Could online market places tackle poverty?

With thanks to Wingham Rowan(Slivers of Time)

http://www.jrf.org.uk/publications/online-marketplaces-poverty

Market places

What’s involved in being involved?

• Transactions– Friction (not)– Disintermediation(!)

• Reviews & feedback • Reputation• Trust

– Security (financial & other)– indemnity

• Identity– registration

Asset types

Small personal trades• Formal work

– Particularly for sporadic, irregular hours

• Local services– Trade direct rather than through agencies?

• Hire of Goods– For when you’re not using your hoover yourself

• Borrowing cash– Like existing micro-finance operations

UK Scale

• Est. £100m/day untraded resources

• 20% of adults deemed economically inactive (8.5m?!)

What might gov’t do?

not fund, design, build or operate such marketplaces

be a catalystThis cd also incl channeling purchasing via e-

marketsprovide a regulatory framework & access

to validation proceduresdivert public spending to local

communities through the new markets,

Being a catalyst

e.g. The1993 National Lottery Act defined:• parameters of the intended service;• For operators

– the benefits and protections government would bestow

– Corresponding obligations

• duration of the concession• the process by which a winning

consortium of operators would be decided.

5 core principles

• Gov’t sponsorship not management

• Transparent process of set-up and operation

• Focus on small transactions

• Don’t micro-manage

• Apply monopolies regulations

How would it work?

• Making a transaction – see next slide

• Tracking the market – next slide but one

transaction

Tracking a market

Advanced functions

• Complementary economy– Like LETS

• Resource gaps analysis– “is there a shortage of electricians in Perth?...”

• Enabling investment in sellers– Training scenario

• Interlocking markets– Stitching a package together from different

domains

Where might demand come from?

• Currently non-existent markets– E.g. time-specific renting stuff out

• Markets made more convenient– Regulated, stable, low-cost?

• Supporting markets– E.g. rental mkt creates demand for ‘holders’

• Corporates displaced– Disintermediation; grocer’s bicycle e.g.

Challenges

Include:• the world of work

– DWP• Rather ‘Black & white’ view of being in/out of work• Shades of grey?

– Casualised labour (remember what it was that ppl worked so hard to combat)

• Identity infrastructure• Digital access• First mover advantage

Some helpful contexts

• Grameen Bank & Glasgow Caley?

• Shifting the Balance of Care– Personalised care pilots

– Timebanks

• SiteonMobile?– Technical solution for lack of web

access

Good things for Gov’t

• a new tool for tackling worklessness?

• more precise public services?

• a new model for skills?

• benefits efficiencies?