May 8: When people hear the term 'New Economy', many still get confused, what it actually means. However, the concept of the New Economy did not emerge suddenly. The new economy is defined as a new type of economy created by information, technology, the Internet, and ultra-high-tech companies. It is driven by technology-based industries with high economic growth rates. In this type of economy, the economic growth rate and productivity are made sustainable by advanced technology. Compared to the traditional economy, productivity is much higher. The economic growth rate is also very high.

The concept of the New Economy came in the late 1990s when the use of the Internet and powerful computers began to change and shape the dimensions of the consumer and the market.

This has been especially linked to the boom in the share price of the technology sector in the late 90s and early 2000s. It started in the US. In the next few years, it reached other developed economies. In the next decade, a similar economic transformation was seen in many emerging economies. 

In simpler terms, an economy based on products and commodities gradually focuses on technology, and an economy in which technology is widely used in the creation of new goods and services is the New Economy. Its production cannot be matched by the traditional production-oriented economy. Nowadays, high-tech and the internet have changed every part of our daily life, including the way we work and spend time.

On the other hand, it has also changed the basic rules of economics. The increasing use of automation and robots has increased the possibility of losing millions of manual labour jobs. Equally, there is a situation where new jobs will be created. The way we shop, the way we travel has changed. 

Whether we are in the New Economy or yet to reach it is still a matter of controversy. A large group of economists are saying that we have now reached the New Economy. However, a small group is raising questions on this. Some economists say that in the New Economy, inflation will disappear, business cycles will not exist and the old rules of economics will not apply. Most economists are not ready to accept this as such claims have been made many times in the past. They argue that regardless of the situation, the basic rules of economics will not change.

The companies that form the backbone of the new economic system are many times larger than most of the world's economies. Companies have lost billions of dollars in the blink of an eye when a technology-based company's stock price bubble bursts. Hundreds of companies have gone bankrupt.

However, the companies that have survived till now have turned into innovative companies with cutting-edge technology. Most of the businesses in the new economy are involved in online activities and the biotechnology industry. It has spawned thousands of other industries. Currently, three of the top five companies with the highest market capitalization in the world are Apple, Google and Microsoft. In the 1980s, oil and car companies were on this list.

Over the past few years, online service providers or online-based companies have turned into multinational companies. Amazon, Facebook, Netflix, Alibaba, Payatu, Uber, and Tencent are just a few examples. The New Economy has not only changed the economic environment of the world but also restructured global capitalism. Capitalism has begun to focus on social, environmental and sustainable development goals.

Once upon a time, countries used to fight for oil or mineral production. Now the main topic of contention is consumer data and its security. The cold war that has been going on between the US and China for the past few years is also focused on data. Consumer data is at the core of everyone's problems, whether it's a business debate or a technology battle.

The US and countries leaning towards the US are accusing China of spying on citizens of other countries through domestic technology companies and transferring consumer data to China.

An example of this is the growing worldwide ban on the Chinese short video-sharing app TikTok. China has denied the allegations. The charges against TikTok have not been confirmed.

While cyber crimes and data theft cases are increasing worldwide, the concern of every citizen, company and country is now focused on how to maintain the privacy of their own and their users' data, record processing and security. Countries have gradually introduced data protection laws for their citizens. Nepal has failed in matters of data privacy and security. However, recently new technologies are being used in the fields of agriculture, energy, capital market etc that helps in the development of the New Economy.