Disinformation Visualization: How to lie with datavis

Curated on Posted on by Stefaan Verhulst
Mushon Zer-Aviv at School of Data: “Seeing is believing. When working with raw data we’re often encouraged to present it differently, to give it a form, to map it or visualize it. But all maps lie. In fact, maps have to lie, otherwise they wouldn’t be useful. Some are transparent and obvious lies, such as a tree icon on a map often represents more than one tree. Others are white lies – rounding numbers and prioritising details to create a more legible representation. And then there’s the third type of lie, those lies that convey a bias, be it deliberately or subconsciously. A bias that misrepresents the data and skews it towards a certain reading.

It all sounds very sinister, and indeed sometimes it is. It’s hard to see through a lie unless you stare it right in the face, and what better way to do that than to get our minds dirty and look at some examples of creative and mischievous visual manipulation.
Over the past year I’ve had a few opportunities to run Disinformation Visualization workshops, encouraging activists, designers, statisticians, analysts, researchers, technologists and artists to visualize lies. During these sessions I have used the DIKW pyramid (Data > Information > Knowledge > Wisdom), a framework for thinking about how data gains context and meaning and becomes information. This information needs to be consumed and understood to become knowledge. And finally when knowledge influences our insights and our decision making about the future it becomes wisdom. Data visualization is one of the ways to push data up the pyramid towards wisdom in order to affect our actions and decisions. It would be wise then to look at visualizations suspiciously.
DIKW
Centuries before big data, computer graphics and social media collided and gave us the datavis explosion, visualization was mostly a scientific tool for inquiry and documentation. This history gave the artform its authority as an integral part of the scientific process. Being a product of human brains and hands, a certain degree of bias was always there, no matter how scientific the process was. The effect of these early off-white lies are still felt today, as even our most celebrated interactive maps still echo the biases of the Mercator map projection, grounding Europe and North America on the top of the world, over emphasizing their size and perceived importance over the Global South. Our contemporary practices of programmatically data driven visualization hide both the human eyes and hands that produce them behind data sets, algorithms and computer graphics, but the same biases are still there, only they’re harder to decipher…”

Can Twitter Predict Major Events Such As Mass Protests?

Curated on Posted on by Stefaan Verhulst

Emerging Technology From the arXiv : “The idea that social media sites such as Twitter can predict the future has a controversial history. In the last few years, various groups have claimed to be able to predict everything from the outcome of elections to the box office takings for new movies.
It’s fair to say that these claims have generated their fair share of criticism. So it’s interesting to see a new claim come to light.
Today, Nathan Kallus at the Massachusetts Institute of Technology in Cambridge says he has developed a way to predict crowd behaviour using statements made on Twitter. In particular, he has analysed the tweets associated with the 2013 coup d’état in Egypt and says that the civil unrest associated with this event was clearly predictable days in advance.
It’s not hard to imagine how the future behaviour of crowds might be embedded in the Twitter stream. People often signal their intent to meet in advance and even coordinate their behaviour using social media. So this social media activity is a leading indicator of future crowd behaviour.
That makes it seem clear that predicting future crowd behaviour is simply a matter of picking this leading indicator out of the noise.
Kallus says this is possible by mining tweets for any mention of future events and then analysing trends associated with them. “The gathering of crowds into a single action can often be seen through trends appearing in this data far in advance,” he says.
It turns out that exactly this kind of analysis is available from a company called Recorded Future based in Cambridge, which scans 300,000 different web sources in seven different languages from all over the world. It then extracts mentions of future events for later analysis….
The bigger question is whether it’s possible to pick out this evidence in advance. In other words, is possible to make predictions before the events actually occur?
That’s not so clear but there are good reasons to be cautious. First of all, while it’s possible to correlate Twitter activity to real protests, it’s also necessary to rule out false positives. There may be significant Twitter trends that do not lead to significant protests in the streets. Kallus does not adequately address the question of how to tell these things apart.
Then there is the question of whether tweets are trustworthy. It’s not hard to imagine that when it comes to issues of great national consequence, propaganda, rumor and irony may play a significant role. So how to deal with this?
There is also the question of demographics and whether tweets truly represent the intentions and activity of the population as a whole. People who tweet are overwhelmingly likely to be young but there is another silent majority that plays hugely important role. So can the Twitter firehose really represent the intentions of this part of the population too?
The final challenge is in the nature of prediction. If the Twitter feed is predictive, then what’s needed is evidence that it can be used to make real predictions about the future and not just historical predictions about the past.
We’ve looked at some of these problems with the predictive power of social media before and the challenge is clear: if there is a claim to be able to predict the future, then this claim must be accompanied by convincing evidence of an actual prediction about an event before it happens.
Until then, it would surely be wise to be circumspect about the predictive powers of Twitter and other forms of social media.
Ref: arxiv.org/abs/1402.2308: Predicting Crowd Behavior with Big Public Data”

Innovating for the Global South: New book offers practical insights

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Press Release: “Despite the vast wealth generated in the last half century, in today’s world inequality is worsening and poverty is becoming increasingly chronic. Hundreds of millions of people continue to live on less than $2 per day and lack basic human necessities such as nutritious food, shelter, clean water, primary health care, and education.
Innovating for the Global South: Towards an Inclusive Innovation Agenda, the latest book from Rotman-UTP Publishing and the first volume in the Munk Series on Global Affairs, offers fresh solutions for reducing poverty in the developing world. Highlighting the multidisciplinary expertise of the University of Toronto’s Global Innovation Group, leading experts from the fields of engineering, public health, medicine, management, and public policy examine the causes and consequences of endemic poverty and the challenges of mitigating its effects from the perspective of the world’s poorest of the poor.
Can we imagine ways to generate solar energy to run essential medical equipment in the countryside? Can we adapt information and communication technologies to provide up-to-the-minute agricultural market prices for remote farming villages? How do we create more inclusive innovation processes to hear the voices of those living in urban slums? Is it possible to reinvent a low-cost toilet that operates beyond the water and electricity grids?
Motivated by the imperatives of developing, delivering, and harnessing innovation in the developing world, Innovating for the Global South is essential reading for managers, practitioners, and scholars of development, business, and policy.
“As we see it, Innovating for the Global South is fundamentally about innovating scalable solutions that mitigate the effects of poverty and underdevelopment in the Global South. It is not about inventing some new gizmo for some untapped market in the developing world,” say Profs. Dilip Soman and Joseph Wong of the UofT, who are two of the editors of the volume.
The book is edited and also features contributions by three leading UofT thinkers who are tackling innovation in the global south from three different academic perspectives.

  • Dilip Soman is Corus Chair in Communication Strategy and a professor of Marketing at the Rotman School of Management.
  • Janice Gross Stein is the Belzberg Professor of Conflict Management in the Department of Political Science and Director of the Munk School of Global Affairs.
  • Joseph Wong is Ralph and Roz Halbert Professor of Innovation at the Munk School of Global Affairs and Canada Research Chair in Democratization, Health, and Development in the Department of Political Science.

The chapters in the book address the process of innovation from a number of vantage points.
Introduction: Rethinking Innovation – Joseph Wong and Dilip Soman
Chapter 1: Poverty, Invisibility, and Innovation – Joseph Wong
Chapter 2: Behaviourally Informed Innovation – Dilip Soman
Chapter 3: Appropriate Technologies for the Global South – Yu-Ling Cheng (University of Toronto, Chemical Engineering and Applied Chemistry) and Beverly Bradley (University of Toronto, Centre for Global Engineering)
Chapter 4: Globalization of Biopharmaceutical Innovation: Implications for Poor-Market Diseases – Rahim Rezaie (University of Toronto, Munk School of Global Affairs, Research Fellow)
Chapter 5: Embedded Innovation in Health – Anita M. McGahan (University of Toronto, Rotman School of Management, Associate Dean of Research), Rahim Rezaie and Donald C. Cole (University of Toronto, Dalla Lana School of Public Health)
Chapter 6: Scaling Up: The Case of Nutritional Interventions in the Global South – Ashley Aimone Phillips (Registered Dietitian), Nandita Perumal (University of Toronto, Doctoral Fellow, Epidemiology), Carmen Ho (University of Toronto, Doctoral Fellow, Political Science), and Stanley Zlotkin (University of Toronto and the Hospital for Sick Children,Paediatrics, Public Health Sciences and Nutritional Sciences)
Chapter 7: New Models for Financing Innovative Technologies and Entrepreneurial Organizations in the Global South – Murray R. Metcalfe (University of Toronto, Centre for Global Engineering, Globalization)
Chapter 8: Innovation and Foreign Policy – Janice Gross Stein
Conclusion: Inclusive Innovation – Will Mitchell (University of Toronto, Rotman School of Management, Strategic Management), Anita M. McGahan”

Unbundling the nation state

Curated on Posted on by Stefaan Verhulst

The Economist on Government-to-government trade: “NIGERIAN pineapple for breakfast, Peruvian quinoa for lunch and Japanese sushi for dinner. Two centuries ago, when David Ricardo advocated specialisation and free trade, the notion that international exchange in goods and services could make such a cosmopolitan diet commonplace would have seemed fanciful.
Today another scenario may appear equally unlikely: a Norwegian government agency managing Algeria’s sovereign-wealth fund; German police overseeing security in the streets of Mumbai; and Dubai playing the role of the courthouse of the Middle East. Yet such outlandish possibilities are more than likely if a new development fulfils its promise. Ever more governments are trading with each other, from advising lawmakers to managing entire services. They are following businesses, which have long outsourced much of what they do. Is this the dawn of the government-to-government era?
Such “G2G” trade is not new, though the name may be. After the Ottoman empire defaulted on its debt in 1875 foreign lenders set up an “Ottoman Public Debt Administration”, its governing council packed with European government officials. At its peak it had 9,000 employees, more than the empire’s finance ministry. And the legacy of enforced G2G trade—colonialism, as it was known—is still visible even today. Britain’s Privy Council is the highest court of appeal for many Commonwealth countries. France provides a monetary-policy service to several west African nations by managing their currency, the CFA franc.
One reason G2G trade is growing is that it is a natural extension of the trend for governments to pinch policies from each other. “Policymaking now routinely occurs in comparative terms,” says Jamie Peck of the University of British Columbia, who refers to G2G advice as “fast policy”. Since the late 1990s Mexico’s pioneering policy to make cash benefits for poor families conditional on things like getting children vaccinated and sending them to school has been copied by almost 50 other countries….Budget cuts can provide another impetus for G2G trade. The Dutch army recently sold its Leopard II tanks and now sends tank crews to train with German forces. That way it will be able to reform its tank squadrons quickly if they are needed. Britain, with a ten-year gap between scrapping old aircraft-carriers and buying new ones, has sent pilots to train with the American marines on the F-35B, which will fly from both American and British carriers.
…
No one knows the size of the G2G market. Governments rarely publicise deals, not least because they fear looking weak. And there are formidable barriers to trade. The biggest is the “Westphalian” view of sovereignty, says Stephen Krasner of Stanford University: that states should run their own affairs without foreign interference. In 2004 Papua New Guinea’s parliament passed a RAMSI-like delegation agreement, but local elites opposed it and courts eventually declared it unconstitutional. Honduras attempted to create independent “charter cities”, a concept developed by Paul Romer of New York University (NYU), whose citizens would have had the right of appeal to the supreme court of Mauritius. But in 2012 this scheme, too, was deemed unconstitutional.
Critics fret about accountability and democratic legitimacy. The 2005 Paris Declaration on Aid Effectiveness, endorsed by governments and aid agencies, made much of the need for developing countries to design their own development strategies. And providers open themselves to reputational risk. British police, for instance, have trained Bahraini ones. A heavy-handed crackdown by local forces during the Arab spring reflected badly on their foreign teachers…
When San Francisco decided to install wireless control systems for its streetlights, it posted a “call for solutions” on Citymart, an online marketplace for municipal projects. In 2012 it found a Swiss firm, Paradox Engineering, which had built such systems for local cities. But though members often share ideas, says Sascha Haselmayer, Citymart’s founder, most still decide to implement their chosen policies themselves.
Weak government services are the main reason poor countries fail to catch up with rich ones, says Mr Romer. One response is for people in poorly run places to move to well governed ones. Better would be to bring efficient government services to them. In a recent paper with Brandon Fuller, also of NYU, Mr Romer argues that either response would bring more benefits than further lowering the barriers to trade in privately provided goods and services. Firms have long outsourced activities, even core ones, to others that do them better. It is time governments followed suit.”

Civic Works Project translates data into community tools

Curated on Posted on by Stefaan Verhulst

The blog of the John S. and James L. Knight Foundation:”The Civic Works Project is a two-year effort to create apps and other tools to help increase the utility of local government data to benefit community organizations and the broader public. w
This project looks systemically at public and private information that can be used to engage residents, solve community problems and increase government accountability. We believe that there is a new frontier where information can be used to improve public services and community building efforts that benefit local residents.
Through the Civic Works Project, we’re seeking to improve access to information and identify solutions to problems facing diverse communities. Uncovering the value of data—and the stories behind it—can enhance the provision of public services through the smart application of technology.
Here’s some of what we’ve accomplished.
Partnership with WBEZ Public Data Blog
The WBEZ Public Data Blog is dedicated to examining and promoting civic data in Chicago, Cook County and Illinois. WBEZ is partnering with the Smart Chicago Collaborative to provide news and analysis on open government by producing content items that explain and tell stories hidden in public data. The project seeks to increase the utility, understanding, awareness and availability of local civic data. It comprises blog postings on the hidden uses of data and stories from the data, while including diverse voices and discussions on how innovations can improve civic life. It also features interviews with community organizations, businesses, government leaders and residents on challenges that could be solved through more effective use of public data.
Crime and Punishment in Chicago
The Crime and Punishment in Chicago project will provide an index of data sources regarding the criminal justice system in Chicago. This site will aggregate sources of data, how this data is generated, how to get it and what data is unavailable.
Illinois OpenTech Challenge
The Illinois Open Technology Challenge aims to bring governments, developers and communities together to create digital tools that use public data to serve today’s civic needs and promote economic development. Smart Chicago and our partners worked with government officials to publish 138 new datasets (34 in Champaign, 15 in Rockford, 12 in Belleville, and 77 from the 42 municipalities in the South Suburban Mayors and Managers Association) on the State of Illinois data portal. Smart Chicago has worked with developers in meet-ups all over the state—in six locations in four cities with 149 people. The project has also allowed Smart Chicago to conduct outreach in each of our communities to reach regular residents with needs that can be addressed through data and technology.
LocalData + SWOP
The LocalData + SWOP project is part of our effort to help bridge technology gaps in high-capacity organizations. This effort helps the Southwest Organizing Project collect information about vacant and abandoned housing using the LocalData tool.
Affordable Care Act Outreach App
With the ongoing implementation of the Affordable Care Act, community organizations such as LISC-Chicago have been hard at work providing navigators to help residents register through the healthcare.gov site.
Currently, LISC-Chicago organizers are in neighborhoods contacting residents and encouraging them to go to their closest Center for Working Families. Using a combination of software, such as Wufoo and Twilio, Smart Chicago is helping LISC with its outreach by building a tool that enables organizers to send text reminders to sign up for health insurance to residents.
Texting Tools: Twilio and Textizen
Smart Chicago is expanding the Affordable Care Act outreach project to engage residents in other ways using SMS messaging.
Smart Chicago is also a local provider for Textizen,  an SMS-based survey tool that civic organizations can use to obtain resident feedback. Organizations can create a survey campaign and then place the survey options on posters, postcards or screens during live events. They can then receive real-time feedback as people text in their answers.
WikiChicago
WikiChicago will be a hyper-local Wikipedia-like website that anyone can edit. For this project, Smart Chicago is partnering with the Chicago Public Library to feature local authors and books about Chicago, and to publish more information about Chicago’s rich history.”

The Rise of the Reluctant Innovator

Curated on Posted on by Stefaan Verhulst

New book by Ken Banks: “Despite the tens of billions spent each year in international aid, some of the most promising and exciting social innovations and businesses have come about by chance. Many of the people behind them didn’t consciously set out to solve anything, but they did. Welcome to the world of the ‘reluctant innovator’…

This book provides a welcome challenge to conventional wisdom in social entrepreneurship. It highlights the personal stories of ten social innovators from around the world. Ten social innovators – ordinary people – who randomly stumbled across problems, injustices and wrongs and, armed with little more than determination and belief, decided not to turn their backs but to dedicate their lives to solving them. Here are their stories….

Watching yet another Spanish movie in his friend’s apartment to avoid writing up his doctoral dissertation, Brij Kothari makes a throwaway comment about subtitles, which plants the seed of an idea and spawns a literacy initiative that has had, in Bill Clinton’s words, “a staggering impact on people’s lives”.
Worried about the political turmoil in Kenya, and concerned at the lack of information that is forthcoming from his adoptive country, Erik Hersman mobilises his own five-strong army to conceive, create and launch a web-based facility that revolutionises how breaking news is disseminated worldwide.
Parachuted into the middle of sub-Saharan Africa with a brief to collect public health data, and confronted with a laborious, environmentally wasteful paper-based system, paediatrician Joel Selanikio finds the perfect outlet for the skills he acquired as a Wall Street computer consultant.
Intending to ground himself in the realities of global health during his internship in rural Malawi, Josh Nesbit discovers that it is hard to sit on the sidelines and soon finds himself proposing a solution to overcome the difficulty of connecting patients, community health workers and hospitals.
After watching local doctors and midwives struggle to treat critically ill pregnant women in near-total darkness on a Nigerian maternity ward, where an untimely power cut can mean the difference between life and death, obstetrician Laura Stachel delivers a solar-based solution that enhances survival prospects.
Observing how well the autistic son of a close friend responds to the therapeutic effects of a Chinese massage technique that she has advocated using, Louisa Silva is convinced that the treatment has the potential to benefit thousands of others, but she needs to prove it.
Haunted by the memory of being separated from her older sister during a childhood spent in foster care, and horrified that other siblings are continuing to suffer the same fate, Lynn Price resolves to devise a way to bring such people back together.
An unexpected conversation over dinner leads Priti Radhakrishnan to build an innovative new organisation with a mission to fight for the rights of people denied access to life saving medicines.
Until a visit to the dermatologist turns her world upside down, Sharon Terry has never heard of pseudanthoma elasticum (PXE), but when she discovers that research into the disease afflicting her children is hidebound by scientific protocol, she sets about changing the system with characteristic zeal.
Encounters and conversations with leftover people occupying leftover spaces and using leftover materials, at home and abroad, led architecture professor Wes Janz to view them as urban pioneers, not victims, and teach him a valuable lesson: think small and listen to those at the sharp end.
See http://www.reluctantinnovation.com/”

How a New Science of Cities Is Emerging from Mobile Phone Data Analysis

Curated on Posted on by Stefaan Verhulst

MIT Technology Review: “Mobile phones have generated enormous insight into the human condition thanks largely to the study of the data they produce. Mobile phone companies record the time of each call, the caller and receiver ids, as well as the locations of the cell towers involved, among other things.
The combined data from millions of people produces some fascinating new insights in the nature of our society. Anthropologists have crunched it to reveal human reproductive strategies, a universal law of commuting and even the distribution of wealth in Africa.
Today, computer scientists have gone one step further by using mobile phone data to map the structure of cities and how people use them throughout the day. “These results point towards the possibility of a new, quantitative classification of cities using high resolution spatio-temporal data,” say Thomas Louail at the Institut de Physique Théorique in Paris and a few pals.
They say their work is part of a new science of cities that aims to objectively measure and understand the nature of large population centers.
These guys begin with a database of mobile phone calls made by people in the 31 Spanish cities that have populations larger than 200,000. The data consists of the number of unique individuals using a given cell tower (whether making a call or not) for each hour of the day over almost two months….The results reveal some fascinating patterns in city structure. For a start, every city undergoes a kind of respiration in which people converge into the center and then withdraw on a daily basis, almost like breathing. And this happens in all cities. This “suggests the existence of a single ‘urban rhythm’ common to all cities,” say Louail and co.
During the week, the number of phone users peaks at about midday and then again at about 6 p.m. During the weekend the numbers peak a little later: at 1 p.m. and 8 p.m. Interestingly, the second peak starts about an hour later in western cities, such as Sevilla and Cordoba.
The data also reveals that small cities tend to have a single center that becomes busy during the day, such as the cities of Salamanca and Vitoria.
But it also shows that the number of hotspots increases with city size; so-called polycentric cities include Spain’s largest, such as Madrid, Barcelona, and Bilboa.
That could turn out to be useful for automatically classifying cities.
There is a growing interest in the nature of cities, the way they evolve and how their residents use them. The goal of this new science is to make better use of these spaces that more than 50 percent of the planet inhabit. Louail and co show that mobile phone data clearly has an important role to play in this endeavor to better understanding these complex giants.
Ref: arxiv.org/abs/1401.4540 : From Mobile Phone Data To The Spatial Structure Of Cities”

Mapping the ‘Space of Flows’

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Paper by Reades J. and Smith D. A. in Regional Studies on the Geography of Global Business Telecommunications and Employment Specialization in the London Mega-City-Region: “Telecommunications has radically reshaped the way that firms organize industrial activity. And yet, because much of this technology – and the interactions that it enables – is invisible, the corporate ‘space of flows’ remains poorly mapped. This article combines detailed employment and telecoms usage data for the South-east of England to build a sector-by-sector profile of globalization at the mega-city-region scale. The intersection of these two datasets allows a new empirical perspective on industrial geography and regional structure to be developed.”

Entrepreneurs Shape Free Data Into Money

Curated on Posted on by Stefaan Verhulst
Angus Loten in the Wall Street Journal: “More cities are putting information on everything from street-cleaning schedules to police-response times and restaurant inspection reports in the public domain, in the hope that people will find a way to make money off the data.
Supporters of such programs often see them as a local economic stimulus plan, allowing software developers and entrepreneurs in cities ranging from San Francisco to South Bend, Ind., to New York, to build new businesses based on the information they get from government websites.
When Los Angeles Mayor Eric Garcetti issued an executive directive last month to launch the city’s open-data program, he cited entrepreneurs and businesses as important beneficiaries. Open-data promotes innovation and “gives companies, individuals, and nonprofit organizations the opportunity to leverage one of government’s greatest assets: public information,” according to the Dec. 18 directive.
A poster child for the movement might be 34-year-old Matt Ehrlichman of Seattle, who last year built an online business in part using Seattle work permits, professional licenses and other home-construction information gathered up by the city’s Department of Planning and Development.
While his website is free, his business, called Porch.com, has more than 80 employees and charges a $35 monthly fee to industry professionals who want to boost the visibility of their projects on the site.
The site gathers raw public data—such as addresses for homes under renovation, what they are doing, who is doing the work and how much they are charging—and combines it with photos and other information from industry professionals and homeowners. It then creates a searchable database for users to compare ideas and costs for projects near their own neighborhood.
…Ian Kalin, director of open-data services at Socrata, a Seattle-based software firm that makes the back-end applications for many of these government open-data sites, says he’s worked with hundreds of companies that were formed around open data.
Among them is Climate Corp., a San Francisco-based firm that collects weather and yield-forecasting data to help farmers decide when and where to plant crops. Launched in 2006, the firm was acquired in October by Monsanto Co. MON -2.90% , the seed-company giant, for $930 million.
Overall, the rate of new business formation declined nationally between 2006 and 2010. But according to the latest data from the Ewing Marion Kauffman Foundation, an entrepreneurship advocacy group in Kansas City, Mo., the rate of new business formation in Seattle in 2011 rose 9.41% in 2011, compared with the national average of 3.9%.
Other cities where new business formation was ahead of the national average include Chicago, Austin, Texas, Baltimore, and South Bend, Ind.—all cities that also have open-data programs. Still, how effective the ventures are in creating jobs is difficult to gauge.
One wrinkle: privacy concerns about the potential for information—such as property tax and foreclosure data—to be misused.
Some privacy advocates fear that government data that include names, addresses and other sensitive information could be used by fraudsters to target victims.”

Building Creative Commons: The Five Pillars Of Open Source Finance

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Brett Scott: “This is an article about Open Source Finance. It’s an idea I first sketched out at a talk I gave at the Open Data Institute in London. By ‘Open Source Finance’, I don’t just mean open source software programmes. Rather, I’m referring to something much deeper and broader. It’s a way of framing an overall change we might want to see in the financial system….

You can thus take on five conceptually separate, but mutualistic roles: Producer, consumer, validator, community member, or (competitive or complementary) breakaway. And these same five elements can underpin a future system of Open Source Finance. I’m framing this as an overall change we might want to see in the financial system, but perhaps we are already seeing it happening. So let’s look briefly at each pillar in turn.
Pillar 1: Access to the means of financial production
Very few of us perceive ourselves as offering financial services when we deposit our money in banks. Mostly we perceive ourselves as passive recipients of services. Put another way, we frequently don’t imagine we have the capability to produce financial services, even though the entire financial system is foundationally constructed from the actions of small-scale players depositing money into banks and funds, buying the products of companies that receive loans, and culturally validating the money system that the banks uphold. Let’s look though, at a few examples of prototypes that are breaking this down:

  1. Peer-to-peer finance models: If you decide to lend money to your friend, you directly perceive yourself as offering them a service. P2P finance platforms extend that concept far beyond your circle of close contacts, so that you can directly offer a financial service to someone who needs it. In essence, such platforms offer you access to an active, direct role in producing financial services, rather than an indirect, passive one.
  2. There are many interesting examples of actual open source financial software aimed at helping to fulfil the overall mission of an open source financial system. Check out Mifos and Cyclos, and Hamlets (developed by Community Forge’s Matthew Slater and others), all of which are designed to help people set up their own financial institutions
  3. Alternative currencies: There’s a reason why the broader public are suddenly interested in understanding Bitcoin. It’s a currency that people have produced themselves. As a member of the Bitcoin community, I am much more aware of my role in upholding – or producing – the system, than I am when using normal money, which I had no conscious role in producing. The scope toinvent your own currency goes far beyond crypto-currencies though: local currencies, time-banks, and mutual credit systems are emerging all over
  4. The Open Bank Project is trying to open up banks to third party apps that would allow a depositor to have much greater customisability of their bank account. It’s not aimed at bypassing banks in the way that P2P is, but it’s seeking to create an environment where an ecosystem of alternative systems can plug into the underlying infrastructure provided by banks

Pillar 2: Widespread distribution
Financial intermediaries like banks and funds serve as powerful gatekeepers to access to financing. To some extent this is a valid role – much like a publisher or music label will attempt to only publish books or music that they believe are high quality enough – but on the other hand, this leads to excessive power vested in the intermediaries, and systematic bias in what gets to survive. When combined with a lack of democratic accountability on the part of the intermediaries, you can have whole societies held hostage to the (arbitrary) whims, prejudices and interests of such intermediaries. Expanding access to financial services is thus a big front in the battle for financial democratisation. In addition to more traditional means to buildingfinancial inclusion – such as credit unions and microfinance – here are two areas to look at:

  • Crowdfunding: In the dominant financial system, you have to suck up to a single set of gatekeepers to get financing, hoping they won’t exclude you. Crowdfunding though, has expanded access to receiving financial services to a whole host of people who previously wouldn’t have access, such as artists, small-scale filmmakers, activists, and entrepreneurs with no track record. Crowdfunding can serve as a micro redistribution system in society, offering people a direct way to transfer wealth to areas that traditional welfare systems might neglect
  • Mobile banking: This is a big area, with important implications for international development and ICT4D. Check out innovations like M-Pesain Kenya, a technology to use mobile phones as proto-bank accounts. This in itself doesn’t necessarily guarantee inclusion, but it expands potential access to the system to people that most banks ignore

Pillar 3: The ability to monitor
Do you know where the money in the big banks goes? No, of course not. They don’t publish it, under the guise of commercial secrecy and confidentiality. It’s like they want to have their cake and eat it: “We’ll act as intermediaries on your behalf, but don’t ever ask for any accountability”. And what about the money in your pension fund? Also very little accountability. The intermediary system is incredibly opaque, but attempts to make it more transparent are emerging. Here are some examples:

  • Triodos Bank and Charity Bank are examples of banks that publish exactly what projects they lend to. This gives you the ability to hold them to account in a way that no other bank will allow you to do
  • Corporations are vehicles for extracting value out of assets and then distributing that value via financial instruments to shareholders and creditors. Corporate structures though, including those used by banks themselves, have reached a level of complexity approaching pure obsfucation. There can be no democratic accountability when you can’t even see who owns what, and how the money flows. Groups likeOpenCorporates and Open Oil though, are offering new open data tools to shine a light on the shadowy world of tax havens, ownership structures and contracts
  • Embedded in peer-to-peer models is a new model of accountability too. When people are treated as mere account numbers with credit scores by banks, the people in return feel little accountability towards the banks. On the other hand, if an individual has directly placed trust in me, I feel much more compelled to respect that

Pillar 4: An ethos of non-prescriptive DIY collaboration
At the heart of open source movements is a deep DIY ethos. This is in part about the sheer joy of producing things, but also about asserting individual power over institutionalised arrangements and pre-established officialdom. Alongside this, and deeply tied to the DIY ethos, is the search to remove individual alienation: You are not a cog in a wheel, producing stuff you don’t have a stake in, in order to consume stuff that you don’t know the origins of. Unalienated labour includes the right to produce where you feel most capable or excited.
This ethos of individual responsibility and creativity stands in contrast to the traditional passive frame of finance that is frequently found on both the Right and Left of the political spectrum. Indeed, the debates around ‘socially useful finance’ are seldom about reducing the alienation of people from their financial lives. They’re mostly about turning the existing financial sector into a slightly more benign dictatorship. The essence of DIY though, is to band together, not via the enforced hierarchy of the corporation or bureaucracy, but as part of a likeminded community of individuals creatively offering services to each other. So let’s take a look at a few examples of this

  1. BrewDog’s ‘Equity for Punks‘ share offering is probably only going to attract beer-lovers, but that’s the point – you get together as a group who has a mutual appreciation for a project, and you finance it, and then when you’re drinking the beer you’ll know you helped make it happen in a small way
  2. Community shares offer local groups the ability to finance projects that are meaningful to them in a local area. Here’s one for a solar co-operative, a pub, and a ferry boat service in Bristol
  3. We’ve already discussed how crowdfunding platforms open access to finance to people excluded from it, but they do this by offering would-be crowdfunders the chance to support things that excite them. I don’t have much cash, so I’m not in a position to actively finance people, but in my Indiegogo profile you can see I make an effort helping to publicise campaigns that I want to receive financing

Pillar 5: The right to fork
The right to dissent is a crucial component of a democratic society. But for dissent to be effective, it has to be informed and constructive, rather than reactive and regressive. There is much dissent towards the current financial system, but while people are free to voice their displeasure, they find it very difficult to actually act on their displeasure. We may loathe the smug banking oligopoly, but we’re frequently compelled to use them.
Furthermore, much dissent doesn’t have a clear vision of what alternative is sought. This is partially due to the fact that access to financial ‘source code’ is so limited. It’s hard to articulate ideas about what’s wrong when one cannot articulate how the current system operates. Most financial knowledge is held in proprietary formulations and obscure jargon-laden language within the financial sector, and this needs to change. It’s for this reason that I’m building the London School of Financial Activism, so ordinary people can explore the layers of financial code, from the deepest layer – the money itself – and then on to the institutions, instruments and networks that move it around….”