Technology is making the rich richer. And the poor more … – Observer

There are 150 “unicorns” that together are worth 525 billion dollars, about EUR 481 000 million. They are technological startups, non-listed, worth over one billion dollars and that transform algorithms in business. The Uber, for example, is valued at 51 billion dollars, according to the investment database of CB Insights venture capital. It is a mobile application that connects users to private motorists, launched in March 2009

The rise of millionaires (and billionaires) in Silicon Valley. – Birthplace technology giants like Apple or Google – made money and technology concepts that were to walk hand in hand. And according to the latest World Bank report, do it for good and for evil.

In the Internet economy, the absence of a competitive business environment can create increasingly concentrated markets, which benefit incumbent firms. Not surprisingly are the better educated, better connected and more able to receive the most benefits – circumscribing the digital revolution gains, “reads the report, quoted by The Guardian

The Mic adds that institution concludes that the technology industry is contributing to the growing inequality between the richest and the poorest. “Although there are many success stories, the effect of technology on global productivity, expand opportunities for the poor and middle class and the spread of accountable governance has been lower than it was expected,” reads the report.

According to the World Bank, the overall productivity slowed and social inequality has worsened despite the advancement of technology. Why does this happen? Because there are still about 4 billion people worldwide who lack access to the Internet. Another 2 billion people have no phone and about 500 million live not even close to an area covered by the mobile network, especially in China and India.

And if on the one hand, the lack of internet access It leads to them getting excluded from technological jobs, on the other, the technology turned out to automate many of the low-skill jobs that existed. Companies hire people with higher qualifications, ie they could pay for their studies. And those who can not – and occupying less qualified functions. – Lose place in the labor market

The digital revolution can cause emergence of new business models, which benefit consumers, but not when market entry is controlled, “the World Bank says, adding that the technology sector ultimately benefits monopolies and that is not to stimulate competition.

” many of developed economies facing labor markets increasingly polarized and promote inequity – in part because the technology increases the higher skill needs, as you replacing routine work, “it reads. The World Bank report explains that this inequality can be reduced if more people worldwide have access to the internet. And that projects from companies like Google or Facebook should do so without strings attached.

“The recent trend of developing services in which the basic content can be accessed freely (like Facebook’s Free Basics or Internet.org), while other content are subject to data charges, appears to be the antithesis of net neutrality and a distortion of markets, “says the report.

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