6.3.2 Building Economic and Technological Resilience Notes

Strengthening Systems Against Risks

1. In an increasingly interconnected world, vulnerabilities in global systems can have far-reaching consequences.
2. From supply chain disruptions to cyber threats, the need to strengthen systems against risks has never been more urgent.
3. This section explores three key strategies:
   1. Reshoring economic activity
   2. Crowdsourcing technologies
   3. Cybersecurity and e-passports

Reshoring Economic Activity

What is Reshoring?

1. Reshoring refers to the process of bringing manufacturing and production activities back to a company's home country.
2. This strategy aims to reduce dependency on global supply chains and enhance domestic resilience.
3. It also aims at local job creation and supports economic growth by revitalizing domestic manufacturing industries.

Challenges of Reshoring

1. Higher Costs: Labor and production costs are often higher in HICs.
2. Skill Gaps: Domestic workforces may lack the skills needed for advanced manufacturing.
3. Environmental Trade-offs: While regulations are stricter, increased local production can still contribute to pollution.

Crowdsourcing Technologies

What is Crowdsourcing?

1. Crowdsourcing involves leveraging the collective knowledge and skills of a large group of people, often through digital platforms.
2. This approach is particularly effective in crisis mapping and disaster response.
3. Specific type of crowdsourcing targeted at rising capital is called crowdfunding. It allows entrepreneurs, startups, or projects to solicit small contributions from a wide audience to fund a specific initiative, product, or service

Challenges of Crowdsourcing

1. Data Quality: Information may be inaccurate or incomplete.
2. Privacy Concerns: Collecting and sharing data can raise ethical issues.
3. Digital Divide: Access to technology is uneven, limiting participation in some regions.

Cybersecurity and E-Passports

Why Cybersecurity Matters

1. As digital systems become integral to global interactions, cybersecurity is essential to protect identities, financial transactions, and critical infrastructure.

Challenges in Cybersecurity

1. Evolving Threats: Cyber threats are constantly changing, requiring ongoing investment in security measures.
2. Privacy vs. Security: Balancing data protection with the need for surveillance and monitoring.
3. Access Inequality: Not all countries have the resources to implement advanced cybersecurity systems.

Electronic Passports with Embedded Chips and Biometric Data

1. E-passports improve security by:
   1. Biometric Verification: It is harder for individuals to use fraudulent or stolen passports, as identity can be verified against the biometric data.
   2. Encryption and Data Protection: The information stored on the chip is encrypted, providing additional security against unauthorized access and tampering.
   3. Contactless Scanning: E-passports can be scanned quickly with contactless readers, improving processing times at immigration checkpoints while reducing human error.

Reflection and Broader Implications

1. Strengthening systems against risks is not just about adopting new technologies or reshoring industries.
2. It requires a holistic approach that considers economic, environmental, and social factors.
3. By understanding and applying these strategies, you can better analyze how countries and organizations are working to build resilience in an uncertain world.
4. Consider how these approaches might evolve in the future and what role you could play in shaping more resilient systems.