Colm Gorey at SiliconRepublic: “…not all blockchain technologies need to be about making money. A recent report issued by the European Commission discussed the possible ways it could change people’s lives….
While many democratic nations still prefer a traditional paper ballot system to an electronic voting system over fears that digital votes could be tampered with, new technologies are starting to change that opinion.
One suggestion is blockchain enabled e-voting (BEV), which would take control from a central authority and put it back in the hands of the voter.
As a person’s vote would be timestamped with details of their last vote thanks to the encrypted algorithm, an illegitimate one would be spotted more easily by a digital system, or even those within digital-savvy communities.
Despite still being a fledgling technology, BEV has already begun working on the local scale of politics within Europe, such as the internal elections of political parties in Denmark.
But perhaps at this early stage, its actual use in governmental elections at a national level will remain limited, depending on “the extent to which it can reflect the values and structure of society, politics and democracy”, according to the EU….blockchain has also been offered as an answer to sustaining the public service, particularly with transparency of where people’s taxes are going.
One governmental concept could allow blockchain to form the basis for a secure method of distributing social welfare or other state payments, without the need for divisions running expensive and time-consuming fraud investigations.
Irish start-up Aid:Tech is one noticeable example that is working with Serbia to do just that, along with its efforts to use blockchain to create a transparent system for aid to be evenly distributed in countries such as Syria.
Bank of Ireland’s innovation manager, Stephen Moran, is certainly of the opinion that blockchain in the area of identity offers greater revolutionary change than BEV.
“By identity, that can cover everything from educational records, but can also cover the idea of a national identity card,” he said in conversation with Siliconrepublic.com….
But perhaps the wildest idea within blockchain – and one that is somewhat connected to governance – is that, through an amalgamation of smart contracts, it could effectively run itself as an artificially intelligent being.
Known as decentralised autonomous organisations (DAOs), these are, in effect, entities that can run a business or any operation autonomously, allocating tasks or distributing micropayments instantly to users….
An example similar to the DAO already exists, in a crowdsourced blockchain online organisation run entirely on the open source platform Ethereum.
Last year, through the sheer will of its users, it was able to crowdfund the largest sum ever – $100m – through smart contracts alone.
If it appears confusing and unyielding, then you are not alone.
However, as was simply summed up by writer Leda Glyptis, blockchain is a force to be reckoned with, but it will be so subtle that you won’t even notice….(More)”.
Community-based app gets Londoners walking
Springwise: “Apps that measure a user’s exercise have been 10-a-penny for some years, but Go Jauntly is set to offer something brand new and leans much more into crowdsourcing than its rivals. Launched by a new start-up of nature-loving digital experts, and co-developed with Transport for London, Go Jauntly is a community-based initiative that’s as much about exploration and sharing with fellow jaunt-lovers. It also had £10,000 backing from the Ordnance Survey’s Geovation fund that helps start ups using geo-based technology. Big players are involved.
It’s directly tapped into TFL’s dynamic open data, and keeps users informed of everything from congestion to pollution. According to statistics, some 3.6 million journeys a day are made in London using cars and public transport, all of which could have been walked.
“We’re hoping that with Go Jauntly we’re creating technology for good that has a positive impact on society from a health, wellness and environmental perspective,” explains Hana Sutch, CEO and co-founder. “We wanted to start something that would get people out of the house and more active. Our team at Go Jauntly are all nature-loving city dwellers who spend too much of our time deskbound and wanted to be a bit more active.”
Go Jauntly is available now on the App Store with a variety of walks including Richmond and Regent’s Parks, plus a selection of South East London’s cemeteries. This isn’t just a London-centric innovation, anyone in the UK can download it, walk-the-walk, and share their jaunt. The company is hoping to get an Android version out by the end of the year.
Other apps that encourage walking include Norway’s Traffic Agent, and the UK’s Walkability was also designed to get users on the hoof….(More)”
A simple reward system could make crowds a whole lot wiser
There’s a problem with the wisdom of crowds. Market economies and democracies rely on the idea that whole populations know more about what is best for them than a small elite group. This knowledge is potentially so powerful it can even predict the future through stock markets, betting exchanges and special investment vehicles called prediction markets.
These markets allow people to trade “shares” in possible future outcomes, such as the winner of upcoming elections. Anyone with new information about the future has a financial incentive to spread it by buying these shares. Prediction markets now routinely inform bookmakers odds and are quoted in news coverage of elections alongside more traditional opinion polls.
But prediction markets are having a crisis of confidence in the abilities of the crowd. They have been systematically wrong about a series of high profile political decisions, including the UK general election of 2015, the Brexit referendum and the US presidential election of 2016.
We shouldn’t expect perfect accuracy on every occasion, just as we know opinion polls are often flawed. But to be wrong so consistently about such prominent events points to possible flaws in the assumptions we make about crowd intelligence. For example, people don’t always act on the information they have and so it might never become part of the crowd’s decision. The dynamics of crowds and markets might also stop people from paying attention to some sources of information at all.
However, there might be a way forward. My colleagues and I have come up with a model that overcomes this problem by giving people a incentive to seek out new sources of information, and an extra reason to share it.
An important question for markets is “where do individuals get their information?” Research shows that our opinions and activities very often match those of our peers. We also tend to look for information in the most obvious places, in line with everyone else.
To give an example, if you look around on any public transport in the City of London you’ll probably see people holding copies of the Financial Times. This is a problem because if everyone has the same information, the crowd is no smarter than a single individual. Studies show that having a diverse collection of opinions, especially including minority views, is crucial for creating a smart group.
So why do we tend to narrow the sources of our opinions? One reason is because we have an innate desire to imitate our peers, to behave in ways that are safe and acceptable within our community. But it may also be because of a rational, profit-seeking motivation.
We studied how theoretical profit-motivated people behave when faced with the types of rewards seen in market-like situations. To do this, we created a computer simulation of a prediction market, where people received a reward for making correct predictions. Rewards were larger when fewer people guessed the right answer, just like in a prediction market or a betting exchange.
The reward an individual received was a fixed amount divided by the number of other people who made a correct prediction. This was supposed to give people an incentive to look for right answers that other people wouldn’t find. But we found that people still gravitated towards a very small subset of the available information – just like London bankers with their copies of the Financial Times.
The more complex the situation was, the smaller the percentage of available information people actually used. The problem was that the more niche, unused information, though it might be useful to the group, was so rarely useful to the individual that possessed it that there was no incentive for them to seek it out….(More)”
Creating Safer Streets Through Data Science
Datakind: “Tens of thousands of people are killed or injured in traffic collisions each year. To improve road safety and combat life-threatening crashes, over 25 U.S. cities have adopted Vision Zero, an initiative born in Sweden in the 1990’s that aims to reduce traffic-related deaths and serious injuries to zero. Vision Zero is built upon the belief that crashes are predictable and preventable, though determining what kind of engineering, enforcement and educational interventions are effective can be difficult and costly for cities with limited resources.
To help the cities answer these questions, DataKind launched its first ever Labs project, led by DataKind data scientists Erin Akred, Michael Dowd, Jackie Weiser and Sina Kashuk. A DataDive was held in Seattle to help support the project. Dozens of volunteers participated in the event and helped fuel the work that was achieved, including volunteers from Microsoft and the University of Washington’s E-Science Institute, as well as many other Seattle data scientists.
The DataKind team also worked closely with local city officials and transportation experts to gain valuable insight and feedback on the project, and access a wide variety of datasets, such as information on past crashes, roadway attributes (e.g. lanes, traffic signals, and sidewalks), land use, demographic data, commuting patterns, parking violations, and existing safety intervention placements.
The cities provided information about their priority issues, expertise on their local environments, access to their data, and feedback on the models and analytic insights. Microsoft enabled the overall collaboration by providing resources, including expertise in support of the collaborative model, technical approaches, and project goals.
Below are detailed descriptions of the specific local traffic safety questions each city asked, the data science approach and outputs the DataKind team developed, and the outcomes and impacts these analyses are providing each city….(More)”
Conditional Citizens: Rethinking Children and Young People’s Participation
Book by Catherine Hartung: “This book challenges readers to recognise the conditions that underpin popular approaches to children and young people’s participation, as well as the key processes and institutions that have enabled its rise as a global force of social change in new times. The book draws on the vast international literature, as well as interviews with key practitioners, policy-makers, activists, delegates and academics from Japan, South Africa, Brazil, Nicaragua, Australia, the United Kingdom, Finland, the United States and Italy to examine the emergence of the young citizen as a key global priority in the work of the UN, NGOs, government and academia. In so doing, the book engages contemporary and interdisciplinary debates around citizenship, rights, childhood and youth to examine the complex conditions through which children and young people are governed and invited to govern themselves.
The book argues that much of what is considered ‘children and young people’s participation’ today is part of a wider neoliberal project that emphasises an ideal young citizen who is responsible and rational while simultaneously downplaying the role of systemic inequality and potentially reinforcing rather than overcoming children and young people’s subjugation. Yet the book also moves beyond mere critique and offers suggestive ways to broaden our understanding of children and young people’s participation by drawing on 15 international examples of empirical research from around the world, including the Philippines, Bangladesh, the United Kingdom, North America, Finland, South Africa, Australia and Latin America. These examples provoke practitioners, policy-makers and academics to think differently about children and young people and the possibilities for their participatory citizenship beyond that which serves the political agendas of dominant interest groups…(More)”.
Not everyone in advanced economies is using social media
Jacob Poushter at Pew: “Despite the seeming ubiquity of social media platforms like Facebook and Twitter, many in Europe, the U.S., Canada, Australia and Japan do not report regularly visiting social media sites. But majorities in all of the 14 countries surveyed say they at least use the internet.
Social media use is relatively common among people in Sweden, the Netherlands, Australia and the U.S. Around seven-in-ten report using social networking sites like Facebook and Twitter, but that still leaves a significant minority of the population in those countries (around 30%) who are non-users.
At the other end of the spectrum, in France, only 48% say they use social networking sites. That figure is even lower in Greece (46%), Japan (43%) and Germany (37%). In Germany, this means that more than half of internet users say they do not use social media.
The differences in reported social media use across the 14 countries are due in part to whether people use the internet, since low rates of internet access limit the potential social media audience. While fewer than one-in-ten Dutch (5%), Swedes (7%) and Australians (7%) don’t access the internet or own a smartphone, that figure is 40% in Greece, 33% in Hungary and 29% in Italy.
However, internet access doesn’t guarantee social media use. In Germany, for example, 85% of adults are online, but less than half of this group report using Facebook, Twitter or Xing. A similar pattern is seen in some of the other developed economies polled, including Japan and France, where social media use is low relative to overall internet penetration….(More)
Working with Change: Systems Approaches to Public Sector Challenges
Piret Tõnurist at the Observatory of Public Sector Innovation: “The draft report “Wo
rking with Change: Systems Approaches to Public Sector Challenges” is now available online. In addition to the framework that was introduced previously on Hackpad, the team working on systems thinking at the Observatory has added four in-depth case studies from Canada, Finland, Iceland and the Netherlands to the analysis. The empirical cases show that systems change in the public sector is possible; moreover, that it can work in diverse settings: child protection in the Netherlands, responding to domestic violence in Iceland, engaging with the sharing economy in Canada, and in experimental policy design in Finland. The final version of the report is expected in June 2017. (Download the draft report here).
Selected Readings on Blockchain Technology and Its Potential for Transforming Governance
By Prianka Srinivasan, Robert Montano, Andrew Young, and Stefaan G. Verhulst
The Living Library’s Selected Readings series seeks to build a knowledge base on innovative approaches for improving the effectiveness and legitimacy of governance. This curated and annotated collection of recommended works on the topic of blockchain and governance was originally published in 2017.
Introduction
In 2008, an unknown source calling itself Satoshi Nakamoto released a paper named Bitcoin: A Peer-to-Peer Electronic Cash System which introduced blockchain technology. Blockchain is a novel system that uses a distributed ledger to record transactions and ensure compliance. Blockchain technology relies on an ability to act as a vast, transparent, and secure public database.
It has since gained recognition as a tool to transform governance by creating a decentralized system to
- manage and protect identity,
- trace and track; and
- incentivize smarter social and business contracts.
These applications cast blockchain as a tool to confront certain public problems in the digital age.
The readings below represent selected readings on the applications for governance. They have been categorized by theme – Governance Applications, Identity Protection and Management, Tracing and Tracking, and Smart Contracts.
Selected Reading List
Governance Applications
- Atzori, Marcella – The Center for Blockchain Technologies (2015) Blockchain Technology and Decentralized Governance: Is the State Still Necessary? – Aims to investigate the political applications of blockchain, particularly in encouraging government decentralization by considering to what extent blockchain can be viewed as “hyper-political tools.” The paper suggests that the domination of private bodies in blockchain systems highlights the continued need for the State to remain as a central point of coordination.
- Boucher, Philip. – European Parliamentary Research Service (2017) How blockchain technology could change our lives – This report commissioned by the European Parliamentary Research Service provides a deep introduction to blockchain theory and its applications to society and political systems, providing 2 page briefings on currencies, digital content, patents, e-voting, smart contracts, supply chains, and blockchain states.
- Boucher, Philip. – Euroscientist (2017) Are Blockchain Applications Guided by Social Values? – This report by a policy analyst at the European Parliament’s Scientific foresight unit, evaluates the social and moral contours of blockchain technology, arguing that “all technologies have value and politics,” and blockchain is no exception. Calls for greater scrutiny on the possibility for blockchain to act as a truly distributed and transparent system without a “middleman.”
- Cheng, Steve; Daub, Matthew; Domeyer, Axel; and Lundqvist, Martin –McKinsey & Company (2017) Using Blockchain to Improve Data Management in the Public Sector–This essay considers the potential uses of blockchain technology for the public sector to improve the security of sensitive information collected by governments and as a way to simplify communication with specialists.
- De Filippi, Primavera; and Wright, Aaron –Paris University & Cordoza School of Law (2015) Decentralized Blockchain Technology and the Rise of Lex Cryptographia – Looks at how to regulate blockchain technology, particularly given its implications on governance and society. Argues that a new legal framework needs to emerge to take into account the applications of self-executing blockchain technology.
- Liebenau, Jonathan and Elaluf-Calderwood, Silvia Monica. – London School of Economics & Florida International University (2016) Blockchain Innovation Beyond Bitcoin and Banking. – A paper that explores the potential of blockchain technology in financial services and in broader digital applications, considers regulatory possibility and frameworks, and highlights the innovative potential of blockchain.
- Prpić, John – Lulea University of Technology (2017) Unpacking Blockchains – This short paper provides a brief introduction to the use of Blockchain outside monetary purposes, breaking down its function as a digital ledger and transaction platform.
- Stark, Josh – Ledger Labs (2016) Making Sense of Blockchain Governance Applications –This CoinDesk article discusses, in simple terms, how blockchain technology can be used to accomplish what is called “the three basic functions of governance.”
- UK Government Chief Scientific Adviser (2016) Distributed Ledger Technology: Beyond Blockchain – A report from the UK Government that investigates the use of blockchain’s “distributed leger” as a database for governments and other institutions to adopt.
Identity Protection and Management
- Baars, D.S. – University of Twente (2016) Towards Self-Sovereign Identity Using Blockchain Technology. – A study exploring self-sovereign identity – i.e. the ability of users to control their own digital identity – that led to the creation of a new architecture designed for users to manage their digital ID. Called the Decentralized Identity Management System, it is built on blockchain technology and is based on the concept of claim-based identity.
- Burger, Eric and Sullivan, Clare Linda. – Georgetown University (2016) E-Residency and Blockchain. – A case study focused on an Estonian commercial initiative that allows for citizens of any nation to become an “Estonian E-Resident.” This paper explores the legal, policy, and technical implications of the program and considers its impact on the way identity information is controlled and authenticated.
- Nathan, Oz; Pentland, Alex ‘Sandy’; and Zyskind, Guy – Security and Privacy Workshops (2015) Decentralizing Privacy: Using Blockchain to Protect Personal Data – Describes the potential of blockchain technology to create a decentralized personal data management system, making third-party personal data collection redundant.
- De Filippi, Primavera – Paris University (2016) The Interplay Between Decentralization and Privacy: The Case of Blockchain Technologies – A journal entry that weighs the radical transparency of blockchain technology against privacy concerns for its users, finding that the apparent dichotomy is not as at conflict with itself as it may first appear.
Tracing and Tracking
- Barnes, Andrew; Brake, Christopher; and Perry, Thomas – Plymouth University (2016) Digital Voting with the use of Blockchain Technology – A report investigating the potential of blockchain technology to overcome issues surrounding digital voting, from voter fraud, data security and defense against cyber attacks. Proposes a blockchain voting system that can safely and robustly manage these challenges for digital voting.
- The Economist (2015), “Blockchains The Great Chain of Being Sure About Things.” – An exploratory article that explores the potential usefulness of a blockchain-based land registry in places like Honduras and Greece, transaction registries for trading stock, and the creation of smart contracts.
- Lin, Wendy; McDonnell, Colin; and Yuan, Ben – Massachusetts Institute of Technology (2015) Blockchains and electronic health records. – Suggests the “durable transaction ledger” fundamental to blockchain has wide applicability in electronic medical record management. Also, evaluates some of the practical shortcomings in implementing the system across the US health industry.
Smart Contracts
- Iansiti, Marco; and Lakhani, Karim R. – Harvard Business Review (2017) The Truth about Blockchain – A Harvard Business Review article exploring how blockchain technology can create secure and transparent digital contracts, and what effect this may have on the economy and businesses.
- Levy, Karen E.C. – Engaging Science, Technology, and Society (2017) Book-Smart, Not Street-Smart: Blockchain-Based Smart Contracts and The Social Workings of Law. – Article exploring the concept of blockchain-based “smart contracts” – contracts that securely automate and execute obligations without a centralized authority – and discusses the tension between law, social norms, and contracts with an eye toward social equality and fairness.
Annotated Selected Reading List
Cheng, Steve, Matthias Daub, Axel Domeyer, and Martin Lundqvist. “Using blockchain to improve data management in the public sector.” McKinsey & Company. Web. 03 Apr. 2017. http://bit.ly/2nWgomw
- An essay arguing that blockchain is useful outside of financial institutions for government agencies, particularly those that store sensitive information such as birth and death dates or information about marital status, business licensing, property transfers, and criminal activity.
- Blockchain technology would maintain the security of such sensitive information while also making it easier for agencies to use and access critical public-sector information.
- Despite its potential, a significant drawback for use by government agencies is the speed with which blockchain has developed – there are no accepted standards for blockchain technologies or the networks that operate them; and because many providers are start-ups, agencies might struggle to find partners that will have lasting power. Additionally, government agencies will have to remain vigilant to ensure the security of data.
- Although best practices will take some time to develop, this piece argues that the time is now for experimentation – and that governments would be wise to include blockchain in their strategies to learn what methods work best and uncover how to best unlock the potential of blockchain.
“The Great Chain of Being Sure About Things.” The Economist. The Economist Newspaper, 31 Oct. 2015. Web. 03 Apr. 2017. http://econ.st/1M3kLnr
- This is an exploratory article written in The Economist that examines the various potential uses of blockchain technology beyond its initial focus on bitcoin:
-
- It highlights the potential of blockchain-based land registries as a way to curb human rights abuses and insecurity in much of the world (it specifically cites examples in Greece and Honduras);
- It also highlights the relative security of blockchain while noting its openness;
- It is useful as a primer for how blockchain functions as tool for a non-specialist;
- Discusses “smart contracts” (about which we have linked more research above);
- Analyzes potential risks;
- And considers the potential future unlocked by blockchain
- This article is particularly useful as a primer into the various capabilities and potential of blockchain for interested researchers who may not have a detailed knowledge of the technology or for those seeking for an introduction.
Iansiti, Marco and Lakhani, Karim R. “The Truth About Blockchain.” Harvard Business Review. N.p., 17 Feb. 2017. Web. 06 Apr. 2017. http://bit.ly/2hqo3FU
- This entry into the Harvard Business Review discusses blockchain’s ability to solve the gap between emerging technological progress and the outdated ways in which bureaucracies handle and record contracts and transactions.
- Blockchain, the authors argue, allows us to imagine a world in which “contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision”, allowing for the removal of intermediaries and facilitating direct interactions between individuals and institutions.
- The authors compare the emergence of blockchain to other technologies that have had transformative power, such as TCP/IP, and consider the speed with which they have proliferated and become mainstream.
- They argue that like TCP/IP, blockchain is likely decades away from maximizing its potential and offer frameworks for the adoption of the technology involving both single-use, localization, substitution, and transformation.
- Using these frameworks and comparisons, the authors present an investment strategy for those interested in blockchain.
IBM Global Business Services Public Sector Team. “Blockchain: The Chain of Trust and its Potential to Transform Healthcare – Our Point of View.” IBM. 2016. http://bit.ly/2oBJDLw
- This enthusiastic business report from IBM suggests that blockchain technology can be adopted by the healthcare industry to “solve” challenges healthcare professionals face. This is primarily achieved by blockchain’s ability to streamline transactions by establishing trust, accountability, and transparency.
- Structured around so-called “pain-points” in the healthcare industry, and how blockchain can confront them, the paper looks at 3 concepts and their application in the healthcare industry:
- Bit-string cryptography: Improves privacy and security concerns in healthcare, by supporting data encryption and enforces complex data permission systems. This allows healthcare professionals to share data without risking the privacy of patients. It also streamlines data management systems, saving money and improving efficiency.
- Transaction Validity: This feature promotes the use of electronic prescriptions by allowing transactional trust and authenticated data exchange. Abuse is reduced, and abusers are more easily identified.
- Smart contracts: This streamlines the procurement and contracting qualms in healthcare by reducing intermediaries. Creates a more efficient and transparent healthcare system.
- The paper goes on to signal the limitations of blockchain in certain use cases (particularly in low-value, high-volume transactions) but highlights 3 use cases where blockchain can help address a business problem in the healthcare industry.
- Important to keep in mind that, since this paper is geared toward business applications of blockchain through the lens of IBM’s investments, the problems are drafted as business/transactional problems, where blockchain primarily improves efficiency than supporting patient outcomes.
Nathan, Oz; Pentland, Alex ‘Sandy’; and Zyskind, Guy “Decentralizing Privacy: Using Blockchain to Protect Personal Data” Security and Privacy Workshops (SPW). 2015. http://bit.ly/2nPo4r6
- This technical paper suggests that anonymization and centralized systems can never provide complete security for personal data, and only blockchain technology, by creating a decentralized data management system, can overcome these privacy issues.
- The authors identify 3 common privacy concerns that blockchain technology can address:
- Data ownership: users want to own and control their personal data, and data management systems must acknowledge this.
- Data transparency and auditability: users want to know what data is been collected and for what purpose.
- Fine-grained access control: users want to be able to easily update and adapt their permission settings to control how and when third-party organizations access their data.
- The authors propose their own system designed for mobile phones which integrates blockchain technology to store data in a reliable way. The entire system uses blockchain to store data, verify users through a digital signature when they want to access data, and creates a user interface that individuals can access to view their personal data.
- Though much of the body of this paper includes technical details on the setup of this blockchain data management system, it provides a strong case for how blockchain technology can be practically implemented to assuage privacy concerns among the public. The authors highlight that by using blockchain “laws and regulations could be programmed into the blockchain itself, so that they are enforced automatically.” They ultimately conclude that using blockchain in such a data protection system such as the one they propose is easier, safer, and more accountable.
Wright, Aaron, and Primavera De Filippi. “Decentralized blockchain technology and the rise of lex cryptographia.” 2015. Available at SSRN . http://bit.ly/2oujvoG
- This paper proposes that the emergence of blockchain technology, and its various applications (decentralized currencies, self-executing contracts, smart property etc.), will necessitate the creation of a new subset of laws, termed by the authors as “Lex Cryptographia.”
- Considering the ability for blockchain to “cut out the middleman” there exist concrete challenges to law enforcement faced by the coming digital revolution brought by the technology. These encompass the very benefits of blockchain; for instance, the authors posit that the decentralized, autonomous nature of blockchain systems can act much like “a biological virus or an uncontrollable force of nature” if the system was ill-intentioned. Though this same system can regulate the problems of corruption and hierarchy associated with traditional, centralized systems, their autonomy poses an obvious obstacle for law-enforcement.
- The paper goes on to details all the possible benefits and societal impacts of various applications of blockchain, finally suggesting there exists a need to “rethink” traditional models of regulating society and individuals. They predict a rise in Lex Cryptographia “characterized by a set of rules administered through self-executing smart contracts and decentralized (and potentially autonomous) organizations.” Much of these regulations depend upon the need to supervise restrictions placed upon blockchain technology that may chill its application, for instance corporations who may choose to purposefully avoid including any blockchain-based applications in their search engines so as to stymie the adoption of this technology.
Why are America’s Tax Forms Still so Horribly Designed?
Meg Miller at Co.Design: “If there’s one issue that this divided nation can agree upon, it’s a common hatred of the federal government’s dizzying, overly complicated tax forms. Show me one person who enjoys digging up last year’s return and embarking on a byzantine quest through tax credits, deductions, exemptions, and withholdings, all for a measly return, and I’ll show you a masochist. Surely, simplifying the forms and the process—shifting the burden from individual taxpayers to the tax specialists at the Internal Revenue Service—is a bipartisan issue that we can all get behind.
Alas, it is not.
Since the government already has all of the information that we put on our tax forms, it would be completely feasible for the IRS to hand us prefilled tax forms that we could review and modify if needed—eliminating most of the headache of filing. Countries like Sweden, Finland, and Spain do it already. Yet in the U.S., some moneyed third-party tax preparers oppose government tax preparation—because, according to Propublica, it poses a risk to their business. The nonprofit news organization, which has covered this topic for years, reports that big private tax companies like H&R Block and Intuit, which owns TurboTax, have been lobbying against simplifying the filing process for nearly a decade. (For its part, Intuit denies that these assertions are factually accurate.)
Regardless, all of this means that taxpayers in the U.S. are faced with a choice: file online through a tax preparer service like TurboTax or H&R Block At Home, hire an accountant, or try to navigate this mess on your own.
In fact, each year, consulting giant PricewaterhouseCoopers ranks 189 countries by the complexity of their taxes—and this year, the U.S. came in 35th….
Another indicator of a tax process that doesn’t disproportionately put the onus on the filer is the design of the tax form itself….
For example, Finland’s tax forms are divided neatly into columns and each section is boxed off for clarity. The portions the filer needs to fill are highlighted in a faint baby blue. It’s seven pages of clear language and guiding visual signifiers.
Oh and also—it’s filled out for you, so that all you need to do is review and approve or modify. That’s true user-friendly design.
The true indicator of a simple tax form, then, isn’t the graphic design of the form—this is very clearly a UX problem. The forms I found online varied from clearly legible to impossible to understand, regardless of the country. In that way, tax policy is what would benefit most from a redesign, especially given that the users, in this case, are tax-paying citizens….(More)”
Welcome to E-Estonia, the tiny nation that’s leading Europe in digital innovation
The Conversation: “Big Brother does “just want to help” – in Estonia, at least. In this small nation of 1.3 million people, citizens have overcome fears of an Orwellian dystopia with ubiquitous surveillance to become a highly digital society.
The government took nearly all its services online in 2003 with the e-Estonia State Portal. The country’s innovative digital governance was not the result of a carefully crafted master plan, it was a pragmatic and cost-efficient response to budget limitations.
It helped that citizens trusted their politicians after Estonia regained independence in 1991. And, in turn, politicians trusted the country’s engineers, who had no commitment to legacy hardware or software systems, to build something new.
This proved to be a winning formula that can now benefit all the European countries.
The once-only principle
With its digital governance, Estonia introduced the “once-only” principle, mandating that the state is not allowed to ask citizens for the same information twice.
In other words, if you give your address or a family member’s name to the census bureau, the health insurance provider will not later ask you for it again. No department of any government agency can make citizens repeat information already stored in their database or that of some other agency….The once-only principle has been such a big success that, based on Estonia’s common-sense innovation, the EU enacted a digital Once Only Principle and Initiative early this year. It ensures that “citizens and businesses supply certain standard information only once, because public administration offices take action to internally share this data, so that no additional burden falls on citizens and businesses.”…
‘Twice-mandatory’ principle
Governments should always be brainstorming, asking themselves, for example, if one government agency needs this information, who else might benefit from it? And beyond need, what insights could we glean from this data?
Financier Vernon Hill introduced an interesting “One to Say YES, Two to Say NO” rule when founding Metro Bank UK: “It takes only one person to make a yes decision, but it requires two people to say no. If you’re going to turn away business, you need a second check for that.”
Imagine how simple and powerful a policy it would be if governments learnt this lesson. What if every bit of information collected from citizens or businesses had to be used for two purposes (at least!) or by two agencies in order to merit requesting it?
The Estonian Tax and Customs Board is, perhaps unexpectedly given the reputation of tax offices, an example of the potential for such a paradigm shift. In 2014, it launched a new strategy to address tax fraud, requiring every business transaction of over €1,000 to be declared monthly by the entities involved.
To minimise the administrative burden of this, the government introduced an application-programming interface that allows information to be automatically exchanged between the company’s accounting software and the state’s tax system.
Though there was some negative push back in the media at the beginning by companies and former president Toomas Hendrik Ilves even vetoed the initial version of the act, the system was a spectacular success. Estonia surpassed its original estimate of €30 million in reduced tax fraud by more than twice.
Latvia, Spain, Belgium, Romania, Hungary and several others have taken a similar path for controlling and detecting tax fraud. But analysing this data beyond fraud is where the real potential is hidden….(More).”