Nudging the city and residents of Cape Town to save water

Curated on Posted on by Stefaan Verhulst

Leila Harris, Jiaying Zhao and Martine Visser in The Conversation: “Cape Town could become the world’s first major city to run out of water – what’s been termed Day Zero….To its credit, the city has worked with researchers at the University of Cape Town to test strategies to nudge domestic users into reducing their water use. Nudges are interventions to encourage behaviour change for better outcomes, or in this context, to achieve environmental or conservation goals.

What key insights could help inform the city’s strategies? Research from psychology and behavioural economics could prove useful to refine efforts and help to achieve further water savings.

The most effective tactics

Research suggests the following types of nudges could be effective in promoting conservation behaviours.

Social norms: International research, as well as studies conducted in Cape Town, suggest that effective conservation can be promoted by giving feedback to consumers on how they perform relative to their neighbours. To this end, Cape Town introduced a water map that highlights homes that are compliant with targets.

The city has also been bundling information on usage with easy to implement water saving tips, something that research has shown to be particularly effective.

Research also suggests that combining behavioural interventions with traditional measures – such as tariff increases and restrictions – are often effective to reduce use in the short-term.

Real-time feedback: Cape Town is presenting the daily water level in major dams on a dashboard. This approach is consistent with research that shows that real-time information can effectively reduce water and energy consumption.

Such efforts could even be more effective if information is highlighted in relation to the critical level that’s been set for Day Zero, in this case 13.5%.

In the early days of a drought, it is also advisable to make information like this readily accessible through news outlets, social media, or even text messages. The water tracker produced by eighty20, a private Cape Town-based company, provides an example.

Social recognition: There’s evidence that efforts to celebrate successes or encourage competition can be effective – for instance, recognising neighbourhoods for meeting conservation targets. Prizes needn’t be monetary. Sometimes simple recognition, such as a certificate, can be effective.

Social recognition was found to be the most successful intervention among nine others nudges tested in research conducted in Cape Town in 2016. In this experiment, households who reduced consumption by 10% were recognised on the city’s website.

Another study showed that competition between the various floors of a government building in the Western Cape led to energy savings of up to 14%.

Cooperation: In the months ahead, the city would also do well to consider the support it might offer to encourage cooperation, particularly as the situation becomes more acute and as tensions rise.

Past studies have shown that social reputation and efforts to promote reciprocity can go a long way to encourage cooperation. The point is argued in a recent article featuring the importance of cooperation among Capetonians across different income groups.

Some residents of Cape Town are already pushing for a cooperative approach such as helping neighbours who might have difficulty travelling to collection points. Support for these efforts should be an important part of policies in the run up to Day Zero. These are often the examples that provide bright spots in challenging times.

Research also suggests that to navigate moments of crisis effectively, clear and trustworthy communication is critical. This also needs to be a priority….(More)“.

The nation that thrived by ‘nudging’ its population

Curated on Posted on by Stefaan Verhulst

Sarah Keating at the BBC: “Singapore has grown from almost nothing in 50 years. And this well-regarded society has been built up, partly, thanks to the power of suggestion….But while Singapore still loves a public campaign, it has moved toward a more nuanced approach of influencing the behaviours of its inhabitants.

Nudging the population isn’t uniquely Singaporean; more than 150 governments across the globe have tried nudging as a better choice. A medical centre in Qatar, for example, managed to increase the uptake of diabetes screening by offering to test people during Ramadan. People were fasting anyway so the hassle of having to not eat before your testing was removed. It was convenient and timely, two key components to a successful nudge.

Towns in Iceland, India and China have trialed ‘floating zebra crossings’ – 3D optical illusions which make the crossings look like they are floating above the ground designed to urge drivers to slow down. And in order to get people to pay their taxes in the UK, people were sent a letter saying that the majority of taxpayers pay their taxes on time which has had very positive results. Using social norms make people want to conform.

In Singapore some of the nudges you come across are remarkably simple. Rubbish bins are placed away from bus stops to separate smokers from other bus users. Utility bills display how your energy consumption compares to your neighbours. Outdoor gyms have been built near the entrances and exits of HDB estates so they are easy to use, available and prominent enough to consistently remind you. Train stations have green and red arrows on the platform indicating where you should stand so as to speed up the alighting process. If you opt to travel at off-peak times (before 0700), your fare is reduced.

And with six out of 10 Singaporeans eating at food courts four or more times a week, getting people to eat healthier is also a priority. As well as the Healthier Dining Programme, some places make it cheaper to take the healthy option. If you’re determined to eat that Fried Bee Hoon at Khoo Teck Puat Hospital, for example, you’re going to have to pay more for it.

The National Steps Challenge, which encourages participants to get exercising using free step counters in exchange for cash and prizes, has been so successful that the programme name has been trademarked. This form of gamifying is one of the more successful ways of engaging users in achieving objectives. Massive queues to collect the free fitness tracker demonstrated the programme’s popularity.

And it’s not just in tangible ways that nudges are being rolled out. Citizens pay into a mandatory savings programme called the Central Provident Fund at a high rate. This can be accessed for healthcare, housing and pensions as a way to get people to save long-term because evidence has shown that people are too short-sighted when it comes to financing their future

And as the government looks to increase the population 30% by 2030, the city-state’s ageing population and declining birth rate is a problem. The Baby Bonus Scheme goes some way to encouraging parents to have more children by offering cash incentives. Introduced in 2001, the scheme means that all Singapore citizens who have a baby get a cash gift as well as a money into a Child Development Account (CDA) which can be used to pay for childcare and healthcare. The more children you have, the more money you get – since March 2016 you get a cash gift of $8,000 SGD (£4,340) for your first child and up to $10,000 (£5,430) for the third and any subsequent children, as well as money into your CDA.

So do people like being nudged? Is there any cultural difference in the way people react to being swayed toward a ‘better’ choice or behaviour? Given the breadth of the international use of behavioural insights, there is relatively little research done into whether people are happy about it….(More)”.

How Blockchain can benefit migration programmes and migrants

Curated on Posted on by Stefaan Verhulst

Solon Ardittis at the Migration Data Portal: “According to a recent report published by CB Insights, there are today at least 36 major industries that are likely to benefit from the use of Blockchain technology, ranging from voting procedures, critical infrastructure security, education and healthcare, to car leasing, forecasting, real estate, energy management, government and public records, wills and inheritance, corporate governance and crowdfunding.

In the international aid sector, a number of experiments are currently being conducted to distribute aid funding through the use of Blockchain and thus to improve the tracing of the ways in which aid is disbursed. Among several other examples, the Start Network, which consists of 42 aid agencies across five continents, ranging from large international organizations to national NGOs, has launched a Blockchain-based project that enables the organization both to speed up the distribution of aid funding and to facilitate the tracing of every single payment, from the original donor to each individual assisted.

As Katherine Purvis of The Guardian noted, “Blockchain enthusiasts are hopeful it could be the next big development disruptor. In providing a transparent, instantaneous and indisputable record of transactions, its potential to remove corruption and provide transparency and accountability is one area of intrigue.”

In the field of international migration and refugee affairs, however, Blockchain technology is still in its infancy.

One of the few notable examples is the launch by the United Nations (UN) World Food Programme (WFP) in May 2017 of a project in the Azraq Refugee Camp in Jordan which, through the use of Blockchain technology, enables the creation of virtual accounts for refugees and the uploading of monthly entitlements that can be spent in the camp’s supermarket through the use of an authorization code. Reportedly, the programme has contributed to a reduction by 98% of the bank costs entailed by the use of a financial service provider.

This is a noteworthy achievement considering that organizations working in international relief can lose up to 3.5% of each aid transaction to various fees and costs and that an estimated 30% of all development funds do not reach their intended recipients because of third-party theft or mismanagement.

At least six other UN agencies including the UN Office for Project Services (UNOPS), the UN Development Programme (UNDP), the UN Children’s Fund (UNICEF), UN Women, the UN High Commissioner for Refugees (UNHCR) and the UN Development Group (UNDG), are now considering Blockchain applications that could help support international assistance, particularly supply chain management tools, self-auditing of payments, identity management and data storage.

The potential of Blockchain technology in the field of migration and asylum affairs should therefore be fully explored.

At the European Union (EU) level, while a Blockchain task force has been established by the European Parliament to assess the ways in which the technology could be used to provide digital identities to refugees, and while the European Commission has recently launched a call for project proposals to examine the potential of Blockchain in a range of sectors, little focus has been placed so far on EU assistance in the field of migration and asylum, both within the EU and in third countries with which the EU has negotiated migration partnership agreements.

This is despite the fact that the use of Blockchain in a number of major programme interventions in the field of migration and asylum could help improve not only their cost-efficiency but also, at least as importantly, their degree of transparency and accountability. This at a time when media and civil society organizations exercise increased scrutiny over the quality and ethical standards of such interventions.

In Europe, for example, Blockchain could help administer the EU Asylum, Migration and Integration Fund (AMIF), both in terms of transferring funds from the European Commission to the eligible NGOs in the Member States and in terms of project managers then reporting on spending. This would help alleviate many of the recurrent challenges faced by NGOs in managing funds in line with stringent EU regulations.

As crucially, Blockchain would have the potential to increase transparency and accountability in the channeling and spending of EU funds in third countries, particularly under the Partnership Framework and other recent schemes to prevent irregular migration to Europe.

A case in point is the administration of EU aid in response to the refugee emergency in Greece where, reportedly, there continues to be insufficient oversight of the full range of commitments and outcomes of large EU-funded investments, particularly in the housing sector. Another example is the set of recent programme interventions in Libya, where a growing number of incidents of human rights abuses and financial mismanagement are being brought to light….(More)”.

You weren’t supposed to have to think about politics

Curated on Posted on by Stefaan Verhulst

Bonnie Kristian at The Week: “You were not supposed to have to think about politics.

Not this much, anyway. Good citizenship was not supposed to entail paying obsessive attention to a 24-hour news cycle. It was not supposed to demand conversational knowledge, at any given moment, of at least 15 issues of national importance. It was not supposed to be the task of each American to have An Informed Opinion on What the Government Should Do about every matter of state.

America’s founders never wanted politics to be a major occupation of your mind. It was not supposed to feature prominently among your worries. Most of the time, it was not supposed to be your responsibility.

I know, I know, we learn in grade school that America is a democracy, and each of us must do our part to ensure good governance “of the people, by the people, and for the people.” This may be inspirational for children, but it is not entirely true.

The United States’ government has democratic elements, yes, and, in some ways, it has become more democratic with time. (In other ways, it hasbecome less democratic, and I’ll leave it to the reader to decide whether the net change is a loss or gain.) To say our country is a republic rather than a democracy is also misleading, but it does remind us of an important point: Our federal system is representational. It is not direct democracy. Each of us does not weigh in on everything. Instead, we periodically vote on representatives who will weigh in on our behalf while we do other, better things.

This is with good reason. At the most practical level, direct democracy was always impossible for a country of the United States’ size. And even now, assuming technology could be secure enough to use without concern over hacking and other malicious manipulation, there is cause to reject direct democracy: A system designed to force every responsible citizen to pay constant attention to politics is not desirable.

We elect representatives to do the great bulk of our politicking for us because we have more important things to do. We have families to raise and jobs to work and homes to maintain. We have our own areas of interest and expertise, our own relationships to cultivate. And, crucially, we have limited time, energy, and mental space. Some of us may choose to make politics our hobby or occupation, but all of us should not have to make that choice.

Politics is one aspect of our society. It is one part of many. We all no more need to be politicos, amateur or professional, than we all need to be philosophers or writers or tailors or dog rescuers or plumbers. Philosophy, books, clothes, rescue dogs, and working toilets are all important, just as politics is, but they are not everyone’s concern all the time. They are some people’s profession and the hobbies of others, but for most of us, these and any other field of work or pastime are only occasionally encountered…(More)”

People Power

Curated on Posted on by Stefaan Verhulst

Report from the Commission on the Future of Localism (UK): “…When we think about power we tend to look upwards – towards Westminster-based institutions and elected politicians. Those who wish to see greater localism often ask politicians to give it away and push power downwards. But this is looking at things the wrong way round. Instead, we need to start with the power of community. The task of our political system should be to support this, harness it, and reflect it in our national debate.

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Our Commission has heard evidence about what makes a powerful community. While different communities build and experience power in different ways, there are common sources. We heard how the power of any community lies with its people, their collective ideas, innovation, creativity and local knowledge, as well as their sense of belonging, connectedness and shared identity. We need to bring this into political life much more effectively via a renewed effort to foster localism in future.

However, our Commission has also heard about a fundamental imbalance of power that is preventing this power of community from coming to life and restricting collective agency: top-down decisions leaving community groups and local councils unable to make the change they know their neighbourhood needs; a lack of trust and risk aversion from public bodies, dampening community energy; a lack of control and access to local resources, limiting the scope of local action….(More)”.

Extracting crowd intelligence from pervasive and social big data

Curated on Posted on by Stefaan Verhulst

Introduction by Leye Wang, Vincent Gauthier, Guanling Chen and Luis Moreira-Matias of Special Issue of the Journal of Ambient Intelligence and Humanized Computing: “With the prevalence of ubiquitous computing devices (smartphones, wearable devices, etc.) and social network services (Facebook, Twitter, etc.), humans are generating massive digital traces continuously in their daily life. Considering the invaluable crowd intelligence residing in these pervasive and social big data, a spectrum of opportunities is emerging to enable promising smart applications for easing individual life, increasing company profit, as well as facilitating city development. However, the nature of big data also poses fundamental challenges on the techniques and applications relying on the pervasive and social big data from multiple perspectives such as algorithm effectiveness, computation speed, energy efficiency, user privacy, server security, data heterogeneity and system scalability. This special issue presents the state-of-the-art research achievements in addressing these challenges. After the rigorous review process of reviewers and guest editors, eight papers were accepted as follows.

The first paper “Automated recognition of hypertension through overnight continuous HRV monitoring” by Ni et al. proposes a non-invasive way to differentiate hypertension patients from healthy people with the pervasive sensors such as a waist belt. To this end, the authors train a machine learning model based on the heart rate data sensed from waists worn by a crowd of people, and the experiments show that the detection accuracy is around 93%.

The second paper “The workforce analyzer: group discovery among LinkedIn public profiles” by Dai et al. describes two users’ group discovery methods among LinkedIn public profiles. One is based on K-means and another is based on SVM. The authors contrast results of both methods and provide insights about the trending professional orientations of the workforce from an online perspective.

The third paper “Tweet and followee personalized recommendations based on knowledge graphs” by Pla Karidi et al. present an efficient semantic recommendation method that helps users filter the Twitter stream for interesting content. The foundation of this method is a knowledge graph that can represent all user topics of interest as a variety of concepts, objects, events, persons, entities, locations and the relations between them. An important advantage of the authors’ method is that it reduces the effects of problems such as over-recommendation and over-specialization.

The fourth paper “CrowdTravel: scenic spot profiling by using heterogeneous crowdsourced data” by Guo et al. proposes CrowdTravel, a multi-source social media data fusion approach for multi-aspect tourism information perception, which can provide travelling assistance for tourists by crowd intelligence mining. Experiments over a dataset of several popular scenic spots in Beijing and Xi’an, China, indicate that the authors’ approach attains fine-grained characterization for the scenic spots and delivers excellent performance.

The fifth paper “Internet of Things based activity surveillance of defence personnel” by Bhatia et al. presents a comprehensive IoT-based framework for analyzing national integrity of defence personnel with consideration to his/her daily activities. Specifically, Integrity Index Value is defined for every defence personnel based on different social engagements, and activities for detecting the vulnerability to national security. In addition to this, a probabilistic decision tree based automated decision making is presented to aid defence officials in analyzing various activities of a defence personnel for his/her integrity assessment.

The sixth paper “Recommending property with short days-on-market for estate agency” by Mou et al. proposes an estate with short days-on-market appraisal framework to automatically recommend those estates using transaction data and profile information crawled from websites. Both the spatial and temporal characteristics of an estate are integrated into the framework. The results show that the proposed framework can estimate accurately about 78% estates.

The seventh paper “An anonymous data reporting strategy with ensuring incentives for mobile crowd-sensing” by Li et al. proposes a system and a strategy to ensure anonymous data reporting while ensuring incentives simultaneously. The proposed protocol is arranged in five stages that mainly leverage three concepts: (1) slot reservation based on shuffle, (2) data submission based on bulk transfer and multi-player dc-nets, and (3) incentive mechanism based on blind signature.

The last paper “Semantic place prediction from crowd-sensed mobile phone data” by Celik et al. semantically classifes places visited by smart phone users utilizing the data collected from sensors and wireless interfaces available on the phones as well as phone usage patterns, such as battery level, and time-related information, with machine learning algorithms. For this study, the authors collect data from 15 participants at Galatasaray University for 1 month, and try different classification algorithms such as decision tree, random forest, k-nearest neighbour, naive Bayes, and multi-layer perceptron….(More)”.

Artificial intelligence and smart cities

Curated on Posted on by Stefaan Verhulst

Essay by Michael Batty at Urban Analytics and City Sciences: “…The notion of the smart city of course conjures up these images of such an automated future. Much of our thinking about this future, certainly in the more popular press, is about everything ranging from the latest App on our smart phones to driverless cars while somewhat deeper concerns are about efficiency gains due to the automation of services ranging from transit to the delivery of energy. There is no doubt that routine and repetitive processes – algorithms if you like – are improving at an exponential rate in terms of the data they can process and the speed of execution, faithfully following Moore’s Law.

Pattern recognition techniques that lie at the basis of machine learning are highly routinized iterative schemes where the pattern in question – be it a signature, a face, the environment around a driverless car and so on – is computed as an elaborate averaging procedure which takes a series of elements of the pattern and weights them in such a way that the pattern can be reproduced perfectly by the combinations of elements of the original pattern and the weights. This is in essence the way neural networks work. When one says that they ‘learn’ and that the current focus is on ‘deep learning’, all that is meant is that with complex patterns and environments, many layers of neurons (elements of the pattern) are defined and the iterative procedures are run until there is a convergence with the pattern that is to be explained. Such processes are iterative, additive and not much more than sophisticated averaging but using machines that can operate virtually at the speed of light and thus process vast volumes of big data. When these kinds of algorithm can be run in real time and many already can be, then there is the prospect of many kinds of routine behaviour being displaced. It is in this sense that AI might herald in an era of truly disruptive processes. This according to Brynjolfsson and McAfee is beginning to happen as we reach the second half of the chess board.

The real issue in terms of AI involves problems that are peculiarly human. Much of our work is highly routinized and many of our daily actions and decisions are based on relatively straightforward patterns of stimulus and response. The big questions involve the extent to which those of our behaviours which are not straightforward can be automated. In fact, although machines are able to beat human players in many board games and there is now the prospect of machines beating the very machines that were originally designed to play against humans, the real power of AI may well come from collaboratives of man and machine, working together, rather than ever more powerful machines working by themselves. In the last 10 years, some of my editorials have tracked what is happening in the real-time city – the smart city as it is popularly called – which has become key to many new initiatives in cities. In fact, cities – particularly big cities, world cities – have become the flavour of the month but the focus has not been on their long-term evolution but on how we use them on a minute by minute to week by week basis.

Many of the patterns that define the smart city on these short-term cycles can be predicted using AI largely because they are highly routinized but even for highly routine patterns, there are limits on the extent to which we can explain them and reproduce them. Much advancement in AI within the smart city will come from automation of the routine, such as the use of energy, the delivery of location-based services, transit using information being fed to operators and travellers in real time and so on. I think we will see some quite impressive advances in these areas in the next decade and beyond. But the key issue in urban planning is not just this short term but the long term and it is here that the prospects for AI are more problematic….(More)”.

Data-Intensive Approaches To Creating Innovation For Sustainable Smart Cities

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Science Trends: “Located at the complex intersection of economic development and environmental change, cities play a central role in our efforts to move towards sustainability. Reducing air and water pollution, improving energy efficiency while securing energy supply, and minimizing vulnerabilities to disruptions and disturbances are interconnected and pose a formidable challenge, with their dynamic interactions changing in highly complex and unpredictable manners….

The Beijing City Lab demonstrates the usefulness of open urban data in mapping urbanization with a fine spatiotemporal scale and reflecting social and environmental dimensions of urbanization through visualization at multiple scales.

The basic principle of open data will generate significant opportunities for promoting inter-disciplinary and inter-organizational research, producing new data sets through the integration of different sources, avoiding duplication of research, facilitating the verification of previous results, and encouraging citizen scientists and crowdsourcing approaches. Open data also is expected to help governments promote transparency, citizen participation, and access to information in policy-making processes.

Despite a significant potential, however, there still remain numerous challenges in facilitating innovation for urban sustainability through open data. The scope and amount of data collected and shared are still limited, and the quality control, error monitoring, and cleaning of open data is also indispensable in securing the reliability of the analysis. Also, the organizational and legal frameworks of data sharing platforms are often not well-defined or established, and it is critical to address the interoperability between various data standards, balance between open and proprietary data, and normative and legal issues such as the data ownership, personal privacy, confidentiality, law enforcement, and the maintenance of public safety and national security….

These findings are described in the article entitled Facilitating data-intensive approaches to innovation for sustainability: opportunities and challenges in building smart cities, published in the journal Sustainability Science. This work was led by Masaru Yarime from the City University of Hong Kong….(More)”.

Democratising the future: How do we build inclusive visions of the future?

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Chun-Yin San at Nesta: “In 2011, Lord Martin Rees, the British Astronomer-Royal, launched a scathing critique on the UK Government’s long-term thinking capabilities. “It is depressing,” he argued, “that long-term global issues of energy, food, health and climate get trumped on the political agenda by the short term”. We are facing more and more complex, intergenerational issues like climate change, or the impact of AI, which require long-term, joined-up thinking to solve.

But even when governments do invest in foresight and strategic planning, there is a bigger question around whose vision of the future it is. These strategic plans tend to be written in opaque and complex ways by ‘experts’, with little room for scrutiny, let alone input, by members of the public….

There have been some great examples of more democratic futures exercises in the past. Key amongst them was the Hawai’i 2000 project in the 1970s, which bought together Hawaiians from different walks of life to debate the sort of place that Hawai’i should become over the next 30 years. It generated some incredibly inspiring and creative collective visions of the future of the tropical American state, and also helped embed long-term strategic thinking into policy-making instruments – at least for a time.

A more recent example took place over 2008 in the Dutch Caribbean nation of Aruba, which engaged some 50,000 people from all parts of Aruban society. The Nos Aruba 2025 project allowed the island nation to develop a more sustainable national strategic plan than ever before – one based on what Aruba and its people had to offer, responding to the potential and needs of a diverse community. Like Hawai’i 2000, what followed Nos Aruba 2025 was a fundamental change in the nature of participation in the country’s governance, with community engagement becoming a regular feature in the Aruban government’s work….

These examples demonstrate how futures work is at its best when it is participatory. …However, aside from some of the projects above, examples of genuine engagement in futures remain few and far between. Even when activities examining a community’s future take place in the public domain – such as the Museum of London’s ongoing City Now City Future series – the conversation can often seem one-sided. Expert-generated futures are presented to people with little room for them to challenge these ideas or contribute their own visions in a meaningful way. This has led some, like academics Denis Loveridge and Ozcan Saritas, to remark that futures and foresight can suffer from a serious case of ‘democratic deficit‘.

There are three main reasons for this:

  1. Meaningful participation can be difficult to do, as it is expensive and time-consuming, especially when it comes to large-scale exercises meant to facilitate deep and meaningful dialogue about a community’s future.

  2. Participation is not always valued in the way it should be, and can be met with false sincerity from government sponsors. This is despite the wide-reaching social and economic benefits to building collective future visions, which we are currently exploring further in our work.

  3. Practitioners may not necessarily have the know-how or tools to do citizen engagement effectively. While there are plenty of guides to public engagement and a number of different futures toolkits, there are few openly available resources for participatory futures activities….(More)”

How Software is Eating the World and Reprogramming Democracy

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Jaime Gómez Ramírez at Open Mind: “Democracy, the government of the majority typically through elected representatives, is undergoing a major crisis. Human societies have experimented with democracy since at least the fifth century BC in the polis of Athens. Whether democracy is scalable is an open question that could help understand the current mistrust in democratic institutions and the rise of populism. The majority rule is a powerful narrative that is fed every few years with elections. In Against elections, the cultural historian Van Reybrouck claims that elections were never meant to make democracy possible, rather the opposite, it was a tool designed for those in power to prevent “the rule of the mob”. Elections created a new elite and power remained in the hands of a minority, but this time endowed with democratic legitimacy….

The 2008 financial crisis have changed the perception of, the once taken for granted, complementary nature of democracy and capitalism. The belief that capitalism and democracy go hand by hand is not credible anymore. The concept of nation is a fiction in need of a continuous stock of intergenerational believers. The nation state successfully assimilated heterogeneous groups of people under a common language and shared cultural values. But this seems today a rather fragile foundation to resist the centrifugal forces that financial capitalism impinges upon the social fabric.

Nation states will not collapse over night, but they are an industrial era device in a digital world. To do not fall into obsolescence they will need to change their operative system. Since the venture capitalist Marc Andreessen coined the phrase “software is eating the world” the logic of financial capitalism has accelerated this trend. Five software companies: Facebook, Apple, Amazon, Netflix and Google parent Alphabet (FANG) equal more than 10 per cent percent of the S&P 500 cap. Todays dominant industries in entertainment, retail, telecom, marketing companies and others are software companies. Software is also taking a bigger share in industries that traditionally exist in the physical space like automakers and energy. Education and health care have shown more resistance to software-based entrepreneurial change but a very profound transformation is underway. This is already visible with the growing popularity of MOOCs and personalized health monitoring systems.

Software-based business not only have up trending market share but more importantly, software can reprogram the world. The internet of things will allow to have full connectivity of smart devices in an economy with massive deflationary costs in computing. Computing might even become free. This has profound consequences for business, industry and most importantly, for how citizens want to organize society and governance.

The most promising technological innovation in years is the blockchain technology, an encrypted and distributed ledger system. Blockchain is an universal and freely accessible repository of documents including property and insurance contracts, publicly auditable, and resistant to special group interests manipulation and corruption. New kinds of governance models and services could be tested and implemented using the blockchain. The time is ripe for fundamental software-based transformation in governance. Democracy and free society will ignore this at its own peril…(More)”.