Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

In an era in which the pace of technological and digital development is accelerating, new economic models are emerging that go beyond traditional methods of production and consumption, and the “sharing economy” is one of the most prominent of these models. This model relies on technology to expand collaboration and exchange practices, and represents a radical shift in how individuals, communities, and businesses interact with resources and services.

Sharing economy basics and drivers

The sharing economy is based on a simple but revolutionary principle; This is that the idea of ​​access to goods and services may be more important than owning them. Through digital platforms, this model enables efficient redistribution of underutilized assets, promotes optimal use of resources and reduces environmental footprint. Platforms such as Uber, Lyft, and Airbnb have not only changed the sectors in which they operate, but have also influenced global economic models, demonstrating the transformative power of the sharing economy.

According to the latest studies, the sharing economy is expected to grow significantly over the next decade, with its global size expected to reach more than $500 billion by 2025, which also reflects the high demand for collaborative models and the widespread acceptance of this model in the global economy.

Then, the impact of the sharing economy goes beyond individual consumers, and extends to companies and institutions. By adopting shared resource models, it has become possible for companies to share resources and infrastructure, raise operational efficiency, reduce costs, and provide innovative services. This emerging collaborative approach is pushing the boundaries of traditional businesses and expanding their offerings and opportunities to enter new markets.

Economic, social and environmental impact

The sharing economy promises to achieve a balance between the economy, society and the environment, as it works to establish the principles of equality and distribute national resources more equitably, and expands on improving practices of access to resources and services, reducing the need for excessive individual consumption and investment in fixed assets, which in turn enhances economic efficiency and reduces waste. Moreover, with the advantage of providing opportunities to reuse unexploited assets, it contributes to enhancing environmental sustainability and supports green practices. From a social perspective, the sharing economy contributes to deepening social ties by encouraging interactions between individuals and segments of society, and provides economic opportunities to create alternative and flexible sources of income.

The sharing economy represents an important shift in the way we think about the economy and how to exchange resources and services, instead of focusing on individual ownership and excess consumption, and relies on the concept of participation, cooperation, and solidarity between individuals and communities to achieve common benefits.

The role of governments and public policies

For the sharing economy to achieve its full potential, supportive regulatory frameworks and policies remain essential, and governments must work to build environments that encourage innovation while protecting the rights of participants and consumers and ensuring fair competition. Policymakers must play their role in overcoming regulatory obstacles, especially concerns related to job security and the need for digital inclusion. Addressing these issues requires collaborative efforts among stakeholders to ensure that the sharing economy benefits all segments of society without exclusion and is in the interest of national economic growth.

What we must be aware of is that the sharing economy is more than just a new economic model; It is a means of enhancing competitive economic capabilities, and the expected task of policymakers is to formulate policies that feed this new economic model while addressing its challenges, and ensuring the expansion of its positive impact at the national economic level.