Advantages of platforms for German development cooperation?
Digital platforms can be usefully employed in German development cooperation projects to network target groups with one another, to stimulate exchange trading or to make information quickly and widely accessible. Other advantages can be derived from specific characteristics of the platforms. These include:
Flexibility and Scalability
For example, platforms can be used for the purpose of job placement. To avoid the exploitation of the platform workers by means of mutual price underbidding, the BMZ-supported Fairwork Foundation has developed five principles of fair work on digital platforms, by means of which they can be assessed. These criteria are as follows: fair payment, fair terms and conditions, fair contracts, fair management and fair representation. They are currently helping around 70 million people in partner countries to find an online job. They enable the outsourcing and crowd-sourcing of jobs across national borders.
Platforms can also serve as loan and exchange facilities. For example, they network local tractor hire firms with farmers, who can compare their offers directly and quickly online.
Transparency and Efficiency
The information which is available to the users on platforms makes the market more transparent and less susceptible to corruption. The information can also often be accessed with a single click, making it faster and more efficient than analogue alternatives.
For optimum use in development cooperation projects, it is important for platforms to generate significant network effects. The more users, the more useful they are. The same applies for the data which is generated: The more data, the better the offering can be structured, the greater the value of the platform. The platform becomes all the more attractive for other providers to offer services on the platform.