Facebook’s next project: American inequality


Nancy Scola at Politico: “Facebook CEO Mark Zuckerberg is quietly cracking open his company’s vast trove of user data for a study on economic inequality in the U.S. — the latest sign of his efforts to reckon with divisions in American society that the social network is accused of making worse.

The study, which hasn’t previously been reported, is mining the social connections among Facebook’s American users to shed light on the growing income disparity in the U.S., where the top 1 percent of households is said to control 40 percent of the country’s wealth. Facebook is an incomparably rich source of information for that kind of research: By one estimate, about three of five American adults use the social network….

Facebook confirmed the broad contours of its partnership with Chetty but declined to elaborate on the substance of the study. Chetty, in a brief interview following a January speech in Washington, said he and his collaborators — who include researchers from Stanford and New York University — have been working on the inequality study for at least six months.

“We’re using social networks, and measuring interactions there, to understand the role of social capital much better than we’ve been able to,” he said.

Researchers say they see Facebook’s enormous cache of data as a remarkable resource, offering an unprecedentedly detailed and sweeping look at American society. That store of information contains both details that a user might tell Facebook — their age, hometown, schooling, family relationships — and insights that the company has picked up along the way, such as the interest groups they’ve joined and geographic distribution of who they call a “friend.”

It’s all the more significant, researchers say, when you consider that Facebook’s user base — about 239 million monthly users in the U.S. and Canada at last count — cuts across just about every demographic group.

And all that information, say researchers, lets them take guesses about users’ wealth. Facebook itself recently patented a way of figuring out someone’s socioeconomic status using factors ranging from their stated hobbies to how many internet-connected devices they own.

A Facebook spokesman addressed the potential privacy implications of the study’s access to user data, saying, “We conduct research at Facebook responsibly, which includes making sure we protect people’s information.” The spokesman added that Facebook follows an “enhanced” review process for research projects, adopted in 2014 after a controversy over a study that manipulated some people’s news feeds to see if it made them happier or sadder.

According to a Stanford University source familiar with Chetty’s study, the Facebook account data used in the research has been stripped of any details that could be used to identify users. The source added that academics involved in the study have gone through security screenings that include background checks, and can access the Facebook data only in secure facilities….(More)”.

When citizens set the budget: lessons from ancient Greece


 and  in The Conversation:Today elected representatives take the tough decisions about public finances behind closed doors. In doing so, democratic politicians rely on the advice of financial bureaucrats, who, often, cater to the political needs of the elected government. Politicians rarely ask voters what they think of budget options. They are no better at explaining the reasons for a budget. Explanations are usually no more than vacuous phrases, such as “jobs and growth” or “on the move”. They never explain the difficult trade-offs that go into a budget nor their overall financial reasoning.

This reluctance to explain public finances was all too evident during the global financial crisis.

In Australia, Britain and France, centre-left governments borrowed huge sums in order to maintain private demand and, in one case, to support private banks. In each country these policies helped a lot to minimise the crisis’s human costs.

Yet, in the elections that followed the centre-left politicians that had introduced these policies refused properly to justify them. They feared that voters would not tolerate robust discussion about public finances. Without a justification for their generally good policies each of these government was defeated by centre-right opponents.

In most democracies there is the same underlying problem: elected representatives do not believe that voters can tolerate the financial truth. They assume that democracy is not good at managing public finances. For them it can only balance the budget by leaving voters in the dark.

For decades, we, independently, have studied democracy today and in the ancient past. We have learned that this assumption is dead wrong. There are more and more examples of how involving ordinary voters results in better budgets.

In 1989, councils in poor Brazilian towns began to involve residents in setting budgets. This participatory budgeting soon spread throughout South America. It has now been successfully tried in Germany, Spain, Italy, Portugal, Sweden, the United States, Poland and Australia, and some pilot projects were set up in France too. Participatory budgeting is based on the clear principle that those who will be most affected by a tough budget should be involved in setting it.

In spite of such successful democratic experiments, elected representatives still shy away from involving ordinary voters in setting budgets. This is very different from what happened in ancient Athens 2,500 years ago….

In Athenian democracy ordinary citizens actually set the budget. This ancient Greek state had a solid budget, in spite of, or, we would say, because of the involvement of the citizens in taking tough budget decisions….(More)”.

Can Crowdsourcing and Collaboration Improve the Future of Human Health?


Ben Wiegand at Scientific American: “The process of medical research has been likened to searching for a needle in a haystack. With the continued acceleration of novel science and health care technologies in areas like artificial intelligence, digital therapeutics and the human microbiome we have tremendous opportunity to search the haystack in new and exciting ways. Applying these high-tech advances to today’s most pressing health issues increases our ability to address the root cause of disease, intervene earlier and change the trajectory of human health.

Global crowdsourcing forums, like the Johnson & Johnson Innovation QuickFire Challenges, can be incredibly valuable tools for searching the “haystack.” An initiative of JLABS—the no-strings-attached incubators of Johnson & Johnson Innovation—these contests spur scientific diversity through crowdsourcing, inspiring and attracting fresh thinking. They seek to stimulate the global innovation ecosystem through funding, mentorship and access to resources that can kick-start breakthrough ideas.

Our most recent challenge, the Next-Gen Baby Box QuickFire Challenge, focused on updating the 80-year-old “Finnish baby box,” a free, government-issued maternity supply kit for new parents containing such essentials as baby clothing, bath and sleep supplies packaged in a sleep-safe cardboard box. Since it first launched, the baby box has, together with increased use of maternal healthcare services early in pregnancy, helped to significantly reduce the Finnish infant mortality rate from 65 in every 1,000 live births in the 1930s to 2.5 per 1,000 today—one of the lowest rates in the world.

Partnering with Finnish innovation and government groups, we set out to see if updating this popular early parenting tool with the power of personalized health technology might one day impact Finland’s unparalleled high rate of type 1 diabetes. We issued the call globally to help create “the Baby Box of the future” as part of the Janssen and Johnson & Johnson Innovation vision to create a world without disease by accelerating science and delivering novel solutions to prevent, intercept and cure disease. The contest brought together entrepreneurs, researchers and innovators to focus on ideas with the potential to promote child health, detect childhood disease earlier and facilitate healthy parenting.

Incentive challenges like this award participants who have most effectively met a predefined objective or task. It’s a concept that emerged well before our time—as far back as the 18th century—from Napoleon’s Food Preservation Prize, meant to find a way to keep troops fed during battle, to the Longitude Prize for improved marine navigation.

Research shows that prize-based challenges that attract talent across a wide range of disciplines can generate greater risk-taking and yield more dramatic solutions….(More)”.

The Social Media Threat to Society and Security


George Soros at Project Syndicate: “It takes significant effort to assert and defend what John Stuart Mill called the freedom of mind. And there is a real chance that, once lost, those who grow up in the digital age – in which the power to command and shape people’s attention is increasingly concentrated in the hands of a few companies – will have difficulty regaining it.

The current moment in world history is a painful one. Open societies are in crisis, and various forms of dictatorships and mafia states, exemplified by Vladimir Putin’s Russia, are on the rise. In the United States, President Donald Trump would like to establish his own mafia-style state but cannot, because the Constitution, other institutions, and a vibrant civil society won’t allow it….

The rise and monopolistic behavior of the giant American Internet platform companies is contributing mightily to the US government’s impotence. These companies have often played an innovative and liberating role. But as Facebook and Google have grown ever more powerful, they have become obstacles to innovation, and have caused a variety of problems of which we are only now beginning to become aware…

Social media companies’ true customers are their advertisers. But a new business model is gradually emerging, based not only on advertising but also on selling products and services directly to users. They exploit the data they control, bundle the services they offer, and use discriminatory pricing to keep more of the benefits that they would otherwise have to share with consumers. This enhances their profitability even further, but the bundling of services and discriminatory pricing undermine the efficiency of the market economy.

Social media companies deceive their users by manipulating their attention, directing it toward their own commercial purposes, and deliberately engineering addiction to the services they provide. This can be very harmful, particularly for adolescents.

There is a similarity between Internet platforms and gambling companies. Casinos have developed techniques to hook customers to the point that they gamble away all of their money, even money they don’t have.

Something similar – and potentially irreversible – is happening to human attention in our digital age. This is not a matter of mere distraction or addiction; social media companies are actually inducing people to surrender their autonomy. And this power to shape people’s attention is increasingly concentrated in the hands of a few companies.

It takes significant effort to assert and defend what John Stuart Mill called the freedom of mind. Once lost, those who grow up in the digital age may have difficulty regaining it.

This would have far-reaching political consequences. People without the freedom of mind can be easily manipulated. This danger does not loom only in the future; it already played an important role in the 2016 US presidential election.

There is an even more alarming prospect on the horizon: an alliance between authoritarian states and large, data-rich IT monopolies, bringing together nascent systems of corporate surveillance with already-developed systems of state-sponsored surveillance. This may well result in a web of totalitarian control the likes of which not even George Orwell could have imagined….(More)”.

Observation and Experiment: An Introduction to Causal Inference


Book by Paul R. Rosenbaum: “In the daily news and the scientific literature, we are faced with conflicting claims about the effects caused by some treatments, behaviors, and policies. A daily glass of wine prolongs life, or so we are told. Yet we are also told that alcohol can cause life-threatening cancer and that pregnant women should abstain from drinking. Some say that raising the minimum wage decreases inequality while others say it increases unemployment. Investigators once confidently claimed that hormone replacement therapy reduces the risk of heart disease but today investigators confidently claim it raises that risk. How should we study such questions?

Observation and Experiment is an introduction to causal inference from one of the field’s leading scholars. Using minimal mathematics and statistics, Paul Rosenbaum explains key concepts and methods through scientific examples that make complex ideas concrete and abstract principles accessible.

Some causal questions can be studied in randomized trials in which coin flips assign individuals to treatments. But because randomized trials are not always practical or ethical, many causal questions are investigated in nonrandomized observational studies. To illustrate, Rosenbaum draws examples from clinical medicine, economics, public health, epidemiology, clinical psychology, and psychiatry. Readers gain an understanding of the design and interpretation of randomized trials, the ways they differ from observational studies, and the techniques used to remove, investigate, and appraise bias in observational studies. Observation and Experiment is a valuable resource for anyone with a serious interest in the empirical study of human health, behavior, and well-being….(More)”.

Free Speech in the Filter Age


Alexandra Borchardt at Project Syndicate: “In a democracy, the rights of the many cannot come at the expense of the rights of the few. In the age of algorithms, government must, more than ever, ensure the protection of vulnerable voices, even erring on victims’ side at times.

Germany’s Network Enforcement Act – according to which social-media platforms like Facebook and YouTube could be fined €50 million ($63 million) for every “obviously illegal” post within 24 hours of receiving a notification – has been controversial from the start. After it entered fully into effect in January, there was a tremendous outcry, with critics from all over the political map arguing that it was an enticement to censorship. Government was relinquishing its powers to private interests, they protested.

So, is this the beginning of the end of free speech in Germany?

Of course not. To be sure, Germany’s Netzwerkdurchsetzungsgesetz (or NetzDG) is the strictest regulation of its kind in a Europe that is growing increasingly annoyed with America’s powerful social-media companies. And critics do have some valid points about the law’s weaknesses. But the possibilities for free expression will remain abundant, even if some posts are deleted mistakenly.

The truth is that the law sends an important message: democracies won’t stay silent while their citizens are exposed to hateful and violent speech and images – content that, as we know, can spur real-life hate and violence. Refusing to protect the public, especially the most vulnerable, from dangerous content in the name of “free speech” actually serves the interests of those who are already privileged, beginning with the powerful companies that drive the dissemination of information.

Speech has always been filtered. In democratic societies, everyone has the right to express themselves within the boundaries of the law, but no one has ever been guaranteed an audience. To have an impact, citizens have always needed to appeal to – or bypass – the “gatekeepers” who decide which causes and ideas are relevant and worth amplifying, whether through the media, political institutions, or protest.

The same is true today, except that the gatekeepers are the algorithms that automatically filter and rank all contributions. Of course, algorithms can be programmed any way companies like, meaning that they may place a premium on qualities shared by professional journalists: credibility, intelligence, and coherence.

But today’s social-media platforms are far more likely to prioritize potential for advertising revenue above all else. So the noisiest are often rewarded with a megaphone, while less polarizing, less privileged voices are drowned out, even if they are providing the smart and nuanced perspectives that can truly enrich public discussions….(More)”.

Regulatory sandbox lessons learned report


Financial Conduct Authority (UK): “The sandbox allows firms to test innovative products, services or business models in a live market environment, while ensuring that appropriate protections are in place. It was established to support the FCA’s objective of promoting effective competition in the interests of consumers and opened for applications in June 2016.

The sandbox has supported 50 firms from 146 applications received across the first two cohorts. This report sets out the sandbox’s overall impact on the market including the adoption of new technologies, increasing access and improving experiences for vulnerable consumers as well as lessons learnt from individual tests that have been, or are being, conducted as part of the sandbox.

Early indications suggest the sandbox is providing the benefits it set out to achieve with evidence of the sandbox enabling new products to be tested, reducing time and cost of getting innovative ideas to market, improving access to finance for innovators, and ensuring appropriate safeguards are built into new products and services.

We will be using these learnings to inform any future sandbox developments as well as our ongoing policymaking and supervision work….(More)”.

Smarter New York City: How City Agencies Innovate


Book edited by André Corrêa d’Almeida: “Innovation is often presented as being in the exclusive domain of the private sector. Yet despite widespread perceptions of public-sector inefficiency, government agencies have much to teach us about how technological and social advances occur. Improving governance at the municipal level is critical to the future of the twenty-first-century city, from environmental sustainability to education, economic development, public health, and beyond. In this age of acceleration and massive migration of people into cities around the world, this book explains how innovation from within city agencies and administrations makes urban systems smarter and shapes life in New York City.
Using a series of case studies, Smarter New York City describes the drivers and constraints behind urban innovation, including leadership and organization; networks and interagency collaboration; institutional context; technology and real-time data collection; responsiveness and decision making; and results and impact. Cases include residential organic-waste collection, an NYPD program that identifies the sound of gunshots in real time, and the Vision Zero attempt to end traffic casualties, among others. Challenging the usefulness of a tech-centric view of urban innovation, Smarter New York City brings together a multidisciplinary and integrated perspective to imagine new possibilities from within city agencies, with practical lessons for city officials, urban planners, policy makers, civil society, and potential private-sector partners….(More)”.

Small Data for Big Impact


Liz Luckett at the Stanford Social Innovation Review: “As an investor in data-driven companies, I’ve been thinking a lot about my grandfather—a baker, a small business owner, and, I now realize, a pioneering data scientist. Without much more than pencil, paper, and extraordinarily deep knowledge of his customers in Washington Heights, Manhattan, he bought, sold, and managed inventory while also managing risk. His community was poor, but his business prospered. This was not because of what we celebrate today as the power and predictive promise of big data, but rather because of what I call small data: nuanced market insights that come through regular and trusted interactions.

Big data takes into account volumes of information from largely electronic sources—such as credit cards, pay stubs, test scores—and segments people into groups. As a result, people participating in the formalized economy benefit from big data. But people who are paid in cash and have no recognized accolades, such as higher education, are left out. Small data captures those insights to address this market failure. My grandfather, for example, had critical customer information he carefully gathered over the years: who could pay now, who needed a few days more, and which tabs to close. If he had access to a big data algorithm, it likely would have told him all his clients were unlikely to repay him, based on the fact that they were low income (vs. high income) and low education level (vs. college degree). Today, I worry that in our enthusiasm for big data and aggregated predictions, we often lose the critical insights we can gain from small data, because we don’t collect it. In the process, we are missing vital opportunities to both make money and create economic empowerment.

We won’t solve this problem of big data by returning to my grandfather’s shop floor. What we need is more and better data—a small data movement to supply vital missing links in marketplaces and supply chains the world over. What are the proxies that allow large companies to discern whom among the low income are good customers in the absence of a shopkeeper? At The Social Entrepreneurs’ Fund (TSEF), we are profitably investing in a new breed of data company: enterprises that are intentionally and responsibly serving low-income communities, and generating new and unique insights about the behavior of individuals in the process. The value of the small data they collect is becoming increasingly useful to other partners, including corporations who are willing to pay for it. It is a kind of dual market opportunity that for the first time makes it economically advantageous for these companies to reach the poor. We are betting on small data to transform opportunities and quality of life for the underserved, tap into markets that were once seen as too risky or too costly to reach, and earn significant returns for investors….(More)”.

How Universities Are Tackling Society’s Grand Challenges


Michelle Popowitz and Cristin Dorgelo in Scientific American: “…Universities embarking on Grand Challenge efforts are traversing new terrain—they are making commitments about research deliverables rather than simply committing to invest in efforts related to a particular subject. To mitigate risk, the universities that have entered this space are informally consulting with others regarding effective strategies, but the entire community would benefit from a more formal structure for identifying and sharing “what works.” To address this need, the new Community of Practice for University-Led Grand Challenges—launched at the October 2017 workshop—aims to provide peer support to leaders of university Grand Challenge programs, and to accelerate the adoption of Grand Challenge approaches at more universities supported by cross-sector partnerships.

The university community has identified extensive opportunities for collaboration on these Grand Challenge programs with other sectors:

  • Philanthropy can support the development of new Grand Challenge programs at more universities by establishing planning and administration grant programs, convening experts, and providing funding support for documenting these models through white papers and other publications and for evaluation of these programs over time.
  • Relevant associations and professional development organizations can host learning sessions about Grand Challenges for university leaders and professionals.
  • Companies can collaborate with universities on Grand Challenges research, act as sponsors and hosts for university-led programs and activities, and offer leaders, experts, and other personnel for volunteer advisory roles and tours of duties at universities.
  • Federal, State, and local governments and elected officials can provide support for collaboration among government agencies and offices and the research community on Grand Challenges.

Today’s global society faces pressing, complex challenges across many domains—including health, environment, and social justice. Science (including social sciences), technology, the arts, and humanities have critical roles to play in addressing these challenges and building a bright and prosperous future. Universities are hubs for discovery, building new knowledge, and changing understanding of the world. The public values the role universities play in education; yet as a sector, universities are less effective at highlighting their roles as the catalysts of new industries, homes for the fundamental science that leads to new treatments and products, or sources of the evidence on which policy decisions should be made.

By coming together as universities, collaborating with partners, and aiming for ambitious goals to address problems that might seem unsolvable, universities can show commitment to their communities and become beacons of hope….(More)”.