6.3.2 Building Economic and Technological Resilience Notes

Strengthening Systems Against Risks

1. In an increasingly interconnected world, vulnerabilities in global systems can have far-reaching consequences.
2. From supply chain disruptions to cyber threats, the need to strengthen systems against risks has never been more urgent.
3. This section explores three key strategies:
   1. Reshoring economic activity
   2. Crowdsourcing technologies
   3. Cybersecurity and e-passports

Reshoring Economic Activity

What is Reshoring?

1. Reshoring refers to the process of bringing manufacturing and production activities back to a company's home country.
2. This strategy aims to reduce dependency on global supply chains and enhance domestic resilience.
3. It also aims at local job creation and supports economic growth by revitalizing domestic manufacturing industries.

Challenges of Reshoring

1. Higher Costs: Labor and production costs are often higher in HICs.
2. Skill Gaps: Domestic workforces may lack the skills needed for advanced manufacturing.
3. Environmental Trade-offs: While regulations are stricter, increased local production can still contribute to pollution.

Crowdsourcing Technologies

What is Crowdsourcing?

1. Crowdsourcing involves leveraging the collective knowledge and skills of a large group of people, often through digital platforms.
2. This approach is particularly effective in crisis mapping and disaster response.
3. Specific type of crowdsourcing targeted at rising capital is called crowdfunding. It allows entrepreneurs, startups, or projects to solicit small contributions from a wide audience to fund a specific initiative, product, or service

Challenges of Crowdsourcing

1. Data Quality: Information may be inaccurate or incomplete.