open south

You are currently browsing articles tagged open south.

First of all, I’m a big fan of the _idea_ of open source hardware (OSH).  (For reference, an excellent compendium of the idea has been growing here at the P2P Foundation wiki.) The notion of a global OS design database, a distributed network of fablabs, and a market driven not by the price signal but by collaborative communication, is very alluring — especially to nerds.

But I have lingering doubts…Certainly the movement is increasingly technologically feasible, and likely to create some sort of fringe guild ecology over the next 10 years.  But from an economic and social viewpoint, much remains to be sorted out in any rigorous way.   I should clarify here that my goal is to critique the OSH movement’s ability to have a meaningful impact for the welfare of the world’s poorest, or to meaningfully change the ecological footprint of the global economy.  Key to this dual goal are speed and scale: the OSH economy must grow at least as fast as the ‘traditional’ economy, and preferably should outpace it by an order of magnitude.   In other words, how can the OSH community lay plans to grow revenues by 25% per year for the next 10 years?

And in sorting out whether OSH has legs, we need to think about whether it will be able to harness the three forces that drive successful product/service growth: a business model that keeps investment dollars coming in, keeps producers gainfully employed, and keeps consumers happy.  I’ll look into possible business models for OSH in a later post.

cleantech.com reports on China’s new financing from the Asian Development Bank to promote private development of green building projects:

“The Energy Efficient Multi-Project Financing Program is a pilot program designed to help energy end users in China gain access to domestic financing for projects that will boost energy efficiency. It is part of ADB’s Energy Efficiency Initiative, in which the financial institution plans to fund at least $1 billion worth of energy-efficiency and clean-energy projects annually.”

Even though United States VC firms are pouring money into cleantech (over $1.2bn for CIGS panels, more for biofuels, and over $100m for smart grid tech) the ADB’s moves in China signal that the race is on.  (India is also looking to invest 4bn by 2015.)

Of course, this race is a good thing, but for the sake of green-collar American jobs, let’s hope the credit crunch doesn’t distract too many folks in the next year.  As I’ve noted before, the ‘Open South’ is going to be a huge force in the next 20 years, and as NYC and London crumble, the Beijing Consensus is certainly going to get a boost from this whole fiasco.