The causal effect of trust


Paper by Björn Bartling, Ernst Fehr, David Huffman and Nick Netzer: “Trust affects almost all human relationships – in families, organizations, markets and politics. However, identifying the conditions under which trust, defined as people’s beliefs in the trustworthiness of others, has a causal effect on the efficiency of human interactions has proven to be difficult. We show experimentally and theoretically that trust indeed has a causal effect. The duration of the effect depends, however, on whether initial trust variations are supported by multiple equilibria.

We study a repeated principal-agent game with multiple equilibria and document empirically that an efficient equilibrium is selected if principals believe that agents are trustworthy, while players coordinate on an inefficient equilibrium if principals believe that agents are untrustworthy. Yet, if we change the institutional environment such that there is a unique equilibrium, initial variations in trust have short-run effects only. Moreover, if we weaken contract enforcement in the latter environment, exogenous variations in trust do not even have a short-run effect. The institutional environment thus appears to be key for whether trust has causal effects and whether the effects are transient or persistent…(More)”.

Crowdsourcing reliable local data


Paper by Jane Lawrence Sumner, Emily M. Farris, and Mirya R. Holman: “The adage “All politics is local” in the United States is largely true. Of the United States’ 90,106 governments, 99.9% are local governments. Despite variations in institutional features, descriptive representation, and policy making power, political scientists have been slow to take advantage of these variations. One obstacle is that comprehensive data on local politics is often extremely difficult to obtain; as a result, data is unavailable or costly, hard to replicate, and rarely updated.

We provide an alternative: crowdsourcing this data. We demonstrate and validate crowdsourcing data on local politics, using two different data collection projects. We evaluate different measures of consensus across coders and validate the crowd’s work against elite and professional datasets. In doing so, we show that crowd-sourced data is both highly accurate and easy to use. In doing so, we demonstrate that non-experts can be used to collect, validate, or update local data….All data from the project available at https://dataverse.harvard.edu/dataverse/2chainz …(More)”.

Babbage among the insurers: big 19th-century data and the public interest.


Wilson, D. C. S.  at the History of the Human Sciences: “This article examines life assurance and the politics of ‘big data’ in mid-19th-century Britain. The datasets generated by life assurance companies were vast archives of information about human longevity. Actuaries distilled these archives into mortality tables – immensely valuable tools for predicting mortality and so pricing risk. The status of the mortality table was ambiguous, being both a public and a private object: often computed from company records they could also be extrapolated from quasi-public projects such as the Census or clerical records. Life assurance more generally straddled the line between private enterprise and collective endeavour, though its advocates stressed the public interest in its success. Reforming actuaries such as Thomas Rowe Edmonds wanted the data on which mortality tables were based to be made publicly available, but faced resistance. Such resistance undermined insurers’ claims to be scientific in spirit and hindered Edmonds’s personal quest for a law of mortality. Edmonds pushed instead for an open actuarial science alongside fellow-travellers at the Statistical Society of London, which was populated by statisticians such as William Farr (whose subsequent work, it is argued, was influenced by Edmonds) as well as by radical mathematicians such as Charles Babbage. The article explores Babbage’s little-known foray into the world of insurance, both as a budding actuary but also as a fierce critic of the industry. These debates over the construction, ownership, and accessibility of insurance datasets show that concern about the politics of big data did not begin in the 21st century….(More)”.

Governance Indicators Approaches, Progress, Promise


Book by Helmut K. Anheier, Matthias Haber and Mark A. Kayser: “As difficult as it might seem to define governance, it appears to be that much more difficult to measure it. Since the World Bank Institute launched the Worldwide Governance Indicators in the late 1990s, the governance indicators field has flourished and experienced significant advances in terms of methodology, data coverage and quality, and policy relevance. Other major initiatives have added to a momentum that propelled research on governance indicators seen in few other academic fields in the economic and social sciences. Given these developments and the prominence and policy relevance the field of governance indicator research has achieved, the time is ripe to take stock and ask what has been accomplished, what the shortcomings and potentials might be, and what steps present themselves as a way forward.

This volume– the fifth edition in an annual series tackling different aspects of governance around the world– assesses what has been achieved, identifies strengths and weaknesses of current work, and points to issues that need to be tackled in order to advance the field, both in its academic importance as well as in its policy relevance. In short, the contributions to this volume explore the scope of existing governance indices and indicator frameworks, elaborate on current challenges in measuring and analysing governance, and consider how to overcome them….(More)”.

The Administrative State


Interview with Paul Tucker by Benedict King: “Iyour book, you place what you call the “administrative state” at the heart of the political dilemmas facing the liberal political order. Could you tell us what you mean by ‘the administrative state’ and the dilemmas it poses for democratic societies?

This is about the legitimacy of the structure of government that has developed in Western democracies. The ‘administrative state’ is simply the machinery for implementing policy and law. What matters is that much of it—including many regulators and central banks—is no longer under direct ministerial control. They are not part of a ministerial department. They are not answerable day-to-day, minute-by-minute to the prime minister or, in other countries, the president.

When I was young, in Europe at least, these arm’s-length agencies were a small part of government, but now they are a very big part. Over here, that transformation has come about over the past thirty-odd years, since the 1990s, whereas in America it goes back to the 1880s, and especially the 1930s New Deal reforms of President Roosevelt.

“The ‘administrative state’ is simply the machinery for implementing policy and law. ”

In the United Kingdom we used to call these agencies ‘quangos’, but that acronym trivialises the issue. Today, many—in the US, probably most—of the laws to which businesses and even individuals are subject are written and enforced by regulatory agencies, part of the administrative state, rather than passed by Parliament or Congress and enforced by the elected executive. That would surprise John Locke, Montesquieu and James Madison, who developed the principles associated with the separation of powers and constitutionalism.

To some extent, these changes were driven by a perceived need to turn to ‘expertise’. But the effect has been to shift more of our government away from our elected representatives and to unelected technocrats. An underlying premise at the heart of my book (although not something that I can prove) is that, since any and every part of government eventually fails—and may fail very badly, as we saw with the collapse of the financial system in 2008—there is a risk that people will get fed up with this shift to governance by unelected experts. The people will get fed up with their lives being affected so much by people who they didn’t have a chance to vote for and can’t vote out. If that happened, it would be dangerous as the genius of representative democracy is that it separates how we as citizens feel about the system of government from how we feel about the government of the day. So how can we avoid that without losing the benefits of delegation? That is what the debate about the administrative state is ultimately about: its dryness belies its importance to how we govern ourselves.

“The genius of representative democracy is that it separates how we as citizens feel about the system of government from how we feel about the government of the day”

It matters, therefore, that the array of agencies in the administrative state varies enormously in the degree to which they are formally insulated from politics. My book Unelected Power is about ‘independent agencies’, by which I mean an agency that is insulated day-to-day from both the legislative branch (Parliament or Congress) and also from the executive branch of government (the prime minister or president). Central banks are the most important example of such independent agencies in modern times, wielding a wide range of monetary and regulatory powers….(More + selection of five books to read)”.

Many Around the World Are Disengaged From Politics


Richard Wike and Alexandra Castillo at Pew Research Center: “An engaged citizenry is often considered a sign of a healthy democracy. High levels of political and civic participation increase the likelihood that the voices of ordinary citizens will be heard in important debates, and they confer a degree of legitimacy on democratic institutions. However, in many nations around the world, much of the public is disengaged from politics.

To better understand public attitudes toward civic engagement, Pew Research Center conducted face-to-face surveys in 14 nations encompassing a wide range of political systems. The study, conducted in collaboration with the Center for Strategic and International Studies (CSIS) as part of their International Consortium on Closing Civic Space (iCon), includes countries from Africa, Latin America, Europe, the Middle East and Southeast Asia. Because it does not represent every region, the study cannot reflect the globe as a whole. But with 14,875 participants across such a wide variety of countries, it remains a useful snapshot of key, cross-national patterns in civic life.

The survey finds that, aside from voting, relatively few people take part in other forms of political and civic participation. Still, some types of engagement are more common among young people, those with more education, those on the political left and social network users. And certain issues – especially health care, poverty and education – are more likely than others to inspire political action. Here are eight key takeaways from the survey, which was conducted from May 20 to Aug. 12, 2018, via face-to-face interviews.

Most people vote, but other forms of participation are much less common. Across the 14 nations polled, a median of 78% say they have voted at least once in the past. Another 9% say they might vote in the future, while 7% say they would never vote.

With at least 9-in-10 reporting they have voted in the past, participation is highest in three of the four countries with compulsory voting (Brazil, Argentina and Greece). Voting is similarly high in both Indonesia (91%) and the Philippines (91%), two countries that do not have compulsory voting laws.

The lowest percentage is found in Tunisia (62%), which has only held two national elections since the Jasmine Revolution overthrew long-serving President Zine El Abidine Ben Ali in 2011 and spurred the Arab Spring protests across the Middle East.

Chart showing that beyond voting, political participation is relatively low.

Attending a political campaign event or speech is the second most common type of participation among those surveyed – a median of 33% have done this at least once. Fewer people report participating in volunteer organizations (a median of 27%), posting comments on political issues online (17%), participating in an organized protest (14%) or donating money to a social or political organization (12%)….(More)”.

Crowdsourcing the vote: New horizons in citizen forecasting


Article by Mickael Temporão Yannick Dufresne Justin Savoie and Clifton van der Linden in International Journal of Forecasting: “People do not know much about politics. This is one of the most robust findings in political science and is backed by decades of research. Most of this research has focused on people’s ability to know about political issues and party positions on these issues. But can people predict elections? Our research uses a very large dataset (n>2,000,000) collected during ten provincial and federal elections in Canada to test whether people can predict the electoral victor and the closeness of the race in their district throughout the campaign. The results show that they can. This paper also contributes to the emerging literature on citizen forecasting by developing a scaling method that allows us to compare the closeness of races and that can be applied to multiparty contexts with varying numbers of parties. Finally, we assess the accuracy of citizen forecasting in Canada when compared to voter expectations weighted by past votes and political competency….(More)”.

Renovating democracy from the bottom up


Nathan Gardels at the Washington Post: “The participatory power of social media is a game changer for governance. It levels the playing field among amateurs and experts, peers and authorities and even challenges the legitimacy of representative government. Its arrival coincides with and reinforces the widespread distrust of elites across the Western world, ripening the historical moment for direct democracy.

For the first time, an Internet-based movement has come to power in a major country, Italy, under the slogan “Participate, don’t delegate!” All of the Five Star Movement’s parliamentarians, who rule the country in a coalition with the far-right League party, were nominated and elected to stand for office online. And they have appointed the world’s first minister for direct democracy, Riccardo Fraccaro.

In Rome this week, he explained the participatory agenda of Italy’s ruling coalition government to The WorldPost at a meeting of the Global Forum on Modern Direct Democracy. “Citizens must be granted the same possibility to actively intervene in the process of managing and administrating public goods as normally carried out by their elected representatives,” he enthused. “What we have witnessed in our democracy is a drift toward ‘partyocracy,’ in which a restricted circle of policymakers have been so fully empowered with decision-making capacity that they could virtually ignore and bypass the public will. The mere election of a representative every so many years is no longer sufficient to prevent this from happening. That is why our government will take the next step forward in order to innovate and enhance our democracy.”

Fraccaro went on: “Referenda, public petitions and the citizens’ ballot initiative are nothing other than the direct means available for the citizenry to submit laws that political parties are not willing to propose or to reject rules approved by political parties that are not welcome by the people. Our aim, therefore, is to establish the principles and practices of direct democracy alongside the system of representative government in order to give real, authentic sovereignty to the citizens.”

At the Rome forum, Deputy Prime Minister Luigi di Maio, a Five Star member, railed against the technocrats and banks he says are trying to frustrate the will of the people. He promised forthcoming changes in the Italian constitution to follow through on Fraccaro’s call for citizen-initiated propositions that will go to the public ballot if the legislature does not act on them.

The program that has so far emerged out of the government’s participatory agenda is a mixed bag. It includes everything from anti-immigrant and anti-vaccine policies to the expansion of digital networks and planting more trees. In a move that has unsettled the European Union authorities as well as Italy’s non-partisan, indirectly-elected president, the governing coalition last week proposed both a tax cut and the provision of a universal basic income — despite the fact that Italy’s long-term debt is already 130 percent of GDP.

The Italian experiment warrants close attention as a harbinger of things to come elsewhere. It reveals a paradox for governance in this digital age: the more participation there is, the greater the need for the counterbalance of impartial mediating practices and institutions that can process the cacophony of voices, sort out the deluge of contested information, dispense with magical thinking and negotiate fair trade-offs among the welter of conflicting interests….(More)”.

Democracy Disconnected: Participation and Governance in a City of the South


Book by Fiona Anciano and Laurence Piper: “Why is dissatisfaction with local democracy endemic, despite the spread of new participatory institutions? This book argues that a key reason is the limited power of elected local officials, especially to produce the City. City Hall lacks control over key aspects of city decision-making, especially under conditions of economic globalisation and rapid urbanisation in the urban South.

Demonstrated through case studies of daily politics in Hout Bay, Democracy Disconnected shows how Cape Town residents engage local rule. In the absence of democratic control, urban rule in the Global South becomes a complex and contingent framework of multiple and multilevel forms of urban governance (FUG) that involve City Hall, but are not directed by it. Bureaucratic governance coexists alongside market, developmental and informal forms of governance. This disconnect of democracy from urban governance segregates people spatially, socially, but also politically. Thus, while the residents of Hout Bay may live next to each other, they do not live with each other…(More)”.

Nervous States


Book by William Davies: “Why do we no longer trust experts, facts and statistics? Why has politics become so fractious and warlike? What caused the populist political upheavals of recent years?How can the history of ideas help us understand our present?

In this bold and far-reaching exploration of our new political landscape, William Davies reveals how feelings have come to reshape our world. Drawing deep on history, philosophy, psychology and economics, he shows how some of the fundamental assumptions that defined the modern world have dissolved. With advances in science and medicine, the division between mind and body is no longer so clear-cut. The spread of digital and military technology has left us not quite at war nor exactly at peace. In the murky new space between mind and body, between war and peace, lie nervous states: with all of us relying increasingly on feeling rather than fact.

In a book of profound insight and astonishing breadth, William Davies reveals the origins of this new political reality. Nervous States is a compelling and essential guide to the turbulent times we are living through….(More)”.