**3. Challenges related to the Fourth Industrial Revolution and policies to deal with them**

Major technological achievements may imply significant public policy issues. McKinsey [8] in its report underlines that the key for the successful adaption to the new technological conditions is the ability of governments to adopt the right policies. Governments that will not be able to follow the appropriate long-term policies will set their economies at risk, that is, when all the other economies will run with great speed, their inability to be adapted to the new reality will drive to the deterioration of their competitiveness, the reduction of their revenue, and the increase in their spending with the possibility of a bankruptcy to be increased. But it is not only the ability of governments to be adapted to the new conditions. There are also severe social problems that may get bigger due to the Fourth Industrial Revolution making policy intervention crucial. Political leaders must ensure that the technological progress will work for the benefit of the society and not against it. Some of the most significant challenges that may arise due to the Industry 4.0 and basic policies to deal with them are given below (see [4, 9, 10] among others). Given that the Industry 4.0 is directly related to socioeconomic growth, these policies must be in complete accordance to the Sustainable Development Goals (SGs) adopted by United Nations Member States in 2015.4,5

**7**

*Fourth Industrial Revolution: Opportunities, Challenges, and Proposed Policies*

being more exposed to income loss and unemployment.

increase of demand and the job creation.

A major area on which governments should focus is that of work. The world of work becomes increasingly complex driving to loss of millions jobs. In the EU a significant decrease in the number of low and medium skilled jobs is already observed. The use of robots significantly reduces the labor cost and the likelihood of human error, while artificial intelligence begins to substitute the human factor even in jobs that require personal contact such as sales and customer service. The World Bank [10] estimates that the increase in automation will get at risk almost 57% of jobs in OECD countries, 47% of jobs in the United States, and 77% of jobs in China. Substantial differences concerning the impact of automation on jobs are also observed among countries, for example, the proportion of workers at high risk (due to automation) in Germany and in Austria is 12%, while in the technologically advanced Korea and Estonia is 6%. However, it is a common ascertainment that in all countries, the most educated and high-skilled workforce is able to be better adapted to the new technological requirements and enjoy higher real wages, while less educated and low-skilled workers are burdened by the cost of automation,

Therefore, the basic policy that governments should follow in order to reduce the risk exposure of employees to automation is the investment in education and training for people of all ages so as to be able to be better adapted to new technologies and digitization. More specifically, a government should support (i) the practical training of professionals through job-related re-skilling and up-skilling programs so as to help people to get familiar with new technologies and become more competitive in labor market, (ii) the practical education and training of children and young people in new technologies so as to enter into the labor market having the appropriate skills and the necessary knowledge, (iii) the direct connection between education and labor market, (iv) the training in STEM (Science, Technology, Engineering, and Mathematics) subject areas and the active participation of young people in such programs as young people in South Korea, Japan, Singapore, India, and China do, (v) internships and practice for young people (up to 24 years old) in order to gain work experience during their studies, and (vi) adult learning and lifelong learning programs so as to help elder people to be smoothly adapted to new technologies and digitization. Another significant goal of governments must be the job creation. The investment in education and training can be effective only if the right jobs are available. The public investment in sectors such as infrastructure and housing could benefit the long-term productivity of the economy driving to the

Another issue that may arise due to the Fourth Industrial Revolution is the income inequality gap widening. Nowadays, global income inequality is at very high levels with the richest 8% of the world's population to earn half of the world's total income and the remaining 92% of people the other half. The income inequality rises globally in a fast pace. Between 1990 and 2010, the income inequality in developing countries reached at 11%. The rapid technological progress and the introduction of new technologies in all sectors, in combination with factors such as the insufficiently regulated financial integration and the growing competition in product and service markets, may widen this income inequality gap. The most educated and highly qualified staff has the ability and the skills to be better adapted to automation, and thus they will be widely benefited by the technological achievements. Moreover, people whose income, skills, and wealth are already high will be further favored by the significant increase of their assets' value because of the technological progress. On the other hand, low-skilled workers will experience unemployment and constant downward pressure on their wages and their income. The workers that will be most affected by the Fourth Industrial Revolution will be those that may now feel invulnerable to competition with robots, that is, those whose jobs require

*DOI: http://dx.doi.org/10.5772/intechopen.90412*

<sup>4</sup> https://www.un.org/sustainabledevelopment/sustainable-development-goals/.

<sup>5</sup> **17 Sustainable Development Goals (SDGs):** No Poverty (SDG1), Zero Hunger (SDG2), Good Health and Well-being (SDG3), Quality Education (SDG4), Gender Equality (SDG5), Clean Water and Sanitation (SDG6), Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Reduced Inequality (SDG10), Sustainable Cities and Communities (SDG11), Responsible Consumption and Production (SDG12), Climate Action (SDG13), Life below Water (SDG14), Life on Land (SDG15), Peace and Justice Strong Institutions (SDG16), Partnerships to achieve the Goal (SDG17).

### *Fourth Industrial Revolution: Opportunities, Challenges, and Proposed Policies DOI: http://dx.doi.org/10.5772/intechopen.90412*

A major area on which governments should focus is that of work. The world of work becomes increasingly complex driving to loss of millions jobs. In the EU a significant decrease in the number of low and medium skilled jobs is already observed. The use of robots significantly reduces the labor cost and the likelihood of human error, while artificial intelligence begins to substitute the human factor even in jobs that require personal contact such as sales and customer service. The World Bank [10] estimates that the increase in automation will get at risk almost 57% of jobs in OECD countries, 47% of jobs in the United States, and 77% of jobs in China. Substantial differences concerning the impact of automation on jobs are also observed among countries, for example, the proportion of workers at high risk (due to automation) in Germany and in Austria is 12%, while in the technologically advanced Korea and Estonia is 6%. However, it is a common ascertainment that in all countries, the most educated and high-skilled workforce is able to be better adapted to the new technological requirements and enjoy higher real wages, while less educated and low-skilled workers are burdened by the cost of automation, being more exposed to income loss and unemployment.

Therefore, the basic policy that governments should follow in order to reduce the risk exposure of employees to automation is the investment in education and training for people of all ages so as to be able to be better adapted to new technologies and digitization. More specifically, a government should support (i) the practical training of professionals through job-related re-skilling and up-skilling programs so as to help people to get familiar with new technologies and become more competitive in labor market, (ii) the practical education and training of children and young people in new technologies so as to enter into the labor market having the appropriate skills and the necessary knowledge, (iii) the direct connection between education and labor market, (iv) the training in STEM (Science, Technology, Engineering, and Mathematics) subject areas and the active participation of young people in such programs as young people in South Korea, Japan, Singapore, India, and China do, (v) internships and practice for young people (up to 24 years old) in order to gain work experience during their studies, and (vi) adult learning and lifelong learning programs so as to help elder people to be smoothly adapted to new technologies and digitization. Another significant goal of governments must be the job creation. The investment in education and training can be effective only if the right jobs are available. The public investment in sectors such as infrastructure and housing could benefit the long-term productivity of the economy driving to the increase of demand and the job creation.

Another issue that may arise due to the Fourth Industrial Revolution is the income inequality gap widening. Nowadays, global income inequality is at very high levels with the richest 8% of the world's population to earn half of the world's total income and the remaining 92% of people the other half. The income inequality rises globally in a fast pace. Between 1990 and 2010, the income inequality in developing countries reached at 11%. The rapid technological progress and the introduction of new technologies in all sectors, in combination with factors such as the insufficiently regulated financial integration and the growing competition in product and service markets, may widen this income inequality gap. The most educated and highly qualified staff has the ability and the skills to be better adapted to automation, and thus they will be widely benefited by the technological achievements. Moreover, people whose income, skills, and wealth are already high will be further favored by the significant increase of their assets' value because of the technological progress. On the other hand, low-skilled workers will experience unemployment and constant downward pressure on their wages and their income. The workers that will be most affected by the Fourth Industrial Revolution will be those that may now feel invulnerable to competition with robots, that is, those whose jobs require

*Industrial Robotics - New Paradigms*

**to deal with them**

*Potential impact of job automation across industry sectors.*

**Figure 3.**

adopted by United Nations Member States in 2015.4,5

Partnerships to achieve the Goal (SDG17).

<sup>4</sup> https://www.un.org/sustainabledevelopment/sustainable-development-goals/.

<sup>5</sup> **17 Sustainable Development Goals (SDGs):** No Poverty (SDG1), Zero Hunger (SDG2), Good Health and Well-being (SDG3), Quality Education (SDG4), Gender Equality (SDG5), Clean Water and Sanitation (SDG6), Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Reduced Inequality (SDG10), Sustainable Cities and Communities (SDG11), Responsible Consumption and Production (SDG12), Climate Action (SDG13), Life below Water (SDG14), Life on Land (SDG15), Peace and Justice Strong Institutions (SDG16),

work" and "Education" are the most protected against the automation risk implying that there are tasks such as teaching and nursing that cannot be replaced by machines.

**3. Challenges related to the Fourth Industrial Revolution and policies** 

Major technological achievements may imply significant public policy issues. McKinsey [8] in its report underlines that the key for the successful adaption to the new technological conditions is the ability of governments to adopt the right policies. Governments that will not be able to follow the appropriate long-term policies will set their economies at risk, that is, when all the other economies will run with great speed, their inability to be adapted to the new reality will drive to the deterioration of their competitiveness, the reduction of their revenue, and the increase in their spending with the possibility of a bankruptcy to be increased. But it is not only the ability of governments to be adapted to the new conditions. There are also severe social problems that may get bigger due to the Fourth Industrial Revolution making policy intervention crucial. Political leaders must ensure that the technological progress will work for the benefit of the society and not against it. Some of the most significant challenges that may arise due to the Industry 4.0 and basic policies to deal with them are given below (see [4, 9, 10] among others). Given that the Industry 4.0 is directly related to socioeconomic growth, these policies must be in complete accordance to the Sustainable Development Goals (SGs)

**6**

moderate skills such as customer service that could be easily replaced by artificial intelligence. Many studies and reports underline that without the appropriate policies, the Fourth Industrial Revolution may contribute to the widening of the income inequality gap with unfavorable consequences for the society. **Figure 4** below depicts this decreasing trend between income percentile and the share of workers at high risk of automation; people with lower income percentile (less than 10%) are the most exposed to the risk of automation, while well-paid employees with income percentile more than 75% are the most protected against the risk of automation. The fact that the well-paid employees are usually highly educated people highlights once more the importance of the education as a shield against the risk of automation.

Studies that are referred to the relation between the Industry 4.0 and the income inequality are that of Acemoglu [11], Barro [12], Krueger [13], Krusell et al. [14], Hornstein et al. [15], Berman et al. [16], Card and DiNardo [17], Huber and Stephens [18], and Benioff [19], which argue that technological changes affect income distribution and deepen the gap between high and low-skilled workforce concluding that the income inequality gap expansion is due to the technological crises that can disproportionately increase the demand for capital and drive to a great job loss due to automation. Birdsall [20] in his study supports that the technological progress increases the "skill bonus" and replaces low-skill workers, deepening in this way the inequality. Papageorgiou et al. [21] conclude that variables such as technological development, access to education, sectorial employment rates, and national economic growth are deterministic for inequality in low- and high-income countries. In these variables, the International Labor Organization adds the technological change, the globalization, and the reduction of social welfare as key factors for widening income inequality. An alternative point of view is that of Goldin and Katz [22] according to which income inequality is mainly explained by changes in education rather than shifts in technology. In her study, A. Guscina [23] argues that during the period of pre-globalization (pre-IT period), technological progress enforced labor reducing the income inequality, while in the post-globalization period, technological progress enforced capital increasing in this way the inequality. According to the Deloitte Global report [24], the adoption of emerging technologies as artificial intelligence in countries such as India, South Africa, and China may drive to social turmoil and increase income inequality in the future. These countries

**9**

and food waste reduction.

*Fourth Industrial Revolution: Opportunities, Challenges, and Proposed Policies*

as it will reduce their competitive advantage of low-cost labor.

days, one out of nine people worldwide (795 million) is malnourished.

inequalities and the negative social consequences.

had significant economic and political changes that in some cases led to high

growth, but at the same time unknown "social cracks" had been introduced creating greater sensitivity to future social and economic changes. Kuzmenko and Roienko [25] in their study support that the income inequality will rapidly grow (under the influence of the Fourth Industrial Revolution) not only in the emerging economies but also in the developed countries such as France, United Kingdom, and Spain. According to the report of the Swiss bank UBS [26], the Industry 4.0 will have less impact on developed economies such as Switzerland and Singapore, but in emerging markets and especially in countries of Latin America and India, the impact of the extended use of artificial intelligence and robots will be particularly unfavorable

Another severe social problem that is possible to get bigger due to the Fourth Industrial Revolution is poverty that is growing rapidly. Today, 767 million people live below the poverty line (with \$1.90 per day). The evolution of technology and the job loss may worsen this situation driving more people to the unemployment and the poverty. The problem may become deeper if one takes into account the massive urbanization that is observed internationally. By 2030, almost 60% of the world's population will be concentrated in urban areas. The rapid population growth and the non-sustainable urbanization may cause a great rising of poverty, conflicts, high waste of resources, and severe health and food security issues. In our

Thus, a general conclusion is that the Fourth Industrial Revolution may contribute to the increase of poverty and hunger and to the widening of income and social inequality with rich and high-skilled people taking advantage from the technological progress and low-paid and less qualified employees suffering a greater reduction of their income. The widening of the income gap between rich and poor countries (but also within the countries) may also lead to an increase of illegal immigration which in turn may drive to serious cultural and political conflicts. Thus, the necessity of political intervention by authorities becomes crucial in order to reduce the

Tax transformations could help in this direction. Governments may increase their tax revenue and social security contributions by workers whose earnings (income and wealth) will increase due to the Fourth Industrial Revolution such as the high-skilled people and apply a tax relief for workers whose income will be reduced. Tax revenue may be further increased by the reinforced productivity of the economy because of the use of new technologies. These increased tax revenue may finance investments in education, training, infrastructure and in stronger social security networks for those who have great difficulty to be adapted to new technologies such as elder people. Providing equal access to high-quality education and equal opportunities to people who do not have the financial ability for training and re-training, national authorities may drastically reduce the discriminations and the socioeconomic inequality. Other sensitive social policies are the extension of the existing social security benefits and the adoption of the universal basic income (UBI) in order to protect the income of people that are hit by unemployment. Finally, governments taking advantage from the opportunities that Industry 4.0 offers may also contribute to the reduction of the hunger worldwide by promoting the sustainable agricultural production and the "smart farming," organizing food quality improvement programs for all and especially for young people using digital technology and artificial intelligence and supporting innovative ways of recycling

The risk of a gender gap expansion is another social issue that requires authority attention. In the future, industrial workforce will be mainly male, with less than 10% of European programmers being women. According to the report of the

*DOI: http://dx.doi.org/10.5772/intechopen.90412*

**Figure 4.**

*Share of workers at high automation risk by income level.*

### *Fourth Industrial Revolution: Opportunities, Challenges, and Proposed Policies DOI: http://dx.doi.org/10.5772/intechopen.90412*

had significant economic and political changes that in some cases led to high growth, but at the same time unknown "social cracks" had been introduced creating greater sensitivity to future social and economic changes. Kuzmenko and Roienko [25] in their study support that the income inequality will rapidly grow (under the influence of the Fourth Industrial Revolution) not only in the emerging economies but also in the developed countries such as France, United Kingdom, and Spain. According to the report of the Swiss bank UBS [26], the Industry 4.0 will have less impact on developed economies such as Switzerland and Singapore, but in emerging markets and especially in countries of Latin America and India, the impact of the extended use of artificial intelligence and robots will be particularly unfavorable as it will reduce their competitive advantage of low-cost labor.

Another severe social problem that is possible to get bigger due to the Fourth Industrial Revolution is poverty that is growing rapidly. Today, 767 million people live below the poverty line (with \$1.90 per day). The evolution of technology and the job loss may worsen this situation driving more people to the unemployment and the poverty. The problem may become deeper if one takes into account the massive urbanization that is observed internationally. By 2030, almost 60% of the world's population will be concentrated in urban areas. The rapid population growth and the non-sustainable urbanization may cause a great rising of poverty, conflicts, high waste of resources, and severe health and food security issues. In our days, one out of nine people worldwide (795 million) is malnourished.

Thus, a general conclusion is that the Fourth Industrial Revolution may contribute to the increase of poverty and hunger and to the widening of income and social inequality with rich and high-skilled people taking advantage from the technological progress and low-paid and less qualified employees suffering a greater reduction of their income. The widening of the income gap between rich and poor countries (but also within the countries) may also lead to an increase of illegal immigration which in turn may drive to serious cultural and political conflicts. Thus, the necessity of political intervention by authorities becomes crucial in order to reduce the inequalities and the negative social consequences.

Tax transformations could help in this direction. Governments may increase their tax revenue and social security contributions by workers whose earnings (income and wealth) will increase due to the Fourth Industrial Revolution such as the high-skilled people and apply a tax relief for workers whose income will be reduced. Tax revenue may be further increased by the reinforced productivity of the economy because of the use of new technologies. These increased tax revenue may finance investments in education, training, infrastructure and in stronger social security networks for those who have great difficulty to be adapted to new technologies such as elder people. Providing equal access to high-quality education and equal opportunities to people who do not have the financial ability for training and re-training, national authorities may drastically reduce the discriminations and the socioeconomic inequality. Other sensitive social policies are the extension of the existing social security benefits and the adoption of the universal basic income (UBI) in order to protect the income of people that are hit by unemployment. Finally, governments taking advantage from the opportunities that Industry 4.0 offers may also contribute to the reduction of the hunger worldwide by promoting the sustainable agricultural production and the "smart farming," organizing food quality improvement programs for all and especially for young people using digital technology and artificial intelligence and supporting innovative ways of recycling and food waste reduction.

The risk of a gender gap expansion is another social issue that requires authority attention. In the future, industrial workforce will be mainly male, with less than 10% of European programmers being women. According to the report of the

*Industrial Robotics - New Paradigms*

moderate skills such as customer service that could be easily replaced by artificial intelligence. Many studies and reports underline that without the appropriate policies, the Fourth Industrial Revolution may contribute to the widening of the income inequality gap with unfavorable consequences for the society. **Figure 4** below depicts this decreasing trend between income percentile and the share of workers at high risk of automation; people with lower income percentile (less than 10%) are the most exposed to the risk of automation, while well-paid employees with income percentile more than 75% are the most protected against the risk of automation. The fact that the well-paid employees are usually highly educated people highlights once more the importance of the education as a shield against the risk of automation. Studies that are referred to the relation between the Industry 4.0 and the income inequality are that of Acemoglu [11], Barro [12], Krueger [13], Krusell et al. [14], Hornstein et al. [15], Berman et al. [16], Card and DiNardo [17], Huber and Stephens [18], and Benioff [19], which argue that technological changes affect income distribution and deepen the gap between high and low-skilled workforce concluding that the income inequality gap expansion is due to the technological crises that can disproportionately increase the demand for capital and drive to a great job loss due to automation. Birdsall [20] in his study supports that the technological progress increases the "skill bonus" and replaces low-skill workers, deepening in this way the inequality. Papageorgiou et al. [21] conclude that variables such as technological development, access to education, sectorial employment rates, and national economic growth are deterministic for inequality in low- and high-income countries. In these variables, the International Labor Organization adds the technological change, the globalization, and the reduction of social welfare as key factors for widening income inequality. An alternative point of view is that of Goldin and Katz [22] according to which income inequality is mainly explained by changes in education rather than shifts in technology. In her study, A. Guscina [23] argues that during the period of pre-globalization (pre-IT period), technological progress enforced labor reducing the income inequality, while in the post-globalization period, technological progress enforced capital increasing in this way the inequality. According to the Deloitte Global report [24], the adoption of emerging technologies as artificial intelligence in countries such as India, South Africa, and China may drive to social turmoil and increase income inequality in the future. These countries

**8**

**Figure 4.**

*Share of workers at high automation risk by income level.*

### **Figure 5.**

*Potential impact of job automation across workers by education level.*

World Economic Forum, only 24% of the IT and communication sector workforce is female. McKinsey [8] in its report underlines that this fact constitutes a real business threat since companies with a higher percentage of women in managerial positions tend to perform better. Women's thinking encourages creativity and innovation and promotes the interaction between technology and society contributing to technological progress. Governments must work in the direction of addressing the gender gap by emphasizing to the female creative thinking and encouraging their active participation to the innovation processes through IT and STEM programs that will help them to become more competitive in labor market and will promote their social mobility. The protection of women's rights and the ensuring of equal opportunities for women in all countries, such as their unobstructed access to quality education, are prerequisites in order for the authorities to effectively deal with gender gap worldwide. **Figure 5**<sup>6</sup> captures the relation between both the educational level and the gender of employees with their exposure to the risk of automation. As it was previously highlighted, people with lower education are the most exposed to the risk of automation, while highly educated employees are the most protected ones. An interesting point in **Figure 5** is that as the automation replaces the manual work, low- and medium-educated men tend to be more exposed to automation than low- and medium-educated women, while highly educated women are constantly more exposed to automation than highly educated men but less exposed than people of low and medium education.

There are also severe legal reasons that oblige authorities to follow strict policies so as to reduce the negative consequences of Fourth Industrial Revolution for people. The transparency and the cyber security must be priorities for governments. The wide use of Internet and the increasing use of social media create the need for protection against internet bullying and personality insulting. Moreover, the great volume of personal data that is currently being collected by companies in return for providing zero-cost services obliges authorities to create strict laws and regulations that will prevent possible violations of citizens' personal data and their use in a malicious way and will protect individuals' personality. Concerning transparency,

**11**

*Fourth Industrial Revolution: Opportunities, Challenges, and Proposed Policies*

digital portals and accountability mechanisms for combating corruption may support governments' efforts and increase confidence in the governmental work. Another legal reason that requires governmental intervention is the use of new technologies for illegal activities, for example, the use of blockchain technologies for speculation purposes has been proven prone to failures and may drive to a great financial uncertainty. The use of models for secure and legal online payments and transactions and the use of new technologies for creating new, flexible, and secure service systems are crucial policies for ensuring the legality of online transactions

The Fourth Industrial Revolution may also affect the nature of national and international security. Conflicts and wars in the new age will mainly become "hybrid" with the threat of a nuclear or chemical conflict being visible. The use of nuclear and chemical weapons in a conflict among countries requires special attention by national governments since it may cause mass destruction of populations and condemn next generations. States must proceed to strict agreements and apply the appropriate legislation in order to protect their people from the unpredictable consequences (and a probable irreversible damage) that a possible misuse of new

For all the above reasons, the need for cooperation among countries, at European and at international level, becomes crucial. Besides the security issues that demand the European and international collaboration in order to be addressed, such collaborations may also help countries to overcome financial and managerial difficulties that may arise at national level. The lack of interest for research and development projects by private sector (because of their great risk), the insufficient public and private funding for development projects with great social returns (because of the budget constraints), and the large funding gap in infrastructure with significant social and financial returns are important issues with which national governments may be called to deal. The coordination of national policies allows a more effective diffusion of knowledge and best practices and a more efficient use of digital innovations and country-specific business models. In this direction, governments could use new technologies to (i) promote organization and collaboration programs among businesses for information and practices' exchanging so as to increase their productivity, competitiveness, and exports, (ii) support the cooperation with European and International Institutions for funding research and development projects in all Member States, and (iii) promote the creation of forums and pan-European and international platforms so as to ensure that useful policy tools and best practices are

*DOI: http://dx.doi.org/10.5772/intechopen.90412*

and improving citizens' service in a safe and legal way.

technologies may cause on their lives and on ecosystems.

identified, collected, exchanged, and disseminated to all countries.

Another major problem that may become more severe due to the Fourth Industrial Revolution is the climate change. Many studies have shown that the economic growth and the technological development contribute significantly to the climate change. The new species such as the drought-resistant vegetables and fruits and the new ecosystems that are created in order to deal with severe problems like hunger are up to a point helpful, but they may also affect humanity in an unpredictable and undesirable way. This fact in combination with the increasing extreme weather phenomena and the natural disasters that threaten human life (with the poorest areas to be more affected) obliges governments to take action in order to deal with climate change, sets limits in technological progress when this disturbs the environmental balance and threatens human life, and promotes the energy autonomy. In this direction, governments must use the new technologies as a tool in order to develop the appropriate policies, focusing on (i) programs and algorithms for prediction of extreme weather and climate phenomena, (ii) digital alert systems that improves the adaptability of countries to possible natural disasters, (iii) the adoption of new forms of affordable and "clean" energy such as the

<sup>6</sup> See [5, 7].

### *Fourth Industrial Revolution: Opportunities, Challenges, and Proposed Policies DOI: http://dx.doi.org/10.5772/intechopen.90412*

digital portals and accountability mechanisms for combating corruption may support governments' efforts and increase confidence in the governmental work. Another legal reason that requires governmental intervention is the use of new technologies for illegal activities, for example, the use of blockchain technologies for speculation purposes has been proven prone to failures and may drive to a great financial uncertainty. The use of models for secure and legal online payments and transactions and the use of new technologies for creating new, flexible, and secure service systems are crucial policies for ensuring the legality of online transactions and improving citizens' service in a safe and legal way.

The Fourth Industrial Revolution may also affect the nature of national and international security. Conflicts and wars in the new age will mainly become "hybrid" with the threat of a nuclear or chemical conflict being visible. The use of nuclear and chemical weapons in a conflict among countries requires special attention by national governments since it may cause mass destruction of populations and condemn next generations. States must proceed to strict agreements and apply the appropriate legislation in order to protect their people from the unpredictable consequences (and a probable irreversible damage) that a possible misuse of new technologies may cause on their lives and on ecosystems.

For all the above reasons, the need for cooperation among countries, at European and at international level, becomes crucial. Besides the security issues that demand the European and international collaboration in order to be addressed, such collaborations may also help countries to overcome financial and managerial difficulties that may arise at national level. The lack of interest for research and development projects by private sector (because of their great risk), the insufficient public and private funding for development projects with great social returns (because of the budget constraints), and the large funding gap in infrastructure with significant social and financial returns are important issues with which national governments may be called to deal. The coordination of national policies allows a more effective diffusion of knowledge and best practices and a more efficient use of digital innovations and country-specific business models. In this direction, governments could use new technologies to (i) promote organization and collaboration programs among businesses for information and practices' exchanging so as to increase their productivity, competitiveness, and exports, (ii) support the cooperation with European and International Institutions for funding research and development projects in all Member States, and (iii) promote the creation of forums and pan-European and international platforms so as to ensure that useful policy tools and best practices are identified, collected, exchanged, and disseminated to all countries.

Another major problem that may become more severe due to the Fourth Industrial Revolution is the climate change. Many studies have shown that the economic growth and the technological development contribute significantly to the climate change. The new species such as the drought-resistant vegetables and fruits and the new ecosystems that are created in order to deal with severe problems like hunger are up to a point helpful, but they may also affect humanity in an unpredictable and undesirable way. This fact in combination with the increasing extreme weather phenomena and the natural disasters that threaten human life (with the poorest areas to be more affected) obliges governments to take action in order to deal with climate change, sets limits in technological progress when this disturbs the environmental balance and threatens human life, and promotes the energy autonomy. In this direction, governments must use the new technologies as a tool in order to develop the appropriate policies, focusing on (i) programs and algorithms for prediction of extreme weather and climate phenomena, (ii) digital alert systems that improves the adaptability of countries to possible natural disasters, (iii) the adoption of new forms of affordable and "clean" energy such as the

*Industrial Robotics - New Paradigms*

World Economic Forum, only 24% of the IT and communication sector workforce is female. McKinsey [8] in its report underlines that this fact constitutes a real business threat since companies with a higher percentage of women in managerial positions tend to perform better. Women's thinking encourages creativity and innovation and promotes the interaction between technology and society contributing to technological progress. Governments must work in the direction of addressing the gender gap by emphasizing to the female creative thinking and encouraging their active participation to the innovation processes through IT and STEM programs that will help them to become more competitive in labor market and will promote their social mobility. The protection of women's rights and the ensuring of equal opportunities for women in all countries, such as their unobstructed access to quality education, are prerequisites in order for the authorities to

both the educational level and the gender of employees with their exposure to the risk of automation. As it was previously highlighted, people with lower education are the most exposed to the risk of automation, while highly educated employees are the most protected ones. An interesting point in **Figure 5** is that as the automation replaces the manual work, low- and medium-educated men tend to be more exposed to automation than low- and medium-educated women, while highly educated women are constantly more exposed to automation than highly educated

There are also severe legal reasons that oblige authorities to follow strict policies so as to reduce the negative consequences of Fourth Industrial Revolution for people. The transparency and the cyber security must be priorities for governments. The wide use of Internet and the increasing use of social media create the need for protection against internet bullying and personality insulting. Moreover, the great volume of personal data that is currently being collected by companies in return for providing zero-cost services obliges authorities to create strict laws and regulations that will prevent possible violations of citizens' personal data and their use in a malicious way and will protect individuals' personality. Concerning transparency,

captures the relation between

effectively deal with gender gap worldwide. **Figure 5**<sup>6</sup>

*Potential impact of job automation across workers by education level.*

men but less exposed than people of low and medium education.

**10**

<sup>6</sup> See [5, 7].

**Figure 5.**

renewable sources of energy (wind, wave, solar) that may help countries to ensure their energy autonomy, (iv) sustainable industrialization and sustainable production infrastructure, (v) programs to promote the careful and sustainable use of terrestrial and marine ecosystems, (vi) the protection and sustainable use of forests, (vii) the protection and sustainable use of oceans and other water resources, (viii) the fight against desertification, and (ix) the protection of biodiversity.
