The Market Power of Technology: Understanding the Second Gilded Age

Curated on Posted on by Stefaan Verhulst

Book by Mordecai Kurz: “Since the 1980s, the United States has regressed to a level of economic inequality not seen since the Gilded Age in the late nineteenth century. At the same time, technological innovation has transformed society, and a core priority of public policy has been promoting innovation. What is the relationship between economic inequality and technological change?

Mordecai Kurz develops a comprehensive integrated theory of the dynamics of market power and income inequality. He shows that technological innovations are not simply sources of growth and progress: they sow the seeds of market power. In a free market economy with intellectual property rights, firms’ control over technology enables them to expand, attain monopoly power, and earn exorbitant profits. Competition among innovators does not eliminate market power because technological competition is different from standard competition; it results in only one or two winners. Kurz provides a pioneering analysis grounded on quantifying technological market power and its effects on inequality, innovation, and economic growth. He outlines what causes market power to rise and fall and details its macroeconomic and distributional consequences.

Kurz demonstrates that technological market power tends to rise, increasing inequality of income and wealth. Unchecked inequality threatens the foundations of democracy: public policy is the only counterbalancing force that can restrain corporate power, attain more egalitarian distribution of wealth, and make democracy compatible with capitalism. Presenting a new paradigm for understanding today’s vast inequalities, this book offers detailed proposals to redress them by restricting corporate mergers and acquisitions, reforming patent law, improving the balance of power in the labor market, increasing taxation, promoting upward mobility, and stabilizing the middle class…(More)”.

Semantic Media: Mapping Meaning on the Internet

Curated on Posted on by Stefaan Verhulst

Book by Andrew Iliadis: “Media technologies now provide facts, answers, and “knowledge” to people – search engines, apps, and virtual assistants increasingly articulate responses rather than direct people to other sources. 

 Semantic Media is about this emerging era of meaning-making technologies. Companies like Apple, Google, Facebook, Amazon, and Microsoft organize information in new media products that seek to “intuitively” grasp what people want to know and the actions they want to take. This book describes some of the insidious technological practices through which organizations achieve this while addressing the changing contexts of internet searches, and examines the social and political consequences of what happens when large companies become primary sources of information…(More)”.

Liquid Democracy. Two Experiments on Delegation in Voting

Curated on Posted on by Stefaan Verhulst

Paper by Joseph Campbell, Alessandra Casella, Lucas de Lara, Victoria R. Mooers & Dilip Ravindran: “Under Liquid Democracy (LD), decisions are taken by referendum, but voters are allowed to delegate their votes to other voters. Theory shows that in common interest problems where experts are correctly identified, the outcome can be superior to simple majority voting. However, even when experts are correctly identified, delegation must be used sparely because it reduces the variety of independent information sources. We report the results of two experiments, each studying two treatments: in one treatment, participants have the option of delegating to better informed individuals; in the second, participants can choose to abstain. The first experiment follows a tightly controlled design planned for the lab; the second is a perceptual task run online where information about signals’ precision is ambiguous. The two designs are very different, but the experiments reach the same result: in both, delegation rates are unexpectedly high and higher than abstention rates, and LD underperforms relative to both universal voting and abstention…(More)”.

Behavioural Economics and the Environment

Curated on Posted on by Stefaan Verhulst

Book edited by Alessandro Bucciol, Alessandro Tavoni and Marcella Veronesi: “Humans have long neglected to fully consider the impact of their behaviour on the environment. From excessive consumption of fossil fuels and natural resources to pollution, waste disposal, and, in more recent years, climate change, most people and institutions lack a clear understanding of the environmental consequences of their actions. The new field of behavioural environmental economics seeks to address this by applying the framework of behavioural economics to environmental issues, thereby rationalizing unexplained puzzles and providing a more realistic account of individual behaviour.

This book provides a complete and rigorous overview of environmental topics that may be addressed and, in many instances, better understood by integrating a behavioural approach. This volume features state-of-the-art research on this topic by influential scholars in behavioural and environmental economics, focussing on the effects of psychological, social and cognitive factors on the decision-making process. It presents research performed using different methods and data collection mechanisms (e.g. laboratory experiments, field experiments, natural experiments, online surveys) on a variety of environmental topics (e.g. sustainability, natural resources)…(More)”.

Code for What? Computer Science for Storytelling and Social Justice

Curated on Posted on by Stefaan Verhulst

Book by Clifford Lee and Elisabeth Soep: “Educators are urged to teach “code for all”—to make a specialized field accessible for students usually excluded from it. In this book, Clifford Lee and Elisabeth Soep instead ask the question, “Code for what?” What if coding were a justice-driven medium for storytelling rather than a narrow technical skill? What if “democratizing” computer science went beyond the usual one-off workshop and empowered youth to create digital products for social impact? Lee and Soep answer these questions with stories of a diverse group of young people in Oakland, California, who combine journalism, data, design, and code to create media that makes a difference.

These teenage and young adult producers created interactive projects that explored gendered and racialized dress code policies in schools; designed tools for LBGTQ+ youth experiencing discrimination; investigated facial recognition software and what can be done about it; and developed a mobile app to promote mental health through self-awareness and outreach for support, and more, for distribution to audiences that could reach into the millions. Working with educators and media professionals at YR Media, an award-winning organization that helps young people from underserved communities build skills in media, journalism, and the arts, these teens found their own vibrant answers to “why code?” They code for insight, connection and community, accountability, creative expression, joy, and hope…(More)”.

Public sector innovation has a “first mile” problem

Curated on Posted on by Stefaan Verhulst

Article by Catarina Tully, and Giulio Quaggiotto: “Even if progress has been uneven, the palette of innovation approaches adopted by the public sector has considerably expanded in the last few years: from new sources of data to behavioural science, from foresight to user-centred design, from digital transformation to system thinking. And yet, the frustration of many innovation champions within the government is palpable. We are all familiar with innovation graveyards and, in our learning journeys, probably contributed to them in spite of all best intentions:

  • Dashboards that look very “smart” and are carefully tended to by few specialists but never used by their intended target audience: decision-makers.
  • Prototypes or experiments that were developed by an innovation unit and meant to be handed over to a line ministry or city department but never were.
  • Beautifully crafted scenarios and horizon scanning reports that last the length of a press conference or a ribbon-cutting event and are quickly put on the shelves after that.

The list could go on and on.

Innovation theatre is a well known malaise (paraphrasing Sean McDonald: “the use of [technology] interventions that make people feel as if a government—and, more often, a specific group of political leaders—is solving a problem, without it doing anything to actually solve that problem.”)

In the current climate, the pressure to “scale” quick-fixes in the face of multiple crises (as opposed to the hard work of addressing root causes, building trust, and structural transformations) is only increasing the appetite for performative theatre. Eventually, public intrapreneurs learn to use the theatre to their advantage: let the photo op with the technology gadget or the “futuristic” scenario take the centre stage so as to create goodwill with the powers that be, while you work quietly in the backstage to do the “right” thing…(More)”.

Storytelling Will Save the Earth

Curated on Posted on by Stefaan Verhulst

Article by Bella Lack: “…The environmental crisis is one of overconsumption, carbon emissions, and corporate greed. But it’s also a crisis of miscommunication. For too long, hard data buried environmentalists in an echo-chamber, but in 2023, storytelling will finally enable a united global response to the environmental crisis. As this crisis worsens, we will stop communicating the climate crisis with facts and stats—instead we will use stories like Timothy’s.  

Unlike numbers or facts, stories can trigger an emotional response, harnessing the power of motivation, imagination, and personal values, which drive the most powerful and permanent forms of social change. For instance, in 2019, we all saw the images of Notre Dame cathedral erupting in flames. Three minutes after the fire began, images of the incident were being broadcast globally, eliciting an immediate response from world leaders. That same year, the Amazon forest also burned, spewing smoke that spread over 2,000 miles and burning over one and a half football fields of rain forest every minute of every day—it took three weeks for the mainstream media to report that story. Why did the burning of Notre Dame warrant such rapid responses globally, when the Amazon fires did not? Although it is just a beautiful assortment of limestone, lead, and wood, we attach personal significance to Notre Dame, because it has a story we know and can relate to. That is what propelled people to react to it, while the fact that the Amazon was on fire elicited nothing…(More)”.

Storytelling allows us to make sense of the world. 

Universal Access and Its Asymmetries

Curated on Posted on by Stefaan Verhulst

Book by Harmeet Sawhney and Hamid R. Ekbia: “Universal access—the idea that certain technologies and services should be extended to all regardless of geography or ability to pay—evokes ideals of democracy and equality that must be reconciled with the realities on the ground. The COVID-19 pandemic raised awareness of the need for access to high-speed internet service in the United States, but this is just the latest in a long history of debates about what should be made available and to whom. Rural mail delivery, electrification, telephone service, public schooling, and library access each raised the same questions as today’s debates about health care and broadband. What types of services should be universally available? Who benefits from extending these services? And who bears the cost?

Stepping beyond humanitarian arguments to conduct a clear-eyed, diagnostic analysis, this book offers some surprising conclusions. While the conventional approach to universal access looks primarily at the costs to the system and the benefits to individuals, Harmeet Sawhney and Hamid Ekbia provide a holistic perspective that also accounts for costs to individuals and benefits for systems. With a comparative approach across multiple cases, Universal Access and Its Asymmetries is an essential exploration of the history, costs, and benefits of providing universal access to technologies and services. With a fresh perspective, it overturns common assumptions and offers a foundation for making decisions about how to extend service—and how to pay for it…(More)”.

Developing new models for social transformation

Curated on Posted on by Stefaan Verhulst

Report by Sarah Pearson: We live in unprecedented times. A period where globalisation has supported relative peace and growing prosperity. Where technological innovation has transformed social connectivity, democratised access to information and power, and driven new industry and jobs. The current pandemic, geopolitical power struggles, and a widening disparity in the distribution of the benefits of technology, however, threatens this progression. Many people have been, and many more are being left behind, with the recent COVID-19 pandemic seriously affecting progress in areas such as gender equality. Innovation, from an operational, business model, technological and societal perspective, is poised and ripe to help. This research focused on how this innovation could be applied to philanthropies seeking to address social change, overcome disadvantage, and build Equality of Opportunity.

Opportunities abound: starting with how we lead and govern in Foundations so that we unleash creativity and opportunity, throughout the organisation and externally; how we become more open and access new impactful ideas we would not have dreamt of without looking more widely; how we fund differently in order to make the most of our corpus, apply a gender lens, provide more than financial resources,
and support long term impact through new funding models; how we manage programs with sufficient flexibility to allow for unforeseen impact and experimentation by those we support; with whom and how we partner to deliver greater systemic change, and how to engage in an inclusive ecosystem of impact; how we leverage data to understand the issues, provide an asset for innovation, and measure our impact; and crucially how we set up for a diverse, experimental, learning culture. And in all of this, how we connect to and empower those with lived expertise to build economic self-determination, and combine with other expertise to grow inclusive problem-solving communities…(More)”.

Seemingly contrasting disciplines

Curated on Posted on by Stefaan Verhulst

Blog by Andreas Pawelke: “Development organizations increasingly embrace systems thinking (and portfolio approaches) in tackling complex challenges.

At the same time, there is a growing supply of (novel) data sources and analytical methods available to the development sector.

Little evidence exists, however, of these two seemingly contrasting disciplines to be combined by development practitioners for systems transformation with little progress made since 2019 when Thea Snow called for system thinkers and data scientists to work together.

This is not to say that system thinkers disregard data in their work. A range of data types is used, in particular the thick, rich, qualitative data from observations, deep listening and micro-narratives. And already back in 2013, MIT researchers organized an entire conference around big data and systems thinking.

When it comes to the use of non-traditional data in the work of system innovators in international development, however, there seems to be little in terms of examples and experiences.

Enhancing system innovation?

Is there a (bigger) role to play for non-traditional data in the systems work of development organizations?

Let’s start with definitions:

A system is an interconnected set of elements that form a unified whole or serve a function.

Systems thinking is about recognizing and taking into account the complexity of the world while trying to understand how the elements of a system are interconnected and how they influence each other.

System innovation emphasizes the act of changing (shifting) systems through innovations to a system (transformation), not within a system (improvement).

Non-traditional data refers to data that is digitally captured, mediated or observed. Such data is often (but not always) unstructured, big and used as proxies for purposes unrelated to its initial collection. We’re talking about the large quantities of digital data generated from our digital interactions and transactions but also (more or less) novel sources like satellites and drones that generate data that is readily available at large spatial and temporal scales.

There are at least three ways how non-traditional data could be used to enhance the practice of system innovation in the development sector:

  1. Observe: gain a better understanding of a system
  2. Shift: identify entry points of interventions and model potential outcomes
  3. Learn: measure and observe changes in a system over time..(More)”