that face them in the market or opportunities that they can create in the market and it requires a much more flexible blend of the academic and the practical and it requires reinvestment at different points of your life for too much as front-loaded now to the first eighteen to twenty-two years of life and I think we all agree that that investment was useful in a general sense depreciates quite quickly and you've got to keep learning through life but we don't have the infrastructure for learning through life we don't have the financial financing schemes and individuals are more or less on their own quite different from school where you've got a teacher and I had the headmaster principal in fact far too much management and shepherding that takes place in the early years and then you're left on your own you're left on your own once you're in adult life we need more curation more mentoring more advice and a lot of it can be done at the local community level and we have to develop that system intermediaries including intermediaries who are doing it for commercial reasons who can help individuals shape their future learning we need financing to be spread out from this take the over concentration in the early years and spread it out more through life so at regular intervals in life people can learn we're trying to do it in Singapore through what we call skills future it's our most important social and economic initiative it's not just economic it's social it's ultimately a more egalitarian way of developing people through life compared to the traditional forms of meritocracy which take place largely in school systems mark you worked a lot in the San Francisco and Bay Area with schools and on the topic of education with Salesforce what have you learned here about the opportunity for inclusion particularly in the area of emerging technologies around new forms of education well I couldn't agree more with my good friend from Singapore is talking about and I hadn't heard the words over academic academic innovation is that what is this I think I just said that yes how do you say it exactly pronounce it no I wouldn't try to agree okay I can't pronounce it but anyway I love that and I completely agree with that and I think it's absolutely connected as well to my gentlemen of my left who really talked about the crisis of growth so and I talked about the crisis of equality and I'll try to start to weave these together and how they're related so I think that you know when you start to look at what's going on especially as these new technologies are coming in and as I said a I is kind of the mother of all technologies that in a well and then I've also said that the speed of that is coming in is unprecedented so you're going to get this kind of high levels of job displacement okay and you're going to get increasing levels of productivity and efficiency there's just no doubt about it and that's going to further compound I think some of the points that you made very well and what you're going to have to get to is really what you talked about which I think was great which is when you talk about skills future easier to pronounce I you know one of the first things I did was I you know certainly I want to be able to impact our new administration in the United States as much as I could and I went to Washington DC and I challenged President Trump and I said look my number one thing that I would like you to do is to focus on five million apprenticeships in the United States by 2020 and that really make apprenticeships a national goal now of course I thought that he would completely resonate with the word apprentice so I knew I had a running start on that okay so and in fact he did he said okay I take your challenge we're going to will go for this five million and why I'm excited about that is because I think that as we get in increasing levels of automation that we have got to be ready to rapidly retrain people and give them these kinds of apprenticeships or these skills future and traditional academic means is not going to be the answer now to next point they better have solid read and writing capability that you would see like in K through 12 that is the fund the foundation and the fundamentals need to be there and but if those fundamentals are there this opportunity to create apprenticeships whether they're coming out of that K through 8 environment or out of the high school environment or whether they're mature workers and they need to be retrained because their jobs have been replaced we have got to be ready to have nationalized apprenticeship programs that are deeply integrated with the structures of our economy and companies like mine this is something that we are really focused on of course Salesforce is the world's fastest growing enterprise software company we will do over 10 billion dollars in revenue this year we have over 26,000 employees we're the number one customer relationship management provider in the world everyone who's attended this conference has used Salesforce because the World Economic Forum runs on Salesforce and all of these systems that you've been using at the core of them is the Salesforce system now because we've built a platform what that allows us to do is to create jobs because we are training people on how to administer and build and create and develop on that platform much in the same way that DeeDee is doing it with their cars and their in their systems we're doing that as well and we predict through with a partnership with IDC we'll add two million jobs to the global economy and 400 billion dollars in GDP by 2020 through our platform so this idea that we need next generation platforms for growth I think that this is something that you know in my personal life I can see is true and I think for DeeDee it's also true and I can probably give you dozens of examples of next generation technology companies that are able to take these tech companies create platforms create opportunities not just to sell you an app for your phone but to create something that's going to give employment and substance for for for people worldwide and I think that that's going to be something that we're going to see that said I've also said before I said it in Davos in January and I'd love to hear the economists view on this which is basic income I think will become a part of a siteís society and and also I'm sure you thought about that as well but that's a super controversial thing to say that you know there's going to be some kind of basic income needed but as we get these very very high levels of automation through artificial intelligence we're going to have to ask ourself are we going to provide basic income through our government well it's a great topic to bring up with eleven minutes to go in in the session but and I do want to get Tyler's view on that Tyler I was going to actually ask you to build on this education element about the fact that you are an educator in multiple respects also through your blog marginal revolution and marginal revolution University etc and some vision there but maybe you just give the maybe you can give a one-minute response and I'll get the same from Jean and Tom and on on basic income because I think that's something where a lot of people are interested in the topic and there's some very differing views from different sides on on whether it's a good idea or not what's your what's your kind of 30 second to 60 second take on BAE on universal basic income my country does not have the politics to support it and since our politics seems to be getting worse there's a lot of potential policy improvements I'm not optimistic about in an ideal world would you think it's an experiment worth taking I would like to see it extrude first in countries like New Zealand and Denmark and see how it goes I think we don't know doing it small-scale we know works but large-scale when all the norms change we don't know hmm gene what do you think about this topic particularly around automation in China sure I would just give any tempo there's a young miner in our platform as a driver and he had the rock n roll dream but he works as a miner in Shaanxi province and because of the his income keeps dropping every month so she started become our driver so that he can drive around during daytime and also play rock n roll he has a band his dream is to come to Beijing so you know that's what we're trying to do here we provide a segment income to people like that and he actually he's a 5 star driver so he's very good he's on top of our driver list so that's one example we have many thousands millions of examples like this we are providing major or a second income to a lot of people there are 17 million drivers getting an income from our platform last year among all of them for millions are retired no laid off workers from coal miners steel makers or battering right so this is what we are trying to do and back to the you know no today I because I think the origination of this topics about AI and whether it would replace people's job I think first of all we all understand the technology will deeply transform people's life you know in many ways and it's inevitable but all we're here I understand is trying to figure out how to reface it and what's the decision we are going to make but for our industry the AI is intelligence driving and it's already here assistant parking is part of it right it's to make driving more safely and back to the base income point my view is you know we need to look at what's the potential market that's why I talked about the private car ownership we have a huge incremental market they're that good human service is always needed so that's that's the relationship here so the existing part will be will be provided by human good human drivers and incremental part is to make driving safer right yep and I think that that's a really important point when we talk about AI on automation is that the benefits of that and not cost saving benefits their lives saved that's time that can be devoted to more productive activities Thomond on basic income well I think you know in all previous waves of technological innovation going back 200 years or even the last 50 years the jobs that were displaced have been more than made up for by new jobs being created typically in a different sector but sometimes in the same sector the question is whether this time it'll be different and to be honest we don't know the answer to that you don't know whether 20 or 25 years from now intelligent machines and big data would have replaced more jobs than we are able to recreate to meet new demands we just don't know the answer to that but what we do between now and then will also shape the answer if we introduce something like universal basic income soon in preparation for a day which may not come where they're not enough jobs they'd be introduced it soon we are more likely to end up in a situation where we don't have enough jobs for people now this may seem a little paradoxical but the basic impulse in public policy has be has to be from now until the thought now right through the next decade and a half at least to get as many people into jobs as possible not to make it more comfortable for them to be out of a job it has to be to get them into jobs and the fact is the jobs are available in every economy in the world jobs are not being filled because of a lack of skills even in the United States there are very large numbers of jobs that are going unfilled because of a lack of basic skills middle skills and of course the higher end skills so that has to be our emphasis if we make it too easy now for people to not have to get themselves trained that we make it too easy on local politicians and entrepreneurs to not put some effort into training people up we are more likely to end up in a in a situation 2025 years from now where indeed people are less employable so I'd say concentrate on the tasks we have from now until the next 20 years and we're more likely then to end up in a situation where we do not have this very dire social vision or where they're just not enough jobs for people very good in the five minutes we have left and unfortunately we don't have the opportunity to bring in the audience but I know that this is a conversation that will continue and is continuing throughout this conference in all the other sessions I'd like to ask each of you on the panel to bring it home to those of us who are lucky enough to be here in Dalian keeping in mind the fact that we are incredibly privileged and yet operating on behalf of not only stakeholders in developing economies who don't have anywhere near the ability to to attend a World Economic Forum conference or meeting like this but also on behalf of future generations that will inherit the the resource management and policies and societies that we are creating today with that in mind what do we do what do we energize ourselves individually in our daily lives leaving here today going back to real life and the massive emails that has stacked up over three days and think how can we make the technologies we work with the organization's we work in more inclusive create that positive social benefit that that that community action that Timon talked about maybe I'll start with you mark because as one of the biggest proponents of the stakeholder theory that I know and a great supporter of ours you've had many ideas but what's your call to action for the audience here in Dalian well I kind of touched on it which is and I mean I can tell you what I'm doing which is that I think that we all need to double down on our commitment to equality I think that just kind of touching on what Nick said you know the World Economic Forum itself was built on this concept that companies need to be focused not just on their shareholders but on their stakeholders this idea of stakeholder theory pioneered by professor Klaus Schwab the executive chairman and founder of the World Economic Forum is why we are all here and stakeholder theory at its core I think is a theory about equality that we the leaders of society have an obligation to look out for those who are less fortunate whether they're the less educated or those who are being discriminated against or those those had that have some type of situation that prevents them from having and I'll come back to the topic a title inclusive growth we need to include everybody and I think that if we get focused on that and create the platforms to do that we will continue to have and will have the best levels of success that we can Tyla what's your what's your call to action I have simple advice mostly for Americans stay open to China how will we solve our digital divide we will do it with super cheap Chinese smartphones who will make a lot of the future advances in biomedicine in drones whatsapp is already better it's like an operating system it's better than anything the United States has we are still under estimating the innovation potential from China for very few voters or even intellectuals or think tanks is openness to China a major issue so that's my call to action we can do it we don't have to solve all the problems with education though I would love to do that to healthcare and so on but yes simply keeping good relations with China is actually number one on my agenda for inclusivity in addition to world peace [Applause] Jeanne sure well I'm not going to comment on that I always start my own one well as as I talked about being truces means inclusive of taxi drivers actually we provide three million rise on a daily basis to taxi drivers for free we didn't charge anything and we also provide very sweet functions to help them locate the restaurants and even toilets at a very you know through two locations so we work with these people a lot and I hope everyone when you come to go home and we take the taxi ride please be very nice and thank them for their hard work and also if you have a private car try to share it once a week okay thank you Tommen well Tyler's point was directed that the United States let me make the point in another way which is that what happens here in this part of China Valley on the northeast or what they call the competition is going to tell us a lot about the solutions for the future across the world look at the city highly international both by heritage as well as the nature of its current economy highly innovative they have one of the most advanced IT parks their innovative society plugged in with the world but highly innovative but they are part of a region in North China with an enormous Rust Belt middle age workers facing the risk of displacement and the numbers are not small the difference is every I I've been here in Dalian for I trust came about 15 years ago I've been here several times since it impresses me every time I come but the problems of the region have grown larger like they have in the Midwest in the United States or anywhere else but the difference is every one I speak to in national leadership and in local leaders not a single one of them thinks that the answer is to find some ways of curbing external competition not a single one of them thinks that the answer is to slow down innovation and have less disruption the answer in their minds is in social and economic policies to help those who are displaced to get back into a job or to have a decent social safety net if they're in the older age group journey your head is still daunting but they have the right policy ideas they are free of illusions they have some resources and I think if there's a place in the world that'll show us the way forward it will be somewhere here thank you Tom and before I must formally thank our four speakers in what has been an excellent panel this afternoon I want to just say two quick things the first is to echo moretz comments which is to say please do engage with us on this topic and come to San Francisco join our communities and engage deeply in this discussion in further work on projects very specifically on technology or on domains like oceans which we work on with with mark and others out of the San Francisco Center because this is an important enough topic for the future that I think we really need to put that dynamism ourselves into it and the second point is just an offer to you in 2016 professor Schwab published his book the fourth Industrial Revolution there is a draft follow up copy here which will be available at the back of the room as you leave there's also a pdf version on on toplink the reason I show it is because it's in draft format so that you can tell us what else should be in here about the way that values and principles can improve the technologies that we're building and benefits that all the lives of the stakeholders that we work on behalf of around the world and with that thank you for being a wonderful supportive audio audience and thank you to Deputy Prime Minister Tom and Jean you Marc Benioff and my good friend Tyler Cowen thank you very much everyone the

Channel: World Economic Forum

Views: 32,291

Rating: 4.7037039 out of 5

Keywords: world economic forum, WEF, Davos, China (Country), Dalian

Id: 8H3ThZ_oOBY

Length: 55min 11sec (3311 seconds)

Published: Thu Jun 29 2017