From Lab to Leaps: Boston Dynamics and its Ambitious Future

By: Siyanda Pali 

In a world increasingly captivated by the possibilities of robotics, few companies occupy the same imaginative terrain as Boston Dynamics. Their name conjures images of agile robots dancing, leaping, and navigating complex environments with an uncanny human-like grace. But the story of Boston Dynamics is not just one of technological marvels; it's a chronicle of ambition, perseverance, and a vision for a future where robots seamlessly integrate into our lives.

Robot Atlas assists a worker on scaffolding (youtube)

A Brief History: The Early Days and Marc Raibert's Vision

The tale begins in 1991, when Marc Raibert, a professor at the Massachusetts Institute of Technology (MIT), founded the company as a spin-off from his pioneering research in legged locomotion. Raibert, a visionary roboticist, believed that robots with legs offered greater adaptability and efficiency than their wheeled counterparts, especially in dynamic and unstructured environments. This philosophy became the cornerstone of Boston Dynamics' approach, laying the groundwork for their future innovations. 

The early years were marked by slow and steady progress. The company received support from DARPA, the U.S. Department of Defence's Advanced Research Projects Agency, allowing them to develop prototypes like the BigDog quadruped robot, designed for rugged terrain. While these early creations were far from polished, they showcased the potential of Raibert's vision.

Broader Horizons: Google Acquisition and Public Recognition

In 2003, Google acquired Boston Dynamics, providing the resources and platform the company needed to accelerate its development. The influx of funding allowed them to refine their designs, improve performance, and produce increasingly impressive robots. The world took notice in 2013, when a viral video of the humanoid Atlas robot performing parkour flips made headlines. This marked a turning point, catapulting Boston Dynamics into the public eye and solidifying their reputation as a leader in advanced robotics.

Growth and Innovation: Expanding Portfolio and Global Reach

Since then, Boston Dynamics' trajectory has been one of sustained expansion and innovation. Their product portfolio diversified with the introduction of Spot, a smaller and more commercially viable quadruped robot aimed at applications like inspection and security. Atlas continued to evolve, showcasing even more sophisticated movements and manipulation skills. In June 2017, Google sold the company, with SoftBank Group emerging as the new owner. The acquisition provided further financial backing and a renewed focus on commercialisation. As of June 2021, the company was acquired by Hyundai Motor Group, which owns an 80% stake, while SoftBank holds the balance.

Today, Boston Dynamics boasts a global presence, with offices in the United States of America, Switzerland, and Japan. Their revenue streams are diversifying, with Spot leading the charge. Partnerships with companies like Fluor for industrial inspection and Hyundai Motor Group for autonomous driving technology showcase their willingness to explore new and diverse applications.

As of 2022, Boston Dynamics boasts over 30 years of existence, over 300 employees, and hundreds of clients from over 35 countries around the world, with reported annual revenues in excess of R2.5 billion ($135.8 million US) in 2023.

Impact on Industries: Redefining Work and Pushing Boundaries 

The impact of Boston Dynamics' robots extends beyond technical marvels. They are poised to disrupt various industries, from logistics and warehousing to construction and emergency response. Spot, for example, has already proven its utility in inspecting offshore wind turbines and hazardous environments, minimising risk for human workers. The company's agility and manipulation capabilities offer the potential to automate tedious tasks and/or the proverbial dull, dangerous, and dirty jobs, increasing efficiency and productivity across diverse sectors.

However, the societal impact of these robots also sparks important conversations. In 2021, Spot, the company's quadrupled robot dog, was seen in military exercises conducted by the French army, allegedly for reconnaissance purposes. Vice President for Business Development at the time, Michael Perry, stated that the robot was sold by a European distributor, Shark Robotics, and that Boston Dynamics was not made aware of the latter.

 

This was a notable development, given the justifiable uneasiness surrounding the misuse or abuse of arms against innocent civilians in military confrontations between various forces. The world has seen and watched with shock and awe how, in certain cases, armies have committed not only war crimes but also wanton acts of genocide in certain parts of the world. If the technology developed by Boston Dynamics were to be weaponised against civilians by military establishments with the abovementioned proclivities, no one knows what kind of world mankind would live in. 

Despite Boston Dynamics conceding that their robots are used in military operations, this is only for non-weaponised applications. The company states that it has, in fact, forbidden the weaponisation of its robots in its ethical principles and its terms and conditions. It is expected that war criminals and those guilty of committing genocide will be dealt with decisively by the relevant institutions, such as the International Court of Justice.

 

The use of a Spot model in policing by the New York Police Department has also drawn sharp criticism from the public in recent times, as was the case in 2020. This resulted in its early retirement in 2021. Reasons for the above included threats to privacy and to civil liberties, among other things. However, the New York Police Department has since rolled out a new fleet of robots in 2023.

 Among the criticisms raised about the deployment of these robots in policing was the risk of further exacerbating the trust deficit between the police and certain communities, which have historically and currently largely been on the receiving end of unwarranted or disproportionate force by the police compared to other communities. Despite some arguing that the use of technologies such as robots in policing may be justified due to the dangerous nature of the work involved, it is likely that the debate about the use of robots in policing will continue, given the cost and dystopian element they invoke among some members of society.

One of the company's most fruitful initiatives is its recent collaboration with Central High School in Louisville, Kentucky, which allowed high school students to gain first-hand experience in working with an industrial robot. By opening up the world of robotics, computer programming and innovation in general, the gains to society are unquantifiable, given the benefits to society which are likely to be realised as a result of a young population with a passion for subjects such as engineering, robotics and computer programming, among others.

Concerns about job displacement, ethical considerations for autonomous robots, and the potential for misuse necessitate careful consideration and transparent dialogue. Boston Dynamics acknowledges these concerns and emphasises their commitment to responsible development and collaboration with stakeholders.

The Future: Beyond Leaps, Towards Collaboration and Integration

As we look ahead, Boston Dynamics' future appears to be brimming with opportunity. The company is actively pursuing advancements in AI, machine learning, and sensor technology, aiming to make their robots even more adaptable and autonomous. Collaborations with robotics researchers and ethicists will be crucial to ensuring responsible development and mitigating potential risks.

The ultimate goal, as envisioned by Raibert and furthered by successive leadership, is a future where robots seamlessly collaborate with humans, augmenting our capabilities and enhancing our lives. Integrating these robots into various industries without displacing workers will require careful planning and reskilling initiatives. Open and transparent communication with the public will be paramount to addressing ethical concerns and building trust.

Boston Dynamics' journey is more than a tale of engineering marvels; it's a testament to the power of human ingenuity and ambition. The company has pushed the boundaries of robotics, sparking both excitement and caution. As they look towards the future, navigating the challenges and seizing the opportunities, one thing remains clear: Boston Dynamics is poised to be a crucial player in shaping the world of intelligent machines and their place in our lives.

Of Gramsci, Astrologers and Bikinis (Part 3 of 3)

 By: Siyanda Pali

Economist and Business Professor Aaron Levenstein once stated that," Statistics are like bikinis, what they reveal is suggestive, but what they conceal is vital." Such is the affinity for data and statistics. This is the case due to an innate desire to measure, to quantify that which is being observed or examined. However, in the pursuit to gauge Africa's progress, it is important not to lose focus of all the parts which comprise of the big picture.

FW De Klerk, Nelson Mandela, Thabo Mbeki

One of the most popular measures for growth and development used as an Economic indicator of societies is Gross Domestic Product (GDP). The concept of GDP was invented by American Economist Simon Kuznets in 1934, and as a measure, is used to quantify the overall production which has taken place within the borders of a country over a year. It highlights the monetary value of all final goods and services produced over the latter mentioned period. There is also a variation of this metric, Gross National Product, which measures all economic activity or the production of all goods and services of a country, irrespective of location, as long as a certain nationality is being observed eg a South African factory in South Africa would constitute part of South Africa's GDP, but would not do so in Mali. Conversely, a South African factory in Mali would also be included in South Africa's GNP, but would not form part of South Africa's GDP. 

This measure (GDP) has become popular for numerous reasons eg it produces an overall picture of the state of an economy. However, it has its shortcomings. Firstly,  the inherent constraint of focusing on the total production of goods and services within the borders of a country is somewhat myopic in an open economy, with GNP being favoured as a better measure by others. Secondly, and perhaps more significantly, is the fact that it disproportionately favours economic output over well-being. eg a preoccupation with increased economic growth does not adequately take other factors such as environmental factors as metrics of development and well-being in a society. 

The latter adds impetus to the notion that there needs to be a shift to measuring or paying attention to metrics which have greater significance in a society. Per capita income is particularly useful because it quantifies the average income of each individual citizen of a country, given total GDP. It is an extremely useful measure, because it provides a sense of how inclusive growth within a society is. The Consumer Price Index (CPI) is another measure which indicates whether or not incomes of individuals are losing purchasing power at unreasonable or abnormally high rates. 

The traditional measures from a Developmental Economics, Microeconomics and Macroeconomics perspective are well-known. However, this does not mean that we ought to remain exclusively fixated or bound by them. In contrast, it is plausible to explore other metrics which also provide more valuable insights, and will be more fruitful in analysing progress in a developmental state.  Another development measure which can or ought to be particularly useful in a developmental state is the rate of land reform which has taken place per annum or in total, which I refer to as the Land Reform Quotient (LRQ), ranging from 0 to 1, with 0 indicating no land reform post independence to 1 indicating perfect land reform or redistribution post independence . In the case of South Africa, the Department of Rural Development and Land Reform indicated in a 2017 report that Whites owned 72% of farm and agricultural land, Coloureds owned 15%, Indians owned 5% and Africans, which constitute more than 80% of the population, owned only 4%. This is a critical, but disturbing metric to note, given that South Africa has had a democratic government for more than 28 years. Related to land ownership, is the Gini coefficient, which measures the wealth inequality in a nation. According to a World Bank report in March 2022, South Africa is the world's most unequal society, with 10% of the population owning more than 80% of the wealth. It is not astonishing to note that one of the reasons stated for such large disparities in wealth ownership, is landlessness among the general population. It goes without saying that more than a century of legislated dispossession, with the 1913 Natives Land Act of particular significance, will not automatically be addressed by a neoliberal inclination.  

Contrary to popular belief, the African continent is wealthy beyond compare. The United Nations states that the continent boasts about a third of the world's mineral reserves, 12% of the world's oil reserves, and 8% of the world's natural gas. It is also endowed with 40% of the world's Gold, and up to 90% of the world Chromium and Platinum. Furthermore, the world's greatest quantity of reserves of Diamonds, Uranium and Cobalt, are in Africa. The latter, mostly situated in the Democratic Republic of Congo, will be crucial for the electric vehicle market in the long-run. In addition, Africa possesses almost two-thirds of the world's arable land, as well as approximately 10% of the world's renewable fresh water reserves. These and more, comprise of Africa's riches. 

With 30% to 50% of wealth in Africa's countries consisting of natural capital, it is important to ask: what returns or benefits, if any, do citizens or the general population reap from this wealth? What sovereign wealth funds have been created for the benefit of societies? What are the infant mortality rates within a nation? How robust is the healthcare system? Does the population have access to quality infrastructure and transportation? Does the general populace have access to affordable energy, decent housing and services? At a broader level, does the structure or architecture of a society promote upward mobility for the general population, or is this the case for only an elite few?  

One of the challenges on the continent, other than illicit financial flows, which are estimated at $195 billion US per annum, are leaders who come to power, and eventually use their power for the purposes of self-aggrandisement. The leaders and their families become fabulously wealthy almost overnight, while the vast majority of the population remain stagnant in terms of welfare and material terms. This is a phenomenon which is common globally, with political capital and mileage in a society being translated into financial capital for an elite few.

There are numerous examples either by unlawful means or through policy instruments, in which the latter is realised. In Nigeria, former President Sani Abacha amassed an estimated fortune of $ 5 billion US at the time of his death in 1998. The per capita income in Nigeria at the time was a mere $2090 US. In South Africa, the likes of Tokyo Sexwale (estimated net worth $ 200 million US), Saki Macozoma (R 565 million or $38.8 million US) , Patrice Motsepe (R44.23 billion or $3.1 billion US) as well as the current President, Cyril Ramaphosa (R10 billion or $ 700 million US) became wealthy  almost overnight, initially thanks to a policy called Black Economic Empowerment (BEE). It is or was certainly their right to enter the business arena. However, one must question whether this policy has made a tectonic shift in the lives of the majority native population in South Africa, whether or not it does indeed alter the structural foundations which perpetuated centuries of dispossession and alienation of South Africa's workers.

How, you may ask, does the hegemon maintain its power? This, according to Gramsci, is achieved by taking control of the intellectuals in a society, the education, and the philosophy which drives people to political action. The earliest Marxists were so focused on a war of maneuver, in anticipation of the proletariat revolution which Marx had predicted. As such, they were completely unaware that a population could be so disjointed that a proletariat revolution might never take place because the hegemon had prevailed in the war of position. Addressing this aspect, noted Gramsci, is the key to advancing any significant social change in a society.

The precursor for why a hegemon maintains its power is because of a strong motivator which drives the behaviour of the population: self-interest. This is partly the reason why Apartheid in South Africa continued for as long as it did. It is the reason why people in political parties, companies, institutions, governments etc, turn a blind eye to gross injustices and atrocities. They behave in such a manner either out of naivety or apathy because the current system appears to work in their favour or due to the desire to appeal to a certain power structure, with the hope that their loyalty to the hegemon will be rewarded. This mindset of an indifference to injustice is one of the greatest challenges a movement seeking a bona fide social change needs to overcome in the minds of the population. 

Not only are the disparities in wealth inequality in South Africa disturbing, the trend from an income inequality perspective is equally gloomy, often exacerbated along racial lines. In an Oxfam SA report relating to the pay gap between top executives and ordinary workers, it was discovered that the gap between CEOs and ordinary workers in Spain was 172:1. In the USA, it was 300:1. In India, it was 483:1. Alas, in South Africa, the gap was a staggering 541:1. What stage of Capitalism is South Africa in for it to be normal for a CEO to earn an income 541 times that of a normal employee? 

If we are to ever realise a true and genuine freedom in South Africa and Africa, White supremacy, among other things, ought to be dismantled at a material, cultural and epistemic level. Gramsci correctly implores us to keep a healthy and general skepticism about the status quo. If not, there is a high probability that despite having political power in the form of democratically elected governments after centuries of colonial and Apartheid rule, the hegemon remains in power, and at a material, cultural and epistemic level, things remain the same.

We ought to remain circumspect about the fact that the goal of the hegemon is to remain in power. Furthermore, it is to do so with the consent of the population. Given the above, it is vital for us at a national and continental level to heed the words of Dr Martin Luther King Jr in a 1966 speech, in which he implored his audience to be maladjusted to injustice. 

On a sobering note, the former-mentioned Oxfam report states that "It takes 4.58 days for the best-paid executive in Shoprite to earn what a temporary worker at vineyards in South Africa will earn in their lifetime." Africa is a wealthy continent in which the general populace seldom enjoy the wealth of their land, and in some instances, their labour, a source of incredible cognitive dissonance, unless drastic steps are taken to reverse the tide. 

To quote former Uruguayan President Jose Mujica, "Governments cannot create magic, but they can redistribute the wealth." We ought not to fear to reimagine a different country and continent, for the national democratic revolution ought to find expression by creating opportunity and value for all members of society. 

Of Gramsci, Astrologers and Bikinis (Part 2 of 3)

By: Siyanda Pali

In a 1930 letter to his sister-in-law Tatiana, Gramsci once stated that he liked, "to have a concrete interlocutor or adversary." He alluded to the "polemic nature" of his intellectual framework in its entirety. Never has such a statement been so ironic for a people living in such an age as this.

The American-Canadian Economist Kenneth Galbraith once stated that," The only function of economic forecasting is to make astrology look respectable." That irreverent notion has probably never been so clearly illustrated as has been the case over the past 2 years. The Covid-19 pandemic has altered life as we know it. So illuminating has been the experience that this plague will go down in history as one of the most significant events of the 21st century.

Milky Way Galaxy (Hubble Space Telescope)

In November of 2019, I moved to Beijing, China with much aplomb and optimism. It was very much a summer month in South Africa, with its typical, frequent scorchers. However, just a few hours later, I had arrived to a chilly, snow-laden Beijing. I had never experienced such icy temperatures prior to my arrival there, so it's safe to say that my body had to adjust to this winter wonderland. Little did I know what awaited me just a few months along the path.

The Chinese Spring Festival, or the Chinese Lunar New Year, tentatively taking place between January and February of each year, is one of the biggest holidays in Mainland China. In fact, it's so gigantic there is no greater movement of people anywhere else on earth, with the holiday being dubbed the "world's largest human migration". About 385 million Chinese people made the trip to various cities within Mainland China in 2018. There is no doubt that similar numbers were on the cards for the year 2020, with many Chinese workers and students eager to spend the week-long holiday period with loved ones. However, in the background was brewing a crisis so devastating that the government was encouraging citizens to shelve such plans for fear of contagion going from bad to worse. 

There were murmurs of an epidemic which had gripped Wuhan, the capital city of China's centrally-located Hebei province. This respiratory disease, first detected around 31 December 2019, had such cataclysmic consequences that all of Wuhan was placed on lockdown. The death toll began to climb. Within a matter of days, lives were altered forever. The bustling city of Beijing, boasting a population of more than 20 million people, was almost reduced to pin-drop silence. Before we knew it, we would not be working on company premises following the Spring Festival, We would become experts at working online.

By the time the rest of the world reckoned with rising infection and mortality rates, we in China were already well-adept with this new reality. A part of this reality was the tsunami of massive lay-offs from companies which were simply crippled by, among other things, an inability to generate additional revenue in the prevailing conditions at the time, and having to adapt in such circumstances. The International Labour Organisation estimates that some 81 million jobs were lost in the Asia Pacific region alone as a result of Covid-19. Another aspect of this new reality was dealing with ruthless propaganda, which started to blame foreigners for the Coronavirus. Black people were especially mistreated, irrationally so, with some experiencing incessant police harassment, point-blank refusals for admissions at hotels, refusals to access basic services such as buses, forced evictions, with some being forced to find accommodation under the winds and rains of heaven, to sleep under bridges. Despite most imported cases being from Chinese citizens who had returned from abroad, some Africans or people of African descent were subjected to forced testing in 2020,despite having no travel history outside China, or interaction with infected people.

The impact of Covid-19 has also been significant globally. Nations such as Italy, Spain, the UK, and the USA were dealt a crushing blow by Covid-19, as their health systems were often strained to maximum capacity. The loss of life was and still is the greatest tragedy of all. 

The fallout both within China and abroad displayed idiosyncrasies of each nation, battling the same problem. A prime example of this was a test of whether one of the key pillars necessary for access to truthful and timeous information, free speech, was indeed on solid ground. Two cases in China specifically, those of Dr. Li Wenliang, a former Ophthalmologist at the Wuhan Central Hospital, as well as that of Zhang Zhan, a former lawyer and citizen journalist, hold clues for the global community. Dr Li had sent a message to fellow practitioners on 30 December 2019, in a bid to alert them of a potential severe respiratory syndrome resembling the SARS outbreak in Wuhan, and that they ought to protect themselves from infection accordingly. However, within a matter of days, the Wuhan Public Security Bureau ordered him to sign a statement in January 2020, which asserted that he had made disingenuous statements, and that he had disturbed the peace. Dr Li returned to his duties after signing this statement, where he contracted SARS CoV-2,allegedly from a patient. He lost his battle with the virus, and died on 7 February 2020, leading to an outpouring of support, as well as great vexation from Chinese citizens, a great servant of the people was no more. 

Around the same time that this was unfolding, citizen journalist and former lawyer Zhang Zhan gave first-hand accounts of what was taking place in Wuhan via her smartphone as the outbreak wreaked havoc. Her posts ceased in May 2020, with reports that she had been arrested. She was later convicted by a Shanghai court in December 2020 under a charge of "picking quarrels", and sentenced to 4 years imprisonment. Both Zhang Zhan and Dr Li unfortunately paid a heavy price for their erring on the side of truth in that society.

The recovery in 2020 was no less remarkable in Mainland China, with various measures implemented to manage the Coronavirus being rolled out in different cities and provinces accordingly. As such, it was disconcerting to many around the world to note that 2 years later, there were cities which had gone under lockdown, with food shortages and fatalities being reported in a city such as Shanghai, one of China's most developed cities, and a financial hub in Asia. 

To date, more than 500 million cases and 6.29 million deaths as a result of the Coronavirus have been reported globally. The big question, perhaps on the minds of many is: Why was the world so unprepared for such a disaster, and what lessons can be learnt? It is unfortunate that more than 2 years later, some countries are still battling to contain infection rates from the Corona virus. If the adage that "prevention is better than cure" is indeed true, what could be done to prevent a scenario such as the brutality of Covid-19 being unleashed upon humanity, even before it starts?

Perhaps there are industries in which remote work will be a permanent feature. It is not unforeseen that a hybrid model will suit others better, while some will seek to make full use of the advantages of face-to-face and in-person interaction. A silver lining is that the aviation industry, according to IATA (International Air Transport Association), forecasts passenger numbers to reach a 94% level of 2019 figures in 2022, as well as full recovery in 2023. Given our experience, perhaps it is prudent to use the Latin phrase common in Economics circles, ceteris paribus (all things being equal) when making forecasts. 

It was a grave concern that as Africans reported discriminatory behaviour and racism in Mainland China in 2020, as a result of the Covid-19 outbreak, the response from the African Union was underwhelming, conveying a lethargic and incoherent organisation at a moment of crisis for the countless Africans in China and elsewhere in the world. Such a culture needs to change. In spite of this, the pandemic also brought out the best in mankind, with solidarity and camaraderie which will live on in the hearts and minds of many, both in China and across the globe. 

There is no question that the world has experienced great upheavals over the past 2 years, with different nations offering different solutions to a catastrophe such a Covid-19, an enemy felt by all, and visible to none. However, it has become apparent that the world needs strong institutions which will ensure that human rights, human dignity and cooperation ought to remain paramount at all times.

Furthermore, the time is ripe to affirm that institutions which profess to serve all of humanity, such as  the United Nations, must reform as a matter of urgency, in order to ensure that Africa, a continent with a population of 1.4 billion people (16% of the world's population), has a permanent seat at the UN Security Council. The status quo, which paternalistically seeks to set the timetable for Africa's freedom and dignity, is untenable. 

Africa Month: Of Gramsci, Astrologers and Bikinis (Part 1 of 3)

By: Siyanda Pali

In approximately 1 year from now, the Organisation of African Unity (OAU) will commemorate  60 years since its inception on 25 May 1963. Egypt will celebrate 69 years since its Revolution Day or National Day on 18 June of 1953. The Federal Republic of Nigeria will celebrate its 62nd year of independence in October of this year, as will the Federal Republic of Somalia on 1 July 2022. The Republic of South Africa marked 28 years of independence on 27 April of this year. These are all significant periods of time. With the hopes and dreams of 1.39 billion people in the balance, this is a befitting time as any to take stock. 

AU headquarters (africa.com)

On the eve of the 20th century, the last decade in particular, the Italian Marxist scholar, philosopher, theorist, thinker and writer Antonio Gramsci was born in Sardinha, Italy. The fourth of 7 sons to Francesco and Guiseppina Gramsci, he entered the world on 22 January 1891. As fate would have it, he was a man who would fight against the odds his entire life.

 At birth, and during the formative years of his life, he battled a disorder, Pott's disease, which caused a lump on his chest and his back. At the time, doctors were convinced this would be the end of him. Remedial measures for this included a harness with straps which girded his deformed frame from the armpit area, among others, from which he was hung from the ceiling as therapy. In the likely event of his demise, a coffin in which he was to be buried was stored by his parents in their house. This was the start of Gramci's life.  

In addition to his personal struggles, mostly related to his health, he also endured a period of family turmoil. His father was unceremoniously arrested for alleged embezzlement in 1898, which forced the young Gramsci to abort his plans to continue his education, finding work as a casual labourer in numerous jobs. He eventually completed his high school education in Cagliari, where he resided with his elder brother Genaro, then a staunch socialist with a military background. However, despite the obvious influence of his brother, the young Gramsci's intellectual posture was not that of a socialist, but rather that of Sardinian nationalism, borne of the discontent of the Sardinian peasantry such as miners by their rapidly developing northern neighbours, which was invariably repressed by the Italian mainland. 

It was in 1911 that Antonio Gramsci won a scholarship to study at the University of Turin. Aged 20, his stance shifted from that of Sardinian nationalism to that of a society divided along class lines: bosses and workers. Despite possessing academic and intellectual chutzpah, Gramsci discontinued his studies at the University of Turin in 1915 at the age of 25 due to mostly the blight of ill-health, financial difficulties as well as increasing political engagements, leaving the university having acquired a vast knowledge of philosophy and history. 

Gramsci later fell foul of Mousoulini's fascist regime, which led to his arrest in 1926, despite his parliamentary immunity, amid an imposition of emergency laws predicated by an alleged assassination attempt on Mussolini's life. The words uttered by the then prosecutor at the trial are perhaps the most famous words uttered at that time. They continue to capture the imagination of thinkers, readers, writers and scholars alike. "For twenty years, we must stop this brain from functioning", were the ironic utterances of the prosecutor. Little did they know that Gramsci's imprisonment would have the complete opposite effect on his intellectual prowess and productivity. He ended up writing more than 3000 pages of history and analysis, as well as more than 30 notebooks.

In the Communist Manifesto, Marx predicts that at some point, the proletariat would overthrow the bourgeoisie. All they had to lose were their chains. He foresaw that they would then implement a new system of economic stratification. There's no doubt that some were hoping that this would be Communism. Perhaps others were hoping for Socialism. The Communist Manifesto was published in 1848. To the surprise of some Neo-marxist scholars, this did not take place in the west during the 19th century, neither did it occur in the 20th century. Why was it that people who were working in intolerable conditions, which may have very well inspired the Communist Manifesto in the first place, remain in such conditions? 

Friederich Engels made a scathing critique of Capitalism in his 1845 book "The Conditions of the Working Class in England". To his credit, it was based upon facts and evidence, which he dutifully gathered from parliamentary reports, chamber of commerce dispatches etc. His goal was to engage in his critique based upon an objective data framework. Engels noted, among other things, that, "They are given damp tenements, basement hovels or attic rooms that are neither water-proof from above or below. Their houses are built in a way that the moist air has no outlet..women made incapable of giving birth, children crippled, men weakened, limbs crushed, entire generations blighted, infected with emaciation and infirmity, merely to fill the purses of the bourgeoisie".  At a broader level, it raised questions about what happens in a society when the full might of the negative externalities of rampant industrialisation in the form of capitalism is at its zenith? It raised questions about basic labour rights in societies.

In spite of the above conditions of despair, Marx's prediction did not come to pass. It became clear among some thinkers and scholars that control over a population extended far beyond the hallowed halls of parliament. It became evident that political control is almost always predicated by cultural control. Gramsci also examines the concept of political control, exploring the question that when there is a dominant class or social group in a society, how does such a class or group rise to power? Why would the proletariat acquiesce to participating in a system which contributes to their repression or oppression? 

The answer to why the latter was true, according to Gramsci, was due to a concept which he referred to as Cultural Hegemony. Gramsci the thinker is probably most well-known for his work on Cultural Hegemony, which was an expansion of 'hegemony' as propounded by Russian Marxist Vladimir Lenin, which described the political leadership of the working class in a democratic revolution. The root of the word 'hegemony' has it's origins from the Greek, which means, "to lead" or "to rule over" according to some translators. In ancient Greece, a hegemon then, was a state with an extraordinary military advantage over another state. It denoted the threat or possibility of physical dominance of one state by another. As such, if the weaker or relatively weaker state did not comply with the demands of the hegemon, they faced the probability of a certain unpleasant future event such as annexation, invasion, being burnt to ashes etc. 

The term 'hegemony' referred to the danger or possibility of physical dominance over a population.  As highlighted by Stephen West, in the modern era in which we live, the definition of hegemony needs to evolve to capture the reality of the status quo. Those who exercise power have come to know that military dominance is but one method of exercising control over a population, and that a far more effective means to do so, is by manipulating the cultural parameters which people have to circumnavigate. To be a human being, among other things, is to live within a certain culture. This then begs the question:  What is a culture? It is a set of norms, structures, ordinances, taboos, values. To paraphrase Stephen West, "it is the sum-total of all the rituals we engage with on a daily basis which all come together to create a cohesive society." To what degree, according to Gramsci, do the current norms and rules exist to reinforce themselves? To what degree do the current rules and norms exist in the minds of the population as nature in the world? To what extent is the reality of the world we live in attributable to nature, and how much of it is attributable to culture?  

The latter are incredibly pertinent questions because according to Gramsci, if a group or class can control the narrative, and convince the layman that the current set of cultural norms is a static, natural way in which the world is or works, there is little chance of protest, seeking justice or change. 

To explain nature, Jim Collins provides useful input in his book, "Good to Great: Why some companies make the leap, and others do not". He states," To use an analogy, the "Leadership is the answer to everything" perspective is the modern equivalent of the "God is the answer to everything" perspective that held back our scientific understanding of the physical world in the Dark Ages. In the 1500's, people ascribed all events they didn't understand to God. Why did the crops fail? God did it. Why did we have an earthquake? God did it. What holds the planets in place? God. But with the Enlightenment, we began the search for a more scientific understanding -physics, chemistry, biology and so forth. Not that we became atheists, but we gained deeper understanding of how the universe ticks. Similarly, every time we attribute everything to "Leadership," we're no different to people from the 1500s. We're simply admitting our ignorance. Not that we should become leadership atheists (leadership does matter)".

According to Gramsci, dominant social classes have the ability to dictate cultural norms. As such, those born in such societies tend to associate these cultural norms as nature. They often see things as 'the way the world is', something one ought to learn to accept. 

The latter, as per Gramsci, is the reason why Marx's prediction did not come true. It is why the proletariat never broke free from the chains which oppressed or suppressed them. They had accepted them as the "natural state of the world they lived in." 

According to Gramsci, cultural norms become the 'common sense' which the proletariat use to rationalise their position in the world. When the 'common sense' of one's world serves to justify the dominance of one class by another, with any reasonable critique made of the status quo met with the unsatisfactory response "that's how the world is" or "that's how the world works", ones very being becomes a pillar upholding cultural hegemony. Gramsci does not necessarily purport that life should be one without any exertion, challenge or difficulty. However, the more plausible question would be: how challenging, strenuous or difficult does life have to be? What aspects of one's life, accepted as culture, does one accept in their life, and as a result, only benefits in a highly skewed manner, the interests of a dominant group in a society? 

One of the best examples of this is the prevalence of overt and subliminal racism in a society. It permeates every aspect of everyday life, and navigating this is no small feat in South Africa, Africa or anywhere else in the world for that matter. 

In 1992, Nelson Mandela, Tito Mboweni and Saki Macozoma were part of a delegation which represented South Africa at the World Economic Forum in Davos. Mr Mandela was to appear with a panel of other speakers such as FW De Klerk and Prince Mangosuthu Buthelezi. The then future Minister of Labour, Tito Mboweni and Saki Macozoma pursuaded Nelson Mandela to tone down his rhetoric on nationalisation. While at Davos, having caught wind of the ANC's economic plans, Li Peng, China's Premier at the time, requested the chairperson of the WEF to arrange a meeting with Nelson Mandela, during which he shared that from China's own experience, perhaps nationalisation was not the best route to take. This sentiment was echoed by the Vietnamese Prime Minister. After these discussions, Mandela beckoned to the ANC delegation that they ought to "forget this nationalisation thing, [and] focus on the basic needs of our people". Shortly afterwards, the team was off to South Africa, and following some deliberations and the Nasrec Conference, a policy document, 'Ready to Govern' was born.

What an awesome responsibility was placed squarely upon the shoulders of South Africa's first democratically elected government. In essence, they had to conceptualise a new country, after centuries of colonial and apartheid rule. Some aspects were handled masterfully, while others can and should be improved. 

The importance of Gramsci's work as a scholar is perhaps useful for not only South Africa, after 28 years of democratic rule, but also for the African continent, with the Organisation of African Unity (OAU) formed in 1963, and its successor, the African Union, formed in 2002 in Durban, South Africa. By pausing to consider what aspects of our lives in actual fact constitute nature and what aspects constitute culture, and deeply interrogate Gramsci's theory of Cultural Hegemony, perhaps we can make strides towards crystalising what our values are, ensuring that the national democratic revolution can find expression in South Africa, and across Africa. 

The Elephant in the Room

By: Siyanda Pali 

I studied Economics at the undergraduate level for various reasons. Among these, was to get an understanding of how the economic machine works, how and why societies make the policy decisions they do, as well as how societies develop.

 The curriculum had plenty of meat in it: Classical and neoclassical economic theory. It featured, among others, prominent American Economist Robert Solow, who famously asked, "Why are we so rich, and they so poor?" Robert Solow went on to develop his now world-renowned Solow Growth Model, a theory of economic growth which explains how societies achieve growth rates as a function of different combinations of population growth rates, savings and technological progress in a society. This was further explained by the Augmented Solow Growth Model. Other scholars such as Mankew, Romer and Whiel also featured prominently, and made significant contributions to the understanding of classical and neoclassical economic theory. 

(Siyanda Pali) Dream Town, Hangzhou, China

 It is perhaps common knowledge that Britain was the foremost country to undergo an industrial revolution in the 1700s, doubling its per capita GDP in 58 years. This was followed by the USA, which doubled its per capita GDP in 47 years from the year 1839. Japan was not too far behind, doubling its per capita GDP in 44 years from 1885. China reached a new lexicon, doubling its per capita GDP every 10 years since its reform period under Deng Xiaoping from 1978.

 Some of the most famous countries to date which are regarded as 'growth miracles' include Asian nations such as South Korea, Singapore, Taiwan and Japan, among others. There was no explicit "East Asian Model", as these nations adopted varying national strategies. Singapore and South Korea fostered interventionism, while Hong Kong followed a laissez-faire approach. They also prized relatively stable exchange rates and economic environments, and being wary of prolonged periods of high inflation. High savings and investment were promoted. Healthcare and education were bolstered, which improved the strength of the labour force. A technocratic cohort of beaurocrats was also empowered to manage the economy. 

 One of the most interesting characteristics of the Asian Tigers which may not be given as much attention in neoclassical Economic theory, is the fact that nations such as China, South Korea, Japan and Taiwan all had land reform programs after World War 2. China's land reform program under Mao Zedong was perhaps the most brutal. Wealthy landowners in China were on par with formerly landless peasants. If they were fortunate enough, the former were allowed to farm much smaller plots than they had previously owned. If they weren't so fortunate , they were beaten to death. 

 The Cultural Revolution also had some disastrous consequences. Intellectuals experienced a baptism of fire under Mao, with many being imprisoned. This repression of the intelligentsia invariably blighted China's ability to make full use of its human capital in that era.

 Of South Korea, Tony Michelle, states that "Land reform had been completed and the long-standing problem of rural unrest had been solved. Only unfavorable pricing policies prevented peasants from investing in their own land. There was a rise in demand for education at all levels. Illiteracy dropped from 78% in 1945 to 27.9% in 1960." Land reform in the above nations was a crucial bedrock for the massive increase in economic growth which followed. The relative equality in terms of ownership of assets proved to be an important step in the progress which was to be realised. 

 High levels of inequality do not augur well for any part of the world. The French, Russians and Americans have all had their own unique experiences in this regard. Sheryl WuDunn captures some of the geist of 19th century USA, noting that "The American dream was marred by appalling inequity, by gross manipulations of the political system, by lynchings, by bank collapses, by brutal repression of labour and leftist activists." According to the World Bank in March of 2022, my homeland, South Africa, has the world's highest levels of inequality, with 10% of the population owning more than 80% of the wealth. In direct proportion to this, the South African Department of Rural Development and Land Reform released a Land Audit report in November 2017, with its contents being a major concern. The report states that 72% of total farm and agricultural holdings by individual landowners were White, Coloureds own 15%, Indians owned 5%, while Africans, which constitute a majority of the population (around 80%) owned a paltry 4%. 

 Is the latter the reason behind the formation of uncouth elements such as Operation Dudula, a new far-right group which spreads anti-immigrant rhetoric and operates as a pseudo police force in South Africa's informal Settlements and townships, masquerading as an anti- narcotics unit which victimizes foreigners?

 Despite however supposedly noble it's intentions for its formation, Operation Dudula's modus operandi is patently unlawful, and makes a mockery of the rights of civilians. Furthermore, as with other far-right and extremist groups such as the Proud Boys in the USA, Pegida in Europe, Generation Identitaire in France, Operation Dudula and or its members completely ignore or misrepresent the facts in pursuit of their agenda. Crime, in its various forms for example, is not solely the preserve of migrants. This fact does not condone any criminal activity by migrants or foreign entities in South Africa. However, it is more plausible to be honest about the fact that social ills such as corruption, petty and organised crime know no gender, colour or creed. As far as this is concerned before the law, what's good for the goose is good for the gander. 

 To borrow from Robert Solow once again, technology and foreign investment are in fact lubricants for growth and development in a society. To be sure, the natives of a country deserve priority when it comes to talent meeting opportunity. However, migrants also bring their human capital, which benefits society at large. As a result, it is futile to harass innocent people who wish to utilize their skill, talent and intellect to improve their lives. It is also inhumane and a complete misrepresentation of the values of South African society. 

 The above was more eloquently expressed by former US President Ronald Raegan in his last speech as US President, stating that, "We lead the world, because unique among nations, we draw our people--our strength-- from every country and every corner of the world. And by doing so, we continuously renew and enrich our nation. While other countries cling to the stale past, here in America we breathe life into dreams. We create the future, and the world follows us into tomorrow. Thanks to each wave of new arrivals to this land of opportunity, we're a nation forever young, forever bursting with new energy and new ideas, and always on the cutting edge, always leading the world to the next frontier. This quality is vital to the future of our nation. If we ever closed the door to new Americans, our leadership in the world would soon be lost."

 Perhaps Operation Dudula has highlighted a complete lack of confidence in South Africa's state security apparatus, institutions such as the National Prosecuting Authority and the police to uphold their social contract with the citizens of South Africa: to protect the state and her citizens against nefarious elements, and to uphold law and order. The Operation Dudula phenomenon may also be a clear indication that some members of our society are highly dissatisfied with the trajectory of the development of South African society. It is indeed a moment of introspection for the powers that be. Either way, Operation Dudula is a vigilante group, and ought to be dealt with decisively for their vigilantism within the bounds of the law. 

 It goes without saying that the levels of inequality in South Africa are abnormally high. Perhaps this is a moment for South Africa to ensure that a systematic and just land reform program is realised. This was one of the first steps taken by the Asian Tigers post liberation from colonial rule, and with other reforms, led to a massive and sustained economic boom in those nations. Of China, Nicholas Kristof summarises this succinctly, "China's economic boom seems to have been a chemical reaction of sorts. The first ingredient was the Confucian heritage that emphasised education and savings. Then came the Maoist revolution that unified the country, broke the entrenched interests, divided up the land, and supplied financial and human capital. Third were the quasi-capitalist policies of Deng Xiaoping. None of these factors was enough by itself; in combination, they have been explosive. For all its cruelty, the Communist Revolution laid the groundwork for the economic revolution that came later." 

 South Africa abolished Apartheid in 1990, and has had a democratic government for 27 years. It is highly unlikely that an 'invisible hand' approach will deliver anything worth writing home about when it comes to South Africa's unacceptable levels of wealth inequality. Not only does South Africa need to urgently address an inequality crisis, it also needs to unlock all its latent potential, and to drive the nation into the future, one where wealth creation, among other things, can take place in an egalitarian society. With such demands, only the best technocrats in the public service and beaurocracy will do. A different country and a different continent is possible.

The Crocodile in the Yangtze River, Kuhn and a New Lexicon (Part 3 of 3)

By: Siyanda Pali

In 1962, Thomas Kuhn, who initially began as a Physicist and subsequently became a Historian and Philosopher of Science, published what was then a controversial but is now a highly influential book among scholars entitled, "The Structure of Scientific Revolutions." Leiden University Faculty of Humanities Lecturer of Metaphysics and Philosophy of Science, Victor Gijsbers, is certainly one of the best teachers of this subject I have ever heard. Alas, I digress. In his book. Kuhn postulates a theory for how science develops over time, mainly through 4 phases:

• The Pre-paradigmatic phase- which occurs only once in every field of science
• Normal Science
• Crisis
• Scientific Revolution

The latter 3 phases, Kuhn argued, happen all the time, with a return either to Normal Science or a clean break from the status quo by means of a Scientific Revolution.

Shanghai (chinalocaltours.com)

He also introduces the concept of a 'paradigm', which can be defined as all the theories, facts, methods etc, which a scientific discipline takes for granted and which guide scientific research in that discipline. 

The Pre-paradigmatic phase is the genesis of any scientific discipline, beginning without any mutually inclusive methods, theories and concepts. Scientists in this phase still need to come up with and develop the above eg the first historians were not in agreement about the correct way to write history. The earliest physicists didn't really know what terms to use when speaking about nature. Scientists in this paradigm can sometimes be poles apart. They do things differently, operate under different assumptions, have varying measurements and possess contrasting ideas about which problems are worth exploring. This, Kuhn believes, is an unproductive phase, because not only is collaboration for scientists synonymous to chiselling a rock with a Banana, it is also difficult to build upon the work of other scientists. It's a somewhat chaotic period until, for some or other reason (which can also be fascinating to explore), the next phase is reached. 

Normal Science then, is a state of affairs in which there is a generally accepted or upheld paradigm. In this phase, Kuhn states that scientists believe that it would be a waste of time to be critical about the paradigm e.g. Oxygen is an essential element for human life or that one Jan Van Riebeeck arrived in South Africa in 1652. He also notes that this is plausible because without it, no worthwhile or significant work or research could take place. This is the importance of a theoretical or methodological background. Within Normal Science, scientists are trying to solve puzzles within the rules of the paradigm. It is also common then, that within Normal Science, scientists come across an anomaly, a problem within the dominant paradigm which at the time, scientists are unable to solve. While Karl Popper would hold the view that anomalies are evidence of the falsehood of a theory and a paradigm, and both ought to be rejected outright as a result, Khun, on the other hand, believes that there will always be anomalies within a given paradigm in every sphere or scientific discipline i.e. things which scientists are unable to explain at the time within a given paradigm.

During Normal Science, according to Khun, scientists still possess a great deal of confidence that anomalies can and will be solved within a given paradigm. However, if the number of anomalies grows and scientists are unable to solve them within a given paradigm, this leads to a dearth of confidence in the paradigm and to the next phase, which is 'Crisis'. In this phase, scientists become critical of the paradigm and entertain the possibility of changing it. Radical and new thinking emerges as a result. The more prolonged a state of Crisis is, the more appealing fresh and radical ideas become. 

There are then 2 ways to end a Crisis. Scientists within the paradigm either need to solve the anomalies within the paradigm, which leads to a resurgence of confidence in the paradigm and Normal Science is then restored. Alternatively, the realisation of something else takes hold: a 'Scientific Revolution'. 

Within a Scientific Revolution, the old paradigm is rejected or abandoned by a great deal of scientists and a new paradigm gains traction and is supported by a large number of scientists. A new set of methods, theories and concepts become the standard which possess the potential to solve anomalies. Within a Scientific Revolution, one theory is forsaken, and another is embraced by the scientific community. This is what Kuhn refers to as a 'Paradigm shift'. These are very pronounced moments in history and have the potential to make an impact for decades or even centuries to come eg Aristotelian vs Newtonian vs Einsteinian science. It is important to note that, according to Kuhn, Normal Science is the rule and Scientific Revolution is the exception. Some of the most significant work is done in Normal Science. However, when a state of stagnation is reached, it is prime time for a period in which there is a high probability of a Scientific Revolution.

So, what does Alibaba have to do with Kuhn's Structure of Scientific Revolutions? Perhaps it is best, once again, to look at the life of the Founder of Alibaba, Jack Ma, for some answers. Alibaba is a companay born, to a large extent, due to Jack Ma's openness to new ideas, as well as the foresight, insight, drive, among other things, to bring the vision to fruition. There are numerous other invaluable components which were necessary to build the company into the behemoth which it is today, such as great talent, both from China and abroad, excellent Strategic Management, great leadership etc. Alibaba was an idea whose time had come and is a perfect example of the opportunities which exist before, during and after industrial revolutions. The 4th Industrial Revolution may very well cause significant disruption globally. However, one is fairly confident that nascent industries today eg Data Analytics, the Internet of Things (IoT), Artificial Intelligence (AI) etc will unlock a prodigious amount of opportunities in the future. It is also necessary for societies, invariably, to do some thinking about how the latter-mentioned for example (AI) should and could be utilised to best serve humanity, given Moore's Law for example.   

Perhaps it is fitting for me to also state another reason why I think Alibaba is a darling among so many. This reason is one of the primary reasons for my love and passion for technology and innovation: the ability to constantly engage great ideas and the immense value which the company creates for millions of people across the globe and the exponential potential to continue to do so over time.

One of the greatest tenets from the Alibaba story and that of Jack Ma specifically is that the human spirit cannot be catalogued. This is why it was possible for a former English Teacher to start and grow one of the largest technology companies the world over, directly and indirectly employing millions of people. I also think it is important to note that I am not advocating for the dogmatic stance that entrepreneurs or entrepreneurship is the only standard or measure of success we ought to aspire to. As important as they may be, we ought to delve deeper in our inquiry. If a global pandemic has not taught us that we ought to truly appreciate the diversity of gifts bestowed upon mankind, I'm not too sure what will. I do think it is more apt to strive for the creation of societies which allow people to express themselves, their talents and to fulfill their potential. 

The Crocodile in the Yangtze River, Kuhn and a New Lexicon (Part 1 of 3)

 By: Siyanda Pali

Hangzhou is a wonderful city situated on the east coast of China’s Zhejiang province. It’s the province’s capital city, with a vibrant population of no less than 10 million people and boasts numerous reasons as its claim to fame. Not only is it the home of the world-renown Grand Canal, a world heritage site which stretches all the way to Beijing, China's capital, the picturesque West Lake and Leifeng’s Pegoda, it is also the home of the mightiest crocodile in the Yangtze river: Alibaba.

Jiuxi, Hangzhou (Siyanda Pali)

Hangzhou is fantastic for several reasons as I have mentioned above. Perhaps one of the most noteworthy of these is because of its disposition to be an incredible hybrid between natural beauty and the city or urban life. One has the serenity and lush Jiuxi forest to explore as well as the Binjiang district, which has the stunning Qianjiang New Town, a modern metropolis. Equipped with a very good public transportation network, which encompasses, the Hangzhou Metro, busses and designated bicycle lanes, the city will also be the host of the 2022 Asia Games, which all bode well for the city’s future prospects.

Binjiang District, Hangzhou (Siyanda Pali)

It was in this city that in 1999, Jack Ma, a former teacher, and 18 co-founders started  Alibaba in his apartment. They were spurred on by the belief in the massive potential which technology and innovation, the electrifying force of the internet, had in playing a role to better enable small and micro-enterprises to connect producers with customers and markets both domestically and globally. From those humble beginnings, the Alibaba group has grown in leaps and bounds to become one of the world’s most significant players in the mobile and e-commerce space. In 2014, it debuted on the New York Stock Exchange and became the world’s largest IPO, raising $25 billion US. In 2020, the company and its subsidiaries also boast a presence in digital media, cloud computing and entertainment, amongst others. It is also listed on the Hong Kong Stock Exchange, with revenues of up to RMB 509.7 billion or $72 billion US for the year ended March 2020. 

I was finally able to visit the company in August this year, adjacent to the Hangzhou Normal University CangQian campus. It was great to be at the headquarters of this brand which is now adored and admired by many across the globe. 

Perhaps it is apt for one to ask: What is it about Alibaba that has such an allure for many? What is it that induces such a great affinity for the company by so many? Depending upon who is being asked, one is likely to encounter different answers for different reasons. Among the main reasons for the above, besides its profitability of course, is the inspirational life story of Jack Ma himself. He befriended foreign tourists regularly over a 9-year period at the Hangzhou Hotel, which also gave him an opportunity to not only practice his English, but to also engage with different ideas. That single act, following his intellectual curiosity to learn English, has been one of the building blocks of not only his success, but also that of many others. Having struggled to find his footing for years in various pursuits throughout his life prior to starting Alibaba, he faced numerous setbacks. However, in his own words," I never gave up." The rest is history. 

Alibaba, Hangzhou (Siyanda Pali)

Having been fortunate enough to engage an Alibaba employee and friend of mine about what it is he enjoys or likes about the company, I was able to discover that not only was the compensation very good to excellent, the company culture was one that is appealing. Employees have a sense of freedom at the compay. Jack Ma has always maintained that at Alibaba, customers are first, employees are second, and shareholders are third. This flies in the face of conventional wisdom, propagated by one US Economist Milton Friedman, that the shareholder is the be all and end all of a company. Nevertheless, this orientation to ensuring that customers and employees are treated exceptionally well has paid dividends over the years. It's 6 new values are a succinct and powerful driving force:

1.  Customers first, employees second, shareholders third.
2. Trust makes everything simple.
3. Change is the only constant.
4. Today's best performance is tomorrow's baseline.
5. If not now, when? If not me, who?
6. Live seriously, work happily. 

Alibaba Values (Siyanda Pali)

Global GDP as projected by the IMF's World Economic Outlook will be around -4.9% in 2020. China's GDP figure has been affected by the above, shrinking by some 6.8% in the first quarter of 2020 in comparison to the same period in 2019. In a year which will very well be an annus horribillis for millions across the globe, mainly propagated by the Covid-19 global pandemic, Alibaba has managed, as have some technology companies, to increase revenues by a fair margin, 35.2% for the year ended March 2020. These annualised earnings are higher than those of other firms which are peers, similar to the USA's FANG (Facebook, Amazon, Netflix, Google) shares, BAT (Baidu, Alibaba, Tencent), with Baidu having reported a 7% decrease in annualised earnings in Q1 of 2020, and Tencent having reported a net gain of approximately 30%.

The Alibaba group has several strengths in its arsenal. Among these are its dominant market position within China. Alipay, for example, has a ubiquitous presence throughout China. You can expect businesses from as small as a street vendor to a large multinational to have either a WeChat Pay (competitor) or an Alipay QR code as an acceptable means of payment for goods and services. China, as a result, is incredibly close to being a cashless society. Alibaba also has a well-diversified product portfolio. Some of the other companies which form part of the Alibaba group include Taobao, which is China's largest C2C sales medium, as well as TMall, China's largest B2C online retail marketplace. It has also made strategic partnerships through mergers and acquisitions which have created synergies for its service offering. This is also coupled with an expanding wholesale and retail market in China. 

Some of the risks and challenges the company must navigate include strong competiton both domestically and globally from the likes of Baidu, Pinduoduo, Jingdong, Tencent, Google, Amazon etc, as well as not only operating in an era of protectionism, but also being able to grow revenues.

Other internal risk factors which the company needs to circumnavigate to maintain trust in the market, as stated in their 2020 annual report include:

• The quality and attractiveness of content available through their digital economy together with the value, quality and functionality of products and services
• The integrity of not only the company, but also its software providers, merchants, logistics providers, service providers and other participants in their digital economy
• An earnest endeavour to maintain high levels of service
• The safety and integrity of data on company platforms
• The fairness and effectiveness of rules governing company marketplaces and platforms
• The ability to protect intellectual property rights and consumers
• The company's ability to enable reliable payment and escrow via Alipay

There is no question that as a city, Hangzhou offers the best of both worlds: natural beauty which few cities can compare with. On the other end of the continuum, it boasts a buzzing metropolis, further fueled by a tech giant such as Alibaba, possessing a rich history in the world of start-ups and organic, technology companies. Alibaba, as have all companies in 2020, have had to negotiate a devastating period for humanity. In spite of the above, as well as other risks and challenges it faces, it has done fairly well in 2020, and continues to tread with caution in its currently tumultous environment.