Global trends, digital catalysts #2
Exploring technology’s impact on people, business and society
In this multi-part series, I’ll outline global trends that have been catalysed by, or amplified by, digital technology. I’ll show how they are influencing our behaviours, businesses and society and what this means for today’s leaders.
Power diffusion: stepping up to the global stage
In part one we noted that Alibaba and the Belgian government have agreed to launch a trade hub in Europe. Alibaba’s ambition is to help companies reduce e-commerce trade barriers. It claims to be a “compliment” to the World Trade Organization (WTO) which handles the global rules of trade between nations.
This illustrates a trend for widening participation in matters of international politics. Technology has made it easier to create, share and access information which, in turn, has led to power diffusion. Governments now must share the global stage they once owned with organisations and individuals. Worryingly, this is a largely unregulated space.
During Australia’s national energy crisis, Elon Musk wagered that Tesla could stabilise the national grid within 100 days. He laid his bet, in full public view, on Twitter. Mike Cannon-Brookes, the Australian billionaire and co-founder of Atlassian, accepted the 100-days-or-free wager.
Power poverty intensified, the political crisis deepened, and Tesla went to work. Engineers installed the world’s largest lithium-ion battery in Hornsdale Wind Farm, South Australia. The solution has been successful and continues to surpass the power and economic expectations of experts. It has smoothed out several major energy outages, and it took only 54 days to instal.
Being uniquely positioned to take action on power poverty, this is an emotive topic for Musk. But sceptics point out that Tesla, Inc. gained from his foray into energy policy. Does having the ability, resources and wish to tackle life-threatening challenges justify a potential conflict of interest? We can’t know the true motivations behind a leader’s actions, but does that mean we shouldn’t accept the benefits?
In June 2019 Facebook announced Libra — Big Tech’s most audacious assault on finance so far. Its mission is to be a “simple global currency and financial infrastructure that empowers billions of people”. But Facebook has a chequered history, embroiled in scandals ranging from privacy issues to enabling human-rights abuses.
Combine this with Facebook’s colossal size, and the risk to state governance and global banking becomes clear. Facebook has a market capitalisation higher than the GDP of most countries, and a monthly active user base that exceeds the population of every country in the world. Is it prudent to allow companies to control global finance? Zuckerberg’s Facebook co-founder, Chris Hughes, has warned of the risks.
But not all uses of power diffusion are so dystopian; it can also provide a way to stand up to harmful corporate interests and actions. For example, OPEC leader Mohammed Barkindo fears the mass mobilisation of world opinion against oil.
“[mass mobilisation against oil] is beginning to … dictate policies and corporate decisions, including investment in the industry.”
Climate and environmental activist Greta Thunberg welcomed Barkindo’s words.
“Thank you! Our biggest compliment yet!”
Thunberg has inspired millions to protest political inaction over climate change. At the time of writing, she has an Instagram following of 9.2 million and Twitter following of 3.8 million. Time magazine has named her person of the year for 2019. She uses her platform to lobby for 100% clean energy, keeping fossil fuels in the ground, and helping climate refugees.
Power diffusion isn’t just for the Machiavellian among us. This is our new reality in an increasingly digital, decentralised world. Leaders must study its impact on individuals, companies and governments. They must learn to use technology to connect people, crowds and purpose. It is time to be bold, think big and consider participation on the global stage. Customers have grown to expect this.
In the next article, I’ll look at digitalisation, how society and technology have co-evolved, and what that means for leaders and businesses.
