Inclusive Digitalization
Bedir Tekinerdogan
Full Professor and Chair Information Technology, Wageningen University
Justice, Equality, and Equity
Justice is a moral principle that guides the pursuit of fairness and impartiality, ensuring that individuals receive what they deserve based on their actions, needs, and circumstances. In a just society, everyone is treated with respect and dignity, and given access to opportunities and resources according to their unique situations. Justice serves as the overarching concept that encompasses the ideas of equality and equity, both of which are essential components for creating a fair and inclusive society. Equality is the notion that all individuals should be treated equally, without discrimination or prejudice, regardless of their personal differences, backgrounds, or circumstances. It emphasizes providing the same opportunities, rights, and resources to everyone with the intention of creating a level playing field for all members of society. While equality is a crucial aspect of justice, it does not always account for the unique circumstances and requirements of individuals. Equity, on the other hand, acknowledges the inherent differences and unique needs of individuals. It seeks to address systemic disparities and create a fair distribution of opportunities and resources by providing individuals with what they specifically need to achieve equal outcomes. Unlike equality, which may treat everyone the same regardless of their circumstances, equity tailors the allocation of resources and opportunities to individual needs, recognizing that different people may require different levels of support to achieve the same level of success.
Inclusive vs. Extractive Institutions
The issue of preserving individual human rights and promoting equity and inclusiveness is a longstanding and recurring challenge in the global context. In order to support social cohesion and ensure a fair distribution of wealth, it is essential that all individuals are considered equal in dignity and rights. Within nations, the economic institutions that govern growth and development are crucial in determining the level of inclusiveness and equity present in society.
In their seminal work, Why Nations Fail: The Origins of Power, Prosperity, and Poverty, Acemoglu and Robinson introduce the concept of inclusive institutions vs. extractive institutions. Inclusive economic institutions are those that allow for and encourage the participation of the majority of people in economic activities, enabling them to make the best use of their talents and skills. These institutions are characterized by secure private property, an unbiased legal system, and the provision of public services that create a level playing field for individuals to engage in exchange and contract. The presence of secure private property rights creates an incentive for individuals to invest in their own long-term success. When combined with a system that includes the vast majority of the population, inclusive institutions enable societies to achieve near-maximum utility of their human and physical resources.
In contrast to inclusive institutions, extractive institutions are characterized by limited participation by the majority of the population in political or economic affairs. Such institutions favor a minority elite who wield political and economic power and exploit the resources of those living under them. The majority of the population is often excluded from participation due to a lack of access to education or economic opportunities, resulting in a significant gap between the rich and the poor.?
Acemoglu and Robinson argue that extractive institutions not only lead to unfairness but also lead to stagnant economic growth in countries. Achieving sustained economic growth is primarily dependent on the existing political and economic institutions. Therefore, transitioning from extractive to inclusive institutions that promote broad-based economic participation and support the growth and development of all citizens is necessary to foster sustainable economic growth and development.
The Role of Digitalization for Inclusive Institutions
In a previous article, I discussed the global impact of digitalization and the challenges it poses. The disruptive nature of digitalization has resulted in an irreversible transformation of nearly all businesses and global society. As digital solutions are increasingly implemented in various industries, including agriculture, it is crucial to examine the relationship between digitalization and inclusiveness. It is essential to assess the current state of institutions regarding digitalization and inclusiveness and determine whether digitalization will promote inclusiveness or exacerbate inequality.
In this context, we can identify the following key questions:
By examining these critical questions, we can better understand the relationship between digitalization and inclusiveness and develop strategies to ensure that digitalization contributes to the creation of inclusive institutions and a more equitable global society.
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To explore the answers to these questions, we have conducted several studies, including a study on the cocoa supply chains in Africa, particularly in Ghana. Ghana produces 20% of the global cocoa output and is the world's second-largest producer and exporter of cocoa beans, after Ivory Coast. Our research has revealed that the current structure of the supply chain in Ghana is more extractive in nature and requires substantial effort to transition toward a more inclusive supply chain that benefits all stakeholders, including smallholder farmers.
One of the key challenges we identified is the asymmetrical access to information among supply chain stakeholders. To ensure fair access to information and promote inclusiveness, stakeholders need to adapt their business processes and harness the power of digital technologies. We conducted a systematic survey study in Ghana to understand the existing workflow processes, identify the main problems and bottlenecks, and design new, more inclusive business processes. Our research also explored how IT systems can support and enable inclusive business models in the Ghanaian cocoa industry.
By incorporating IT solutions that improve information flows and provide cocoa farmers with better access to market information, training, and financial services, there are numerous opportunities to enhance farmer livelihoods and increase export earnings in the cocoa sector for Ghana and all stakeholders involved. These digital solutions can also contribute to more transparent and traceable supply chains, leading to improved environmental and social sustainability.
Furthermore, our research emphasizes the importance of collaboration among governments, the private sector, and non-governmental organizations in promoting digitalization and inclusiveness in the cocoa industry. Implementing policies that encourage the adoption of digital technologies, providing support for smallholder farmers to access these technologies, and fostering partnerships that leverage the expertise of various stakeholders can all contribute to the development of more inclusive and equitable cocoa supply chains in Ghana and beyond.
In conclusion, our studies on the cocoa supply chains in Africa, particularly in Ghana, demonstrate the potential of digitalization to drive the transition from extractive to inclusive institutions. By addressing key challenges such as asymmetrical access to information and fostering collaboration among stakeholders, we can harness the power of digital technologies to promote inclusiveness and create a more equitable global society
Further Research is Needed
While our studies on the cocoa supply chains in Africa, particularly in Ghana, have provided valuable insights into the potential of digitalization to drive the transition from extractive to inclusive institutions, it is important to acknowledge that more research is needed in this context. The complex interplay of social, economic, and technological factors requires a comprehensive understanding of the challenges and opportunities associated with digitalization and inclusiveness in the agricultural sector and beyond.
Further research should focus on exploring the scalability and replicability of digital solutions that promote inclusiveness in different contexts and geographical regions. This would involve identifying best practices and successful case studies, as well as assessing the potential barriers to the adoption and adaptation of digital technologies in various settings.
Moreover, it is essential to examine the role of public policies and regulatory frameworks in fostering the adoption of digital solutions that promote inclusiveness. Research should aim to identify the most effective policy instruments and strategies that can create an enabling environment for the development and implementation of inclusive digital solutions.
Additionally, interdisciplinary research efforts are necessary to better understand the social, cultural, and behavioral aspects that may influence the adoption and effective use of digital technologies in promoting inclusiveness. This will help in the design of context-specific interventions and support mechanisms that address the unique needs and preferences of the target populations.
Finally, it is crucial to continue monitoring and evaluating the impact of digitalization on inclusiveness and equity over time. Longitudinal studies can provide valuable insights into the sustainability and long-term effects of digital solutions, helping to inform future interventions and policy decisions.
Acknowledgments
This article draws upon insights gained through our collaborative research and publications, which involved the contributions of? Emmanuel Ahoa , Matthew Ayamga , Claudia Ayim , Ayalew Kassahun , and Cor Verdouw .
Further Reading