Global - Digital Economy - The Political and Economic Fallout


Archived report. The digital economy is having an enormous impact on the political and economic landscape and indeed the overall global society. The explosion in the use of smart technologies means that we can increase our productivity and, in general, that work can be carried out by fewer people, especially in the well-developed economies. At the same time people in other parts of the world can now also participate in the more developed economies through the use of technology - and they can do so from a significantly lower cost base.

The digital economy is creating a completely new dynamic around the world and as we have seen with other highly disruptive developments in the past - such changes have shaped the future of the human race. And this will continue to be the way human endeavour operates, so in one way or another it will be new smart tools and education that will advance our society.

All round the world we are seeing massive social changes in the way people interact with their leaders and with their political elite. In many cases governments and politicians seem to be behaving as though they are immune to the changes that are following on from these new grassroots-based democratic processes.

This report explores the fallout from digital economy and the impact it is having in terms of the political environment, the overall economy and society. It provides insights into telecommunications in regards to political spying; the effect of smart technologies on employment and poverty and how the digital economy has resulted in the overall dynamics changing for government and citizens around the world.

Latest developments:

The recent spy scandals are placing a further strain on the people-politician relationship. People might not react strongly to the issue but the spying situation will most certainly make them more wary of their governments. They will be more guarded towards them, and less trusting. This is, of course, further undermining the status of politics and politicians.

Table of Contents

  • 1. Synopsis
  • 2. Smarter tools, fewer jobs – how to address this conundrum?
    • 2.1 Strong political leadership is needed
    • 2.2 How smart tools can help
    • 2.3 But still fewer jobs
  • 3. Economic and social transformation
    • 3.1 The impact on the economy
    • 3.2 Technology fights against extreme poverty
    • 3.3 Is ICT the panacea for global development?
  • 4. Internet is transforming governments and politics
    • 4.1 People-power needs to be taken seriously
    • 4.2 People are often more sophisticated than their politicians
    • 4.3 You can dumb down politics and media, but not people
  • 5. Spy scandal further alienates people from their politicians
    • 5.1 Telecoms as a spying tool
  • 6. Transformation of the UN and other international bodies
  • 7. Related reports
  • Exhibit 1 – Key applications of a digital economy
  • Exhibit 2 - Government sector reform
  • Exhibit 3 - Trans-sector vs. Cross-sector

Related Reports

Focus Report Profile


Digital Economy
Regulations & Government Policies
Smart Infrastructure
Strategies & Analyses (Industry & Markets)

Number of pages 12

Status Archived

Last updated 23 Feb 2015
Update History

Analyst: Paul Budde

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