The 4th International Seville Conference on Future-Oriented Technology Analysis (FTA): 12 & 13 May 2011 FTA and Grand Societal Challenges: Shaping and Driving Structural and Systemic Transformations The Perfect Storm Authors: Sponsors: Type: Geographic Coverage: Scope: Applied Methods: Evaluation: Impacts: Organiser: Duration: Keywords: Peter Plougmann Ivar Moltke email address: pp@newinsight.dk email address: Ivar@create.dk New Insight A/S and a number of private Danish clients Europe, Denmark Alternative scenarios Scenarios To soon to say Avoiding disaster and utilizing endless new social opportunities New Insight, Region Zealand 2010Budget: Time Horizon: 20y Date of Brief: 02.04.2010 “The Perfect storm”, quality of life, artificial intelligence, global competition, global warming, scarce resources, new opportunities, new social navigation skills Purpose Please join us in this early warning FTA research in order to find ways around the “Perfect Storm” when aged society, global warming, artificial intelligence are finally coming of age, and harsh global competition about food, water, oil disrupt the European economies and societies. How can we navigate these fast growing threats and can we even turn them into opportunities. Can aged society provide us with wisdom and new medicine, can global warming be an opportunity for farming, can artificial intelligence and robots provide us more intelligent solution, can the 3rd world be the emerging market and can new values change focus from consumption to quality of life. Background & Context by the current generation of politicians, even if these politicians can initiate trade conflicts, financial crises and even wars making the future conditions for counteracting the impact of the “Perfect Storm” even worse. We live in a time of great disruptions. In many ways we are fast approaching a “Perfect Storm”. All the strong drivers of disruption: globalization, demography, climate crisis, Moore's law and the increasing competition for global resources are gathering force simultaneously and exponentially. These drivers are also to a large degree independent of actions taken This is not a temporary crisis. Returning to business as usual in the western societies will lead to growing public expenses, fewer taxpayers, growing debt, increasing inequality, runaway global warming. But what are the alternatives, and how can they be implemented in due time? Page 1 of 4 <Title>: This project has to a large degree been expert-driven but the basic ideas and line of thinking have been integrated and tested in a number of client-financed projects conducted by the authors. Some of these projects are related to investigation of the future of growth and job creation in Denmark. A large number of one-day sessions involving top managers from the private sector have also contributed to the line of thinking presented in this brief. Thus, the projects have so far involved hundreds of participants from all kinds of stakeholders relevant to the issue at hand. Other projects have dealt with the dilemmas of developing the health care sector of the 21st century. And other projects have been concerned about involving citizens in social innovation, DIY-ICT-solutions and the future of the construction industry, and also of the future of publicprivate cooperation for delivering the public services of the future. As it might be expected a multidisciplinary approach was used and both a top-down and a bottom-up approach have been applied. FTA Process Einstein once said a problem cannot be solved within the paradigm that created it. This FTA challenges the very paradigm of post-Friedman political economy. It can be regarded as a wildcard scenario. Most FTAs are based on assumptions of the production of workers and income tax. But what if these assumptions are flooded by a tsunami of artificial intelligence and robots? Most FTAs are based on the concept of consumption but what if outsourcing, public tax policy favouring the upper classes and casino economy disrupts the distribution of and reduces the level of the average income? A growing number of FTAs acknowledge that resources are not unlimited but what happens to the planet when the majority of people living in emerging markets approaches the EU and US levels of standard of living and consumption? Business as usual is a highly unlikely scenario, yet all government planning, education, investments etc. are based on a business as usual assumption. We need to challenges this assumption. This FTA process is using innovation tools to investigate wild card scenarios outside the paradigm of Reaganomics like: Jobs seem to disappear in Europe, either moving out to low cost countries or being automated in a 20 year perspective. Is there an alternative to this development? We do not accept the idea that knowledge work will take over. There is a winner takes all development in science, in art, in sports, everywhere. So what is the alternative? Assuming that the automated production of goods and services are as plentiful as now, how do we make the owners share their wealth with all the people on public welfare? In Denmark the number of companies paying tax has declined from 60 per cent to 24 per cent and next to no transnational companies pay any tax at all. So what happens with the public welfare system when we end up with very few employees and no company tax? Page 2 of 4 Will the aging society be a problem in a society where most people are on public welfare because the jobs are outsourced or automated? Can a society where most people are semi- or fully retired survive? Will there indeed be any pension? The pension system depends on stability. When the Soviet Union collapsed, the pension systems collapsed, millions fell into poverty and thousands died prematurely. The capacity of the national health care system is increasingly utilized by people with chronic illness. Imagine if they could be cured with stem cells and gene therapy. Why would anybody talk about retirement age if old people were healthy and active? Maybe radiologist job is easier to automate than a taxi driver’s job. Maybe almost all jobs are easy to automate in 20 years. This year a computer won over the world champion in Jeopardy. A decade earlier a computer won over the world champion in chess. Kurtzweil has focused on when computers overtake human intelligence in some 20 years. But with smartphones always on, the question is when mainframes will overtake human intelligence? Maybe Google already has above human intelligence. A job is both about income distribution and about recognition for contribution. If we are all on welfare, we need to invent other ways of contributing. Would it be possible to have a type of gift economy rather than a money economy? Imagine if we could measure quality of life. Quantify it, share, distribute and trade it like money, yet it was not money. Because it grew from being shared. Imagine that the ministry of finance was a ministry for quality of life. Imagine if quality of life was the measuring stick. Would people want the expensive things or would they choose differently? What would than mean to nature, environment and global warming. What will happen to private property and intellectual property in a winner takes all economy. Why should the 99.9 per cent pay and respect the 0.1 per cent owners? <Title>: What will happen to us when computers outsmart us? These are not very comforting thoughts in a winner takes all culture. The next challenge is to imagine how such a wild card scenario could emerge. What would make people choose the wild card alternative and how could it survive in an open global competition: Together the public employees, those on pension and those on welfare in Denmark are already close to being the majority of the voters, and this is soon to be in most EU countries. What happens when those on pension and welfare is a majority? Maybe a scenario with everybody on welfare could win the election. Maybe it already has. 2 per cent of the population produces all the food, 10 per cent all the industrial goods. Is that a real problem or an opportunity for “how to share the wealth problem”? Could we imagine a society where all production of food, goods and even services are automated? If we cannot, we might better get started. What if artificial intelligence is better and safer than human intelligence? Who would not prefer a safe robot to a bored or distracted, inadequate skilled human. Who would not prefer stem cells and eternal youth to hospitalization and premature death? Who would not trade wealth to improve quality of life and happiness? So what about the economy? Are such experiments possible in an open global economy? The problem is of course that the owners will not share their wealth. Or will they? Bill Gates donates billions to fight diseases and he is not the only one. Open source Linux environment is for free. When the economy becomes even more virtual, the free goods become more plentiful and maybe the hacker community rules. Music, movies, games and books are hacked for free. Is the knowledge society over even before it started? We combine these wild cards into scenarios such as: Business as usual, a 0-2 per cent more GNP every year vision. Kurzweil’s singularity scenario where computers get smarter than humans in 20 years. A “global warming and limits to growth” scenario where we are all forced to reduce consumption because the supply is running out or because global warming is happening much faster than anticipated (it already is). A human centred quality of life scenario where all economical and legal incentives are optimizing quality of life. A society where age is irrelevant, where emotional intelligence, competence, empathy rules and illness is the only excuse not to contribute. It would be exciting to test these scenarios in some small scale proof of concept experiment to validate the functionality of the scenarios. And it would be particularly exiting to conduct these experiments and prototypes in different European countries to monitor the effect of different cultures and traditions. The profound change of society demands this profound change of mindset and values. If we keep to GDP growth as our yard stick for measuring progress we are also stuck with the present society. There is a great difference between economic growth and the progress of human civilization. Output & Impacts We are running out of time. Empires expire. The British and French empires expired 60 years ago, and the Soviet empire expired 20 years ago. The American empire will also expire and in Europe our ability to generate extra profits and wealth will expire with that as well unless we redefine ourselves and stop being empires entitled to wealth and glory. The success indicator is that we can even imagine a functional alternative to the present society and a roadmap to this new way of living. If we change our mindset from empire thinking to network thinking, from atoms to bits, from property to open source and from money to quality of life things, will be all different. The roadmap would also create the foundation for developing the “navigation skills” of our European youth, making them able to turn the threats of the Perfect Storm into new opportunities for the open society of this exciting century. New Metrics We need a new clock counting change of performance or even improvement rather than minutes. Moore’s law states that the performance of a computer doubles every 18 month. How fast does the performance of a car or a house or a person double. We tend to agree than an hour is an hour and a year is a year. Page 3 of 4 <Title>: Imagine clocks with different speeds depending on speed of development. We want to explore the potential of a different time measure in scenario works and timelines. Being powerful is using power and energy. VIPs use all kinds of resources almost without limit (like private jets etc.). If the mindset was changed from hierarchy to network, the ones with the most and best friends would be better off than the current powerful VIPs using power and resources. He might actually already be. What will the impact of such a change be on the housing markets for instance? Most likely it will lead to a new neighbourhood and new urbanism and it could lead to abandoning suburbs and villas. If things produced by automated robots become almost free, particularly when the robots produce the robots, then human empathy will be among the few things in short supply. Maybe that will lead to a change in our concept of education. Why would anybody take a university degree in radiology if computers are already better reading the scans? Why would we educate kids with multiple choice tests and PISA tests if an internet-connected cell phone is better at Jeopardy already? The term "making money" is absurd. If we limited the magic of money by removing their capacity to breed, things might change. If money were only a media for exchange instead of means for creating artificial fortune out of nothing, things would change. We could keep the benefits of the market place without banks and derivates and speculation and gambling. Exit casino economy. The financial break down showed us that economy without control is economy out of control. Outcome & Evaluation This project is really only in a preliminary phase. Investigating the potential impact of changing a paradigm is not an easy task and we need a lot of strong partners to do this research. However, a number of the client-based projects mentioned have been finalised or are in the process of being concluded. Based on the preliminary evaluations and feedback, we already are pretty sure we are on to something. One close partner of the authors (Peter Hesseldahl) has already published a book investigating some of the basic ideas presented in this brief (“Grib Fremtiden” in Danish, but to be translated into English soon). For further information contact: Peter Plougmann, managing director of New Insight A/S Email: pp@newinsight.dk Tel.: +45 33 69 13 01 Page 4 of 4