Revisiting the causal effect of democracy on long-run development

Curated on Posted on by Stefaan Verhulst

Blog post by Markus Eberhardt: “In a recent paper, Acemoglu et al. (2019), henceforth “ANRR”, demonstrated a significant and large causal effect of democracy on long-run growth. By adopting a simple binary indicator for democracy, and accounting for the dynamics of development, these authors found that a shift to democracy leads to a 20% higher level of development in the long run.1

The findings are remarkable in three ways: 

  1. Previous research often emphasised that a simple binary measure for democracy was perhaps “too blunt a concept” (Persson and Tabellini 2006) to provide robust empirical evidence.
  2.  Positive effects of democracy on growth were typically only a “short-run boost” (Rodrik and Wacziarg 2005). 
  3. The empirical findings are robust across a host of empirical estimators with different assumptions about the data generating process, including one adopting a novel instrumentation strategy (regional waves of democratisation).

ANRR’s findings are important because, as they highlight in a column on Vox, there is “a belief that democracy is bad for economic growth is common in both academic political economy as well as the popular press.” For example, Posner (2010) wrote that “[d]ictatorship will often be optimal for very poor countries”. 

The simplicity of ANRR’s empirical setup, the large sample of countries, the long time horizon (1960 to 2010), and the robust positive – and remarkably stable – results across the many empirical methods they employ send a very powerful message against such doubts that democracy does cause growth.

I agree with their conclusion, but with qualifications. …(More)”.

Finding Crtl: Visions for the Future Internet

Curated on Posted on by Stefaan Verhulst

Nesta: “In March 2019, the World Wide Web turned thirty, and October will mark the fiftieth anniversary of the internet itself. These anniversaries offer us an important opportunity to reflect on the internet’s history, but also a chance to ponder its future.

While early internet pioneers dreamed of an internet that would be open, free and decentralised, the story of the internet today is mostly a story of loss of control. Just a handful of companies determine what we read, see and buy, where we work and where we live, who we vote for, who we love, and who we are. Many of us feel increasingly uneasy about these developments. We live in a world where new technologies happen to us; the average person has very little agency to change things within the current political and economic parameters.

Yet things don’t have to be this way. In a time where the future of the internet is usually painted as bleak and uncertain, we need positive visions about where we go next.

As part of the Next Generation Internet (NGI) initiative – the European Commission’s new flagship programme working on building a more democratic, inclusive and resilient internet – we have created this “visions book”, a collection of essays, short stories, poetry and artworks from over 30 contributors from 15 countries and five continents. Each contributor has a unique background, as most were selected via an open call for submissions held last autumn. As such, the book collects both established and emerging voices, all reflecting on the same crucial questions: where did we come from, but more importantly, where do we go next?

The NGI hopes to empower everyone to take active control in shaping the future: the internet does not just belong to those who hold power today, but to all of us….(More)”.

Policies as information carriers: How environmental policies may change beliefs and consequent behavior

Curated on Posted on by Stefaan Verhulst

Paper by Ann-Kathrin Koessler and Stefanie Engel: “This paper discusses how policy interventions not only alter the legal and financial framework in which an individual is operating, but can also lead to changes in relevant beliefs. We argue that such belief changes in how an individual perceives herself, relevant others, the regulator and/or the activity in question can lead to behavioral changes that were neither intended nor expected when the policy was designed.

In the environmental economics literature, these secondary impacts of conventional policy interventions have not been systematically reviewed. Hence, we intend to raise awareness of these effects. In this paper, we review relevant research from behavioral economics and psychology, and identify and discuss the domains for which beliefs can change. Lastly, we discuss design options with which an undesired change in beliefs can be avoided when a new policy is put into practice….(More)”

Many Across the Globe Are Dissatisfied With How Democracy Is Working

Curated on Posted on by Stefaan Verhulst

Pew Research Center: “Anger at political elites, economic dissatisfaction and anxiety about rapid social changes have fueled political upheaval in regions around the world in recent years. Anti-establishment leaders, parties and movements have emerged on both the right and left of the political spectrum, in some cases challenging fundamental norms and institutions of liberal democracy. Organizations from Freedom House to the Economist Intelligence Unit to V-Demhave documented global declines in the health of democracy.

As previous Pew Research Center surveys have illustrated, ideas at the core of liberal democracy remain popular among global publics, but commitment to democracy can nonetheless be weak. Multiple factors contribute to this lack of commitment, including perceptions about how well democracy is functioning. And as findings from a new Pew Research Center survey show, views about the performance of democratic systems are decidedly negative in many nations. Across 27 countries polled, a median of 51% are dissatisfied with how democracy is working in their country; just 45% are satisfied.

Assessments of how well democracy is working vary considerably across nations. In Europe, for example, more than six-in-ten Swedes and Dutch are satisfied with the current state of democracy, while large majorities in Italy, Spain and Greece are dissatisfied.

To better understand the discontent many feel with democracy, we asked people in the 27 nations studied about a variety of economic, political, social and security issues. The results highlight some key areas of public frustration: Most believe elections bring little change, that politicians are corrupt and out of touch and that courts do not treat people fairly. On the other hand, people are more positive about how well their countries protect free expression, provide economic opportunity and ensure public safety.

We also asked respondents about other topics, such as the state of the economy, immigration and attitudes toward major political parties. And in Europe, we included additional questions about immigrants and refugees, as well as opinions about the European Union….(More)”.

Trust, Control, and the Economics of Governance

Curated on Posted on by Stefaan Verhulst

Book by Philipp Herold: “In today’s world, we cooperate across legal and cultural systems in order to create value. However, this increases volatility, uncertainty, complexity, and ambiguity as challenges for societies, politics, and business. This has made governance a scarce resource. It thus is inevitable that we understand the means of governance available to us and are able to economize on them. Trends like the increasing role of product labels and a certification industry as well as political movements towards nationalism and conservatism may be seen as reaction to disappointments from excessive cooperation. To avoid failures of cooperation, governance is important – control through e.g. contracts is limited and in governance economics trust is widely advertised without much guidance on its preconditions or limits.

This book draws on the rich insight from research on trust and control, and accommodates the key results for governance considerations in an institutional economics framework. It provides a view on the limits of cooperation from the required degree of governance, which can be achieved through extrinsic motivation or building on intrinsic motivation. Trust Control Economics thus inform a more realistic expectation about the net value added from cooperation by providing a balanced view including the cost of governance. It then becomes clear how complex cooperation is about ‘governance accretion’ where limited trustworthiness is substituted by control and these control instances need to be governed in turn.

Trust, Control, and the Economics of Governance is a highly necessary development of institutional economics to reflect progress made in trust research and is a relevant addition for practitioners to better understand the role of trust in the governance of contemporary cooperation-structures. It will be of interest to researchers, academics, and students in the fields of economics and business management, institutional economics, and business ethics….(More)”.

Politics and Technology in the Post-Truth Era

Curated on Posted on by Stefaan Verhulst

Book edited by Anna Visvizi and Miltiadis D. Lytras: “Advances in information and communication technology (ICT) have directly impacted the way in which politics operates today. Bringing together research on Europe, the US, South America, the Middle East, Asia and Africa, this book examines the relationship between ICT and politics in a global perspective.

Technological innovations such as big data, data mining, sentiment analysis, cognitive computing, artificial intelligence, virtual reality, augmented reality, social media and blockchain technology are reshaping the way ICT intersects with politics and in this collection contributors examine these developments, demonstrating their impact on the political landscape. Chapters examine topics such as cyberwarfare and propaganda, post-Soviet space, Snowden, US national security, e-government, GDPR, democratization in Africa and internet freedom.


Providing an overview of new research on the emerging relationship between the promise and potential inherent in ICT and its impact on politics, this edited collection will prove an invaluable text for students, researchers and practitioners working in the fields of Politics, International Relations and Computer Science…..(More)”

How nudge theory is ageing well

Curated on Posted on by Stefaan Verhulst

Julian Baggini at the Financial Times: “A decade ago, Cass Sunstein and Richard Thaler’s book Nudge was on the desk of every serious politician and policy wonk. Its central thesis was alluringly simple: by changing the environment in which we make decisions — the “choice architecture” — people could be encouraged to do things that were good for them and for society without governments compelling them to do anything.

The idea hit the liberal sweet-spot, promising maximum social impact for minimal interference with personal freedom. In 2010, Britain’s government set up its Behavioural Insights Team — popularly known as the “nudge unit” — to put these ideas into practice.

Around the world, others followed. Sunstein is justly proud that 10m poor American children now get free breakfast and lunch during the academic year as a result of just one such intervention making enrolment for free school meals automatic.

Ten years on, Sunstein has produced two new books to win over the unconverted and boost the faith of true believers. One, On Freedom, is a tiny, commuter-friendly pamphlet between hard covers. The other, Trusting Nudges, co-authored with the behavioural economist Lucia A Reisch, is a short, thoughtful, measured and important analysis of what citizens actually think about nudging and why that matters — albeit with the dry, academic furniture of endless tables, footnotes and technical appendices.

Despite the stylistic gulf between them, the two books are best read together as a response to those who would like to give nudges the nudge, claiming that they are covert, manipulative, an insult to human agency and place too much trust in governments and too little on human reason. Not only that, but for all the hype, nudges only work at the margins, delivering relatively minor results without having any major impact on poverty, inequity or inequality.

On Freedom economically and elegantly takes apart the accusation that nudges undermine liberty. Sunstein rightly points out that a nudge is only a nudge by definition if it leaves the nudged able to choose otherwise. For example, the system adopted by several jurisdictions to put people on organ donation registers by default carries with it the right to opt out. Nor are the best nudges covert.

There may not be a sign at the canteen telling you that healthy foods have been put at the front because that’s where you’re more likely to choose them but organisations that adopt this as a policy can and should do so openly. Sunstein’s most important argument is that “we cannot wish choice architecture away”: something has to be on the supermarket shelves that people tend to take more from, something has to be the default for benefit claims. The question is not whether we nudge but how we do so: with forethought or without….(More)”

Trivialization and Public Opinion: Slogans, Substance, and Styles of Thought in the Age of Complexity

Curated on Posted on by Stefaan Verhulst

Book by Oldrich Bubak and Henry Jacek: “Centering on public discourse and its fundamental lapses, this book takes a unique look at key barriers to social and political advancement in the information age. Public discourse is replete with confident, easy to manage claims, intuitions, and other shortcuts; outstanding of these is trivialization, the trend to distill multifaceted dilemmas to binary choices, neglect the big picture, gloss over alternatives, or filter reality through a lens of convenience—leaving little room for nuance and hence debate.

Far from superficial, such lapses are symptoms of deeper, intrinsically connected shortcomings inviting further attention. Focusing primarily on industrialized democracies, the authors take their readers on a transdisciplinary journey into the world of trivialization, engaging as they do so the intricate issues borne of a modern environment both enabled and constrained by technology. Ultimately, the authors elaborate upon the emerging counterweights to conventional worldviews and the paradigmatic alternatives that promise to help open new avenues for progress….(More)”.

Drones to deliver medicines to 12m people in Ghana

Curated on Posted on by Stefaan Verhulst

Neil Munshi in the Financial Times: “The world’s largest drone delivery network, ferrying 150 different medicines and vaccines, as well as blood, to 2,000 clinics in remote parts of Ghana, is set to be announced on Wednesday.

The network represents a big expansion for the Silicon Valley start-up Zipline, which began delivering blood in Rwanda in 2016 using pilotless, preprogrammed aircraft. The move, along with a new agreement in Rwanda signed in December, takes the company beyond simple blood distribution to more complicated vaccine and plasma deliveries.

“What this is going to show is that you can reach every GPS co-ordinate, you can serve everybody,” said Keller Rinaudo, Zipline chief executive. “Every human in that region or country [can be] within a 15-25 minute delivery of any essential medical product — it’s a different way of thinking about universal coverage.”

Zipline will deliver vaccines for yellow fever, polio, diptheria and tetanus which are provided by the World Health Organisation’s Expanded Project on Immunisation. The WHO will also use the company’s system for future mass immunisation programmes in Ghana.

Later this year, Zipline has plans to start operations in the US, in North Carolina, and in south-east Asia. The company said it will be able to serve 100m people within a year, up from the 22m that its projects in Ghana and Rwanda will cover.

In Ghana, Zipline said health workers will receive deliveries via a parachute drop within about 30 minutes of placing their orders by text message….(More)”.

Technology-facilitated Societal Consensus

Curated on Posted on by Stefaan Verhulst

Paper by Timotheus Kampik and Amro Najjar: “The spread of radical opinions, facilitated by homophilic Internet communities (echo chambers), has become a threat to the stability of societies around the globe. The concept of choice architecture–the design of choice information for consumers with the goal of facilitating societally beneficial decisions–provides a promising (although not uncontroversial) general concept to address this problem.

The choice architecture approach is reflected in recent proposals advocating for recommender systems that consider the societal impact of their recommendations and not only strive to optimize revenue streams.

However, the precise nature of the goal state such systems should work towards remains an open question. In this paper, we suggest that this goal state can be defined by considering target opinion spread in a society on different topics of interest as a multivariate normal distribution; i.e., while there is a diversity of opinions, most people have similar opinions on most topics. We explain why this approach is promising, and list a set of crossdisciplinary research challenges that need to be solved to advance the idea….(More)”.