52 lines
3.3 KiB
Markdown
52 lines
3.3 KiB
Markdown
|
---
|
|||
|
|
title: GDP Negative
|
|||
|
|
sidebar_position: 5
|
|||
|
|
---
|
|||
|
|
|
|||
|
|
# Internet is GDP Negative
|
|||
|
|
|
|||
|
|
|
|||
|
|
|
|||
|
|
|
|||
|
|
The concept of "Internet GDP negative" in this context highlights the economic disadvantages countries face when relying heavily on the centralized as located in wealthier nations.
|
|||
|
|
|
|||
|
|
> **A feasibility study done for Tanzania shows a yearly lost of 10 Billion USD per year.**
|
|||
|
|
|
|||
|
|
### 1. **Loss of Revenue from Booking Sites**
|
|||
|
|
- Platforms like global booking and e-commerce websites often charge high commission fees, which results in local businesses losing a significant portion of their revenue.
|
|||
|
|
- **Impact:** Instead of money circulating within the local economy, it is extracted and transferred to the countries where these platforms are headquartered.
|
|||
|
|
- **For a small country like Zanzibar the impact of centralized booking sites means a loss of 200m USD per year**
|
|||
|
|
|
|||
|
|
### 2. **Loss of Advertising and Marketing Dollars**
|
|||
|
|
- Companies within countries purchase online advertisements primarily on platforms like Google, Facebook, and others. These platforms are headquartered in a handful of nations, meaning most of the advertising revenue flows out.
|
|||
|
|
- **Impact:** Local businesses indirectly fund foreign economies instead of building up domestic digital marketing ecosystems.
|
|||
|
|
|
|||
|
|
### 3. **Data Dependency**
|
|||
|
|
- User data from most countries is stored and processed in foreign data centers. This creates dependency on a few nations for internet services and data storage.
|
|||
|
|
- **Impact:** The local economy loses the opportunity to benefit from data-driven industries (e.g., AI, analytics). Furthermore, countries become vulnerable to foreign policy changes, data access restrictions, or breaches.
|
|||
|
|
|
|||
|
|
### 4. **Loss of Sovereignty and Influence**
|
|||
|
|
- When internet infrastructure and critical data storage are external, nations lose control over how their citizens’ data is managed and utilized.
|
|||
|
|
- **Impact:** This reduces the ability to enforce regulations, build influence, or compete globally in the digital space.
|
|||
|
|
|
|||
|
|
### 5. **Infrastructure Costs and Dependency**
|
|||
|
|
- Sea cables and external server access are essential for internet connectivity, but these are often controlled by a few companies or nations.
|
|||
|
|
- **Impact:** Developing countries pay disproportionately for infrastructure access and maintenance without gaining ownership or influence over it.
|
|||
|
|
|
|||
|
|
### 6. **Economic Leakage**
|
|||
|
|
- Payments for cloud services, digital tools, and other online services are made to companies based overseas.
|
|||
|
|
- **Impact:** Funds that could be used to build local internet ecosystems instead boost the economies of tech giants.
|
|||
|
|
|
|||
|
|
### 7. **Inability to Drive Local Innovation**
|
|||
|
|
- Centralized control of data and reliance on external internet infrastructure limit opportunities for local startups to thrive.
|
|||
|
|
- **Impact:** Countries lose out on developing their digital economies and creating jobs in the tech industry.
|
|||
|
|
|
|||
|
|
### 8. **Digital Divide**
|
|||
|
|
- Developing nations often pay more for connectivity while receiving slower or less reliable services compared to developed nations.
|
|||
|
|
- **Impact:** This perpetuates inequality in access to opportunities, education, and innovation.
|
|||
|
|
|
|||
|
|
These factors combined mean that many nations are effectively "Internet GDP negative"—paying more into the global internet economy than they gain.
|
|||
|
|
|
|||
|
|
|
|||
|
|
|