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Posts Tagged ‘Digital Development’

Fairwork vis-à-vis ILO Decent Work Standards

Fairwork logoHow does the Fairwork framework of five decent work standards in the gig economy – fair pay, conditions, management, contracts, representation – compare to more conventional frameworks?

As explained in a recently-published paper, Fairwork is a simplified, revised and measurable version of the 11 elements of the International Labour Organization’s decent work agenda.

Comparing the two, as shown in the table above, Fairwork is not as comprehensive.  Some ILO elements not covered were seen as unrelated to Fairwork’s purpose.  For example, the contextual elements lie outside the control of platforms, and no evidence was found of child or forced labour.  Quantum of employment measures are not directly relevant to Fairwork’s aims though it would be informative to know if platforms are creating new work as opposed to just substituting for existing work.

While outside the scope of Fairwork’s principles, work security and flexibility were investigated via open questions in worker interviews.  Workers did raise the issues of flexibility and autonomy, as positive attributes of their gig economy work.  These supposed benefits are arguably more perceptual than real.  Hours of work are often determined by client demand and shaped by incentive payments offered by the platform to work at certain times or for certain shift lengths.  Work is recorded and managed via the app and platform to a significant extent.

In sum, the Fairwork framework covers the decent work-related issues identified in the research literature on platforms, and covers the majority of decent work elements within the ILO framework.  Its ratings could nonetheless be contextualised in a number of ways by adding in broader findings about national socio-economic context, about any creation of work and autonomy by the gig economy, about dimensions of inequality within and between gig sectors, and about longer-term job (in)security and precarity.

You can find more detail about this and other foundations for the Fairwork project in the open-access paper, “Systematic Evaluation of Gig Work Against Decent Work Standards: The Development and Application of the Fairwork Framework”; published in the journal, The Information Society.

The Rise of Digital Self-Exclusion

Digital ExclusionWhy are marginalised groups self-excluding from digital systems?

The digital exclusion problem used to be people outside the house unable to get in.  For example, the digital divide preventing groups from accessing the benefits of digital systems.

Recently, a new digital exclusion issue is arising: people deciding they’d rather stay outside the house.  Some examples . . .

1. Informal Settlement Residents

In researching for our paper, “Datafication, Development and Marginalised Urban Communities: An Applied Data Justice Framework”, my co-author Satyarupa Shekhar identified this pattern among informal settlement residents:

“businesses such as schools and pharmacies in Kibera did not wish to be [digitally] mapped.  They feared visibility to the state might lead to closure if their location became known and their informal status or activities (e.g. sales of stolen drugs) were then discovered …

… Particular settlements in Chennai refused to participate in data-gathering.  They believed that drawing attention to their existence and informal status – being under the ‘gaze of the state’ – would increase likelihood of eviction”

2. Refugees

The recent Information Technology for Development paper “Identity at the Margins” finds self-exclusion among refugees in relation to registration on UNHCR digital ID systems:

“Some participants were so concerned about the potential consequences of data sharing that they avoided registering altogether. For example, a male Syrian refugee living with his family in a one-room apartment in Lebanon told us:

Everybody was registering with the UN, but we did not. We were suspicious and scared. We don’t know if the UN shares information with anyone, so that is why I did not share many things with them.”

3. Migrants

The chapter, “The Dilemma of Undocumented Migrants Invisible to Covid-19 Counting” in recent online book “Covid-19 from the Margins” outlines the dilemma of those undocumented migrants unwilling to register with health systems despite contracting Covid, for fear of this alerting other arms of government which would then deport them.

4. LGBTQ People

The report, “Privacy, Anonymity, Visibility: Dilemmas in Tech Use by Marginalised Communities” explains how some LGBTQ people in Kenya have been unwilling to use digital systems designed to help them report discriminatory violence because of fears that their identities would become known.

Analysis

In one sense there is nothing new here.  Individuals have for centuries sought to avoid being included in government censuses and other records: to avoid tax, to avoid being conscripted for war, etc.

The difference with digital is the ease with which data can be transmitted, leading particularly to a fear that it will find its way to the agencies of state security. This fear applies not just to data collection by other state agencies but also to NGOs (who were undertaking the community mappings in the first examples) and to international organisations like UNHCR.

Whereas incorporation into historical data systems such as the census offered no individual benefit, this is not true of the digital systems cited above.  In all these cases, the marginalised are foregoing direct benefits of incorporation – better community decision-making, access to UN assistance, access to healthcare – because these benefits are outweighed by the fear of perceived harm arising from visibility to particular arms of the state.

All this in turn can be understood in terms of data justice models such as the one below from “Datafication, Development and Marginalised Urban Communities: An Applied Data Justice Framework”.  At a basic level, the perceived utility of exclusion from these digital systems outweighs the perceived benefits.  But these perception are themselves shaped by the structural and historical context:

– A lack of credible, known data rights for those in marginalised groups

– A structural relation of perceived powerlessness vis-à-vis the state

– A lack of institutions and resources with which that powerlessness could be counteracted

Unless those wider, deeper causes can be addressed, the marginalised will continue to self-exclude from digital systems.

Latest Digital Development Outputs (Data, Economy, Health, Platforms, Water) from CDD, Manchester

Using SmartphoneRecent outputs – on Data-for-Development; Digital Economy; Digital Health; Digital Platforms; Digital Water – from Centre for Digital Development researchers, University of Manchester:

DATA-FOR-DEVELOPMENT

Strengthening the Skills Pipeline for Statistical Capacity Development to Meet the Demands of Sustainable Development: Implementing a Data Fellowship Model in Colombia” (open access) by Pete Jones, Jackie Carter, Jaco Renken & Magdalena Arbeláez Tobón, considers the importance of quantitative data skills development implied by the UN Sustainable Development Goals. The success of a partnership programme in the UK is used to explore how ‘data fellowships’ can fulfil some of the unmet capacity needs of the SDGs in a developing country context, Colombia.

Building Information Modelling Diffusion Research in Developing Countries” (open access) by Samuel Adeniyi Adekunle, Obuks Ejohwomu & Clinton Ohis Aigbavboa undertakes a literature review – including current and future research trends – on the adoption of building information modelling in developing countries.

DIGITAL ECONOMY / PLATFORMS

Conceptualising Digital Platforms in Developing Countries as Socio-Technical Transitions” (open read access) by Juan Erasmo Gomez-Morantes, Richard Heeks & Richard Duncombe demonstrates how the multi-level perspective approach can be used to analyse the lifecycle of digital platforms: the process of innovation, rapidity of scaling, and development impacts relating to resource endowments, institutional formalisation, and shifts in power.

Digital Platforms and Institutional Voids in Developing Countries” (open access) by Richard Heeks, Juan Erasmo Gomez-Morantes, Brian Nicholson and colleagues from the Fairwork project, analyses how digital platforms change markets through their institutional actions.  Using the example of ride-hailing, it finds platforms have formed a market that is more efficient, effective, complete and formalised.  At the same time, though, they have institutionalised problematic behaviours and significant inequalities.

Navigating a New Digital Era Means Changing the World Economic Order” (open access) by Shamel Azmeh, discusses the implications of digital shifts for global economic governance.

DIGITAL HEALTH

Cost-Effectiveness of a Mobile Technology-Enabled Primary Care Intervention for Cardiovascular Disease Risk Management in Rural Indonesia” by Gindo Tampubolon and colleagues demonstrates how to determine the economic impact of m-health.  It calculates the cost-effectiveness of a mobile-based health intervention at c.US$4,300 per disability-adjusted life year averted and US$3,700 per cardiovascular disease event avoided.

Delivering Eye Health Education to Deprived Communities in India through a Social Media-Based Innovation” by Chandrani Maitra & Jenny Rowley aims to develop understanding of the benefits of, and the challenges associated with the use of social media to disseminate eye health information in deprived communities in India.

Using a Social Media Based Intervention to Enhance Eye Health Awareness of Members of a Deprived Community in India” (open access) by Chandrani Maitra & Jennifer Rowley reports on a WhatsApp-based intervention to promote eye health communication in deprived settings. This research highlights the potential benefits of WhatsApp in increasing awareness on eye problems, amongst deprived communities where the disease burden remains very high.

DIGITAL WATER

Digital Innovations and Water Services in Cities of the Global South: A Systematic Literature Review” (open access) by Godfred Amankwaa, Richard Heeks & Alison Browne reviews the literature on digital and water in Southern cities.  It summarises findings to date on implementation and impact and sets out the future research agenda.

How Platforms Change Markets: The Lens of “Institutional Voids”

Void

Do digital platforms change markets for better or worse?

To help understand this, we used the lens of institutional voids in the World Development paper, “Digital Platforms and Institutional Voids in Developing Countries”.  This argues that markets don’t work properly because they have institutional shortcomings or voids: inadequate provision of information, limited matching of buyers and sellers, poor management of transactions, ineffective market regulation, etc.

A promise of digital platforms is that they will fill these voids and change markets for the good.  We investigated this using evidence from Colombia and from the South Africa Fairwork project on taxi markets before and after the advent of three e-hailing platforms: Bolt, EasyTaxi and Uber.

The “before” picture was far from perfect.  Institutional voids led to markets with problems including high costs, crime, insecurity, opportunism, informality and discrimination.  As predicted, the gig economy platforms filled some of the institutional voids that led to this profile.  This reduced costs and risks for both drivers and passengers, improved vehicle and service quality, and enabled employment for those excluded from the traditional market.

Yet, in contrast to past research on business and institutional voids in the global South, we found that void-filling is not all that platforms companies do.  They also maintain some voids, such as lack of information and lack of formal employment status for drivers.  They expand some voids, such as lack of information available to government.  And they create some voids by circumventing the regulatory roles performed by government agencies and driver collective bodies.

The core impact of these additional strategies is to increase the relative power of the platform company vis-à-vis other market stakeholders and to make the market much more unequal.  Going far beyond the typical role of business, platform companies have internalised the institutions for the entire gamut of market functions; collapsing an entire organisational field into themselves.  The previously-distributed and -dissipated institutional power that the platform companies have concentrated into themselves is thus unprecedented, particularly given the duopolistic nature of the markets that are often created.

Filling institutional voids is not wholly beneficial – our research also identified problems caused by the digitalisations and formalisations that platforms bring.  But our key recommendation is a need to identify and address the voids that these companies retain or make.  Actions needed include information provision to address customer–driver asymmetries; revitalised state control over market supply–demand imbalance; new legislation to address lack of employment rights for workers; and more effective worker collectivisation.

Our research represents a novel insight into the relation between platforms, institutions and markets, and we look forward to further work applying these ideas to other sectors and contexts.

Digital Platforms as Development Infrastructure

20 April 2021 1 comment
Óµ±§±ä»¯£­TB2(E)[1]

I’m going to argue here that digital platforms should be understood as development infrastructure[1].

In recent years, there’s been a renewed emphasis on the value and role of infrastructure in international development[2].  Official development assistance for infrastructure has therefore risen but there remains a significant infrastructure financing gap[3].

It may be something of an exaggeration to say, as Paul Collier does, that “the west’s aid agencies ‘pulled out of infrastructure long ago, and started financing social stuff instead. That’s important, but there’s a need to get back to financing the basic [physical and organisational] infrastructure’ because ‘without it countries can’t develop’”[4].  However, while western agencies are still funding infrastructure, it is certainly true that China particularly has stepped in to try to fill the gap left by lack of western funding for development infrastructure; especially via its Belt-and-Road initiative[5].  This gap-filling includes digital infrastructure.

When we think of digital and infrastructure, the focus has been on telecommunications: fibre-optic cabling, mobile networks and the like.  But digital platforms should also be seen as infrastructure.  As development processes digitise and dematerialise, platforms become the “infra-structure” for society: lying beneath and increasingly forming the foundation and site for economic, social and political activity.

Platforms store development assets, just like a grain silo.  Platforms transport development assets, just like a road or railway.  Platforms import and export development assets, just like a port.  Platforms enable transactions of development assets, just like a marketplace.

Digital platforms thus perform the developmental functions not just of physical but also of institutional infrastructure.  For example, as marketplaces, they combine within themselves the institutional infrastructure functions of participant aggregation and certification, transaction facilitation, payment and regulation[6].

The Chinese state has recognised this.  Its Digital Silk Road initiative funds traditional digital infrastructure but it also encompasses support for the spread of Chinese digital platforms to low- and middle-income economies of the global South[7].  These platforms are then becoming a key part of national economic infrastructure in these countries[8]. Will western governments recognise platforms’ infrastructural importance to development?  And, if so, how should and will they respond?


[1] Graphic: https://e.huawei.com/en/publications/global/ict_insights/201810161444/analysts/201906101000

[2] Bhattacharya, A., Romani, M. & Stern, N. (2012) Infrastructure for Development: Meeting the Challenge, London School of Economics; Donaubauer, J., Meyer, B., & Nunnenkamp, P. (2016) Aid, infrastructure, and FDIWorld Development78, 230-245; DFID (2020) International Development Infrastructure Commission Recommendations Report, Department for International Development, UK

[3] UNCTAD (2020) Official international assistance plays a key role in financing for sustainable development, SDG Pulse

[4] Hellowell, M. & Wakdok, S. (2021) Disaster relief, Prospect, March, 48-51

[5] Huang, Y. (2016) Understanding China’s Belt & Road initiativeChina Economic Review40, 314-321.

[6] Heeks, R., Eskelund, K., Gomez-Morantes, J. E., Malik, F., & Nicholson, B. (2020) Digital Labour Platforms in the Global South: Filling or Creating Institutional Voids?, Working Paper no.86, Centre for Digital Development, University of Manchester, UK

[7] Bora, L. Y. (2020) Challenge and perspective for Digital Silk RoadCogent Business & Management7(1), 1804180; Choudary, S.P. (2020) China’s country-as-platform strategy for global influence, TechStream, 19 Nov

[8] Keane, M., & Yu, H. (2019) A digital empire in the making: China’s outbound digital platformsInternational Journal of Communication13, 4624-4641.

Latest Digital Development Outputs (Data, Humanitarianism, Labour, Platforms) from CDD, Manchester

Recent outputs – on Data-for-Development; Digital Humanitarianism; Digital Labour; Digital Platforms – from Centre for Digital Development researchers, University of Manchester:

DATA-FOR-DEVELOPMENT

The Rise of the Data Economy and Policy Strategies for Digital Development” (open access) by Shamel Azmeh, Christopher Foster & Ahmad Abd Rabuh, expands on policy debates around digital development.  It examines the emergence of the data economy and potentials of strategic policy and/or industrial policy in the global South.  Based on a global policy analysis, it identifies four key “policy pathways” by which countries can look to strategically capture value in the data economy.

DIGITAL HUMANITARIANISM

Digital Innovation by Displaced Populations: A Critical Realist Study of Rohingya Refugees in Bangladesh” by Faheem Hussain, P.J. Wall & Richard Heeks, uses a critical realist approach to understand the three mechanisms the underpin digital innovation by Rohingya refugees.

Lessons On The Digital World From The Charity Sector: The Corporate World Has A Lot To Learn” (open access) by Brian Nicholson, Lisa Kidston, Cris Sachikoyne & Dane Anderton, argues that African charitable organisations and those like the national Citizens Advice in England and Wales are leading the way when it comes to demonstrating exemplary digital leadership.

DIGITAL LABOUR AND DEVELOPMENT

Competing Institutional Logics in Impact Sourcing” by Fareesa Malik & Brian Nicholson, draws on the concepts of institutional logics to  present a case study of a USA-based IT outsourcing vendor “AlphaCorp” practising impact sourcing in a Pakistan subsidiary. The findings show that in cases where actors are located in diverse institutional contexts, competing interests determine the respective priority given to the welfare and market logics.

Digital Labour Platforms in Pakistan: Institutional Voids and Solidarity Networks” by Fareesa Malik, Richard Heeks, Silvia Masiero & Brian Nicholson, conceptualises the theoretical link between labour platforms and socio-economic development drawing on the notion of institutional voids and empirical fieldwork in Pakistan.

Risks and Risk-Mitigation Strategies of Gig Economy Workers in the Global South” by Tatenda Mpofu, Pitso Tsibolane, Richard Heeks & Jean-Paul Van Belle, analyses three strategies (platform-, driver- and driver group-led) that seek to mitigate the risks of ride-hailing work in Cape Town.

The Fairwork Foundation: Strategies for Improving Platform Work in a Global Context” (open access) by Mark Graham, Jamie Woodcock, Richard Heeks, Paul Mungai, Jean-Paul Van Belle, Darcy du Toit, Sandra Fredman, Abigail Osiki, Anri van der Spuy & Six M. Silberman, introduces the work of the Fairwork Foundation to rank and compare gig work platforms against a set of five decent work principles.

DIGITAL PLATFORMS AND DEVELOPMENT

Analysing Urban Platforms and Inequality Through a ‘Platform Justice’ Lens” by Richard Heeks & Satyarupa Shekhar, introduces a model of “platform justice” through which to analyse the impact of urban digital platforms.

Competing Logics: Towards a Theory of Digital Platforms for Socio-economic Development” by Silvia Masiero & Brian Nicholson, seeks to contribute to the nascent literature on platforms in development, unpacking a human-centred development logic as an alternative to the market logic that animates most of the platforms discourse and relying on it to lay the foundations for an emerging theory of platforms for development.

Digital Platforms, Surveillance and Processes of Demoralization” by Sung Chai, Brian Nicholson, Robert Scapens & Chunlei Yang, conceptualises the theoretical link between platforms and morality drawing on an interpretive study of a hotel in Vietnam to examine surveillance.

Revisiting “Leapfrogging” in a Platformised World

11 January 2021 Leave a comment

What difference do digital platforms make to the long-standing argument about “leapfrogging” of development by developing countries?[1]

The idea that latecomer nations could accelerate their passage through development stages via use of new technology has been around for decades[2].  It was no surprise, then, that leapfrogging played at least some part in turn-of-the-century cheerleading for the role that ICTs could play in development[3].  And statistics bore out the concrete example of global South countries jumping fairly quickly to mobile phone-based telecommunications infrastructure during the 2000s and 2010s, having invested much less in relative terms in the previous generation of landline infrastructure than countries in the global North[4].

The flaw in much of the simplistic thinking about technology and leapfrogging is that technology never acts alone in development; it always forms part of a socio-technical system[5].  Lower-income countries might be able to move more quickly than higher-income countries to a more-recent generation of technology.  But they could not repeat the same trick with the social part of their systems.

One way of understanding why the “social part of their systems” constrained development was to identify institutional shortcomings – often called “institutional voids” – that particularly meant developing country markets could be inefficient, ineffective, incomplete and/or inequitable.  While ICTs always had institutional effects, these were limited, with lack of institutional change acting as the brake that prevented economic leapfrogging.

In the past few years, though, this picture has changed with the arrival of digital platforms as an important force in development.  Digital platforms much more readily fill institutional voids than prior ICT-based systems.  They not only provide cheaper and better information, they form the entire institutional infrastructure for new markets; not just the transactional infrastructure but the regulatory infrastructure as well[6].

So digital platforms, being much more complete socio-technical systems than earlier ICTs, can offer developing countries a route for leapfrogging.  Yes, local context matters and platform implementation can be a bumpy road so a platform is not quite “market in a box”.  But, for example, e-hailing platforms have helped dozens of Southern cities quickly improve taxi markets that were beset by insecurity, high costs, long wait times, etc – problems that had existed for years without resolution.

But if leapfrogging, at least in terms of some markets, is now more feasible; exactly what are developing countries leapfrogging to?  The new platform-based markets are more efficient, safer, with less opportunistic behaviour.  But they are also more unequal and less democratic as the platform becomes marketplace, manager, adjudicator, enforcer and regulator all rolled into one; eliminating roles for government, unions, and other stakeholders[7].

Platforms may be offering an opportunity for leapfrogging but they come with a caveat: be careful where you leap.


[1] With acknowledgements to Anne Njathi for asking the questions about leapfrogging that led to this post.

[2] See e.g. Goldschmidt, A. (1962) Technology in emerging countries. Technology and Culture, 3(4), 581-600.

[3] See e.g. World Bank (1998) World Development Report, World Bank, Washington, DC; InfoDev (2000) The Networking Revolution: Opportunities and Challenges for Developing Countries, World Bank, Washington, DC; Steinmueller, W. E. (2001) ICTs and the possibilities for leapfrogging by developing countries. International Labour Review, 140, 193.

[4] UNCTAD (2018) Leapfrogging: Look Before You Leap, UNCTAD, Geneva.

[5] See e.g. Wade, R.H. (2002) ‘Bridging the digital divide: new route to development or new form of dependency?’, Global Governance, 8, 443-466; Alzouma, G. (2005) Myths of digital technology in Africa: Leapfrogging development?. Global Media and Communication, 1(3), 339-356; Kenny, C. (2006) Overselling the Web?: Development and the Internet, Lynne Reiner Publishers, Boulder, CO

[6] Heeks, R., Eskelund, K., Gomez-Morantes, J.E., Malik, F. & Nicholson, B. (2020) Digital Labour Platforms in the Global South: Filling or Creating Institutional Voids?, GDI Digital Development Working Paper no.86, University of Manchester, UK

[7] Heeks, R., Eskelund, K., Gomez-Morantes, J.E., Malik, F. & Nicholson, B. (2020) Digital Labour Platforms in the Global South: Filling or Creating Institutional Voids?, GDI Digital Development Working Paper no.86, University of Manchester, UK

Latest Digital Development Outputs (Agriculture, Data, Social Media) from CDD, Manchester

18 November 2020 Leave a comment

Recent outputs – on Agricultural Platforms; Data-for-Development; Social Media and Education – from the Centre for Digital Development, University of Manchester:

AGRICULTURAL PLATFORMS:

Ag-Platforms in East Africa: National and Regional Policy Gaps” (pdf) by Aarti Krishnan, Karishma Banga & Joseph Feyertag identifies national and regional governance deficits (gaps) in the diffusion of digital agricultural platforms, and consequently how Ag-platforms bridge national and regional policy gaps.

Platforms in Agricultural Value Chains: Emergence of New Business Models” (pdf) by Aarti Krishnan, Karishma Banga & Joseph Feyertag explains the various models of digital agricultural platforms that exist, and provides policy-makers with a roadmap that supports the proliferation of sustainable Ag-platforms.

DATA-FOR-DEVELOPMENT:

Datafication, Value and Power in Developing Countries” by Richard Heeks, Vanya Rakesh, Ritam Sengupta, Sumandro Chattapadhyay & Christopher Foster analyses the implementation challenges and impact of big data on organisational value, sources of power, and wider politics.

Identifying Potential Positive Deviants Across Rice-Producing Areas in Indonesia: An Application of Big Data Analytics and Approaches” (open access) by Basma Albanna, Dharani Dhar Burra & Michael Dyer uses remote sensing and survey data to identify “positive deviant” rice-farming villages in Indonesia: those which outperform their peers in agricultural productivity.

The Urban Data Justice Case Study Collection” (open access) presents ten case studies analysing new urban data in Latin America, Africa and Asia from data justice/rights perspectives.  It also outlines a future research agenda on urban data justice in the global South.

SOCIAL MEDIA AND EDUCATIONAL DEVELOPMENT

WhatsApp-Supported Language Teacher Development: A Case Study in the Zataari Refugee Camp” (open access) by Gary Motteram, Susan Dawson & Nazmi Al-Masri through a thematic analysis of WhatsApp exchanges, explores how Syrian English Language teachers working in refugee camps in Jordan work collaboratively on teacher development.

How Widespread are Digital Water Payments in Ghana?

Digital systems are seen as important elements in the governance and management of the water sector. For instance, systems such as digital meters, IoT applications, digital payments, etc can significantly improve aspects of water service delivery and access. But are these new technologies widely adopted as yet, particularly in the global South context?

The open access paper Diffusion of Electronic Water Payment Innovations in Urban Ghana. Evidence from Tema Metropolis” explores aspects of this question; looking specifically at uptake of electronic water payments (EWP) in Ghana. Drawing on data from water utility customers and the utility’s own database, three main conclusions emerged.

i. EWP adoption is very low (below 3%) though many utility customers were aware of these payment options. 

ii. The growth of EWP uptake in urban Ghana is rapid (annual growth rate of 41% from 2017-2018), but from a low base.

iii. Awareness and potential uptake of these payment options were significantly associated with customers’ age, employment status, income, and means of receiving monthly water bills. EWP awareness was higher among elderly customers perhaps since they constitute a larger portion of people with utility pipeline connections from the study. Also, awareness was higher among utility customers with higher income, those employed and those who receive their water bills through electronic channels i.e. SMS or email. 

Explanations of why adoption rates are low range from behavioural to transaction fees to technological challenges. However, mobile phone ownership and mobile money usage may not be significant predictors or barriers to EWP uptake given universal mobile phone ownership by customers, and widespread use of mobile money.

Some actions to take to improve adoption include:

  • Developing specific guidelines and engagements that target unaware sections of the population, particularly low-income customers through advertising of payment solutions etc. 
  • Understanding prevailing baseline characteristics of targeted customers before rollout of these innovations. Also, these innovations should be piloted before upscale.

Notwithstanding the barriers that currently exist, it can be seen from this example that digital innovations in the water sector are on the rise. Beyond understanding adoption issues, we will increasingly need better evidence on the impact of such innovations in the global South: not just digital payments but also applications across the water value chain, from water sourcing to end-use. I look forward to examining the experiences and impacts of these innovations in an ongoing project.

Data, Platforms and Power

19 February 2019 Leave a comment

We know that digital platforms can be very powerful, but how does their use of data relate to power?

In three ways[1] that derive from the datafication and digitisation affordances of platforms:

  1. Addressing Information Failure. Platforms succeed in part by finding ways to overcome information failures in existing markets. These failures may be sources of power for incumbents. For example, estate agents (realtors) hold power in real estate markets due to information asymmetries; such as knowledge of house sale prices.  Real estate platforms put such data into the public domain, thus undermining the power of incumbents.  Information failures may also be a source of weakness in existing markets.  For example, riders with traditional taxi firms don’t know exactly when their cab will arrive.  Platforms provide such data and so, again, undermine incumbents.

 

  1. Mashing Up. As they deal with digitised data, platforms can gain power by integrating different data streams onto the platform. Real estate platforms integrate online information about neighbourhoods.  Ride-hailing platforms integrate online maps to show cab location and routes to riders and drivers.

 

  1. Controlling New Data. By digitising transactions and associated processes, platforms create, capture and control new data. This bolsters their power; typically by creating new information asymmetries: the platforms know things that others don’t.  Real estate platforms can monitor search behaviours of buyers to understand more about which features of house listings they value most.  Ride-hailing platforms understand spatio-temporal patterns of supply and demand alongside many other behavioural characteristics of riders and drivers.

 

This simple framework can usefully be applied in order to analyse the role of data in platforms, and its contribution to power.

 

[1] Categorisation and examples developed from Drouillard, M. (2017) Addressing voids: how digital start-ups in Kenya create market infrastructure. In: Digital Kenya, B. Ndemo and T. Weiss (eds). London: Palgrave Macmillan, 97–131

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