Data: The Lever to Promote Innovation in the EU

Curated on Posted on by Stefaan Verhulst

Blog Post by Juan Murillo Arias: “…But in order for data to truly become a lever that foments innovation in benefit of society as a whole, we must understand and address the following factors:

1. Disconnected, disperse sources. As users of digital services (transportation, finance, telecommunications, news or entertainment) we leave a different digital footprint for each service that we use. These footprints, which are different facets of the same polyhedron, can even be contradictory on occasion. For this reason, they must be seen as complementary. Analysts should be aware that they must cross data sources from different origins in order to create a reliable picture of our preferences, otherwise we will be basing decisions on partial or biased information. How many times do we receive advertising for items we have already purchased, or tourist destinations where we have already been? And this is just one example of digital marketing. When scoring financial solvency, or monitoring health, the more complete the digital picture is of the person, the more accurate the diagnosis will be.

Furthermore, from the user’s standpoint, proper management of their entire, disperse digital footprint is a challenge. Perhaps centralized consent would be very beneficial. In the financial world, the PSD2 regulations have already forced banks to open this information to other banks if customers so desire. Fostering competition and facilitating portability is the purpose, but this opening up has also enabled the development of new services of information aggregation that are very useful to financial services users. It would be ideal if this step of breaking down barriers and moving toward a more transparent market took place simultaneously in all sectors in order to avoid possible distortions to competition and by extension, consumer harm. Therefore, customer consent would open the door to building a more accurate picture of our preferences.

2. The public and private sectors’ asymmetric capacity to gather data.This is related to citizens using public services less frequently than private services in the new digital channels. However, governments could benefit from the information possessed by private companies. These anonymous, aggregated data can help to ensure a more dynamic public management. Even personal data could open the door to customized education or healthcare on an individual level. In order to analyze all of this, the European Commissionhas created a working group including 23 experts. The purpose is to come up with a series of recommendations regarding the best legal, technical and economic framework to encourage this information transfer across sectors.

3. The lack of incentives for companies and citizens to encourage the reuse of their data.The reality today is that most companies solely use the sources internally. Only a few have decided to explore data sharing through different models (for academic research or for the development of commercial services). As a result of this and other factors, the public sector largely continues using the survey method to gather information instead of reading the digital footprint citizens produce. Multiple studies have demonstrated that this digital footprint would be useful to describe socioeconomic dynamics and monitor the evolution of official statistical indicators. However, these studies have rarely gone on to become pilot projects due to the lack of incentives for a private company to open up to the public sector, or to society in general, making this new activity sustainable.

4. Limited commitment to the diversification of services.Another barrier is the fact that information based product development is somewhat removed from the type of services that the main data generators (telecommunications, banks, commerce, electricity, transportation, etc.) traditionally provide. Therefore, these data based initiatives are not part of their main business and are more closely tied to companies’ innovation areas where exploratory proofs of concept are often not consolidated as a new line of business.

5. Bidirectionality. Data should also flow from the public sector to the rest of society. The first regulatory framework was created for this purpose. Although it is still very recent (the PSI Directive on the re-use of public sector data was passed in 2013), it is currently being revised, in attempt to foster the consolidation of an open data ecosystem that emanates from the public sector as well. On the one hand it would enable greater transparency, and on the other, the development of solutions to improve multiple fields in which public actors are key, such as the environment, transportation and mobility, health, education, justice and the planning and execution of public works. Special emphasis will be placed on high value data sets, such as statistical or geospatial data — data with tremendous potential to accelerate the emergence of a wide variety of information based data products and services that add value.The Commission will begin working with the Member States to identify these data sets.

In its report, Creating Data through Open Data, the European open data portal estimates that government agencies making their data accessible will inject an extra €65 billion in the EU economy this year.

6. The commitment to analytical training and financial incentives for innovation.They are the key factors that have given rise to the digital unicorns that have emerged, more so in the U.S. and China than in Europe….(More)”

The Technology Trap: Capital, Labor, and Power in the Age of Automation

Curated on Posted on by Stefaan Verhulst

Book by Carl Benedikt Frey: “From the Industrial Revolution to the age of artificial intelligence, The Technology Trap takes a sweeping look at the history of technological progress and how it has radically shifted the distribution of economic and political power among society’s members. As Carl Benedikt Frey shows, the Industrial Revolution created unprecedented wealth and prosperity over the long run, but the immediate consequences of mechanization were devastating for large swaths of the population. Middle-income jobs withered, wages stagnated, the labor share of income fell, profits surged, and economic inequality skyrocketed. These trends, Frey documents, broadly mirror those in our current age of automation, which began with the Computer Revolution.

Just as the Industrial Revolution eventually brought about extraordinary benefits for society, artificial intelligence systems have the potential to do the same. But Frey argues that this depends on how the short term is managed. In the nineteenth century, workers violently expressed their concerns over machines taking their jobs. The Luddite uprisings joined a long wave of machinery riots that swept across Europe and China. Today’s despairing middle class has not resorted to physical force, but their frustration has led to rising populism and the increasing fragmentation of society. As middle-class jobs continue to come under pressure, there’s no assurance that positive attitudes to technology will persist.
The Industrial Revolution was a defining moment in history, but few grasped its enormous consequences at the time. The Technology Trap demonstrates that in the midst of another technological revolution, the lessons of the past can help us to more effectively face the present….(More)”.

China, India and the rise of the ‘civilisation state’

Curated on Posted on by Stefaan Verhulst

Gideon Rachman at the Financial Times: “The 19th-century popularised the idea of the “nation state”. The 21st could be the century of the “civilisation state”. A civilisation state is a country that claims to represent not just a historic territory or a particular language or ethnic-group, but a distinctive civilisation.

It is an idea that is gaining ground in states as diverse as China, India, Russia, Turkey and, even, the US. The notion of the civilisation state has distinctly illiberal implications. It implies that attempts to define universal human rights or common democratic standards are wrong-headed, since each civilisation needs political institutions that reflect its own unique culture. The idea of a civilisation state is also exclusive. Minority groups and migrants may never fit in because they are not part of the core civilisation.

One reason that the idea of the civilisation state is likely to gain wider currency is the rise of China. In speeches to foreign audiences, President Xi Jinping likes to stress the unique history and civilisation of China. This idea has been promoted by pro-government intellectuals, such as Zhang Weiwei of Fudan university. In an influential book, The China Wave: Rise of a Civilisational State, Mr Zhang argues that modern China has succeeded because it has turned its back on western political ideas — and instead pursued a model rooted in its own Confucian culture and exam-based meritocratic traditions. Mr Zhang was adapting an idea first elaborated by Martin Jacques, a western writer, in a bestselling book, When China Rules The World. “China’s history of being a nation state”, Mr Jacques argues, “dates back only 120-150 years: its civilisational history dates back thousands of years.” He believes that the distinct character of Chinese civilisation leads to social and political norms that are very different from those prevalent in the west, including “the idea that the state should be based on familial relations [and] a very different view of the relationship between the individual and society, with the latter regarded as much more important”. …

Civilisational views of the state are also gaining ground in Russia. Some of the ideologues around Vladimir Putin now embrace the idea that Russia represents a distinct Eurasian civilisation, which should never have sought to integrate with the west. In a recent article Vladislav Surkov, a close adviser to the Russian president, argued that his country’s “repeated fruitless efforts to become a part of western civilisation are finally over”. Instead, Russia should embrace its identity as “a civilisation that has absorbed both east and west” with a “hybrid mentality, intercontinental territory and bipolar history. It is charismatic, talented, beautiful and lonely. Just as a half-breed should be.” In a global system moulded by the west, it is unsurprising that some intellectuals in countries such as China, India or Russia should want to stress the distinctiveness of their own civilisations.

What is more surprising is that rightwing thinkers in the US are also retreating from the idea of “universal values” — in favour of emphasising the unique and allegedly endangered nature of western civilisation….(More)”.

Seeing and Being Seen

Curated on Posted on by Stefaan Verhulst

Russell C. Bogue in The Hedgehog Review: “On May 20, 2013, a pale, nervous American landed in Hong Kong and made his way to the Mira Hotel. Once there, he met with reporters from The Guardian and the Washington Post and turned over thousands of documents his high-level security clearance had enabled him to acquire while working as a contractor for the National Security Agency. Soon after this exchange, the world learned about PRISM, a top-secret NSA program that granted (court-ordered) direct access to Facebook, Apple, Google, and other US Internet giants, including users’ search histories, e-mails, file transfers, and live chats.1 Additionally, Verizon had been providing information to the NSA on an “ongoing, daily basis” about customers’ telephone calls, including location data and call duration (although not the content of conversations).2 Everyone, in short, was being monitored. Glenn Greenwald, one of the first journalists to meet with Edward Snowden, and one of his most vocal supporters, wrote later that “the NSA is collecting all forms of electronic communications between Americans…and thereby attempting by definition to destroy any remnants of privacy both in the US and globally.”3

According to a 2014 Pew Research Center poll, fully 91 percent of Americans believe they have lost control over their personal information.4 What is such a public to do? Anxious computer owners have taken to covering their devices’ built-in cameras with bits of tape.5Messaging services tout their end-to-end encryption.6 Researchers from Harvard Business School have started investigating the effectiveness of those creepy online ads that seem to know a little too much about your preferences.7

For some, this pushback has come far too late to be of any use. In a recent article in The Atlantic depressingly titled “Welcome to the Age of Privacy Nihilism,” Ian Bogost observes that we have already become unduly reliant on services that ask us to relinquish personal data in exchange for convenience. To reassert control over one’s privacy, one would have to abstain from credit card activity and use the Internet only sparingly. The worst part? We don’t get the simple pleasure of blaming this state of affairs on Big Government or the tech giants. Instead, our enemy is, as Bogost intones, “a hazy murk, a chilling, Lovecraftian murmur that can’t be seen, let alone touched, let alone vanquished.”8

The enemy may be a bit closer to home, however. While we fear being surveilled, recorded, and watched, especially when we are unaware, we also compulsively expose ourselves to others….(More)”.

Whose Rules? The Quest for Digital Standards

Curated on Posted on by Stefaan Verhulst

Stephanie Segal at CSIS: “Prime Minister Shinzo Abe of Japan made news at the World Economic Forum in Davos last month when he announced Japan’s aspiration to make the G20 summit in Osaka a launch pad for “world-wide data governance.” This is not the first time in recent memory that Japan has taken a leadership role on an issue of keen economic importance. Most notably, the Trans-Pacific Partnership (TPP) lives on as the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP), thanks in large part to Japan’s efforts to keep the trading bloc together after President Trump announced U.S. withdrawal from the TPP. But it’s in the area of data and digital governance that Japan’s efforts will perhaps be most consequential for future economic growth.

Data has famously been called “the new oil” in the global economy. A 2016 report by the McKinsey Global Institute estimated that global data flows contributed $2.8 trillion in value to the global economy back in 2014, while cross-border data flows and digital trade continue to be key drivers of global trade and economic growth. Japan’s focus on data and digital governance is therefore consistent with its recent efforts to support global growth, deepen global trade linkages, and advance regional and global standards.

Data governance refers to the rules directing the collection, processing, storage, and use of data. The proliferation of smart devices and the emergence of a data-driven Internet of Things portends an exponential growth in digital data. At the same time, recent reporting on overly aggressive commercial practices of personal data collection, as well as the separate topic of illegal data breaches, have elevated public awareness and interest in the laws and policies that govern the treatment of data, and personal data in particular. Finally, a growing appreciation of data’s central role in driving innovation and future technological and economic leadership is generating concern in many capitals that different data and digital governance standards and regimes will convey a competitive (dis)advantage to certain countries.

Bringing these various threads together—the inevitable explosion of digital data; the need to protect an individual’s right to privacy; and the appreciation that data has economic value and conveys economic advantage—is precisely why Japan’s initiative is both timely and likely to face significant challenges….(More)”.

Twentieth Century Town Halls: Architecture of Democracy

Curated on Posted on by Stefaan Verhulst

Book by Jon Stewart: “This is the first book to examine the development of the town hall during the twentieth century and the way in which these civic buildings have responded to the dramatic political, social and architectural changes which took place during the period. Following an overview of the history of the town hall as a building type, it examines the key themes, variations and lessons which emerged during the twentieth century. This is followed by 20 case studies from around the world which include plans, sections and full-colour illustrations. Each of the case studies examines the town hall’s procurement, the selection of its architect and the building design, and critically analyses its success and contribution to the type’s development. The case studies include:

Copenhagen Town Hall, Denmark, Martin Nyrop

Stockholm City Hall, Sweden, Ragnar Ostberg

Hilversum Town Hall, the Netherlands, Willem M. Dudok

Walthamstow Town Hall, Britain, Philip Dalton Hepworth

Oslo Town Hall, Norway, Arnstein Arneberg and Magnus Poulsson

Casa del Fascio, Como, Italy, Guiseppe Terragni

Aarhus Town Hall, Denmark, Arne Jacobsen with Eric Moller

Saynatsalo Town Hall, Finland, Alvar Aalto

Kurashiki City Hall, Japan, Kenzo Tange

Toronto City Hall, Canada, Viljo Revell

Boston City Hall, USA, Kallmann, McKinnell and Knowles

Dallas City Hall, USA, IM Pei

Mississauga City Hall, Canada, Ed Jones and Michael Kirkland

Borgoricco Town Hall, Italy, Aldo Rossi

Reykjavik City Hall, Iceland, Studio Granda

Valdelaguna Town Hall, Spain, Victor Lopez Cotelo and Carlos Puente Fernandez

The Hague City Hall, the Netherlands, Richard Meier

Iragna Town Hall, Switzerland, Raffaele Cavadini

Murcia City Hall, Spain, Jose Rafael Moneo

London City Hall, UK, Norman Foster…(More)”.

How Tech Utopia Fostered Tyranny

Curated on Posted on by Stefaan Verhulst

Jon Askonas at The New Atlantis: “The rumors spread like wildfire: Muslims were secretly lacing a Sri Lankan village’s food with sterilization drugs. Soon, a video circulated that appeared to show a Muslim shopkeeper admitting to drugging his customers — he had misunderstood the question that was angrily put to him. Then all hell broke loose. Over a several-day span, dozens of mosques and Muslim-owned shops and homes were burned down across multiple towns. In one home, a young journalist was trapped, and perished.

Mob violence is an old phenomenon, but the tools encouraging it, in this case, were not. As the New York Times reported in April, the rumors were spread via Facebook, whose newsfeed algorithm prioritized high-engagement content, especially videos. “Designed to maximize user time on site,” as the Times article describes, the newsfeed algorithm “promotes whatever wins the most attention. Posts that tap into negative, primal emotions like anger or fear, studies have found, produce the highest engagement, and so proliferate.” On Facebook in Sri Lanka, posts with incendiary rumors had among the highest engagement rates, and so were among the most highly promoted content on the platform. Similar cases of mob violence have taken place in India, Myanmar, Mexico, and elsewhere, with misinformation spread mainly through Facebook and the messaging tool WhatsApp.

Follow The New AtlantisThis is in spite of Facebook’s decision in January 2018 to tweak its algorithm, apparently to prevent the kind of manipulation we saw in the 2016 U.S. election, when posts and election ads originating from Russia reportedly showed up in newsfeeds of up to 126 million American Facebook users. The company explained that the changes to its algorithm will mean that newsfeeds will be “showing more posts from friends and family and updates that spark conversation,” and “less public content, including videos and other posts from publishers or businesses.” But these changes, which Facebook had tested out in countries like Sri Lanka in the previous year, may actually have exacerbated the problem — which is that incendiary content, when posted by friends and family, is guaranteed to “spark conversation” and therefore to be prioritized in newsfeeds. This is because “misinformation is almost always more interesting than the truth,” as Mathew Ingram provocatively put it in the Columbia Journalism Review.

How did we get here, from Facebook’s mission to “give people the power to build community and bring the world closer together”? Riot-inducing “fake news” and election meddling are obviously far from what its founders intended for the platform. Likewise, Google’s founders surely did not build their search engine with the intention of its being censored in China to suppress free speech, and yet, after years of refusing this demand from Chinese leadership, Google has recently relented rather than pull their search engine from China entirely. And YouTube’s creators surely did not intend their feature that promotes “trending” content to help clickbait conspiracy-theory videos go viral.

These outcomes — not merely unanticipated by the companies’ founders but outright opposed to their intentions — are not limited to social media. So far, Big Tech companies have presented issues of incitement, algorithmic radicalization, and “fake news” as merely bumps on the road of progress, glitches and bugs to be patched over. In fact, the problem goes deeper, to fundamental questions of human nature. Tools based on the premise that access to information will only enlighten us and social connectivity will only make us more humane have instead fanned conspiracy theories, information bubbles, and social fracture. A tech movement spurred by visions of libertarian empowerment and progressive uplift has instead fanned a global resurgence of populism and authoritarianism.

Despite the storm of criticism, Silicon Valley has still failed to recognize in these abuses a sharp rebuke of its sunny view of human nature. It remains naïvely blind to how its own aspirations for social engineering are on a spectrum with the tools’ “unintended” uses by authoritarian regimes and nefarious actors….(More)”.

Index: Trust in Institutions 2019

Curated on Posted on by Michelle Winowatan

By Michelle Winowatan, Andrew J. Zahuranec, Andrew Young, Stefaan Verhulst

The Living Library Index – inspired by the Harper’s Index – provides important statistics and highlights global trends in governance innovation. This installment focuses on trust in institutions.

Please share any additional, illustrative statistics on open data, or other issues at the nexus of technology and governance, with us at [email protected]

Global Trust in Public Institutions

Trust in Government

United States

  • Americans who say their democracy is working at least “somewhat well:” 58% – 2018
  • Number who believe sweeping changes to their government are needed: 61% – 2018
  • Percentage of Americans expressing faith in election system security: 45% – 2018
  • Percentage of Americans expressing an overarching trust in government: 40% – 2019
  • How Americans would rate the trustworthiness of Congress: 4.1 out of 10 – 2017
  • Number who have confidence elected officials act in the best interests of the public: 25% – 2018
  • Amount who trust the federal government to do what is right “just about always or most of the time”: 18% – 2017
  • Americans with trust and confidence in the federal government to handle domestic problems: 2 in 5 – 2018
    • International problems: 1 in 2 – 2018
  • US institution with highest amount of confidence to act in the best interests of the public: The Military (80%) – 2018
  • Most favorably viewed level of government: Local (67%) – 2018
  • Most favorably viewed federal agency: National Park Service (83% favorable) – 2018
  • Least favorable federal agency: Immigration and Customs Enforcement (47% unfavorable) – 2018

United Kingdom

  • Overall trust in government: 42% – 2019
    • Number who think the country is headed in the “wrong direction:” 7 in 10 – 2018
    • Those who have trust in politicians: 17% – 2018
    • Amount who feel unrepresented in politics: 61% – 2019
    • Amount who feel that their standard of living will get worse over the next year: Nearly 4 in 10 – 2019
  • Trust the national government handling of personal data:

European Union

Africa

Latin America

Other

Trust in Media

  • Percentage of people around the world who trust the media: 47% – 2019
    • In the United Kingdom: 37% – 2019
    • In the United States: 48% – 2019
    • In China: 76% – 2019
  • Rating of news trustworthiness in the United States: 4.5 out of 10 – 2017
  • Number of citizens who trust the press across the European Union: Almost 1 in 2 – 2019
  • France: 3.9 out of 10 – 2019
  • Germany: 4.8 out of 10 – 2019
  • Italy: 3.8 out of 10 – 2019
  • Slovenia: 3.9 out of 10 – 2019
  • Percentage of European Union citizens who trust the radio: 59% – 2017
    • Television: 51% – 2017
    • The internet: 34% – 2017
    • Online social networks: 20% – 2017
  • EU citizens who do not actively participate in political discussions on social networks because they don’t trust online social networks: 3 in 10 – 2018
  • Those who are confident that the average person in the United Kingdom can tell real news from ‘fake news’: 3 in 10 – 2018

Trust in Business

Sources

Artificial Intelligence and National Security

Curated on Posted on by Stefaan Verhulst

Report by Congressional Research Service: “Artificial intelligence (AI) is a rapidly growing field of technology with potentially significant implications for national security. As such, the U.S. Department of Defense (DOD) and other nations are developing AI applications for a range of military functions. AI research is underway in the fields of intelligence collection and analysis, logistics, cyber operations, information operations, command and control, and in a variety of semi-autonomous and autonomous vehicles.

Already, AI has been incorporated into military operations in Iraq and Syria. Congressional action has the potential to shape the technology’s development further, with budgetary and legislative decisions influencing the growth of military applications as well as the pace of their adoption.

AI technologies present unique challenges for military integration, particularly because the bulk of AI development is happening in the commercial sector. Although AI is not unique in this regard, the defense acquisition process may need to be adapted for acquiring emerging technologies like AI.

In addition, many commercial AI applications must undergo significant modification prior to being functional for the military. A number of cultural issues also challenge AI acquisition, as some commercial AI companies are averse to partnering with DOD due to ethical concerns, and even within the department, there can be resistance to incorporating AI technology into existing weapons systems and processes.

Potential international rivals in the AI market are creating pressure for the United States to compete for innovative military AI applications. China is a leading competitor in this regard, releasing a plan in 2017 to capture the global lead in AI development by 2030. Currently, China is primarily focused on using AI to make faster and more well-informed decisions, as well as on developing a variety of autonomous military vehicles. Russia is also active in military AI development, with a primary focus on robotics. Although AI has the potential to impart a number of advantages in the military context, it may also introduce distinct challenges.

AI technology could, for example, facilitate autonomous operations, lead to more informed military decisionmaking, and increase the speed and scale of military action. However, it may also be unpredictable or vulnerable to unique forms of manipulation. As a result of these factors, analysts hold a broad range of opinions on how influential AI will be in future combat operations.

While a small number of analysts believe that the technology will have minimal impact, most believe that AI will have at least an evolutionary—if not revolutionary—effect….(More)”.

The Think-Tank Dilemma

Curated on Posted on by Stefaan Verhulst

Blog by Yoichi Funabashi: “Without the high-quality research that independent think tanks provide, there can be no effective policymaking, nor even a credible basis for debating major issues. Insofar as funding challenges, foreign influence-peddling, and populist attacks on truth pose a threat to such institutions tanks, they threaten democracy itself….

The Brookings Institution in Washington, DC – perhaps the world’s top think tank – is under scrutiny for receiving six-figure donations from Chinese telecommunications giant Huawei, which many consider to be a security threat. And since the barbaric murder of Saudi journalist Jamal Khashoggi last October, many other Washington-based think tanks have come under pressure to stop accepting donations from Saudi Arabia.

These recent controversies have given rise to a narrative that Washington-based think tanks are facing a funding crisis. In fact, traditional think tanks are confronting three major challenges that have put them in a uniquely difficult situation. Not only are they facing increased competition from for-profit think tanks such as the McKinsey Global Institute and the Eurasia Group; they also must negotiate rising geopolitical tensions, especially between the United States and China.And complicating matters further, many citizens, goaded by populist harangues, have become dismissive of “experts” and the fact-based analyses that think tanks produce (or at least should produce).

With respect to the first challenge, Daniel Drezner of Tufts University argues in The Ideas Industry: How Pessimists, Partisans, and Plutocrats are Transforming the Marketplace of Ideas that for-profit think tanks have engaged in thought leadership by operating as platforms for provocative thinkers who push big ideas. Whereas many non-profit think tanks – as well as universities and non-governmental organizations – remain “old-fashioned” in their approach to data, their for-profit counterparts thrive by finding the one statistic that captures public attention in the digital age. Given their access to both public and proprietary information, for-profit think tanks are also able to maximize the potential of big data in ways that traditional think tanks cannot.

Moreover, with the space for balanced foreign-policy arguments narrowing, think tanks are at risk of becoming tools of geopolitical statecraft. This is especially true now that US-China relations are deteriorating and becoming more ideologically tinged.

Over time, foreign governments of all stripes have cleverly sought to influence policymaking not only in Washington, but also in London, Brussels, Berlin, and elsewhere, by becoming significant donors to think tanks. Governments realize that the well-connected think tanks that act as “power brokers” vis-à-vis the political establishment have been facing fundraising challenges since the 2008 financial crisis. In some cases, locally based think tanks have even been accused of becoming fronts for foreign authoritarian governments….(More)”.