The inexplicable demand for crypto artworks

Great art usually defies easy explanations. Perhaps that is why it’s seemingly inexplicable that the surge in Bitcoin and other cryptocurrencies has given rise to its own world of masterworks that have featured the likes of Biden, Trump and a cartoon cat. These digital collectables — in myriad iterations such as memes, pictures, animations and videos — have been getting made and sold for several years but were relegated to the realm of hardcore crypto enthusiasts until recently. Their connection to digital currencies is that the same technology (blockchain) underpinning virtual coins also helps ascribe ownership and authentication to these artworks. Over the past few months, interest in collectables (called Non-fungible tokens or NFTs) has exploded as cryptocurrencies gained mainstream acceptance. Prices have hit eye-watering heights, with total sales topping $60m last month versus less than $250,000 a year earlier.

(Adapted from “Should You Buy a Bitcoin-Inspired Image of Lindsay Lohan?” by Katharine Gemmell, published on Mar 8, 2021, by Bloomberg Businessweek)

Vaccine challenge of the rich vs the poor

This collision between protecting one’s homeland and inoculating the world has been coming for a while. Last December, researchers at the Johns Hopkins Bloomberg School of Public Health estimated that the advance contracts written by the US and a few other nations would suck up more than half of the doses that manufacturers planned to produce. As a result, they predicted, nearly one-fourth of the world’s population would not get a chance at a shot until next year. In February, World Health Organisation officials estimated that 128m vaccine doses had been administered in the world, but more than three-fourths of those vaccinations took place in just 10 rich countries—while just under 130 countries housing 2.5 billion people had not received a single dose. Equity imbalance internationally needs rapid attention. The longer it takes to reach population-level immunity, the greater the likelihood that virus variants will evolve in those who are still vulnerable.

(Adapted from “The Pandemic Can’t End While Wealthy Nations Hoard Shots,” by Maryn McKenna, published on Mar 9, 2021, by Wired magazine)

The fourth-largest freelance market

As per the World Trade Organisation’s latest statistics, global trade in services witnessed an average decline of 24pc in the third quarter of 2020. Out of the 39 countries reviewed, approximately 90pc experienced contraction in service exports whilst 10pc observed a positive growth. Interestingly, Pakistan took the lead in the latter category. Notwithstanding the unprecedented times, the country registered year-on-year growth of 17pc in November 2020 and 23.2pc in December 2020. The uptick can be mostly attributed to ICT exports which increased by 48pc year-on-year, accounting for 31pc of total service exports in December 2020. The lockdown facilitated the expansion of the ICT services as telework became a new norm. This provided an opportunity for ICT firms to outsource their services at a competitive rate causing an increase in its exports while the number of freelancers grew as well, making Pakistan the 4th largest freelance market in the world.

(Adapted from “Dissecting Pakistan’s Lead in Service Exports,” by Beenish Javed, published in February 2021, by the Policy Research Institute of Market Economy)

Tangible returns of female inclusivity

Women are nearly 40pc of the global labour force and more than half the world’s university students. Failing to tap into their talents and productive potential comes with serious costs. The US Council of Economic Advisors estimated in 2014 that the US economy was 13.5pc larger, equivalent to an additional $2tr in GDP, due to women’s increased participation in the workforce since 1970. Further, more recent projections by the International Labour Organisation indicate that reducing the gender gap by just 25pc (a target G20 leaders committed to in 2014 — “25 by 25”) would increase global GDP by $5.8 trillion by 2025. A team at the University of Castilla-La Mancha studied the performance of 4,277 Spanish companies and found that the ones with more women in research and development were significantly more likely to introduce radical new innovations into the market over a two-year period.

(Adapted from “Empowering Female Leadership = Outperforming the Competition,” by Abigail Bisi, published on October 11, 2019, by consultancy Maddock Douglas)

Published in Dawn, The Business and Finance Weekly, , March 15th, 2021