[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.70,0:00:02.93,Default,,0000,0000,0000,,In System D, this
Dialogue: 0,0:00:02.93,0:00:04.98,Default,,0000,0000,0000,,is a store,
Dialogue: 0,0:00:04.98,0:00:07.30,Default,,0000,0000,0000,,and what I mean by that is that this is a photograph
Dialogue: 0,0:00:07.30,0:00:12.62,Default,,0000,0000,0000,,I took in Makoko, shantytown in Lagos, Nigeria.
Dialogue: 0,0:00:12.62,0:00:15.00,Default,,0000,0000,0000,,It's built over the lagoon, and there are no streets
Dialogue: 0,0:00:15.00,0:00:16.82,Default,,0000,0000,0000,,where there can be stores to shop,
Dialogue: 0,0:00:16.82,0:00:18.71,Default,,0000,0000,0000,,and so the store comes to you.
Dialogue: 0,0:00:18.71,0:00:20.49,Default,,0000,0000,0000,,And in the same community,
Dialogue: 0,0:00:20.49,0:00:22.24,Default,,0000,0000,0000,,this is business synergy.
Dialogue: 0,0:00:22.24,0:00:26.35,Default,,0000,0000,0000,,This is the boat that that lady was paddling around in,
Dialogue: 0,0:00:26.35,0:00:29.09,Default,,0000,0000,0000,,and this artisan makes the boat and the paddles
Dialogue: 0,0:00:29.09,0:00:30.40,Default,,0000,0000,0000,,and sells directly
Dialogue: 0,0:00:30.40,0:00:32.56,Default,,0000,0000,0000,,to the people who need the boat and the paddles.
Dialogue: 0,0:00:32.56,0:00:34.74,Default,,0000,0000,0000,,And this is a global business.
Dialogue: 0,0:00:34.74,0:00:38.87,Default,,0000,0000,0000,,Ogandiro smokes fish in Makoko in Lagos,
Dialogue: 0,0:00:38.87,0:00:41.83,Default,,0000,0000,0000,,and I asked her, "Where does the fish come from?"
Dialogue: 0,0:00:41.83,0:00:44.56,Default,,0000,0000,0000,,And I thought she'd say, "Oh, you know,
Dialogue: 0,0:00:44.56,0:00:47.46,Default,,0000,0000,0000,,up the lagoon somewhere, or maybe across Africa,"
Dialogue: 0,0:00:47.46,0:00:48.89,Default,,0000,0000,0000,,but you'll be happy to know she said
Dialogue: 0,0:00:48.89,0:00:50.94,Default,,0000,0000,0000,,it came from here, it comes from the North Sea.
Dialogue: 0,0:00:50.94,0:00:53.27,Default,,0000,0000,0000,,It's caught here, frozen, shipped down to Lagos,
Dialogue: 0,0:00:53.27,0:00:56.36,Default,,0000,0000,0000,,smoked, and sold for a tiny increment of profit
Dialogue: 0,0:00:56.36,0:00:57.88,Default,,0000,0000,0000,,on the streets of Lagos.
Dialogue: 0,0:00:57.88,0:00:59.73,Default,,0000,0000,0000,,And this is a business incubator.
Dialogue: 0,0:00:59.73,0:01:03.43,Default,,0000,0000,0000,,This is Olusosun dump, the largest garbage dump in Lagos,
Dialogue: 0,0:01:03.43,0:01:06.50,Default,,0000,0000,0000,,and 2,000 people work here, and I found this out
Dialogue: 0,0:01:06.50,0:01:08.92,Default,,0000,0000,0000,,from this fellow, Andrew Saboru.
Dialogue: 0,0:01:08.92,0:01:13.08,Default,,0000,0000,0000,,Andrew spent 16 years scavenging materials on the dump,
Dialogue: 0,0:01:13.08,0:01:16.31,Default,,0000,0000,0000,,earned enough money to turn himself into a contract scaler,
Dialogue: 0,0:01:16.31,0:01:18.92,Default,,0000,0000,0000,,which meant he carried a scale and went around and
Dialogue: 0,0:01:18.92,0:01:21.14,Default,,0000,0000,0000,,weighed all the materials that people had scavenged
Dialogue: 0,0:01:21.14,0:01:24.17,Default,,0000,0000,0000,,from the dump. Now he's a scrap dealer.
Dialogue: 0,0:01:24.17,0:01:26.57,Default,,0000,0000,0000,,That's his little depot behind him,
Dialogue: 0,0:01:26.57,0:01:31.08,Default,,0000,0000,0000,,and he earns twice the Nigerian minimum wage.
Dialogue: 0,0:01:31.08,0:01:33.34,Default,,0000,0000,0000,,This is a shopping mall.
Dialogue: 0,0:01:33.34,0:01:35.52,Default,,0000,0000,0000,,This is Oshodi Market in Lagos.
Dialogue: 0,0:01:35.52,0:01:37.86,Default,,0000,0000,0000,,Jorge Luis Borges had a story called "The Aleph,"
Dialogue: 0,0:01:37.86,0:01:39.68,Default,,0000,0000,0000,,and the Aleph is a point in the world
Dialogue: 0,0:01:39.68,0:01:41.98,Default,,0000,0000,0000,,where absolutely everything exists,
Dialogue: 0,0:01:41.98,0:01:44.32,Default,,0000,0000,0000,,and for me, this image is a point in the world
Dialogue: 0,0:01:44.32,0:01:46.79,Default,,0000,0000,0000,,where absolutely everything exists.
Dialogue: 0,0:01:46.79,0:01:49.64,Default,,0000,0000,0000,,So, what am I talking about when I talk about System D?
Dialogue: 0,0:01:49.64,0:01:51.94,Default,,0000,0000,0000,,It's traditionally called the informal economy,
Dialogue: 0,0:01:51.94,0:01:55.56,Default,,0000,0000,0000,,the underground economy, the black market.
Dialogue: 0,0:01:55.56,0:01:57.86,Default,,0000,0000,0000,,I don't conceive of it that way.
Dialogue: 0,0:01:57.86,0:02:00.61,Default,,0000,0000,0000,,I think it's really important to understand that something like
Dialogue: 0,0:02:00.61,0:02:05.09,Default,,0000,0000,0000,,this is totally open. It's right there for you to find.
Dialogue: 0,0:02:05.09,0:02:07.82,Default,,0000,0000,0000,,All of this is happening openly, and aboveboard.
Dialogue: 0,0:02:07.82,0:02:10.34,Default,,0000,0000,0000,,There's nothing underground about it.
Dialogue: 0,0:02:10.34,0:02:13.72,Default,,0000,0000,0000,,It's our prejudgment that it's underground.
Dialogue: 0,0:02:13.72,0:02:18.23,Default,,0000,0000,0000,,I've pirated the term System D from the former French colonies.
Dialogue: 0,0:02:18.23,0:02:21.33,Default,,0000,0000,0000,,There's a word in French that is débrouillardise,
Dialogue: 0,0:02:21.33,0:02:23.45,Default,,0000,0000,0000,,that means to be self-reliant,
Dialogue: 0,0:02:23.45,0:02:26.81,Default,,0000,0000,0000,,and the former French colonies have turned that into
Dialogue: 0,0:02:26.81,0:02:29.37,Default,,0000,0000,0000,,System D for the economy of self-reliance,
Dialogue: 0,0:02:29.37,0:02:32.62,Default,,0000,0000,0000,,or the DIY economy.
Dialogue: 0,0:02:32.62,0:02:35.75,Default,,0000,0000,0000,,But governments hate the DIY economy,
Dialogue: 0,0:02:35.75,0:02:38.100,Default,,0000,0000,0000,,and that's why -- I took this picture in 2007,
Dialogue: 0,0:02:38.100,0:02:43.55,Default,,0000,0000,0000,,and this is the same market in 2009 --
Dialogue: 0,0:02:43.55,0:02:45.86,Default,,0000,0000,0000,,and I think, when the organizers of this conference
Dialogue: 0,0:02:45.86,0:02:47.28,Default,,0000,0000,0000,,were talking about radical openness,
Dialogue: 0,0:02:47.28,0:02:49.84,Default,,0000,0000,0000,,they didn't mean that the streets should be open
Dialogue: 0,0:02:49.84,0:02:51.58,Default,,0000,0000,0000,,and the people should be gone.
Dialogue: 0,0:02:51.58,0:02:55.52,Default,,0000,0000,0000,,I think what we have is a pickle problem.
Dialogue: 0,0:02:55.52,0:02:58.46,Default,,0000,0000,0000,,I had a friend who worked at a pickle factory,
Dialogue: 0,0:02:58.46,0:03:00.36,Default,,0000,0000,0000,,and the cucumbers would come flying down
Dialogue: 0,0:03:00.36,0:03:04.37,Default,,0000,0000,0000,,this conveyer belt, and his job was to pick off the ones
Dialogue: 0,0:03:04.37,0:03:06.72,Default,,0000,0000,0000,,that didn't look so good and throw them in the bin
Dialogue: 0,0:03:06.72,0:03:08.62,Default,,0000,0000,0000,,labeled "relish" where they'd be crushed and mixed
Dialogue: 0,0:03:08.62,0:03:11.95,Default,,0000,0000,0000,,with vinegar and used for other kinds of profit.
Dialogue: 0,0:03:11.95,0:03:14.26,Default,,0000,0000,0000,,This is the pickle economy.
Dialogue: 0,0:03:14.26,0:03:16.76,Default,,0000,0000,0000,,We're all focusing on — this is a statistic from
Dialogue: 0,0:03:16.76,0:03:19.34,Default,,0000,0000,0000,,earlier this month in the Financial Times —
Dialogue: 0,0:03:19.34,0:03:22.89,Default,,0000,0000,0000,,we're all focusing on the luxury economy.
Dialogue: 0,0:03:22.89,0:03:25.63,Default,,0000,0000,0000,,It's worth 1.5 trillion dollars every year, and that's
Dialogue: 0,0:03:25.63,0:03:27.37,Default,,0000,0000,0000,,a vast amount of money, right?
Dialogue: 0,0:03:27.37,0:03:30.62,Default,,0000,0000,0000,,That's three times the Gross Domestic Product of Switzerland.
Dialogue: 0,0:03:30.62,0:03:35.42,Default,,0000,0000,0000,,So it's vast. But it should come with an asterisk,
Dialogue: 0,0:03:35.42,0:03:39.61,Default,,0000,0000,0000,,and the asterisk is that it excludes two thirds of the workers
Dialogue: 0,0:03:39.61,0:03:40.67,Default,,0000,0000,0000,,of the world.
Dialogue: 0,0:03:40.67,0:03:44.06,Default,,0000,0000,0000,,1.8 billion people around the world work
Dialogue: 0,0:03:44.06,0:03:49.59,Default,,0000,0000,0000,,in the economy that is unregulated and informal.
Dialogue: 0,0:03:49.59,0:03:52.87,Default,,0000,0000,0000,,That's a huge number, and what does that mean?
Dialogue: 0,0:03:52.87,0:03:57.62,Default,,0000,0000,0000,,Well, it means if it were united in a single political system,
Dialogue: 0,0:03:57.62,0:04:01.88,Default,,0000,0000,0000,,one country, call it
Dialogue: 0,0:04:01.88,0:04:04.88,Default,,0000,0000,0000,,"The United Street Sellers Republic," the U.S.S.R.,
Dialogue: 0,0:04:04.88,0:04:06.71,Default,,0000,0000,0000,,or "Bazaaristan,"
Dialogue: 0,0:04:06.71,0:04:10.99,Default,,0000,0000,0000,,it would be worth 10 trillion dollars every year,
Dialogue: 0,0:04:10.99,0:04:13.04,Default,,0000,0000,0000,,and that would make it the second largest economy
Dialogue: 0,0:04:13.04,0:04:15.53,Default,,0000,0000,0000,,in the world, after the United States.
Dialogue: 0,0:04:15.53,0:04:18.37,Default,,0000,0000,0000,,And given that projections are that the bulk
Dialogue: 0,0:04:18.37,0:04:22.03,Default,,0000,0000,0000,,of economic growth over the next 15 years will come
Dialogue: 0,0:04:22.03,0:04:25.40,Default,,0000,0000,0000,,from emerging economies in the developing world,
Dialogue: 0,0:04:25.40,0:04:27.53,Default,,0000,0000,0000,,it could easily overtake the United States
Dialogue: 0,0:04:27.53,0:04:30.90,Default,,0000,0000,0000,,and become the largest economy in the world.
Dialogue: 0,0:04:30.90,0:04:34.44,Default,,0000,0000,0000,,So the implications of that are vast, because it means
Dialogue: 0,0:04:34.44,0:04:37.96,Default,,0000,0000,0000,,that this is where employment is — 1.8 billion people —
Dialogue: 0,0:04:37.96,0:04:42.58,Default,,0000,0000,0000,,and this is where we can create a more egalitarian world,
Dialogue: 0,0:04:42.58,0:04:46.55,Default,,0000,0000,0000,,because people are actually able to earn money and live
Dialogue: 0,0:04:46.55,0:04:49.55,Default,,0000,0000,0000,,and thrive, as Andrew Saboru did.
Dialogue: 0,0:04:49.55,0:04:51.71,Default,,0000,0000,0000,,Big businesses have recognized this,
Dialogue: 0,0:04:51.71,0:04:53.69,Default,,0000,0000,0000,,and what's fascinating about this slide,
Dialogue: 0,0:04:53.69,0:04:55.94,Default,,0000,0000,0000,,it's not that the guys can carry boxes on their heads
Dialogue: 0,0:04:55.94,0:04:58.46,Default,,0000,0000,0000,,and run around without dropping them off.
Dialogue: 0,0:04:58.46,0:05:01.55,Default,,0000,0000,0000,,it's that the Gala sausage roll is a product that's made
Dialogue: 0,0:05:01.55,0:05:04.26,Default,,0000,0000,0000,,by a global company called UAC foods
Dialogue: 0,0:05:04.26,0:05:06.83,Default,,0000,0000,0000,,that's active throughout Africa and the Middle East,
Dialogue: 0,0:05:06.83,0:05:10.52,Default,,0000,0000,0000,,but the Gala sausage roll is not sold in stores.
Dialogue: 0,0:05:10.52,0:05:13.86,Default,,0000,0000,0000,,UAC foods has recognized that it won't sell if it's in stores.
Dialogue: 0,0:05:13.86,0:05:17.96,Default,,0000,0000,0000,,It's only sold by a phalanx of street hawkers
Dialogue: 0,0:05:17.96,0:05:20.78,Default,,0000,0000,0000,,who run around the streets of Lagos at bus stations
Dialogue: 0,0:05:20.78,0:05:25.25,Default,,0000,0000,0000,,and in traffic jams and sell it as a snack,
Dialogue: 0,0:05:25.25,0:05:28.27,Default,,0000,0000,0000,,and it's been sold that way for 40 years.
Dialogue: 0,0:05:28.27,0:05:30.44,Default,,0000,0000,0000,,It's a business plan for a corporation.
Dialogue: 0,0:05:30.44,0:05:32.93,Default,,0000,0000,0000,,And it's not just in Africa.
Dialogue: 0,0:05:32.93,0:05:36.05,Default,,0000,0000,0000,,Here's Mr. Clean looking amorously at all the other
Dialogue: 0,0:05:36.05,0:05:37.97,Default,,0000,0000,0000,,Procter & Gamble products,
Dialogue: 0,0:05:37.97,0:05:40.41,Default,,0000,0000,0000,,and Procter & Gamble, you know,
Dialogue: 0,0:05:40.41,0:05:42.99,Default,,0000,0000,0000,,the statistic always cited is that Wal-Mart
Dialogue: 0,0:05:42.99,0:05:47.83,Default,,0000,0000,0000,,is their largest customer, and it's true, as one store,
Dialogue: 0,0:05:47.85,0:05:51.03,Default,,0000,0000,0000,,Wal-Mart buys 15 percent, thus 15 percent
Dialogue: 0,0:05:51.03,0:05:54.13,Default,,0000,0000,0000,,of Procter & Gamble's business is with Wal-Mart,
Dialogue: 0,0:05:54.13,0:05:57.70,Default,,0000,0000,0000,,but their largest market segment is something that they call
Dialogue: 0,0:05:57.70,0:06:00.62,Default,,0000,0000,0000,,"high frequency stores," which is all these tiny kiosks
Dialogue: 0,0:06:00.62,0:06:03.93,Default,,0000,0000,0000,,and the lady in the canoe and all these other businesses
Dialogue: 0,0:06:03.93,0:06:09.27,Default,,0000,0000,0000,,that exist in System D, the informal economy,
Dialogue: 0,0:06:09.27,0:06:12.67,Default,,0000,0000,0000,,and Procter & Gamble makes 20 percent of its money
Dialogue: 0,0:06:12.67,0:06:14.72,Default,,0000,0000,0000,,from that market segment,
Dialogue: 0,0:06:14.72,0:06:18.16,Default,,0000,0000,0000,,and it's the only market segment that's growing.
Dialogue: 0,0:06:18.16,0:06:21.26,Default,,0000,0000,0000,,So Procter & Gamble says, "We don't care whether a store
Dialogue: 0,0:06:21.26,0:06:24.16,Default,,0000,0000,0000,,is incorporated or registered or anything like that.
Dialogue: 0,0:06:24.16,0:06:27.99,Default,,0000,0000,0000,,We want our products in that store."
Dialogue: 0,0:06:27.99,0:06:30.16,Default,,0000,0000,0000,,And then there's mobile phones.
Dialogue: 0,0:06:30.16,0:06:32.00,Default,,0000,0000,0000,,This is an ad for MTN,
Dialogue: 0,0:06:32.00,0:06:34.64,Default,,0000,0000,0000,,which is a South African multinational
Dialogue: 0,0:06:34.64,0:06:37.39,Default,,0000,0000,0000,,active in about 25 countries,
Dialogue: 0,0:06:37.39,0:06:38.96,Default,,0000,0000,0000,,and when they came into Nigeria —
Dialogue: 0,0:06:38.96,0:06:40.91,Default,,0000,0000,0000,,Nigeria is the big dog in Africa.
Dialogue: 0,0:06:40.91,0:06:43.24,Default,,0000,0000,0000,,One in seven Africans is a Nigerian,
Dialogue: 0,0:06:43.24,0:06:45.94,Default,,0000,0000,0000,,and so everyone wants in to the mobile phone market
Dialogue: 0,0:06:45.94,0:06:47.97,Default,,0000,0000,0000,,in Nigeria. And when MTN came in, they wanted
Dialogue: 0,0:06:47.97,0:06:50.93,Default,,0000,0000,0000,,to sell the mobile service like I get in the United States
Dialogue: 0,0:06:50.93,0:06:54.71,Default,,0000,0000,0000,,or like people get here in the U.K. or in Europe --
Dialogue: 0,0:06:54.71,0:06:58.60,Default,,0000,0000,0000,,expensive monthly plans, you get a phone,
Dialogue: 0,0:06:58.60,0:07:00.60,Default,,0000,0000,0000,,you pay overages,
Dialogue: 0,0:07:00.60,0:07:02.72,Default,,0000,0000,0000,,you're killed with fees --
Dialogue: 0,0:07:02.72,0:07:04.53,Default,,0000,0000,0000,,and their plan crashed and burned.
Dialogue: 0,0:07:04.53,0:07:06.57,Default,,0000,0000,0000,,And they went back to the drawing board, and they retooled,
Dialogue: 0,0:07:06.57,0:07:08.07,Default,,0000,0000,0000,,and they came up with another plan:
Dialogue: 0,0:07:08.07,0:07:10.26,Default,,0000,0000,0000,,We don't sell you the phone,
Dialogue: 0,0:07:10.26,0:07:12.09,Default,,0000,0000,0000,,we don't sell you the monthly plan.
Dialogue: 0,0:07:12.09,0:07:15.22,Default,,0000,0000,0000,,We only sell you airtime.
Dialogue: 0,0:07:15.22,0:07:17.14,Default,,0000,0000,0000,,And where's the airtime sold?
Dialogue: 0,0:07:17.14,0:07:21.23,Default,,0000,0000,0000,,It's sold at umbrella stands all over the streets,
Dialogue: 0,0:07:21.23,0:07:24.95,Default,,0000,0000,0000,,where people are unregistered, unlicensed,
Dialogue: 0,0:07:24.95,0:07:27.66,Default,,0000,0000,0000,,but MTN makes most of its profits,
Dialogue: 0,0:07:27.66,0:07:30.34,Default,,0000,0000,0000,,perhaps 90 percent of its profits,
Dialogue: 0,0:07:30.34,0:07:35.01,Default,,0000,0000,0000,,from selling through System D, the informal economy.
Dialogue: 0,0:07:35.01,0:07:36.84,Default,,0000,0000,0000,,And where do the phones come from?
Dialogue: 0,0:07:36.84,0:07:39.72,Default,,0000,0000,0000,,Well, they come from here. This is in Guangzhou, China,
Dialogue: 0,0:07:39.72,0:07:43.15,Default,,0000,0000,0000,,and if you go upstairs in this rather sleepy looking
Dialogue: 0,0:07:43.15,0:07:47.78,Default,,0000,0000,0000,,electronics mall, you find the Guangzhou Dashatou
Dialogue: 0,0:07:47.78,0:07:50.65,Default,,0000,0000,0000,,second-hand trade center,
Dialogue: 0,0:07:50.65,0:07:53.84,Default,,0000,0000,0000,,and if you go in there, you follow the guys with the muscles
Dialogue: 0,0:07:53.84,0:07:56.50,Default,,0000,0000,0000,,who are carrying the boxes, and where are they going?
Dialogue: 0,0:07:56.50,0:07:59.32,Default,,0000,0000,0000,,They're going to Eddy in Lagos.
Dialogue: 0,0:07:59.32,0:08:02.02,Default,,0000,0000,0000,,Now, most of the phones there are not second-hand at all.
Dialogue: 0,0:08:02.02,0:08:03.33,Default,,0000,0000,0000,,The name is a misnomer.
Dialogue: 0,0:08:03.33,0:08:06.23,Default,,0000,0000,0000,,Most of them are pirated. They have the name brand
Dialogue: 0,0:08:06.23,0:08:09.32,Default,,0000,0000,0000,,on them, but they're not manufactured by the name brand.
Dialogue: 0,0:08:09.32,0:08:11.97,Default,,0000,0000,0000,,Now, are there downsides to that?
Dialogue: 0,0:08:11.97,0:08:15.22,Default,,0000,0000,0000,,Well, I guess. You know, China has no —
Dialogue: 0,0:08:15.22,0:08:18.51,Default,,0000,0000,0000,,(Laughter) — no intellectual property, right?
Dialogue: 0,0:08:18.51,0:08:20.41,Default,,0000,0000,0000,,Versace without the vowels.
Dialogue: 0,0:08:20.41,0:08:22.47,Default,,0000,0000,0000,,Zhuomani instead of Armani.
Dialogue: 0,0:08:22.47,0:08:27.48,Default,,0000,0000,0000,,S. Guuuci, and -- (Laughter) (Applause)
Dialogue: 0,0:08:27.48,0:08:30.61,Default,,0000,0000,0000,,All around the world this is how products
Dialogue: 0,0:08:30.61,0:08:33.13,Default,,0000,0000,0000,,are being distributed, so, for instance,
Dialogue: 0,0:08:33.13,0:08:36.29,Default,,0000,0000,0000,,in one street market on Rua 25 de Março
Dialogue: 0,0:08:36.29,0:08:38.26,Default,,0000,0000,0000,,in São Paulo, Brazil,
Dialogue: 0,0:08:38.26,0:08:41.55,Default,,0000,0000,0000,,you can buy fake designer glasses.
Dialogue: 0,0:08:41.55,0:08:43.62,Default,,0000,0000,0000,,You can buy cloned cologne.
Dialogue: 0,0:08:43.62,0:08:46.39,Default,,0000,0000,0000,,You can buy pirated DVDs, of course.
Dialogue: 0,0:08:46.39,0:08:49.25,Default,,0000,0000,0000,,You can buy New York Yankees caps
Dialogue: 0,0:08:49.25,0:08:52.46,Default,,0000,0000,0000,,in all sorts of unauthorized patterns.
Dialogue: 0,0:08:52.46,0:08:55.54,Default,,0000,0000,0000,,You can buy cuecas baratas, designer underwear
Dialogue: 0,0:08:55.54,0:08:57.84,Default,,0000,0000,0000,,that isn't really manufactured by a designer,
Dialogue: 0,0:08:57.84,0:09:02.22,Default,,0000,0000,0000,,and even pirated evangelical mixtapes. (Laughter)
Dialogue: 0,0:09:02.22,0:09:04.97,Default,,0000,0000,0000,,Now, businesses tend to complain about this,
Dialogue: 0,0:09:04.97,0:09:08.51,Default,,0000,0000,0000,,and their, they, I don't want to take away from their
Dialogue: 0,0:09:08.51,0:09:10.55,Default,,0000,0000,0000,,entire validity of complaining about it,
Dialogue: 0,0:09:10.55,0:09:15.04,Default,,0000,0000,0000,,but I did ask a major sneaker manufacturer earlier this year
Dialogue: 0,0:09:15.04,0:09:17.94,Default,,0000,0000,0000,,what they thought about piracy,
Dialogue: 0,0:09:17.94,0:09:19.29,Default,,0000,0000,0000,,and they told me, "Well, you can't quote me on this,
Dialogue: 0,0:09:19.29,0:09:21.39,Default,,0000,0000,0000,,because if you quote me on this, I have to kill you,"
Dialogue: 0,0:09:21.39,0:09:27.09,Default,,0000,0000,0000,,but they use piracy as market research.
Dialogue: 0,0:09:27.09,0:09:30.32,Default,,0000,0000,0000,,The sneaker manufacturer told me that if
Dialogue: 0,0:09:30.32,0:09:34.00,Default,,0000,0000,0000,,they find that Pumas are being pirated, or Adidas
Dialogue: 0,0:09:34.00,0:09:37.29,Default,,0000,0000,0000,,are being pirated and their sneakers aren't being pirated,
Dialogue: 0,0:09:37.29,0:09:40.17,Default,,0000,0000,0000,,they know they've done something wrong. (Laughter)
Dialogue: 0,0:09:40.17,0:09:43.25,Default,,0000,0000,0000,,So it's very important to them to track piracy
Dialogue: 0,0:09:43.25,0:09:45.62,Default,,0000,0000,0000,,exactly because of this, and the people who are buying,
Dialogue: 0,0:09:45.62,0:09:47.74,Default,,0000,0000,0000,,the pirates, are not their customers anyway,
Dialogue: 0,0:09:47.74,0:09:50.47,Default,,0000,0000,0000,,because their customers want the real deal.
Dialogue: 0,0:09:50.47,0:09:51.96,Default,,0000,0000,0000,,Now, there's another problem.
Dialogue: 0,0:09:51.96,0:09:55.29,Default,,0000,0000,0000,,This is a real street sign in Lagos, Nigeria.
Dialogue: 0,0:09:55.29,0:09:58.36,Default,,0000,0000,0000,,All of System D really doesn't pay taxes, right?
Dialogue: 0,0:09:58.36,0:10:00.16,Default,,0000,0000,0000,,And when I think about that, first of all I think that
Dialogue: 0,0:10:00.16,0:10:03.88,Default,,0000,0000,0000,,government is a social contract between the people and
Dialogue: 0,0:10:03.88,0:10:06.39,Default,,0000,0000,0000,,the government, and if the government isn't transparent,
Dialogue: 0,0:10:06.39,0:10:08.61,Default,,0000,0000,0000,,then the people aren't going to be transparent either,
Dialogue: 0,0:10:08.61,0:10:11.66,Default,,0000,0000,0000,,but also that we're blaming the little guy
Dialogue: 0,0:10:11.66,0:10:13.60,Default,,0000,0000,0000,,who doesn't pay his taxes, and we're not recognizing
Dialogue: 0,0:10:13.60,0:10:16.37,Default,,0000,0000,0000,,that everyone's fudging things all over the world,
Dialogue: 0,0:10:16.37,0:10:20.40,Default,,0000,0000,0000,,including some extremely respected businesses,
Dialogue: 0,0:10:20.40,0:10:21.54,Default,,0000,0000,0000,,and I'll give you one example.
Dialogue: 0,0:10:21.54,0:10:25.69,Default,,0000,0000,0000,,There was one company that paid 4,000 bribes
Dialogue: 0,0:10:25.69,0:10:28.09,Default,,0000,0000,0000,,in the first decade of this millennium, and
Dialogue: 0,0:10:28.09,0:10:32.99,Default,,0000,0000,0000,,a million dollars in bribes every business day, right?
Dialogue: 0,0:10:32.99,0:10:35.29,Default,,0000,0000,0000,,All over the world. And that company
Dialogue: 0,0:10:35.29,0:10:38.19,Default,,0000,0000,0000,,was the big German electronics giant Siemens.
Dialogue: 0,0:10:38.19,0:10:42.07,Default,,0000,0000,0000,,So this goes on in the formal economy
Dialogue: 0,0:10:42.07,0:10:44.27,Default,,0000,0000,0000,,as well as the informal economy,
Dialogue: 0,0:10:44.27,0:10:46.40,Default,,0000,0000,0000,,so it's wrong of us to blame — and I'm not singling out
Dialogue: 0,0:10:46.40,0:10:50.12,Default,,0000,0000,0000,,Siemens, I'm saying everyone does it. Okay?
Dialogue: 0,0:10:50.12,0:10:53.57,Default,,0000,0000,0000,,I just want to end by saying that if Adam Smith
Dialogue: 0,0:10:53.57,0:10:56.41,Default,,0000,0000,0000,,had framed out a theory of the flea market
Dialogue: 0,0:10:56.41,0:10:59.72,Default,,0000,0000,0000,,instead of the free market, what would be some
Dialogue: 0,0:10:59.72,0:11:01.73,Default,,0000,0000,0000,,of the principles?
Dialogue: 0,0:11:01.73,0:11:05.49,Default,,0000,0000,0000,,First, it would be to understand that it could be
Dialogue: 0,0:11:05.49,0:11:07.68,Default,,0000,0000,0000,,considered a cooperative, and this is a thought
Dialogue: 0,0:11:07.68,0:11:12.26,Default,,0000,0000,0000,,from the Brazilian legal scholar Roberto Mangabeira Unger.
Dialogue: 0,0:11:12.26,0:11:14.86,Default,,0000,0000,0000,,Cooperative development is a way forward.
Dialogue: 0,0:11:14.86,0:11:19.54,Default,,0000,0000,0000,,Secondly, from the [Austrian] anarchist philosopher Paul Feyerabend,
Dialogue: 0,0:11:19.54,0:11:23.82,Default,,0000,0000,0000,,facts are relative, and what is a massive right
Dialogue: 0,0:11:23.82,0:11:26.81,Default,,0000,0000,0000,,of self-reliance to a Nigerian businessperson
Dialogue: 0,0:11:26.81,0:11:30.82,Default,,0000,0000,0000,,is considered unauthorized and horrible to other people,
Dialogue: 0,0:11:30.82,0:11:32.84,Default,,0000,0000,0000,,and we have to recognize that there are differences
Dialogue: 0,0:11:32.84,0:11:34.89,Default,,0000,0000,0000,,in how people define things and what their facts are.
Dialogue: 0,0:11:34.89,0:11:37.99,Default,,0000,0000,0000,,And third is, and I'm taking this from
Dialogue: 0,0:11:37.99,0:11:41.27,Default,,0000,0000,0000,,the great American beat poet Allen Ginsberg,
Dialogue: 0,0:11:41.27,0:11:44.42,Default,,0000,0000,0000,,that alternate economies barter and
Dialogue: 0,0:11:44.42,0:11:47.18,Default,,0000,0000,0000,,different kinds of currency, alternate currencies
Dialogue: 0,0:11:47.18,0:11:50.02,Default,,0000,0000,0000,,are also very important, and he talked about
Dialogue: 0,0:11:50.02,0:11:53.01,Default,,0000,0000,0000,,buying what he needed just with his good looks.
Dialogue: 0,0:11:53.01,0:11:56.64,Default,,0000,0000,0000,,And so I just want to leave you there, and say that
Dialogue: 0,0:11:56.64,0:12:00.86,Default,,0000,0000,0000,,this economy is a tremendous force for global development
Dialogue: 0,0:12:00.86,0:12:02.82,Default,,0000,0000,0000,,and we need to think about it that way.
Dialogue: 0,0:12:02.82,0:12:05.84,Default,,0000,0000,0000,,Thank you very much. (Applause)
Dialogue: 0,0:12:05.84,0:12:08.96,Default,,0000,0000,0000,,(Applause)