International Data Flows and Privacy: The Conflict and its Resolution

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World Bank Policy Research Working Paper by Aaditya Mattoo and Joshua P Meltzer: “The free flow of data across borders underpins today’s globalized economy. But the flow of personal dataoutside the jurisdiction of national regulators also raises concerns about the protection of privacy. Addressing these legitimate concerns without undermining international integration is a challenge. This paper describes and assesses three types of responses to this challenge: unilateral development of national or regional regulation, such as the European Union’s Data Protection Directive and forthcoming General Data Protection Regulation; international negotiation of trade disciplines, most recently in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); and international cooperation involving regulators, most significantly in the EU-U.S. Privacy Shield Agreement.

The paper argues that unilateral restrictions on data flows are costly and can hurt exports, especially of data-processing and other data-based services; international trade rules that limit only the importers’ freedom to regulate cannot address the challenge posed by privacy; and regulatory cooperation that aims at harmonization and mutual recognition is not likely to succeed, given the desirable divergence in national privacy regulation. The way forward is to design trade rules (as the CPTPP seeks to do) that reflect the bargain central to successful international cooperation (as in the EU-US Privacy Shield): regulators in data destination countries would assume legal obligations to protect the privacy of foreign citizens in return for obligations on data source countries not to restrict the flow of data. Existing multilateral rules can help ensure that any such arrangements do not discriminate against and are open to participation by other countries….(More)”.

The promise and peril of military applications of artificial intelligence

Curated on Posted on by Stefaan Verhulst

Michael C. Horowitz at the Bulletin of the Atomic Scientists: “Artificial intelligence (AI) is having a moment in the national security space. While the public may still equate the notion of artificial intelligence in the military context with the humanoid robots of the Terminatorfranchise, there has been a significant growth in discussions about the national security consequences of artificial intelligence. These discussions span academia, business, and governments, from Oxford philosopher Nick Bostrom’s concern about the existential risk to humanity posed by artificial intelligence to Tesla founder Elon Musk’s concern that artificial intelligence could trigger World War III to Vladimir Putin’s statement that leadership in AI will be essential to global power in the 21st century.

What does this really mean, especially when you move beyond the rhetoric of revolutionary change and think about the real world consequences of potential applications of artificial intelligence to militaries? Artificial intelligence is not a weapon. Instead, artificial intelligence, from a military perspective, is an enabler, much like electricity and the combustion engine. Thus, the effect of artificial intelligence on military power and international conflict will depend on particular applications of AI for militaries and policymakers. What follows are key issues for thinking about the military consequences of artificial intelligence, including principles for evaluating what artificial intelligence “is” and how it compares to technological changes in the past, what militaries might use artificial intelligence for, potential limitations to the use of artificial intelligence, and then the impact of AI military applications for international politics.

The potential promise of AI—including its ability to improve the speed and accuracy of everything from logistics to battlefield planning and to help improve human decision-making—is driving militaries around the world to accelerate their research into and development of AI applications. For the US military, AI offers a new avenue to sustain its military superiority while potentially reducing costs and risk to US soldiers. For others, especially Russia and China, AI offers something potentially even more valuable—the ability to disrupt US military superiority. National competition in AI leadership is as much or more an issue of economic competition and leadership than anything else, but the potential military impact is also clear. There is significant uncertainty about the pace and trajectory of artificial intelligence research, which means it is always possible that the promise of AI will turn into more hype than reality. Moreover, safety and reliability concerns could limit the ways that militaries choose to employ AI…(More)”,

Israeli, French Politicians Endorse Blockchain for Governance Transparency

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Komfie Manolo at Cryptovest: “Blockchain is moving into the world’s political systems, with several influential political figures in Israel and France recently emerging as new believers in the technology. They are betting on blockchain for more transparent governance and have joined the decentralized platform developed by Coalichain.

Among the seven Israeli politicians to endorse the platform are former deputy minister and interior minister Eli Yishay, deputy defense minister Eli Ben-Dan, and HaBait HaYehudi leader Shulamit Mualem-Refaeli. The move for a more accountable democracy has also been supported by Frederic Lefebvre, the founder of French political party Agir.

Levi Samama, co-founder and CEO of Coalichain, said that support for the platform was “a positive indication that politicians are actively seeking ways to be transparent and direct in the way they communicate with the public. In order to impact existing governance mechanisms we need the support and engagement of politicians and citizens alike.”

Acceptance of blockchain is gaining traction in the world of politics.

During last month’s presidential election in Russia, blockchain was used by state-run public opinion research center VTSIOM to track exit polls.

In the US, budding political group Indie Party wants to redefine the country’s political environment by providing an alternative to the established two-party system with a political marketplace that uses blockchain and cryptocurrency….(More)”

Open data privacy and security policy issues and its influence on embracing the Internet of Things

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Radhika Garg in First Monday: “Information and communication technologies (ICT) are changing the way people interact with each other. Today, every physical device can have the capability to connect to the Internet (digital presence) to send and receive data. Internet connected cameras, home automation systems, connected cars are all examples of interconnected Internet of Things (IoT). IoT can bring benefits to users in terms of monitoring and intelligent capabilities, however, these devices collect, transmit, store, and have a potential to share vast amount of personal and individual data that encroach private spaces and can be vulnerable to security breaches. The ecosystem of IoT comprises not only of users, various sensors, and devices but also other stakeholders of IoT such as data collectors, processors, regulators, and policy-makers. Even though the number of commercially available IoT devices is on steep rise, the uptake of these devices has been slow, and abandonment rapid. This paper explains how stakeholders (including users) and technologies form an assemblage in which these stakeholders are cumulatively responsible for making IoT an essential element of day-to-day living and connectivity. To this end, this paper examines open issues in data privacy and security policies (from perspectives of the European Union and North America), and its effects on stakeholders in the ecosystem. This paper concludes by explaining how these open issues, if unresolved, can lead to another wave of digital division and discrimination in the use of IoT….(More)”.

If, When and How Blockchain Technologies Can Provide Civic Change

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By Stefaan G. Verhulst and Andrew Young

The hype surrounding the potential of blockchain technologies– the distributed ledger technology (DLT) undergirding cryptocurrencies like Bitcoin – to transform the way industries and sectors operate and exchange records is reaching a fever pitch.

Gartner Hype Cycle

Source: Top Trends in the Gartner Hype Cycle for Emerging Technologies, 2017

Governments and civil society have now also joined the quest and are actively exploring the potential of DLTs to create transformative social change. Experiments are underway to leverage blockchain technologies to address major societal challenges – from homelessness in New York City to the Rohyingya crisis in Myanmar to government corruption around the world. At the same time, a growing backlash to the newest ‘shiny object’ in the technology for good space is gaining ground.   

At this year’s The Impacts of Civic Technology Conference (TICTeC), organized by mySociety in Lisbon, the GovLab’s Stefaan Verhulst and Andrew Young joined the Engine Room’s Nicole Anand, the Natural Resource Governance Institute’s Anders Pedersen, and ITS-Rio’s Marco Konopacki to consider whether or not Blockchain can truly deliver on its promise for creating civic change.

For the GovLab’s contribution to the panel, we shared early findings from our Blockchange: Blockchain for Social Change initiative. Blockchange, funded by the Rockefeller Foundation, seeks to develop a deeper understanding of the promise and practice of DLTs tin addressing public problems – with a particular focus on the lack, the role and the establishment of trusted identities – through a set of detailed case-studies. Such insights may help us develop operational guidelines on when blockchain technology may be appropriate and what design principles should guide the future use of DLTs for good.

Our presentation covered four key areas (Full presentation here):

  1. The evolving package of attributes present in Blockchain technologies: on-going experimentation, development and investment has lead to the realization that there is no one blockchain technology. Rather there are several variations of attributes that provide for different technological scenarios. Some of these attributes remain foundational -– such as immutability, (guaranteed) integrity, and distributed resilience – while others have evolved as optional including disintermediation, transparency, and accessibility. By focusing on the attributes we can transcend the noise that is emerging from having too many well funded start-ups that seek to pitch their package of attributes as the solution;Attributes of DLT
  2. The three varieties of Blockchain for social change use cases: Most of the pilots and use cases where DLTs are being used to improve society and people’s lives can be categorized along three varieties of applications:
    • Track and Trace applications. For instance: 
      1. Versiart creates verifiable, digital certificates for art and collectibles which helps buyers ensure each piece’s provenance.
      2. Grassroots Cooperative along with Heifer USA created a blockchain-powered app that allows every package of chicken marketed and sold by Grassroots to be traced on the Ethereum blockchain.
      3. Everledger works with stakeholders across the diamond supply chain to track diamonds from mine to store.
      4. Ripe is working with Sweetgreen to use blockchain and IoT sensors to track crop growth, yielding higher-quality produce and providing better information for farmers, food distributors, restaurants, and consumers.    
    • Smart Contracting applications. For instance:
      1. In Indonesia, Carbon Conservation and Dappbase have created smart contracts that will distribute rewards to villages that can prove the successful reduction of incidences of forest fires.
      2. Alice has built Ethereum-based smart contracts for a donation project that supports 15 homeless people in London. The smart contracts ensure donations are released only when pre-determined project goals are met.
      3. Bext360 utilizes smart contracts to pay coffee farmers fairly and immediately based on a price determined through weighing and analyzing beans by the Bext360 machine at the source.  
    • Identity applications. For instance:
      1. The State of Illinois is working with Evernym to digitize birth certificates, thus giving individuals a digital identity from birth.
      2. BanQu creates an economic passport for previously unbanked populations by using blockchain to record economic and financial transactions, purchase goods, and prove their existence in global supply chains.
      3. In 2015, AID:Tech piloted a project working with Syrian refugees in Lebanon to distribute over 500 donor aid cards that were tied to non-forgeable identities.
      4. uPort provides digital identities for residents of Zug, Switzerland to use for governmental services.

Three Blockchange applications

  1. The promise of trusted Identity: the potential to establish a trusted identity turns out to be foundational for using blockchain technologies for social change. At the same time identity emerges from a process (involving, for instance, provisioning, authentication, administration, authorization and auditing) and it is key to assess at what stage of the ID lifecycle DLTs provide an advantage vis-a-vis other ID technologies; and how the maturity of the blockchain technology toward addressing the ID challenge. 

ID Lifecycle and DLT

  1. Finally, we seek to translate current findings into
    • Operational conditions that can enable the public and civic sector at-large to determine when “to blockchain” including:
      • The need for a clear problem definition (as opposed to certain situations where DLT solutions are in search of a problem);
      • The presence of information asymmetries and high transaction costs incentivize change. (“The Market of Lemons” problem);
      • The availability of (high quality) digital records;
      • The lack of availability of credible and alternative disclosure technologies;
      • Deficiency (or efficiency) of (trusted) intermediaries in the space.
    • Design principles that can increase the likelihood of societal benefit when using Blockchain for identity projects (see picture) .

Design Principles

In the coming months, we will continue to share our findings from the Blockchange project in a number of forms – including a series of case studies, additional presentations and infographics, and an operational field guide for designing and implementing Blockchain projects to address challenges across the identity lifecycle.

The GovLab, in collaboration with the National Resource Governance Institute, is also delighted to announce a new initiative aimed at taking stock of the promise, practice and challenge of the use of Blockchain in the extractives sector. The project is focused in particular on DLTs as they relate to beneficial ownership, licensing and contracting transparency, and commodity trading transparency. This fall, we will share a collection of Blockchain for extractives case studies, as well as a report summarizing if, when, and how Blockchain can provide value across the extractives decision chain.

If you are interested in collaborating on our work to increase our understanding of Blockchain’s real potential for social change, or if you have any feedback on this presentation of early findings, please contact [email protected].

 

Everyone can now patrol this city’s streets for crime. ACLU says that’s a bad idea

Curated on Posted on by Stefaan Verhulst

NJ.com: “All eyes are on the city of Newark, literally.  The city recently revealed its new “Citizen Virtual Patrol” program, which places 60 cameras around the city’s intersections, putting the city’s streets, and those who venture out on them, on display seven days a week, 24 hours a day.

That isn’t startling, as cameras have been up in the city for the past dozen years, says Anthony Ambrose, the city’s public safety director.

What is new, and not found in other cities, is that police officers won’t be the only ones trolling for criminals. Now, anyone who’s willing to submit their email address and upload an app onto their home computer or phone, can watch those cameras.

Citizens can then alert police when they see suspicious activity and remain anonymous.  “Right now, in this era of society, it’s impossible to be outside without being recorded,” said Newark Mayor Ras Baraka. “We need to be able to use that technology to allow the police to do their job more efficiently and more cost effective.”

Those extra eyes, however, come at a cost. The cameras could also provide stalkers with their victim’s whereabouts, show intimate scenes and even when residents leave their homes vacant as they head out on vacation.

The American Civil Liberties Association of New Jersey is asking Newark to end the program, saying it’s a violation of privacy and the Fourth Amendment.

“Newark is crowdsourcing it’s responsibility to the public instead of engaging in policing,” said ACLU-NJ Executive Director Amol Sinha.

“There’s a fundamental difference between a civilian using their phone to record a certain area than government having cameras where people have a reasonable expectation of privacy,” Sinha said….

The city also plans to launch a campaign informing residents about the cameras.

“It’s about transparency,” Ambrose said. “We’re not saying we put cameras out there and you don’t know where they are at, we’re telling you.” …(More)”.

A Framework for Strengthening Data Ecosystems to Serve Humanitarian Purposes

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Paper by Marc van den Homberg et al: “The incidence of natural disasters worldwide is increasing. As a result, a growing number of people is in need of humanitarian support, for which limited resources are available. This requires an effective and efficient prioritization of the most vulnerable people in the preparedness phase, and the most affected people in the response phase of humanitarian action. Data-driven models have the potential to support this prioritization process. However, the applications of these models in a country requires a certain level of data preparedness.
To achieve this level of data preparedness on a large scale we need to know how to facilitate, stimulate and coordinate data-sharing between humanitarian actors. We use a data ecosystem perspective to develop success criteria for establishing a “humanitarian data ecosystem”. We first present the development of a general framework with data ecosystem governance success criteria based on a systematic literature review. Subsequently, the applicability of this framework in the humanitarian sector is assessed through a case study on the “Community Risk Assessment and Prioritization toolbox” developed by the Netherlands Red Cross. The empirical evidence led to the adaption the framework to the specific criteria that need to be addressed when aiming to establish a successful humanitarian data ecosystem….(More)”.

Optimal Scope for Free Flow of Non-Personal Data in Europe

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Paper by Simon Forge for the European Parliament Think Tank: “Data is not static in a personal/non-personal classification – with modern analytic methods, certain non-personal data can help to generate personal data – so the distinction may become blurred. Thus, de-anonymisation techniques with advances in artificial intelligence (AI) and manipulation of large datasets will become a major issue. In some new applications, such as smart cities and connected cars, the enormous volumes of data gathered may be used for personal information as well as for non-personal functions, so such data may cross over from the technical and non-personal into the personal domain. A debate is taking place on whether current EU restrictions on confidentiality of personal private information should be relaxed so as to include personal information in free and open data flows. However, it is unlikely that a loosening of such rules will be positive for the growth of open data. Public distrust of open data flows may be exacerbated because of fears of potential commercial misuse of such data, as well of leakages, cyberattacks, and so on. The proposed recommendations are: to promote the use of open data licences to build trust and openness, promote sharing of private enterprises’ data within vertical sectors and across sectors to increase the volume of open data through incentive programmes, support testing for contamination of open data mixed with personal data to ensure open data is scrubbed clean – and so reinforce public confidence, ensure anti-competitive behaviour does not compromise the open data initiative….(More)”.

Digital Skills Toolkit

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Report by the International Telecommunications Union: “This toolkit provides stakeholders with guidance on developing a digital skills strategy. It is intended for policymakers, along with partners in the private sector, non-governmental organizations, and academia. Its overarching aim is to facilitate the development of a comprehensive digital skills strategy at country level. It is also possible to use this guide to focus on selected priorities that require a fresh approach.

Why do countries need a digital skills strategy?

Digital skills underpin nearly every aspect of work and life. From filling in a government form to communicating for work, it is difficult to find a job or life-task that does not require a basic level of digital functioning. And with new technologies emerging every day, we need lifelong opportunities to learn new skills that will allow us to succeed in an era of ongoing digital transformation. Digital skills are essential in opening the door to a wide range of opportunities in the 21st century. Countries that implement comprehensive digital skills strategies ensure their populations have the skills they need to be more employable, productive, creative, and successful while ensuring they remain safe, secure and healthy online. Critically, digital skills strategies need to be updated regularly to respond to the emergence of new technologies and their impact on the digital economy and digital society. The digital economy has created a huge shortage of people with the necessary digital skills. ITU research shows that there will be tens of millions of jobs for people with advanced digital skills in the coming years. In Europe, for example, estimates suggest there will be 500,000 unfilled positions for ICT professionals by 2020. Every region faces similar challenges. In addition to existing skills gaps, experts forecast that advances in areas like artificial intelligence, nanotechnology, 3D printing, and other technologies will usher in a new era that will radically alter patterns of consumption, production, and employment. Many countries view digital skills as one of the core foundations of the digital transformation….(More)”

How Do You Control 1.4 Billion People?

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Robert Foyle Hunwick at The New Republic: China’s “social credit system”, which becomes mandatory in 2020, aims to funnel all behavior into a credit score….The quoted text is from a 2014 State Council resolution which promises that every involuntary participant will be rated according to their “commercial sincerity,” “social security,” “trust breaking” and “judicial credibility.”

Some residents welcome it. Decades of political upheaval and endemic corruption has bred widespread mistrust; most still rely on close familial networks (guanxi) to get ahead, rather than public institutions. An endemic lack of trust is corroding society; frequent incidents of “bystander effect”—people refusing to help injured strangers for fear of being held responsible—have become a national embarrassment. Even the most enthusiastic middle-class supporters of the ruling Communist Party (CCP) feel perpetually insecure. “Fraud has become ever more common,” Lian Weiliang, vice chairman of the CCP’s National Development and Reform Commission, recently admitted. “Swindlers must pay a price.”

The solution, apparently, lies in a data-driven system that automatically separates the good, the bad, and the ugly…

once compulsory state “social credit” goes national in 2020, these shadowy algorithms will become even more opaque. Social credit will align with Communist Party policy to become another form of law enforcement. Since Beijing relaxed its One Child Policy to cope with an aging population (400 million seniors by 2035), the government has increasingly indulged in a form of nationalist natalism to encourage more two-child families. Will women be penalized for staying single, and rewarded for swapping their careers for childbirth? In April, one of the country’s largest social-media companies banned homosexual content from its Weibo platform in order to “create a bright and harmonious community environment” (the decision was later rescinded in favor of cracking down on all sexual content). Will people once again be forced to hide non-normative sexual orientations in order to maintain their rights? An investigation by the University of Toronto’s Citizen Lab also warns that social credit policies would be used to discourage protest.

State media has defended social credit against Orwellian charges, arguing that China’s maturing economy requires a “well-functioning” apparatus like the U.S.’s FICO credit score system. But, counters Lubman, “the U.S. systems, maintained by three companies, collect only financially related information.” In the UK, citizens are entitled to an Equifax report itemizing their credit status. In China, only the security services have access to an individual’s dang’an, the personal file containing every scrap of information the state keeps on them, from exam results to their religious and political views….(More)”.