The Practice and Potential of Blockchain Technologies for Extractive Sector Governance

Curated on Posted on by Stefaan Verhulst

Press Release: “Important questions are being raised about whether blockchain technologies can contribute to solving governance challenges in the mining, oil and gas sectors. This report seeks to begin addressing such questions, with particular reference to current blockchain applications and transparency efforts in the extractive sector.

It summarizes analysis by The Governance Lab (GovLab) at the New York University Tandon School of Engineering and the Natural Resource Governance Institute (NRGI). The study focused in particular on three activity areas: licensing and contracting, corporate registers and beneficial ownership, and commodity trading and supply chains.

Key messages:

  • Blockchain technology could potentially reduce transparency challenges and information asymmetries in certain parts of the extractives value chain. However, stakeholders considering blockchain technologies need a more nuanced understanding of problem definition, value proposition and blockchain attributes to ensure that such interventions could positively impact extractive sector governance.
  • The blockchain field currently lacks design principles, governance best practices, and open data standards that could ensure that the technology helps advance transparency and good governance in the extractive sector. Our analysis offers an initial set of design principles that could act as a starting point for a more targeted approach to the use of blockchain in improving extractives governance.
  • Most blockchain projects are preliminary concepts or pilots, with little demonstration of how to effectively scale up successful experiments, especially in countries with limited resources.
  • Meaningful impact evaluations or peer-reviewed publications that assess impact, including on the implications of blockchain’s emissions footprint, are still lacking. More broadly, a shared research agenda around blockchain could help address questions that are particularly ripe for future research.
  • Transition to a blockchain-enabled system is likely to be smoother and faster in cases when digital records are already available than when a government or company attempts to move from an analog system to one leveraging blockchain.
  • Companies or governments using blockchain are more likely to implement it successfully when they have a firm grasp of the technology, its strengths, its weaknesses, and how it fits into the broader governance landscape. But often these actors are often overly reliant on and empowering of blockchain technology vendors and startups, which can lead to “lock-in”, whereby the market gets stuck with an approach even though market participants may be better off with an alternative.
  • The role played by intermediaries like financial institutions or registrars can determine the success or failure of blockchain applications….(More)”.

Rethinking citizen engagement for an inclusive energy transition

Curated on Posted on by Stefaan Verhulst

Urban Futures Studio: “In July 2020, we published our new essay ‘What, How and Who? Designing inclusive interactions in the energy transition’ (Bronsvoort, Hoffman and Hajer, 2020). In this essay, we argue that how the interactions between citizens and governments are shaped and enacted, has a large influence on who gets involved and to what extend people feel heard. To apply this approach to cases, we distinguish between three dimensions of interaction:

  • What (the defined object or issue at hand)
  • How (the setting and staging of the interaction)
  • Who (the target groups and protagonists of the process)

Focusing on the issue of form, we argue that processes for interaction between citizens and governments should be designed in a way that is more future oriented, organized over the long term, in closer proximity to citizens and with attention to the powerful role of ‘in-betweeners’ and ‘in-between’ places such as community houses, where people can meet to deliberate on the wide range of possible futures for their neighbourhood. 

Towards a multiplicity of future visions for sustainable cities
The energy transition has major consequences for the way we live, work, move and consume. For such complex transitions, governments need to engage and collaborate with citizens and other stakeholders. Their engagement enriches existing visions on future neighbourhoods, inform local policies and stimulate change. But how do you shape and organize such a participatory process? While governments use a wide range of public participation methods, many researchers have emphasized the limitations of many of these conventional methods with regard to the inclusion of diverse groups of citizens and in bridging discrepancies between government approaches and people’s lived experiences.

Rethinking citizen engagement for an inclusive energy transition
To help rethink citizen engagement, the Urban Futures Studio investigates existing and new approaches to citizen engagement and how they are practised by governments and societal actors. Following our essay research, our next project on citizen engagement includes a study on its relation to experimentation as a novel mode of governance. The goal of this research is to show insights into how citizen engagement manifests itself in the context of experimental governance on the neighbourhood level. By investigating the interactions between citizens, governments and other stakeholders in different types of participatory projects, we aim to gain a better understanding of how citizens are engaged and included in energy transition experiments and how we can improve its level of inclusion.

We use a relational approach of citizen engagement, by which we view participatory processes as collective practices that both shape and are shaped by their ‘matter of concern’, their public and their setting and staging. This view places emphasis on the form and conditions under which the interaction takes place. For example, the initiative of Places of Hope showed that engagement can be organised in diverse ways and can create new collectives….(More)”.

Do nudgers need budging? A comparative analysis of European smart meter implementation

Curated on Posted on by Stefaan Verhulst

Paper by Sarah Giest: “Nudging is seen to complement or replace existing policy tools by altering people’s choice architectures towards behaviors that align with government aims, but has fallen short in meeting those targets. Crucially, governments do not nudge citizens directly, but need private agents to nudge their consumers. Based on this notion, the paper takes on an institutional approach towards nudging. Rather than looking at the relationship between nudger and nudgee, the research analyses the regulatory and market structures that affect nudge implementation by private actors, captured by the ‘budge’ idea. Focusing on the European energy policy domain, the paper analyses the contextual factors of green nudges that are initiated by Member States, and implemented by energy companies. The findings show that in the smart meter context, there are regulatory measures that affect implementation of smart meters and that government has a central role to ‘budge’, due to the dependence on private agents….(More)”.

Open data for electricity modeling: Legal aspects

Curated on Posted on by Stefaan Verhulst

Paper by Lion Hirth: “Power system modeling is data intensive. In Europe, electricity system data is often available from sources such as statistical offices or system operators. However, it is often unclear if these data can be legally used for modeling, and in particular if such use infringes intellectual property rights. This article reviews the legal status of power system data, both as a guide for data users and for data publishers.

It is based on interpretation of the law, a review of the secondary literature, an analysis of the licenses used by major data distributors, expert interviews, and a series of workshops. A core finding is that in many cases the legality of current practices is doubtful: in fact, it seems likely that modelers infringe intellectual property rights quite regularly. This is true for industry analysis but also academic researchers. A straightforward solution is open data – the idea that data can be freely used, modified, and shared by anyone for any purpose. To be open, it is not sufficient for data to be accessible free of cost, it must also come with an open data license, the most common types of which are also reviewed in this paper….(More)”.

Governing Smart Data in the Public Interest: Lessons from Ontario’s Smart Metering Entity

Curated on Posted on by Stefaan Verhulst

Paper by Teresa Scassa and Merlynda Vilain: “The collection of vast quantities of personal data from embedded sensors is increasingly an aspect of urban life. This type of data collection is a feature of so-called smart cities, and it raises important questions about data governance. This is particularly the case where the data may be made available for reuse by others and for a variety of purposes.

This paper focuses on the governance of data captured through “smart” technologies and uses Ontario’s smart metering program as a case study. Ontario rolled out mandatory smart metering for electrical consumption in the early 2000s largely to meet energy conservation goals. In doing so, it designed a centralized data governance system overseen by the Smart Metering Entity to manage smart meter data and to protect consumer privacy. As interest in access to the data grew among third parties, and as new potential applications for the data emerged, the regulator sought to develop a model for data sharing that would protect privacy in relation to these new uses and that would avoid uses that might harm the public interest…(More)”.

The 100 Questions Initiative: Sourcing 100 questions on key societal challenges that can be answered by data insights

Curated on Posted on by Stefaan Verhulst
100Q Screenshot

Press Release: “The Governance Lab at the NYU Tandon School of Engineering announced the launch of the 100 Questions Initiative — an effort to identify the most important societal questions whose answers can be found in data and data science if the power of data collaboratives is harnessed.

The initiative, launched with initial support from Schmidt Futures, seeks to address challenges on numerous topics, including migration, climate change, poverty, and the future of work.

For each of these areas and more, the initiative will seek to identify questions that could help unlock the potential of data and data science with the broader goal of fostering positive social, environmental, and economic transformation. These questions will be sourced by leveraging “bilinguals” — practitioners across disciplines from all over the world who possess both domain knowledge and data science expertise.

The 100 Questions Initiative starts by identifying 10 key questions related to migration. These include questions related to the geographies of migration, migrant well-being, enforcement and security, and the vulnerabilities of displaced people. This inaugural effort involves partnerships with the International Organization for Migration (IOM) and the European Commission, both of which will provide subject-matter expertise and facilitation support within the framework of the Big Data for Migration Alliance (BD4M).

“While there have been tremendous efforts to gather and analyze data relevant to many of the world’s most pressing challenges, as a society, we have not taken the time to ensure we’re asking the right questions to unlock the true potential of data to help address these challenges,” said Stefaan Verhulst, co-founder and chief research and development officer of The GovLab. “Unlike other efforts focused on data supply or data science expertise, this project seeks to radically improve the set of questions that, if answered, could transform the way we solve 21st century problems.”

In addition to identifying key questions, the 100 Questions Initiative will also focus on creating new data collaboratives. Data collaboratives are an emerging form of public-private partnership that help unlock the public interest value of previously siloed data. The GovLab has conducted significant research in the value of data collaboration, identifying that inter-sectoral collaboration can both increase access to information (e.g., the vast stores of data held by private companies) as well as unleash the potential of that information to serve the public good….(More)”.

How data collected from mobile phones can help electricity planning

Curated on Posted on by Stefaan Verhulst

Article by Eduardo Alejandro Martínez Ceseña, Joseph Mutale, Mathaios Panteli, and Pierluigi Mancarella in The Conversation: “Access to reliable and affordable electricity brings many benefits. It supports the growth of small businesses, allows students to study at night and protects health by offering an alternative cooking fuel to coal or wood.

Great efforts have been made to increase electrification in Africa, but rates remain low. In sub-Saharan Africa only 42% of urban areas have access to electricity, just 22% in rural areas.

This is mainly because there’s not enough sustained investment in electricity infrastructure, many systems can’t reliably support energy consumption or the price of electricity is too high.

Innovation is often seen as the way forward. For instance, cheaper and cleaner technologies, like solar storage systems deployed through mini grids, can offer a more affordable and reliable option. But, on their own, these solutions aren’t enough.

To design the best systems, planners must know where on- or off-grid systems should be placed, how big they need to be and what type of energy should be used for the most effective impact.

The problem is reliable data – like village size and energy demand – needed for rural energy planning is scarce or non-existent. Some can be estimated from records of human activities – like farming or access to schools and hospitals – which can show energy needs. But many developing countries have to rely on human activity data from incomplete and poorly maintained national census. This leads to inefficient planning.

In our research we found that data from mobile phones offer a solution. They provide a new source of information about what people are doing and where they’re located.

In sub-Saharan Africa, there are more people with mobile phones than access to electricity, as people are willing to commute to get a signal and/or charge their phones.

This means that there’s an abundance of data – that’s constantly updated and available even in areas that haven’t been electrified – that could be used to optimise electrification planning….

We were able to use mobile data to develop a countrywide electrification strategy for Senegal. Although Senegal has one of the highest access to electricity rates in sub-Saharan Africa, just 38% of people in rural areas have access.

By using mobile data we were able to identify the approximate size of rural villages and access to education and health facilities. This information was then used to size and cost different electrification options and select the most economic one for each zone – whether villages should be connected to the grids, or where off-grid systems – like solar battery systems – were a better option.

To collect the data we randomly selected mobile phone data from 450,000 users from Senegal’s main telecomms provider, Sonatel, to understand exactly how information from mobile phones could be used. This includes the location of user and the characteristics of the place they live….(More)”

Can transparency make extractive industries more accountable?

Curated on Posted on by Stefaan Verhulst

Blog by John Gaventa at IDS: “Over the last two decades great strides have been made in terms of holding extractive industries accountable.  As demonstrated at the Global Assembly of Publish What You Pay (PWYP), which I attended recently in Dakar, Senegal, more information than ever about revenue flows to governments from the oil gas and mining industries is now publicly available.  But new research suggests that such information disclosure, while important, is by itself not enough to hold companies to account, and address corruption.

… a recent study in Mozambique by researchers Nicholas Aworti and Adriano Adriano Nuvunga questions this assumption.  Supported by the Action for Empowerment and Accountability (A4EA) Research Programme, the research explored why greater transparency of information has not necessarily led to greater social and political action for accountability.

Like many countries in Africa, Mozambique is experiencing massive outside investments in recently discovered natural resources, including rich deposits of natural gas and oil, as well as coal and other minerals.  Over the last decade, NGOs like the Centre for Public Integrity, who helped facilitate the study, have done brave and often pioneering work to elicit information on the extractive industry, and to publish it in hard-hitting reports, widely reported in the press, and discussed at high-level stakeholder meetings.

Yet, as Aworti and Nuvunga summarise in a policy brief based on their research, ‘neither these numerous investigative reports nor the EITI validation reports have inspired social and political action such as public protest or state prosecution.’   Corruption continues, and despite the newfound mineral wealth, the country remains one of the poorest in Africa.

The authors ask, ‘If information disclosure has not been enough to galvanise citizen and institutional action, what could be the reason?’ The research found 18 other factors that affect whether information leads to action, including the quality of the information and how it is disseminated, the degree of citizen empowerment, the nature of the political regime, and the role of external donors in insisting on accountability….

The research and the challenges highlighted by the Mozambique case point to the need for new approaches.   At the Global Assembly in Dakar several hundred of PYWP’s more than 700 members from 45 countries gathered to discuss and to approve the organisation’s next strategic plan. Among other points, the plan calls for going beyond transparency –  to more intentionally use information to foster and promote citizen action,  strengthen  grassroots participation and voice on mining issues, and  improve links with other related civil society movements working on gender, climate and tax justice in the extractives field.

Coming at a time where increasing push back and repression threaten the space for citizens to speak truth to power, this is a bold call.  I chaired two sessions with PWYP activists who had been beaten, jailed, threatened or exiled for challenging mining companies, and 70 per cent of the delegates at the conference said their work had been affected by this more repressive environment….(More)”.

Seven design principles for using blockchain for social impact

Curated on Posted on by Stefaan Verhulst

Stefaan Verhulst at Apolitical: “2018 will probably be remembered as the bust of the blockchain hype. Yet even as crypto currencies continue to sink in value and popular interest, the potential of using blockchain technologies to achieve social ends remains important to consider but poorly understood.

In 2019, business will continue to explore blockchain for sectors as disparate as finance, agriculture, logistics and healthcare. Policymakers and social innovators should also leverage 2019 to become more sophisticated about blockchain’s real promise, limitations  and current practice.

In a recent report I prepared with Andrew Young, with the support of the Rockefeller Foundation, we looked at the potential risks and challenges of using blockchain for social change — or “Blockchan.ge.” A number of implementations and platforms are already demonstrating potential social impact.

The technology is now being used to address issues as varied as homelessness in New York City, the Rohingya crisis in Myanmar and government corruption around the world.

In an illustration of the breadth of current experimentation, Stanford’s Center for Social Innovation recently analysed and mapped nearly 200 organisations and projects trying to create positive social change using blockchain. Likewise, the GovLab is developing a mapping of blockchange implementations across regions and topic areas; it currently contains 60 entries.

All these examples provide impressive — and hopeful — proof of concept. Yet despite the very clear potential of blockchain, there has been little systematic analysis. For what types of social impact is it best suited? Under what conditions is it most likely to lead to real social change? What challenges does blockchain face, what risks does it pose and how should these be confronted and mitigated?

These are just some of the questions our report, which builds its analysis on 10 case studies assembled through original research, seeks to address.

While the report is focused on identity management, it contains a number of lessons and insights that are applicable more generally to the subject of blockchange.

In particular, it contains seven design principles that can guide individuals or organisations considering the use of blockchain for social impact. We call these the Genesis principles, and they are outlined at the end of this article…(More)”.

Whither large International Non-Governmental Organisations?

Curated on Posted on by Stefaan Verhulst

Working Paper by Penny Lawrence: “Large international non-government organisations (INGOs) seem to be in an existential crisis in their role in the fight for social justice. Many, such as Save the Children or Oxfam, have become big well-known brands with compliance expectations similar to big businesses. Yet the public still imagine them to be run by volunteers. Their context is changing so fast, and so unpredictably, that they are struggling to keep up. It is a time of extraordinary disruptive change including the digital transformation, changing societal norms and engagement expectations and political upheaval and challenge. Fifteen years ago the political centre-ground in the UK seemed firm, with expanding space for civil society organisations to operate. Space for civil society voice now seems more threatened and challenged (Kenny 2015).

There has been a decline in trust in large charities in particular, partly as a result of their own complacency, acting as if the argument for aid has been won. Partly as a result of questioned practices e.g. the fundraising scandal of 2016/17 (where repeated mail drops to individuals requesting funds caused public backlash) and the safeguarding scandal of 2018 (where historic cases of sexual abuse by INGO staff, including Oxfam, were revisited by media in the wake of the #me too movement). This is also partly as a result of political challenge on INGOs’ advocacy and influencing role, their bias and their voice:

‘Some government ministers regard the charity sector with suspicion because it largely employs senior people with a left-wing perspective on life and because of other unfair criticisms of government it means there is regularly a tension between big charities and the conservative party’ Richard Wilson (Former Minister for Civil Society) 2018

On the other hand many feel that charities who have taken significant contracts to deliver services for the state have forfeited their independent voice and lost their way:

‘The voluntary sector risks declining over the next ten years into a mere instrument of a shrunken state, voiceless and toothless, unless it seizes the agenda and creates its own vision.’ Professor Nicholas Deakin 2014

It’s a tough context to be leading an INGO through, but INGOs have appeared ill prepared and slow to respond to the threats and opportunities, not realising how much they may need to change to respond to the fast evolving context and expectations. Large INGOs spend most of their energy exploiting present grant and contract business models, rather than exploring the opportunities to overcome poverty offered by such disruptive change. Their size and structures do not enable agility. They are too internally focused and self-referencing at a time when the world around them is changing so fast, and when political sands have shifted. Focussing on the internationalisation of structures and decision-making means large INGOs are ‘defeated by our own complexity’, as one INGO interviewee put it.

The purpose of this paper is to stimulate thinking amongst large INGOs at a time of such extraordinary disruptive change. The paper explores options for large INGOs, in terms of function and structure. After outlining large INGOs’ history, changing context, value and current thinking, it explores learning from others outside the development sector before suggesting the emerging options. It reflects on what’s encouraging and what’s stopping change and offers possible choices and pathways forwards….(More)”.