In spite of the numerous disadvantages and risks regarding the ecological and
social-ethical pillars of SD highlighted above, Smart Cities may at first glance offer
more chances than risks for the economic pillar of SD. Nevertheless, the high costs
involved in planning, building, implementing, and further optimizing Smart Cities
might lead to high debt levels which will not only put a long-term financial strain on
cities and the citizens living in them but might also make them politically dependent
from their creditors. Some vigilant writers already warned years ago that “the next
debt crisis will be ecological” (Gunther 2010). As the GEF (the Global Environment
Facility) which once emerged from the World Conversation Bank, founded by
Edmond de Rothschild, “. . .designed to transfer debts from third world countries
to this bank” (TheSovereignIndependent 2018), obliges these countries to hand in
their land to this bank, those getting funding from the GEF and its partners in the
framework of the many GEF-funded Smart City projects who fall into debt lose the
ownership of their land, including resources like water and (food) plants.
According to McKinsey, the Smart City industry will be a $400 billion market by
2020, with 600 cities worldwide, supposedly generating 60% of the world’s GDP by
2025 (Panetta 2018). Although the production of numerous technical devices
including robots will initially create new jobs, it is questionable if the many citizens
will benefit from this. The job market will probably change significantly by 2020
when ca. 30% Smart Cities environmental care appliances are supposed to have
launched robotics and smart devices in nursing and medical institutions (Panetta
2018).
Currently, the Smart City market seems to be dominated by some industrial giants
and few powerful financial institutions, whereas small companies with innovative
products and concepts including start-ups have relatively little chance. In any case,
digitization and the widespread use of robots and AI in Smart Cities involve the risk
that many jobs might be lost in the medium to long term (Eckert 2017; Schwab
2017) – especially once robots will be perfected to the degree that they can take over
the production of other robots and products on their own (Frey and Osborne 2013;
Eckert 2017). According to the Boston Consulting Group, in Germany alone, over
60% of 8 Mio people losing their jobs through digitization by 2025 will be skilled
workers; another tenth will be experts and specialists in their field (Frey and Osborne
2013; Eckert 2017). According to the McKinsey Global Institute, ca. 800 million
global workers will lose their jobs by 2030 and will be replaced by robotic automation (BBC 2017). A study released at the World Economic Forum (WEF) shows that
women are currently working in ca. 57% of the 1.4 Mio US jobs which will be
destroyed by technology from today until 2026, predicting that it will take a century
for women to reach gender parity in the workplace (Green 2018). Some fear that
digitalization will leave entire population segments with little or nothing to do,
finally resulting into “. . .revolution, war or worse” (Rosenberg 2017).
13 The Role of Smart Cities for the Realization of. . .
239
social-ethical pillars of SD highlighted above, Smart Cities may at first glance offer
more chances than risks for the economic pillar of SD. Nevertheless, the high costs
involved in planning, building, implementing, and further optimizing Smart Cities
might lead to high debt levels which will not only put a long-term financial strain on
cities and the citizens living in them but might also make them politically dependent
from their creditors. Some vigilant writers already warned years ago that “the next
debt crisis will be ecological” (Gunther 2010). As the GEF (the Global Environment
Facility) which once emerged from the World Conversation Bank, founded by
Edmond de Rothschild, “. . .designed to transfer debts from third world countries
to this bank” (TheSovereignIndependent 2018), obliges these countries to hand in
their land to this bank, those getting funding from the GEF and its partners in the
framework of the many GEF-funded Smart City projects who fall into debt lose the
ownership of their land, including resources like water and (food) plants.
According to McKinsey, the Smart City industry will be a $400 billion market by
2020, with 600 cities worldwide, supposedly generating 60% of the world’s GDP by
2025 (Panetta 2018). Although the production of numerous technical devices
including robots will initially create new jobs, it is questionable if the many citizens
will benefit from this. The job market will probably change significantly by 2020
when ca. 30% Smart Cities environmental care appliances are supposed to have
launched robotics and smart devices in nursing and medical institutions (Panetta
2018).
Currently, the Smart City market seems to be dominated by some industrial giants
and few powerful financial institutions, whereas small companies with innovative
products and concepts including start-ups have relatively little chance. In any case,
digitization and the widespread use of robots and AI in Smart Cities involve the risk
that many jobs might be lost in the medium to long term (Eckert 2017; Schwab
2017) – especially once robots will be perfected to the degree that they can take over
the production of other robots and products on their own (Frey and Osborne 2013;
Eckert 2017). According to the Boston Consulting Group, in Germany alone, over
60% of 8 Mio people losing their jobs through digitization by 2025 will be skilled
workers; another tenth will be experts and specialists in their field (Frey and Osborne
2013; Eckert 2017). According to the McKinsey Global Institute, ca. 800 million
global workers will lose their jobs by 2030 and will be replaced by robotic automation (BBC 2017). A study released at the World Economic Forum (WEF) shows that
women are currently working in ca. 57% of the 1.4 Mio US jobs which will be
destroyed by technology from today until 2026, predicting that it will take a century
for women to reach gender parity in the workplace (Green 2018). Some fear that
digitalization will leave entire population segments with little or nothing to do,
finally resulting into “. . .revolution, war or worse” (Rosenberg 2017).
13 The Role of Smart Cities for the Realization of. . .
239