Why traditional political parties are in trouble

Perceptive NYT article on the stress fractures now materialising in the two big political parties.

WASHINGTON — On the night that he conceded defeat in 1992 after the most successful independent presidential campaign of the last century, Ross Perot made it clear that he was not done shaking up the established order. “Believe me,” he declared, “the system needs some shocks.”

So perhaps it was only fitting that on the same week that Mr. Perot died nearly 27 years later, both of the two major political parties were being rattled by the aftershocks of the earthquake that his campaign represented. President Trump was busy quarreling with former Speaker Paul D. Ryan while the current speaker, Nancy Pelosi, was bickering with first-year House Democrats.

In both cases, those who represented the institutional order, Mr. Ryan and Ms. Pelosi, found themselves at odds with rabble-rousers within their own parties agitating for change from outside the traditional system through the power of social media. This was not a week that showcased the competition between the parties but within them. The stress fractures that Mr. Perot identified a generation ago are tearing at the foundations of the Republican and Democratic Parties.

The same process is evident in the UK.

Fines don’t work. To control tech companies we have to hit them where it really hurts

Today’s Observer comment piece

If you want a measure of the problem society will have in controlling the tech giants, then ponder this: as it has become clear that the US Federal Trade Commission is about to impose a fine of $5bn (£4bn) on Facebook for violating a decree governing privacy breaches, the company’s share price went up!

This is a landmark moment. It’s the biggest ever fine imposed by the FTC, the body set up to police American capitalism. And $5bn is a lot of money in anybody’s language. Anybody’s but Facebook’s. It represents just a month of revenues and the stock market knew it. Facebook’s capitalisation went up $6bn with the news. This was a fine that actually increased Mark Zuckerberg’s personal wealth…

Read on

Data can be as toxic as fossil fuel reserves

This morning’s Observer column:

”Data is the new oil” is a tired metaphor designed to capture the fact that, just as the old economy ran on oil, so the new digital economy runs on data. Just as plentiful reserves of underground oil were good for oil companies, so the possession of masses of data would likewise be a great asset for tech companies lucky enough to have it. And whether or not they count it explicitly as an asset on their balance sheets, in practice it gives them a powerful bulwark against competitors and startups. It’s no longer enough for a couple of grad students to come up with a better search algorithm than Google’s, for example; they would also have to build a global network of massive server farms – and have acquired exabytes of data. So possession of large quantities of data greatly heightens the barrier to entry for competitors and thereby strengthens incumbents. The more data you have, the better.

The ICO’s recent fines, however, cast a shadow on this cosy scene. Possessing oodles of data is only an unalloyed good if you can protect it from thieves, hackers and other criminals. If you can’t, then that precious asset can suddenly turn toxic – just like fossil fuel reserves….

Read on

Networked totalitarianism

My Observer review of Kai Strittmatter’s remarkable new book.

Kai Strittmatter is a German journalist who writes for Süddeutsche Zeitung and is currently based in Copenhagen. From 1997 until recently, he had been a foreign correspondent in Beijing. Prior to those postings, he had studied sinology and journalism in Munich, Xi’an and Taipei. So he knows China rather well. Having read his remarkable book, it’s reasonable to assume that he will not be passing through any Chinese airport in the foreseeable future. Doing so would not be good for his health, not to mention his freedom.

We Have Been Harmonised is the most accessible and best informed account we have had to date of China’s transition from what scholars such as Rebecca MacKinnon used to call “networked authoritarianism” to what is now a form of networked totalitarianism. The difference is not merely semantic. An authoritarian regime is relatively limited in its objectives: there may be elections, but they are generally carefully managed; individual freedoms are subordinate to the state; there is no constitutional accountability and no rule of law in any meaningful sense.
Sign up for Bookmarks: discover new books in our weekly email
Read more

Totalitarianism, in contrast, prohibits opposition parties, restricts opposition to the state and exercises an extremely high degree of control over public and private life…

Read on

Facebook’s data-powered navel-gazing

From Recode…

Facebook built internal tools to manage its damaged reputation when it should’ve been managing bigger issues. A Bloomberg report found that starting in 2016, Facebook developed and deployed two internal tools, dubbed Stormchaser and Night’s Watch, to track and combat misinformation about the company and its CEO Mark Zuckerberg. The tools also measured shifting public sentiment towards Facebook and its leaders.

Why it’s a big deal: Facebook was devoting its resources to managing its own reputation at a time when fake news and political manipulation were propagating on its platform.

What happens now: Facebook told Bloomberg it’s stopped using its Stormchaser tool, but the technology still exists. [Mark Bergen and Kurt Wagner / Bloomberg]

Chinese cheques

From Technology Review:

The People’s Bank of China is paying close attention to Libra, the digital currency Facebook has created. And it may inspire the bank to accelerate its plans to speed up its own project to develop a digital currency.

The news: The PBOC is paying “high attention” to Libra, according to Wang Xin, director of the bank’s research bureau. Speaking at an academic conference at the University of Peking, Wang expressed concern over how Libra might affect the world’s financial system if it takes off, according to the South China Morning Post: “Would it be able to function like money, and accordingly, have a large influence on monetary policy, financial stability, and the international monetary system?”

One thing China wants to know is what role the US dollar will play in the basket of fiat currencies that will supposedly back Libra coins. If it is most closely associated with the dollar, Wang said, “there would be in essence one boss, that is the US dollar and the United States. If so, it would bring a series of economic, financial, and even international political consequences.”

Security-theatre dialogue

From Tyler Cowen:

At Colorado Springs airport, on my way to Denver:

TSA official at security [pre-check, for that matter]: “We have to search your carry-on, it is suspicious that you have so many books.”

They searched every book.

TC: “Thank you, sir!”

I had fewer books in my carry-on than usual.

The heaviest book I had was Vasily Grossman’s Stalingrad, which is why I had fewer books than usual.

Tyler reads more (and more quickly) than any person I know —with the possible exception of Diane Coyle.

The soft underbelly of social media

Sarah Roberts has just published Behind the Screen: Content Moderation in the Shadows of Social Media, a major study of the impact of content ‘moderation’ on those who clean up social media so that the rest of us are not traumatised or scandalised by what appears in our feeds. Isaac Chotiner has an interesting interview with her in the New Yorker which includes this brief exchange:

You also go to the Philippines in this book and you talk to people from other countries, in Mexico, for example. What are the consequences of outsourcing these jobs in terms of the quality of the work being done? And I don’t ask that to imply that people abroad can’t do a job as well.

I think there is a precedent for outsourcing this type of service work, and we see that in the call-center industry. The same kinds of problems that are present in that work are present in this particular context. So that would be things like the dissonance and distance culturally and linguistically, contextually, and politically, for a group of people that are being asked to adjudicate and make decisions about material that emanates from one place in the world and is destined for another, that may have absolutely nothing to do with their day-to-day life.

I think a second thing is that the marketplace has chased a globalization solution for the same reasons it has in other industries, which are the issues of: Where can we get the cheapest labor? What countries are lax in terms of labor protections? Where is organizing low? Where is there a huge pool of people for whom this job might be appealing because it’s better than the other jobs on offer? It’s not a simple case of everyone in the Philippines who does this work is exploited, and I was really trying hard not to make that claim in the book. But, at the same time, the United States sends the work to the Philippines for a reason. It sends the work there because Filipino people have a long-standing relationship, so to speak, with the United States, that means that they have a better facility to understand the American context. That’s actually been in the favor of most people in the Philippines.

It’s worrisome to see those kinds of colonial traditions and practices picked up again, especially in this digital marketplace, this marketplace of the mind that was supposed to be deliverance from so many of the difficult working conditions of the twentieth century. So I think that’s the big thing about the way that this plays out on the global stage. The companies have a problem that they don’t have enough people to do the work. And so they are pulling out all the stops in a way to find people to do the work, but it’s still not nearly enough.

What could be done to make the lives of these workers better, given that this is a job that needs to be done? And it needs to be done by smart people doing it well, who need to be very well-trained.

This is a question that I’ve often posed to the workers themselves because I certainly am not possessed of the answers on my own. They want better pay. And I think we can read that in a lot of ways: they want better pay, they want to be respected. The nature of the way the work has been designed has been for the work to be secret. In many cases, their N.D.A. precludes them from even talking about the work. And the industry itself formulated the job as a source of shame in that sense, an industry source of shame. They were not eager to tout the efforts of these people, and so instead they hid them in the shadows. And, if nothing else, that was a business decision and a value judgment that could have gone another way. I think there’s still a chance that we could understand the work of these people in a different way and value it differently, collectively. And we could ask that the companies do that as well.

Good interview. Splendid book.

Sheep, goats and hotel WiFi

This morning’s Observer column:

You’ve just arrived at the hotel after a delayed flight and a half-hour wrangle with the car-hire firm. And then you remember that you’ve forgotten to pay last month’s credit card bill, and there’ll be an interest charge if you wait until you’re back at base. But – hey! – you can do it online and help is at hand. The receptionist is welcoming and helpful. They have wifi and it’s free. Relieved, you ask for the password. “Oh, you don’t need one,” he replies. “Just type in your room number and click the box.”

Phew! Problem solved. Er, not necessarily. At this point the human race divides into two groups. Call them sheep and goats. Sheep are sweet, trusting folks who like to think well of their fellow humans. Surely that helpful receptionist would not knowingly offer a dangerous service. Also, they find digital technology baffling and intimidating. And they cannot imagine why anything they do online might be of interest to anyone.
2017’s top business stories: Whole Foods, hackers and a giant rabbit
Read more

Goats, on the other hand, have nasty, suspicious minds…

Read on