The $100 Million Nudge: Increasing Tax Compliance of Businesses and the Self-Employed using a Natural Field Experiment


Paper by Justin E. Holz et al: “This paper uses a natural field experiment to examine the effectiveness of specific nudges on tax compliance amongst firms and the self-employed in the Dominican Republic. In collaboration with the Dominican Republic’s tax authority, we designed messages for more than 28,000 self-employed workers and over 56,000 firms. Leveraging administrative tax data, we find evidence that our nudges (increasing the salience of prison sentences or public disclosure of tax evaders) have large effects on increasing tax compliance, primarily working through the channel of decreasing claimed tax exemptions. Interestingly, we find that firms are more impacted than the self-employed, and that firm size is critically linked to nudge effectiveness: larger firms are considerably more influenced by nudges than smaller firms. We find this latter result noteworthy given the paucity of evidence showing significant behavioral impacts of nudges amongst the largest players in a market. Overall, our messages increased tax revenue by $193 million (roughly 0.23% of the Dominican Republic’s GDP in 2018), with over $100 million constituting income that the government would not have received without our field experimental nudges….(More)”.

Resetting the state for the post-covid digital age


Blog by Carlos Santiso: “The COVID-19 crisis is putting our global digital resilience to the test. It has revealed the importance of a country’s digital infrastructure as the backbone of the economy, not just as an enabler of the tech economy. Digitally advanced governments, such as Estonia, have been able to put their entire bureaucracies in remote mode in a matter of days, without major disruption. And some early evidence even suggests that their productivity increased during lockdown.

With the crisis, the costs of not going digital have largely surpassed the risks of doing so. Countries and cities lagging behind have realised the necessity to boost their digital resilience and accelerate their digital transformation. Spain, for example, adopted an ambitious plan to inject 70 billion euro into in its digital transformation over the next five years, with a Digital Spain 2025 agenda comprising 10 priorities and 48 measures. In the case of Brazil, the country was already taking steps towards the digital transformation of its public sector before the COVID-19 crisis hit. The crisis is accelerating this transformation.

The great accelerator

Long before the crisis hit, the data-driven digital revolution has been challenging governments to modernise and become more agile, open and responsive. Progress has nevertheless been uneven, hindered by a variety of factors, from political resistance to budget constraints. Going digital requires the sort of whole-of government reforms that need political muscle and long-term vision to break-up traditional data silos within bureaucracies, jealous to preserve their power. In bureaucracies, information is power. Now, information has become ubiquitous and governing data, a critical challenge.

Cutting red tape will be central to the recovery. Many governments are fast-tracking regulatory simplification and administrative streamlining to reboot hard-hit economic sectors. Digitalisation is resetting the relationship between states and citizens, a Copernican revolution for our rule-based bureaucracies….(More)“.

Citizen initiatives facing COVID-19: Due to spontaneous generation or the product of social capital in Mexico City?


UNDP: “Since the COVID-19 pandemic arrived in Mexico, multiple citizen responses[1] have emerged to tackle its impacts: digital aid platforms such as Frena la Curva (Stop the curve) and México Covid19;  groups of makers that design medical and protective equipment; Zapotec indigenous women that teach how to make hand sanitizer at home; public buses that turn into mobile markets; and much more.

There are initiatives that aid 10, 20, 3,000 or more people; initiatives that operate inside a housing unit, a municipality or across the City. Some responses have come from civil society organizations; others from collectives of practitioners or from groups of friends and family; there are even those made out of groups of strangers that the pandemic turned into partners working for the same goal….

Within the plurality of initiatives that have emerged, sometimes, seemingly in a spontaneous way, there is a common denominator: people are reacting in a collaboratively way to the crisis to solve the needs that the pandemic is leaving behind.

Different research studies connect social cohesion and social capital with the response’s capacity of a community in situations of crisis and natural disasters; and with its subsequent recovery. These concepts —derived from sociology— include aspects such as the level of union; relationships and networks; and interaction between people in a community.

This can be seen when, for example, a group of people in a neighborhood gets together to buy groceries for neighbors who have lost their incomes. Also, when a collective of professionals react to the shortages of protective equipment for health workers by creating low-cost prototypes, or when a civil organization collaborates with local authorities to bring water to households that lack access to clean water.

It would seem that a high rate of social capital and social cohesion might ease the rise of the citizen initiatives that aim to tackle the challenges that ensue from the pandemic. These do not come out of nowhere….(More)”.

Exploring Blockchain Technology for Government Transparency


Report by the World Economic Forum: “The costs to society of public-sector corruption and weak accountability are staggering. In many parts of the world, public-sector corruption is the single-largest challenge, stifling social, economic and environmental development. Often, corruption centres around a lack of transparency, inadequate record-keeping and low public accountability.

Blockchain and distributed ledger technologies, when applied thoughtfully to certain corruption-prone government processes, can potentially increase transparency and accountability in these systems, reducing the risk or prevalence of corrupt activity.

In partnership with the Inter-American Development Bank (IDB) and the Office of the Inspector General of Colombia (Procuraduría General de Colombia), the Forum has led a multistakeholder team to investigate, design and trial the use of blockchain technology for corruption-prone government processes, anchored in the use case of public procurement.

Using cryptography and distributed consensus mechanisms, blockchain provides the unique combination of permanent and tamper-evident record-keeping, transaction transparency and auditability, automated functions with “smart contracts”, and the reduction of centralized authority and information ownership within processes. These properties make blockchain a high potential emerging technology to address corruption. The project chose to focus on the public procurement process because it constitutes one of the largest sites of corruption globally, stands to benefit from these technology properties and plays a significant role in serving public interest…(More)”.

Gender gaps in urban mobility


Paper by Laetitia Gauvin, Michele Tizzoni, Simone Piaggesi, Andrew Young, Natalia Adler, Stefaan Verhulst, Leo Ferres & Ciro Cattuto in Humanities and Social Sciences Communications: “Mobile phone data have been extensively used to study urban mobility. However, studies based on gender-disaggregated large-scale data are still lacking, limiting our understanding of gendered aspects of urban mobility and our ability to design policies for gender equality. Here we study urban mobility from a gendered perspective, combining commercial and open datasets for the city of Santiago, Chile.

We analyze call detail records for a large cohort of anonymized mobile phone users and reveal a gender gap in mobility: women visit fewer unique locations than men, and distribute their time less equally among such locations. Mapping this mobility gap over administrative divisions, we observe that a wider gap is associated with lower income and lack of public and private transportation options. Our results uncover a complex interplay between gendered mobility patterns, socio-economic factors and urban affordances, calling for further research and providing insights for policymakers and urban planners….(More)”.

Monitoring of the Venezuelan exodus through Facebook’s advertising platform


Paper by Palotti et al: “Venezuela is going through the worst economical, political and social crisis in its modern history. Basic products like food or medicine are scarce and hyperinflation is combined with economic depression. This situation is creating an unprecedented refugee and migrant crisis in the region. Governments and international agencies have not been able to consistently leverage reliable information using traditional methods. Therefore, to organize and deploy any kind of humanitarian response, it is crucial to evaluate new methodologies to measure the number and location of Venezuelan refugees and migrants across Latin America.

In this paper, we propose to use Facebook’s advertising platform as an additional data source for monitoring the ongoing crisis. We estimate and validate national and sub-national numbers of refugees and migrants and break-down their socio-economic profiles to further understand the complexity of the phenomenon. Although limitations exist, we believe that the presented methodology can be of value for real-time assessment of refugee and migrant crises world-wide….(More)”.

A World With a Billion Cameras Watching You Is Just Around the Corner


Liza Lin and Newley Purnell at the Wall Street Journal: “As governments and companies invest more in security networks, hundreds of millions more surveillance cameras will be watching the world in 2021, mostly in China, according to a new report.

The report, from industry researcher IHS Markit, to be released Thursday, said the number of cameras used for surveillance would climb above 1 billion by the end of 2021. That would represent an almost 30% increase from the 770 million cameras today. China would continue to account for a little over half the total.

Fast-growing, populous nations such as India, Brazil and Indonesia would also help drive growth in the sector, the report said. The number of surveillance cameras in the U.S. would grow to 85 million by 2021, from 70 million last year, as American schools, malls and offices seek to tighten security on their premises, IHS analyst Oliver Philippou said.

Mr. Philippou said government programs to implement widespread video surveillance to monitor the public would be the biggest catalyst for the growth in China. City surveillance also was driving demand elsewhere.

“It’s a public-safety issue,” Mr. Philippou said in an interview. “There is a big focus on crime and terrorism in recent years.”

The global security-camera industry has been energized by breakthroughs in image quality and artificial intelligence. These allow better and faster facial recognition and video analytics, which governments are using to do everything from managing traffic to predicting crimes.

China leads the world in the rollout of this kind of technology. It is home to the world’s largest camera makers, with its cameras on street corners, along busy roads and in residential neighborhoods….(More)”.

Rosie the Robot: Social accountability one tweet at a time


Blogpost by Yasodara Cordova and Eduardo Vicente Goncalvese: “Every month in Brazil, the government team in charge of processing reimbursement expenses incurred by congresspeople receives more than 20,000 claims. This is a manually intensive process that is prone to error and susceptible to corruption. Under Brazilian law, this information is available to the public, making it possible to check the accuracy of this data with further scrutiny. But it’s hard to sift through so many transactions. Fortunately, Rosie, a robot built to analyze the expenses of the country’s congress members, is helping out.

Rosie was born from Operação Serenata de Amor, a flagship project we helped create with other civic hackers. We suspected that data provided by members of Congress, especially regarding work-related reimbursements, might not always be accurate. There were clear, straightforward reimbursement regulations, but we wondered how easily individuals could maneuver around them. 

Furthermore, we believed that transparency portals and the public data weren’t realizing their full potential for accountability. Citizens struggled to understand public sector jargon and make sense of the extensive volume of data. We thought data science could help make better sense of the open data  provided by the Brazilian government.

Using agile methods, specifically Domain Driven Design, a flexible and adaptive process framework for solving complex problems, our group started studying the regulations, and converting them into  software code. We did this by reverse-engineering the legal documents–understanding the reimbursement rules and brainstorming ways to circumvent them. Next, we thought about the traces this circumvention would leave in the databases and developed a way to identify these traces using the existing data. The public expenses database included the images of the receipts used to claim reimbursements and we could see evidence of expenses, such as alcohol, which weren’t allowed to be paid with public money. We named our creation, Rosie.

This method of researching the regulations to then translate them into software in an agile way is called Domain-Driven Design. Used for complex systems, this useful approach analyzes the data and the sector as an ecosystem, and then uses observations and rapid prototyping to generate and test an evolving model. This is how Rosie works. Rosie sifts through the reported data and flags specific expenses made by representatives as “suspicious.” An example could be purchases that indicate the Congress member was in two locations on the same day and time.

After finding a suspicious transaction, Rosie then automatically tweets the results to both citizens and congress members.  She invites citizens to corroborate or dismiss the suspicions, while also inviting congress members to justify themselves.

Rosie isn’t working alone. Beyond translating the law into computer code, the group also created new interfaces to help citizens check up on Rosie’s suspicions. The same information that was spread in different places in official government websites was put together in a more intuitive, indexed and machine-readable platform. This platform is called Jarbas – its name was inspired by the AI system that controls Tony Stark’s mansion in Iron Man, J.A.R.V.I.S. (which has origins in the human “Jarbas”) – and it is a website and API (application programming interface) that helps citizens more easily navigate and browse data from different sources. Together, Rosie and Jarbas helps citizens use and interpret the data to decide whether there was a misuse of public funds. So far, Rosie has tweeted 967 times. She is particularly good at detecting overpriced meals. According to an open research, made by the group, since her introduction, members of Congress have reduced spending on meals by about ten percent….(More)”.

Government at a Glance 2019


OECD Report: “Government at a Glance provides reliable, internationally comparative data on government activities and their results in OECD countries. Where possible, it also reports data for Brazil, China, Colombia, Costa Rica, India, Indonesia, the Russian Federation and South Africa. In many public governance areas, it is the only available source of data. It includes input, process, output and outcome indicators as well as contextual information for each country.

The 2019 edition includes input indicators on public finance and employment; while processes include data on institutions, budgeting practices and procedures, human resources management, regulatory government, public procurement and digital government and open data. Outcomes cover core government results (e.g. trust, inequality reduction) and indicators on access, responsiveness, quality and citizen satisfaction for the education, health and justice sectors.

Governance indicators are especially useful for monitoring and benchmarking governments’ progress in their public sector reforms.Each indicator in the publication is presented in a user-friendly format, consisting of graphs and/or charts illustrating variations across countries and over time, brief descriptive analyses highlighting the major findings conveyed by the data, and a methodological section on the definition of the indicator and any limitations in data comparability….(More)”.

Handbook of Research on Politics in the Computer Age


Book edited by Ashu M. G. Solo: “Technology and particularly the Internet have caused many changes in the realm of politics. Aspects of engineering, computer science, mathematics, or natural science can be applied to politics. Politicians and candidates use their own websites and social network profiles to get their message out. Revolutions in many countries in the Middle East and North Africa have started in large part due to social networking websites such as Facebook and Twitter. Social networking has also played a role in protests and riots in numerous countries. The mainstream media no longer has a monopoly on political commentary as anybody can set up a blog or post a video online. Now, political activists can network together online.

The Handbook of Research on Politics in the Computer Age is a pivotal reference source that serves to increase the understanding of methods for politics in the computer age, the effectiveness of these methods, and tools for analyzing these methods. The book includes research chapters on different aspects of politics with information technology, engineering, computer science, or math, from 27 researchers at 20 universities and research organizations in Belgium, Brazil, Cape Verde, Egypt, Finland, France, Hungary, Italy, Mexico, Nigeria, Norway, Portugal, and the United States of America. Highlighting topics such as online campaigning and fake news, the prospective audience includes, but is not limited to, researchers, political and public policy analysts, political scientists, engineers, computer scientists, political campaign managers and staff, politicians and their staff, political operatives, professors, students, and individuals working in the fields of politics, e-politics, e-government, new media and communication studies, and Internet marketing….(More)”.