Power and public good
Most governments, as agents of power, bother about creating and maintaining public good only so far as it helps the cause of those in power. Governments are shaped by the need of those in power to remain in power. Govt can afford to bother about public good only when the electorate is wide enough – when there are many essential and influentials. (Refer ‘The dictator’s handbook‘ for the concept, or this video for a quicker appreciation of it.)
With the rise of digital platforms we have seen rise of super rich, super powerful corporations and individuals. Their rise has contributed to the the deepening of inequality. They have boldly ‘disrupted’ lives of many for concentrated profit for a few people. Economically, platforms are disenfranchising people while creating a few super powerful elites.
What does it mean for democratic power?
Rising inequality means fewer ‘essentials’ needed for rulers to remain in power. (In a dictatorship typically, there is a ruler, a few essentials and many ‘interchangeables’: Whereas in a democracy, there is no absolute ruler, ideally there are many influencers, many essentials and few interchangeables.) Rising inequality directly affects the power and leverage that people hold. It leads to dictatorial power relationships. In a sense, in the domains of knowledge, markets and online relationships, Google, Amazon & Facebook are quite dictatorial, even if their beliefs are egalitarian. They can dictate the terms of accesses to their services. Indeed, have you ever thought of disagreeing to their ‘terms of conditions’? Is there a space to negotiate? and what happens when you start depending on these services completely, but cannot engage with these services meaningfully to negotiate with them?
When power relations are conducive for dictatorships, why would governments or corporates bother about the public good? What incentive do they have?
Platform monopolies are a threat to democracies. The possible knee jerk reaction to their hegemony, would be as well.
Facebook, Google, Amazon… are behemoths shaping our world. They are doing so not for public good, but rather private gains. Consider Amazon’s stock market performance for example. Why would people be investing in a loss making company? They are doing so for the long punt. People are investing in a monopoly of tomorrow in the form of Amazon. They are investing in Bezos’ vision of a complete monopoly. They want a piece of that monopoly’s obscenely fat profit. That is why investors allow him to put all the money at its disposal to expand its reach and locking consumers in its value chain. Consider the impending value explosion when Amazon can start leveraging the IOT (Internet of things) at its disposal – usage, user preferences, supply chain intelligence, user financial wherewithal, spy called alexa, vendor data… It is about to become the single biggest market that consumers across the world would have to deal with. It will not make economical sense for consumers to pursue an alternative. Amazon plans to be the default platform of economic exchange. Do you really want the complete global market to be owned by a few individuals?
Amazon hopes to become the ONLY global market platform for a majority of earthlings.
Similarly – Google is almost the ONLY global definitive knowledge and information platform.
Facebook hopes to be the ONLY global online relationship building platform.
Thank god, Uber faltered and hopefully can’t be the ONLY mobility platform.
Uber faltered because it very visibly threatens existing economic exchanges and consequently current livelihoods. It is visibly pitting one labour force against another. Amazon does too, though it is surprising that it hasn’t faced public wrath yet. Wars have happened for lesser losses of power & economic leverage. Consider the Knights Templar in 13th Century, the early European Banking Platform. They were burned at the stake by France’s king then, to take back the financial leverage that he had ceded to them. It is not 13th Century anymore, but it isn’t an utopia either. There are massive number of people who are getting left behind with the platform revolution and they are bound to react, in modern ways perhaps, hopefully peacefully, but there will be a reaction.
The most plausible reaction could be regulations. There is a trade-off there. The libertarian ideals of most of these platform owners meant that the digital realm was a egalitarian & non-judgemental space for conversations, exchanges. That libertarian ideal is under threat from regulations. China has successfully managed to create an internet for its citizen that is heavily censored and spied through. Unfortunately, other governments would be just as keen to use the economic loss to legacy businesses due to platforms as an excuse to change the nature of platform instead – from trustworthy exchanges to tools of surveillance.
Understanding the power of platforms
I define platforms as enabling environments/ infrastructures, that –
- Gives egalitarian access to other people/ services through
- Unique and valuable exchanges that would not be possible outside of that platform
- And allow people to improve upon, enrich the platform – either with APIs or engagement
Historically, such platforms were either pre-existing, or created and maintained by governments or community collectives. No private enterprise had the incentive or wherewithal to create platforms. Consider a road that gives access to people to move through that would not have been possible without it – a road is a platform then. It was cost intensive to build, so governments built it. It was a public good. It was part of the ‘commons’.
Consider a river. Communities access water for their use through it. Communities built dams, turbines, irrigation channels for the benefit of the collective. As such, a river is a platform for access to water that is also a part of ‘commons’. No one, in right conscience, would think of owning it.
Consider the 6 inch of top soil that the earth is blessed with. Without it humanity would not have existed. It is the platform of food supply. It enables farming, forests and the food cycle. No one can own it, unless they want to destroy humanity.
Consider the renewable energy decentralised grid that is powering much of Denmark. In this grid, people with solar panels installed on their roofs, sell their surplus electricity to the grid and can tap into that grid electricity when they are in want. Now this is a platform with an exchange of electric power too. Many private companies facilitated its creation, installation and maintenance. However, they don’t stake a claim on the electricity thus generated. They understand themselves as enablers, not usurpers or rent-seekers.
Soil, water, electricity, roads… these are fundamentally empowering platforms, the access to which is a fundamental human right.
In the 21st century, similar access to knowledge, financial exchange, access to markets, relationships-at-distance… are all fundamental human rights.
Can you imagine a life today without being plugged into these various platforms? Such a life is possible, but it would be very disadvantageous for the minority activist. Without access to google & FB powered intelligence and communication, without amazon’s substantially cheaper goods, without uber’s efficient mobility, without convenience of credit cards/e-money, the minority activist is at a severe disadvantage.
So if these accesses are that crucial, can we trust them with far removed private interests? Typically, a white male from California is embedding his biases in these platform’s algorithms. A few of these men own the vast platforms that men and women from the farthest corners of the globe depend on. Even if they were to be epitome of moral righteousness (which they clearly aren’t), they are still just individuals amenable to influence of their investors, their immediate social circle, the government where they operate from. Consider Facebook’s misuse to influence election in US for example.
There is a fundamental conflict of interest. Lack of subjectivity allows for evils such as hate speech to gain access. But imposing a certain subjectivity curtails freedom of speech for another set of people, perhaps as an unintended consequence. There is no easy way out of this catch-22 situation. Consider the example of facebook banning breastfeeding pictures. It had to #freethenipple eventually. But the same issue will get vastly different responses in more conservative countries. How does a global platform manage such differences? Facebook is trying its luck with denial – “we are not a media company“.
But soon enough, it will have to take sides. Like when Scott Galloway implies for it to be American first!
In his otherwise excellent talk here exhorting these big platforms to be broken up, he brings in nationalism and suggests a smaller solution – to break them up. If global platforms earn revenues through global operations, why should they put any one nation first? Why should they prioritise paying tax in one country? They must give back in every country where it gains from. To be a global entity is to be globally accountable, globally responsible, globally adaptable.
Secondly, the solution of breaking the companies up – is inadequate. If the ownership does not change, what difference does it make if Zuckerberg presides over one large corporate or a dozen smaller ones to the same effect?
Besides, the integration of amazon, aws, alexa etc makes sense. It makes markets more efficient. The aggregate efficiency due to integration increases, which is good news for Humans who are going to soon suffer with human-excess-led climate change.
Scott Galloway has a soft corner for capitalism and its potential. He doesn’t want to see the obvious socialist ramifications of his argument.
Platforms as commons ruled by the principle of self-rule
The integrated platforms are powerfully useful for all. They should not be broken up. The ownership has to be broken up. More accurately, they should not be privately owned at all. Private ownership creates disparity of wealth, invites biases and prioritizes innovations that serve the needs of elite, instead of the majority. And unlike other businesses, platforms are critically important for civic life. Would you want water, road or soil to be privatised? For the 21st century that list will include mobility, relationship, intelligence and market platforms too.
Ideally Bezos, Zuck and Sergey should create a plan to divest their companies’ ownership to the commons. They should steward their companies into becoming true platforms relinquishing their direct control. If Buffett and Bill Gates can give away their wealth, why can’t these platform makers instead give away control? Keep the wealth created thus far. Let the future wealth go into commons to make the platforms more resilient, useful and responsive to the diversity of the global exchanges.
Imagine all these platforms employing open source principles, becoming openly accessible, and evolving with the people they serve.
Imagine, all cab drivers, logistic companies, courier companies having access to the Uber algorithm, modified to serve their needs; modified to give every driver and rider a say in formulating the policies that govern them and others like them in their locality. Imagine, all businessmen and individuals with access to amazon-based markets, governed by direct digital referendum based consensus making.
Amazon and Uber cut out the middle men. In turn they themselves became giant middlemen. It is time we do away with them too.
A solution like this would not have been possible 5 years ago. But with blockchain technology, there is a potential for mass democratic participation in platform management.
Blockchain based democratic platform management
Blockchain is an elegant solution to an important societal problem Earth is facing. It’s most promising feature is its ability to enable strangers to cooperate and trust each other. It enables ‘decentralised consensus’. This is a powerful ability that, I believe, has the biggest possible impact in democratic processes in every aspect of civic enterprise.
This technology would enable governing of platform by direct participation and consensus among users and vendors possible.
Watch this interesting documentary by Mr. Jeremy Rifkin. He talks about the three essential enterprises that shape us – energy, communications and mobility. And with digital technology and principles of open source, humanity can finally increase the aggregate efficiencies, productivity of human enterprise and bring down marginal costs of these enterprises down to almost zero. Why does this matter? Because, without this idea, we are at an economic and ecological dead-end.
Again like Mr. Scott Galloway, Mr. Rifkin too is afraid to unsettle the capitalists and shies away from taking his argument to logical conclusion. (look how he cleverly deflects the TTIP question. I won’t hold it against him though. He has a great idea and he needs to sell that idea to humanity. Tact is more powerful than hardheadedness when you want to bring about real change.)
Now consider this – every conceivable platform – energy platform, utilities platform, knowledge platform, mobility platform, market platform… Consider all platform are components of collectively owned infrastructure for humanity. Like with renewable energy platform in Europe, there might be an initial cost that consumers and vendors would have to pay in the form of taxes to help build them or buy them off. But then the marginal cost of running them in the future is minimal.
Imagine that world – People being able to access platform services in their context whenever they want, on their terms and without the fear of losing control of one’s own agency, one’s own destiny.
I believe that that would be a better world – a world which won’t depend on a single currency (read the first section on the link to understand why single currency ‘money’ is not that good an idea). The integrated platforms would enable seamless exchanges of products and services, the utility of the individual to the collective becoming the currency du jour.
The world would not need the ‘universal basic income’ that is being touted now as the solution to the impending mass class of ‘useless people’ and the Goliathan inequality that AI revolution will engender. If we charter an integrated platform access to all humanity as a human right, we will, in a sense, enable basic welfare of all individuals. Rifkin’s view of bringing the marginal cost down to zero is critical here… which means that there is gradual upfront cost of creating that infrastructure, that integrated platform of platforms. But once that is done, the costs would be manageable.
To make it a reality, it will require a ‘disruptive’ shift in corporate ownership, structures of governance and redrawing of notional national boundaries. All tall orders. It is a humongous project that would pan the globe and require cooperation among all governments. Not an easy task at all. But I am convinced of it being an essential disruption. Let me know if you have a better idea.
