Leaders suggest using tech to tackle outdated social systems, extreme inequality

Amid a raging debate on growing income inequality, leaders at the WEF summit on Friday said tax and welfare systems are "outdated" and not fit to tackle this challenge and a greater use of technology can be more effective.

They said technology has helped lift millions of people out of poverty in the world, but millions more have been left behind.

At a session on the closing day of the World Economic Forum Annual Meeting 2019, PwC International's Global Chairman Robert Moritz said many business leaders want to pay their "fair share" of tax and help reduce growing wealth inequalities in the world, but revenue collection systems are antiquated and open to manipulation and abuse.

The same is true of welfare systems, said Hilary Cottam, author and entrepreneur, Centre for the Fourth Social Revolution.

"The brilliant welfare systems that were set up in the last century no longer work," she said and suggested a "social revolution" to accompany the Fourth Industrial Revolution that digital technology has ushered in.

"In every industrial revolution there has been a social revolution, because every industrial revolution has created huge inequalities. All the different sectors of society must come together to help design an architecture that allows us to make the transitions required," Cottam noted.

Technology has helped lift millions of people out of poverty in the world, but millions more have been left behind and disparities between the ultra-wealthy few and the poor masses have grown, the panellists said.

Winnie Byanyima, Executive Director of Oxfam International, however, demanded that governments impose much higher taxes on companies and rich people.

"Extreme economic inequality is out of control," said Byanyima. "The wealth of the few very rich increases by USD 2.5 billion a day, while the wealth of the 3.8 billion poorest people in the world decreases by USD 500 million a day."
However, technology should not be used to underpin failing current systems, observed Cottam. "We can use tech to design new systems that address the challenges we face. But we need a revolution."