A zero-marginal-cost society

In hunter-gatherer societies prior to the Neolithic Revolution, there was no concept of ownership because resources were available and the population was small. With the transition of the agricultural revolution, humans developed the means and tools to advance, which led to an exacerbating population and the competition to own sources. Humans reach the maximum level of resources and competitive instincts, mine and yours, until the age of the Renaissance.

The philosophers of the Renaissance started a campaign to set new rules and regulations for ownership rights. Before the Industrial Revolution, humans were more concerned about ownership rights than affordability and availability. The Industrial Revolution created new cognitive capabilities in the mind, and humans moved towards the new frontiers of ownership.

With the rise of the machine revolution and the Fifth Industrial Revolution, humans moved slowly and adapted to new systems of collaboration. From ownership to affordability and collaborative sharing mechanisms, we are entering a new economic model named zero-marginal-cost society or collaborative sharing economy.

A zero-marginal-cost society is the new economic paradigm. This is the first new economic system to emerge since the advent of capitalism and its antagonist, socialism, in the early 19^th century; it is a remarkable historical event. This new economic system is called the collaborative commons. To succinctly mention, this economic system is different from the previous two systems.

Capitalism is based on ownership, and socialism is based on the concentration of resources in the hands of sovereign governments. This new economic system is based on the sharing economy. In his landmark work ‘The Zero Marginal Cost Society’, New York Times bestselling author Jeremy Rifkin describes how the emerging Internet of Things is speeding us to an era of nearly free goods and services, precipitating the meteoric rise of a global collaborative commons and the eclipse of capitalism. Human society has reached new levels where ownership of accessibility has become a sustainable norm.

For example, in the 20^th century, we struggled to own a house and a property, but now we focus not on ownership but on the accessibility of these things.

Ownership was cultured in our psychologies; now we are centred on accessibility. In a global society, we are witnessing a paradigm shift in the cognitive mindset. People are recognising the benefits of shared access to resources. To make the case clearer, there are a few examples to discuss. Companies like Uber and Airbnb have revolutionised transportation and accommodation. These platforms have created an incentive to use underutilised resources such as personal vehicles and spare rooms. This shift not only increased the visibility of availability and accessibility but also fostered an inclusive sense of collaboration.

Moreover, co-working spaces like WeWork, Regus, Daftarkhwan and Twinhub provide amenities such as networking opportunities and meeting rooms that foster collaboration. Tool-sharing Platforms like Share Grid and Peerby allow individuals to rent or borrow tools from other communities. This model has reduced the need to own the tools, promoting resource efficiency and reducing waste. In the realm of the fashion industry, clothing rental services like Rent the Runway, Rentole and Closet provide accessories for special events or every day wear. It provides high-quality fashion without the need for long-term ownership. Bike-sharing platforms have huge subscriptions in Pakistan. Platforms like EZBike provide easy access to bikes.

These above-mentioned case studies provide an eyewitness view of the changing dynamics of economics. This coming model is about sharing and collaborative consumption. How have we reached this turning point in economic history? It is the question you have developed while reading this. Human psychology has played a huge role in this model of economics. Whenever humans have had scarcity in history, they tend to focus on the centrality of the resources. With advancement, digitisation and technology, humans have accomplished abundance. Abundance leads to a sharing mindset, accessibility and affordability rather than a traditional economic model of ownership. Now we are entering a new phase of an abundance-driven economy. In the 21^st century, we will witness collaborative platforms and peer-to-peer networks.

From ownership culture to sharing culture, we will bear witness to the post-scarcity world where societal aspirations and structure will integrate us into a zero-marginal-cost society.

Published in The Express Tribune, August 28^th, 2023.

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