Sure, it may get old being hassled by semi-English speakers in World of Warcraft selling their virtual gold for real-world cash, but were you aware they were doing their part to bring economic parity to the globe?
It's true! A new report from the World Bank says that gold farmers in China and Vietnam bring money into their economy at an even better rate than farmers of cash crops. The study estimates that 98 cents of every dollar made from gold farming stays in the nation where the work was done, an impressive number compared to the 7 cents made from the coffee industry.
By cutting out middle men, poorer countries are using the $3 billion virtual goods market to funnel cash from the West into their own impoverished nations. Plus, you don't have to spend time combing Winterspring for Thorium Ore. Everybody wins!
Reader Comments (47)
Posted: Apr 8th 2011 10:36PM BrianH said
holy shit, i didn't know it was that bad... or good?
Posted: Apr 8th 2011 10:41PM Daxter1985 said
Turns out buying gold isn't such a horrible thing to do after all.
Posted: Apr 8th 2011 10:49PM Spartacus1013 said
Yes. Everybody wins. Except for all of the players whose accounts have been hacked so all their virtual gold and loot can be stolen and sold.
Posted: Apr 8th 2011 11:38PM BananaBoat said
@Spartacus1013 - That happened to me in Diablo II many years ago. I'll never be certain of what happened to my gold and items, but I'm pretty sure they were just sold off.
I get where the World Bank is coming from, but they need to rethink what they are actually promoting here.
Reply
I get where the World Bank is coming from, but they need to rethink what they are actually promoting here.
Posted: Apr 9th 2011 12:53AM BananaBoat said
@BrianH - I know it is kind of petty, but what happened to me was a crime in some form or another. It doesn't make it okay just because the person on the other end may really have needed the money (far more than I needed the gold and items).
I have other problems with gold farming (namely that I've seen it kill the economy in plenty of MMO's over the years) but I realize that those issues are equally as non-PC when stacked against someones need to put food on the table and a roof over their head.
It's just... Nevermind. There is no politically correct way to argue about how impoverished third world gold farmers have ruined some of my favorite games. I'd have to turn in my .edu e-mail address, my student ID, and my liberal agenda.
Reply
I have other problems with gold farming (namely that I've seen it kill the economy in plenty of MMO's over the years) but I realize that those issues are equally as non-PC when stacked against someones need to put food on the table and a roof over their head.
It's just... Nevermind. There is no politically correct way to argue about how impoverished third world gold farmers have ruined some of my favorite games. I'd have to turn in my .edu e-mail address, my student ID, and my liberal agenda.
Posted: Apr 8th 2011 10:52PM BigD145 said
I do my part by paying taxes....
Posted: Apr 9th 2011 11:09AM akeso said
@BigD145
That would be true if the united states followed it's own advice and supplied .05% of our gdp for global poverty relief; we donate .2%.
In short, your taxes are providing only 40% of the minimum required to even make a difference according to our OWN economists. What we do provide is enough to say we donate more than anyone else (but a smaller %) and pay lip service to our ideals.
Reply
That would be true if the united states followed it's own advice and supplied .05% of our gdp for global poverty relief; we donate .2%.
In short, your taxes are providing only 40% of the minimum required to even make a difference according to our OWN economists. What we do provide is enough to say we donate more than anyone else (but a smaller %) and pay lip service to our ideals.
Posted: Apr 9th 2011 6:51PM jarodscarborough said
@akeso You're citing our government's contribution, the citizens still contribute more than anyone else. Also, quite honestly a lot of us are getting tired of giving out more than anyone else to people that hate us. Why should I care if Chinese gold farmers are bringing money into their economy? China has the second largest economy in the world but the people are still poor and abused 'cause the government is horrible. Japan is just about the only country that we should be bending over backwards for right now, those people are going through a lot, but you don't hear nearly the ruckus you heard for Haiti, and Haiti doesn't actually contribute anything to the rest of the world.
Reply
Posted: Apr 10th 2011 3:04PM GuardianLegend said
@jarodscarborough
Are you sure that starving poor Chinese of money will be an effective way of combating their government? Similar attempts were tried with Cuba and Iraq and with disastrous results.
Also, Japan's population is almost a mere 10% of China's population. China being the second largest economy in the world is irrelevant if it has a billion+ people to spread that money around. Plus there's no guarantee that a massive government shift in China would even lift people's wealth up significantly. India is the biggest democracy in the world, and its government is much more liked than China's, and yet India's per capita GDP is nearly 25% of China's.
Your political stance here strikes me as grotesque. Charity as a form of business investment. Blech. Do you also believe that large sectors of American society should be left behind since they do not have a good ROI (return on investment) when compared to other sectors of society? Do tell!
Reply
Are you sure that starving poor Chinese of money will be an effective way of combating their government? Similar attempts were tried with Cuba and Iraq and with disastrous results.
Also, Japan's population is almost a mere 10% of China's population. China being the second largest economy in the world is irrelevant if it has a billion+ people to spread that money around. Plus there's no guarantee that a massive government shift in China would even lift people's wealth up significantly. India is the biggest democracy in the world, and its government is much more liked than China's, and yet India's per capita GDP is nearly 25% of China's.
Your political stance here strikes me as grotesque. Charity as a form of business investment. Blech. Do you also believe that large sectors of American society should be left behind since they do not have a good ROI (return on investment) when compared to other sectors of society? Do tell!
Posted: Apr 8th 2011 10:54PM HellFiend said
No. We don't win. Its obvious funneling money out of the US via outsourced jobs doesnt help the US economy. Same here. It would benefit everyone more if the same money were put back into the economy in which it was earned.
But that's just my 2 cents (ever so becoming less valuable)
But that's just my 2 cents (ever so becoming less valuable)
Posted: Apr 9th 2011 2:03AM GuardianLegend said
@HellFiend
It could be argued that the wealthy American who is buying gold is freeing up their time, maximizing their entertainment, and then boosting their morale, thus allowing them to keep up a productive career.
Could be argued anyway... ;-P
PS-- For those who bought/rent it... Dead Space 2 appears to have been primarily made in China, judging by the credits. There's not much difference between buying from gold farmers and buying Dead Space 2, IMO.
Reply
It could be argued that the wealthy American who is buying gold is freeing up their time, maximizing their entertainment, and then boosting their morale, thus allowing them to keep up a productive career.
Could be argued anyway... ;-P
PS-- For those who bought/rent it... Dead Space 2 appears to have been primarily made in China, judging by the credits. There's not much difference between buying from gold farmers and buying Dead Space 2, IMO.
Posted: Apr 10th 2011 4:13AM (Unverified) said
@GuardianLegend
The makers of Dead Space 2 didn't wreck anyone else's gaming experience that they paid for in order to create Dead Space 2. Rather a big difference.
Reply
The makers of Dead Space 2 didn't wreck anyone else's gaming experience that they paid for in order to create Dead Space 2. Rather a big difference.
Posted: Apr 10th 2011 4:43AM GuardianLegend said
@(Unverified)
The comment topic is about labor outsourcing. In that context, I don't see a big difference between buying from gold farmers and buying Dead Space 2.
Reply
The comment topic is about labor outsourcing. In that context, I don't see a big difference between buying from gold farmers and buying Dead Space 2.
Posted: Apr 8th 2011 11:01PM Ezio Auditore da Firenze said
Hmm, I think I'll buy some gold this weekend.
Posted: Apr 8th 2011 11:06PM Neofalcon said
"Gold Farmer" is a misnomer and highly misleading. The vast majority of the gold these people sell is from accounts they have stolen. Many of these accounts are the very people who purchased gold from them in the first place. Getting your account hacked is such a huge problem in WoW now that they've had to implement authenticators to try to curb it.
Buying gold helps support this system. There's nothing good about it.
Buying gold helps support this system. There's nothing good about it.
Posted: Apr 9th 2011 2:00AM GuardianLegend said
@Neofalcon the World Bank says 20% of the gold is stolen from accounts, not the vast majority
Reply
Posted: Apr 9th 2011 5:23PM Drakkenfyre said
The World Bank is full of shit.
Why would they choose to make less money with a harder method, over more money with an easier method?
Farm gold with a human, or a bot, taking forever. Or placing some malicious software on sites, set up a few phishing sites, and whisper people in game, hope they fall for it, get their account info, log in, and steal all their gold?
The days of people farming for hours are ended. Even botting would take forever to get the kind of gold they sell. While one person's account might give them the gold to make 2-3 sells for only a few minutes worth of work.
Reply
Why would they choose to make less money with a harder method, over more money with an easier method?
Farm gold with a human, or a bot, taking forever. Or placing some malicious software on sites, set up a few phishing sites, and whisper people in game, hope they fall for it, get their account info, log in, and steal all their gold?
The days of people farming for hours are ended. Even botting would take forever to get the kind of gold they sell. While one person's account might give them the gold to make 2-3 sells for only a few minutes worth of work.
Posted: Apr 8th 2011 11:21PM PurpleHayes215 said
Oh, awesome! More American money the coffers o the next great power! Hope that mount is worth a world controlled by autocracy!
Posted: Apr 8th 2011 11:29PM Emophia said
everybody knows that you go to Ungoro crater to farm Thorium ore silly.
Posted: Apr 9th 2011 5:12PM VaultDweller13 said
@Emophia Yea, seriously. That place is a gold mine.... of thorium.
Reply
Posted: Apr 8th 2011 11:59PM dadanox said
You forgot to mention the cost that keyloggers impose. It's not just the virtual gold they steal. Along with taking your wow userid and password, they can take the credentials to your online bank account, email account, or any other site you log into. There's also the lost productivity of slowed computers and wrecked hard drives.
It's against the terms of service, wrecks in game economies, and takes away the joy of having earned a reward. There's no win here for the player, just the criminals who steal your stuff, then charge someone else to buy it.
It's against the terms of service, wrecks in game economies, and takes away the joy of having earned a reward. There's no win here for the player, just the criminals who steal your stuff, then charge someone else to buy it.
Posted: Apr 9th 2011 12:07AM mikeburnfire said
Strange. Perhaps Blizzard should take a page out of Zynga's book and offer players the ability to purchase in-game gold for real-world money.
Posted: Apr 9th 2011 5:27PM Drakkenfyre said
Thus increasing inflation, and having gold sellers reduce their prices, keeping the original problem in, and creating new ones.
When a company starts selling in-game currency, it means they are unbelievable greedy, a rip-off, in it only for the money, not caring about their gaming environment, or all 4.
Zygna doesn't exactly have the greatest reputation.
Reply
When a company starts selling in-game currency, it means they are unbelievable greedy, a rip-off, in it only for the money, not caring about their gaming environment, or all 4.
Zygna doesn't exactly have the greatest reputation.
Posted: Apr 9th 2011 12:19AM badpenny said
Gold farming business = money laundry
World Bank likey
World Bank likey
Posted: Apr 9th 2011 1:42AM GuardianLegend said
The global economy is so screwed up. A real life farmer makes less money than a person who farms virtual gold.
Posted: Apr 9th 2011 1:22PM GuardianLegend said
@Shinta
OK but it says that 98% of the money from gold farming stays local to the goldfarmer, in a $3 billion market. While a mere 7% of the money from coffee farming stays local to the coffee bean farmer, or $5.5 billion.
In order to establish which is wealthier, the coffee farmer or the video game gold farmer, we need to figure out how many workers there are, then divide those earlier billion dollar figures accordingly. My hunch is that, per person, the gold farmer is still richer than the coffee farmer.
PS -- I can't believe coffee farmers only get a 7% cut of the coffee business!!! What a bunch of crap. I hate capitalism.
Reply
OK but it says that 98% of the money from gold farming stays local to the goldfarmer, in a $3 billion market. While a mere 7% of the money from coffee farming stays local to the coffee bean farmer, or $5.5 billion.
In order to establish which is wealthier, the coffee farmer or the video game gold farmer, we need to figure out how many workers there are, then divide those earlier billion dollar figures accordingly. My hunch is that, per person, the gold farmer is still richer than the coffee farmer.
PS -- I can't believe coffee farmers only get a 7% cut of the coffee business!!! What a bunch of crap. I hate capitalism.
Posted: Apr 9th 2011 5:07AM AMonkey said
So really if I'm buying gold I'm actually a humanitarian? Wow good to know, I'll make sure I'll buy lots of gold when Guild Wars 2 comes out.
Posted: Apr 10th 2011 4:39AM GuardianLegend said
@Ziphion
There's a big difference between getting scammed out of your money and making a consensual business transaction.
Reply
There's a big difference between getting scammed out of your money and making a consensual business transaction.
Posted: Apr 9th 2011 6:15AM context said
You see, I knew it! ActivisionBlizzard is the devil!
Posted: Apr 9th 2011 9:47AM SheppyReturns said
So much rage against the gold farmers. You know what? Yes, if they hack and steal gold, that's bad but that's not where the bulk comes from. As for me, I work 40 hours a week, work on my own game designs an additional 20, socialize at least 10, and run board game demos at game stores. Translation? When I was playing WOW, and the main reason I quit, so sooooooooooo much of my gameplay (15 hours a week when I stopped) was devoted just to gathering gold so I could afford stuff. Not playing the game, not enjoying raids or battlegrounds, just gold farming. If there wasn't risk involved in buying this gold, my genuine response to the option, should I be playing MMOs right now is...
My Time < My Money Thus Reducing My Money makes My Time more valuable.
My Time < My Money Thus Reducing My Money makes My Time more valuable.
Posted: Apr 9th 2011 11:18AM Jack Kevorkian said
@SheppyReturns Gold sellers drive inflation thus making your money less valuable. I could really could not care less about the plight of Asian gold farmers.
Reply
Posted: Apr 10th 2011 12:03AM SheppyReturns said
@SheppyReturns
But it's still a game where skill is little to nothing, grinding out the best gear is everything, and sitting on a hillside for 8 hours is considered gameplay, right? Imagine if you could skip that 8 hours and get to the actual GAME? I know, I know... weird concept but it could happen.
Of course Blizzard could do the whole "legalize gold farming" thing, take the illicit aspect out of the industry that will exist whether they like it or not and control, take their cut, and allow this economy to actually balance itself the way it has in SOE games when they started regulating this stuff.
The main reason why I say the "gold farmers farming drives up the economy" argument is nonsense is because this stuff wasn't around in all MMOs. In fact it was barely present in Ultima Online or the first Everquest. What happened instead was certain guilds horded which drove up the economy. In the end, whether it's gold farmers is a corporate faction in space controlling the bulk of the galaxy's GNP, hording is hording.
Me, if I could get to the parts of the game that I enjoy without spending 31 hours getting to that glorious 3... where is the problem? "Oh boo hoo, it screws up the systems economy because apparently Blizzard doesn't want to profit off a system like this but will sell you a virtual pet for $20."
Reply
But it's still a game where skill is little to nothing, grinding out the best gear is everything, and sitting on a hillside for 8 hours is considered gameplay, right? Imagine if you could skip that 8 hours and get to the actual GAME? I know, I know... weird concept but it could happen.
Of course Blizzard could do the whole "legalize gold farming" thing, take the illicit aspect out of the industry that will exist whether they like it or not and control, take their cut, and allow this economy to actually balance itself the way it has in SOE games when they started regulating this stuff.
The main reason why I say the "gold farmers farming drives up the economy" argument is nonsense is because this stuff wasn't around in all MMOs. In fact it was barely present in Ultima Online or the first Everquest. What happened instead was certain guilds horded which drove up the economy. In the end, whether it's gold farmers is a corporate faction in space controlling the bulk of the galaxy's GNP, hording is hording.
Me, if I could get to the parts of the game that I enjoy without spending 31 hours getting to that glorious 3... where is the problem? "Oh boo hoo, it screws up the systems economy because apparently Blizzard doesn't want to profit off a system like this but will sell you a virtual pet for $20."
Posted: Apr 9th 2011 11:02AM SnatchTease said
Funny, that headline, World Bank does not.
Posted: Apr 9th 2011 12:04PM EvoHelix said
Wow, I suddenly feel really guilty reporting gold spammers...
Posted: Apr 9th 2011 12:27PM K5000 said
I just had to finally create a Joystiq account for this piece of news. I didn't knew this thing (gold farming as a business) was so far ahead - I must recommend all interested to read Cory Doctorow's book "For the Win: Organize to Survive!" which is set on this exact theme in the near future.
Posted: Apr 9th 2011 1:55PM (Unverified) said
This is an awful thing. Gold farmers are a direct detriment to the game and encourage hackers and hacking.
Posted: Apr 9th 2011 7:29PM Nhoj1983 said
To be honest if these gold farmers were truly benine I wouldn't have a problem with them. The issue is that they cause inflation... While there is always an exception to the rule it generally is bad for each and every gamer when players buy these things.
Also... you really are opening yourself to being hacked by even going to one of their sites... they have guides and info on some of them just so google will encourage you to click on that link... dowloading that cookie that will in the and lead to your account being hacked... I get the time is more important than cash argument... but jeesh.. the reality is if you get a good system going you usually can do better than you think.
Also... you really are opening yourself to being hacked by even going to one of their sites... they have guides and info on some of them just so google will encourage you to click on that link... dowloading that cookie that will in the and lead to your account being hacked... I get the time is more important than cash argument... but jeesh.. the reality is if you get a good system going you usually can do better than you think.
Posted: Apr 10th 2011 2:08AM russell1047 said
Wow all of a sudden joystiq users are a community of economists lol. Seriously though they should just hire gamers to be the economy think tank and we would be ok. Hell lets take over congress too! We would make this country so much better!
Posted: Apr 10th 2011 4:05PM 2401 Penitent Tangent said
Sooo... if Blizzard patched the game and somehow broke gold farming... the economies of third world countries could collapse? That's a lot of pressure!
Posted: Apr 11th 2011 1:37AM chronicus pr1me said
Wow, everyone wins... except the shmuck who buys the gold,lol. I bought a CD key code from an online shop that wasnt Battle.Net and hand on the bible, a day or two later, my account had been breached and the password was changed. Coincidence? I dont think so but who knows. It was guyforgame.com if your interested.
Posted: Apr 11th 2011 1:38AM chronicus pr1me said
...Lucky for me it was a new account and i had not stored CC info on my account.








