BarCampAfrica – The OLPC (laptop) project is another form of harmful subsidy, says one critic. It was a gentle critique – even the critic is a fan of the OLPC project in many ways (as am I – extremely cool tech and great educational ideas).
But it’s clear to anyone familiar with development issues that subsidies really are harmful, much of the time – and the speaker had examples of his own. Like the big headaches for ISPs in Africa when international aid organizations come in and dropping free connections on schools or communities. Such subsidies take out a whole chunk of the market that businesses no longer have access to – then when the aid organization leaves and goes somewhere else, the locals are left with local businesses that are weakened and less able to serve the community.
Now, I still see the OLPC as doing much more good than harm. Sure, they’re taking out a huge chunk of the market… but that market mostly didn’t exist before OLPC’s innovations made it possible to serve these people.
So, I like the suggestions: Open source the design*, let anyone build them, and keep the margin local.
On the other hand, I wonder if there is any possibility of a market-based solution that achieves OLPC’s aims, especially saturation. But if a no-subsidy model leads to more effective markets and institutions, then that may be a more important achievement. It also leaves space for more innovation – e.g. variations on the Educational Television Computer (a.k.a. the $10 computer).
* Actually, isn’t it already open source…? Help me out here...
As with all posts in this blog, the views expressed here are those of the poster, and don’t necessarily represent the Appropedia community.