Open Cities: Popularity lessons for municipal politicians

Last Thursday I posted the Vancouver City motion that is being introduced today.

Prior to the posting the motion several of my friends wondered if the subject of open data, open cities and open source were niche issues, ones that wouldn’t attract the attention or care of the media, not to mention citizens. I’m not sure that this is, as of yet, a mainstream issue, but there is clear, vocal, engaged and growing constituency – that is surprisingly broad – supporting it.

For politicians (who are often looking for media attention), open-advocates (who are looking for ways to get politicians attention) and others (who usually care about and want access to, some of the data the city collects) there are real wins to be had by putting forward a motion such as this.

To begin with, let’s look at the media and broader attention this motion has garnered to date:

First, a search of twitter for the terms Vancouver and Open shows hundreds upon hundreds of tweet from around the world celebrating the proposal. Over the weekends, I tried to track down the various tweets relating to the motion and they number at least 500, and possibly even exceed 1000. What is most interesting is that some tweets included people saying – “that they wished they lived in Vancouver.”

As an aside, have no doubt, City Hall sees this initiative in part as an effort to attract and retain talent. Paul Graham, who created a multimillion dollar software company and is now a venture capitalist summed it up best “Great [programmers] also generally insist on using open source software. Not just because it’s better, but because it gives them more control… This is part of what makes them good: when something’s broken, they need to fix it. You want them to feel this way about the software they’re writing for you.” Vancouver is not broken – but it could always be improved, and  twitter confirms a suspicion I have: that programmers and creative workers in all industries are attracted to places that are open because it allows them to participate in improving where they live. Having a city that is attractive to great software programmers is a strategic imperative for Vancouver. Where there are great software programmers there will be big software companies and start ups.

Blogs, of course, have also started to get active. As sampling includes locals in the tech sector, such as David Asher of Mozilla, Duane Nickull of Adobe, as well as others interested in geographic data. Academics/public thinkers also took note on their blogs.

Then, the online tech magazines began to write about it too. ReadWriteWeb wrote this piece, ZDnet had this piece and my original blog post went to orange on Slashdot (a popular tech news aggregator).

Of course, traditional media was in the mix too. The Straight’s tech blog was onto the story very early with this piece, a national newspaper, the Globe and Mail, had this piece by Frances Bula (which has an unfortunate sensationalist title which has nothing to do with the content) and finally, today, the Vancouver Sun published this piece.

Still more interesting will be to see the number of supportive letters/emails and the diversity of their sources. I’ve already heard supportive letters coming from local technology companies, large international tech companies, local gardening groups and a real estate consulting firm. Each of these diverse actors sees ways to use city data to help lower the costs of their business, conduct better analysis or facilitate their charitable work.

In short, issues surrounding the open city – open data, open source software and open standards – are less and less restricted to the domain of a few technology enthusiasts. There is a growing and increasingly vocal constituency in support.

Update May 20th, 2009 more media links:

The Libertarian Western Standard wrote this positive piece (apparently this is the Vancouver City only good initiative).

I did a CBC radio interview on the afternoon of May 19th during the show On the Coast with Stephen Quinn. The CBC also published this piece on its news site.

Vancouver enters the age of the open city

A few hours ago, Vancouver’s city government posted the agenda to a council meeting next week in which this motion will be read:

MOTION ON NOTICE

Open Data, Open Standards and Open Source
MOVER: Councillor Andrea Reimer
SECONDER: Councillor

WHEREAS the City of Vancouver is committed to bringing the community into City Hall by engaging citizens, and soliciting their ideas, input and creative energy;

WHEREAS municipalities across Canada have an opportunity to dramatically lower their costs by collectively sharing and supporting software they use and create;

WHEREAS the total value of public data is maximized when provided for free or where necessary only a minimal cost of distribution;

WHEREAS when data is shared freely, citizens are enabled to use and re-purpose it to help create a more economically vibrant and environmentally sustainable city;

WHEREAS Vancouver needs to look for opportunities for creating economic activity and partnership with the creative tech sector;

WHEREAS the adoption of open standards improves transparency, access to city information by citizens and businesses and improved coordination and efficiencies across municipal boundaries and with federal and provincial partners;

WHEREAS the Integrated Cadastral Information Society (ICIS) is a not-for-profit society created as a partnership between local government, provincial government and major utility companies in British Columbia to share and integrate spatial data to which 94% of BC local governments are members but Vancouver is not;

WHEREAS digital innovation can enhance citizen communications, support the brand of the city as creative and innovative, improve service delivery, support citizens to self-organize and solve their own problems, and create a stronger sense of civic engagement, community, and pride;

WHEREAS the City of Vancouver has incredible resources of data and information, and has recently been awarded the Best City Archive of the World.

THEREFORE BE IT RESOLVED THAT the City of Vancouver endorses the principles of:

  • Open and Accessible Data – the City of Vancouver will freely share with citizens, businesses and other jurisdictions the greatest amount of data possible while respecting privacy and security concerns;
  • Open Standards – the City of Vancouver will move as quickly as possible to adopt prevailing open standards for data, documents, maps, and other formats of media;
  • Open Source Software – the City of Vancouver, when replacing existing software or considering new applications, will place open source software on an equal footing with commercial systems during procurement cycles; and

BE IT FURTHER RESOLVED THAT in pursuit of open data the City of Vancouver will:

  • Identify immediate opportunities to distribute more of its data;
  • Index, publish and syndicate its data to the internet using prevailing open standards, interfaces and formats;
  • Develop appropriate agreements to share its data with the Integrated Cadastral Information Society (ICIS) and encourage the ICIS to in turn share its data with the public at large
  • Develop a plan to digitize and freely distribute suitable archival data to the public;
  • Ensure that data supplied to the City by third parties (developers, contractors, consultants) are unlicensed, in a prevailing open standard format, and not copyrighted except if otherwise prevented by legal considerations;
  • License any software applications developed by the City of Vancouver such that they may be used by other municipalities, businesses, and the public without restriction.

BE IT FINALLY RESOLVED THAT the City Manager be tasked with developing an action plan for implementation of the above.

A number of us having been working hard getting this motion into place. While several cities, like Portland, Washington DC, and Toronto, have pursued some of the ideas outlined in this motion, none have codified or been as comprehensive and explicit in their intention.

I certainly see this motion as the cornerstone to transforming Vancouver into a open city, or as my friend Surman puts it, a city that thinks like the web.

At a high level, the goal behind this motion is to enable citizens to create, grow and control the virtual manifestation of their city so that they can in turn better influence the real physical city.

In practice, I believe this motion will foster several outcomes, including:

1. New services and applications: That as data is opened up, shared and has  APIs published for it, our citizen coders will create web based applications that will make their lives – and the lives of other citizens – easier, more efficient, and more pleasant.

2. Tapping into the long tail of public policy analysis: As more and more Vancouverites look over the city’s data, maps and other pieces of information citizens will notice inefficiencies, problems and other issues that could save money, improve services and generally make for a stronger better city.

3. Create new businesses and attract talent: As the city shares more data and uses more open source software new businesses that create services out of this data and that support this software will spring up. More generally, I think this motion, over time could attract talent to Vancouver. Paul Graham once said that great programmers want great tools and interesting challenges. We are giving them both. The challenge of improving the community in which they live and the tools and data to help make it better.

For those interested in appearing before City Council to support this motion, details can be found here. The council meeting is this Tuesday, May 19th at 2pm, PST. You can also watch the proceedings live.

For those interested in writing a letter in support of the motion, send your letter here.

Why Canada’s public services need faith

As I mentioned the otherday, I recently finished Thomas S. Kuhn’s classic 1962 book “The Structure of Scientific Revolutions.” For those unfamiliar with the text, it is the book that gave us the important and oft over-used term, “paradigm shift.”

Here, in this book about how progress is made in the sciences I was completely floored by this paragraph in penultimate chapter: The Resolution of Revolutions.

…the issue is which paradigm should in the future guide research on problems many of which neither competitor can yet claim to resolve completely. A decision between alternate ways of practicing science is called for, and in the circumstances that decision must be based less on past achievement than on future promise. The man who embraces a new paradigm at an early stage must often do so in defiance of the evidence provided by problem-solving. He must, that is, have faith that the new paradigm will succeed with the many large problems that confront it, knowing only that the old paradigm has failed with a few. A decision of that kind can only be made on faith. (pages 157-158/3rd edition)

This describes precisely how I feel about Public Service Sector Renewal (reforming the public service). When I talk and write about an open and networked government I understand it raises questions around accountability, ministerial responsibility and human resource management. I’m aware that these are “large problems” for which our present structure has some – albeit highly imperfect and I’d argue, quickly eroding – answers.

Moreover it is true, that if we decided on how and if to reform government based solely on the performance of past models then we would always choose the status quo. The corporate hierarchy has served us well. Any new model will appear, relatively speaking, untested. But a growing number of us know that the status quo is unsustainable.

I know that any new system, however slight the change, will bring with it new challenges and questions, but the paralyzing and untenable problems with the current system will ultimately outweigh these unknowns – even in an organization as conservative as the public service. Ultimately, I am saying that a new system can succeed with many large problems confronting it even as the old system has failed only with a few.

So, as odd as it is to admit, I am, in part, acting on faith. Not only that, I believe the public service is going to learn to have faith as well. Why? Because in the end we won’t have a choice – the old problems this system cannot solve will demand it. We will have to change, and that will mean, someone, somewhere in the public service have put their foot forward into the unknown.

Indeed, many already have.

Surviving in a changing, networked world (part 2)

Two weeks ago I wrote this post, about how it is getting harder and harder to know what are the right paths, the right way points or even the right destinations in life…

Here’s a video that reminded me why it is all so exciting and scary at the same time.

Long live the third curse for we live in interesting times! (Remind me again why I seem to be pursuing curse one and two?)

I’m voting no to BC-STV

For those outside of British Columbia we have a referendum on May 12th to determine if the province should shift from its current voting system, called First Past the Post (FPTP), to Single Transferable Vote (BC-STV).

Watching the back and forth over the referendum on BC-STV has, I sense, left most citizens of British Columbia exasperated and confused. On both sides, people pronounce that a change will either bring political nirvana to the province, or utter disaster. It’s all a little over dramatic.

The truth is, the current system is not a disaster nor is the proposed change a nirvana. Both have strengths and weaknesses – this is because fundamentally, they are seeking to accomplish different things.

At present, our system favours geographic representation. In BC we don’t have a single election, we have 85 individual elections – one in each riding. Consequently, a party that wins 34% in each individual race could win every seat. This means that ideologically – a single perspective get represented. It is rare, but it is possible.

BC-STV is an attempt to create electoral outcomes that better reflect not how individual ridings voted, but how people voted across the province. In short, it seeks to enhance ideological representation by enabling voters who are distributed across ridings to elect representatives whose ideas resonate with them.

The challenge is, one cannot have it both ways. You cannot strengthen province wide ideological representation without weakening local representation. And herein lies the central trade off between the two systems: Local accountability versus great ideological representation at the provincial level.

Both are noble objectives. They just happen to be incompatible, one comes at the expense of the other. For me, this reduces any assessment of BC-STV to this question: do the benefits of improved ideological representation outweigh the costs of reduced local accountability? I think the answer is no.

In part, this is because I happen to place a high value on local representation. Others who think geography is less important than ideology will likely disagree (these are legitimate, and likely irreconcilable perspectives).

However, I’m also concerned about BC-STV because to achieve better ideological representation, I believe it makes some significant and problematic trade-offs (listed below). That, and there are the infamous unknown unknowns involved in adopting a new system.

Incomprehensible

The biggest problem with BC-STV is that, to achieve a balance between ideological and local representation, it presents votes with a system that is almost impossible to understand. I’m a policy wonk and a political junkie, as such I’m genuinely interested in these things and like to think I know a little about them. I’ve just gone through the literature umpteenth times and while I understand how it works, it is grossly complicated. I have not ideas of what its implications will be nor am I sure that the manner and order by which votes get weighted is fair.

One thing you want from an electoral system is that it be easily understood. This is important so that people know exactly who they are voting for and what their vote means. BC-STV is so complicated that the Vote No campaign websites directs readers to the explanatory video developed by the Citizens Assembly (their opponents). Even its advocates can’t explain it simply.

Opaque

In order to create greater ideological representation BC-STV has to weaken local representation. It does this by making ridings (districts for Americans) larger. Consequently, in BC-STV we would end up with mega ridings, the largest being 372,000 sq km. But the ratio of elected officials to votes would however, remain the same meaning that each “riding” would be served by somewhere between 2 and 7 MPs. This has several problematic implications.

First, who’s accountable? When there is a problem in your riding who do you complain to? Who is your elected official? Do you complain to all seven? The one you voted for? The member who is part of the government? All of them? A 7 member riding dilutes the connection between the voter and their representatives.

Second, it can create problematic feedback loops. If voters who vote for the Green Party only ever contact the Green Party representative and Liberal Party voters only contact the Liberal Party member in their riding we run the risk of creating a selection bias driven echo chambers. Party’s actually become more ideological and partisan.

Finally, individual MPs voices are diminished. In our current system, MPs influence derives from the fact that they have a machine on the ground and that they know their riding better than anyone. Large ridings make this harder to sustain. More importantly, when there are multiple candidates from a single party in the riding, the party can choose to deploy more resources towards candidates that will not challenge the party or its leader. The outcome is that BC-STV actually weakens the independence of elected officials.

Small Parties, Big Voices

I’m not opposed to coalition governments per se but, unlike many BC-STV supporters, I do not think they are inherently good either. BC-STV supporters are correct in asserting that smaller parties will have a greater voice. What often isn’t explained is that that voice won’t be proportional to the number of seats they elect – it can end up being disproportionately influential. Imagine a small party that garnered 8% of the provincial vote holds the balance of power in the legislature. It can effectively make any demand it wants to prop up the government. As a result, a platform supported by just 8% of voters suddenly becomes dominant. I know many of my environmentalist friends are excited by the prospect of the Green Party holding that balance of power… but there is no guarantee that this would be the outcome. What if the nascent Conservative Party were to be that force? They would almost certainly force the Liberals – arguable the most progressive party on the environment and First Nations issues – to move backwards on issues like the Carbon Tax and the New Relationship.

For these and other reasons, I’m ultimately opposed to BC-STV. Is FPTP perfect? Hardly, but BC-STV is still less so.

I now there are a lot of readers out there who are supporters so feel free to vent below in the comments section. I’ll try to respond to counter arguments as best I can.

For those who want to know more and educate themselves before tomorrow’s vote, here is a link to the BC-STV site and to the No STV site.

Structure of Scientific Revolutions vs. The Black Swan (Journalism remix)

Structure of Scientific Revolutions CoverI’ve just finished Thomas S. Kuhn’s classic 1962 book “The Structure of Scientific Revolutions.” For those unfamiliar with the title, it is the book that gave us the important and oft over-used term: “paradigm shift.”

I won’t pretend it was an easy to read. Written in a classic academic style, what is a fascinating topic and set of ideas struggles to shine. However, don’t hear me blaming the author for this… it is both that the book comes from another era, and that it springs from a cannon of academic writing that simply doesn’t seek to be as penetrable outside a certain community.

That said, I did enjoy it immensely. One reason is that I once again lucked out and ended up reading it at the same time as another book – Nassim Nicholas Taleb‘s The Black Swan – that despite being on a different topics and written 45 years later, dovetails nicely.

blackswan-199x300Paradigm shifts are black swan events. They can be hard, if not impossible to predict. They can arise because of the appearance of a single unforeseen data point (a black swan in a world where all swans were previously believed to be white) and they overthrow systems that we have become overly, comfortably, complacent and reliant on. Finally, although paradigms shifts are rare, because they force us to see the world in an entirely new way they have a disproportional and possibly even unparalleled, impact.

I often like to refer to Schopenhauer’s three stages of truth: “All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”

Both Taleb and Kuhn’s books play on this theme. For Taleb, our problem is that we can’t see or predict the changes in our world. We expect that we can predict them and that they’ll arrive in a nice orderly – or bell curve distributed – manner.

They don’t.

Despite the mental image we have of history (and our lives), history doesn’t crawl. It moves it fits and starts. Oscillating between long steady states and sudden change. We often believe the steady states will last forever, and when change comes we trivialize it and then fight it, until it becomes the new steady state, at which point, we come to believe it was always that way.

This is also Kuhn point. Look at how he sees paradigm shifts as being important for both the science and politics changes:

Political revolutions are inaugurated by a growing sense, often restricted to a segment of the political community, that existing institutions have ceased adequately to meet the problems posed by an environmental that they have in part created. In much the same way, scientific revolutions are inaugurated by growing sense, again restricted to a narrow subdivision of the scientific community, that an existing paradigm has ceased to function adequately in the exploration of an aspect of nature to which that paradigm itself had previously led the way. In both political and scientific development the sense of malfunction that can lead to crisis is prerequisite to revolution…

…The parallel has, however, a second and more profound aspect upon which the significance of the first depends. Political revolutions aim to change political institutions in ways that those institutions themselves prohibit. Their success therefore necessitates the partial relinquishment of one set of institutions in favour of another, and in the interim, society is not fully governed by institutions at all. Initially it is crisis alone that attenuates the role of political institutions as we have already seen it attenuate the role of paradigms. In increasing numbers individuals become increasingly estranged from political life and behave more and more eccentrically within it. Then, as the crisis deepens, many of these individuals commit themselves to some concrete proposal for the reconstruction of society in a new institutional framework. At that point the society is divided into competing camps or parties, one seeking to defend the old institutional constellation, the others seeking to institute some new one. And, once that polarization has occurred, political recourse fails. Because they differ about the institutional matrix with which political change is to be achieved and evaluated, because they acknowledge no supra-institutional framework for the adjudication of revolutionary difference, the parties to a revolutionary conflict must finally resort to the techniques of mass persuasion, often including force. Though revolutions have had a vital role in the evolution of political institutions, that role depends upon their being partially extrapolitical or extrainstitutional events. (Kuhn, Pages 92-93 of the 3rd edition)

If you don’t think the world operates this way, just look as far as the news industry.

When Shirky says revolutions are times when “The old stuff gets broken faster than the new stuff is put in its place” he is paraphrasing Kuhn. Journalism is already dividing into camps, those defending the old, and those seeking to figure out what the “new” will be.

But despite all the discussion, we are still very early on in the debate. How do I know? Because we haven’t even begun to shed the old paradigm? The entire debate about journalism, what it is, how it should be practiced and what makes it good or bad is still being largely being evaluated and adjudicated by the old matrix. When journalism finally gets saved I suspect it will be because it will be, in part, radically redefined – a redefinition affirmed and made possible by the establishment of some new institutions, organizations and/or processes. (That’s what my post on the death of journalist was seeking to do).

So yes, we’ve left the ridiculed phase (that lasted 20 years), but we are still early on in the violently oppose phase. All thos unhappy journalists are angry because they may be the midst of a paradigm shift, and that means much like Newtonian physicists confronting Einstein’s theory of relatively everything, absolutely everything they believed in, fought for, taught and lived. is probably going to get redefined and altered beyond recognition. It will still be there, but it will forever be understood differently.

That’s a scary thought. But it is fun one as well, filled with possibility. Which is why Kuhn and Taleb are fun to read together.

Emerging Neo-Progressive Issues: Drug Policy

As many of you know Taylor and I wrote a piece on what we termed neo-progressivism in last September’s Literary Review of Canada.

Since then we’ve keep our eye out for other discussions where we think neo-progressives are gaining traction in the public discourse. Some of the indicators we looking for are policies where:

  • The conversation is deadlocked and going nowhere
  • The conversation isn’t possible because alternatives to the status quo are considered taboo
  • Areas where the gap between ideology and research or evidence is significant
  • Debates where their are real divisions within either the left or right
  • Debates which unite odd factions from within the left and right
  • Policy areas where individual freedom is curtailed
  • Places where the impact on the public in general is growing

This list isn’t exhaustive nor is it a scientific – they are just a couple of triggers wer look our for.

Well, if you are looking at this list you may have noticed that last month a potential candidate emerged far on the horizon. It was a surprising one for me since I do some volunteering around this issue here in Vancouver and I really didn’t see it coming.

I’m talking of drug prohibition.

The aha moment was seeing the (very) conservative Cato Institute publish a report by Glen Greenwald (a case study neo-pragmatists) in which he analyzed the impact of drug decriminalization in Portugal. As the report’s summary states:

For over seven years, drugs have been decriminalized in Portugal. This new study examines the Portuguese model and the data concerning drug-related trends in Portugal, and argues that, “judged by virtually every metric, the Portuguese decriminalization framework has been a resounding success.”

Then consider drug prohibition against the list I outlined above. This topic should not have snuck up on me:

  • Deadlocked conversation: The “War on Drugs” vs. “Marijuana activists” increasingly leaves the public turned off. The war on drugs industry and its militarization of the police is costly, dangerous to civil liberties and has failed to address the problem for 30 years. Indeed, as the RCMP now admits, reducing the flow of drugs actually renders the situation more dangerous for citizens. Conversely, the counter-culture movement around pot activists is equally alienating. It is hard to attract middle class support when every middle class parent fears that this counter-culture will become the norm and their children will be destined life as a pot-head.
  • Alternatives to the status quo are taboo: For most politicians talking about ending drug prohibition is absolutely taboo, although this is shifting. Vancouver’s mayor recently stated that the sate should “regulate, control and tax marijuana,” and that “the prohibition approach to it is not working.” The Liberals under Martin considered decriminalizing marijuana. Even in the US there is movement. The legislatures of New York State, California and Massachusetts have begun to reconsider overly punitive drug laws. Senators Jim Webb and Arlen Specter recently proposed Congress create a national commission to explore prison reform and drug-sentencing policy.
  • Large gap between ideology and research or evidence: Here the Cato report, along with the data coming out of the Downtown Eastside around Insite and NAOMI trials is most devastating. The rhetoric around law & order does not stack up against the results. Consider that in Portugal after decriminalization (pulled from this Time Magazine article on the report)
    • lifetime use of any illegal drug among seventh through ninth graders fell from 14.1% to 10.6%; drug use in older teens also declined. (a 33% drop!!!)
    • lifetime heroin use among 16-to-18-year-olds fell from 2.5% to 1.8% (although there was a slight increase in marijuana use in that age group). (a 25% drop!)
    • new HIV infections in drug users fell by 17% between 1999 and 2003, and deaths related to heroin and similar drugs were cut by more than half.
    • the number of people on methadone and buprenorphine treatment for drug addiction rose to 14,877 from 6,040, after decriminalization, and money saved on enforcement allowed for increased funding of drug-free treatment as well. (150% increase in people seeking treatment!)
  • Divides the left or right: Check out this Western Standard blog (possible the most conservative publication in Canada) in which a conservative columnist argues with a conservative reader about the evidence around ending prohibition. I never thought I’d see the day where a Western Standard columnist would explore the possibility of ending prohibition. Could endorsing harm reduction strategies be far behind?
  • Unite odd factions from within the left and right: Could possible unite traditional left wing progressives with right-wing libertarians.
  • Individual freedom is curtailed: Check. The literature of the impact of the “war on drugs” on civil liberties in the United States is vast.
  • Growing impact on the public: drug violence in the US and Canada appears to be on the rise and a bordering country, Mexico, is becoming unstable. Much like alchohol prohibition in the 30’s at some point the public is going to connect gang violence with drugs – at which point a wider debate may become possible.

Do I think drug prohibition is going to end tomorrow? Absolutely not. But I won’t be surprised if we see movement at the local and state/provincial level this issue. Indeed, I believe it has been gaining traction for some time.

Follow the link to get a free copy of the Cato Institute’s study “Drug Decriminalization in Portugal: Lessons for Creating Fair and Successful Drug Policies.”

Reforming Government on the Globe & Mail's Wiki

A few months ago John Ibbitson – the Globe and Mail columnist who used to cover Ottawa and now covers Washington, DC – asked me if I’d help edit the 3rd chapter of his new book, Open & Shut.

The chapter, entitled Yes, Mr. President; No, Prime Minister asks why is it that after 8 years of President Bush, President Obama is able to quickly change the direction of government whereas in Canada, newly elected parties often struggle to implement their agenda.

Last week the book was released. As part of the launch process the Globe and Mail created a wiki dedicated to the book’s themes where readers can critic or expand on its ideas and analysis. More interestingly, as readers post to the wiki John will respond to their  ideas, critics and thoughts on a blog hosted by the Globe.

To kick off the wiki on Open Government, John asked me if I would write a short essay answering the following the question:

Federal politicians, and federal public servants, seem increasingly remote and disconnected from the lives of Canadians. Open and Shut maintains that this is because the public service remains closed to outsiders, and because Ottawa has ceded so much power to the provinces. Do we want our federal government to matter more in our lives, and if so, what should we do to give it meaning?

You can see my response, and what I hope will eventually become a growing number of comments on the future of the public service, here.

As an aside, two other sections have been created. One is on Open Politics, which is teed up by John Duffy (political strategist). The other is on Canada/US integration, which is kicked off by Scotty Greenwood (executive Director of the Canadian-American Business Council).

Treating the web as an archive – or finding the financial crisis' ground zero online

Most often when people think of the web they think of it as a place to get new information. Companies are told they must constantly update their website while customers and citizens look for the latest updates. But because the web is relatively new, it is strongly biased towards digitally displaying and archiving “new” information.

What happens when the web gets older?

One possibility… it could change how we study history. Again, nothing is different per se – the same old research methods will be used – but what if it is 10 times easier to do, a 100 times faster and contains with a million time the quantity of information? With the archives of newspapers, blogs and other websites readily available to be searched the types of research once reserved for only the most diligent and patient might be more broadly accessible.

Consider this piece in the New York Times published on November 5th 1999. It essentially defines ground zero of the financial crisis:

Congress approved landmark legislation today that opens the door for a new era on Wall Street in which commercial banks, securities houses and insurers will find it easier and cheaper to enter one anothers businesses.

The measure, considered by many the most important banking legislation in 66 years, was approved in the Senate by a vote of 90 to 8 and in the House tonight by 362 to 57. The bill will now be sent to the president, who is expected to sign it, aides said. It would become one of the most significant achievements this year by the White House and the Republicans leading the 106th Congress.

”Today Congress voted to update the rules that have governed financial services since the Great Depression and replace them with a system for the 21st century,” Treasury Secretary Lawrence H. Summers said. ”This historic legislation will better enable American companies to compete in the new economy.”

Here is what may be the defining starting point of the financial crisis. The moment when the tiny little snowball was gently pushed down the hill. It would take 10 years to gather the mass and momentum to destroy our economy, but it had a starting point. I sometimes wish that the New York Times had run this article again in the last few months, just so we could get reacquainted with the individuals – like Larry Summers – and political parties – both – that got Americans into this mess.

Indeed, as an aside, it’s worth noting the degree by which the legislation passed. 90 votes to 8 in the senate. 362 votes to 57 in the House. There was clearly a political price to pay to vote against this bill. Indeed, it fits in nicely with the thesis Simon Johnson outlined in his dark, but important, piece The Quiet Coup:

“…these various policies—lightweight regulation, cheap money, the unwritten Chinese-American economic alliance, the promotion of homeownership—had something in common. Even though some are traditionally associated with Democrats and some with Republicans, they all benefited the financial sector”

Still more fascinating is how accurately the legislation’s detractors predicted it’s dire consequences. Check out Senator Dorgan’s comments at the time:

”I think we will look back in 10 years’ time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930’s is true in 2010,” said Senator Byron L. Dorgan, Democrat of North Dakota. ”I wasn’t around during the 1930’s or the debate over Glass-Steagall. But I was here in the early 1980’s when it was decided to allow the expansion of savings and loans. We have now decided in the name of modernization to forget the lessons of the past, of safety and of soundness.”

Or Senator Wellstone’s:

‘Scores of banks failed in the Great Depression as a result of unsound banking practices, and their failure only deepened the crisis,” Mr. Wellstone said. ”Glass-Steagall was intended to protect our financial system by insulating commercial banking from other forms of risk. It was one of several stabilizers designed to keep a similar tragedy from recurring. Now Congress is about to repeal that economic stabilizer without putting any comparable safeguard in its place.”

And of course, it worth remembering what the legislation’s supporters said in response:

Supporters of the legislation rejected those arguments. They responded that historians and economists have concluded that the Glass-Steagall Act was not the correct response to the banking crisis because it was the failure of the Federal Reserve in carrying out monetary policy, not speculation in the stock market, that caused the collapse of 11,000 banks. If anything, the supporters said, the new law will give financial companies the ability to diversify and therefore reduce their risks. The new law, they said, will also give regulators new tools to supervise shaky institutions.

”The concerns that we will have a meltdown like 1929 are dramatically overblown,” said Senator Bob Kerrey, Democrat of Nebraska.”

What is most fascinating about this piece is that it shows us how the financial crisis wasn’t impossible to predict, that it didn’t come out of nowhere and that it could have been eminently preventable. We simply chose not to.

It also goes back to the type of journalism that I believe we are missing today and that I wrote about in my post on the Death of Journalism. Here is a slow moving crisis, one that is highly complex, but not impossible to see. And yet we chose not to “see it.”

This, I believe, has to do with the fact that today, much of our journalism is gotcha journalism (or what Gladwell refers to as mysteries). It looks to finding the insider or the smoking gun that will bust open the story. I suspect that in a networked world – one of increased complexity and interconnectedness – finding the smoking gun is irrelevant. For an increasing number of stories there simple is no smoking gun. There are whole series of cascading action that are what Galdwell calls open secrets. Our job is to “see them” and painstakingly connect the dots to show how our decisions are allowing for the scary and unpredictable event – the black swan event – to become a near certainty.

What the above article shows me is that while the very tools and forces that make these scary events more likely – the internet, globalization our interconnectedness – they may also make the the open secrets easier to identify.

Education: where copyrighters and publishers are the pirates

There has been a lot of buzz around both the guilty verdict and now the judge’s alleged conflict of interest in the trial of the Pirate’s Bay operators.

For those not in the now The Pirate’s Bay is a search engine – like Google – that specialized in indexing “BitTorrents,” a file format often used to download movies, tv shows and large quantities of music. Since many of these files contained copyrighted material like Hollywood movies, there was significant interest in shutting down the site.

What is interesting to me is that the music recording industry – which was the first to fight against online file sharing – has always claimed it was working on behalf of starving artists. Fair enough – I too want to ensure that artists are fed and fairly rewarded for their work.

But this is in part what makes a new challenge to the publishing industry so interesting. Now a group of Swedes are enabling students to use file sharing to share educational materials. According to The Local, The Student Bay makes use of software from Rapid Share and encourages students to scan in and upload pages of course literature into an archive that they can then browse and download from.

I suspect that it is here – in the field of education – where file sharers will find the most fertile ground to transforming how media and copyright works. The movie and recording industries have deep pockets and a strong interest in fighting file sharing. Moreover, they will, for a while at least, be able to claim to speak for artists, even as this is less and less the case.

But the educational book industry? They pay professors virtually nothing for their works. Consequently, since most professors make their money from their salary they don’t rely on books as a revenue stream. Their core interest isn’t to make an extra $300-$4000 from a book that took them months to research and write, it is to know that students everywhere are reading and engaging their ideas.

Moreover, here is an industry that gouges its clients. Physics textbooks hardly need to change from year to year (how much has an intro Physics course really changed over the last 5 years? 10 years?). And yet new books, with new page numbers are created to force students to pay outrageous amounts for work that is – essentially – public domain. Even when educational publishers are trying to serve the greater good and introduce a new textbooks, the cost structure is prohibitive. Because of the short print runs of most textbooks, they tend to be expensive simply because margins have to be that much thicker to justify the investment.

In short, try to imagine the awareness campaign against copyright infringement in the educational sector? What % of the $85 for that physics text book we’ve been printing for 25 years really goes to the author or editor? Movies and music can somewhat justify their prices and copyright protection on the basis of fashion and trends. Educational book publishers don’t have that luxury. This is a mode of production that is broken: it is slow, expensive and primarily serves the interests of publishers, not the authors nor the readers. While the public remains uncertain about how to respond to copyright infringement in the entertainment industry I don’t think they are about to rise up and say: Yes! Let’s protect educational book publishers who pay authors nothing, overcharge students for textbooks and increase the cost of education.

And just in case you think the educational publishing industry won’t try to defend its business model, take a look at this story from Finland. Here, the industry is using legal threats to shut down an attempt to facilitate students lending each other books – in essence, creating a perfectly legal and truly “public” library.

Bookabooka doesn’t host any e-books on its site, but instead allows students to rent their textbooks to their peers. Renting is conducted via traditional “snailmail” (i.e. postal service) and it is mandatory that the textbooks are originals (not xeroxed copies). Bookabooka acts only as an intermediate, connecting the students together and doesn’t handle the shipping or returns of the textbooks.

Maybe file sharers will be forced to temporarily retreat, but here in lies fertile ground for the next battle. A battle where file sharing and the use of creative commons license (or no licenses at all) make the most economic and social sense.