Policymakers around the world are embracing behavioural science


The Economist: “In 2013 thousands of school pupils in England received a letter from a student named Ben at the University of Bristol. The recipients had just gained good marks in their GCSEs, exams normally taken at age 16. But they attended schools where few pupils progressed to university at age 18, and those that did were likely to go to their nearest one. That suggested the schools were poor at nurturing aspiration. In his letter Ben explained that employers cared about the reputation of the university a job applicant has attended. He pointed out that top universities can be a cheaper option for poorer pupils, because they give more financial aid. He added that he had not known these facts at the recipient’s age.

The letters had the effect that was hoped for. A study published in March found that after leaving school, the students who received both Ben’s letter and another, similar one some months later were more likely to be at a prestigious university than those who received just one of the letters, and more likely again than those who received none. For each extra student in a better university, the initiative cost just £45 ($58), much less than universities’ own attempts to broaden their intake. And the approach was less heavy-handed than imposing quotas for poorer pupils, an option previous governments had considered. The education department is considering rolling out the scheme….

Some critics feared that nudges would do little good, and that their effects would fade over time. Others warned that governments were straying perilously close to mass manipulation. More recently, some of the findings on which the behavioural sciences rest have been questioned, as researchers in many fields have sought to replicate famous results, and failed.

By and large those doubts have been allayed. Even if specific results turn out to be mistaken, an experimental, iterative, data-driven approach to policymaking is gaining ground in many places, not just in dedicated units, but throughout government.

Nudging is hardly new. “In Genesis, Satan nudged, and Eve did too,” writes Cass Sunstein of Harvard University. From the middle of the 20th century psychologists such as Stanley Milgram and Philip Zimbardo showed how sensitive humans are to social pressure. Daniel Kahneman and Amos Tversky described the mental shortcuts and biases that influence decision-making. Dale Carnegie and Robert Cialdini wrote popular books on persuasion. Firms, especially in technology, retail and advertising, used behavioural science to shape brand perception and customer behaviour—and, ultimately, to sell more stuff.

But governments’ use of psychological insights to achieve policy goals was occasional and unsystematic. According to David Halpern, the boss of BIT, as far as policymakers were concerned, psychology was “the sickly sibling to economics”. That began to change after Mr Sunstein and Richard Thaler, an economist, published “Nudge”, in 2008. The book attacked the assumption of rational decision-making inherent in most economic models and showed how “choice architecture”, or context, could be changed to “nudge” people to make better choices…..

Now many governments are turning to nudges to save money and do better. In 2014 the White House opened the Social and Behavioural Sciences Team. A report that year by Mark Whitehead of Aberystwyth University counted 51 countries in which “centrally directed policy initiatives” were influenced by behavioural sciences. Non-profit organisations such as Ideas42, set up in 2008 at Harvard University, help run dozens of nudge-style trials and programmes around the world. In 2015 the World Bank set up a group that is now applying behavioural sciences in 52 poor countries. The UN is turning to nudging to help hit the “sustainable development goals”, a list of targets it has set for 2030….

Among the most effective nudges are “social” ones: those that communicate norms or draw on people’s networks. A scheme tested in Guatemala with help from the World Bank and BIT tweaked the wording of letters sent to people and firms who had failed to submit tax returns the previous year. The letters that framed non-payment as an active choice, or noted that paying up is more common than evasion, cut the number of non-payers in the following year and increased the average sum paid. And a trial involving diabetes shows that it matters to nudge at the right moment. In 2014 Hamad Medical Corporation, a health-care provider in Qatar, raised take-up rates for diabetes screening by offering it during Ramadan. That meant most Qataris were fasting, so the need to do so before the test imposed no extra burden….(More)”.

What next for digital social innovation? Realising the potential of people and technology to tackle social challenges


Matt Stokes et al at nesta: “This report, and accompanying guide, produced as part of the DSI4EU project, maps the projects and organisations using technology to tackle social challenges across Europe, and explores the barriers to the growth of digital social innovation.

Key findings

  • There are almost 2,000 organisations and over 1,000 projects involved in digital social innovation (DSI) across Europe, with the highest concentration of activity in Western and Southern Europe.
  • Despite this activity, there are relatively few examples of DSI initiatives delivering impact at scale. The growth of DSI is being held back by barriers at the system level and at the level of individual projects.
  • Projects and organisations involved in DSI are still relatively poorly connected to each other. There is a pressing need to grow strong networks within and across countries and regions to boost collaboration and knowledge-sharing.
  • The growth of DSI is being held back by lack of funding and investment across the continent, especially outside Western Europe, and structural digital skills shortages.
  • Civil society organisations and the public sector have been slow to adopt DSI, despite the opportunity it offers them to deliver better services at a lower cost, although there are emerging examples of good practice from across Europe.
  • Practitioners struggle to engage citizens and users, understand and measure the impact of their digital social innovations, and plan for growth and sustainability.

Across Europe, thousands of people, projects and organisations are using digital technologies to tackle social challenges in fields like healthcare, education, employment, democratic participation, migration and the environment. We call this phenomenon digital social innovation.

Through crowdmapping DSI across Europe, we find that there are almost 2,000 organisations and over 1,000 projects using open and collaborative technologies to tackle social challenges. We complement this analysis by piloting experimental data methods such as Twitter analysis to understand in further depth the distribution of DSI across Europe. You can explore the data on projects and organisations on digitalsocial.eu.

However, despite widespread activity, few initiatives have grown to deliver impact at scale, to be institutionalised, or to become “the new normal”.

In this research, we find that weak networks between stakeholders, insufficient funding and investment, skills shortages, and slow adoption by public sector and established civil society organisations is holding back the growth of DSI…(More)”.

The Next Great Experiment


A collection of essays from technologists and scholars about how machines are reshaping civil society” in the Atlantic:” Technology is changing the way people think about—and participate in—democratic society. What does that mean for democracy?…

We are witnessing, on a massive scale, diminishing faith in institutions of all kinds. People don’t trust the government. They don’t trust banks and other corporations. They certainly don’t trust the news media.

At the same time, we are living through a period of profound technological change. Along with the rise of bioengineering, networked devices, autonomous robots, space exploration, and machine learning, the mobile internet is recontextualizing how we relate to one another, dramatically changing the way people seek and share information, and reconfiguring how we express our will as citizens in a democratic society.

But trust is a requisite for democratic governance. And now, many are growing disillusioned with democracy itself.

Disentangling the complex forces that are driving these changes can help us better understand what ails democracies today, and potentially guide us toward compelling solutions. That’s why we asked more than two dozen people who think deeply about the intersection of technology and civics to reflect on two straightforward questions: Is technology hurting democracy? And can technology help save democracy?

We received an overwhelming response. Our contributors widely view 2017 as a moment of reckoning. They are concerned with many aspects of democratic life and put a spotlight in particular on correcting institutional failures that have contributed most to inequality of access—to education, information, and voting—as well as to ideological divisiveness and the spread of misinformation. They also offer concrete solutions for how citizens, corporations, and governmental bodies can improve the free flow of reliable information, pull one another out of ever-deepening partisan echo chambers, rebuild spaces for robust and civil discourse, and shore up the integrity of the voting process itself.

Despite the unanimous sense of urgency, the authors of these essays are cautiously optimistic, too. Everyone who participated in this series believes there is hope yet—for democracy, and for the institutions that support it. They also believe that technology can help, though it will take time and money to make it so. Democracy can still thrive in this uncertain age, they argue, but not without deliberate and immediate action from the people who believe it is worth protecting.

We’ll publish a new essay every day for the next several weeks, beginning with Shannon Vallor’s “Lessons From Isaac Asimov’s Multivac.”…(More)”

Citizen-generated data in the information ecosystem


Ssanyu Rebecca at Making All Voices Count: “The call for a data revolution by the UN Secretary General’s High Level Panel in the run up to Agenda 2030 stimulated debate and action in terms of innovative ways of generating and sharing data.

Since then, technological advances have supported increased access to data and information through initiatives such as open data platforms and SMS-based citizen reporting systems. The main driving force for these advances is for data to be timely and usable in decision-making. Among the several actors in the data field are the proponents of citizen-generated data (CGD) who assert its potential in the context of the sustainable development agenda.

Nevertheless, there is need for more evidence on the potential of CGD in influencing policy and service delivery, and contributing to the achievement of the sustainable development goals. Our study on Citizen-generated data in the information ecosystem: exploring links for sustainable development sought to obtain answers. Using case studies on the use of CGD in two different scenarios in Uganda and Kenya, Development Research and Training (DRT) and Development Initiatives (DI) collaborated to carry out this one-year study.

In Uganda, we focused on a process of providing unsolicited citizen feedback to duty- bearers and service providers in communities. This was based on the work of Community Resource Trackers, a group of volunteers supported by DRT in five post-conflict districts (Gulu, Kitgum, Pader, Katakwi and Kotido) to identify and track community resources and provide feedback on their use. These included financial and in-kind resources, allocated through central and local government, NGOs and donors.

In Kenya, we focused on a formalised process of CGD involving the Ministry of Education and National Taxpayers Association. The School Report Card (SRC) is an effort to increase parental participation in schooling. SRC is a scorecard for parents to assess the performance of their school each year in ten areas relatingto the quality of education.

What were the findings?

The two processes provided insights into the changes CGD influences in the areas of  accountability, resource allocation, service delivery and government response.

Both cases demonstrated the relevance of CGD in improving service delivery. They showed that the uptake of CGD and response by government depends significantly on the quality of relationships that CGD producers create with government, and whether the initiatives relate to existing policy priorities and interests of government.

The study revealed important effects on improving citizen behaviours. Community members who participated in CGD processes, understood their role as citizens and participated fully in development processes, with strong skills, knowledge and confidence.

The Kenya case study revealed that CGD can influence policy change if it is generated and used at large scale, and in direct linkage with a specific sector; but it also revealed that this is difficult to measure.

In Uganda we observed distinct improvements in service delivery and accessibility at the local level – which was the motivation for engaging in CGD in the first instance….(More) (Full Report)”.

Can blockchain technology help poor people around the world?


 at The Conversation: “…Most simply, a blockchain is an inexpensive and transparent way to record transactions….A blockchain system, though, inherently enforces rules about authentication and transaction security. That makes it safe and affordable for a person to store any amount of money securely and confidently. While that’s still in the future, blockchain-based systems are already helping people in the developing world in very real ways.

Sending money internationally

In 2016, emigrants working abroad sent an estimated US$442 billion to their families in their home countries. This global flow of cash is a significant factor in the financial well-being of families and societies in developing nations. But the process of sending money can be extremely expensive….Hong Kong’s blockchain-enabled Bitspark has transaction costs so low it charges a flat HK$15 for remittances of less than HK$1,200 (about $2 in U.S. currency for transactions less than $150) and 1 percent for larger amounts. Using the secure digital connections of a blockchain system lets the company bypass existing banking networks and traditional remittance systems.

Similar services helping people send money to the Philippines, Ghana, Zimbabwe, Uganda, Sierra Leone and Rwanda also charge a fraction of the current banking rates.

Insurance

Most people in the developing world lack health and life insurance, primarily because it’s so expensive compared to income. Some of that is because of high administrative costs: For every dollar of insurance premium collected, administrative costs amounted to $0.28 in Brazil, $0.54 in Costa Rica, $0.47 in Mexico and $1.80 in the Philippines. And many people who live on less than a dollar a day have neither the ability to afford any insurance, nor any company offering them services….Consuelo is a blockchain-based microinsurance service backed by Mexican mobile payments company Saldo.mx. Customers can pay small amounts for health and life insurance, with claims verified electronically and paid quickly.

Helping small businesses

Blockchain systems can also help very small businesses, which are often short of cash and also find it expensive – if not impossible – to borrow money. For instance, after delivering medicine to hospitals, small drug retailers in China often wait up to 90 days to get paid. But to stay afloat, these companies need cash. They rely on intermediaries that pay immediately, but don’t pay in full. A $100 invoice to a hospital might be worth $90 right away – and the intermediary would collect the $100 when it was finally paid….

Humanitarian aid

Blockchain technology can also improve humanitarian assistance. Fraud, corruption, discrimination and mismanagement block some money intended to reduce poverty and improve education and health care from actually helping people.In early 2017 the U.N. World Food Program launched the first stage of what it calls “Building Block,” giving food and cash assistance to needy families in Pakistan’s Sindh province. An internet-connected smartphone authenticated and recorded payments from the U.N. agency to food vendors, ensuring the recipients got help, the merchants got paid and the agency didn’t lose track of its money.

…In the future, blockchain-based projects can help people and governments in other ways, too. As many as 1.5 billion people – 20 percent of the world’s population – don’t have any documents that can verify their identity. That limits their ability to use banks, but also can bar their way when trying to access basic human rights like voting, getting health care, going to school and traveling.

Several companies are launching blockchain-powered digital identity programs that can help create and validate individuals’ identities….(More)”

The opportunity in government productivity


The McKinsey Center for Government: “Governments face a pressing question: How to do more with less? Raising productivity could save $3.5 trillion a year—or boost outcomes at no extra cost.

Higher costs and rising demand have driven rapid increases in spending on core public services such as education, healthcare, and transport—while countries must grapple with complex challenges such as population aging, economic inequality, and protracted security concerns. Government expenditure amounts to more than a third of global GDP, budgets are strained, and the world public-sector deficit is close to $4 trillion a year.

At the same time, governments are struggling to meet citizens’ rising expectations. Satisfaction with key state services, such as public transportation, schools, and healthcare facilities, is less than half that of nonstate providers, such as banks or utilities.

Governments need a way to deliver better outcomes—and a better experience for citizens—at a sustainable cost. A new paper by the McKinsey Center for Government (MCG), Government productivity: Unlocking the $3.5 trillion opportunity, suggests that goal is within reach. It shows that several countries have achieved dramatic productivity improvements in recent years—for example, by improving health, public safety, and education outcomes while maintaining or even reducing spending per capita or per student in those sectors.

If other countries were to match the improvements already demonstrated in these pockets of excellence, the world’s governments could potentially save as much as $3.5 trillion a year by 2021—equivalent to the entire global fiscal gap. Alternatively, countries could choose to keep spending constant while boosting the quality of key services. For example, if all the countries studied had improved the productivity of their healthcare systems at the rate of comparable best performers over the past 5 years, they would have added 1.4 years to the healthy life expectancy of their combined populations. That translates into 12 billion healthy life years gained, without additional per capita spending…(More)”

How Libraries Became Public


Barbara Fister at Inside HigherEd: “Of all of our cultural institutions, the public library is remarkable. There are few tax-supported services that are used by people of all ages, classes, races, and religions. I can’t think of any public institutions (except perhaps parks) that are as well-loved and widely used as libraries. Nobody has suggested that tax dollars be used for vouchers to support the development of private libraries or that we shouldn’t trust those “government” libraries. Even though the recession following the 2008 crash has led to reduced staff and hours in American libraries, threats of closure are generally met with vigorous community resistance. Visits and check-outs are up significantly over the past ten years, though it has decreased a bit in recent years. Reduced funding seems to be a factor, though the high point was 2009; library use parallels unemployment figures – low unemployment often means fewer people use public libraries. A for-profit company that claims to run libraries more cheaply than local governments currently has contracts to manage only sixteen of over 9,000 public library systems in the U.S. Few public institutions have been so impervious to privatization.

I find it intriguing that the American public library grew out of an era that has many similarities to this one – the last quarter of the 19th century, when large corporations owned by the super-rich had gained the power to shape society and fundamentally change the lives of ordinary people. It was also a time of new communication technologies, novel industrial processes, and data-driven management methods that treated workers as interchangeable cogs in a Tayloristic, efficient machine. Stuff got cheaper and more abundant, but wages fell and employment was precarious, with mass layoffs common. The financial sector was behaving badly, too, leading to cyclical panics and depressions. The gap between rich and poor grew, with unprecedented levels of wealth concentrated among a tiny percentage of the population. It all sounds strangely familiar.

The changes weren’t all economic. A wave of immigration, largely from southern and eastern Europe and from the Far East before the Chinese Exclusion Act of 1882, changed national demographics. Teddy Roosevelt warned of “race suicide,” urging white protestant women to reproduce at the same rate as other groups to make America Anglo-Saxon again. The hard-won rights of emancipated African Americans were systematically rolled back through voter suppression, widespread acts of terror, and the enactment of Jim Crow laws. Indigenous people faced broken treaties, seized land, military suppression, and forced assimilation.

How interesting that it was during this turbulent time of change when the grand idea of the American public library – a publicly-supported cultural institution that would be open to all members of the community for their enjoyment and education – emerged….(More)”.

Openness as social praxis


Matthew Longshore Smith and Ruhiya Seward in First Monday: “Since the early 2000s, there has been an explosion in the usage of the term open, arguably stemming from the advent of networked technologies — including the Internet and mobile technologies. ‘Openness’ seems to be everywhere, and takes many forms: from open knowledge, open education, open data and open science, to open Internet, open medical records systems and open innovation. These applications of openness are having a profound, and sometimes transformative, effect on social, political and economic life.

This explosion of the use of the term has led to multiple interpretations, ambiguities, and even misunderstandings, not to mention countless debates and disagreements over precise definitions. The paper “Fifty shades of open” by Pomerantz and Peek (2016) highlighted the increasing ambiguity and even confusion surrounding this term. This article builds on Pomerantz and Peek’s attempt to disambiguate the term by offering an alternative understanding to openness — that of social praxis. More specifically, our framing can be broken down into three social processes: open production, open distribution, and open consumption. Each process shares two traits that make them open: you don’t have to pay (free price), and anyone can participate (non-discrimination) in these processes.

We argue that conceptualizing openness as social praxis offers several benefits. First, it provides a way out of a variety of problems that result from ambiguities and misunderstandings that emerge from the current multitude of uses of openness. Second, it provides a contextually sensitive understanding of openness that allows space for the many different ways openness is experienced — often very different from the way that more formal definitions conceptualize it. Third, it points us towards an approach to developing practice-specific theory that we believe helps us build generalizable knowledge on what works (or not), for whom, and in what contexts….(More)”.

Behavioural Insights and Public Policy


OECD Report: ““Behavioural insights”, or insights derived from the behavioural and social sciences, including decision making, psychology, cognitive science, neuroscience, organisational and group behaviour, are being applied by governments with the aim of making public policies work better. As their use has become more widespread, however, questions are being raised about their effectiveness as well as their philosophical underpinnings. This report discusses the use and reach of behavioural insights, drawing on a comprehensive collection of over 100 applications across the world and policy sectors, including consumer protection, education, energy, environment, finance, health and safety, labour market policies, public service delivery, taxes and telecommunications. It suggests ways to ensure that this experimental approach can be successfully and sustainably used as a public policy tool…(More)”.

Nudging people to make good choices can backfire


Bruce Bower in ScienceNews: “Nudges are a growth industry. Inspired by a popular line of psychological research and introduced in a best-selling book a decade ago, these inexpensive behavior changers are currently on a roll.

Policy makers throughout the world, guided by behavioral scientists, are devising ways to steer people toward decisions deemed to be in their best interests. These simple interventions don’t force, teach or openly encourage anyone to do anything. Instead, they nudge, exploiting for good — at least from the policy makers’ perspective — mental tendencies that can sometimes lead us astray.

But new research suggests that low-cost nudges aimed at helping the masses have drawbacks. Even simple interventions that work at first can lead to unintended complications, creating headaches for nudgers and nudgees alike…

Promising results of dozens of nudge initiatives appear in two government reports issued last September. One came from the White House, which released the second annual report of its Social and Behavioral Sciences Team. The other came from the United Kingdom’s Behavioural Insights Team. Created by the British government in 2010, the U.K. group is often referred to as the Nudge Unit.

In a September 20, 2016, Bloomberg View column, Sunstein said the new reports show that nudges work, but often increase by only a few percentage points the number of people who, say, receive government benefits or comply with tax laws. He called on choice architects to tackle bigger challenges, such as finding ways to nudge people out of poverty or into higher education.

Missing from Sunstein’s comments and from the government reports, however, was any mention of a growing conviction among some researchers that well-intentioned nudges can have negative as well as positive effects. Accepting automatic enrollment in a company’s savings plan, for example, can later lead to regret among people who change jobs frequently or who realize too late that a default savings rate was set too low for their retirement needs. E-mail reminders to donate to a charity may work at first, but annoy recipients into unsubscribing from the donor list.

“I don’t want to get rid of nudges, but we’ve been a bit too optimistic in applying them to public policy,” says behavioral economist Mette Trier Damgaard of Aarhus University in Denmark.

Nudges, like medications for physical ailments, require careful evaluation of intended and unintended effects before being approved, she says. Policy makers need to know when and with whom an intervention works well enough to justify its side effects.

Default downer

That warning rings especially true for what is considered a shining star in the nudge universe — automatic enrollment of employees in retirement savings plans. The plans, called defaults, take effect unless workers decline to participate….

But little is known about whether automatic enrollees are better or worse off as time passes and their personal situations change, says Harvard behavioral economist Brigitte Madrian. She coauthored the 2001 paper on the power of default savings plans.

Although automatic plans increase savings for those who otherwise would have squirreled away little or nothing, others may lose money because they would have contributed more to a self-directed retirement account, Madrian says. In some cases, having an automatic savings account may encourage irresponsible spending or early withdrawals of retirement money (with penalties) to cover debts. Such possibilities are plausible but have gone unstudied.

In line with Madrian’s concerns, mathematical models developed by finance professor Bruce Carlin of the University of California, Los Angeles and colleagues suggest that people who default into retirement plans learn less about money matters, and share less financial information with family and friends, than those who join plans that require active investment choices.

Opt-out savings programs “have been oversimplified to the public and are being sold as a great way to change behavior without addressing their complexities,” Madrian says. Research needs to address how well these plans mesh with individuals’ personalities and decision-making styles, she recommends….

Researchers need to determine how defaults and other nudges instigate behavior changes before unleashing them on the public, says philosopher of science Till Grüne-Yanoff of the Royal Institute of Technology in Stockholm….

Sometimes well-intentioned, up-front attempts to get people to do what seems right come back to bite nudgers on the bottom line.

Consider e-mail prompts and reminders. ….A case in point is a study submitted for publication by Damgaard and behavioral economist Christina Gravert of the University of Gothenburg in Sweden. E-mailed donation reminders sent to people who had contributed to a Danish anti-poverty charity increased the number of donations in the short term, but also triggered an upturn in the number of people unsubscribing from the list.

People’s annoyance at receiving reminders perceived as too frequent or pushy cost the charity money over the long haul, Damgaard holds. Losses of list subscribers more than offset the financial gains from the temporary uptick in donations, she and Gravert conclude.

“Researchers have tended to overlook the hidden costs of nudging,” Damgaard says….(More)”