The age-old sharing economies of Africa -- and why we should scale them
-
0:01 - 0:02So what I'm doing
-
0:03 - 0:07is a thought experiment.
-
0:08 - 0:11Now you may know of or have read
-
0:11 - 0:12this book by this guy.
-
0:12 - 0:16It's probably the first
and maybe the only bestseller -
0:16 - 0:18ever written about economics.
-
0:18 - 0:21And you probably know a bit
about what it says. -
0:22 - 0:28It talks about how nations
all over the world will prosper -
0:28 - 0:32through the individual pursuit
of individual profit. -
0:32 - 0:37Individual profit will be the mechanism
for the prosperity of the world. -
0:38 - 0:40But the funny thing about Adam Smith
-
0:40 - 0:43is that he was a stay-at-home kind of guy.
-
0:43 - 0:46He actually never went
further from Edinburgh -
0:46 - 0:49than France and Switzerland.
-
0:50 - 0:54So my thought experiment is to imagine
-
0:54 - 0:57what would have happened
if Adam Smith had visited Africa. -
0:59 - 1:03And fortunately, there's
actually an easy answer, -
1:04 - 1:09because the Arab lawyer
and traveler Ibn Battuta -
1:10 - 1:14traveled down the east coast
of Africa in the 14th century, -
1:15 - 1:17and what he found when he got
to Mogadishu was a market, -
1:17 - 1:19and he wrote about it.
-
1:19 - 1:23And basically, merchant ships
came to the harbor, -
1:23 - 1:25and they weren't even allowed to land.
-
1:25 - 1:27They had to drop anchor in the harbor,
-
1:27 - 1:28and boats came out to them,
-
1:28 - 1:33and locals picked them and said,
"You are my guest, I am now your broker." -
1:34 - 1:38And they had to do business
through the local broker, -
1:38 - 1:41and if they went around that
and didn't do business through the broker, -
1:41 - 1:46they could go to court,
and the deal would be canceled, -
1:46 - 1:48and they would be thrown out of town.
-
1:48 - 1:50And through this mechanism,
everyone prospered. -
1:52 - 1:54And so if that was Adam Smith,
he might look like this guy -
1:54 - 1:58and say, "Ah! That's a mutual aid society.
-
1:58 - 2:01That's a share-the-wealth free market."
-
2:01 - 2:03And when I put this question
to Christian [Benimana], -
2:03 - 2:07who had the stage
at the beginning of this session, -
2:07 - 2:10he responded that if Adam Smith
had come to Africa, -
2:10 - 2:14there would have been a sharing economy
long before Airbnb and Uber. -
2:14 - 2:15And that's true.
-
2:16 - 2:19So if we put this to work today,
-
2:19 - 2:21it would be very interesting.
-
2:21 - 2:23There would be a lot of money
flowing into the countries. -
2:24 - 2:29These are just figures of 10 percent
of exports in these countries. -
2:30 - 2:36So the interesting thing is that
this mutual aid economy still exists, -
2:36 - 2:40and we can find examples of it
in the strangest places. -
2:40 - 2:42So, this is Alaba International Market.
-
2:42 - 2:47It's the largest
electronics market in West Africa. -
2:47 - 2:48It's 10,000 merchants,
-
2:48 - 2:51they do about four billion dollars
of turnover every year. -
2:51 - 2:54And they say they are
ardent apostles of Adam Smith: -
2:54 - 2:57competition is great,
we're all in it individually, -
2:57 - 2:58government doesn't help us.
-
2:59 - 3:02But the interesting reality is
that when I asked further, -
3:02 - 3:05that's not what grew the market at all.
-
3:06 - 3:09There's a behind-the-scenes principle
-
3:09 - 3:13that enables this market to grow.
-
3:13 - 3:17And they do claim -- you know,
this is an interesting juxtaposition -
3:17 - 3:20of the King James Bible
and "How To Sell Yourself." -
3:20 - 3:23That's what they say is their message.
-
3:23 - 3:27But in reality, this market
is governed by a sharing principle. -
3:28 - 3:32Every merchant, when you ask them,
"How did you get started in global trade?" -
3:33 - 3:36they say, "Well, when
my master settled me." -
3:36 - 3:40And when I finally got it into my head
to ask, "What is this 'settling?'" -
3:40 - 3:43it turns out that when you've
done your apprenticeship -
3:43 - 3:45with someone you work for,
-
3:45 - 3:49they are required -- required --
to set you up in business. -
3:49 - 3:51That means paying your rent
for two or three years -
3:51 - 3:53and giving you a cash infusion
-
3:53 - 3:56so you can go out in the world
and start trading. -
3:57 - 4:00That's locally generated
venture capital. Right? -
4:00 - 4:03And I can say with almost certainty
-
4:03 - 4:08that the Igbo apprenticeship system
that governs Alaba International Market -
4:08 - 4:14is the largest business incubator
platform in the world. -
4:15 - 4:18And there are other sharing
economies that we look for -- -
4:18 - 4:22merry-go-rounds, which are found
in almost every shantytown. -
4:22 - 4:25They have different names in
other cultures; this is the Kenyan name. -
4:25 - 4:27It's a way of generating cash.
-
4:27 - 4:30It's a kitty -- people throw money
into a pot once a week, -
4:30 - 4:32and once a week, one member
of the group gets the money, -
4:32 - 4:34and they can spend it on
whatever they need to. -
4:34 - 4:37And there's also something
called "acequias," -
4:37 - 4:41and that is a Spanish word, but it
comes from the North African Arabic; -
4:41 - 4:43"saqiya" means "water wheel."
-
4:43 - 4:48And what the acequia is
is a sharing system for scarce water. -
4:48 - 4:51It's migrated from North Africa to Spain,
-
4:51 - 4:54and from Spain to the west
of the United States, -
4:54 - 4:55where it still is used.
-
4:56 - 5:00And it shares water by need
-
5:00 - 5:02rather than by who was there first.
-
5:03 - 5:07And contrary, with all due respect,
to what Llew [Claasen] said -
5:07 - 5:12when he talked about blockchains
and cryptocurrencies yesterday, -
5:12 - 5:15there is no tragedy of the commons.
-
5:15 - 5:20People in acequias have been
commonly managing scarce water resources -
5:20 - 5:23for hundreds and hundreds
and hundreds of years. -
5:25 - 5:29So taking this thought experiment,
I wanted to go a little bit further -
5:29 - 5:36and suggest that these things
are managed communally, -
5:36 - 5:42and they are taking care of
scarce capital, scarce cash -
5:42 - 5:44and scarce resources.
-
5:45 - 5:50And it seems to me that we have
actually two kinds of capitalism. -
5:51 - 5:55We have the capitalism of the top up.
-
5:55 - 5:57And these are really
interesting statistics, -
5:57 - 6:04because three one-thousandths
of one percent of the Nigerian population -
6:04 - 6:09controls wealth equal to one-fourth
of the GDP of the country. -
6:10 - 6:13One one-hundredth of one percent
of the Kenyan population -
6:13 - 6:19controls wealth equal to 75 percent
of the GDP of the country. -
6:19 - 6:22That's the capitalism of top up.
-
6:23 - 6:26And everyone else is with this guy,
-
6:26 - 6:28selling board games
and bodybuilding equipment -
6:28 - 6:31in a go-slow on the highway in Lagos.
-
6:31 - 6:35And when you're selling board games
and bodybuilding equipment in a go-slow, -
6:35 - 6:40that traffic jam is really,
really, really bad, right? -
6:40 - 6:42Those of us in this sphere of the economy
-
6:42 - 6:46are caught in what I call
"the capitalism of decay," -
6:46 - 6:50because there's no way
to rise up and get out of it, -
6:50 - 6:53because they're lacking the resources
that we talked about -
6:53 - 6:55in those sharing economies.
-
6:55 - 6:57And they're tripped up
-
6:57 - 7:02by the thesis of cassava and capitalism,
-
7:02 - 7:06that cassava has to be processed
in order not to be poisonous, -
7:06 - 7:09and I would argue that, similarly,
-
7:09 - 7:14the market economy needs to be processed
in order to be fair to everyone. -
7:17 - 7:21So we have to look at what I call
the "bottom down economy." -
7:21 - 7:25These are these sharing models
that exist out there -
7:25 - 7:30that need to be propagated
and used and scaled. -
7:30 - 7:31OK?
-
7:31 - 7:33And if we propagate these things,
-
7:33 - 7:36we can begin to bring
infrastructure to everyone, -
7:37 - 7:40and that will ensure that communities
-
7:40 - 7:42are leading their own development,
-
7:44 - 7:46which is, I believe, what
we need in the world, -
7:46 - 7:48and, I would suggest,
what we need in Africa. -
7:50 - 7:53I wanted to quote Steve Biko,
-
7:53 - 7:56and I thought it was really
important to quote Steve Biko, -
7:56 - 8:00because next month,
September 12 to be exact, -
8:00 - 8:05is the 40th anniversary of his murder
by the South African state. -
8:06 - 8:08And you can read the quote.
-
8:08 - 8:11He basically said that
we're not here to compete. -
8:12 - 8:16And I love this quote: "... to make us
a community of brothers and sisters -
8:16 - 8:19jointly involved in the quest
for a composite answer -
8:19 - 8:21to the varied problems of life."
-
8:22 - 8:25And he also said that
"the great powers of the world -
8:25 - 8:29have done wonders in giving us
an industrial and military look, ..." -
8:29 - 8:33and we don't have to copy
that military-industrialist complex, -
8:33 - 8:35because Africa can do things differently
-
8:35 - 8:39and restore the humanity of the world.
-
8:40 - 8:42And so what I want to suggest here
-
8:43 - 8:45is that we have an opportunity,
-
8:46 - 8:50that we are all here
in the mutual landscape -
8:51 - 8:52to be able to do things,
-
8:54 - 8:56and that the journey starts now.
-
8:57 - 8:58Thank you very much.
-
8:58 - 9:01(Applause)
- Title:
- The age-old sharing economies of Africa -- and why we should scale them
- Speaker:
- Robert Neuwirth
- Description:
-
From rides to homes and beyond, we're sharing everything these days, with the help of digital tools. But as modern and high-tech as the sharing economy seems, it's been alive in Africa for centuries, according to author Robert Neuwirth. He shares fascinating examples -- like apprenticeships that work like locally generated venture capital and systems for allocating scarce water -- and says that if we can propagate and scale these models, they could help communities thrive from the bottom up.
- Video Language:
- English
- Team:
- closed TED
- Project:
- TEDTalks
- Duration:
- 09:14
Brian Greene edited English subtitles for The age-old sharing economies of Africa -- and why we should scale them | ||
Brian Greene edited English subtitles for The age-old sharing economies of Africa -- and why we should scale them | ||
Brian Greene approved English subtitles for The age-old sharing economies of Africa -- and why we should scale them | ||
Brian Greene edited English subtitles for The age-old sharing economies of Africa -- and why we should scale them | ||
Camille Martínez accepted English subtitles for The age-old sharing economies of Africa -- and why we should scale them | ||
Camille Martínez edited English subtitles for The age-old sharing economies of Africa -- and why we should scale them | ||
Camille Martínez edited English subtitles for The age-old sharing economies of Africa -- and why we should scale them | ||
Joseph Geni edited English subtitles for The age-old sharing economies of Africa -- and why we should scale them |