Smart Power, Mobile Phone Technology and Philanthropocapitalism in Africa & MENA


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conférence au Colloque International Democracy Promotion and Nation Building in United States Foreign Policy. The U.S. Model Reconsidered, From the Post-Cold War Balkans to the Arab Revolts, 18 Octobre 2012, Université Paris 3/The German Marshall Fund of the Unites States

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Smart Power, Mobile Phone Technology and Philanthropocapitalism in Africa & MENA

  1. 1. SMART POWER,PHILANTROCAPITALISM& MOBILE PHONELaurence Allard, Communication Studies, IRCAV-Paris3/Lille 3
  2. 2. Global Uses Mobile phones: the first global communication technology. Radio and Television = broadcast media only. More than 6,2 billions subscribers in 2012. 75% of world inhabitants have a mobile phone (World Bank, 2012). Africa is the second regional market after the Americas. China and India who are the first global markets (Wireless Intelligence, sept.2011). Penetration rate of 100% in 97 countries and two thirds covered by mobile telephony network (ITU sept.2011). The rate of Internet penetration in low income countries grows at 4.6% in 2010. Mobile phones diffusion mirrors contemporary geopolitics. Mobile as a factor in the economic and social emergence of BRICS. Penetration rates in BRICs: 70-80% in India / China 100%+, Brazil, SA. In many countries, Internet access mainly or even only through mobile, Egypt at the time of the blackout January 27, 2011: 57%.
  3. 3. Social Uses &individualization Mobile phone: the first communications technology immediately and readily accessible to women and poor people in history (not a simple media). See “Petite poucette” that sends SMS with his thumbs" Michel Serres as a figure symbolizing the mobile revolution. Globalization for several reasons: Technologies of the self / support for personal expression Technology of individuation : - for women forced into marriage and living away from their families = can Maximizing keep contacts and can be “yourself”. Mobile - in families living in India for several generations in the same house: cell (Rapport, phone number can have a "home" Banque number that is your personal address. Mondiale, -for young people all around the Juillet world : tool of autonomy : personal 2012) number, personal content.
  4. 4. Smart Power : Technological Augmented Influence American diplomacy has a long tradition of using communication technologies to transmit ideas abroad, as was the case with radio and Voice of America. Under President Obama, the State department under the leadership of Hilary Clinton has directed its diplomatic line around Smart Power. Concept of Smart Power was proposed in 2004 by the president of the Human Rights Watch organization in opposition to the militarist policy of the Bush administration. In a few words, Smart Power can be defined by selecting tools depending on the diplomatic, economic, military, political, legal and cultural situation. It can be understood as a variant of Soft Power, advocated by Joseph Nye in Bound to Lead (Basic Books, 1990), which was definable ability to influence indirectly through non-coercive means (structural, cultural or ideological).
  5. 5. A new diplomatic courier : CommotionProject: A lesson of the ArabSpring: When diplomacy meets Hacktivism. Typical Smart Diplomacy’s proiect : funded at $ 2 million by the Secretary of State. Is to create an internet and cell autonomous in taking a suitcase to bypass censorship or cuts as in Egypt. This is to allow freedom of expression to accomplish, “to be able to speak and communicate with others" in all countries under censorsphip. Technical principles of the project :-Commotion allow wireless broadband independent of existing infrastructure operating on frequencies WIFI-Software - which can be contained in a USB key - turns a simple router a PC or smartphone to send and relay information to another relay and to the final recipient.
  6. 6. La nouvelle valise diplomatique :le projet Commotion (à passer) In addition Commotion integrates security and anonymity of the connection with Freedom Box to transform a basic computer into secure encrypted server to store offline videos and other documents Commotion’s project leader, Sascha Meinrath, therefore received a grant [from ???] to develop this device. Thus, smart diplomacy converged to the concern of historical hacktivists: "information wants to be free."
  7. 7. Short Code 4636 January 12, 2009 when an earthquake stroke in Haiti, urgent need for relief occured. Some use the features of the mobile phone a GIS used called Ushahidi based on SMS and geolocation, mapping needs emergency requests for assistance, missing Ushahidi (Swahili for testimony) has been developed in 2007 by a group of citizens in Kenya to report on post-election violence. One of the developers of the scheme, David Kobia, was called by a US expert in crisis mapping, Patrick Meier (Tufts Fletcher School). A grass root project, dubbed “Location Based Mobile Alerts “ was developed. Digicel, a Haitian mobile service provider, which covers a quarter of the countrys population, set up a single emergency number with charging $ 5 call the 4636
  8. 8. Short Code 4636 Maps can save lives Through an SMS gateway run by a start- up, InSTEDD, working in the field of technologies for crisis situations and natural disasters, it was possible for rescue personnel such as the Red Cross, but also for U.S. Marines to receive SMS alert reports, providing details on the location and the nature of problems: missing persons, lack of food or water in orphanages, etc. Emergency SMS messages were first translated from creole into English, French by two NGOs Samasource and Crowdflower before being published on a map of Haiti by a team of volunteers gathered at the Fletcher School of Law and Diplomacy. Samasource (whose founder recently received an Innovation Award for the Empowerment of Women by the Department of State) and Crowdflower, are NGOs specializing in equity payment to the task by refugees or inhabitants of poor areas.
  9. 9. Haiti and Hilary Clinton : Inaugural speech The Crowdsourced map of Haiti has been used by the U.S. Marines sent as a relief force. Department of state secretary Hilary Clinton has expressed a clear awareness among of the role played by communication technologies in diplomatic action. Her speech has given a mobile turn to US diplomacy: "The technical community has set up interactive maps technology to help us identify needs and target resources”. Alluding to rescue action in Haiti, she mentioned “ a seven year old girl and two women [who] were pulled from the rubble of a collapsed supermarket by an American team of search and rescue texted after calling for help. “ In this speech, Hilary Clinton said the need to provide digital technologies to people to advance democracy and human rights. To this purpose, she called for "a partnership between industry and academia to non- governmental organizations to establish an ongoing effort that will harness the power of connection technologies and apply them to our diplomatic goals. Relying on mobile phones, mapping applications and other new tools, we can give more power to citizens and strengthen our traditional diplomacy. (21 January 2010:
  10. 10. Afghanistan: mobile fieldexperiments 18 million mobile subscribers out of 28 million inhabitants  "Digital Silk Roads" initiated by the Internet Bar 52% of households in rural areas Organization/USIP 44% mobile subscribers 11% use SMS  85% of Afghans live on their land. Major conflicts of land ownership after years of The U.S. Army has invested $ 113 million for war and expropriation by the Taliban. civilian communications and developed a mobile device strategy  Using GPS / SMS to send photos and information Including $ 50 million to create an independent in a secure database and made ​virtual network of mobile telephony. Legal assistance in connection with the custom USAID took over with programs oriented towards students, such as an contest on mobile applications organized in cooperation with the Afghan Ministry of Education in September 2012. "Digital Silk Roads" initiated by the Internet Bar Organization/USIP 85% of Afghans live on their land. Major conflicts of land ownership after years of war and expropriation by the Taliban. Using GPS / SMS to send photos and information in a secure database and made ​virtual Legal assistance in connection with the custom
  11. 11. Mbanking : dématerialized cash(to Africa from Afghanistan)  M PESA Kenya In Africa, 60% of the 400,000 African M Paisa Afghanistan villages covered by mobile networks On the model of M-PESA  5 to 10% of African households unbanked Roshan / Vodafone USAID (IFRI, 2010) in 2008.  M PESA, 2007: Vodafone Foundation and Western Union ("philanthrocapitalism"). •First mobile money to pay  Network of approved agents (call box, for the Afghan police and small shops ...) : 28 000 (2011) then to the public (electricity  Proceed to setting the SIM card and receive a commission credited to their M- payment, pay teatcher, PESA account. governement employees…)  M-PESA team 70% of the Kenyan population today. •95% non-banked  $ 14.2 billion in 2011 transited M PESA in population Kenya •65% mobile penetration  30% increase in income in rural areas rate through the financial inclusion and flow of money formal (Report of Consultative •IVR built as 72% illiterate Group to Assist the Poor, Oct.2010) population. •130,000 customers of M- PAISA in 2010. •mBanking used here for security issues related to
  12. 12. M-Banking : M-PESA Interface
  13. 13. From mBanking to mobile voucherin humanitarian actions Niger, May 2010 Zain, a leading mobile telecommunications provider in the Middle East and North Africa and Concern, a US-based NGO, have teamed up to set up a money transfer scheme via SMS Zain’s Mobile payment called “Zap” : 13,000 women most at risk have benefited a total of 20,000 CFA francs (about € 30.50 or feed a family for one month) in 116 villages Identification card was created for lack of ID card) as part of this action. Code by SMS for each recipient against cash from a retailer of mobile phone cards to buy food. Syria sept.2010 Pilot Program, through a code sent by SMS, dematerialized voucher equivalent to $ 30 per person for two months. UN program that allows families to choose the food and shops. Extended to 1,000 Iraqi refugees in Syria to 9,600 families or about 32,500 people based in Damascus and across the country.
  14. 14. Digitizing Food Assistance : BetterThen Cash Alliance The next frontier : digitizing food assistance. Alliance Better than Cash Alliance. Through mobile phones and text messages, the Better than Cash Alliance can deliver digital food vouchers, or “e-vouchers,” that enable people to buy food from local markets. the World Food Programme (WFP) helped launch the Better than Cash Alliance. (septembre 2012) According to WFP Executive Director Ertharin Cousin, “By 2015, WFP expects 30 percent of its assistance programs to be delivered in the form of cash and digital food.” WFP is utilizing MasterCard’s technological platform to distribute food vouchers through mobile phones and banking cards. These vouchers can be used at local markets, thereby bolstering local economies as well. Such a partnership also facilitates online donations to WFP. Digital Food is already seeing success in providing humanitarian assistance for refugee Syrian families who are fleeing into neighboring Lebanon, for instance. According to WFP These initiatives will focus primarily on improving the welfare of mothers and children, empowering women while ending malnutrition.
  15. 15. Haiti : toward a cashlesssociety NGOs (Mercy Corps) + Bill and Melinda Gates Foundation) + Bill Clinton Challenge. January 2012 : At the time of the earthquake, two bank branches per 100 000 inhabitants. 10% of population are unbanked before the earthquake. 40% of banks are destroyed during Earthquake 63% population covered by to mobile phone subscriptions. 246,000 people affected and more than 6 million transferred through these [???] programs. In the aftermath of the disaster, $ 40 per person mobile money transfers via using USSD. Advantage of paperless cash: 5 days period for nine days against mobile money distribution with vouchers. Since, shops reconstruction is pegged to the mobile banking July 2012: Exhibition at the British Museum in London in the room Citi Money Gallery of artifacts illustrating the transition from Haiti to a "cashless society." August 2012: Cyclone Isaac : government assistance program for victims sent directly by the operator Digicel subscribers to TchoTcho Money
  16. 16. Mobile Money by USAID USAID government Development Agency launched money supply mobile in late 2011 : «This is why the Mobile Solutions team is so excited about mobile money. All of a sudden, we live in a world where you do not need to build a bank to serve families with financial services. Today, people can store money safely using their phone, as well as send money instantaneously to friends and family in need. It puts the opportunity to plan for tomorrow quite literally in the palm of the one’s hand. In a world with 500,000 bank branches and 4 billion phones, this changes the game.” “We’re doing so because we believe that mobile money not only empowers people to send money home, save money, pay for unexpected medical costs, school fees, or invest in their business, but it also allows the poor to reclaim a sense of stability, security, and connection in a world often characterized by pervasive anxiety, insecurity, and alienation.”
  17. 17. African Market ofTransparency « I vote I see I send » U.S. Embassy in Guinea supported Issue of transparency at the the countrys electoral commission in heart of Obama’s governance. the implementation of a monitoring Open Governement combining program of the first elections since government transparency and 1958, called “I vote, I see, I send.“ encouraging citizen participation as "co-producers" of public life.  On the official website of the U.S. Open Government Directive of 8 Government, Madam Ambassador December 2008. explains the ability elections of 27 June 2010 of texting then relayed to A policy of transparency that a website where they can be some radical activists have taken very seriously at both the U.S. analyzed by observers and voters. itself as the Sunlight Foundation,  The purpose of this logistical support, which conducts an anti lobbies she said, is to support the action of a but Wikileaks. democratic government in favor of US diplomacy was the victim in "more transparency for the future what some have appointed a economic development of the “9/11 Foreign Affairs”. country, particularly in the mining and natural resources (bauxite, iron ore, gold, diamonds).”  Note that the Embassy of France has been associated with this program
  18. 18. Market of Transparency : From Serbia to Kenya Note that there is a tradition of monitoring elections carried by major U.S. organizations such as National Democratic Institute (NDI), chaired by Madeleine Albright. Implementation of monitoring elections in financially and technically assist local organizations and political parties to organize. Monitoring elections to establish the conditions for a popular movement to defend the victory gained by the polls Serbia after the anti-Milosevic protests. The new idea here is to consider Africa as a hotbed of technological innovations especially with mobile payment via SMS or mapping systems like Ushahidi (2008).
  19. 19. African Market ofTransparency : Accountability Culture We can speak of an injunction foreign  As part of this culture of accountability investors transparency including Sub- Saharan Africa.  Mobile phone can be considered as an ideal tool for accountability This implies in particular the transparency  It allows functions through SMS but publicizing issues of electoral fraud and also cameras, answering machines, violence through communication GPS and mobile internet now make technologies. problems visible and public in various The goal is to empower the governors and forms: the governed. SMS reports circulating at the speed of Explicitly include the symposium entitled a text, photos or videos stored on a “From Impunity to Accountability: Africas memory card, phone messages can be Development in the 21st Century” at the sent in real time to other observers or New School of New York (Ford Foundation posted on the Internet, located tweets including financial support) in November sent across the web etc.. 2010: It was to discuss "issues of African development in countries that are fighting Dispositif SMS poverty, protecting human rights, but also increase the accountability of electoral –Carto / systems and the management of Elections international aid. ". Ghana 7 déc. 2012/CODEO/U SAID
  20. 20. African Market of transparency : Tech For TransparencyNetwork ideology of transparency equipped with Monitoring of elections by the people and citizens technology controls the process of a website that in emerging democracies in Africa has intensified exists in Kenya since 2005. in the example of Ushahidi developers in Kenya. This is a site for citizen oversight of parliament, (see the map of Haiti) and Mzalando Watch was initiated at the time by the inhabitants of the country in the absence of  In Liberia, October 2011, device monitoring and official website. (Mzalando signifaint "patriot" in reporting of election by the citizens helped NDI. Swahili) This site participates with other initiatives in the SMS reports on the voting process and possible world of Tech for Transparency project. fraud: no opportunity to vote, ballots for candidates who fail ...) but also irregularities fondations.html during the campaign (harassment, illegal certain This network is supported by Omidyar Networks, actions, hatred ...) especially can report problems the founder of eBay. Omidyar Network ((well post-election violence, ranging from arrests to come back at the end of his journey on model) murders. Omidyar Networks has created an investment fund to incubate in SSA initiatives focused on "technology that give citizens the tools that governments take into account. During the Summit of September 2010, the Clinton Global Initiative, founded in 2005 by former President Bill Clinton to help the works of economic globalization, the Foundation Omidyar Network has announced $ 55 million, including $ 25 million dedicated to innovation in the mobile domain. Among other projects already supported by this foundation, we can mention FrontlineSMS, SMS gateway dedicated to communication and NGOs recalls associated with the Ushahidi platform.
  21. 21. Apps4Africa : Diplomacy,Economy, Art American diplomacy using new tools such as mobile phones for mobile banking or to monitor elections. It also means supporting economic cooperation between different actors, the people behind these tools, innovators and entrepreneurs themselves. "We know that entrepreneurs are likely to want to spend part of their business expertise to solve problems in the world, but they often do not know how.To fill this gap, we approach new public-private partnerships that link the field experience of our diplomats and development specialists and resources of the business community. “ (Hilary Clinton, Speech of 18 October 2010: Goldman Sachs report of March 2012 "Africa Turn" comparing buisiness opportunities with Africa with those of China in the early 1990s. oads/gs_research_africas_turn.pdf Other kind of recognition: the artistic consecration with a mention at Ars Electronica 2012 iHub Nairobi: Kenyan start-up incubator
  22. 22. Apps for Women! Economic development model of mobile innovation supported by American diplomacy:  Note a strong orientation towards women in Model contest of mobile applications. these contests Apps4Africa. Contest typical governance Obama to  Issue of gender gap, that is to say 300 million associate citizens and developers an open differential between men and women in the and mobile government concerned with world according to the report of the Cherie Blair transparency Foundation, GSMA. For example, “Apps4Democracy” based on  Women are 21% less equipped than men in open data from developing countries: less than 23% in Africa, Apps4Africa launched in July 2010 in 24% in the Middle East and 37% in South Asia. Nairobi, Kenya, by the Secretary for Public  Some studies show, for example, in India, the Diplomacy Judith McHale, engaging mobile access allows for greater financial twenty proposals Kenya, Rwanda, Uganda autonomy and correspond to five years of and Tanzania. additional education. Tech4Women étendu à de nombreux pays africains en mars 2012 : « Launched by  BOP Apps Challenge mWomen competition Secretary of State Hillary Rodham Clinton organized by the GMSA whose aim is to create in 2011, TechWomen builds on her vision applications specific to women in poor of “smart power” diplomacy. It embraces countries. the full range of diplomatic tools, in this  Hilary Clinton in announcing his support for this case technology, to bring people together project reminds us that "the mobile phone is for greater understanding and empower women and girls worldwide.” also a gateway to information and education.  Next Drop rewarded in 2011: application to locate drinking water in India
  23. 23. Innovating Financial Services for Women :mBanking + mHealth=Mamabika Mamabika: winner application of Apps4Africa contest in 2010 Mamakiba, offers pregnant women in the slums of Nairobi to give birth in a clinic for 9 months by saving the amount required = service health savings. Of 38, 6 million Kenyans 700,000 only have health insurance. The money saved is paid into an account and that M-PESA is SMS payment amount and account balance are notified. The idea of ​crossing mHealth service and mBanking came to founder observing that some women gave birth not to have clinical fault at the time of delivery of the money needed to pay. This service acts as a "savings calculator" for 9 months and is associated with a social venture called Jacaranda, which includes a health program aimed at pregnant women. When a mobile savings account is opened for the costs of clinic, women should also go to the four prenatal visits provided by WHO.
  24. 24. Beyond Smart Power, a buisinessmodel named« philanthropocapitalism » One of the most important players in the world of philanthropy phone today is Bill Gates. He believes that we should not sell computers in poor countries but there is a great need to use mobile phones to save lives. And particularly in the field of mHealth that occurs through competition for public health applications of the fight against HIV, malaria, tuberculosis ...) towards poor countries. These projects naturally turn mobile Windows Mobile and Nokia, present in most LDCs and developing countries. In France, around three projects supported polio vaccines and genetic mechanisms of tuberculosis (Institut Pasteur and Inserm)
  25. 25. Beyond Smart Power, a buisinessmodel named« philanthropocapitalism » The Melinda and Bill Gates Foundation was founded in 1994 and now has a capital of 66 billion (2/3 of the world have a GDP less than this amount). To qualify for the tax exemption of foundations in the U.S., at least 5% of assets must be spent on donations. Remaining 95% are invested in profitable activities. In 2009, the BMGF has brought more than $ 3 billion in grants and $ 409 million in operating expenses, primarily for projects to improve the lives of poor people living in developing countries. Some analysts believe that in the field of public health, from the government of the United States itself, no donor is as influential as the Gates Foundation. (Health Diplomacy). The foundation more than doubled its initial background becoming the largest charitable institution through the donation of more than $ 30 billion in 2006 made ​him the second richest man in the world, Warren Buffet, the billionaire who has proposed in August 2011, when the debt crisis that the highest American fortunes are still taxed more.
  26. 26. Philanthropocapitalism : a newbuisiness model ? The meeting Bill Gates / Warren Buffet inspired Matthew Bishop, bureau chief of The Economist in New York, the key concept of "philanthrocapitalism" to formalize the meeting between major causes and bargains. According to the author of the book written with Michael Green, “Philanthrocapitalism: How the Rich Can Save the World”(Bloomsbury Press, 2008), Buffet and Gates require a new approach to philanthropy in their social and humanitarian activities. They are based on a partnership between business, charities and governments. Then, the ompany may be "the greatest force for good in the world" when states cut social spending and often take less risk that can not stand these new philanthropic organizations. "Giving" could well become the biggest lever for change in the world. These new philanthropists should be understood as social investors within the meaning of the word. They are detached from the act of charity that animated the first industrial foundations as Andrew Carnegie and John D. Rockefeller.
  27. 27. Map of projects supported by the BMGF
  28. 28. Philanthropocapitalism : a new buisiness modelblurring distinction between profit and non-profit. Pierre Omydar written for the Harvard Buisness Review article clearly explaining the principles of its economic model hybridizing profit and non profit philanthropy in a new innovation-oriented. Omydar Pierre, "How I Did It: EBays Founder on Innovating the Business Model of Social Change" in Harvard Business Review, September 2011 082311.pdf Omydar tells how he won a lot of money with the IPO of Ebay and it has created a philanthropic foundation because he did not need the money for himself. After a few years, it seemed necessary to "professionalize" its foundation. He eventually abandon the model foundation to create a society that mixes Networks Omydar to-profit and philanthropic using the tools of business management in the field of non-profit.
  29. 29. Mobile Phone : a newchronometer for philantrocapitalism? In the business culture of philanthropocapitalism, technologies are widely used to examine the contribution to returns. In this context, the phone seems to philanthropocapitalism the equivalent of chronometer to Taylorism. The mobile sector is therefore a good investment because is a good tool for reporting and hence accountability of philanthropic giving. With features of SMS, cameraphone, GPS and mobile internet, mobile phone is the tool of accountability makes it visible and public problems in different forms. Through SMS reports sent to public health projects or mapped through election monitoring, the actions supported financially by these foundations are presentable donors. Everyone can see that the project is used and how useful it is. Digitalizing humanitarian action through communication technologies unfolds when philanthropy streamlines, where charitable giving is financial investment. These new and rich Silicon Valley, these millionaires with their computer firms like Microsoft or eBay, Marc Abeles had described in his book of 1992 as new philantropists, are sometimes retired for a few years but seem to decide to conquer emerging economies and the means of communication is the most popular, namely the mobile phone. And in partnership with US diplomacy Marc Abeles, Les nouveaux riches : un ethnologue dans la Silicon Valley, Paris, Odile Jacob, 2002
  30. 30. «Mobile Phone is the tool ofliberty » (Bill Clinton, Time,septembre 2012)  “Morozov argues the State Departments online democratising efforts have fallen prey to the same problems that plagued President George W. Bushs lower-tech "Freedom Agenda," - his unrealised push for democracy across the broader Middle East. "By aligning themselves with internet companies and organisations, Clintons digital diplomats have convinced their enemies abroad that internet freedom is another Trojan horse for American imperialism." He says the State Departments forging of closer ties with Silicon Valley - something led largely by Ross - means that repressive regimes now see Google, Facebook and Twitter as tentacles of American foreign policys reach, putting all users of those internet tools under suspicion. Nancy Scola at TechPresident sees a further problem. Silicon Valleys close relationships with the State Department gives the impression of American contractors being given a leg up by the US government in foreign lands, with insufficient thought to local impact.”
  31. 31. Digital life of US diplomacy (février2012) On Internets 125 YouTube channels with 23 940 subscribers and12,729,885 million video views 195 Twitter accounts and 403 322 followers 288 Facebook pages ans 7 530 095 fans.
  32. 32. THANKS!