ChapterPDF Available

African Economies: Simply Connect? Problematizing the Discourse on Connectivity in Logistics and Communication

Authors:

Abstract and Figures

Investigations of what increasing digital connectivity and the digitalization of the economy mean for people and places at the world's economic margins. Within the last decade, more than one billion people became new Internet users. Once, digital connectivity was confined to economically prosperous parts of the world; now Internet users make up a majority of the world's population. In this book, contributors from a range of disciplines and locations investigate the impact of increased digital connectivity on people and places at the world's economic margins. Does the advent of a digitalized economy mean that those in economic peripheries can transcend spatial, organizational, social, and political constraints—or do digital tools and techniques tend to reinforce existing inequalities? The contributors present a diverse set of case studies, reporting on digitalization in countries ranging from Chile to Kenya to the Philippines, and develop a broad range of theoretical positions. They consider, among other things, data-driven disintermediation, women's economic empowerment and gendered power relations, digital humanitarianism and philanthropic capitalism, the spread of innovation hubs, and two cases of the reversal of core and periphery in digital innovation. ContributorsNiels Beerepoot, Ryan Burns, Jenna Burrell, Julie Yujie Chen, Peter Dannenberg, Uwe Deichmann, Jonathan Donner, Christopher Foster, Mark Graham, Nicolas Friederici, Hernan Galperin, Catrihel Greppi, Anita Gurumurthy, Isis Hjorth, Lilly Irani, Molly Jackman, Calestous Juma, Dorothea Kleine, Madlen Krone, Vili Lehdonvirta, Chris Locke, Silvia Masiero, Hannah McCarrick,Deepak K. Mishra, Bitange Ndemo, Jorien Oprins, Elisa Oreglia, Stefan Ouma, Robert Pepper, Jack Linchuan Qiu, Julian Stenmanns, Tim Unwin, Julia Verne, Timothy Waema
Content may be subject to copyright.
A preview of the PDF is not available
... India's economic growth on the basis of export-oriented services has inspired policy-makers elsewhere to emulate its trajectory. These aspirations fit into a broader narrative about information and communication technologies (ICTs) which positions ICTs as opening and enabling new forms of economic inclusion and market access (Graham and Mann 2013;Ouma et al. 2019). This narrative echoes earlier colonial modernization theories that linked economic development to big infrastructure projects; narratives which are now experiencing a revival with the growing importance of digital infrastructures in facilitating economic activities (Ibid; Graham et al. 2015). ...
... Thirdly, especially pronounced in the case of Kenya, is the belief that the main barrier to ITES is internet connectivity (Graham et al. 2015). However, what this focus on connectivity as market access neglects is the hierarchical nature of production networks, not just within ITES but within the global economy more generally (Ouma et al. 2019). ...
Article
Full-text available
Information-technology-enabled services (ITES) has become a sector of promise for many low- and middle-income economies seeking to leapfrog industrialization and build knowledge-intensive economies. Yet as a sector defined by accelerating processes of commodification and skill elimination, its long-term developmental promise must be carefully scrutinised. Analysing the development of the sector in India, the Philippines and Kenya the paper reveals both the contextual nature of past successful ITES policies and their developmental vulnerabilities. Drawing on literature on industrial policies and global value chains and production networks, the paper critiques the existing policy approaches by arguing that they are largely focussed on enabling value and employment creation and that they pay insufficient attention to questions of value capture and long-term socio-economic transformation.
... More critical perspectives draw from other connectivity debates in alluding to the pitfalls of Internet connectivity (cf. the reference to African port infrastructure by Ouma et al. (2019) or the comparison of railway and fibre optic cable construction in East Africa by Graham et al. (2015)). A major conjuncture in this debate lies in the understanding that technology and connectivity is not neutral per se (Ouma et al., 2019). ...
... More critical perspectives draw from other connectivity debates in alluding to the pitfalls of Internet connectivity (cf. the reference to African port infrastructure by Ouma et al. (2019) or the comparison of railway and fibre optic cable construction in East Africa by Graham et al. (2015)). A major conjuncture in this debate lies in the understanding that technology and connectivity is not neutral per se (Ouma et al., 2019). This becomes particularly relevant with the pivotal question about 'who controls the digital' . ...
Article
Driven by the rapid adoption of Internet-based technologies amongst producers in the Global South, the question of how and whether global value chain arrangements are reconfigured remains open to debate. This article addresses the changing practices of export-oriented smallholders accompanying the transition from simple phone towards smartphone use. Our dynamic approach compares cross-sectional survey data from 2013 and 2017 to answer to what extent Kenyan smallholders have adopted the Internet, which digital practices in relation to agricultural value chains they use and how this affects the inter-firm coordination between smallholders and subsequent actors. Smartphones have gained broad importance for smallholders as they are used for digital practices in value chains. Contrary to the debated dark sides of Internet connectivity, we can however not confirm sweeping digital control or value appropriation by lead firms. So far, long-established, analogue practices widely persist in arrangements between smallholders and exporters. Nevertheless, smartphones are used to nurture multilateral knowledge networks of unprecedented reach and size and further allow for incipient experiments with marketing strategies on digital marketing platforms devoted to domestic markets. We argue that these practices resemble strategic niche seeking that has to be interpreted in relation to captive export arrangements. With qualitatively and quantitatively increasing options to access and share knowledge and to market commodities, the Internet can serve to navigate the multiplicity of chain alternatives (domestic production, informal export production). Such niches should be considered as creating leverage against the take it or leave it deal of captive export production.
... Infrastructures are being mobilised for enabling and securing of spatio(-temporal) fixes of capital in general (Carmody et al., 2022) and for the unlocking of regional assets to be integrated into global networks of trade and production in particular (Schindler & Kanai, 2021;Tups & Dannenberg, 2021). This can be seen, for example, in the current popularity of growth-oriented infrastructures such as growth corridors (Dannenberg et al., 2018), (green) energy production (Greiner et al., 2022) or the promotion of information and communication technologies for development (Ouma et al., 2019;Murphy & Carmody, 2015). ...
... Some scholars also point to other FinTech-induced challenges such as individual indebtedness through borrowing and gambling Bateman et al., 2019;Bernards, 2019), fraudulent FinTech transactions (Karpoff, 2020;Makina, 2019), and dispossessing people of their capacity to form and sustain social ties (relational value) necessary for everyday social and economic stability (Guermond, 2020). For some, these counter empowerment narratives pose critical empirical and theoretical questions around the uneven geographies of FinTech often enacted with and through new forms of neoliberal financialization and digitalization processes, especially in the global South (Gabor & Brooks, 2017;Lai & Samers, 2020;Ouma et al., 2019). ...
Article
This article probes how uneven access to digital financial technologies maps onto and reinforces existing inequalities in the global South. Grounded in Sen's capability approach, it deploys a network science approach to examine emergent factors reinforcing techno-financial inequality or the uneven access to FinTech instruments, such as mobile money (MM) or m-banking services. Focusing on a case study in Dhaka, Bangladesh, our findings suggest that unequal access to MM services is driven by a lack of capability inputs (e.g., low income and savings) needed to access certain goods (e.g., mobile phones). This lack affects and is affected by personal conversion factors (e.g., functional and financial illiteracies), environmental conversion factors within the MM ecosystem (e.g., unreliable MM operators), and socio-cultural practices (e.g., gender norms) within which MM services are embedded. We argue that these factors must be understood and analyzed as a network of converging forces that constrain digital financial capabilities and wellbeing within the peripheries of the global South. This network understanding highlights the need to avoid one-size-fits-all policy interventions, including moving beyond techno-centric paradigms that privilege the proffering of technological fixes: dumping more FinTech instruments into global South markets. Rather, FinTech policy models must recognize and carefully address the intersection of micro and macro factors inhibiting FinTech access in the global South.
Article
This article examines the growth in mobile phone‐based lending in Kenya, where millions now borrow from services that translate digital data into credit scores. Reeling from ongoing retrenchment and marketisation, many find themselves turning to expensive, short‐term credit to “buy time”. We depart from actuarial approaches to the digital economy that foreground the technical analysis of data in order to emphasise the importance of racialised expropriation and rentier capitalism. We focus on Safaricom, the corporation at the centre of the digital data and debt industry, showing how its infrastructural power and absent regulation permit it to seize value from users. Safaricom serves not only its own accumulation, but the fiscal imperatives of a Kenyan state that is, like its citizens, groaning under untenable debt. Citizens and state alike operate within the twinned constraints of illiquidity and volatility, a situation we call the “zero balance economy”. By linking the popular and sovereign debt crises we explore parastatal formations of predatory inclusion—neither market nor state, but an unwieldy amalgamation of the two.
Article
The debate on the difference between value creation and value extraction has resurfaced since the 2008 financial crisis. Digitalization further raises the question of the frontier between productive and extractive activities in the data economy. Critical internet studies have developed the concept of free digital labour in order to highlight the issue of value creation and extraction in everyday online activities. While an emerging literature explores the issue of value in the digital age, the consequences in terms of development policies remain insufficiently researched. Against this background, this article analyses National Development Plans in Colombia to investigate the underlying notion of value. It shows that value creation is largely absent from development agendas that focus on access and infrastructure. However, it argues that the concept of digital labour is insufficient to understand the articulation of value creation and development, and the role of the state in the digital age.
Article
Full-text available
Although recent years have seen an efflorescence of research on rent, the emphasis has tended to be placed in the antagonistic relations of distribution that underlie this category. The ways in which rent relations also mediate the expansion of global networks of production and trade, however, are yet to be deciphered. On the other hand, an emerging scholarly interest in questions of logistics and supply chain capitalism has lacked a systematic theorisation of how increasing functional integration in the world economy shapes—and is also shaped by—rent relations. To bridge this gap, this article explores the complex, convoluted relation between property and the social circulation of capital in and beyond land markets. With this, we place into focus the extent to which the logistics revolution has elevated the importance of property relations—and thereby of the rentier class—in the dynamics of accumulation and political conflict under late‐stage capitalism.
Article
Understanding the intensification and expansion of extractive industries in contemporary capitalism requires an approach attentive not only to the literal forms of extraction prevalent in mining and agribusiness but also to new fronts of extraction emerging in activities such as data mining and biocapitalism. This article introduces the concept of operations of capital to trace connections between the expansive logic of extraction and capitalist activity in the domains of logistics and finance. Arguing that extractive operations are at large across these domains, we explore their relevance for capital’s relation with its multiple outsides. The resulting analysis provides a basis for mapping struggles against the changing forms of dispossession and exploitation enabled by extraction.
Article
Half-Title Page Series Page Title Page Copyright Page Dedication Page Table of Contents Series Editors’ Preface Acknowledgements Abbreviations Introduction