Thought Starters provides me with a chance to look through articles, research and opinion pieces, highlighting interesting trends, developments and changes in the world you and I live in. This edition looks at forecasts for the year ahead, China’s economy and India’s middle class, migration’s growing role in contemporary societies, publishing in the digital age and lots more.
The Economist has published its forecast for the global economy which sees a further shift in momentum from emerging to developed markets, although India, China and Indonesia are seen as top performers:
Malcolm Scott takes a closer look at the slowdown in China’s economy, suggesting that it’s not nearly as significant as some of the more vociferous critics are suggesting:
India as The Economist’s figures above suggest, is one of the powerhouses of the global economy and the country’s growing middle class is seen as providing enormous opportunities for local and international brands. The problem is there are wide variations in estimates of India’s middle class depending on the spending power you apportion to the Indian rupee as the Research Unit for Political Economy shows:
The Wall Street Journal in its profile of demographic trends has taken a closer look at the globe’s growing migrant population. Kim Mackrael and Charles Forelle in their broader analysis of immigration contrast Canada’s more assimilationist and economically driven policies with those of Europe. Whilst I’d argue that Europe is currently in a very different position to Canada due to its proximity to Syria, it does provide some valuable pointers as the continent faces an ageing population:
Angus Hervey provides an important reminder that for many important human development indicators things are on the up (although this is certainly no argument for complacency). Among the indicators he points to are reductions in poverty, malnutrition, polio, infant mortality and AIDS deaths and improvements in universal education, internet access and financial inclusion:
Felix Salmon looks at the maturing of the fintech sector as it focuses on providing tangible improvements on services offered rather than rhetoric about turning the financial sector upside down:
The problems such fintech companies are trying to solve aren’t the type that can be tackled by a few hyperactive coders in a garage. Rather, they require dozens of different skillsets, not to mention the ability to manage them all. In that sense, the startups are becoming much more like the banks they’re seeking to disrupt. That’s Lunn’s Great Convergence. No one believes the banks are going to solve these problems. The trillion-dollar question is, can the fintech companies do something important and socially useful before they, like the banks, become bogged down in regulation and bureaucracy.
Om Malik reports on how the movement towards a software enabled world has moved a lot of business categories into a winner takes all market (eg Amazon, Uber, Google). It’s also worth adding that innovations in technology and business strategy can see even these advantages quickly fall over time if management aren’t vigilant:
This loop of algorithms, infrastructure, and data is potent. Add what are called network effects to the mix, and you start to see virtual monopolies emerge almost overnight. A network effect occurs when the value of a product or service goes up with the number of people using it. The Ethernet inventor Bob Metcalfe called it Metcalfe’s Law. Telephone services, eBay, and Skype are good examples of the network effects at work. The more people who are on Skype, the more people you can call, and thus the more likely it is that someone will join.
While physical book sales in the US are on the up according to Nielsen BookScan figures, ebooks are heading in the opposite direction with a consolidation around the Kindle and Kobo platforms according to Michael Kozlowski’s report:
In a few short years most digital bookstores will be out of business and Amazon and Kobo will likely be the only players left standing. The only digital bookstores that will survive will be companies offering both hardware/software solutions to encapsulate people into their walled gardens. The destruction of the digital book market has already been set in motion and nothing will stop from the industry from collapsing.
In 2013 Amazon created a media storm by announcing they were working on drone delivery with commentators debating whether this was a real story or a public relations stunt. Two years on and the pathway to drone delivery looks clearer. Dan Wang looks at where drone logistics have proven successful and where we’re likely to see it make real inroads in the near future:
Finally, it’s worth watching Extra Credit’s review of China’s Sesame Credit which has seen the Chinese Government collaborate with Tencent and Alibaba on gamifying good behaviour by Chinese citizens. A case of Nudge theory heading in a distinctly dystopian direction: