The invisible hand of Algorithms: How social media shapes modern economies

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By Degraft Osei

Algorithms: invisible, enigmatic, and all-powerful. They are the quiet rulers of the digital economy, shaping what we see, share, and consume.

Whether recommending a book, delivering a meme, or suggesting the next trending video, algorithms are the kingmakers of the digital era. But like all rulers, they are imperfect, and their flaws often leave creators in underserved regions struggling to compete on a global stage.

For creators in Africa, for instance, the story often begins with immense talent but no clear path to visibility.

Algorithms designed to maximize engagement frequently amplify content tailored to Western audiences, sidelining creators from regions with less advertising clout. It’s a cruel irony: the global economy has never been more interconnected, yet its benefits are disproportionately distributed.

The Kingmakers of the Digital Age

Take a musician in Accra, whose beats blend traditional Ghanaian rhythms with futuristic synths. They upload a song to a global platform, hoping to gain traction.

While the song resonates locally, its global reach is stymied by algorithms favoring content that appeals to established markets like North America or Europe. This is not due to a lack of talent, but a systemic bias baked into the design of these digital systems.

Algorithms are not inherently malicious. They are, after all, designed to serve specific purposes: keeping users engaged and ensuring platforms remain profitable.

The problem is that these purposes often clash with the principles of equity and fairness. Content that aligns with global advertising trends is prioritized, while authentic local stories and voices are pushed to the periphery.

Examples of Algorithmic Inequity

Consider the meteoric rise of TikTok. While the platform has given a global stage to many, its algorithm still reflects broader economic disparities.

African creators often report that their content garners less engagement internationally, even when it performs well locally. Similarly, YouTube’s ad revenue model is geared toward creators in high-value advertising regions, leaving African creators to rely on local sponsorships or personal funds to sustain their work.

A Lesson from Commerce

This issue isn’t confined to digital platforms. During my tenure at M & T Concessions, I saw how distribution networks favoured established markets, leaving emerging ones to fend for themselves.

Products that thrived in Europe or North America often struggled to reach consumers in Africa due to logistical and systemic hurdles. The same principle applies to digital content: platforms that do not prioritize equity inadvertently reinforce global disparities.

A Platform Trying to Break the Mold

One platform making waves in this space is Luupli, a social media platform designed to address these inequities. Unlike its larger counterparts, Luupli emphasizes content ownership and equitable monetization.

Its algorithms are built to prioritize authenticity over virality, ensuring that creators from underserved regions have a fair chance at success.

For example, Luupli’s revenue-sharing model allows creators to retain ownership of their content while earning royalties from its reuse.

A painter in Nairobi can upload a piece, license it for digital reuse, and earn income each time it is shared. While the platform hasn’t been launched yet and still in BETA, it demonstrates what’s possible when inclusivity is prioritized.

What Platforms Can Do

Fixing algorithmic inequity isn’t just a moral imperative—it’s a business opportunity. Platforms that embrace transparency and fairness can tap into the immense creative potential of regions like Africa, Asia, and Latin America. Here are a few ideas:

  • Algorithmic Transparency
Platforms should provide creators with insights into how their content is ranked and why. This not only builds trust but also empowers creators to adapt their strategies without compromising authenticity.
  • Localized Support
Offering resources and mentorship tailored to specific regions can help creators overcome systemic challenges. Platforms could partner with local organizations to host workshops, provide funding, or connect creators with global brands.
  • Revenue Equity
By adopting fairer monetization models, platforms can ensure creators are rewarded based on the value they generate, not their geographic location.

A Call to Action

The invisible hand of algorithms need not remain so invisible. By redesigning these systems to prioritize equity and inclusivity, we can create a digital economy that uplifts creators everywhere. Imagine a world where a fashion designer in Lagos, a filmmaker in Nairobi, and a vlogger in Accra have the same opportunities to thrive as their counterparts in New York or London.

The responsibility doesn’t lie with platforms alone. Governments, brands, and consumers must also play their part. Policymakers can create frameworks to ensure digital equity, brands can invest in diverse voices, and users can consciously engage with content from underserved regions.

Algorithms may be the unseen architects of the digital world, but they are not immutable. With the right approach, we can transform them from gatekeepers into enablers, ensuring that the digital economy reflects the diversity of its users.

Degraft is the CoFounder and Chairman of Luupli, revolutionary social media platform that empowers genuine self-expression and promotes authentic human connections. He has extensive experience in the hospitality, tourism and technology sectors in the United Kingdom. He can be reached via [email protected]