How the effects of ‘scaling’ by Big Techs can be mitigated….
As horizontal or extensive progress, in other words Globalization is being derived in multiples as a result of vertical or intensive progress (Technological Advancement), we are gradually witnessing a consolidation of sectors, industries, technologies, and markets by Tech Oligopolies (FAANG) as well as their 2nd tier comrades who run the affairs of the world from the top of the food chain. What does that even mean?!, another conspiracy theory?, well let’s start from the basics. One thing we all agree on is that the world is constantly being divided into the developed and developing/emerging economies, and so overtime, we have stepped up with the belief that, as technology decentralizes, developing countries would someday grow to ‘catch up with trends’.
Now this is what a lot of people don’t agree on. The more technological capabilities are being developed and markets become predictably homogenous, and Big Tech expands into markets with little or no barriers to entry, the lesser chances are there for infant, local companies to take initiatives to growing it’s GDP, per capita income and social welfare of her people, as well as protect it’s soveriegnity in terms of data protection and social behaviors. Infant industries in emerging markets aren’t in themselves lazy to drive innovations and inventions, whether from tinkering around crude mechanical or electrical hardwares to infusing high tech like AI and Big data to solving peculiar challenges, to transforming code writing into indegenous languages. As soon as a proof of concept or MVP has been achieved along with a potentially viable market in this developing markets, the oligopolies leave nothing to chance in ensuring that they expand into those markets, by paying no respect to patents or intellectual properties, but rather pay their way into the offices of policy makers, again, infringement on sovereignity.
This kind of subliminal hostile takeover has been deduced to silencing local competitors, both active and aspiring (as Big Tech takes up a big pile of the available market share), thus limiting the threshold of innovativeness and healthy competitiveness in that market, as well as talent drain.
Let’s take Facebook as a case in point, if Facebook had to expand to or operate in Africa (let’s assume they haven’t so already and analyse them with their current capabilities), it may choose to do so on certain stringent terms, such as integrating its API with;
1. An African based social media platform (to liaison with its social media feature),
2. An E-commerce platform (to liaison with its Facebook for Business feature),
3. An AdTech platform (to liaison with its Advertising and marketing feature),
4. A Fintech platform (to liaison with its Facebook Pay feature)
All of which will equally assure seamless experience, data protection and tailored cost. And since Facebook’s dominance in the local market will be solely based on the growth of this partnered local firms, this will drive other local innovators who stand to contend with Facebook for market share in Africa to build and scale up. With the upward shift of this trend, let’s expect to see local innovators begin to take iniatives to exporting their products and services. The API economy could be the bridge as well as safe haven for emerging markets.
Like every other past industrial revolution, endurance and consistent advancement through trial and error was the focal point. The same principles should be applied to emerging markets that truly value soveriegnity. Yes, technology is a major accelerator but these markets should be deviod of whatsoever pressure it gets from the global community, they should be tasked with giving themselves TIME to build sustainably, ethically and constructively.
