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2017 International Conference on Information and

Telecommunication Technologies and Radio Electronics (UkrMiCo)

September 11-17, 2017, Odessa, Ukraine

Industry 4.0 and Information Communication


Vorobiyenko Petro
O. S. Popov Odessa National Academy of Telecommunications
Odessa, Ukraine

Abstract – The main negative factors that are inherent to high priority for the survival of mankind and sustainable civi-
modern society are presented. A hypothesis has been put lization progress.
forward. It supposes that a number of fundamental factors
We refer here to the scientist-practitioner Ludwig
must be added to the basis of modern economics.
Erhard: "Under the previous order, there was, on one hand, a
Here are five factors that determine the paradigm of sus-
tainable development of society. very small upper stratum, which, in the sense of consumption,
could afford everything. But on the other hand, the lower stra-
Key words – sustainable development, factors, ICT, tum of the population was numerically very large, but pos-
transparent infocommunication environment sessing insufficiently high purchasing power ability. There-
fore, during the reorganization of our economic order, it was
necessary to create prerequisites for overcoming this disparate
Why did we touch upon this issue? social structure of the situation and, at the same time, for over-
First, the achievements in ICTs, i.e. in infocommuni- coming the hostility between the "rich" and the "poor"
cations and micro- and nanotechnologies, have caused the [1, p. 13-14].
third and fourth industrial revolutions. However, in the global dimension, inequality is only
Secondly, the Bologna Charter of Universities says: increasing.

Consider As for the shadow economy, this phenomenon, unfor-

tunately, is more or less typical for all countries. In the litera-
1. That at the approaching end of this millennium the ture, the problem of the shadow economy is investigated very
future of mankind depends largely on cultural, scientific and carefully, both in terms of substantiating the criteria for as-
technical development; and that this is built up in centres of sessing the level of the shadow economy, and from the point
culture, knowledge and research as represented by true univer- of view of its distribution in regions and dynamics in time
sities. [2,3,4].
Therefore, first of all, universities directly related to The most common criterion for assessing the level of
telecommunications and electronics should meet the challeng- the shadow economy is the ratio of the shadow economy to the
es that arise in the process of economic development and soci- gross domestic product (indicator SE / GDP). Table 1 [3] pre-
ety as a whole. These answers should concern both the current sents data from the study of the shadow economy of 28 Euro-
stage of development and the long-term perspective. pean countries for the period of 1999-2012. It can be seen
The present time is characterized by a permanent from the table that the largest average level of the shadow
economic crisis, military conflicts, increased terrorist threat, economy is observed in the countries of Eastern Europe (about
huge military expenditures, etc. Achievements in science are 30%), which in the late 80s started to create a market econo-
used to harm society. The reason for this is the existing ine- my. However, in the countries of Western Europe, the level of
quality between people and countries, significant level of the shadow economy is quite significant. More than 20% of
shadow economy, corruption, etc. the shadow economy compared to gross domestic product was
recorded in Portugal, Malta, Spain, Greece, Belgium, and Ita-
The situation is so serious that, according to the acad- ly. Not far away within the list there are such developed coun-
emician V.M. Heyets’ opinion, there is a threat to the exist- tries as Sweden - 17,4% Denmark - 16,4%, Germany - 15,2%.
ence of mankind [5]. In this regard, theoretical understanding As it is noted in [2], the level of the shadow economy for the
and practical solution to these problems are up-to-date and of period of 2003-2015 is variable: it is decreases, then increases.

978-1-5386-1056-5/17/$31.00 ©2017 IEEE

So the average level of the shadow economy for the The purpose of this work is to provide a brief histori-
28 European countries in 2003 was 22.6%, then it decreased to cal analysis of the development of economic relations and, on
19.6% in 2008, increased to 20.1% in 2009 and again de- the basis of it, to propose a new paradigm for the stable devel-
creased to 18.3% in 2015. opment of society.
Table 1 EU-28 rankings according to various shadow econo- ІІ. THE PARADIGM OF SUSTAINABLE
my indicators, average values over 1999-2012 DEVELOPMENT OF SOCIETY.
SE/GDP (%) SE/GDP rank Modern economic theory states that "Two fundamen-
Bulgaria 34.2 1 tal factors create the basis of economics and, in essence cover
Romania 31.5 2 the whole problem of the economy" [7].
Croatia 31.2 3 The first factor is this: the material needs of society,
Lithuania 31.0 4 that is, the material needs of its individuals and institutions,
Estonia 30.5 5 are literally unlimited or restless.
Latvia 28.3 6
Cyprus 27.8 7 The second factor is the, economic resources, the
Malta 27.0 8 means for the production of goods and services that are lim-
Poland 26.5 9 ited or rare.
Greece 26.5 10 These factors appeared long ago and are an ideology
Slovenia 25.5 11 of capitalism during the period of accumulation of primary
Italy 25.1 12 capital. Obviously, today the situation in the global economy
Hungary 23.9 13 and society is slightly different.
Portugal 21.6 14
Let's take a brief look at the history.
Spain 21.3 15
Belgium 20.3 16 People, in their own historical development, passed
Czech Republic 17.7 17 through a number of phases: from the primitive to information
Slovakia 17.4 18 society. Each phase in the process of its development brought
Sweden 17.4 19 brand new relations and new laws were introduced. In the pro-
Denmark 16.4 20 cess, quantity changed to new quality and society changed its
Finland 16.3 21 organization.
Germany 15.2 22 Nowadays, the tendency of business responsibility
Ireland 14.7 23 towards society is becoming powerful. There are numerous
France 13.6 24 charitable foundations. Considerable funds of the wealthy are
Netherlands 12.0 25 being transferred to the use of the general public. Personal
United Kingdom 11.8 26 modesty in the use of the benefits of the most progressive rep-
Luxembourg 9.3 27 resentatives of the elites sets a good tone and example. Bill
Austria 9.2 28 Gates has decided not to give his children a legacy. He bor-
rowed this idea from Warren Buffett.
Now, the fourth industrial revolution (Industry 4.0) is These trends may be sprouts of the gradual emer-
considered as a global phenomenon, and this is a very real sit- gence of a new formation, a new society that has no name yet.
uation. Let’s ask a rhetorical question. It is logical to call it reasonable, fair. Thus, in our time there
are changes in economic relations, and we need to see them
After a comprehensive introduction of the industry and formulate them as new axioms and laws.
4.0 will:
Let’s present a possible formulation.
- military conflicts
- inequality between people and countries There are five fundamental factors that create the ba-
- huge military spending sis for economics and, in essence, cover the entire economic
- millions of refugees disappear? problem.
- shadow economy? The first factor is the material needs of society, that
- corruption? is, the material needs of its individuals and institutions. It must
- etc. be reconciled with the principle of Intelligence.
Probably not. Why? The conclusion can be drawn The second factor is that nothing so corrupts a
that perhaps global factors do not take into account global ef- healthy person as benefits he/she has not earned him/herself.
forts. A considerable amount of work is devoted to this prob-
lem, for example [5, 6], but the situation does not radically
The third factor is that resource constraints are offset In regard to the third factor, we note that the United
by their multiple use (recycling) and the use of renewable Nations declared the 17 goals of sustainable development to
sources. 2030, which actually correspond to the circular economy [8].
Circular economy - a new trend, the basis of the Fourth Indus-
The fourth factor is that the guarantee of harmoniza-
trial Revolution, provides for the rational use of natural and
tion of business is the transparency of financial-economic and
technical resources, the most effective energy saving, and re-
legal relations.
cycling of all waste.
The fifth factor, first of all, is the necessity to investi-
The fourth factor is transparency. This factor involves
gate the risks of discoveries and anticipate their negative con-
the creation of a new model of the market.
sequences. Only afterwards it is possible to introduce new dis-
coveries, technologies, etc. In the macro approach to considering market models
it is possible to state that there were only two models of the
Let's consider what has to change radically in eco-
market: free market and free competition market. It's time to
nomics, management, sociology, law, philosophy, etc.
create a transparent market.
The first factor is to introduce the concept of morality
The fifth factor is extremely necessary, will be diffi-
into the economy.
cult to implement.
Indeed, there are two ways to combat negative phe-
The information society was created by infocommu-
nications, which should become a means of building a new
- the first way is to educate citizens in the spirit of
community. To implement the five factors you need:
morality and generally acceptable human values;
- the second way is to create the necessary legal con- 1. To develop culture, science, education, upbringing.
ditions and regulatory system that will stimulate the execution 2. Create a "Transparent Infocommunication Envi-
of the law. ronment".
These methods should be applied being bound har- Today, without the use of ICT, it is impossible to
monically. achieve a dynamic development of culture, science, education,
and upbringing. ICTs allow almost instantaneous access to a
If you look carefully at the first factor of traditional
huge array of information, organization of individual training
economics, then it will be obvious, that this factor not only
in accordance with the personal characteristics of everyone
justifies, but also stimulates exorbitant endless enrichment.
who learns, and accelerates the process of scientific research.
Thus, a person will never achieve his goal in obtaining materi-
al goods. This failure to achieve the goal makes the person In education it is necessary to create automated sys-
dissatisfied. tems with an on-line access to determine personal traits of a
human. If a person wants to reach success in his life, then he
There is one more issue in this regard. Let's put for-
must be involved in self-studying.
ward another hypothesis: "The satisfaction of man with mate-
rial goods (which can be expressed in money) varies according It means that people should know their psychological
to the logarithmic law". The conclusion from the hypothesis is type, most effective channels of information perception, pro-
as follows: the greater the material wealth, the much greater fessional preferences, health conditions, and possible threats to
increase must be added to get the same pleasure. it, the most appropriate system of healthy lifestyle, and so on.
It is necessary to educate a person so that the princi- In science the modeling of various processes in the
ple of reasonable sufficiency is his inherent motivation. For field of physics, biology, chemistry, astronomy, and so on is
such a person shadow economy, corruption, and fraud will be of vital importance.
The market unites three major structures: public ad-
Being brought up in such a spirit, a person taking a ministration; manufacturers of goods and services; users unit-
high official position will not try to influence negatively other ed in civil society. This structure should be immersed into a
states or encroach on foreign territory. transparent scientific and educational infocommunication en-
vironment (Fig. 1).
The optimal condition is when the civil society
reaches a level that will ensure the combination of the height
Management bodies (regulation)
of power, the peak of wisdom and high morality.
Transparent Infocommunication
The second is to harmonize relations between the in- Environment
dividual and the state, establishing equality between them.
Manufacturers of goods and services Civil society
Indeed, there are two opposing judgments: the priori-
ty of the state or the priority of the individual. Both the first
and the second are wrong. The balance of interests must be Fig. 1 – The market unites
The electronic regulatory environment (ERC), which CONCLUSIONS
covers both organizational and technological aspects, should
In summary. Let’s formulate the elements of a sus-
be in line with the level of development of the infocommuni-
tainable development paradigm:
cation structure. If we talk about the next generation networks
- Instead of unlimited needs - the principle of reason-
(NGNs), then the agenda should raise the issue of the next
able sufficiency
generation of regulations (NGoR).
- The purpose of economic activity is harmonization
of people's life
- Pre-definition of the risks of new discoveries and
their minimization
- Rejection of populism
- Security (including secure Internet)
Science and education emerged based on the practical
- Morality - an essential attribute of economic rela-
needs of people (society). The Internet has penetrated into all
spheres of society. New expressions have appeared: Internet
- Priority of ecology
economy, Internet management, Internet sociologists, etc. At
- Minimizing inequalities
the same time, a new problem arose - provision of cybersecu-
- Transparency of the activities of the institutes of so-
rity since at present, humanity actually lives in cyberspace. Let
us consider only a few examples of the influence of the Inter-
- Advertising - the way of objective information.
net in the field of education.
- Essential modernization of the content of training
Internet economy is an economic activity in the in-
formation society.
The Internet economy as a science (discipline) studies
the influence of the Internet on the aggregate of relations in
the sphere of production, distribution, exchange and consump-
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