Experiments in Alternate Democracies

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‘[I]t is not enough for democracy to be radical; it must be revolutionary’ argues Wayne Price

One of Winston Churchill’s most notable lines was:

No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of government except all those other forms that have been tried from time to time.

At the turn of the 20th century, there were fewer than ten democracies in the world. By the turn of the 21st, that number had reached 80, with half of humanity governed by some form of democracy. Yet, we’ve grown astutely aware of the flaws in the system in the past two years, with some calling for an end to democracy.

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The Dawn of Digital Switzerlands

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The tech behemoths’ role in nation-states is evolving

The biggest US tech companies now have powers which challenge the primacy of governments in many domains. In many cases they also have capabilities not available to nation states. We touched on these issues, and the notion of “corporate foreign policy” in one of the previous issues of my weekly newsletter Exponential View.

Last year, Microsoft’s Brad Smith argued that — at least in the realm of cybersecurity — “the global tech sector needs to operate as a neutral Digital Switzerland. We will assist and protect customers everywhere.”

Now in the Pennsylvania Law Review, Kristen Eichensehr looks at the issue of Digital Switzerlands in greater depth, 66 pages of it to be precise. We’ve summarized parts of it here. One key distinction between large corporations and nation states is that they lack territory, control of state-violence, and have very different governance mechanisms to nation-states. But that is as true for many supranational bodies as well.

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AI’s Transition Problem

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Recent successes in deploying AI point to a crucial challenge the field is facing

I read Martin Wolf’s wonderful essay about the challenges facing government in the light of significant labour displacements. Last week there were two relevant, but distinct, announcements from Babylon Health and OpenAI. I aimed to connect the dots between these in the latest issue of my weekly newsletter Exponential View. (Read the issue | Subscribe)

First, Babylon: the company announced that their AI-based chatbot had performed better than the typical British GP (a GP is a generalist physician rather than a specialist) on the qualifying exams run by the Royal College of General Practitioners. Babylon’s bot scored 81% on a test where humans averaged 72%, although there are some methodology issues. You can read a news story here, and the research paper, which I’ve skimmed, here.

The Royal College of General Practitioners responds with two key points: one silly, the other less so.

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Two Thirds of the U.S. Population Wrongly Believe Facebook Sells Their Data

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How does this impact their Facebook habits?

A month ago, I suggested that the Facebook Golum will never give up on its data ring — that perfect, shiny, gigantic stream of information about two billion people globally.

Where my Golum comparison goes awry, however, is in the realisation that the real battle of the ring depends on understanding what it is. Facebook users, most of us, do not know the ring.

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The Resurgence of Corporate Venture Capital

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Is the current penchant for CVC just the usual part of the cycle?

I spent a fascinating couple of days at James Mawson’s Global Corporate Venture Capital conference in London this week. Venture capital of all hues is booming. I wrote about it in this week’s issue of my newsletter Exponential View. You can read my thoughts below. For more, subscribe to Exponential View, it’s free and you’ll find it useful.

Last year, $163bn was invested into founders globally, compared to a $25–56bn range in the 10-year period to 2013. Corporate venture capital (CVC), whereby large firms invest in interesting startups, is on an upswing. CVC, traditionally a second-tier option for enterpreneurs, now represents about 18% of all venture deals globally and about a third of all dollars invested in venture. CVC of 2017 is bigger than the entire VC industry of 2013.How do you make sense of it?

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Facebook’s Gollum Will Never Give Up Its Data Ring

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Precious!

Does Facebook sell your data? An informal poll of my informed Twitter followers suggested that about 70% of us believe that.

Facebook does not sell your data. It protects your data like Gollum holding the ring. Selling your data would not be nearly as profitable as leasing access to you, via advertising— over and over again.

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Nation State At the Crossroads

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Whither thou goest, I will go

There is a notion worth revisiting: are nation states nearing their end as our preferred scale of the political and socio-economic organisation? This idea lies in contrast with the “end of history” theory of modernity, first posited by the American political scientist Francis Fukuyama.

I’ve found the question of evolving the nation-state fascinating since the early 1990s when I first came across ideas of decentralised forms of organisation enabled by new electronic networks (and was contemporaneously studying political institutions and models of governance).

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Efforts to Nationalise AI, and Why We Need to Stop Calling it “AI Race”

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Much of the work done in AI is of the intangible quality, and will drive spillovers

French President Emmanuel Macron announced his intention to make France an AI leader and avoid “dystopia”, supported by €1.5bn in investment. France is not the first country to surge ambitiously towards establishing itself as a “leader” in AI. Putin famously stated that “whoever becomes the leader in this sphere will become the ruler of the world”. China has a three-year action plan to establish itself at the top. Canada’s Trudeau discussed on multiple occasions the consequences of automation, and the opportunities of artificial intelligence. Macron demonstrates nuanced understanding of the opportunity — both technological and social — of artificial intelligence in this must-read interview.

This sort of thing can only help capitalise on the value of these technologies. I do believe that cultural and intellectual diversity (and France has those when arrayed with China and the US) can only help in the development of appropriate AI systems. The equivalent UK number is only about £75m (€85m), which is a pity considering the nation’s intellectual heritage across both humanities and technology domains, and bottom-up appetite for the Internet over the past 30 years. More importantly, few world leaders have expressed such adroitness with this sea change than Macron has.

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The Three Horsemen of Facebook’s Datapocalypse

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Photo by Jamie Kern on Unsplash (modified).

Market dominance, the business model, and internal culture: Mark should learn from Microsoft.

I’ve written extensively about Facebook in Exponential View for the past three years. (In fact, you can see everything I’ve written about Facebook at this link).

Nearly two years ago (EV#60), I wrote:

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(Digital) World in Crisis: Five Must-Read Pieces Chosen by Zeynep Tufekci

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I was honored to have Zeynep Tufekci, a technosociologist whose work I find crucial in helping us understand public discourse in the digital age, take a lead at guest-curating my newsletter this week.

Here are some of the articles Zeynep shared in her Exponential View:

1. Useful in thinking about the near future of Bitcoin, and the crisis coming their way.

This essay depicts the story of the internet we imagined, and the internet in its reality. It is a worthy lesson for the future of crypto technologies.

Why the Hidden Internet Can’t be a Libertarian Paradise

2. Hackers and mischief makers are coming for machine learning.

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