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Computer ‘Gold Farming’ Turning Virtual Reality Into Real Profits

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The rapid spread of the internet around the global South is bringing with it new forms of work. One of these trends is so-called “gold farming”: making money in the virtual world of computer gaming by trading in virtual money, prizes and goods for busy gamers who don’t have time to do it themselves. This work now employs 400,000 people – mostly men and mostly in China, but also elsewhere in the South, according to a new report.

Working out of internet centres where they can get access to high-speed or broadband internet connections, “gold farmers” use the global trade in virtual goods for online computer games in the same way stockbrokers trade shares on the world’s stock exchanges. The trade operates similarly to the stock market, with prices fluctuating based on demand and changing by the minute.

And as the report discovered, this trade is acting as a gateway into the world of information technology employment, where computer-literate young men are able to earn an income they could not have done otherwise.

It is a trade that can provide gold farmers with US $145 a month in income. They are often given free food and accommodation to do it, and many have few other economic choices.

“You can probably think of two models,” said the report’s author, Professor Richard Heeks of Manchester University’s Development Informatics Group. “They could play as an individual at a local cybercafe doing their own in-game farming and then selling to one of the trading sites (that buy from farmers at one price, then sell on to player-buyers at a higher price). Or they could be organized into a small/medium enterprise by an owner, all working together in a room full of computers.”

There is a dark side to gold farming too: there have been reports of youths forced to gold farm by gangs who make them work 12 hour days. Crime gangs sometimes become involved and scams proliferate.

Heeks says the downside is the result of governmental ignorance. “The main problem is a lack of understanding about ICT and ICT enterprise generally in some governments in developing countries and in particular a relative lack of understanding about the spread and implications of computer games.”

Supporters see gold farming as a flourishing Southern economy that is worth hundreds of millions of dollars, and exposes participants both to information technology skills and the wide horizons of the virtual computing world. Its defenders say it shows that those who dismiss the expansion of IT infrastructure as a waste of time are missing the emerging economic opportunities it is creating.

Heeks said we still know too little about this fast-evolving sector, but that “gold farming does seem to be providing income/livelihood for young men who would otherwise be unemployed. There are claims that it has helped mop up youths who had otherwise been involved in crime, but we don’t yet know how generalized such claims are.”

The number of players engaged in online gaming has grown by 80 percent per year, and Heeks sees the rise in gold farming as linked to a bigger trend: “in both North and South, we will spend increasing amounts of work and leisure time in cyberspace. Couple that with the growing penetration of ICTs into developing countries, including into poor communities, and there will be growing opportunities for this kind of ‘virtual outsourcing.’”

Currently, more than 300 million people worldwide have access to the internet through fast broadband connections (mostly in developed countries, although this is changing quickly), and more than 1.1 billion of the world’s estimated 6.6 billion people are online.

China is working hard to capture the economic power of the internet. The country’s economic boom has helped create an affluent urban middle class clamouring for the social aspects of internet access like chat rooms, while the government has been driving the roll-out of internet access in rural areas.

The country’s largest Cyber Park is under construction in Wujin New and High-tech Development Zone of Changzhou. It will be a technology incubator, a research and development centre, and a place for small and medium-sized enterprises to innovate.

China’s most ambitious digital media industry development is the Beijing Cyber Recreation District (CRD), a collection of digital media academies and company incubators spread over 100 square kilometres, creating the world’s largest virtual world development. It is already home to more than 200 game and multimedia content producers in western Beijing.

And even in Africa, where broadband penetration rates are very poor, countries are now looking to the mobile phone companies to provide their populations with access to the internet, as they struggle to find a place at the digital table.

Mauritius, an island in the Indian Ocean strategically close to Africa and better known for tourism and luxury hotels, wants to become the world’s “cyber island”, and Africa’s e-gateway. Armed with the first 3G network in Africa (the third generation of mobile phone technology – offering high-speed internet access and video telephony), Mauritius is moving fast to make good on this advantage. And it is even moving to the next level of mobile-phone speed, High-speed Download Packet Access (HSDPA) – allowing even greater quantities of information to be exchanged.

Mauritius joins a select few countries, including Japan and South Korea, at the forefront of access to 3G. Wireless – or wi-fi – computer access is available in three-quarters of the island.

By David South, Development Challenges, South-South Solutions

Published: September 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Archive.org: https://archive.org/details/Httpwww.slideshare.netDavidSouth1development-challengessouthsouthsolutionsseptember2008issue

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsseptember2008issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Kommunikation total: Der siebte Kontinent

In 1998 Der Spiegel’s “Kommunikation total” issue profiled the global connectivity revolution underway and being accelerated by the Internet boom of the late 1990s. It chose my picture of a satellite dish and a ger in the Gobi Desert to symbolise this historic event.

Scroll through a PDF of the story (my photo is on the last page).


“Die Handy-Gesellschaft war erst der Anfang: Experten sehen in den Sphären des Internet einen neuen Erdteil entstehen. Hier lebt die Info-Elite, umgeben von PC, Pager, Powerbook. Die Multimedia-Industrie wird zur Schlüsselbranche des 21. Jahrhunderts – mit gravierenden Folgen für die Gesellschaft.”

English translation: “Total communication: the seventh continent –
The cell phone society was just the beginning: Experts see a new continent emerging in the spheres of the Internet. The information elite live here, surrounded by PCs, pagers and power books. The multimedia industry is becoming the key industry of the 21st century – with serious consequences for society.” (http://t-off.khd-research.net/Spiegel/10.html)
From The Turns of Translation Studies: New Paradigms Or Shifting Viewpoints? By Mary Snell-Hornby · 2006.
Der Spiegel is a German weekly news magazine and is one of Europe’s largest publications of its kind. It chose my photo taken in the Gobi Desert for its profile of the Internet revolution in 1998.

“The transformation of Mongolia from a largely rural nomadic society of herdsmen to a community dominated by the increasingly ultra-globalized city of Ulan Bator, where almost a third of the population lives, is nothing short of astounding.” The New Mongolia: From Gold Rush to Climate Change, Association for Asian Studies, Volume 18:3 (Winter 2013): Central Asia

From 1997 to 1999, I served as the Communications Coordinator (head of communications) for the United Nations (UN)/United Nations Development Programme (UNDP) mission in Mongolia, founding and directing its UNDP Mongolia Communications Office. 

Copies of Wild East: Travels in the New Mongolia by Jill Lawless are still available in various editions and languages.

Published in 2000 (ECW Press: Toronto), Wild East: Travels in the New Mongolia by Canadian author and foreign correspondent Jill Lawless also selected the ‘ger’ photo for its cover image.

The world has changed considerably since then; and so has Mongolia. The digital revolution has rolled across the planet, the attacks of 9/11 unleashed a wave of violence and wars, and Mongolia even became the fastest-growing economy in the world a few years ago (2012). But back when this book was researched, Mongolia was just coming out of decades of isolation within the Soviet orbit under Communism, and the country experienced in the 1990s “one of the biggest peacetime economic collapses ever” (Mongolia’s Economic Reforms: Background, Content and Prospects, Richard Pomfret, University of Adelaide, 1994). 

“The years 1998 and 1999 have been volatile ones for Mongolia, with revolving door governments, the assassination of a minister, emerging corruption, a banking scandal, in-fighting within the ruling Democratic Coalition, frequent paralysis within the Parliament, and disputes over the Constitution. Economically, the period was unstable and rife with controversies.” Mongolia in 1998 and 1999: Past, Present, and Future at the New Millennium by Sheldon R. Severinghaus, Asian Survey, Vol. 40, No. 1, A Survey of Asia in 1999 (Jan. – Feb., 2000), pp. 130-139 (Publisher: University of California)

That collapse made for some crazy times, as Wild East shows. 

Read a small sample of David South’s new media journalism and reporting from the 1990s here: From Special Report: NMM (New Media Markets) Spotlight On The Emergence Of Satellite Porn Channels In The UK

Channel Regulation: Swedes Will Fight Children’s Advertising All The Way

Two trends came together at the end of the 1990s and the start of the 2000s: the digital revolution and the mapping of the human genome. Both have given birth to whole new industries. Read more here: The Dawn Of The Genetics Revolution | 2001 – 2003

By the 1990s, cables (like above) were being joined by satellites to advance the global connectivity revolution. By the 2000s, cables (copper and fibre optic) and satellites were joined by mobile and smart phones, to deliver “kommunikation total”.

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Cyber Cities: An Oasis of Prosperity in the South

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The future is arriving in the South even faster than many think: so-called “cyber cities” are being created to become this century’s new Silicon Valleys. Well-known ‘cyber cities’ like India’s Hyderabad and Bangalore have been joined by many other cities across the global South. But two places are set to make big waves with their ambition and drive in 2008: Mauritius and China.

Mauritius, an island in the Indian Ocean strategically close to Africa, better known for tourism and luxury hotels, wants to become the world’s “cyber island”. Armed with the first 3G network in Africa (the third generation of mobile phone technology – offering high-speed internet access and video telephony), Mauritius is moving fast to make good on this advantage. And it is even moving to the next level of mobile-phone speed, something called High-speed Download Packet Access (HSDPA) – allowing even greater quantities of information to be exchanged.

Mauritius joins a select few countries, including Japan and South Korea, at the forefront of access to 3G. Wireless – or wi-fi – computer access is available in three-quarters of the island.

Outside the capital of Port Louis, former sugar cane plantations are being turned into a “cyber city”. The centrepiece of the development is the 12-story Cyber Tower, home to young technology start-ups. The country is also investing heavily in education from primary school to university, to make sure the country’s 1.2 million people are cyber-ready.

Computer novices in remote villages are being visited by a Cyber Caravan with a classroom teaching housewives, children, the unemployed and the disabled basic computing and world processing.

Mauritius built its wealth on tourism, sugar plantations and textile manufacturing. But it is worried that trading arrangements that helped the sugar and textile industries to flourish, will be taken away. So it is focusing on the future: it sees itself as the world centre for disaster recovery computing services for the world’s companies in event of a disaster in their own country that destroys computer networks.

In China, its largest Cyber Park is under construction in Wujin New and High-tech Development Zone of Changzhou. It will be a technology incubator, a research and development centre, and a place for small and medium-sized enterprises to innovate.

What is truly making people stop and think is another far-reaching project: the Beijing Cyber Recreation District (CRD) – China’s most ambitious digital media industry development: a virtual worlds’ initiative with digital media academies and company incubators. It is spread over 100 square kilometres, creating the world’s largest virtual world development. It is already home to more than 200 game and multimedia content producers in western Beijing.

The CRD says its goal is “to create a virtual economy providing infrastructure and platforms through which any business – not just those based in China – can come in and sell their real-world products and services. While a concerted effort will be placed on bringing Chinese businesses and consumers in, the effort is worldwide and open to businesses and consumers from any country.”

The idea is to create a vast virtual economy for commerce where manufacturers can directly connect with billions of customers – bypassing middlemen.

It claims it will be “the world’s one-stop shop for customers and producers.” It will host billions of avatars – or virtual people – surpassing the capability of the very popular Second Life virtual world game’s 40,000.

Resources

  • The Atlas of Ideas is an 18-month study of science and innovation in China, India and Republic of Korea Korea, with a special focus on new opportunities for collaboration with Europe. It is a comprehensive account of the rising tide of Asian innovation. Special reports on China, India and Korea, introducing innovation policy and trends in these countries can be downloaded for free.
  • The Cyber Cities Reader: the first book to bring together a
    vast range of debates and examples of ICT-based city changes.
  • Entrepreneurship Development Institute of India
  • Innovation China: A website linking all stories on the fast-breaking world of Chinese innovation.

Check out award-winning cyber and digital work here: http://www.davidsouthconsulting.com/blog/2020/2/26/awards-1998-2003-february-2020.html

More stories on cyber innovation from e-newsletter Development Challenges, South-South Solutions and magazine Southern Innovator

China Sets Sights on Dominating Global Smartphone Market

China Looking to Lead on Robot Innovation

Crowdsourcing Mobile Phones To Make The Poor Money

Mobile Phones: Engineering South’s Next Generation of Entrepreneurs

By David South, Development Challenges, South-South Solutions

Published: January 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=dKaXBgAAQBAJ&dq=Development+Challenges+January+2008&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsjanuary2008issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

Creative Commons License
This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2022