What is important to the information society is not new technology but a new way of doing things.
Several studies have shown that, during the past few years, growth has increasingly been generated by technological innovations combined with networked forms of organization.
Networks are becoming increasingly common, and the role of innovations is growing, also in labour market.
Routine productions jobs are declining, while the importance of symbolic analytical work and personal service work is increasing.
Most critical aspect in the development of the information society is the development of the deepest structures of society.
Global trends:
1) Increasing international tax competition – Countries compete for investments and skilled labour by reducing tax rates.
2) Routine production goes to China, India, Indonesia, and Russia. The most developed countries cannot relay on routine jobs, so they have to specialize in creative work that is based on higher expertise and work to improve productivity both through increased added value and the development of production processes.
3) Population ageing – The most important trend in Europe and in some other regions.
4) Population ageing leads to problems in financing the welfare state, both because of an increase in direct expenses and a rising dependency ratio. Only innovations can help to maintain welfare state and productivity. The future of the welfare state is a creative welfare state.
5) The second phase of the information society: from technological to social development. – 1 stage focused on development of technology. In second phase development continues, however the focus will shift to larger social matters and the main focus will be on changing the ways in which we operate.
6) The rise of cultural industries – Information economy is expanding in the field of culture, including music, tv, film, games, design etc. This process is affected by technological convergence i.e. the digitalisation of content and the coupling of information technology, communication technology and media.
7) The rise of bio-industries – Genetic engineering will become another key technology besides IT. Also medicine and biotechnology.
8) Regional concentration – World urbanisation rate has exceeded 50%. Large concentration of expertise is situated regionally.
9) A deepening global divide – Gap between the poorest and richest is growing very high. This is because world trade distortions and knowledge divide between developing and developed countries. The situation can be solved by changing the structures of world trade and by bridging the information divide.
10) The spread of a „culture of emergency“ – The development tempo is very high and accelerating. This increases volatility of economies and creates a „culture of emergency“ in workplaces - deepening social gaps and tensions. The challenge of achieving sustainable development is both human and environmental.
Development scenarios:
In the geographical perspective the changes mentioned above are carried out in three leading regions: USA, Asia and Europe.
On the global scale USA is leading and have alone account for one-third of the world’s economy and half of the R&D work. Asia is growing very fast in IT field where almost half of the world’s semiconductors are produced. Europe is currently in disadvantage position and the raise of producing specialists by Asia and Usa is completely new challenge to Europe.
There are currently three dynamic models in terms of technology and economy:
1. American neo-liberalist aka Silicon Valley Model
2. The Asian state run model aka Singapore model
3. European combination of the information society and the welfare state aka Finnish model
Outside these areas, most of the Africa is growing poorer. 1/5th of the world’s population subsist on less than a dollar a day and has no access to health care or education.
Each of the above models has characterised problems:
1. High gap between rich and poor and access to education produces lot of criminals.
2. Tax competition and race to the bottom have increased companies to move out Singapore. Controlled society is not creative and innovative.
3. The danger of „The dead hand of passivity“ People protect industrial era structures of the welfare state. The passivity leads to a economical fade.
The possible help scenario is to combine welfare state and the information society. Only through innovation and reforms it can be protected. Europe has to take the lead and show the way in information society.
The values of the reform of the European model.
1. Caring – can be also called fairness or inclusion of all. Caring means that everybody work to create equal opportunities for all – the key idea of the welfare state. In global scale its the protection of the equal opportunities for all.
2. Confidence – partly based on caring. Gives safety and makes fruitful communality possible.
Lack of caring and confidence creates and atmosphere of fear!
3. Communality – openness, belongingness, willingness to include other people and to do things together.
4. Encouragement – refers to an enriching community whose members feel that they can achieve more than they every could alone. Encouragement comes from generosity.
The lack of communality and encouragement creates and atmosphere of envy!
5. Freedom – rights of individuality, freedom of expression, privacy protection, tolerance etc.
6. Creativity – Is related to the human need for self-fulfilment and continuous personal growth.
Restrictions on freedom and creativity create and atmosphere of control.
7. Courage – is a value to realise the other values.
8. Visionariness – requires courage and forward looking. The willingness to make world a better place.
9. Balance – Sustainability of what we do.
10. Meaningfulness – We all want our lives to be meaningful. Can be crystallised with the question „Will this make my life more meaningful?“
The key concepts of social development
1. a Creative economy
Developed countries cannot compete with Asian markets, but must enhance productivity through innovations; creativity will make it possible to increase added value and improve the efficiency of production.
Europe is innovative in terms of products and production processes, but less creative in terms of business models and brand building. Therefore, financing is required in order to promote research and development related to business creativity.
Richard Florida predicts that at the turn of the millennium creative class accounted for 1/3 of the work force in advanced economies.
Taxation must promote job creation, entrepreneurship and creativity and this makes possible to finance the welfare society. Welfare society is based on the tax revenue generated by work, not by the tax rate. A taxation system that encourages work also acts as an incentive for skilled employees to stay in their countries and makes it possible to attract skilled labour from abroad – this will turn alleviate the problems caused to the welfare state by an ageing population.
The manager’s task is to promote creativity and encourage enthusiasm. The industrial era created a time-oriented management culture that was based on control, whereas the creative economy requires a result-oriented management culture that makes space for individual creativity.
Whatever we do, we are at our best when we are passionate about what we do! People who feel that their work has a meaning do not become tired of their work. An encouraging atmosphere enhances well-being at work and job satisfaction.
Being part of a community that shares our interests and appreciates what we do and who we are is equally powerful with the creative passion. History is full of examples where money has never been the primary motivator – all great achievements have been made thanks to belonging and being a recognised person.
2. A creative welfare society
The population ages and the maintenance of the welfare state require reforms. The philosophy of the welfare state is that people have equal opportunities to realise their potential and are protected against the random misfortunes of life. Ethically, the welfare state is based on the fragility of life and the ability to identify with other peoples fates. A fair society is fair regardless of the cards that fate has dealt you. In fair society provides everyone with equal opportunities in life – welfare state is based on caring.
A service buyer and purchaser are useful to separate by offering the services to each other. In some cases, services can be provided best by parties other than the public sector. A more open competition and cooperation between alternative service providers is in the interests of citizens.
Productivity must be enhanced through innovativeness by combining technological and process innovations. In practice the improvement of productivity through innovations requires that the public sector must adopt a similar management and work culture based on creativity.
People consider that changes in the information society are technical. According to research, productivity improves most when technological and organisational innovations are combined. Entire processes and organisational models must be assessed in order to identify ways of providing the services more efficiently in both economic and qualitative terms.
High quality education is very important for a success of information society. In information society learning continues throughout our lives. The challenge of lifelong learning in the information society requires that people must learn to learn. The success of education is highly dependant on the quality. Education quality must be the same throughout the country, so that the opportunities for children to learn are not dependent on region in which they live or the particular school that they attend.
Open information is very important factor. Free access to information should be promoted by all means. The accessibility of information and knowledge helps people to develop their information-processing skills, while it can also be used as the basis for new information and innovation. Innovation is based on higher-education system. So financing higher educational systems must be adequate.
3. Humanly meaningful development
The information society can also be called the risk society, because of the volatility of economy, unstable employment relationships and constant hurry of the people. The new ways of culturally balanced development is needed. For example the current attempts to keep employees at work to an older age are not realistic because few people currently are willing or able to work up to the present official retirement age. The best national health programme is the prevention of illnesses and other health problems – the promotion of health.
Researches have shown that good management and good work culture are important factors that prevent exhaustion. People who are satisfied with their jobs feel well at work, which is positively reflected in their overall lives. There is also need better balance between work and leisure, as the creative culture cannot be sustainable in the long term if work and other aspects of life are not balanced. Adequate free time allows people to regenerate their energy and creativity and have satisfactory in their life. Trends are going opposite direction: people work longer and longer days, and work is becoming stressful and people have less time for their family and friends.
A balanced development requires both a reform of the work culture and concrete ways for balancing work and leisure in a more satisfactory manner. Managers must set adequate goals to their employees so people feel success after completing them. Managers should also be more flexible with working-time arrangements, which would cover a number of alternatives to meet the needs of individual employees. Some examples are:
a) Project work
b) Working time bank – to store working hours in a time- bank.
The importance of these arrangements is that employees can take time of when they need it.
Mental health problems have become one of the most important reasons for easily retirement. Continuous stress expresses itself with different symptoms such as sleep disorder. Health care system must pay attention also to psychical health.
Some people tend to forget their physical activities. Globally 1/5 of people of working age are overweight. The situation is aggravated by peoples increasing habit of spending their free time in the static virtual world (games, tv etc.). Sporting should be more popularised and each individual should exercise at least once in a day.
Culture and well-being should be understood as intrinsic values, not just as economic tools. This means that we must promote also those forms of culture that are commercially unprofitable. In face, commerce should be seen as a tool that must only be used to the extent to which it benefits life.
4. A global culture
The population of many countries in Europe is ageing so rapidly that already in 2010, their populations start to shrink. Immigration is the only way of improving the dependency ratio. Companies will also need foreign employees when the domestic supply of labour decreases. Open-minded and tolerant approach to immigration is needed more and more.
The best way for immigration is to open doors for students. After the graduation foreign students should have right to work.
Global companies need skilled team leaders and researchers who have international experience. The need for experts exceeds the national supplies, so two alternatives remain:
Companies can either relocate their unites overseas or recruit skilled labour from other countries. With reasonable income taxation is possible to prevent the outflow of experts from abroad. Taxation must promote creative work.
Globalisation must be reciprocal. In regard to the new global division of labour has to be remembered that the partial transfer of routine work to poor countries makes it possible for them to rise from poverty. Free trade must also be developed between countries. Developed countries prevent free trade in agricultural and textile products, which account for 2/3s of the exports of the developing countries.
Rich countries must stick to their commitment and must use their development aid also to promote a freer transfer of information (including open source technology).
No comments:
Post a Comment