This website aims to serve as the start of a roadmap for applying innovative digital sharing approaches to uplift, empower, and serve lower- and middle-income individuals in the developing world. Its findings draw from interviews with digital sharing companies in both developed and developing countries, and from investors, academics, journalists, and development professionals interested in supporting the growth of the global digital sharing economy. We are immensely grateful for their insights.
We’d like to thank the following individuals for sharing their thoughts and experiences with the digital sharing economy:
- Matthew Feeney - Cato Institute
- Parag Jain - Juggernaut, Jugnoo
- Pooja Bhatia - Ozy
- Raymond Besiga - Sparkplug
- Shelby Clark - Relay Rides
- Steven Strauss - Woodrow Wilson School
- Wingham Rowan - Beyond Jobs
- Aashi Vel - Traveling Spoon
- Alastair Sussock - SafeBoda
- Ben White - VC4Africa
- Cam Doody - Bellhops
- Carl Shepherd - HomeAway
- Elizabeth Iorns - Science Exchange
- Katrina Benjamin - Upwork
We would also like to thank our colleagues Dan Zook, Devang Vussonji, Julia Shen, and Marcus Haymon for their feedback on digital sharing models in the developing world.
Methodology for Digital Sharing Map
The three different metrics for measuring trust were used to reflect the multiple dimensions of trust necessary for successful digital sharing: a basic sense of safety – important for sharing rides, homes, and personal information; trust that the economic and justice systems will function fairly in case things go awry; and trust in strangers – important given that virtually all digital sharing transactions are between strangers.
This analysis is a preliminary assessment, which we hope to expand upon and make more robust over time. For each indicator, we aimed to answer the question, “Is this country a more or less challenging environment for digital sharing than the median?” Hence, we began by taking the median value for each indicator, and divided the indicator values for all countries into quartiles.
Countries whose metric fell in the first quartile (the worst outcomes for digital sharing) were assigned a dummy variable of 0. Those that fell into the fourth (best) quartile were assigned a dummy variable of 9; countries with indicator values in the second and third quartiles were assigned values between 1 and 8. These dummy variables were then summed for each country across the five indicators to develop the reported score, out of a possible total of 45.
Hence, a score of 43 – equivalent to New Zealand or South Korea – should be interpreted as “this country scored in the highest quartile on all five indicators, suggesting a highly supportive environment for digital sharing.” Similarly, a score of 30 – such as for Malaysia, Uruguay, and Bulgaria – should be interpreted as referring to a country that "has many of the necessary components for a digital sharing economy, and is likely to see growth in digital sharing over the next decade."
Metrics and Sources
We measured digital sharing readiness for countries with GDP per capita below $20,000.
The map shows composite scores for the 119 countries with fully available data on the five input metrics for the latest year available:
- Trust: A combination of three equally weighted sub-metrics: (i) Number of intentional homicides per 100,000 people, (ii) Perceived corruption by country, and (iii) Degree of trust toward strangers; see rationale below (sources: UNODC (2012), Corruption Perception Index (2014), World Values Survey (2014))
- Connectivity: Mobile subscriptions per 100 people (source: World Bank (2014))
- Literacy: Literacy rate (source: UNESCO Institute for Statistics (2015))
- Digital payments: Percentage of individuals who used an account to make a transaction through a mobile phone (source: World Bank Global FINDEX (2014))
- Public and private support for entrepreneurship: (i) Venture capital and private equity investment attractiveness by country (sources: IESE VC and PE Country Attractiveness Index (2015) and Global Innovation Index (2015)) and (ii) ease of doing business as determined by regulations on entrepreneurial activity (source: World Bank Doing Business Index (2015)).