Expert opinions

Shen Yi: Digital divide will increase the gap between the rich and poor

Shen Yi, Director of the Center for BRICS Studies, Fudan University, is taking part in the Gaidar Forum in Moscow organized by the Russian Presidential Academy of National Economy and Public Administration. On the sidelines of the event, Invest Foresight asked him about the problems which may be awaiting global economy.

Shen Yi, Director of the Center for BRICS Studies, Fudan University, is taking part in the Gaidar Forum in Moscow organized by the Russian Presidential Academy of National Economy and Public Administration. On the sidelines of the event, Invest Foresight asked him about the problems which may be awaiting global economy.

“Generally speaking, I think the main challenge toward global economic development in 2020 is a kind of mixed risk: the mix of uncertainties that comes from technical, geopolitical and societal aspects,” Mr Yi said. “Firstly, the vivid development of new technology represented by 5G, AI and other leading ICT have produced new digital divide internationally and domestically. In the world, the digital divide means the underdeveloped countries have much more difficulties to catch up with the development unless they get sufficient and effective development assistance. Inside the country, the digital divide will increase the gap between the rich and poor which finally will lead to the instability of the society.”

“Secondly, the rising uncertainty of geopolitical elements worsens the environment which is very important for the development of the world. The biggest challenge in today’s world is the relative decline of hegemony and such kind of decline is rooted in the failure of the practice of neo-liberalism since late 1980s. The real mission is to build a new domestic governance system which could provide a more equal order inside the developed countries, but the rising of so called populism leader just provides another option: take advantage of hegemonic position to get extra profits from its partners and become less responsible at the cost of damaging the trust and confidence of international institutions,” Shen Yi noted. “Thirdly, the vivid development of ICTs empowered individuals all around the world and deeply changed the capacity structure which is very important to the stability, trust and sustainability of the society.”

“If we want to convert all these into opportunities, the main task is to shape a new structure of leadership. All these challenges could not be answered by a single state, it also could not be easily solved via a minority group of states. We need to shape a new structure of leadership in which all countries all around the world could have their own positions, and the great powers should have enough willingness to accept more responsibility and give extra benefits to those countries which are in need. Such kind of new structure of leadership will help the world a lot to counter all the risks mentioned above,” Mr Yi concluded.

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