Author Archives: markdowe1

Britain, Economic, Government, History, Society, Technology

AI is not a threat but an opportunity

ARTIFICIAL INTELLIGENCE

IS the march of technology and machines something to be fearful of? Andy Haldane, the Bank of England chief economist, thinks we should be wary at the very least. He recently told the BBC that the rapid growth of artificial intelligence (AI) will make many jobs obsolete with far-reaching social and cultural consequences. He predicted a “Fourth Industrial Revolution” on a scale greater than anything seen before. “Each of those [previous industrial revolutions] had a wrenching and lengthy impact on the jobs market, on the lives and livelihoods of large swathes of society,” Mr Haldane said.

There is a distinction to be drawn between the short and long-term impacts of such upheavals. The western world has become immeasurably wealthier since farming techniques drove millions off the land and labour-saving automation took hold at the end of the 18th century. The increased prosperity that followed cannot be gainsaid though economic historians argue over when real living standards really began to rise for the majority. The period of transition was marked by social unrest and repression both here and on the continent.

But it remains the case that significant technological advances, whether they be the coming of the railways or the arrival of the silicon chip, have been accompanied by economic growth and higher per capita GDP.

Arguably, we have been too slow to adapt to automation in the UK, with too many jobs that could be mechanised still being carried out manually. This is one reason behind the UK’s poor productivity and sluggish wage growth, which have been the hallmarks of the economy in recent years. Stopping automation or taxing it as Labour threatens to do would stifle investment and worsen the country’s competitive position.

Mr Haldane was right to have said we cannot be sure whether the new machine age will destroy jobs or create new ones and on what scale; but seeking to stop it, as history shows, would be foolish and futile. Although AI will have a significant impact on manual work, many of the jobs likely to go will be middle-income posts in service industries – but these will be people who should be able to adapt to new challenges. Rather than stand in the way of progress, governments should ensure that their policies are geared towards encouraging the uptake of new skills and retraining. Automation should not be considered a threat but an opportunity.

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Government, Legal, Society

Electronic signatures can be written into the law

LAW COMMISSION

SIGNING on the dotted line has been the seal on deals and contracts for hundreds of years. But the supremacy of the traditional written signature could be nearing its end as the Law Commission has ruled that it can be replaced with a typed name or even the click of a button.

The Government’s independent legal adviser has released a report stating that e-signatures can be treated as equivalent to written ones. The report could have implications for documents including Last Powers of Attorney, which must be signed manually, as well as credit agreements and land sales.

Currently many businesses are afraid to use e-signatures because they are concerned they could be challenged in court.

In one case, the commission said, a large organisation has its documents signed manually before scanning them and then shredding the originals, a practice it described as “inefficient”. Electronic signatures can take forms including a typed name, clicking on “I accept” on a website, using a finger or stylus on a touchscreen and using a password or Pin code.

The guidance raises the prospect that an email with a name typed at the bottom of it or even an email header could be treated as a signed document.

The commission has opened a consultation on whether a new law is required to enshrine the legal validity of e-signatures, but said it is “not persuaded at present” that this is absolutely necessary, because the law is already in force. “Our provisional view is that the combination of EU law, statute and case law means that, under the current law, an electronic signature is capable of meeting a statutory requirement for a signature if an ‘authenticating intention’ can be demonstrated,” it said.

The Law Commission says that recent rulings made in the High Court and the Court of Appeal set enough of a precedent for there to be no need for a new law. European law also says that e-signatures should not be treated as less effective than physical ones.

The commission also suggested that, in future, signing could be witnessed via webcam or Skype, something the law does not currently allow for.

“We provisionally propose that it should be possible for a witness to observe an electronic signature by video link and then attest the document by affixing their own electronic signature to it,” the commission said.

In the future, it said, the law could even allow a second person to virtually witness an e-signature by signing into an online platform so they can see it appear in real time.

The Law Commissioner said: “Contract law in the UK is flexible, but some businesses are still unsure if electronic signatures would satisfy legal requirements. We can confirm that they do, potentially paving the way for much quicker transactions for businesses and consumers.

“And not only that: there’s scope, with our proposals for webcam witnesses, to do even more to make signing formal documents more convenient and to speed up transactions.”

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Africa, Aid, Britain, Business, Economic, G7, Government

Britain: Aid cash to be used in boosting trade with Africa

FOREIGN AID BUDGET

THERESA May has pledged to use Britain’s overseas aid budget to boost post-Brexit trade with Africa.

She told an audience in Cape Town that she is “unashamed” of her ambition to ensure the multibillion-pound pot “works for the UK”.

The Prime Minister said that from now on Britain’s foreign aid budget will not only help combat poverty, but support “our own national interest”.

It comes after the bloated aid budget – now standing at almost £14billion a year – has come under fire as officials struggling to spend the money quickly enough have donated to a series of increasingly controversial projects.

Mrs May said funds will be specifically used to “support the private sector to take root and grow”. This means Britain will employ its aid to help create the conditions for UK businesses to have confidence to invest in Africa.

She also said the funds should go towards boosting security and tackling terrorism in the continent – a move to which she insists will make the UK safer.

The money will also be used to encourage potential migrants to stay in Africa so they are not tempted to make the dangerous journey to Europe.

The commitment comes amid the UK’s huge foreign aid budget struggling to maintain public support. Critics have long opposed David Cameron’s controversial policy and target of spending 0.7 per cent of national income on overseas aid.

The target has meant huge increases in aid spending in recent years – and guarantees it will continue to grow.

Public anger has grown given some of the examples of how the money is spent. These include a £5.2million grant to girl band Yegna, nicknamed the “Ethiopian Spice Girls”, whose funding was only halted last year.

Downing Street will now hope that the announcement of a realignment of spending will help convince voters of its worth.

The Department for International Development gives around £2.6billion a year in bilateral aid to Africa. The Prime Minister has also announced a new ambition to make Britain the G7’s largest investor in the continent within four years.

At present the U.S. is the largest contributor to African investment, but Mrs May aims to leapfrog it by 2022.

In Cape Town, the Prime Minister talked about changing the face of the UK’s aid spending in Africa both to reflect the continent’s rapid growth and to benefit Britain. There is a huge opportunity for British trade in a post-Brexit world. Mrs May’s three-day trip to the African continent will also take in visits to Nigeria and Kenya.

The PM said: “It is the private sector that is the key to driving that growth – transforming labour markets… And the UK has the companies that can invest in and trade with Africa to do just this.

“The private sector has not yet managed to deliver the level of job creation and investment that many African nations need.

“So I want to put our development budget and expertise at the centre of our partnership as part of an ambitious new approach – and use this to support the private sector to take root and grow.

“I am unashamed about the need to ensure that our aid programme works for the UK.

“I am committing that our development spending will not only combat extreme poverty, but at the same time tackle global challenges and support our own national interest.

“This will ensure that our investment in aid benefits us all, as is fully aligned with our wider national security priorities.”

The Prime Minister also set out why working with Africa to deliver jobs, investment and long-term stability is in the interests of Britain and the wider world.

Mrs May pointed out that Africa needs to create millions of new jobs every year to keep pace with its rapidly growing population, adding: “The challenges facing Africa are not Africa’s alone.

“It is in the world’s interest to see that those jobs are created, to tackle the causes and symptoms of extremism and instability, to deal with migration flows and to encourage clean growth. If we fail to do so, the economic and environmental impacts will swiftly reach every corner of our networked, connected world.

“And the human impacts . . . will be similarly global.”

Addressing the issue of British trade, Mrs May said: “As Prime Minister of a trading nation whose success depends on global markets, I want to see strong African economies that British companies can do business with in a free and fair fashion.

“Whether through creating new customers for British exporters or opportunities for British investors, our integrated global economy means healthy African economies are good news for British people as well as African people.

“I want the UK to be the G7’s number one investor in Africa, with Britain’s private sector companies taking the lead in investing the billions that will see African economies growing by trillions.”

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