1. Economical Waves 10 March 2011 Presented by Syndicate 4 during Rabelani Dagada’s Technology & Information Management Course, Wits Business School, 17 March 2011

2. The Four Economical Waves 1st Wave 2nd Wave 3rd Wave 4th Wave

3. First Wave During the first wave economies were mining and agriculturally based, these economies are now known as the primary sector.

5. It was a period where major changes in agriculture, manufacturing, mining, transportation, and technology.

6. The second wave involves a shift in the way that production took place, in which the manufacturing of goods began to involve automated processes.

7. During the industrial wave there was a fundamental shift in the way that people thought about the whole production process.

8. The industrial revolution was important in that it increased productivity by introducing large scale manufacturing.

9. The importance of the second wave is that it created physical infrastructure in the countries that took part in it. The infrastructural development has facilitated and made it possible for these countries move into the fourth economical wave.

11. While the second wave is defined by geography, bricks and mortar, the third wave is defined by information and knowledge which transcends physical boundaries.

12. During the third wave countries began to make use of technology and information to enhance their production and remain constantly innovative and ahead of other economies.

13. During this wave the economies became driven by a tertiary sector that is known as the ‘service industry’.

15. It involves a shift from physical to intellectual resources.

16. This economy is driven by information and communication technology, and the globalisation of economic activities.

18. The extensive use of cloud computing and mobile commerce.

19. Access to extensive cheap broadband networks.

20. Access to cheap telecommunications networks, and a decrease in the costs of telephone calls.

21. Extensive use of mobile devices.

22. Communication will be accessible to the whole population, and will be cheap.

23. There will be an advanced convergence of technologies. Data networks will converge, and multiple devices will converge into single devices.

25. SA has become a net importer of agricultural produce. The local farmers are not subsidised by government, hence import from the EU, which drives up local produce prices

26. Raw materials are exported from SA, manufactured and then re-imported back into SA. 71% of exports to china constituted base metals and minerals however in the same year 64% of china’s export to SA constituted manufactured goods.

27. Our GDP is largely based on the production and export of agricultural and mining raw material

28. SA has not become a fully industrialised economy.

30. Steps that South Africa can take in order fast-track our economy into the fourth economical wave Become a knowledge based economy. Develop the infrastructure that is necessary to support a knowledge based economy Information and communication technology (ICT)

32. Brain-drain and the HIV&AIDS pandemic

33. A lack of infrastructure

34. Insufficient legal and regulatory frameworks and government strategy