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Tumbagahan, Megie Boy D. 09/11/2021

CRIM 2-1 The Contemporary World

Issues of Global Economy

Activity no. 3

: Impact of new technologies

As the saying says technology is intertwined with
human evolution, whereas it also integrates and
evolves through time. Moreover, in today’s society as a
nineteen-year-old young adult, I observed how it
flourish and cultivate which happen became prominent
in today’s society. Most nations and emerging markets
nowadays especially amidst this pandemic have
credited technological innovation as one of the reasons
driving their economies. Almost every industry,
including medical, health, transportation,
communication, entertainment, and manufacturing, is
heavily reliant on modern technology.
Furthermore, according to Adam Sounders (2021),
Technology has always fuelled economic expansion,
raised living standards, and offered doors to new and
better jobs. For instance, self-driving cars; are the
result of recent developments in artificial intelligence
and machine learning, which signal the start of seismic upheaval in the world as we know it.
From this, lots of opportunities also open up for us, humans. Say, for instance, online selling
and online businesses which are prominent nowadays. It was brought and opened because of
the presence of technologies that we had today (Freeman, 2010). However, for the reason also
of these modern goods and services render earlier technologies in emerging countries outdated,
this importation results in employment losses. As a result of this tendency, jobs are being
created in rich countries while employees are being lost in underdeveloped countries. As a
result, rich countries tend to grow while poor countries decrease, expanding the gap between
them even further.
Also, one of the negative impacts of new technology is it also affects the rate of
unemployment. Due to increased automation in the production of some companies, the
development and adoption of digital technologies may lead to significant unemployment in
numerous. According to Joon Kim et al. (2017), recent technology advancements in big data,
machine learning, and robotics have started to have a negative impact on human employment
chance, which resulted that, rather than higher education, the use of digital technology
increased the demand for new skills.

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To sum it up, in most countries, technology is an obvious engine of economic growth. On the
one hand, it produces jobs and destroys it at the same time. The unfortunate reality is that jobs
are mostly produced for those with more wealth or fortunate in modern technologies while it
is eliminated for those with less. As more technical applications are adopted, such imbalances
have the effect of widening the disparity between the rich and the poor in society.

: The pandemic
January 22, 2020, the date where the first case of
COVID 19 was reported here in our country. It is mind-
blowing that everything not only in the Philippines has
changed and altered in a blink of an eye. The present
COVID-19 pandemic has impacted all of us. However,
depending on our status as individuals and as
members of society, the pandemic's impact and
repercussions are perceived differently. While some
people strive to adjust to working online, educating their
children, and ordering food with Gcash or through
apps, others are forced to get infected in order to keep
society running. Moreover, various sectors such as the
economy were also affected by this global pandemic.
Beyond the disease's spread and efforts to contain it,
the COVID-19 pandemic has had far-reaching
economic implications. Concerns have changed from
supply-side manufacturing challenges to decreased
business in the services sector as the SARS-CoV-2 infection has spread around the world.
Moreover, it was revealed by CNA (2020) that the virus triggered the second-largest global
recession in history, with more than a third of the world's population put under lockdown. In
addition, supply shortages affect a number of sectors during the early stages of the pandemic
due to panic buying, increased use of products to combat the virus, and disruption to
manufacturers and logistics.
On the other hand, Szmigiera (2020) revealed that while it is impossible to predict the exact
economic impact of the global COVID-19 coronavirus pandemic, analysts believe that it will
have significant negative consequences for the global economy. She also stated that most
major economies are expected to lose at least 2.9 percent of their GDP by 2020 if the virus
becomes a global pandemic, according to early projections. This prediction has previously been
revised to a 4.5 percent drop in GDP. To put this sum in context, global GDP in 2019 was
expected to be around 87.55 trillion US dollars, implying that a 4.5 percent reduction in
economic growth translates into nearly 3.94 trillion US dollars in lost economic production.
To sum it all, the pandemic itself causes drastic effects on the economy. And because of this, it
pushes us to be more creative in moving forward. An issue that makes us realized that
everything can be changed in a blink of an eye, even life throws you the most difficult situation

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Gov. D. Mangubat St., Brgy. Burol Main, City of Dasmariñas, Cavite 4114, Philippines
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`

in life; like what happens to our economy, you must stand up cause if there is a problem there is
always a solution.

References:
CNA (2020). Viral hysteria: Hong Kong panic buying sparks run on toilet paper. Retrieved from
https://www.channelnewsasia.com/asia/wuhan-coronavirus-hong-kong-panic-
buying-shortage-toilet-paper-775496

Freeman, R. (2010). Globalization of scientific and engineering talent: international mobility of

students, workers, and ideas and the world economy. Retrieved from https://w
ww.tandfonline.com/doi/abs/10.1080/10438590903432871
Joon Kim et al. (2017). The Rise of Technological Unemployment and its Implications on the
Future Macroeconomic Landscape. Retrieved from https://www.researchgate
.net/publication/312660641_The_Rise_of_Technological_Unemployment_and_it
s_Implications_on_the_Future_Macroeconomic_Landscape
Sounders, A. (2021). Technology’s Impact on Growth and Employment. Retrieved from https://w
ww.bbvaopenmind.com/en/articles/technology-s-impact-on-growth-and-
employment/
Szmigiera, M. (2020). Impact of the coronavirus pandemic on the global economy - Statistics &
Facts. Retrieved from https://www.statista.com/topics/6139/covid-19-impact-on-
the-global-economy/

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