Paper by Klaus Dingwerth in the European Journal of International Relations: “In this critical comment on the global democracy debate, I take stock of contemporary proposals for democratizing global governance. In the first part of the article, I show that, empirically, many international institutions are now evaluated in terms of their democratic credentials. At the same time, the notions of democracy that underpin such evaluations are often very formalistic. They focus on granting access to civil society organizations, making policy-relevant documents available online or establishing global parliamentary assemblies to give citizens a voice in the decision-making of international organizations. In the second part, I challenge this focus on formal procedures and argue that a normatively persuasive conception of global democracy would shift our focus to areas such as health, education and subsistence. Contrary to much contemporary thinking about global democracy, I thus defend the view that the institutions we have are sufficiently democratic. What is needed are not better procedures, but investments that help the weaker members of global society to make effective use of the democracy-relevant institutions that exist in contemporary international politics”
The rise of open data driven businesses in emerging markets
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?”
New Research Suggests Collaborative Approaches Produce Better Plans
JPER: “In a previous blog post (see, http://goo.gl/pAjyWE), we discussed how many of the most influential articles in the Journal of Planning Education and Research (and in peer publications, like JAPA) over the last two decades have focused on communicative or collaborative planning. Proponents of these approaches, most notably Judith Innes, Patsy Healey, Larry Susskind, and John Forester, developed the idea that the collaborative and communicative structures that planners use impact the quality, legitimacy, and equity of planning outcomes. In practice, communicative theory has led to participatory initiatives, such as those observed in New Orleans (post-Katrina, http://goo.gl/A5J5wk), Chattanooga (to revitalize its downtown and riverfront, http://goo.gl/zlQfKB), and in many other smaller efforts to foment wider involvement in decision making. Collaboration has also impacted regional governance structures, leading to more consensus based forms of decision making, notably CALFED (SF Bay estuary governance, http://goo.gl/EcXx9Q) and transportation planning with Metropolitan Planning Organizations (MPOs)….
Most studies testing the implementation of collaborative planning have been case studies. Previous work by authors such as Innes and Booher, has provided valuable qualitative data about collaboration in planning, but few studies have attempted to empirically test the hypothesis that consensus building and participatory practices lead to better planning outcomes.
Robert Deyle (Florida State) and Ryan Weidenman (Atkins Global) build on previous case study research by surveying officials in involved in developing long-range transportation plans in 88 U.S. MPOs about the process and outcomes of those plans. The study tests the hypothesis that collaborative processes provide better outcomes and enhanced long-term relationships in situations where “many stakeholders with different needs” have “shared interests in common resources or challenges” and where “no actor can meet his/her interests without the cooperation of many others (Innes and Booher 2010, 7; Innes and Gruber 2005, 1985–2186). Current theory posits that consensus-based collaboration requires 1) the presence of all relevant interests, 2) mutual interdependence for goal achievement, and 3) honest and authentic dialog between participants (Innes and Booher 2010, 35–36, Deyle and Weidenmann, 2014).
Figure 2 Deyle and Weidenman (2014)
By surveying planning authorities, the authors found that most of the conditions (See Figure 2, above) posited in collaborative planning literature had statistically significant impacts on planning outcomes.These included perceptions of plan quality, participant satisfaction with the plan, as well as intangible outcomes that benefit both the participants and their ongoing collaboration efforts. However, having a planning process in which all or most decisions were made by consensus did not improve outcomes. ….
Deyle, Robert E., and Ryan E. Wiedenman. “Collaborative Planning by Metropolitan Planning Organizations A Test of Causal Theory.” Journal of Planning Education and Research (2014): 0739456X14527621.
To access this article FREE until May 31 click the following links: Online, http://goo.gl/GU9inf, PDF, http://goo.gl/jehAf1.”
Civic Crowdfunding: Participatory Communities, Entrepreneurs and the Political Economy of Place
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.
- 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.
- 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.
- 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.
- 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.
- Will civic crowdfunding deter public investment or encourage it?
- Will civic crowdfunding widen wealth gaps?”
The merits of participatory budgeting
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.
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? …”
New crowdsourcing site like ‘Yelp’ for philanthropy
Vanessa Small in the Washington Post: “Billionaire investor Warren Buffett once said that there is no market test for philanthropy. Foundations with billions in assets often hand out giant grants to charity without critique. One watchdog group wants to change that.
The National Committee for Responsive Philanthropy has created a new Web site that posts public feedback about a foundation’s giving. Think Yelp for the philanthropy sector.
Along with public critiques, the new Web site, Philamplify.org, uploads a comprehensive assessment of a foundation conducted by researchers at the National Committee for Responsive Philanthropy.
The assessment includes a review of the foundation’s goals, strategies, partnerships with grantees, transparency, diversity in its board and how any investments support the mission.
The site also posts recommendations on what would make the foundation more effective in the community. The public can agree or disagree with each recommendation and then provide feedback about the grantmaker’s performance.
People who post to the site can remain anonymous.
NCRP officials hope the site will stir debate about the giving practices of foundations.
“Foundation leaders rarely get honest feedback because no one wants to get on the wrong side of a foundation,” said Lisa Ranghelli, a director at NCRP. “There’s so much we need to do as a society that we just want these philanthropic resources to be used as powerfully as possible and for everyone to feel like they have a voice in how philanthropy operates.”
With nonprofit rating sites such as Guidestar and Charity Navigator, Philamplify is just one more move to create more transparency in the nonprofit sector. But the site might be one of the first to force transparency and public commentary exclusively about the organizations that give grants.
Foundation leaders are open to the site, but say that some grantmakers already use various evaluation methods to improve their strategies.
Groups such as Grantmakers for Effective Organizations and the Center for Effective Philanthropy provide best practices for foundation giving.
The Council on Foundations, an Arlington-based membership organization of foundation groups, offers a list of tools and ideas for foundations to make their giving more effective.
“We will be paying close attention to Philamplify and new developments related to it as the project unfolds,” said Peter Panepento, senior vice president of community and knowledge at the Council on Foundations.
Currently there are three foundations up for review on the Web site: the William Penn Foundation in Philadelphia, which focuses on improving the Greater Philadelphia community; the Robert W. Woodruff Foundation in Atlanta, which gives grants in science and education; and the Lumina Foundation for Education in Indianapolis, which focuses on access to higher learning….”
Officials say Philamplify will focus on the top 100 largest foundations to start. Large foundations would include groups such as the Bill and Melinda Gates Foundation, the Robert Wood Johnson Foundation and Silicon Valley Community Foundation, and the foundations of companies such as Wal-Mart, Wells Fargo, Johnson & Johnson and GlaxoSmithKline.
Although there are concerns about the site’s ability to keep comments objective, grantees hope it will start a dialogue that has been absent in philanthropy.
Continued Progress and Plans for Open Government Data
Steve VanRoekel, and Todd Park at the White House: “One year ago today, President Obama signed an executive order that made open and machine-readable data the new default for government information. This historic step is helping to make government-held data more accessible to the public and to entrepreneurs while appropriately safeguarding sensitive information and rigorously protecting privacy.
Freely available data from the U.S. government is an important national resource, serving as fuel for entrepreneurship, innovation, scientific discovery, and economic growth. Making information about government operations more readily available and useful is also core to the promise of a more efficient and transparent government. This initiative is a key component of the President’s Management Agenda and our efforts to ensure the government is acting as an engine to expand economic growth and opportunity for all Americans. The Administration is committed to driving further progress in this area, including by designating Open Data as one of our key Cross-Agency Priority Goals.
Over the past few years, the Administration has launched a number of Open Data Initiatives aimed at scaling up open data efforts across the Health, Energy, Climate, Education, Finance, Public Safety, and Global Development sectors. The White House has also launched Project Open Data, designed to share best practices, examples, and software code to assist federal agencies with opening data. These efforts have helped unlock troves of valuable data—that taxpayers have already paid for—and are making these resources more open and accessible to innovators and the public.
Other countries are also opening up their data. In June 2013, President Obama and other G7 leaders endorsed the Open Data Charter, in which the United States committed to publish a roadmap for our nation’s approach to releasing and improving government data for the public.
Building upon the Administration’s Open Data progress, and in fulfillment of the Open Data Charter, today we are excited to release the U.S. Open Data Action Plan. The plan includes a number of exciting enhancements and new data releases planned in 2014 and 2015, including:
- Small Business Data: The Small Business Administration’s (SBA) database of small business suppliers will be enhanced so that software developers can create tools to help manufacturers more easily find qualified U.S. suppliers, ultimately reducing the transaction costs to source products and manufacture domestically.
- Smithsonian American Art Museum Collection: The Smithsonian American Art Museum’s entire digitized collection will be opened to software developers to make educational apps and tools. Today, even museum curators do not have easily accessible information about their art collections. This information will soon be available to everyone.
- FDA Adverse Drug Event Data: Each year, healthcare professionals and consumers submit millions of individual reports on drug safety to the Food and Drug Administration (FDA). These anonymous reports are a critical tool to support drug safety surveillance. Today, this data is only available through limited quarterly reports. But the Administration will soon be making these reports available in their entirety so that software developers can build tools to help pull potentially dangerous drugs off shelves faster than ever before.
We look forward to implementing the U.S. Open Data Action Plan, and to continuing to work with our partner countries in the G7 to take the open data movement global”.
On the barriers for local government releasing open data
Paper by Peter Conradie and Dr. Sunil Choenni in Government Information Quarterly: “Due to expected benefits such as citizen participation and innovation, the release of Public Sector Information as open data is getting increased attention on various levels of government. However, currently data release by governments is still novel and there is little experience and knowledge thus far about its benefits, costs and barriers. This is compounded by a lack of understanding about how internal processes influence data release. Our aim in this paper is to get a better understanding of these processes and how they influence data release, i.e., to find determinants for the release of public sector information. For this purpose, we conducted workshops, interviews, questionnaires, desk research and practice based cases in the education program of our university, involving six local public sector organizations. We find that the way data is stored, the way data is obtained and the way data is used by a department are crucial indicators for open data release. We conclude with the lessons learned based on our research findings. These findings are: we should take a nuanced approach towards data release, avoid releasing data for its own sake, and take small incremental steps to explore data release.”
Thanks-for-Ungluing launches!
Blog from Unglue.it: “Great books deserve to be read by all of us, and we ought to be supporting the people who create these books. “Thanks for Ungluing” gives readers, authors, libraries and publishers a new way to build, sustain, and nourish the books we love.
“Thanks for Ungluing” books are Creative Commons licensed and free to download. You don’t need to register or anything. But when you download, the creators can ask for your support. You can pay what you want. You can just scroll down and download the book. But when that book has become your friend, your advisor, your confidante, you’ll probably want to show your support and tell all your friends.
We have some amazing creators participating in this launch….”
Findings of the Big Data and Privacy Working Group Review
John Podesta at the White House Blog: “Over the past several days, severe storms have battered Arkansas, Oklahoma, Mississippi and other states. Dozens of people have been killed and entire neighborhoods turned to rubble and debris as tornadoes have touched down across the region. Natural disasters like these present a host of challenges for first responders. How many people are affected, injured, or dead? Where can they find food, shelter, and medical attention? What critical infrastructure might have been damaged?
Drawing on open government data sources, including Census demographics and NOAA weather data, along with their own demographic databases, Esri, a geospatial technology company, has created a real-time map showing where the twisters have been spotted and how the storm systems are moving. They have also used these data to show how many people live in the affected area, and summarize potential impacts from the storms. It’s a powerful tool for emergency services and communities. And it’s driven by big data technology.
In January, President Obama asked me to lead a wide-ranging review of “big data” and privacy—to explore how these technologies are changing our economy, our government, and our society, and to consider their implications for our personal privacy. Together with Secretary of Commerce Penny Pritzker, Secretary of Energy Ernest Moniz, the President’s Science Advisor John Holdren, the President’s Economic Advisor Jeff Zients, and other senior officials, our review sought to understand what is genuinely new and different about big data and to consider how best to encourage the potential of these technologies while minimizing risks to privacy and core American values.
Over the course of 90 days, we met with academic researchers and privacy advocates, with regulators and the technology industry, with advertisers and civil rights groups. The President’s Council of Advisors for Science and Technology conducted a parallel study of the technological trends underpinning big data. The White House Office of Science and Technology Policy jointly organized three university conferences at MIT, NYU, and U.C. Berkeley. We issued a formal Request for Information seeking public comment, and hosted a survey to generate even more public input.
Today, we presented our findings to the President. We knew better than to try to answer every question about big data in three months. But we are able to draw important conclusions and make concrete recommendations for Administration attention and policy development in a few key areas.
There are a few technological trends that bear drawing out. The declining cost of collection, storage, and processing of data, combined with new sources of data like sensors, cameras, and geospatial technologies, mean that we live in a world of near-ubiquitous data collection. All this data is being crunched at a speed that is increasingly approaching real-time, meaning that big data algorithms could soon have immediate effects on decisions being made about our lives.
The big data revolution presents incredible opportunities in virtually every sector of the economy and every corner of society.
Big data is saving lives. Infections are dangerous—even deadly—for many babies born prematurely. By collecting and analyzing millions of data points from a NICU, one study was able to identify factors, like slight increases in body temperature and heart rate, that serve as early warning signs an infection may be taking root—subtle changes that even the most experienced doctors wouldn’t have noticed on their own.
Big data is making the economy work better. Jet engines and delivery trucks now come outfitted with sensors that continuously monitor hundreds of data points and send automatic alerts when maintenance is needed. Utility companies are starting to use big data to predict periods of peak electric demand, adjusting the grid to be more efficient and potentially averting brown-outs.
Big data is making government work better and saving taxpayer dollars. The Centers for Medicare and Medicaid Services have begun using predictive analytics—a big data technique—to flag likely instances of reimbursement fraud before claims are paid. The Fraud Prevention System helps identify the highest-risk health care providers for waste, fraud, and abuse in real time and has already stopped, prevented, or identified $115 million in fraudulent payments.
But big data raises serious questions, too, about how we protect our privacy and other values in a world where data collection is increasingly ubiquitous and where analysis is conducted at speeds approaching real time. In particular, our review raised the question of whether the “notice and consent” framework, in which a user grants permission for a service to collect and use information about them, still allows us to meaningfully control our privacy as data about us is increasingly used and reused in ways that could not have been anticipated when it was collected.
Big data raises other concerns, as well. One significant finding of our review was the potential for big data analytics to lead to discriminatory outcomes and to circumvent longstanding civil rights protections in housing, employment, credit, and the consumer marketplace.
No matter how quickly technology advances, it remains within our power to ensure that we both encourage innovation and protect our values through law, policy, and the practices we encourage in the public and private sector. To that end, we make six actionable policy recommendations in our report to the President:
Advance the Consumer Privacy Bill of Rights. Consumers deserve clear, understandable, reasonable standards for how their personal information is used in the big data era. We recommend the Department of Commerce take appropriate consultative steps to seek stakeholder and public comment on what changes, if any, are needed to the Consumer Privacy Bill of Rights, first proposed by the President in 2012, and to prepare draft legislative text for consideration by stakeholders and submission by the President to Congress.
Pass National Data Breach Legislation. Big data technologies make it possible to store significantly more data, and further derive intimate insights into a person’s character, habits, preferences, and activities. That makes the potential impacts of data breaches at businesses or other organizations even more serious. A patchwork of state laws currently governs requirements for reporting data breaches. Congress should pass legislation that provides for a single national data breach standard, along the lines of the Administration’s 2011 Cybersecurity legislative proposal.
Extend Privacy Protections to non-U.S. Persons. Privacy is a worldwide value that should be reflected in how the federal government handles personally identifiable information about non-U.S. citizens. The Office of Management and Budget should work with departments and agencies to apply the Privacy Act of 1974 to non-U.S. persons where practicable, or to establish alternative privacy policies that apply appropriate and meaningful protections to personal information regardless of a person’s nationality.
Ensure Data Collected on Students in School is used for Educational Purposes. Big data and other technological innovations, including new online course platforms that provide students real time feedback, promise to transform education by personalizing learning. At the same time, the federal government must ensure educational data linked to individual students gathered in school is used for educational purposes, and protect students against their data being shared or used inappropriately.
Expand Technical Expertise to Stop Discrimination. The detailed personal profiles held about many consumers, combined with automated, algorithm-driven decision-making, could lead—intentionally or inadvertently—to discriminatory outcomes, or what some are already calling “digital redlining.” The federal government’s lead civil rights and consumer protection agencies should expand their technical expertise to be able to identify practices and outcomes facilitated by big data analytics that have a discriminatory impact on protected classes, and develop a plan for investigating and resolving violations of law.
Amend the Electronic Communications Privacy Act. The laws that govern protections afforded to our communications were written before email, the internet, and cloud computing came into wide use. Congress should amend ECPA to ensure the standard of protection for online, digital content is consistent with that afforded in the physical world—including by removing archaic distinctions between email left unread or over a certain age.
We also identify several broader areas ripe for further study, debate, and public engagement that, collectively, we hope will spark a national conversation about how to harness big data for the public good. We conclude that we must find a way to preserve our privacy values in both the domestic and international marketplace. We urgently need to build capacity in the federal government to identify and prevent new modes of discrimination that could be enabled by big data. We must ensure that law enforcement agencies using big data technologies do so responsibly, and that our fundamental privacy rights remain protected. Finally, we recognize that data is a valuable public resource, and call for continuing the Administration’s efforts to open more government data sources and make investments in research and technology.
While big data presents new challenges, it also presents immense opportunities to improve lives, the United States is perhaps better suited to lead this conversation than any other nation on earth. Our innovative spirit, technological know-how, and deep commitment to values of privacy, fairness, non-discrimination, and self-determination will help us harness the benefits of the big data revolution and encourage the free flow of information while working with our international partners to protect personal privacy. This review is but one piece of that effort, and we hope it spurs a conversation about big data across the country and around the world.
Read the Big Data Report.
See the fact sheet from today’s announcement.“