international development

Beyond democracy: could seasteads and cryptocurrencies replace the nation state?

Curated on November 7, 2018November 15, 2018 by Stefaan Verhulst

Patri Friedman in The Spectator: “For the past 20 years I’ve been working to enable start-up societies: permanent autonomous zones on land or at sea intended to accelerate economic development and to serve as laboratories for voluntary political experiments.

For just as long (in fact since I first read The Sovereign Individual), I’ve been interested in the potential of digital cash, which is finally arriving in the form of bitcoin and the emerging cryptocurrency industry.

Start-up societies and cryptocurrencies have many parallels. Both grew from individualist movements seeking ways to take their philosophy from online message boards to the real world. Both seek to decentralise power in order to disrupt traditional institutions seen as having been captured by selfish elites. And both are critically dependent on ‘governance’ — the technology of designing and enforcing rules for collective decision-making.

Because of these parallels, people are often curious about how the two movements relate. Will seasteads — as manmade permanent dwellings at sea are known — use cryptocurrencies? Will blockchain projects such as Bitnation replace the nation state? In a world of competing virtual economic systems, do we even need to reform government in real life? (Answers: maybe, not soon and absolutely.)

There’s an old saying that we overestimate what we can accomplish in a week, but underestimate what we can accomplish in a decade. Similarly, I think people greatly overestimate the immediate impact of blockchain on startup countries, while underestimating the degree to which the fates of start-up countries and blockchain are ultimately intertwined.

In the near term, I don’t believe that blockchain will somehow enable start-up societies. The reason is simple: the hard thing about starting a new country is not the payment system. That’s why we live in a world with 1,000 cryptocurrencies but no sovereign micro-nations.

I’m also sceptical of the crypto-anarchy theory that rapidly evolving online institutions will somehow remove the need for improving offline ones. Physical space underpins virtual space, and most human activity still happens in physical space. Moreover, no matter how transcendently effulgent your networked life is, it can be ended by a single bullet. So the performance of your friendly neighbourhood nation state, with its monopoly on physical violence, still matters in the digital age…(More)”

The Nail Finds a Hammer: Self-Sovereign Identity, Design Principles, and Property Rights in the Developing World

Curated on November 6, 2018 by Stefaan Verhulst

Report by Michael Graglia, Christopher Mellon and Tim Robustelli: “Our interest in identity systems was an inevitable outgrowth of our earlier work on blockchain-based1 land registries.2 Property registries, which at the simplest level are ledgers of who has which rights to which asset, require a very secure and reliable means of identifying both people and properties. In the course of investigating solutions to that problem, we began to appreciate the broader challenges of digital identity and its role in international development. And the more we learned about digital identity, the more convinced we became of the need for self-sovereign identity, or SSI. This model, and the underlying principles of identity which it incorporates, will be described in detail in this paper.

We believe that the great potential of SSI is that it can make identity in the digital world function more like identity in the physical world, in which every person has a unique and persistent identity which is represented to others by means of both their physical attributes and a collection of credentials attested to by various external sources of authority. These credentials are stored and controlled by the identity holder—typically in a wallet—and presented to different people for different reasons at the identity holder’s discretion. Crucially, the identity holder controls what information to present based on the environment, trust level, and type of interaction. Moreover, their fundamental identity persists even though the credentials by which it is represented may change over time.

The digital incarnation of this model has many benefits, including both greatly improved privacy and security, and the ability to create more trustworthy online spaces. Social media and news sites, for example, might limit participation to users with verified identities, excluding bots and impersonators.

The need for identification in the physical world varies based on location and social context. We expect to walk in relative anonymity down a busy city street, but will show a driver’s license to enter a bar, and both a driver’s license and a birth certificate to apply for a passport. There are different levels of ID and supporting documents required for each activity. But in each case, access to personal information is controlled by the user who may choose whether or not to share it.

Self-sovereign identity gives users complete control of their own identities and related personal data, which sits encrypted in distributed storage instead of being stored by a third party in a central database. In older, “federated identity” models, a single account—a Google account, for example—might be used to log in to a number of third-party sites, like news sites or social media platforms. But in this model a third party brokers all of these ID transactions, meaning that in exchange for the convenience of having to remember fewer passwords, the user must sacrifice a degree of privacy.

A real world equivalent would be having to ask the state to share a copy of your driver’s license with the bar every time you wanted to prove that you were over the age of 21. SSI, in contrast, gives the user a portable, digital credential (like a driver’s license or some other document that proves your age), the authenticity of which can be securely validated via cryptography without the recipient having to check with the authority that issued it. This means that while the credential can be used to access many different sites and services, there is no third-party broker to track the services to which the user is authenticating. Furthermore, cryptographic techniques called “zero-knowledge proofs” (ZKPs) can be used to prove possession of a credential without revealing the credential itself. This makes it possible, for example, for users to prove that they are over the age of 21 without having to share their actual birth dates, which are both sensitive information and irrelevant to a binary, yes-or-no ID transaction….(More)”.

Governments fail to capitalise on swaths of open data

Curated on November 3, 2018 by Stefaan Verhulst

Valentina Romei in the Financial Times: “…Behind the push for open data is a desire to make governments more transparent, accountable and efficient — but also to allow businesses to create products and services that spark economic development. The global annual opportunity cost of failing to do this effectively is about $5tn, according to one estimate from McKinsey, the consultancy.

The UK is not the only country falling short, says the Open Data Barometer, which monitors the status of government data across the world. Among the 30 leading governments — those that have championed the open data movement and have made progress over five years — “less than a quarter of the data with the biggest potential for social and economic impact” is truly open. This goal of transparency, it seems, has not proved sufficient for “creating value” — the movement’s latest focus. In 2015, nearly a decade after advocates first discussed the principles of open government data, 62 countries adopted the six Open Data Charter principles — which called for data to be open by default, usable and comparable….

The use of open data has already bore fruit for some countries. In 2015, Japan’s ministry of land, infrastructure and transport set up an open data site aimed at disabled and elderly people. The 7,000 data points published are downloadable and the service can be used to generate a map that shows which passenger terminals on train, bus and ferry networksprovide barrier-free access.

In the US, The Climate Corporation, a digital agriculture company, combined 30 years of weather data and 60 years of crop yield data to help farmers increase their productivity. And in the UK, subscription service Land Insight merges different sources of land data to help individuals and developers compare property information, forecast selling prices, contact land owners and track planning applications…
Open Data 500, an international network of organisations that studies the use and impact of open data, reveals that private companies in South Korea are using government agency data, with technology, advertising and business services among the biggest users. It shows, for example, that Archidraw, a four-year-old Seoul-based company that provides 3D visualisation tools for interior design and property remodelling, has used mapping data from the Ministry of Land, Infrastructure and Transport…(More)”.

The Collaborative Era in Science: Governing the Network

Curated on October 31, 2018 by Stefaan Verhulst

Book by Caroline S. Wagner: “In recent years a global network of science has emerged as a result of thousands of individual scientists seeking to collaborate with colleagues around the world, creating a network which rises above national systems. The globalization of science is part of the underlying shift in knowledge creation generally: the collaborative era in science. Over the past decade, the growth in the amount of knowledge and the speed at which it is available has created a fundamental shift—where data, information, and knowledge were once scarce resources, they are now abundantly available.

Collaboration, openness, customer- or problem-focused research and development, altruism, and reciprocity are notable features of abundance, and they create challenges that economists have not yet studied. This book defines the collaborative era, describes how it came to be, reveals its internal dynamics, and demonstrates how real-world practitioners are changing to take advantage of it. Most importantly, the book lays out a guide for policymakers and entrepreneurs as they shift perspectives to take advantage of the collaborative era in order to create social and economic welfare….(More)”.

Positive deviance, big data, and development: A systematic literature review

Curated on October 31, 2018 by Stefaan Verhulst

Paper by Basma Albanna and Richard Heeks: “Positive deviance is a growing approach in international development that identifies those within a population who are outperforming their peers in some way, eg, children in low‐income families who are well nourished when those around them are not. Analysing and then disseminating the behaviours and other factors underpinning positive deviance are demonstrably effective in delivering development results.

However, positive deviance faces a number of challenges that are restricting its diffusion. In this paper, using a systematic literature review, we analyse the current state of positive deviance and the potential for big data to address the challenges facing positive deviance. From this, we evaluate the promise of “big data‐based positive deviance”: This would analyse typical sources of big data in developing countries—mobile phone records, social media, remote sensing data, etc—to identify both positive deviants and the factors underpinning their superior performance.

While big data cannot solve all the challenges facing positive deviance as a development tool, they could reduce time, cost, and effort; identify positive deviants in new or better ways; and enable positive deviance to break out of its current preoccupation with public health into domains such as agriculture, education, and urban planning. In turn, positive deviance could provide a new and systematic basis for extracting real‐world development impacts from big data…(More)”.

The five drivers for improving public sector performance

Curated on October 27, 2018 by Stefaan Verhulst

Lessons from the new World Bank Global Report: “Almost daily, headlines in the world’s leading newspapers are full of examples of public sector failures: public money is mismanaged or outright misused; civil servants are not motivated or are poorly trained; government agencies fail to coordinate with each other; and as a result, citizens are either deprived of quality public services, or must go through a bureaucratic maze to access them.

These public-sector challenges are often present even in the world’s most developed countries. They are of course further exacerbated by lower levels of development.

So what hope do low and middle-income countries have to make their public sectors function more effectively? Is this just a futile enterprise altogether?

We believe it is not. Our new Global Report, Improving Public Sector Performance Through Innovation and Inter-Agency Coordination, argues that positive change is possible in many low and middle-income countries. The report collects 15 inspiring country cases of such reforms and shows that such change does not necessarily require huge financial investment or complex IT systems. What seems to be required, instead, are five interconnected drivers of success:

Political leadership is needed because few, if any, of the innovations are a purely technocratic exercise. Leaders need to find ways to collaborate with a wide range of internal and external stakeholders to overcome inherent opposition.
Institutional capacity building of existing bodies is a common element across many of the 15 cases. For reforms to endure, one ultimately needs to create sustainable institutions.
Incentives matter, both at the institutional level (e.g., through government-wide policy, creating systems and structures that shape institutional objectives, and program monitoring systems) as well as at the level of civil servants (e.g., through performance targets and reward systems).
Increased transparency can help deliver change in public sector performance by breaking down government silos and ensuring inter-agency information-sharing, and publishing or disseminating performance information. Transparency can also be a powerful driver for changing incentives.
- Technology, while not a panacea, is present in two-thirds of the featured cases. The reformers applied relevant, even basic, IT tools and know-how to their specific functional requirements and did not over-design their efforts. Furthermore, the technology application is rarely a stand-alone solution; rather, it is accompanied by policies and procedures to change behavior….(More)”.

Houston’s $6 Billion Census Problem: Frightened Immigrants

Curated on October 27, 2018 by Stefaan Verhulst

Natasha Rausch at Bloomberg: “At Houston’s City Hall last week, Mayor Sylvester Turner gathered with company CEOs, university professors, police officers, politicians and local judges to discuss a $6 billion problem they all have in common: the 2020 census.

City officials and business leaders are worried about people like 21-year-old Ana Espinoza, a U.S. citizen by birth who lives with undocumented relatives. Espinoza has no intention of answering the census because she worries it could expose her family and get them deported….

Getting an accurate count has broad economic implications across the city, said Laura Murillo, chief executive officer of the Hispanic Chamber. “For everyone, the census is important. It doesn’t matter if you’re a Republican or Democrat, black or white or green.”…

For growing businesses, the census is crucial for understanding the population they’re serving in different regions. Enterprise Rent-A-Car used the 2010 census to help diversify the company’s employee base. The data prompted Enterprise to staff a new location in Houston with Spanish-speaking employees to better serve area customers, said the company’s human resources manager Phil Dyson.

“It’s been one of our top locations,” he said.

Doing the Math

Texas stands to lose at least $1,161 in federal funding for each person not counted, according to a March report by Andrew Reamer, a research professor at the George Washington Institute of Public Policy. Multiplied by the estimated 506,000 unathorized immigrants who live in the nation’s fourth-largest city, that puts at stake about $6 billion for Houston over the 10 years the census applies.

That’s just for programs such as Medicare and Medicaid. The potential loss is even larger when grants are taken into account for items like highways and community development, he said…(More)”.

How Big Tech Is Working With Nonprofits and Governments to Turn Data Into Solutions During Disasters

Curated on October 27, 2018 by Stefaan Verhulst

Kelsey Sutton at Adweek: “As Hurricane Michael approached the Florida Panhandle, the Florida Division of Emergency Management tapped a tech company for help.

Over the past year, Florida’s DEM has worked closely with GasBuddy, a Boston-based app that uses crowdsourced data to identify fuel prices and inform first responders and the public about fuel availability or power outages at gas stations during storms. Since Hurricane Irma in 2017, GasBuddy and DEM have worked together to survey affected areas, helping Florida first responders identify how best to respond to petroleum shortages. With help from the location intelligence company Cuebiq, GasBuddy also provides estimated wait times at gas stations during emergencies.

DEM first noticed GasBuddy’s potential in 2016, when the app was collecting and providing data about fuel availability following a pipeline leak.

“DEM staff recognized how useful such information would be to Florida during any potential future disasters, and reached out to GasBuddy staff to begin a relationship,” a spokesperson for the Florida State Emergency Operations Center explained….

Stefaan Verhulst, co-founder and chief research and development officer at the Governance Laboratory at New York University, advocates for private corporations to partner with public institutions and NGOs. Private data collected by corporations is richer, more granular and more up-to-date than data collected through traditional social science methods, making that data useful for noncorporate purposes like research, Verhulst said. “Those characteristics are extremely valuable if you are trying to understand how society works,” Verhulst said….(More)”.

Declaration on Ethics and Data Protection in Artifical Intelligence

Curated on October 25, 2018 by Stefaan Verhulst

Declaration: “…The 40th International Conference of Data Protection and Privacy Commissioners considers that any creation, development and use of artificial intelligence systems shall fully respect human rights, particularly the rights to the protection of personal data and to privacy, as well as human dignity, non-discrimination and fundamental values, and shall provide solutions to allow individuals to maintain control and understanding of artificial intelligence systems.

The Conference therefore endorses the following guiding principles, as its core values to preserve human rights in the development of artificial intelligence:

Artificial intelligence and machine learning technologies should be designed, developed and used in respect of fundamental human rights and in accordance with the fairness principle, in particular by:
Considering individuals’ reasonable expectations by ensuring that the use of artificial intelligence systems remains consistent with their original purposes, and that the data are used in a way that is not incompatible with the original purpose of their collection,
taking into consideration not only the impact that the use of artificial intelligence may have on the individual, but also the collective impact on groups and on society at large,
ensuring that artificial intelligence systems are developed in a way that facilitates human development and does not obstruct or endanger it, thus recognizing the need for delineation and boundaries on certain uses,…(More)