The rise of open data driven businesses in emerging markets

Curated on Posted on by Stefaan Verhulst

Alla Morrison at the Worldbank blog:

Key findings —

  • Many new data companies have emerged around the world in the last few years. Of these companies, the majority use some form of government data.
  • There are a large number of data companies in sectors with high social impact and tremendous development opportunities.
  • An actionable pipeline of data-driven companies exists in Latin America and in Asia. The most desired type of financing is equity, followed by quasi-equity in the amounts ranging from $100,000 to $5 million, with averages of between $2 and $3 million depending on the region. The total estimated need for financing may exceed $400 million.

“The economic value of open data is no longer a hypothesis
How can one make money with open data which is akin to air – free and open to everyone? Should the World Bank Group be in the catalyzer role for a sector that is just emerging?  And if so, what set of interventions would be the most effective? Can promoting open data-driven businesses contribute to the World Bank Group’s twin goals of fighting poverty and boosting shared prosperity?
These questions have been top of the mind since the World Bank Open Finances team convened a group of open data entrepreneurs from across Latin America to share their business models, success stories and challenges at the Open Data Business Models workshop in Uruguay in June 2013. We were in Uruguay to find out whether open data could lead to the creation of sustainable new businesses and jobs. To do so, we tested a couple of hypotheses: open data has economic value, beyond the benefits of increased transparency and accountability; and open data companies with sustainable business models already exist in emerging economies.
Encouraged by our findings in Uruguay we set out to further explore the economic development potential of open data, with a focus on:

  • Contribution of open data to countries’ GDP;
  • Innovative solutions to tackle social problems in key sectors like agriculture, health, education, transportation, climate change, financial services, especially those benefiting low income populations;
  • Economic benefits of governments’ buy-in into the commercial value of open data and resulting release of new datasets, which in turn would lead to increased transparency in public resource management (reductions in misallocations, a more level playing field in procurement) and better service delivery; and
  • Creation of data-related private sector jobs, especially suited for the tech savvy young generation.

We proposed a joint IFC/World Bank approach (From open data to development impact – the crucial role of private sector) that envisages providing financing to data-driven companies through a dedicated investment fund, as well as loans and grants to governments to create a favorable enabling environment. The concept was received enthusiastically for the most part by a wide group of peers at the Bank, the IFC, as well as NGOs, foundations, DFIs and private sector investors.
Thanks also in part to a McKinsey report last fall stating that open data could help unlock more than $3 trillion in value every year, the potential value of open data is now better understood. The acquisition of Climate Corporation (whose business model holds enormous potential for agriculture and food security, if governments open up the right data) for close to a billion dollars last November and the findings of the Open Data 500 project led by GovLab of the NYU further substantiated the hypothesis. These days no one asks whether open data has economic value; the focus has shifted to finding ways for companies, both startups and large corporations, and governments to unlock it. The first question though is – is it still too early to plan a significant intervention to spur open data driven economic growth in emerging markets?”

Civic Crowdfunding: Participatory Communities, Entrepreneurs and the Political Economy of Place

Curated on Posted on by Stefaan Verhulst

Rodrigo Davis: “Today I’m capping two years of studying the emergence of civic crowdfunding by submitting my master’s thesis to the MIT archives…You can read Civic Crowdfunding: Participatory Communities, Entrepreneurs and the Political Economy of Place in its entirety (173 pages) now,…
Crowdfunding is everywhere. People are using it to fund watches, comic books, even famous film directors are doing it. In what is now a $6 billion industry globally, I think the most interesting, disruptive and exciting work that’s happening is in donation-based crowdfunding. That’s worth, very roughly, $1.2 billion a year worldwide per year. Within that subset, I’ve been looking at civic projects, people who are producing shared goods for a community or broader public. These projects build on histories of community fundraising and resource pooling that long predate the Internet; what’s changed is that we’ve created a scalable, portable platform model to carry out these existing practices.
So how is civic crowdfunding doing? When I started this project very few people were using that term. No one had done any aggregated data collection and published it. So I decided to take on that task. I collected data on 1224 projects between 2010 and March 2014, which raised $10.74 million in just over three years. I focused on seven platforms: Catarse (Brazil), Citizinvestor (US), Goteo (Spain), IOBY (US), Kickstarter (US), Neighbor.ly (US) and Spacehive (UK). I didn’t collect everything. …
Here are four things I found out about civic crowdfunding.

  1. Civic crowdfunding is small-scale but relatively successful, and it has big ambitions.Currently the average civic crowdfunding project is small in scale: $6,357 is the median amount raised. But these civic projects seem to be doing pretty well. Projects tagged ‘civic’ on Kickstarter, for instance, succeed 81% of the time. If Civic were a separate category, it would be Kickstarter’s most successful category. Meanwhile, most platform owners and some incumbent institutions see civic crowdfunding as a new mechanism for public-private partnerships capable of realizing large-scale projects. In a small minority of cases, such as the three edge-case projects I explored in Chapter 3 of my thesis, civic crowdfunding has begun to fulfill some of those ambitions. For the center of gravity to shift further in the direction of these potential outcomes, though, existing institutions, including government, large non-profits and the for-profit sector, will need to engage more comprehensively with the process.
  2. Civic crowdfunding started as a hobby for green space projects by local non-profits, but larger organizations are getting involved. Almost a third of campaigners are using civic crowdfunding platforms for park and garden-related projects (29%). Event-based projects, and education and training are also popular. Sports and mobility projects are pretty uncommon. The frequency of garden and park projects is partly because these projects are not capital intensive, and they’re uncontroversial. That’s also changing. Organizations from governments to corporations and large foundations, are exploring ways to support crowdfunding for a much wider range of community-facing activities. Their modes of engagement include publicizing campaigns, match-funding campaigns on an ad-hoc basis, running their own campaigns and even building new platforms from the ground up.
  3. Civic crowdfunding is concentrated in cities (especially those where platforms are based). The genre is too new to have spread very effectively, it seems. Five states account for 80% of the projects, and this is partly a function of where the platforms are located. New York, California are our top two, followed by Illinois and Oregon. We know there’s a strong trend towards big cities. It’s hard work for communities to use crowdfunding to get projects off the ground, especially when it’s an unfamiliar process. The platforms have played a critical role in building participants’ understanding of crowdfunding and supporting them through the process.
  4. Civic crowdfunding has the same highly unequal distributional tendencies as other crowd markets. When we look at the size distribution of projects, the first thing we notice is something close to a Pareto distribution, or Long Tail. Most projects are small-scale, but a small number of high-value projects have taken a large share of the total revenue raised by civic crowdfunding. We shouldn’t be surprised by this. On Kickstarter most successful projects are between 5 and 10k, and 47% of civic projects I studied are in the same bracket. The problem is that we tend to remember the outliers, such as Veronica Mars and Spike Lee – because they show what’s possible. But they are still the outliers.

Now, here are two things we don’t know.

  1. Will civic crowdfunding deter public investment or encourage it?
  2. Will civic crowdfunding widen wealth gaps?”

The merits of participatory budgeting

Curated on Posted on by Stefaan Verhulst
Hollie Russon Gilman at Aljazeera America: “For many Americans, government just isn’t working. In 2013, government dysfunction surpassed the economy as the top identified U.S. problem. A recent survey found that nearly 6 out of 10 Americans rate the health of our democracy as weak — and unlikely to get better anytime soon. But in small corners throughout the United States, democratic innovations are creating new opportunities for citizens to be a part of governance. Collectively known as open government or civic innovation, these projects are engaging policymakers, citizens and civil society and proving the skeptics wrong.
One particularly promising innovation in participatory budgeting, or PB — a process to directly empower citizens to make spending decisions on a defined public budget. PB was first attempted in Porto Alegre, Brazil, in 1989. Its success led to the World Bank calling PB a “best practice” in democratic innovation. Since then, PB has expanded to over 1,500 cities worldwide, including several in the U.S. Starting in 2009 in Chicago’s 49th Ward with a budget of just $1 million, PB in the United States has expanded to a $27 million-a-year experiment. Municipal leaders from Vallejo, California, to New York City have turned over a portion of their discretionary funds to neighborhood residents. Boston recently launched the first youth-driven PB. Nearly half of New York’s City Council members are slated to participate this fall, after newly elected Mayor Bill de Blasio made it a cornerstone of his campaign. Chicago Mayor Rahm Emanuel created a new manager of participatory budgeting who will help coordinate Council districts that want to participate. The White House recently included federally supported participatory budgeting as part of its international Open Government Partnership commitments.

Wants and needs

In PB, citizens are empowered to identify community needs, work with elected officials to craft budget proposals and vote upon where to spend public funds. The decisions are binding. And that’s important: Making democracy work is not just about making better citizens or changing policies. It is also about creating structures that create the conditions that make the effective exercise of democratic citizenship possible, and PB is uniquely structured to do that.

Chicago has been a particularly insightful petri dish to study PB in the U.S., mainly because the city is an unlikely candidate for democratic innovations. For decades its Democratic machine retained a strong and continuous hold over city government. The Daley family held the mayoralty for a combined 12 terms. While discretionary funds (known as “menu money”) are allocated equally — but not equitably, given different needs — to all 50 wards, the process of spending this money is at the discretion of locally elected aldermen. From 1972 to 2009, 30 Chicago aldermen were indicted and convicted of federal crimes ranging from income tax evasion to extortion, embezzlement and conspiracy. Clearly, Chicago has not always been a model of good governance.
Against this backdrop, PB has continued to expand in Chicago. This year three districts participated. The Fifth Ward, home to the University of Chicago, decided not to continue the process again this year. Instead, this year the ward had four groups of residents each allocate $250,000. The alderwoman noted that this enabled the transparency and engagement aspect of PB with fewer process resources — they had only 100 people come out to vote.
Different versions of PB are aimed to lower the current barriers to civic engagement. I have seen PB bring out people who have never before engaged in politics. Many longtime civic participants often cite PB as the single most meaningful civic engagement of their lives — far above, say, jury duty. Suddenly, citizens are empowered with real decision-making authority and leave with new relationships with their peers, community and elected officials.
However, PB is not a stand-alone endeavor. It must be part of a larger effort to improve governance. This must include greater transparency in public decision making and empowering citizens to hold their elected officials more accountable. The process provides an enormous education that can be translated into civic activity beyond PB. Ideally after engaging in PB, a citizen will be better equipped to volunteer in the community, vote or push for policy reform. What other infrastructure, both online and off, is needed to support citizens who want to further engage in more collaborative governance?  …”

Out in the Open: An Open Source Website That Gives Voters a Platform to Influence Politicians

Curated on Posted on by Stefaan Verhulst

Klint Finley in Wired: “This is the decade of the protest. The Arab Spring. The Occupy Movement. And now the student demonstrations in Taiwan.
Argentine political scientist Pia Mancini says we’re caught in a “crisis of representation.” Most of these protests have popped up in countries that are at least nominally democratic, but so many people are still unhappy with their elected leaders. The problem, Mancini says, is that elected officials have drifted so far from the people they represent, that it’s too hard for the average person to be heard.
“If you want to participate in the political system as it is, it’s really costly,” she says. “You need to study politics in university, and become a party member and work your way up. But not every citizen can devote their lives to politics.”

Democracy OS is designed to address that problem by getting citizens directly involved in debating specific proposals when their representatives are actually voting on them.

That’s why Mancini started the Net Democracy foundation, a not-for-profit that explores ways of improving civic engagement through technology. The foundation’s first project is something called Democracy OS, an online platform for debating and voting on political issues, and it’s already finding a place in the world. The federal government in Mexico is using this open-source tool to gather feedback on a proposed public data policy, and in Tunisia, a non-government organization called iWatch has adopted it in an effort to give the people a stronger voice.
Mancini’s dissatisfaction with electoral politics stems from her experience working for the Argentine political party Unión Celeste y Blanco from 2010 until 2012. “I saw some practices that I thought were harmful to societies,” she says. Parties were too interested in the appearances of the candidates, and not interested enough in their ideas. Worse, citizens were only consulted for their opinions once every two to four years, meaning politicians could get away with quite a bit in the meantime.
Democracy OS is designed to address that problem by getting citizens directly involved in debating specific proposals when their representatives are actually voting on them. It operates on three levels: one for gathering information about political issues, one for public debate about those issues, and one for actually voting on specific proposals.
Various communities now use a tool called Madison to discuss policy documents, and many activists and community organizations have adopted Loomio to make decisions internally. But Democracy OS aims higher: to provide a common platform for any city, state, or government to actually put proposals to a vote. “We’re able to actually overthrow governments, but we’re not using technology to decide what to do next,” Mancini says. “So the risk is that we create power vacuums that get filled with groups that are already very well organized. So now we need to take it a bit further. We need to decide what democracy for the internet era looks like.”
Image: Courtesy of Net Democracy

Software Shop as Political Party

Today Net Democracy is more than just a software development shop. It’s also a local political party based in Beunos Aires. Two years ago, the foundation started pitching the first prototype of the software to existing political parties as a way for them to gather feedback from constituents, but it didn’t go over well. “They said: ‘Thank you, this is cool, but we’re not interested,’” Mancini remembers. “So we decided to start our own political party.”
The Net Democracy Party hasn’t won any seats yet, but it promises that if it does, it will use Democracy OS to enable any local registered voter to tell party representatives how to vote. Mancini says the party representatives will always vote the way constituents tell them to vote through the software.

‘We’re not saying everyone should vote on every issue all the time. What were saying is that issues should be open for everyone to participate.’

She also uses the term “net democracy” to refer to the type of democracy that the party advocates, a form of delegative democracy that attempts to strike a balance between representative democracy and direct democracy. “We’re not saying everyone should vote on every issue all the time,” Mancini explains. “What were saying is that issues should be open for everyone to participate.”
Individuals will also be able to delegate their votes to other people. “So, if you’re not comfortable voting on health issues, you can delegate to someone else to vote for you in that area,” she says. “That way people with a lot of experience in an issue, like a community leader who doesn’t have lobbyist access to the system, can build more political capital.”
She envisions a future where decisions are made on two levels. Decisions that involve specific knowledge — macroeconomics, tax reforms, judiciary regulations, penal code, etc. — or that affect human rights are delegated “upwards” to representatives. But then decisions related to local issues — transport, urban development, city codes, etc. — cab be delegated “downwards” to the citizens.

The Secret Ballot Conundrum

Ensuring the integrity of the votes gathered via Democracy OS will be a real challenge. The U.S. non-profit organization Black Box Voting has long criticized electronic voting schemes as inherently flawed. “Our criticism of internet voting is that it is not transparent and cannot be made publicly transparent,” says Black Box Voting founder Bev Harris. “With transparency for election integrity defined as public ability to see and authenticate four things: who can vote, who did vote, vote count, and chain of custody.”
In short, there’s no known way to do a secret ballot online because any system for verifying that the votes were counted properly will inevitably reveal who voted for what.
Democracy OS deals with that by simply doing away with secret ballots. For now, the Net Democracy party will have people sign-up for Democracy OS accounts in person with their government issued ID cards. “There is a lot to be said about how anonymity allows you to speak more freely,” Mancini says. “But in the end, we decided to prioritize the reliability, accountability and transparency of the system. We believe that by making our arguments and decisions public we are fostering a civic culture. We will be more responsible for what we say and do if it’s public.”
But making binding decisions based on these online discussions would be problematic, since they would skew not just towards those tech savvy enough to use the software, but also towards those willing to have their names attached to their votes publicly. Fortunately, the software isn’t yet being used to gather real votes, just to gather public feedback….”

Winds of Change: The Progress of Open Government Policymaking in Latin America and the Caribbean

Curated on Posted on by Stefaan Verhulst

Inter-American Development Bank paper by Ramírez Alujas, Álvaro V.; and Dassen, Nicolás: “The year 2013 has become known as the year of Open Government. The continuing progress of the Open Government Partnership represents the consolidation of a process that, in less than two years, has strengthened the promotion and implementation of public policies. These policies are founded on the principles of transparency and access to public information, citizen participation, integrity, and the harnessing of technology on behalf of openness and accountability in 63 participating countries. The Latin American and Caribbean region, in particular, stands out with the most widespread participation, including 15 borrowing member countries of the Inter-American Development Bank (IDB). Fourteen of these have action plans in process for the implementation and/or evaluation of these policies, reinforcing their commitment to open government. Trinidad and Tobago, one of the 15 member countries, will soon present its own action plan. To date, various countries are developing public consultation processes and opportunities for participation for a new two-year period of commitments relating to open government. It is, therefore, worthwhile to review, country-by-country, the commitments that have been carried out and to consider the views expressed by relevant stakeholders. This analysis will further contribute to this emerging domain a new paradigm for public policy and management reform in the 21st century.”

Looking for the Needle in a Stack of Needles: Tracking Shadow Economic Activities in the Age of Big Data

Curated on Posted on by Stefaan Verhulst

Manju Bansal in MIT Technology Review: “The undocumented guys hanging out in the home-improvement-store parking lot looking for day labor, the neighborhood kids running a lemonade stand, and Al Qaeda terrorists plotting to do harm all have one thing in common: They operate in the underground economy, a shadowy zone where businesses, both legitimate and less so, transact in the currency of opportunity, away from traditional institutions and their watchful eyes.
One might think that this alternative economy is limited to markets that are low on the Transparency International rankings (such as sub-Saharan Africa and South Asia, for instance). However, a recent University of Wisconsin report estimates the value of the underground economy in the United States at about $2 trillion, about 15% of the total U.S. GDP. And a 2013 study coauthored by Friedrich Schneider, a noted authority on global shadow economies, estimated the European Union’s underground economy at more than 18% of GDP, or a whopping 2.1 trillion euros. More than two-thirds of the underground activity came from the most developed countries, including Germany, France, Italy, Spain, and the United Kingdom.
Underground economic activity is a multifaceted phenomenon, with implications across the board for national security, tax collections, public-sector services, and more. It includes the activity of any business that relies primarily on old-fashioned cash for most transactions — ranging from legitimate businesses (including lemonade stands) to drug cartels and organized crime.
Though it’s often soiled, heavy to lug around, and easy to lose to theft, cash is still king simply because it is so easy to hide from the authorities. With the help of the right bank or financial institution, “dirty” money can easily be laundered and come out looking fresh and clean, or at least legitimate. Case in point is the global bank HSBC, which agreed to pay U.S. regulators $1.9 billion in fines to settle charges of money laundering on behalf of Mexican drug cartels. According to a U.S. Senate subcommittee report, that process involved transferring $7 billion in cash from the bank’s branches in Mexico to those in the United States. Just for reference, each $100 bill weighs one gram, so to transfer $7 billion, HSBC had to physically transport 70 metric tons of cash across the U.S.-Mexican border.
The Financial Action Task Force, an intergovernmental body established in 1989, has estimated the total amount of money laundered worldwide to be around 2% to 5% of global GDP. Many of these transactions seem, at first glance, to be perfectly legitimate. Therein lies the conundrum for a banker or a government official: How do you identify, track, control, and, one hopes, prosecute money launderers, when they are hiding in plain sight and their business is couched in networked layers of perfectly defensible legitimacy?
Enter big-data tools, such as those provided by SynerScope, a Holland-based startup that is a member of the SAP Startup Focus program. This company’s solutions help unravel the complex networks hidden behind the layers of transactions and interactions.
Networks, good or bad, are near omnipresent in almost any form of organized human activity and particularly in banking and insurance. SynerScope takes data from both structured and unstructured data fields and transforms these into interactive computer visuals that display graphic patterns that humans can use to quickly make sense of information. Spotting of deviations in complex networked processes can easily be put to use in fraud detection for insurance, banking, e-commerce, and forensic accounting.
SynerScope’s approach to big-data business intelligence is centered on data-intense compute and visualization that extend the human “sense-making” capacity in much the same way that a telescope or microscope extends human vision.
To understand how SynerScope helps authorities track and halt money laundering, it’s important to understand how the networked laundering process works. It typically involves three stages.
1. In the initial, or placement, stage, launderers introduce their illegal profits into the financial system. This might be done by breaking up large amounts of cash into less-conspicuous smaller sums that are then deposited directly into a bank account, or by purchasing a series of monetary instruments (checks, money orders) that are then collected and deposited into accounts at other locations.
2. After the funds have entered the financial system, the launderer commences the second stage, called layering, which uses a series of conversions or transfers to distance the funds from their sources. The funds might be channeled through the purchase and sales of investment instruments, or the launderer might simply wire the funds through a series of accounts at various banks worldwide. 
Such use of widely scattered accounts for laundering is especially prevalent in those jurisdictions that do not cooperate in anti-money-laundering investigations. Sometimes the launderer disguises the transfers as payments for goods or services.
3. Having successfully processed the criminal profits through the first two phases, the launderer then proceeds to the third stage, integration, in which the funds re-enter the legitimate economy. The launderer might invest the funds in real estate, luxury assets, or business ventures.
Current detection tools compare individual transactions against preset profiles and rules. Sophisticated criminals quickly learn how to make their illicit transactions look normal for such systems. As a result, rules and profiles need constant and costly updating.
But SynerScope’s flexible visual analysis uses a network angle to detect money laundering. It shows the structure of the entire network with data coming in from millions of transactions, a structure that launderers cannot control. With just a few mouse clicks, SynerScope’s relation and sequence views reveal structural interrelationships and interdependencies. When those patterns are mapped on a time scale, it becomes virtually impossible to hide abnormal flows.

SynerScope’s relation and sequence views reveal structural and temporal transaction patterns which make it virtually impossible to hide abnormal money flows.”

Is Participatory Budgeting Real Democracy?

Curated on Posted on by Stefaan Verhulst

Anna Clark in NextCity: “Drawing from a practice pioneered 25 years ago in Porto Alegre, Brazil and imported to North America via progressive leaders in Toronto and Quebec, participatory budgeting cracks open the closed-door process of fiscal decision-making in cities, letting citizens vote on exactly how government money is spent in their community. It’s an auspicious departure from traditional ways of allocating tax dollars, let alone in Chicago, which has long been known for deeply entrenched machine politics. As Alderman Joe Moore puts it, in Chicago, “so many decisions are made from the top down.”
Participatory budgeting works pretty simply in the 49th Ward. Instead of Moore deciding how to spend $1.3 million in “menu money” that is allotted annually to each of Chicago’s 50 council members for capital improvements, the councilman opens up a public process to determine how to spend $1 million of the allotment. The remaining $300,000 is socked away in the bank for emergencies and cost overruns.
And the unusual vote on $1 million in menu money is open to a wider swath of the community than your standard Election Day: you don’t have to be a citizen to cast a ballot, and the voting age is sixteen.
Thanks to the process, Rogers Park can now boast of a new community garden, dozens of underpass murals, heating shelters at three transit stations, hundreds of tree plantings, an outdoor shower at Loyola Park, a $110,000 dog park, and eye-catching “You Are Here” neighborhood information boards at transit station entrances.
…
Another prominent supporter of participatory budgeting? The White House. In December—about eight months after Joe Moore met with President Barack Obama about bringing participatory budgeting to the federal level—PB became an option for determining how to spend community development block-grant money from the Department of Housing and Urban Development. The Obama administration also declared that, in a yet-to-be-detailed partnership, it will help create tools that can be used for participatory budgeting on a local level.
All this activity has so far added up to $45 million in tax dollars allocated to 203 voter-approved projects across the country. Some 46,000 people and 500 organizations nationwide have been part of the decision-making, according to the nonprofit Participatory Budgeting Project.
….
But to fulfill this vision, the process needs resources behind it—enough funds for projects to demonstrate a visible community benefit, and ample capacity from the facilitators of the process (whether it’s district officials or city hall) to truly reach out to the community. Without intention and capacity, PB risks duplicating the process of elections for ordinary representative democracy, where white middle- and upper-class voters are far more likely to vote and therefore enjoy an outsized influence on their neighborhood.
…
Participatory budgeting works differently for every city. In Porto Alegre, Brazil, where the process was created a generation ago by The Worker’s Party to give disadvantaged people a stronger voice in government, as many as 50,000 people vote on how to spend public money each year. More than $700 million has been funneled through the process since its inception. Vallejo, Calif., embraced participatory budgeting in 2012 after emerging from bankruptcy as part of its citywide reinvention. In its first PB vote in May 2013, 3,917 residents voted over the course of a week at 13 polling locations. That translated into four percent of the city’s eligible voters—a tiny number, but a much higher percentage than previous PB processes in Chicago and New York.
But the 5th Ward in Hyde Park, a South Side neighborhood that’s home to the University of Chicago, dropped PB in December, citing low turnout in neighborhood assemblies and residents who felt the process was too much work to be worthwhile. “They said it was very time consuming, a lot of meetings, and that they thought the neighborhood groups that they had were active enough to do it without having all of the expenses that were associated with it,” Alderman Leslie Hairston told the Hyde Park Herald. In 2013, its first year with participatory budgeting, the 5th Ward held a PB vote that saw only 100 ballots cast.
Josh Lerner of the Participatory Budgeting Project says low turnout is a problem that can be solved through outreach and promotion. “It is challenging to do this without capacity,” he said. Internationally, according to Lerner, PB is part of a city administration, with a whole office coordinating the process. Without the backing from City Hall in Porto Alegre, participatory budgeting would have a hard time attracting the tens of thousands who now count themselves as part of the process. And even with the support from City Hall, the 50,000 participants represent less than one percent of the city’s population of 1.4 million.
…
So what’s next for participatory budgeting in Rogers Park and beyond?
Well, first off, Rahm Emanuel’s new Manager of Participatory Budgeting will be responsible for supporting council districts if and when they opt to go participatory. There won’t be a requirement to do so, but if a district wishes to follow the 49th, they will have high-level backup from City Hall.
But this new manager—as well as Chicago’s aldermen and engaged citizens—must understand that there is no one-size-fits-all formula for participatory budgeting. The process must be adapted to the unique needs and culture of each district if it is to resonate with locals. And timing is key for rolling out the process.
While still in the hazy early days, federal support through the new White House initiative may also prove crucial in streamlining the participatory budgeting process, easing the burden on local leaders and citizens, and ultimately generating better participation—and, therefore, better on-the-ground results in communities around the country.
One of the key lessons of participatory budgeting—as with democracy more broadly—is that efficiency is not the highest value in the public sphere. It would be much easier and more cost-effective for aldermen to return to the old days and simply check off the boxes for where he or she thinks menu money should be spent. “We could sign off on menu money in a couple hours, a couple days,” Vandercook said. By choosing the participatory path, aldermen effectively create more work for themselves. They risk low rates of participation and the possibility that winning projects may not be the most worthy. Scalability, too, is a problem — the larger the community served by the process, the more difficult it is to ensure that both the process and the resulting projects reflect the needs of the entire community.
Nonetheless, participatory budgeting serves a harder-to-measure purpose that may well be, in the final accounting, more important. It is a profound civic education for citizens, who dig into both the limits and possibilities of public money. They experience what their elected leaders must navigate every day. But it’s also a civic education for council members and city staff who may find that they are engaging with those they represent more than they ever had before, learning about what they value most. Owen Burgh, chief of staff for Alderman Joe Arena in Chicago’s 45th Ward, told the Participatory Budgeting Project, “I was really surprised by the amazing knowledge base we have among our volunteers. So many of our volunteers came to the process with a background where they understood some principles of traffic management, community development and urban planning. It was very refreshing. Usually, in an alderman’s office, people contact us to fix an isolated problem. Through this process, we discussed not just what needed to be fixed but what we wanted our community to be.”
The participatory budgeting process expands the scope and depth of civic spaces in the community, where elected leaders work with—not for—residents. Even for those who do not show up to vote, there is an empowerment that comes simply in knowing that they could; the sincere invitation to participate matters, whether or not it is accepted…”

New York Police Twitter Strategy Has Unforeseen Consequences

Curated on Posted on by Stefaan Verhulst

J. David Goodman in The New York Times: “The New York Police Department has long seen its crime-fighting strategies emulated across the country and around the world.

So when a departmental Twitter campaign, meant to elicit smiling snapshots, instead attracted tens of thousands of less flattering images of officers, it did not take long for the hashtag #myNYPD to spread far beyond the five boroughs.

By Wednesday, the public relations situation in New York City had sparked imitators from Los Angeles (#myLAPD) to Mexico (#MiPolicíaMexicana) and over the ocean to Greece (#myELAS), Germany (#DankePolizei) and France (#maPolice).

The images, including circles of police officers, in riot gear poised to strike a man on a bench, or hosing down protesters, closely resembled those posted on Tuesday by critics of the Police Department in New York, in which many of the most infamous moments in recent police history had been dredged up by Twitter users….”

Paying Farmers to Welcome Birds

Curated on Posted on by Stefaan Verhulst

Jim Robbins in The New York Times: “The Central Valley was once one of North America’s most productive wildlife habitats, a 450-mile-long expanse marbled with meandering streams and lush wetlands that provided an ideal stop for migratory shorebirds on their annual journeys from South America and Mexico to the Arctic and back.

Farmers and engineers have long since tamed the valley. Of the wetlands that existed before the valley was settled, about 95 percent are gone, and the number of migratory birds has declined drastically. But now an unusual alliance of conservationists, bird watchers and farmers have joined in an innovative plan to restore essential habitat for the migrating birds.

The program, called BirdReturns, starts with data from eBird, the pioneering citizen science project that asks birders to record sightings on a smartphone app and send the information to the Cornell Lab of Ornithology in upstate New York.

By crunching data from the Central Valley, eBird can generate maps showing where virtually every species congregates in the remaining wetlands. Then, by overlaying those maps on aerial views of existing surface water, it can determine where the birds’ need for habitat is greatest….

BirdReturns is an example of the growing movement called reconciliation ecology, in which ecosystems dominated by humans are managed to increase biodiversity.

“It’s a new ‘Moneyball,’ ” said Eric Hallstein, an economist with the Nature Conservancy and a designer of the auctions, referring to the book and movie about the Oakland Athletics’ data-driven approach to baseball. “We’re disrupting the conservation industry by taking a new kind of data, crunching it differently and contracting differently.”

The Transformative Impact of Data and Communication on Governance

Curated on Posted on by Stefaan Verhulst

Steven Livingston at Brookings: “How do digital technologies affect governance in areas of limited statehood – places and circumstances characterized by the absence of state provisioning of public goods and the enforcement of binding rules with a monopoly of legitimate force?  In the first post in this series I introduced the limited statehood concept and then described the tremendous growth in mobile telephony, GIS, and other technologies in the developing world.   In the second post I offered examples of the use of ICT in initiatives intended to fill at least some of the governance vacuum created by limited statehood.  With mobile phones, for example, farmers are informed of market conditions, have access to liquidity through M-Pesa and similar mobile money platforms….
This brings to mind another type of ICT governance initiative.  Rather than fill in for or even displace the state some ICT initiatives can strengthen governance capacity.  Digital government – the use of digital technology by the state itself — is one important possibility.  Other initiatives strengthen the state by exerting pressure. Countries with weak governance sometimes take the form of extractive states or those, which cater to the needs of an elite, leaving the majority of the population in poverty and without basic public services. This is what Daron Acemoglu and James A. Robinson call extractive political and economic institutions.  Inclusive states, on the other hand, are pluralistic, bound by the rule of law, respectful of property rights, and, in general, accountable.  Accountability mechanisms such as a free press and competitive multiparty elections are instrumental to discourage extractive institutions.  What ICT-based initiatives might lend a hand in strengthening accountability? We can point to three examples.

Example One: Using ICT to Protect Human Rights

Nonstate actors now use commercial, high-resolution remote sensing satellites to monitor weapons programs and human rights violations.  Amnesty International’s Remote Sensing for Human Rights offers one example, and Satellite Sentinel offers another.  Both use imagery from DigitalGlobe, an American remote sensing and geospatial content company.   Other organizations have used commercially available remote sensing imagery to monitor weapons proliferation.  The Institute for Science and International Security, a Washington-based NGO, revealed the Iranian nuclear weapons program in 2003 using commercial satellite imagery…

Example Two: Crowdsourcing Election Observation

Others have used mobile phones and GIS to crowdsource election observation.  For the 2011 elections in Nigeria, The Community Life Project, a civil society organization, created ReclaimNaija, an elections process monitoring system that relied on GIS and amateur observers with mobile phones to monitor the elections.  Each of the red dots represents an aggregation of geo-located incidents reported to the ReclaimNaija platform.  In a live map, clicking on a dot disaggregates the reports, eventually taking the reader to individual reports.  Rigorous statistical analysis of ReclaimNaija results and the elections suggest it contributed to the effectiveness of the election process.

ReclaimNaija: Election Incident Reporting System Map

ReclaimNaija: Election Incident Reporting System Map

Example Three: Using Genetic Analysis to Identify War Crimes

In recent years, more powerful computers have led to major breakthroughs in biomedical science.  The reduction in cost of analyzing the human genome has actually outpaced Moore’s Law.  This has opened up new possibilities for the use of genetic analysis in forensic anthropology.   In Guatemala, the Balkans, Argentina, Peru and in several other places where mass executions and genocides took place, forensic anthropologists are using genetic analysis to find evidence that is used to hold the killers – often state actors – accountable…”