Understanding the history of industrial revolutions provides valuable insights into the evolution of modern economic systems and technological advancements. Each phase—from the First Industrial Revolution to the current era of generative artificial intelligence—has not only transformed economies but also redefined societal structures.
Global Poverty and Economic Dominance before the First Industrial Revolution:
Prior to the Industrial Revolution, the global population experienced widespread poverty, a condition exacerbated by entrenched social systems characterized by inequality and exploitation. In Europe, for instance, the feudal system entrenched a rigid class hierarchy, where peasants labored extensively under the authority of landowning aristocrats, often receiving minimal compensation.
This structure not only limited social mobility but also ensured that wealth remained concentrated among the elite, perpetuating economic disparity. Similarly, in other parts of the world, societal norms and institutionalized practices maintained economic hierarchies, restricting access to resources and opportunities for the majority. These systemic inequalities meant that even in regions with substantial economic output, the benefits were unevenly distributed, leaving large segments of the population in poverty.
In terms of global economic contributions, historical data indicates that by 1750, China and India were dominant forces in the world economy. According to economic historian Angus Maddison, in 1700, India accounted for approximately 24.4 percent of the world’s GDP, while China contributed about 22.3 percent. Collectively, this amounts to nearly 47 percent of global GDP, underscoring the significant economic influence of these two nations during that period.
However, it’s important to note that despite this substantial share of global GDP, the wealth within these countries was not equitably distributed. Both societies had complex social hierarchies and systems that led to significant internal inequalities, with vast portions of their populations living in abject poverty. This disparity highlights that a nation’s substantial contribution to global GDP does not necessarily correlate with widespread prosperity among its populace.
The First Industrial Revolution:
The First Industrial Revolution, beginning in the late 18th century, introduced steam power and mechanized production. This era laid the foundation for modern manufacturing processes that continue to underpin today’s industries. The shift from agrarian economies to industrialized ones marked a significant transformation in production and production workers.
Subsequent Industrial Revolutions:
The Second Industrial Revolution brought electricity and mass production techniques, principles that continue to influence current manufacturing strategies and supply chain logistics. Similarly, the Third Industrial Revolution, characterized by the rise of digital technology and automation, paved the way for the information age, influencing how data is processed and utilized across all sectors.
Globalisation of Information, Knowledge, Research, Innovation, and Development (IKRID):
The globalization of IKRID in the post-internet period has empowered marginalized communities and countries that were historically denied opportunities to participate in the evolution of human civilization. This phenomenon has led to the emergence of a new force—the Sci-Tech Human power complex—which is driving exponential and unprecedented scientific and technological development. These advancements have ushered us into the age of generative artificial intelligence, further transforming societal structures and economic systems.
By examining these historical transitions, we can discern patterns and trajectories that inform our understanding of current technological impacts on economic models—how they evolve, adapt, and sometimes disrupt existing paradigms.
The glimpse of the background
Life before the first industrial revolution: A glimpse into pre-industrial UK
Before the onset of the First Industrial Revolution, life in the United Kingdom was predominantly agrarian, with the majority of the population living in rural areas and engaged in subsistence farming. The economy was largely localized, relying on manual labor and rudimentary tools, which limited both productivity and surplus generation. Most people lived in small, scattered communities where barter often supplemented monetary transactions due to the scarcity of currency among the common folk.
Living standards during this period were starkly different from today’s norms. Housing was typically rudimentary, constructed from local materials like wattle and daub, offering little protection against the harsh British weather. Families often shared single-room dwellings, which lacked proper sanitation facilities, contributing to widespread health issues. Nutrition was another area of concern; diets were monotonous and heavily reliant on bread and ale, with meat being a luxury few could afford regularly. This inadequate diet, combined with poor living conditions, resulted in a life expectancy that hovered around the mid-thirties.
In the 18th century, life expectancy in the United Kingdom was significantly lower than what it is today, primarily due to high infant and child mortality rates. The average life expectancy at birth was approximately 39 years. However, this figure was heavily influenced by the high number of deaths in early childhood.
For those who survived infancy, reaching adulthood, life expectancy increased substantially. For example, individuals who reached the age of 10 could expect to live an additional 32.2 years, bringing their total life expectancy to around 42 years.
The Luddite Movement: Resistance to industrialisation and its impact on employment
The early Industrial Revolution sparked widespread apprehension among craftsmen, laborers, and youth, who feared unemployment due to the rise of factory-based production powered by steam engines. Skilled artisans, such as weavers, saw their expertise threatened by mechanized tools like power looms, leading to protests like the Luddite movement, which destroyed over 1,000 looms between 1811 and 1816.
The Luddite movement, active between 1811 and 1816 in England, was a collective of skilled artisans—primarily weavers and textile workers—who opposed the introduction of mechanized looms and knitting frames. They feared that these machines would undermine their livelihoods by reducing the demand for manual labor.
In response, they organized protests and engaged in the destruction of factory equipment. Laborers worried about losing traditional jobs to machines, while youth faced grim prospects, often forced into low-paying, harsh factory work. Historical records show that child labor accounted for nearly half the workforce in some textile mills during the 1830s, reflecting the economic desperation of families.
Despite these challenges, the long-term effects of industrialization were more positive but complex. Economist Gregory Clark notes a 200% increase in real wages in Britain between 1800 and 1900, signaling improved living standards over time. New industries, such as engineering, transportation, and retail, created jobs and absorbed displaced workers, with railway expansion alone generating thousands of positions.
However, the transition was slow and fraught with hardships, including poor working conditions, low pay, and urban overcrowding, which persisted for decades before reforms addressed them. Ultimately, while the Industrial Revolution led to more and better job opportunities, its immediate impact caused significant unemployment and social disruption, illustrating the dual-edged nature of technological progress.
Navigating the AI revolution: Balancing progress with inclusivity and human well-being
The rapid advancement of generative artificial intelligence (AI), AI agents, and the prospect of artificial general intelligence (AGI) has reignited longstanding concerns about technological disruption and its implications for employment, economic inequality, and human well-being. While these technologies hold immense potential to revolutionize industries, boost productivity, simplify daily life, and address complex challenges, they also raise legitimate fears about job displacement, economic insecurity, and broader societal issues.
Generative AI and AI agents are already automating tasks once considered exclusive to skilled professionals, such as writing, coding, graphic design, and even legal analysis. This automation could result in significant job losses in certain sectors, particularly those involving repetitive or predictable tasks.
For instance, a 2023 study by Goldman Sachs estimated that AI could automate up to 300 million full-time jobs globally, with administrative and manual labor being the most vulnerable. However, history offers valuable lessons: while technological advancements have historically displaced some jobs, they have also created new opportunities.
The First Industrial Revolution, for example, initially caused widespread unemployment and hardship but eventually led to the emergence of entirely new industries and improved living standards over time. Similarly, AI has the potential to spur job creation in fields like AI development, data science, cybersecurity, and other emerging sectors.
Sci-tech human power complex
It is essential to recognize that scientific and technological revolutions cannot be analyzed in isolation from the evolving capabilities and capacities of human beings.
The emergence of what can be termed the “sci-tech human power complex” demonstrates that science, technology, and humanity co-evolve and reinforce one another. As technology advances, so too does human ingenuity, adaptability, and resilience, creating a symbiotic relationship between innovation and human progress.
One of the most pressing questions is whether this transition will be managed effectively through the creation of political, social, and economic systems that prioritize inclusiveness, shared prosperity, and unity for all of humanity. Rather than perpetuating inequality and exploitation, these systems must be rooted in principles of equity and collective well-being, envisioning the global human civilization as a unified entity. Follow-up articles will delve deeper into these critical issues, exploring how societies can navigate the challenges and opportunities presented by AI and AGI while ensuring a future that benefits everyone.
Copyright Business Recorder, 2025
The writer is advocate High Court, a Techno-economist and an educationist
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