A crisis of legitimacy


Blair Sheppard and Ceri-Ann Droog at Strategy and Business: “For the last 70 years the world has done remarkably well. According to the World Bank, the number of people living in extreme poverty today is less than it was in 1820, even though the world population is seven times as large. This is a truly remarkable achievement, and it goes hand in hand with equally remarkable overall advances in wealth, scientific progress, human longevity, and quality of life.

But the organizations that created these triumphs — the most prominent businesses, governments, and multilateral institutions of the post–World War II era — have failed to keep their implicit promises. As a result, today’s leading organizations face a global crisis of legitimacy. For the first time in decades, their influence, and even their right to exist, are being questioned.

Businesses are also being held accountable in new ways for the welfare, prosperity, and health of the communities around them and of the general public. Our own global firm, PwC, is among these businesses. The accusations facing any individual enterprise may or may not be justified, but the broader attitudes underlying them must be taken seriously.

The causes of this crisis of legitimacy have to do with five basic challenges affecting every part of the world:

  • Asymmetry: Wealth disparity and the erosion of the middle class
  • Disruption: Abrupt technological changes and their destructive effects
  • Age: Demographic pressures as the average life span of human beings increases and the birth rate falls
  • Populism: Growing populism and rejection of the status quo, with associated nationalism and global fracturing
  • Trust: Declining confidence in the prevailing institutions that make our systems work.

(We use the acronym ADAPT to list these challenges because it evokes the inherent change in our time and the need for institutions to respond with new attitudes and behaviors.)

Source: strategy-business.com/ADAPT

A few other challenges, such as climate change and human rights issues, may occur to you as equally important. They are not included in this list because they are not at the forefront of this particular crisis of legitimacy in the same way. But they are affected by it; if leading businesses and global institutions lose their perceived value, it will be harder to address every other issue affecting the world today.

Ignoring the crisis of legitimacy is not an option — not even for business leaders who feel their primary responsibility is to their shareholders. If we postpone solutions too long, we could go past the point of no return: The cost of solving these problems will be too high. Brexit could be a test case. The costs and difficulties of withdrawal could be echoed in other political breakdowns around the world. And if you don’t believe that widespread economic and political disruption is possible right now, then consider the other revolutions and abrupt, dramatic changes in sovereignty that have occurred in the last 250 years, often with technological shifts and widespread dissatisfaction as key factors….(More)”.

What if government was a game?


TedX Talk by Gianluca Sgueo: “How does gaming link people in today society? In business, companies use gamification as a marketing tool to attract customer; while government and non-governmental organizations deploy it to connect citizens and public powers. Gianluca Sgueo, a global professor major in public law and policy analyst, tells us how a gamified government facilitates and engages the citizens in the policy-making process; as well as its inconspicuous but important impacts brought to our lives. Gianluca Sgueo is Global Media Professor at New York University in Florence, Visiting Professor at HEC Paris and Research Associate at the Center of Social Studies of the University of Coimbra. His area of expertise is the public sector, to which he provides professional services. His academic work focuses on participatory democracy, lobbying and globalization and he is author of a recent work about Games, Powers & Democracies….(More)

The 100 Questions Initiative: Sourcing 100 questions on key societal challenges that can be answered by data insights


100Q Screenshot

Press Release: “The Governance Lab at the NYU Tandon School of Engineering announced the launch of the 100 Questions Initiative — an effort to identify the most important societal questions whose answers can be found in data and data science if the power of data collaboratives is harnessed.

The initiative, launched with initial support from Schmidt Futures, seeks to address challenges on numerous topics, including migration, climate change, poverty, and the future of work.

For each of these areas and more, the initiative will seek to identify questions that could help unlock the potential of data and data science with the broader goal of fostering positive social, environmental, and economic transformation. These questions will be sourced by leveraging “bilinguals” — practitioners across disciplines from all over the world who possess both domain knowledge and data science expertise.

The 100 Questions Initiative starts by identifying 10 key questions related to migration. These include questions related to the geographies of migration, migrant well-being, enforcement and security, and the vulnerabilities of displaced people. This inaugural effort involves partnerships with the International Organization for Migration (IOM) and the European Commission, both of which will provide subject-matter expertise and facilitation support within the framework of the Big Data for Migration Alliance (BD4M).

“While there have been tremendous efforts to gather and analyze data relevant to many of the world’s most pressing challenges, as a society, we have not taken the time to ensure we’re asking the right questions to unlock the true potential of data to help address these challenges,” said Stefaan Verhulst, co-founder and chief research and development officer of The GovLab. “Unlike other efforts focused on data supply or data science expertise, this project seeks to radically improve the set of questions that, if answered, could transform the way we solve 21st century problems.”

In addition to identifying key questions, the 100 Questions Initiative will also focus on creating new data collaboratives. Data collaboratives are an emerging form of public-private partnership that help unlock the public interest value of previously siloed data. The GovLab has conducted significant research in the value of data collaboration, identifying that inter-sectoral collaboration can both increase access to information (e.g., the vast stores of data held by private companies) as well as unleash the potential of that information to serve the public good….(More)”.

Can tracking people through phone-call data improve lives?


Amy Maxmen in Nature: “After an earthquake tore through Haiti in 2010, killing more than 100,000 people, aid agencies spread across the country to work out where the survivors had fled. But Linus Bengtsson, a graduate student studying global health at the Karolinska Institute in Stockholm, thought he could answer the question from afar. Many Haitians would be using their mobile phones, he reasoned, and those calls would pass through phone towers, which could allow researchers to approximate people’s locations. Bengtsson persuaded Digicel, the biggest phone company in Haiti, to share data from millions of call records from before and after the quake. Digicel replaced the names and phone numbers of callers with random numbers to protect their privacy.

Bengtsson’s idea worked. The analysis wasn’t completed or verified quickly enough to help people in Haiti at the time, but in 2012, he and his collaborators reported that the population of Haiti’s capital, Port-au-Prince, dipped by almost one-quarter soon after the quake, and slowly rose over the next 11 months1. That result aligned with an intensive, on-the-ground survey conducted by the United Nations.

Humanitarians and researchers were thrilled. Telecommunications companies scrutinize call-detail records to learn about customers’ locations and phone habits and improve their services. Researchers suddenly realized that this sort of information might help them to improve lives. Even basic population statistics are murky in low-income countries where expensive household surveys are infrequent, and where many people don’t have smartphones, credit cards and other technologies that leave behind a digital trail, making remote-tracking methods used in richer countries too patchy to be useful.

Since the earthquake, scientists working under the rubric of ‘data for good’ have analysed calls from tens of millions of phone owners in Pakistan, Bangladesh, Kenya and at least two dozen other low- and middle-income nations. Humanitarian groups say that they’ve used the results to deliver aid. And researchers have combined call records with other information to try to predict how infectious diseases travel, and to pinpoint locations of poverty, social isolation, violence and more (see ‘Phone calls for good’)….(More)”.

Platforms that trigger innovation


Report by the Caixa Foundation: “…The Work4Progress programme thus supports the creation of “Open Innovation Platforms for the creation of employment in Peru, India and Mozambique” by means of collaborative partnerships between local civil society organisations, private sector, administration, universities and Spanish NGOs.

The main innovation of this programme is the incorporation of new tools and methodologies in: (1) listening and identification of community needs, (2) the co-creation and prototyping of new solutions, (3) the exploration of instruments for scaling, (4) governance, (5) evolving evaluation systems and (6) financing strategies. The goal of all of the above is to try to incorporate innovation strategies comprehensively in all components.

Work4Progress has been designed with a Think-and-Do-Tank mentality. The
member organisations of the platforms are experimenting in the field, while a group of international experts helps us to obtain this knowledge and share it with centres of thought and action at international level. In fact, this is the objective of this publication: to share the theoretical framework of the programme, to connect these ideas with concrete examples and to continue to strengthen the meeting point between social innovation and development cooperation.

Work4Progress is offered as a ‘living lab’ to test new methodologies that may be useful for other philanthropic institutions, governments or entities specialising in international development….(More)”.

The Geopolitics of Information


Paper by Eric Rosenbach and Katherine Mansted: “Information is now the world’s most consequential and contested geopolitical resource. The world’s most profitable businesses have asserted for years that data is the “new oil.” Political campaigns—and foreign intelligence operatives—have shown over the past two American presidential elections that data-driven social media is the key to public opinion. Leading scientists and technologists understand that good datasets, not just algorithms, will give them a competitive edge.

Data-driven innovation is not only disrupting economies and societies; it is reshaping relations between nations. The pursuit of information power—involving states’ ability to use information to influence, decide, create and communicate—is causing states to rewrite their terms of engagement with markets and citizens, and to redefine national interests and strategic priorities. In short, information power is altering the nature and behavior of the fundamental building block of international relations, the state, with potentially seismic consequences.

Authoritarian governments recognize the strategic importance of information and over the past five years have operationalized powerful domestic and international information strategies. They are cauterizing their domestic information environments and shutting off their citizens from global information flows, while weaponizing information to attack and destabilize democracies. In particular, China and Russia believe that strategic competition in the 21st century is characterized by a zero-sum contest for control of data, as well as the technology and talent needed to convert data into useful information.

Democracies remain fundamentally unprepared for strategic competition in the Information Age. For the United States in particular, as the importance of information as a geopolitical resource has waxed, its information dominance has waned. Since the end of the Cold War, America’s supremacy in information technologies seemed unassailable—not least because of its central role in creating the Internet and overall economic primacy. Democracies have also considered any type of information strategy to be largely unneeded: government involvement in the domestic information environment feels Orwellian, while democracies believed that their “inherently benign” foreign policy didn’t need extensive influence operations.

However, to compete and thrive in the 21st century, democracies, and the United States in particular, must develop new national security and economic strategies that address the geopolitics of information. In the 20th century, market capitalist democracies geared infrastructure, energy, trade, and even social policy to protect and advance that era’s key source of power—manufacturing. In this century, democracies must better account for information geopolitics across all dimensions of domestic policy and national strategy….(More)”.

So­cial me­dia data re­veal where vis­it­ors to nature loca­tions provide po­ten­tial be­ne­fits or threats to biodiversity


University of Helsinki: “In a new article published in the journal Science of the Total Environment, a team of researchers assessed global patterns of visitation rates, attractiveness and pressure to more than 12,000 Important Bird and Biodiversity Areas (IBAs), which are sites of international significance for nature conservation, by using geolocated data mined from social media (Twitter and Flickr).

The study found that Important Bird and Biodiversity Areas located in Europe and Asia, and in temperate biomes, had the highest density of social media users. Results also showed that sites of importance for congregatory species, which were also more accessible, more densely populated and provided more tourism facilities, received higher visitation than did sites richer in bird species.

 “Resources in biodiversity conservation are woefully inadequate and novel data sources from social media provide openly available user-generated information about human-nature interactions, at an unprecedented spatio-temporal scale”, says Dr Anna Hausmann from the University of Helsinki, a conservation scientist leading the study. “Our group has been exploring and validating data retrieved from social media to understand people´s preferences for experiencing nature in national parks at a local, national and continental scale”, she continues, “in this study, we expand our analyses at a global level”. …

“Social media content and metadata contain useful information for understanding human-nature interactions in space and time”, says Prof. Tuuli Toivonen, another co-author in the paper and the leader of the Digital Geography Lab at the University of Helsinki. “Social media data can also be used to cross-validate and enrich data collected by conservation organizations”, she continues. The study found that the 17 percent of all Important Bird and Biodiversity Areas (IBA) that were assessed by experts to be under greater human disturbance also had higher density of social media users….(More)”.

Open Data and the Private Sector


Chapter by Joel Gurin, Carla Bonini and Stefaan Verhulst in State of Open Data: “The open data movement launched a decade ago with a focus on transparency, good governance, and citizen participation. As other chapters in this collection have documented in detail, those critical uses of open data have remained paramount and are continuing to grow in importance at a time of fake news and increased secrecy. But the value of open data extends beyond transparency and accountability – open data is also an important resource for business and economic growth.

The past several years have seen an increased focus on the value of open data to the private sector. In 2012, the Open Data Institute (ODI) was founded in the United Kingdom (UK) and backed with GBP 10 million by the UK government to maximise the value of open data in business and government. A year later, McKinsey released a report suggesting open data could help unlock USD 3 to 5 trillion in economic value annually. At around the same time, Monsanto acquired the Climate Corporation, a digital agriculture company that leverages open data to inform farmers for approximately USD 1.1 billion. In 2014, the GovLab launched the Open Data 500,2the first national study of businesses using open government data (now in six countries), and, in 2015, Open Data for Development (OD4D) launched the Open Data Impact Map, which today contains more than 1 100 examples of private sector companies using open data. The potential business applications of open data continue to be a priority for many governments around the world as they plan and develop their data programmes.

The use of open data has become part of the broader business practice of using data and data science to inform business decisions, ranging from launching new products and services to optimising processes and outsmarting the competition. In this chapter, we take stock of the state of open data and the private sector by analysing how the private sector both leverages and contributes to the open data ecosystem….(More)”.

Does Aid Effectiveness Differ per Political Ideologies?


Paper by Vincent Tawiah, Barnes Evans and Abdulrasheed Zakari: “Despite the extensive empirical literature on aid effectiveness, existing studies have not addressed directly how political ideology affects the use of foreign aid in the recipient country. This study, therefore, uses a unique dataset of 12 democratic countries in Africa to investigate the impact of political ideologies on aid effectiveness. Our results indicate that each political party uses aid differently in peruse of their political, ideological orientation. Further analyses suggest that rightist capitalist parties are likely to use aid to improve the private sector environment. Leftist socialist on the other hand, use aid effectively on pro-poor projects such as short-term poverty reduction, mass education and health services. Our additional analysis on the lines of colonialisation shows that the difference in the use of aid by political parties is much stronger in French colonies than Britain colonies. The study provides insight on how the recipient government are likely to use foreign aid….(More)”.

Companies That Rely On Census Data Worry Citizenship Question Will Hurt


Hansi Lo Wang at NPR: “Some critics of the citizenship question the Trump administration wants to add to the 2020 census are coming from a group that tends to stay away from politically heated issues — business leaders.

From longtime corporations like Levi Strauss & Co. to upstarts like Warby Parker, some companies say that including the question — “Is this person a citizen of the United States?” — could harm not only next year’s national head count, but also their bottom line.

How governments use census data is a common refrain in the lead-up to a constitutionally mandated head count of every person living in the U.S. The new population counts, gathered once a decade, are used to determine how congressional seats and Electoral College votes are distributed among the states. They also guide how hundreds of billions in federal tax dollars are spread around the country to fund public services.

What is often less visible is how the census data undergird decisions made by large and small businesses across the country. The demographic information the census collects — including the age, sex, race, ethnicity and housing status of all U.S. residents — informs business owners about who their existing and future customers are, which new products and services those markets may want and where to build new locations.

Weeks before the Supreme Court heard oral arguments over the citizenship question last month, more than two dozen companies and business groups filed a friend-of-the-court brief against the question. Its potential impact on the accuracy of census data, especially about immigrants and people of color, is drawing concern from both Lyft and Uber, as well as Levi Strauss, Warby Parker and Univision.

“We don’t view this as a political situation at all,” says Christine Pierce, the senior vice president of data science at Nielsen — a major data analytics company in the business world that filed its own brief with the high court. “We see this as one that is around sound research and good science.”…(More)”.