The Trouble With Disclosure: It Doesn’t Work


Jesse Eisinger at ProPublica: “Louis Brandeis was wrong. The lawyer and Supreme Court justice famously declared that sunlight is the best disinfectant, and we have unquestioningly embraced that advice ever since.
All this sunlight is blinding. As new scholarship is demonstrating, the value of all this information is unproved. Paradoxically, disclosure can be useless — and sometimes actually harmful or counterproductive.
“We are doing disclosure as a regulatory move all over the board,” says Adam J. Levitin, a law professor at Georgetown, “The funny thing is, we are doing this despite very little evidence of its efficacy.”…
Of course, some disclosure works. Professor Levitin cites two examples. The first is an olfactory disclosure. Methane doesn’t have any scent, but a foul smell is added to alert people to a gas leak. The second is ATM. fees. A study in Australia showed that once fees were disclosed, people avoided the high-fee machines and took out more when they had to go to them.
But to Omri Ben-Shahar, co-author of a recent book, ” More Than You Wanted To Know: The Failure of Mandated Disclosure,” these are cherry-picked examples in a world awash in useless disclosures. Of course, information is valuable. But disclosure as a regulatory mechanism doesn’t work nearly well enough, he argues.
First, it really works only when things are simple. As soon as transactions become complex, disclosure starts to stumble. Buying a car, for instance, turns out to be several transactions: the purchase itself, the financing, maybe the trade-in of old car and various insurance and warranty decisions. These are all subject to various disclosure rules, but making the choices clear and useful has proved nigh impossible.
In complex transactions, we then must rely on intermediaries to give us advice. Because they are often conflicted, they, too, become subject to disclosure obligations. Ah, even more boilerplate to puzzle over!
And then there’s the harm. Over the years, banks that sold complex securities often stuck impossible-to-understand clauses deep in prospectuses that “disclosed” what was really going on. When the securities blew up, as they often did, banks then fended off lawsuits by arguing they had done everything the law required and were therefore not liable.
“That’s the harm of disclosure,” Professor Ben-Shahar said. “It provides a safe harbor for practices that smell bad. It sanitizes every bad practice.”
The anti-disclosure movement is taking on the ” Nudge” school, embraced by the Obama administration and promoted most prominently by Cass R. Sunstein, a scholar at Harvard, and Richard H. Thaler, an economist at the University of Chicago. These nudgers believe that small policies will prod people to do what’s in their best interests.
The real-world evidence in favor of nudging is thin. …
The ever-alluring notion is that we are just one or two changes away from having meaningful disclosure. If we could only have annual Securities and Exchange Commission filings in plain English, we could finally understand what’s going on at corporations. A University of San Diego Law School professor, Frank Partnoy, and I called for better bank disclosure in an article in The Atlantic a few years ago.
Professor Ben-Shahar mocks it. ” ‘Plain English!’ ‘Make it simple.’ That is the deus ex machina, the god that will solve everything,” he said.
Complex things are, sadly, complex. A mortgage is not an easy transaction to understand. People are not good at predicting their future behavior and so don’t know what options are best for them. “The project of simplification is facing a very poor empirical track record and very powerful theoretical problem,” he said.
What to do instead? Hard and fast rules. If lawmakers want to end a bad practice, ban it. Having them admit it is not enough. (More)”

What Is the Purpose of Society?


Mark Bittman in the New York Times:“….Think about it this way: There are two kinds of operating systems, hard and soft. A clock is a hard system. We know what it’s for, we know when it isn’t working, and we know that 10 clock experts would agree on how to fix it — and could do so.
Soft systems, like agriculture and economics, are more complex. We don’t all agree on goals, and we don’t agree on whether things are working or in need of repair. For example, is contemporary American agriculture a system for nourishing people and providing a livelihood for farmers? Or is it one for denuding the nation’s topsoil while poisoning land, water, workers and consumers and enriching corporations? Our collective actions would indicate that our principles favor the latter; that has to change.
Defining goals that matter to people is critical, because the most powerful way to change a complex, soft system is to change its purpose. For example, if we had a national agreement that food is not just a commodity, a way to make money, but instead a way to nourish people and the planet and a means to safeguard our future, we could begin to reconfigure the system for that purpose. More generally, if we agreed that human well-being was a priority, creating more jobs would not ring so hollow.
Sadly, even if we did agree, complex systems are not subject to clever fixes. Rather, changes often have unexpected results (that shouldn’t happen with a clock), so change necessarily remains incremental. But without an agreement on goals, without statements of purpose, we are going to continue to see changes that are not in the interest of the majority. Increasingly, it’s corporations and not governments that are determining how the world works. As unrepresentative as government might seem right now, there is at least a chance of improving it, whereas corporations will always act in their own interests.
It’s been adequately demonstrated that more than minor tweaks are needed to improve life for most people. Let’s try to make sense of where the world is now instead of relying on outdated doctrines like “capitalism” and “socialism” created by people who had no idea what the 21st century would look like. Let’s ambitiously and publicly philosophize — as the conservatives do — and think about what shape a sensible political economy might take.
The big ideas and strategies for how we should manage society and thrive with the planet are not a set of rules handed down from on high. To develop them for now and the future is a major challenge, and we — progressives and our allies — have to work harder at it. No one is going to figure it out for us….(More)”.

Can Selfies Save Nutrition Science?


Trevor Butterworth at Stats.org: “You may have never heard of the Energy Balance Working Group, but this collection of 45 experts on nutrition, exercise, biochemistry, and other related disciplines have collectively thrown a “House-like” wrench into the research literature on everything from obesity to cancer and heart disease. Gregory House, the fictional and fantastically brilliant physician played by Hugh Laurie in the eponymous TV show frequently found his patients wanting in the court of self-reported truth: “I’ve found that when you want to know the truth about someone that someone is probably the last person you should ask.”
This is more or less what the Energy Balance Working Group have concluded in an “expert report” recently published in the International Journal of Obesity. If you want to know the truth about how much someone eats and exercises that someone is probably the last person you should ask….The problem is that self-reporting is a cheap and convenient source of data for research, while more accurate alternatives are either expensive and challenging or, as yet, more promise than reality (see sidebar)….
“There are at least two categories of solutions on the horizon. In one category, there are wearable monitoring devices that can collect objective, real-time data. Examples in the works or in use include photographic food diaries, records of chewing and swallowing behavior, and evaluating the time and intensity of movement using accelerometers and GPS, among others. It is important to note that there are still challenges converting these measurements into reliable estimates of energy intake and expenditure, but work is ongoing… David Allison, Distinguished Professor, Quetelet Endowed Professor of Public Health, University of Alabam”…(More)

U.S. to release indexes of federal data


The Sunlight Foundation: “For the first time, the United States government has agreed to release what we believe to be the largest index of government data in the world.
On Friday, the Sunlight Foundation received a letter from the Office of Management and Budget (OMB) outlining how they plan to comply with our FOIA request from December 2013 for agency Enterprise Data Inventories. EDIs are comprehensive lists of a federal agency’s information holdings, providing an unprecedented view into data held internally across the government. Our FOIA request was submitted 14 months ago.
These lists of the government’s data were not public, however, until now. More than a year after Sunlight’s FOIA request and with a lawsuit initiated by Sunlight about to be filed, we’re finally going to see what data the government holds.
Sunlight’s FOIA request built on President Obama’s Open Data Executive Order, which first required agency-wide data indexes to be built and maintained. According to implementation guidance prepared in response to the executive order, Enterprise Data Inventories are intended to help agencies “develop a clear and comprehensive understanding of what data assets they possess” by accounting “for all data assets created or collected by the agency.”
At the time, we argued that “without seeing the entire EDIs, it is impossible for the public to know what data is being collected and stored by the government and to debate whether or not that data should be made public.”
When OMB initially responded to our request, it didn’t cite an exemption to FOIA. Instead, OMB directed us to approach each agency individually for its EDIs. This, despite the fact that the agencies are required to submit their updated EDIs to OMB on a quarterly basis.
With that in mind, and with the help of some very talented lawyers from the firm of Garvey Schubert Barer, we filed an administrative appeal with OMB and prepared for court. We were ready to fight for the idea that government data cannot be leveraged to its fullest if the public only knows about a fraction of it.
We hoped that OMB would recognize that open data is worth the work it takes to disclose the indexes. We’re pleased to say that our hope looks like it is becoming reality.
Since 2013, federal agencies have been required to construct a list of all of their major data sets, subject only to a few exceptions detailed in President Obama’s executive order as well as some information exempted from disclosure under the FOIA.
Having access to a detailed index of agencies’ data is a key step in aiding the use and utility of government data. By publicly describing almost all data the government has in an index, the Enterprise Data Inventories should empower IT management, FOIA requestors and oversight — by government officials and citizens alike….(More)”.

More Power to the People: How Cities Are Letting Data Flow


Stephen Taylor at People4SmarterCities: “Smart cities understand that engaging the public in decision-making is vital to enhancing services and ensuring accountability. Here are three ideas that show how cities are embracing new technologies and opening up data to spur civic participation and improve citizens’ lives.

 City Texts Help Keep Food on the Table
In San Francisco, about a third of the 52,000 people that receive food stamps are disenrolled from the program because they miss certain deadlines, such as filing quarterly reports with the city’s Human Services Agency. To help keep recipients up to date on their status, the nonprofit organization Code for America worked with the city agency to create Promptly, an open-source software platform that sends alerts by text message when citizens need to take action to keep their benefits. Not only does it help ensure that low-income residents keep food on the table, it also helps the department run more efficiently as less staff time is spent on re-enrollments.
Fired Up in Los Angeles Over Open Data
For the Los Angeles Fire Department, its work is all about responding to citizens. Not only does it handle fire and medical calls, it’s also the first fire agency in the U.S. to gather and post data on its emergency-response times on the Internet through a program called FireStat. The data gives citizens the opportunity to review metrics such as the amount of time it takes for stations to process emergency calls, the time for firefighters to leave the station and the travel time to the incident for each of its 102 firehouses throughout the city. The goal of FireStat is to see where and how response times can be improved, while increasing management accountability….(More)”

The Future of Open and How To Stop It


Blogpost by Steve Song: “In 2008, Jonathan Zittrain wrote a book called The Future of the Internet and How To Stop It. In it he argued that the runaway success of the Internet is also the cause of it being undermined, that vested interests were in the process of locking down the potential for innovation by creating walled gardens.  He wrote that book because he loved the Internet and the potential it represents and was concerned about it going down a path that would diminish its potential.  It is in that spirit that I borrow his title to talk about the open movement.  By the term open movement, I am referring broadly to the group of initiatives inspired by the success of Open Source software that led to initiatives as varied as the Creative Commons, Open Data, Open Science, Open Access, Open Corporates, Open Government, the list goes on.   I write this because I love open initiatives but I fear that openness is in danger of becoming its own enemy as it becomes an orthodoxy difficult to question.
In June of last year, I wrote an article called The Morality of Openness which attempted to unpack my complicated feelings about openness.  Towards the end the essay, I wondered whether the word trust might not be a more important word than open for our current world.  I am now convinced of this.  Which is not to say that I have stopped believing in openness but openness; I believe openness is a means to an end, it is not the endgame.  Trust is the endgame.  Higher trust environments, whether in families or corporations or economies, tend to be both more effective and happier.  There is no similar body of evidence for open and yet open practices can be a critical element on the road to trust. Equally, when mis-applied, openness can achieve the opposite….
Openness can be a means of building trust.  Ironically though, if openness as behaviour is mandated, it stops building trust.  Listen to Nobel Laureate Vernon Smith talk about why that happens.  What Smith argues (building on the work of an earlier Smith, Adam Smith’s Theory of Moral Sentiments) is that intent matters.  That as human beings, we signal our intentions to each other with our behaviour and that influences how others behave.  When intention is removed by regulating or enforcing good behaviour, that signal is lost as well.
I watched this happen nearly ten years ago in South Africa when the government decided to embrace the success of Open Source software and make it mandatory for government departments to use Open Source software.  No one did.  It is choosing to share that make open initiatives work.  When you remove choice, you don’t inspire others to share and you don’t build trust.  Looking at the problem from the perspective of trust rather than from the perspective of open makes this problem much easier to see.
Lateral thinker Jerry Michalski gave a great talk last year entitled What If We Trusted You? in which he talked about how the architecture of systems either build or destroy trust.  He give a great example of wikipedia as an open, trust enabling architecture.  We don’t often think about what a giant leap of trust wikipedia makes in allowing anyone to edit it and what an enormous achievement it became…(More).”

R U There?


in the New Yorker on a new counselling service harnesses the power of the text message:” …. a person can contact Crisis Text Line without even looking at her phone. The number—741741—traces a simple, muscle-memory-friendly path down the left column of the keypad. Anyone who texts in receives an automatic response welcoming her to the service. Another provides a link to the organization’s privacy policy and explains that she can text “STOP” to end a conversation at any time. Meanwhile, the incoming message appears on the screen of Crisis Text Line’s proprietary computer system. The interface looks remarkably like a Facebook feed—pale background, blue banner at the top, pop-up messages in the lower right corner—a design that is intended to feel familiar and frictionless. The system, which receives an average of fifteen thousand texts a day, highlights messages containing words that might indicate imminent danger, such as “suicide,” “kill,” and “hopeless.”

Within five minutes, one of the counsellors on duty will write back. (Up to fifty people, most of them in their late twenties, are available at any given time, depending upon demand, and they can work wherever there’s an Internet connection.) An introductory message from a counsellor includes a casual greeting and a question about why the texter is writing in….(More)”

Training the next generation of public leaders


Thanks to the generous support of the Knight Foundation, this term the Governance Lab Academy – a training program designed to promote civic engagement and innovation – is launching a series of online coaching programs.
Geared to the teams and individuals inside and outside of government planning to undertake a new project or trying to figure out how to make an existing project even more effective and scalable, these programs are designed to help participants working in civic engagement and innovation develop effective projects from idea to implementation.
Convened by leading experts in their fields, coaching programs meet exclusively online once a week for four weeks or every other week for eight weeks. They include frequent and constructive feedback, customized and original learning materials, peer-to-peer support, mentoring by topic experts and individualized coaching from those with policy, technology, and domain expertise.
There is no charge to participants but each program is limited to 8-10 project teams or individuals.
You can see the current roster of programs below and check out the website for more information (including FAQs), to sign up and to suggest a new program.

Faculty includes: 

  • Brian Behlendorf, Managing Director at Mithril Capital Management and Co-Founder Apache
  • Alexandra Clare, Founder of Iraq Re:Coded
  • Brian Forde, Senior Former Advisor to the U.S. CTO, White House Office of Science Technology and Policy
  • Francois Grey,  Coordinator of the Citizen Cyberscience Centre, Geneva
  • Gavin Hayman, Executive Director of the Open Contracting Partnership
  • Clay Johnson, CEO of The Department for Better Technology and Former Presidential Innovation Fellow
  • Benjamin Kallos, New York City Council Member and Chair of the Committee on Governmental Operations of the New York City Council
  • Karim Lakhani, Lumry Family Associate Professor of Business Administration at the Harvard Business School
  • Amen Ra Mashariki, Chief Analytics Officer of New York City
  • Geoff Mulgan, Chief Executive of NESTA
  • Miriam Nisbet,  Former Director of the Office of Government Information Services
  • Beth Noveck, Founder and CEO of The GovLab
  • Tiago Peixoto, Open Government Specialist at The World Bank
  • Arnaud Sahuguet, Chief Technology Officer of The GovLab
  • Joeri van den Steenhoven, Co-Founder and Chief Research and Development Officer of MaRS Solutions Lab
  • Stefaan Verhulst, Co-Founder and Chief Research and Development Officer of The GovLab

Ebola: Call for more sharing of scientific data


at the BBC: “The devastation left by the Ebola virus in west Africa raises many questions for science, policy and international development. One issue that has yet to receive widespread media attention is the handling of genetic data on the virus. By studying its code, scientists can trace how Ebola leapt across borders, and how, like all viruses, it is constantly evolving and changing.

Yet, researchers have been privately complaining for months about the scarcity of genetic information about the virus that is entering the public domain….

At the heart of the issue is the scientific process. The main way scientists are rewarded for their work is through the quality and number of research papers they publish.
Data is only revealed for scrutiny by the wider scientific community when the research is published, which can be a lengthy process….
Dr Emma Thomson of the MRC-University of Glasgow centre for virus research says all journals publishing papers on Ebola must insist all data is released, as a collaborative approach could save lives.
“At the time of publication is really important – these days most people do it but not always and journals often insist (but not always),” she told me.
“A lot of Ebola sequencing has happened but the data hasn’t always been uploaded.
“It’s an international emergency so people need to get the data out there to allow it to be analysed in different ways by different labs.”
In the old days of the public private race to decode the first human genome, the mood was one of making data accessible to all for the good of science and society.
Genetic science and public attitudes have moved on, but in the case of Ebola, some are saying it may be time for a re think.
As Prof Paul Hunter, Professor of health protection at the University of East Anglia, put it: “It would be tragic if, during a crisis like this, data was not being adequately shared with the public health community.
“The rapid sharing of data could help enable more rapid control of the outbreak.”…(More)”

Surveying the citizen science landscape


Paper by Andrea Wiggins and Kevin Crowston in First Monday: “Citizen science has seen enormous growth in recent years, in part due to the influence of the Internet, and a corresponding growth in interest. However, the few stand-out examples that have received attention from media and researchers are not representative of the diversity of the field as a whole, and therefore may not be the best models for those seeking to study or start a citizen science project. In this work, we present the results of a survey of citizen science project leaders, identifying sub-groups of project types according to a variety of features related to project design and management, including funding sources, goals, participant activities, data quality processes, and social interaction. These combined features highlight the diversity of citizen science, providing an overview of the breadth of the phenomenon and laying a foundation for comparison between citizen science projects and to other online communities….(More).”