Thomas Piketty is a French economist who is Professor of Economics at the School for Advanced Studies in the Social Sciences, Associate Chair at the Paris School of Economics and Centennial Professor of Economics in the International Inequalities Institute at the London School of Economics. World Bank, 2016: World development report 2016: Digital dividends. Thomas Piketty alludes to Revolution not as a means of overthrowing the owners of power and production but perhaps in a sociological sense Marx hedged on a worst case scenario for developing society; that there are a wider set of cards that can be played. What is the potential Impact of the Digital Divide The current trend of development, especially in the area of information and communication technology (ICT) has resulted in essential changes in many areas of life and societies on the global platform (Monroe, 2004). Human labour is being replaced by machines and algorithms. The most favoured receive about 7 times more than the least favoured, compared to 21 times in Mexico, 19 times in the United States and 10 times in the United Kingdom. Sandy Pentland (2014) from Media Lab of the Massachusetts Institute of Technology (MIT) has pointed out that too much virtual social interaction reduces productivity. Income redistribution alone will not do. digital divides and explains some of the problems developed economies faces in overcoming these divides. This was considered contentious, for those of us who research global processes. One of Piketty’s main arguments can best be coined through reference to his simple macroeconomic equation r > g. Piketty argues that inequality increases when the return on capital (r) exceeds the rate of economic growth (g) in society. Face-to-face interaction of people with different backgrounds and knowledge is as important as ever. Summaries of trends, conferences, studies and wiki-like briefs. But, Piketty argues that these conditions fostering lower inequality are coming to an end, not least in the US and Europe, with demographic slowdown and slower growth. In practice, they need to complement one another in order to foster sustainable development (Hartmann 2014). But, this effect is seen as declining as part of the declining g. So, this position questions the centrality often placed on innovation and technology. Picketty’s work on inequality resonates with messages of global “Occupy” and 1% protests. However, he also admits that such a tax is impossible to implement today because it would require 2020. Thomas Piketty’s book (2014) about inequality in the 21st century shows that the capital gains the top 10 % earn are systematically rising faster than wages. http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf. How economic diversification and social networks affect human agency and welfare. OK, book done, back from recuperative holiday, time to get back to daily blogging. What of the growing cross-national links, networks of production, tax havens and financial flows? Our resident economist Grant highlighted certain points of contention in Piketty’s data, particularly around the numbers reported on UK inequality over the previous decades (and seeming divergence from the generally peer accepted “Atkinson’s model”) as well as US inequality (seemingly based on figures that are renowned to be questionable amongst economists). All too often, discussions on technology, economic growth and social development stay isolated from one another. Because when return on capital exceeds growth then in general society becomes more unequal. Renzo Lucioni (2013) and other researchers have shed light on political polarisation in the US. For me the figures presented here are astonishing, and highlight contrasting societal level. en technological change have been a key factor influencing the distribution of capital income, technology-driven transformations in the world of work have been Digital literacy is deeply entwined with the notion of digital divides. Indeed, this book is notable in that all the data and calculations have been shared online, providing the ability for others to explore and extend his arguments. Frey, C. B. and Osborne, M. A., 2013: The future of employment: How susceptible are jobs to computerisation. Inequality at the top 10% and 1% needs to be considers, and this is often overlooked in research analysis which is often fixated on comparatively small redistributions between the bottom 10 or 20%. New York: Simon & Schuster. New York: Penguin Press. Thanks and best wishes, ICTs have the potential to help reduce inequality both within and between countries by enabling access to information and knowledge to disadvantaged segments of society – including those living with disabilities, as well as women and girls. What is the Digital Divide? Van Dijk, Jan A. G. M. 2012. Interdisciplinary approaches are needed to rise to these complex challenges. Frey, C. B. and Osborne, M. A., 2013: The future of employment: How susceptible are jobs to computerisation. The age of intelligent machines and digitisation offers new opportunities, but is also likely to exacerbate global inequality. Daily life in developing countries (published on Mondays). On the issue of power sharing in firms, Piketty proposes a 50-50 split between workers and shareholders, like in Germany today. do You know our newsletter? In addition to the trend of capital accumulation that Piketty describes, another trend is likely to drive inequality further: the next wave of significant structural change has started thanks to intelligent machines and digitalisation. It’ll keep you briefed on what we publish. We had a number of debates relating to the kind of data Piketty draws on and problems arising from combining such homogeneous datasets. On the upside, it is inspiring hope that there are several new initiatives aimed at integrating different perspectives and advancing interdisciplinary learning (see box). Development Goals for health, education, wellbeing and security or as put by Thomas Piketty (2014),* the challenges of inequality*. • Social development responses to global challenges: pandemics, migration, racial injustice, the digital divide, and economic crises • Social Development responses to Climate Change and Environmental challenges • Inequality, gender and social inclusion • Youth transitions to education, employment, civic engagement and livelihoods 2019;4(1). Ci-après en huit points et en résumé les points saillants traités par Thomas Piketty à Rabat : 1- Parmi les différentes formes des « régimes inégalitaires » qui ont existé dans l’Histoire on cite les régimes ternaires où la population est séparée en trois classes : dirigeants guerriers, clergé et travailleurs, le régime propriétaire, où règne l’idéologie de la propriété privée, le régime esclavagiste puis régime colonial. Piketty, T., 2014: Capital in the twenty-first century. In the wake of the Financial Times vs. Piketty debate, we discussed some of Piketty’s figures, particularly those presented in Chapter 10. Piketty (2014), for example, proposes a progressive global tax on wealth of up to 2 %, and additional income taxes. Earlier this month I headed off for the London launch of the 2016 World Development Report, ‘Digital Dividends’. Brynjolfsson, E., and McAfee, A., 2014: The second machine age. Innovative interdisciplinary approaches are needed. Lanier, J., 2014: Who owns the future. International Journal of Translational Medical Research and Public Health. How ideas spread – the lessons from a new science. In recent decades, the widespread use of computers and the Internet has caused a – GES blog – Finding Solutions. This group aims to understand the differences that ICTs and changing connectivities make at the world’s economic peripheries; to uncover who the winners and losers; and to critically consider what ‘development’ is, and should be, in a hyper-connected age. IOS Press Ebooks. Detailed assessments of developmental issues in the relevant context. Social media often become echo chambers that repeat the same information over and over again. As such, he challenges the idea of the Kutznets Curve. Together, Geographies of Information Inequality in Sub-Saharan Africa. Comments and interviews concerning globally relevant developments (published on Fridays). The concern is that people without access to the Internet and other information and communication technologies will be disadvantaged, as they are unable or less able to obtain digital infor Decentralised digital identity: what is it, and what does it mean for marginalised populations? Why is this important? This concept explains the speed of information appropriation by different populations. Without the former, the latter will persist. In Capital in the Twenty-First Century, Thomas Piketty picks out inherited money as a driver… The digital economy is no leveller, it's a source of inequality Menu Close Sustainable development requires global awareness and local action. After the 1950s we see Piketty’s U shape: the idea that development will lead to a decrease in inequality does not hold. Thomas Piketty’s book (2014) about inequality in the 21st century shows that the capital gains the top 10 % earn are systematically rising faster than wages. 2014). The so-called “digital divide” debate was starting and it was, as Srinuan and Bohlin (2011) note in their literature survey, characterised by a dichotomous and technology-led view. They showed that whereas Republicans and Democrats often cast the same votes in the US Senate in 1989, that has become ever rarer, and hardly happened at all in 2013. New York: Routledge Studies in Development Economics. http://www.economist.com/news/united-states/21591190-united-states-amoeba. Indeed modern transformations of society, from the growth of internet, to high speed computing and other technologies are almost ignored and this needs more explanation. Of course, these debates of data are only a narrow part of a wide ranging and comprehensive narrative, and I argued that his wider thesis should not be discounted based upon a few debatable data points. Current discourse in the digital divide field have focused on the roles which technology access and usage play in achieving economic well-being in the developing countries. Digitalisation permeates every aspect of life. Lucioni, R., 2013: United States of Amoeba Social media and personalised search engines may also contribute to deepen ideological divides. However, they also open up new opportunities. Implicitly we might read the high g, the economic growth in the past century to have come from the radical mechanisation and information developments. Most frequently, income and income inequality are used as predictors to explain dimensions of digital divides in cross-sectional data (Fuchs, 2009, Hernandez et al., 2016, Zickuhr and Smith, 2013). the super-rich may be a way to decrease inequality and raise funds for the state. Piketty’s distribution tables (click for full size): inequality in terms of ownership (above) and income (below). Piketty's work focuses on public economics, in particular income and wealth inequality. Innovative approaches are needed to facilitate the active participation – and fair compensation – of people who do not belong to the small core of ambitious, well educated, technological and financial elites in the digital revolution. Drawing on analyses of tax and estate tax return data, and illustrating his points with references to popular fictional characters of Austin and Balzac novels, he argues that contemporary and future society is in risk of returning to inequality levels of previous centuries. We are delighted to publish this guest blog from Massimo Ragnedda (PhD) who is a Senior Lecturer in Mass Communication at Northumbria University, Newcastle, UK where he conducts research on the digital divide and social media. Pentland, A., 2014: Social physics. Please register, and you will get it every month. Rogers defines the digital divide as “the gap between individuals who benefit from the internet and those who are relatively disadvantaged with regards to the internet” and relates it to the concept of intellectual capital and the knowledge divide. From a policy-maker's perspective, digital literacy allows the members of a society to partake in the opportunities provided by its intellectual wealth, and would ostensibly lead to more sustainable growth and development.