The Digital Revolution

The Fourth Industrial Revolution, the digital disruption of business by the information and communications sectors, is well underway in Australia and around the globe. The COVID-19 pandemic has only accelerated the pace of change.

We are witnessing a proliferation of new platforms and new markets, with AI replacing human expertise. We are seeing the transformation of the firm, how we work, and the nature of society. These seismic changes are impacting the global distribution of economic growth and income.

Alarmingly, among the OECD economies, as a share of GDP, Australia’s ICT sector is around half the average and falling further over time. It is second-last, only above Mexico. Given the scope and speed of change, Australia is now confronted by a stark choice: become a tech innovator, producing economic profits and high-paying jobs, or stagnate. We are at a crossroads, and our policy choices today will determine whether we remain one of the wealthiest and happiest nations in the world or see our global position continue to slide.

In The Digital Revolution, Professor Simon Wilkie argues that to preserve our status as one of the most desirable economies to live in, we need a policy revolution. This revolution should address not just universal basic income, but also tax policy, lifelong education, social inclusion, and the nature of work.

In short, the Fourth Industrial Revolution has the potential to usher in a period of sustained prosperity and increasing equality. But to achieve this demands no less than a rethinking of the social contract.