Posts Tagged ‘youth’

The comparative global impact of Alibaba vs. Amazon

Alibaba Business School and the United Nations Conference on Trade and Development (UNCTAD) brought 29 young entrepreneurs from 11 countries across Africa to the Alibaba campus in Hangzhou, China for the third eFounders Fellowship cohort.

Chinese corporate soft power influence is production driven, not consumption focused. Alibaba, the e-commerce giant with digital payment tentacles, has been graduating cohorts of young entrepreneurs from Asia and Africa this past year. This initiative is the outcome from Jack Ma’s seminal visit to Nairobi last year, when thousands of young Kenyans waited for him in the sun.

Photo Credit: Abdishakur Mohammed, July 2017, University of Nairobi grounds, Kenya

He talks about entrepreneurship in a digital world, and personally shows up to meet visiting cohorts to talk about taking the lessons learnt from e-commerce in the most challenging environments in China (rural, mobile, social) back home to their own not dissimilar operating environments.

Contrast this with the first thing that comes to mind when you think about Amazon these days – a desperate workforce unable to take a leak, afraid to lose their low waged jobs as worker bees in a humongous warehouse. It keeps prices down and the consumption that runs the billions flowing, but whom does it benefit beyond the shareholders?

It struck me when I saw the news about “Alibaba Global Leadership Academy” that Chinese soft power was increasingly about driving production and growth aka development along their entire value chain, even among putative new consumer markets, whilst the American model was still stuck in a consumption driven mindset of the 1980s first wave of globalization. Buy more cola, wear our jeans, use our credit card, say the American brands in Jakarta or Accra or Nairobi.

The difference in mindset is stark when you think about the tech giants of Silicon Valley looking to uplift with low cost connectivity and internet basics for free, and compare to the Chinese giants thinking about raising the purchasing power first. The english language media would have you believe its all about neo-colonialism for natural resources, but the recent shifts in tactics and strategy seem to imply a less demoralizing mindset than anything evidenced by charitable good works handing out goodies to the downtrodden. Because whatever the agenda, the bottomline will be that at end of the exercise there will be a group left inspired to build their own markets on their mobiles, versus a group left holding a palliative goodie.

“My experience here has shifted my thinking. Before, we were focused on pleasing the investors, but now I see the importance of putting our customers first, then my employees, then the investors,” said Andreas Koumato, 26, from Chad , the founder of Mossosouk, an e-commerce platform. “Let others [benefit], then later, we will gain.”

Production driven social impact is far more powerful than consumption driven. Human centered productivity even more so.

In which countries is it hardest for young people to find work in 2016?

jobsI’m currently working on a study within a team of 5 people (including myself): 2 senior and 2 junior level men. The seniors have retired from public service. The two young men have graduated 5 years ago from local public and private universities, top of their class but could not find stable jobs. Thus, they work on a project basis whenever they get a chance, which can be few and far in between.

The two men are less than 35 years old. They are representative of the majority of young people in Benin: educated, neither in school nor working at stable jobs yet striving to make ends meet. Public sector only hires approximately 1 000 people when you have more than 10 000 people graduates that enter the job market every year.

Looking at the ECOWAS region on the ILO’s chart displayed above, I cannot help but be dismayed at the findings: in the majority of countries, less than 7% of young women and men are not able to find work. In two countries, it is from 7-13% and in only one country it is from 13-20%. These statistics imply that African youth in ECOWAS is mostly employed. That is wrong. Most young people are underemployed or unemployed. Those who manage to find an occupation work on a temporary basis or at lower qualification positions or start a small scale trade. The rest hope for the best.

Despite countries’ higher growth rates (GDP stable around 5% for the most part) and greater education attainment by youth, jobs remain scarce.  When they are available, age-ism in our societies make it such that priority is given to older people (who undoubtedly have more experience).

The ILO’s findings cover up a problem (high rates of unemployment) that is a vector for migration/brain drain or the rise in terrorism. It also masks the role that the informal sector plays in job creation. ECOWAS countries’ economies are driven by more than 50% by the informal economy. In Benin, where the informal sector represents more than 90% of the economy, graduates are found becoming drivers of taxi-motos to make ends meet. That occupation is said to generate on average daily profits of $4. They were not able to find work within their sector so they became taxi-motos.

All this to say that the ILO’s statistics narrate a single story that perpetuates the idea that youth employment is not a critical matter whereas it is among the top 3 priorities for ECOWAS countries due to its consequences for sustainable growth, stability and social justice.