digital platforms Archives — LIRNEasia


The consumption of “fast fashion” and airline travel may decline, but Internet use and consumption of various Internet-based services is likely to rise. This is an opportunity for start-ups as well as the China-based behemoths that the US media makes a habit of ignoring. It’s our job to recognize the bias and correct it. But the actions of the American tech cos will affect our lives in multiple ways, the Facebook investment in Reliance Jio being a prime example. But again, it’s important to note who will be in the driving seat at Reliance Jio: all Facebook got for USD 5.
As suppliers of public goods (policy relevant research), we at LIRNEasia know the importance of taxes. If there were no taxes, there would be no Internet. Much of the research being done today on multiple aspects of the response to COVID-19 is funded by taxes, including the flood of scientific articles that we are struggling to keep up with. The problem is that taxes have traditionally been levied on businesses located within the boundaries of the nation state. Tax is coercive, so in essence tax collection requires the ability of the state to audit tax declarations and to throw people into jail if they lie to the state or if they fail to pay taxes that are due.
It seems everyone is talking about digital platforms and digital labor.  This is not surprising, given the amount of news Uber alone is creating in many countries, including the ones LIRNEasia works in.  Everyone is worried about the impacts on labor and working conditions, while some are optimistic about the welfare effects created, especially for consumers who now have more choice and often cheaper rides. Last year we completed the Sri Lanka part of a project looking at a specific type of platform-enabled economic activity that completes a transition with the buyer and seller never meeting – that of on online freelancing and microwork.  We are now looking at the same phenomena in India, and will soon start the same research in Myanmar.