Is the Government More Entrepreneurial Than You Think?


 Freakonomics Radio (Podcast): We all know the standard story: our economy would be more dynamic if only the government would get out of the way. The economist Mariana Mazzucato says we’ve got that story backward. She argues that the government, by funding so much early-stage research, is hugely responsible for big successes in tech, pharma, energy, and more. But the government also does a terrible job in claiming credit — and, more important, getting a return on its investment….

Quote:

MAZZUCATO: “…And I’ve been thinking about this especially around the big data and the kind of new questions around privacy with Facebook, etc. Instead of having a situation where all the data basically gets captured, which is citizens’ data, by companies which then, in some way, we have to pay into in terms of accessing these great new services — whether they’re free or not, we’re still indirectly paying. We should have the data in some sort of public repository because it’s citizens’ data. The technology itself was funded by the citizens. What would Uber be without GPS, publicly financed? What would Google be without the Internet, publicly financed? So, the tech was financed from the state, the citizens; it’s their data. Why not completely reverse the current relationship and have that data in a public repository which companies actually have to pay into to get access to it under certain strict conditions which could be set by an independent advisory council?… (More)”

How Smart Should a City Be? Toronto Is Finding Out


Laura Bliss at CityLab: “A data-driven “neighborhood of the future” masterminded by a Google corporate sibling, the Quayside project could be a milestone in digital-age city-building. But after a year of scandal in Silicon Valley, questions about privacy and security remain…

Quayside was billed as “the world’s first neighborhood built from the internet up,” according to Sidewalk Labs’ vision plan, which won the RFP to develop this waterfront parcel. The startup’s pitch married “digital infrastructure” with an utopian promise: to make life easier, cheaper, and happier for Torontonians.

Everything from pedestrian traffic and energy use to the fill-height of a public trash bin and the occupancy of an apartment building could be counted, geo-tagged, and put to use by a wifi-connected “digital layer” undergirding the neighborhood’s physical elements. It would sense movement, gather data, and send information back to a centralized map of the neighborhood. “With heightened ability to measure the neighborhood comes better ways to manage it,” stated the winning document. “Sidewalk expects Quayside to become the most measurable community in the world.”

“Smart cities are largely an invention of the private sector—an effort to create a market within government,” Wylie wrote in Canada’s Globe and Mail newspaper in December 2017. “The business opportunities are clear. The risks inherent to residents, less so.” A month later, at a Toronto City Council meeting, Wylie gave a deputation asking officials to “ensure that the data and data infrastructure of this project are the property of the city of Toronto and its residents.”

In this case, the unwary Trojans would be Waterfront Toronto, the nonprofit corporation appointed by three levels of Canadian government to own, manage, and build on the Port Lands, 800 largely undeveloped acres between downtown and Lake Ontario. When Waterfront Toronto gave Sidewalk Labs a green light for Quayside in October, the startup committed $50 million to a one-year consultation, which was recently extended by several months. The plan is to submit a final “Master Innovation and Development Plan” by the end of this year.

That somewhat Orwellian vision of city management had privacy advocates and academics concerned from the the start. Bianca Wylie, the co-founder of the technology advocacy group Tech Reset Canada, has been perhaps the most outspoken of the project’s local critics. For the last year, she’s spoken up at public fora, written pointed op-edsand Medium posts, and warned city officials of what she sees as the “Trojan horse” of smart city marketing: private companies that stride into town promising better urban governance, but are really there to sell software and monetize citizen data.

But there has been no guarantee about who would own the data at the core of its proposal—much of which would ostensibly be gathered in public space. Also unresolved is the question of whether this data could be sold. With little transparency about what that means from the company or its partner, some Torontonians are wondering what Waterfront Toronto—and by extension, the public—is giving away….(More)”.

Odd Numbers: Algorithms alone can’t meaningfully hold other algorithms accountable


Frank Pasquale at Real Life Magazine: “Algorithms increasingly govern our social world, transforming data into scores or rankings that decide who gets credit, jobs, dates, policing, and much more. The field of “algorithmic accountability” has arisen to highlight the problems with such methods of classifying people, and it has great promise: Cutting-edge work in critical algorithm studies applies social theory to current events; law and policy experts seem to publish new articles daily on how artificial intelligence shapes our lives, and a growing community of researchers has developed a field known as “Fairness, Accuracy, and Transparency in Machine Learning.”

The social scientists, attorneys, and computer scientists promoting algorithmic accountability aspire to advance knowledge and promote justice. But what should such “accountability” more specifically consist of? Who will define it? At a two-day, interdisciplinary roundtable on AI ethics I recently attended, such questions featured prominently, and humanists, policy experts, and lawyers engaged in a free-wheeling discussion about topics ranging from robot arms races to computationally planned economies. But at the end of the event, an emissary from a group funded by Elon Musk and Peter Thiel among others pronounced our work useless. “You have no common methodology,” he informed us (apparently unaware that that’s the point of an interdisciplinary meeting). “We have a great deal of money to fund real research on AI ethics and policy”— which he thought of as dry, economistic modeling of competition and cooperation via technology — “but this is not the right group.” He then gratuitously lashed out at academics in attendance as “rent seekers,” largely because we had the temerity to advance distinctive disciplinary perspectives rather than fall in line with his research agenda.

Most corporate contacts and philanthrocapitalists are more polite, but their sense of what is realistic and what is utopian, what is worth studying and what is mere ideology, is strongly shaping algorithmic accountability research in both social science and computer science. This influence in the realm of ideas has powerful effects beyond it. Energy that could be put into better public transit systems is instead diverted to perfect the coding of self-driving cars. Anti-surveillance activism transmogrifies into proposals to improve facial recognition systems to better recognize all faces. To help payday-loan seekers, developers might design data-segmentation protocols to show them what personal information they should reveal to get a lower interest rate. But the idea that such self-monitoring and data curation can be a trap, disciplining the user in ever finer-grained ways, remains less explored. Trying to make these games fairer, the research elides the possibility of rejecting them altogether….(More)”.

Countries Can Learn from France’s Plan for Public Interest Data and AI


Nick Wallace at the Center for Data Innovation: “French President Emmanuel Macron recently endorsed a national AI strategy that includes plans for the French state to make public and private sector datasets available for reuse by others in applications of artificial intelligence (AI) that serve the public interest, such as for healthcare or environmental protection. Although this strategy fails to set out how the French government should promote widespread use of AI throughout the economy, it will nevertheless give a boost to AI in some areas, particularly public services. Furthermore, the plan for promoting the wider reuse of datasets, particularly in areas where the government already calls most of the shots, is a practical idea that other countries should consider as they develop their own comprehensive AI strategies.

The French strategy, drafted by mathematician and Member of Parliament Cédric Villani, calls for legislation to mandate repurposing both public and private sector data, including personal data, to enable public-interest uses of AI by government or others, depending on the sensitivity of the data. For example, public health services could use data generated by Internet of Things (IoT) devices to help doctors better treat and diagnose patients. Researchers could use data captured by motorway CCTV to train driverless cars. Energy distributors could manage peaks and troughs in demand using data from smart meters.

Repurposed data held by private companies could be made publicly available, shared with other companies, or processed securely by the public sector, depending on the extent to which sharing the data presents privacy risks or undermines competition. The report suggests that the government would not require companies to share data publicly when doing so would impact legitimate business interests, nor would it require that any personal data be made public. Instead, Dr. Villani argues that, if wider data sharing would do unreasonable damage to a company’s commercial interests, it may be appropriate to only give public authorities access to the data. But where the stakes are lower, companies could be required to share the data more widely, to maximize reuse. Villani rightly argues that it is virtually impossible to come up with generalizable rules for how data should be shared that would work across all sectors. Instead, he argues for a sector-specific approach to determining how and when data should be shared.

After making the case for state-mandated repurposing of data, the report goes on to highlight four key sectors as priorities: health, transport, the environment, and defense. Since these all have clear implications for the public interest, France can create national laws authorizing extensive repurposing of personal data without violating the General Data Protection Regulation (GDPR) which allows national laws that permit the repurposing of personal data where it serves the public interest. The French strategy is the first clear effort by an EU member state to proactively use this clause in aid of national efforts to bolster AI….(More)”.

The Magic of “Multisolving”


Elizabeth Sawin at Stanford Social Innovation Review: “In Japan, manufacturing facilities use “green curtains”—living panels of climbing plants—to clean the air, provide vegetables for company cafeterias, and reduce energy use for cooling. A walk-to-school program in the United Kingdom fights a decline in childhood physical activity while reducing traffic congestion and greenhouse gas emissions from transportation. A food-gleaning program staffed by young volunteers and families facing food insecurity in Spain addresses food waste, hunger, and a desire for sustainability.

Each of these is a real-life example of what I call “multisolving”—where people pool expertise, funding, and political will to solve multiple problems with a single investment of time and money. It’s an approach with great relevance in this era of complex, interlinked, social and environmental challenges. But what’s the best formula for implementing projects that tackle many problems at once?

Climate Interactive, which uses systems analysis to help people address climate change, recently completed a year-long study of multisolving for climate and health. We learned there is no one-size-fits-all recipe, but we did identify three operating principles and three practices that showed up again and again in the projects we studied. What’s more, anyone wanting to access the power of cross-sectoral partnership can adopt them….(More)”.

Prizes are a powerful spur to innovation and breakthroughs


John Thornhill in the Financial Times: “…All too often today we leave research and innovation in the hands of the so-called professionals, often with disappointing results. Winning a prize often matters less than the stimulus it provides for innovators in neighbouring fields In recent years, there has been an explosion in the number of professional scientists. Unesco estimates that there were 7.8m full-time researchers in 2013.

The number of scientific journals has also increased, making it difficult even for specialists to remain on top of all the latest advances in their field. In spite of this explosion of knowledge and research spending, there has been a striking lack of breakthrough innovations, as economists such as Robert Gordon and Tyler Cowen have noted.

Maybe this is because all the low-hanging technological fruit has been eaten. Or perhaps it is because our research and development methodology has gone awry.

Geoff Mulgan, chief executive of Nesta, is one of those who is trying to revive the concept of prizes as a means of encouraging innovation. His public foundation runs the Challenge Prize Centre, offering awards of up to £10m for innovation in the fields of energy and the environment, healthcare, and community wellbeing. “Setting a specific target, opening up to anyone to meet it, and providing a financial reward if they succeed is the opposite of how most R&D is done,” Mr Mulgan says. “We should all focus more on outcomes than inputs.”…
But these prizes are far from being a panacea. Indeed, they can sometimes lead to perverse results, encouraging innovators to fixate on just one, original goal while ignoring serendipitous surprises along the way. Many innovations are the happy byproduct of research rather than its primary outcome. An academic paper on the effectiveness of innovation prizes concluded that they could be a useful addition to the armoury but were no substitute for other proven forms of research and development. The authors also warned that if prizes were poorly designed, managed, and awarded they could prove “ineffective or even harmful”.

That makes it essential to design competitions in careful and precise detail. It also helps if there are periodic payouts along the way to encourage the most promising ideas. Many companies have embraced the concept of open innovation and increasingly look to collaborate with outside partners to develop fresh ideas, sometimes by means of corporate prizes….(More)”.

Meet the Numtots: the millennials who find fixing public transport sexy


Elle Hunt in The Guardian: “Who makes a Facebook meme group about trains? The Numtots, that’s who: a global network of millennials who want to make cities better

A metro-map style logo for the New Urbanist Memes for Transit-Oriented Teens Facebook group.
 A metro-map style logo for the New Urbanist Memes for Transit-Oriented Teens Facebook group. Illustration: Mitchell Sheldrick/New Urbanist Memes for Transit-Oriented Teens.

The year is 2025. There are no cars, only public transport and bicycles. Four-lane highways have been replaced by bike paths. Pedestrians share the pavements with cyclists. The air is clean (because the buses are electric), and the living is easy.

This is the future the Numtots want.

Predominantly millennials with a passion for public transport, urban planning and internet humour, Numtots’ interests intersect in New Urbanist Memes for Transit-Oriented Teens, the Facebook group from which they derive their nickname. There, nearly 100,000 of them discuss and debate their perfect city, or transit lines in their area, or perpendicular traffic flow and improvisational vehicle pathing….Numtots – or just ’tots – are the sorts of older teens through to thirtysomethings who identify as being “irrationally excited” for the forthcoming Maryland purple line; who claim their first word as a child was “bus” (“I think I was destined to become a Numtot …”); who stridently propose ideas for “what the Amtrak system should look like” (“Fight me if you don’t like it”); and who mercilessly make fun of Richard Florida’s leather jacket….

Numtots’ guiding principles are broadly summed up by the page’s URL: “What would Jane Jacobs do?”…The enthusiastic response to the group – and the Generation Y-led “yimby” movement for high-density housing it dovetails with – suggests there may be something fundamentally millennial about urbanism. “I think at first people were really excited that they had a place to talk about living in cities,” says Orenstein, also 21. “But as the group has picked up steam, more people are joining that weren’t interested in the issues but are finding that maybe, actually, they are.” It makes sense: improving public transport, transitioning to renewable energy and investing in future-focused infrastructure are not often vote winners, being costly and slow to enact – but young people have more of a stake in seeing them put into action….(More)”.

Blockchain in Cities


Report by Brooks Rainwater at the National League of Cities: “Public trust in American lawmakers (particularly at the national level), elections and democratic institutions has plummeted in recent years. While there are many contributing factors, the explosion of digital information, digital misinformation and outright abuse has played a major role in this downward trend.

To restore confidence in the core tenets of our society, leaders need solutions tailored to an increasingly digital world. Additionally, blockchain presents direct opportunities for cities — voting, real estate, transportation, energy, water management and more. The potential exists for local governments to utilize blockchain to lower costs, improve efficiency and create a framework to accelerate innovation, access and accountability in public management.

Blockchain is a shared database or distributed ledger, located permanently online for anything represented digitally, such as rights, goods and property. At its core, it is a secure, inalterable electronic register. Through enhanced trust, consensus and autonomy, blockchain brings widespread decentralization. This is a departure from the traditional role that centralized intermediaries or entities — such as banks — played to manage our valuable transfers. Its inherent transparency promotes relationships and builds confidence.

In the early days of the internet, few people could have predicted the magnitude of the disruption it would cause and the pivotal role it would play in globalization. Some experts say blockchain will potentially change the nature and security of all interactions of value. Because blockchain has large implications for individuals, it will have even larger ramifications for cities.

Here are seven key ways that cities can explore blockchain now:

  • Use blockchain to expand digital inclusion initiatives and help support the un- and under-banked.
  • Explore options for using blockchain in governance, procurement processes and business licensing.
  • Consider blockchain to increase civic engagement and offer additional pathways for voting.
  • Investigate how blockchain can help strengthen local alternative energy initiatives.
  • Prepare for the utilization of blockchain for digital transportation infrastructure needs as autonomous vehicles are more broadly deployed in cities.
  • While the benefits could be manifold, be cognizant of the potential for negative externalities that will need to be addressed and make sure that cities give themselves time to absorb each impact of introducing this technology.
  • Pay attention to what other cities have experienced and learned when it comes to blockchain. And above all, keep an open mind and be open to change. This new technology might just bring some unexpected yet very welcome benefits to your city and its residents….(More)”.

Democracy doomsday prophets are missing this critical shift


Bruno Kaufmann and Joe Mathews in the Washington Post: “The new conventional wisdom seems to be that electoral democracy is in decline. But this ignores another widespread trend: direct democracy at the local and regional level is booming, even as disillusion with representative government at the national level grows.

Today, 113 of the world’s 117 democratic countries offer their citizens legally or constitutionally established rights to bring forward a citizens’ initiative, referendum or both. And since 1980, roughly 80 percent of countries worldwide have had at least one nationwide referendum or popular vote on a legislative or constitutional issue.

Of all the nationwide popular votes in the history of the world, more than half have taken place in the past 30 years. As of May 2018, almost 2,000 nationwide popular votes on substantive issues have taken place, with 1,059 in Europe, 191 in Africa, 189 in Asia, 181 in the Americas and 115 in Oceania, based on our research.

That is just at the national level. Other major democracies — Germany, the United States and India — do not permit popular votes on substantive issues nationally but support robust direct democracy at the local and regional levels. The number of local votes on issues has so far defied all attempts to count them — they run into the tens of thousands.

This robust democratization, at least when it comes to direct legislation, provides a context that’s generally missing when doomsday prophets suggest that democracy is dying by pointing to authoritarian-leaning leaders like Turkish President Recep Tayyip Erdogan, Russian President Vladimir Putin, Hungarian Prime Minister Viktor Orbán, Philippine President Rodrigo Duterte and U.S. President Donald Trump.

Indeed, the two trends — the rise of populist authoritarianism in some nations and the rise of local and direct democracy in some areas — are related. Frustration is growing with democratic systems at national levels, and yes, some people become more attracted to populism. But some of that frustration is channeled into positive energy — into making local democracy more democratic and direct.

Cities from Seoul to San Francisco are hungry for new and innovative tools that bring citizens into processes of deliberation that allow the people themselves to make decisions and feel invested in government actions. We’ve seen local governments embrace participatory budgeting, participatory planning, citizens’ juries and a host of experimental digital tools in service of that desired mix of greater public deliberation and more direct public action….(More).”

How Citizens Can Hack EU Democracy


Stephen Boucher at Carnegie Europe: “…To connect citizens with the EU’s decisionmaking center, European politicians will need to provide ways to effectively hack this complex system. These democratic hacks need to be visible and accessible, easily and immediately implementable, viable without requiring changes to existing European treaties, and capable of having a traceable impact on policy. Many such devices could be imagined around these principles. Here are three ideas to spur debate.

Hack 1: A Citizens’ Committee for the Future in the European Parliament

The European Parliament has proposed that twenty-seven of the seventy-three seats left vacant by Brexit should be redistributed among the remaining member states. According to one concept, the other forty-six unassigned seats could be used to recruit a contingent of ordinary citizens from around the EU to examine legislation from the long-term perspective of future generations. Such a “Committee for the Future” could be given the power to draft a response to a yearly report on the future produced by the president of the European Parliament, initiate debates on important political themes of their own choosing, make submissions on future-related issues to other committees, and be consulted by members of the European Parliament (MEPs) on longer-term matters.

MEPs could decide to use these forty-six vacant seats to invite this Committee for the Future to sit, at least on a trial basis, with yearly evaluations. This arrangement would have real benefits for EU politics, acting as an antidote to the union’s existential angst and helping the EU think systemically and for the longer term on matters such as artificial intelligence, biodiversity, climate concerns, demography, mobility, and energy.

Hack 2: An EU Participatory Budget

In 1989, the city of Porto Alegre, Brazil, decided to cede control of a share of its annual budget for citizens to decide upon. This practice, known as participatory budgets, has since spread globally. As of 2015, over 1,500 instances of participatory budgets have been implemented across five continents. These processes generally have had a positive impact, with people proving that they take public spending matters seriously.

To replicate these experiences at the European level, the complex realities of EU budgeting would require specific features. First, participative spending probably would need to be both local and related to wider EU priorities in order to ensure that citizens see its relevance and its wider European implications. Second, significant resources would need to be allocated to help citizens come up with and promote projects. For instance, the city of Paris has ensured that each suggested project that meets the eligibility requirements has a desk officer within its administration to liaise with the idea’s promoters. It dedicates significant resources to reach out to citizens, in particular in the poorer neighborhoods of Paris, both online and face-to-face. Similar efforts would need to be deployed across Europe. And third, in order to overcome institutional complexities, the European Parliament would need to work with citizens as part of its role in negotiating the budget with the European Council.

Hack 3: An EU Collective Intelligence Forum

Many ideas have been put forward to address popular dissatisfaction with representative democracy by developing new forums such as policy labs, consensus conferences, and stakeholder facilitation groups. Yet many citizens still feel disenchanted with representative democracy, including at the EU level, where they also strongly distrust lobby groups. They need to be involved more purposefully in policy discussions.

A yearly Deliberative Poll could be run on a matter of significance, ahead of key EU summits and possibly around the president of the commission’s State of the Union address. On the model of the first EU-wide Deliberative Poll, Tomorrow’s Europe, this event would bring together in Brussels a random sample of citizens from all twenty-seven EU member states, and enable them to discuss various social, economic, and foreign policy issues affecting the EU and its member states. This concept would have a number of advantages in terms of promoting democratic participation in EU affairs. By inviting a truly representative sample of citizens to deliberate on complex EU matters over a weekend, within the premises of the European Parliament, the European Parliament would be the focus of a high-profile event that would draw media attention. This would be especially beneficial if—unlike Tomorrow’s Europe—the poll was not held at arm’s length by EU policymakers, but with high-level national officials attending to witness good-quality deliberation remolding citizens’ views….(More)”.