Valuing Nature in Ways the World Can Understand

October 14, 2019 By David Griesing Leave a Comment

Nature has a big problem.

Too few of us believe that climate change will happen here or will affect us personally if it does. But these misperceptions are only one aspect of the problem.

Too many decision makers–and too many workers caught in the cross-hairs of the debate–still believe that the costs of changing how we consume, digest and expel the world’s resources are too high for the benefits that might be realized once we start paying for them. They don’t see “the benefit of the bargain” I see (and maybe you see) so clearly, only their share of an unacceptable price tag.

And indeed, the high costs of changing how we do things today tend to crop up everywhere in the climate change debate.

If we want to stop over-fishing, there are the costs to the livelihoods of the fishermen. If we want to reduce our reliance on carbon-based energy, there are the impacts on those who build and maintain today’s energy infrastructure, and on the communities that depend on those workers and suppliers. It’s dismantling one economy—the lost jobs and abandoned investments—for a new one whose economic upsides often seem to be worth less than the high costs of changing how we do things now.

In market-based economies, the challenge is proving that these transition costs will be justified by the long-term economic gains. A rough apples-to-apples type exchange between likely benefits and likely costs needs to be argued, presented and accepted by enough stakeholders for “the human family” to “voluntarily” undertake the expensive steps that are necessary to confront climate change.

Put another way: will the “value” of a healthier planet tomorrow cover the “costs” of ensuring it today? Perhaps the biggest challenge facing those of us who are alarmed by climate change is filling in the “quotation marks” in this cart-before-the-horse equation so we can convince the many hold-outs who still need convincing. But until now, we’ve mostly failed to do so.

Only quite recently have the number crunchers begun to calculate the cost benefits of a healthier planet that will, over time, offset the costs of ensuring it today. It’s the dollar-spent for dollar-earned scenario that is essential if we’re to turn climate change advocacy into meaningful action.

In the places where we work, most supporters that we’ll need to realize our visions start out skeptical if not flat-out opposed to the better worlds we can often “see” so clearly, so we need to translate our versions of both the problems and solutions into stories they can understand. Like it or not, that’s usually the economic story where we trade tangible costs for tangible benefits as we undertake the often painful changes that will be needed along the way. It works almost every single time, but until now that story has not been properly told in the struggle to confront climate change.

Well the time to start telling it is now.

The Economic Benefits of Whales Versus the Lobstermens’ Costs to Protect Them

According to a recent story, there’s been an on-going showdown between lobstermen and environmentalists off the coast of Maine. The point of controversy is right whales that environmentalists argue are dying when they get caught in the lines that secure local lobster pots. The whales are threatened with extinction. The lobster industry, which is already undermined by warming waters, will be further crippled by putting down fewer pots or otherwise reducing the number of lines that secure them.

Is there a way that the value of having more whales in this ecosystem might cover the high costs that lobstermen, their families and their coastal communities will have to incur to protect them?

Until quite recently, I would have said “no.” But before finding a better answer, it might help to have some additional background about the Gulf of Maine controversy.

The right whales got their name because they were the “right” whales to push towards extinction with our commercial activities, first with the harpoons of whaling boats and more recently by accidentally slaughtering them with boat propellers, fishing nets and lobster pot lines. These bus-sized mammals are slow moving and “built by evolution to be oblivious forage feeders,” according to a NOAA Fisheries’ official. It makes these whales unusually susceptible to getting ensnared and killed.

NOAA estimates that today’s population of right whales is only about 400, with fewer than 95 breeding females remaining, which means that the entire population is jeopardized by a single death each year. But more than 30 of these whales have been found dead since 2017. While the reason for these fatalities isn’t always clear, it does not appear that they are dying from natural causes according to investigators.

To address the problem, NOAA has proposed new regulations to clear fishing lines from the whales’ path. While the regs will cover all New England waters, Maine lobstermen, who “dangle more than 800,000 lines from buoys to ocean-floor traps in their busiest months,” clearly have the most at stake. To satisfy the proposed standards, they will need to remove at least half of those lines from the water. Says one lobsterman in blunt response: “We don’t want to go extinct either.” In addition to 4,800 harvesters working these waters, the lobster industry supports thousands more jobs on shore while contributing $1.5 billion a year to the state’s economy.

During the rule making period that we’re in today, scientists will be arguing about whether the proposed regulation goes far enough to protect the whales while those alarmed by its likely impacts will be making their case for reasonable accommodations or to reject the new restrictions altogether.

As tensions escalate, and opponents refine the dollar amounts that are likely to be lost if NOAA’s regulation goes into effect, it seems a useful time to ask whether anyone in that debate is calculating the economic benefit that is provided to Maine (and indeed to all of us) by the survival of these whales.

Is anyone enabling an apples-to-apples comparison of costs and benefits so that both sides in this controversy are (more or less) in the same ballpark, with the opportunities for tradeoffs and compromises that “speaking the same economic language” might allow?

And beyond that, is there a way that the “value” of preserving these whales can cover the costs that will have to be borne by these communities if they can ever come together to protect them?

The Startlingly High Value of a Whale

In the past week or so, I came upon another whale story. This one involved a team of visionaries at the International Monetary Fund (IMF).

As is often the case, I overheard bits of the story in a Morning Edition segment on NPR, which took me to a story that had been published that day in National Geographic, and eventually to a much deeper analysis in an IMF publication. It was worth getting to the bottom of the story.

As far as I can tell, what the IMF team discovered about whales and ended up proposing for the sake of both nature and industry was not in response to the Gulf of Maine controversy, but it could certainly help to resolve it.

The IMF’s approach considered all the whales in the world’s oceans. Because of its boldness and breadth, it could make a significant enough dent in species degradation, at a rapid enough pace, to reduce the number of ocean-based harms that we can no longer repair. At the same time, its approach would utilize the whales’ enormous environmental “value” to help compensate the global fishing and transportation industries for the costs of adopting “whale saving” practices. Here in a nutshell is their argument (although I urge you to read the entire IMF article and to enjoy the visualizations they’ve included in it).

Essentially, the IMF team realized that a whale’s economic value comes from its extraordinary ability to capture and then sequester carbon. “When it comes to saving the planet,” they write, “one whale is worth thousands of trees.”

In building their economic analysis, the team relied on 2014 research about how whales remove (and help others to remove) carbon from the environment as well as upon international programs that have developed mechanisms to fund the preservation of carbon capturing eco-systems. The team’s signature innovation may be focusing on a particularly helpful as well as beloved animal to support this kind of cost-benefit analysis on a truly global scale.

According to prior research, a whale sequesters as much as 33 tons of carbon dioxide per year on average compared to only 48 pounds per land-based tree. Whales eat phytoplankton, which not only contribute at least 50 percent of the oxygen in the earth’s atmosphere but in doing so also capture 37 billion metric tons of carbon dioxide or 40 percent of the entire amount that is produced globally each year.

Whales have what the IMF team call “a multiplier effect” on the phytoplankton when they eat them and produce waste products (primarily iron and nitrogen) because these waste products are precisely what is needed for more plankton to grow. As they dive and rise again to the surface, whales “pump” these minerals to the surface across their vast migration patterns, increasing both the amount of plankton and the whale populations that feed on them as long as the whales can do so in relative safety. Moreover, when whales die, the carbon they have sequestered in their enormous bodies from eating plankton in the first place descends to the ocean floor and (according to the National Geographic’s coverage of the IMF plan) “is taken out of the atmosphere for hundreds to thousands of years, a literal carbon sink.”

Of course, whale populations would need to recover significantly to produce the greatest benefits. Continuing their “if-then” analysis, the IMF team notes:

If whales were allowed to return to their pre-whaling number of 4 to 5 million—from slightly more than 1.3 million today—it could add significantly to the amount of phytoplankton in the oceans and to the carbon they capture every year. At a minimum, even a 1 percent increase in phytoplankton productivity thanks to whale [pumping] activity would capture hundreds of millions of tons of additional C02 a year, equivalent to the sudden appearance of 2 billion mature trees. Imagine the impact over the average lifespan of a whale, more than 60 years.

(To put these benefits in a slightly different context, National Geographic cites economists’ calculations showing that these great whales alone could either capture or help more plankton to capture 1.7 tons of C02 per year, which is more than the annual carbon emissions of Brazil today.)

The question, then, is how to restore whale populations to pre-whaling levels. Those causing the current threat include nations that still allow whale hunting, industries (like fishing and ocean going transport of people and goods) that jeopardize migrating whales, as well as the actions of individual fishermen. Without covering the very real costs of changing these practices, it is nearly impossible to imagine that the necessary changes will be undertaken voluntarily.

With the aim of meeting these costs, the IMF team made “conservative estimates” of each whale’s value. For the largest so-called “great whales,” they used science-based estimates of how much CO2 each one sequesters directly or indirectly in its lifetime along with CO2’s market price. To this base number, they added value for a whale’s other economic contributions, including fishery enhancement and ecotourism. The IMF team concluded that the value of the average great whale is more than $2 million and that the current value of the global stock of great whales alone “is easily over $1 trillion.”

By using this “value” essentially as collateral for raising the necessary funds, monies would become available (from environmentally oriented companies, non-profits, consumers and even countries) to compensate those who are likely to suffer economic losses by changing their current business practices to protect the whales. “For example,” the team notes, “shipping companies could be compensated for the cost of altered shipping routes to reduce the risk of [whale] collisions.”

What is perhaps most noteworthy about the IMF team’s “good work” is the change in mindset that their cost-benefit analysis invites to help resolve one of our most challenging global problems: the seemingly irreconcilable conflict between nature and industry until now. The team recognized that the necessary changes will never be made unless those incurring those costs can be paid and the world can unite around sufficient compensation mechanisms to ensure that they are. Finding new ways to “value” and “leverage” nature (or “earth-tech,” as they call it) is the key they have identified.

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What the IMF team proposes doesn’t fit into a tidy package as yet, and a myriad of details still has to be worked out. In other words, the economic benefits from nature and the costs to industry of protecting it are not quite apples-to-apples yet. But this proposal boldly offers a new approach to balance the needs of both nature and industry on a global scale.

While it’s a financing mechanism that’s aimed only at whales, it introduces a framework for thinking about other carbon-rich ecosystems like sea grass beds or the forest elephants of the Congo River basin.

Proposing an earth-tech solution instead of an artificial, man-made one is inspired for another reason. When I worked in the energy industry, I studied carbon sequestration plants that were being developed at the time and know first-hand about both the technology challenges and the prohibitive expense of these man-made solutions. By contrast, nature can perform much of the same work “naturally,” if only we’d let it.

And for the on-going battle between the right whales and the lobster industry in the Gulf of Maine, there is now a rudimentary framework that, with imagination and a sense of urgency, may actually be able to serve both of them.

Good work often achieves its loftiest objectives by finding new ways to confront the dollars-and-cents obstacles that are right in front of it.

This post was adapted from my October 13, 2019 newsletter. When you subscribe, a new newsletter/post will be delivered to your inbox every Sunday morning.

A Course Correction for the World Wide Web

July 15, 2019 By David Griesing Leave a Comment

Pink shock and emerald green in the back yard

Emily was here for breakfast on Thursday and I had the morning’s news on public radio—the same stories staring at me from the front page of my newspaper—and she said with millennial weariness: Why are you listening to that?

It was a good question, and one I often answer for myself by turning it off because it’s mostly journalist shock, outrage or shame about whatever the newsmakers think is going on. Who needs their sense of urgency in those first moments when you’re still trying to figure out whether you’re fully conscious or even alive?

On the other hand, short ventures into my yard quickly provide more hopeful messages. It’s the early summer flush, fueled by plenty of rain, and everything is still emerald green. Summer is telling different stories than the radio, sees different horizons, including the one some kind of watermelon sprawl is trying to reach with its tentacles. These co-venturers aren’t fretting about the future, they’re claiming it by inches and feet, or celebrating it with explosions in the air.

While shock, outrage or shame can push you to do good work, it’s hope that sustains it by giving it directions, goals, and better horizons. Everything around the creeping reality of surveillance capitalism tiggers all those negative feelings and keeps me snapping at its purveyors with my canines because—well—because it deserves to be pierced and wounded.

But then what?

That’s where others who have shared these angry and disgusted reactions start showing me more hopeful responses in their own good work–the productive places where gut reaction sometimes enable you to go–and that my radio provides little if any of (ok, so now what?) on most mornings.

In the early days of the internet, the geeks and tinkerers in their basements and garages had utopian dreams for this new way of communicating with one another and sharing information. In the thirty-odd-years that have followed, many of those creative possibilities have been squandered. What we’ve gotten instead are dominant platforms that are fueled by their sale of our personal data. They have colonized and monetized the internet not to share its wealth but to hoard whatever they can take for themselves.

One would be right in thinking that many of the internet’s inventors are horrified by these developments, that some of them have expressed their shock, outrage and shame, and that a few have ridden these emotions into a drive to find better ways to utilize this world-changing technology. Perhaps first among them is Tim Berners-Lee.

Like some of my backyard’s denizens, he’s never lost sight of the horizons that he saw when he first poked his head above the ground. He also feels responsible for helping to set right what others have gotten so woefully wrong after he made his first breathtaking gift to us thirty years ago.

1. The Inventor of the Internet

At one point the joke was that Al Gore had invented the internet, but, in fact, it was Tim Berners-Lee. It’s been three decades since he gathered the critical components, linked them together, and called his creation “the world wide web.” Today however, he’s profoundly disconcerted by several of the directions that his creation has taken and he aims to do something about it.

In 1989, Berners-Lee didn’t sell his original web architecture and the protocols he assembled or attempt to get rich from them. He didn’t think anyone should own the internet, so no patents were ever gotten or royalties sought. The operating standards, developed by a consortium of companies he convened, were also made available to everyone, without cost, so the world wide web could be rapidly adopted. In 2014, the British Council asked prominent scientists, academics, writers and world leaders to chose the cultural moments that had shaped the world most profoundly in the previous 80 years, and they ranked the invention of the World Wide Web number one. This is how they described Berners-Lee’s invention:

The fastest growing communications medium of all time, the internet has changed the shape of modern life forever. We can connect with each other instantly, all over the world.

Because he gave it away with every good intention, perhaps Berners-Lee has more reasons than anyone to be concerned about the poor use that others have made of it. Instead of remaining the de-centralized communication and information sharing platform he envisioned, the internet still isn’t available everywhere, has frequently been weaponized, and is increasingly controlled by a few dominant platforms for their own private gain. But he’s also convinced that these ill winds can be reversed.

He reads and shares an open letter every year on the anniversary of the internet’s creation. His March 2018 and March 2019 letters lay out his primary concerns today.

Last year, Berners-Lee renewed his commitment “to making sure the web is a free, open, creative space – for everyone. That vision is only possible if we get everyone online, and make sure the web works for people [instead of against them].” After making proposals that aim to expand internet access for the poor (and for poor women and girls in particular), he discusses various ways that the web has failed to work “for us.”

What was once a rich selection of blogs and websites has been compressed under the powerful weight of a few dominant platforms. This concentration of power creates a new set of gatekeepers, allowing a handful of platforms to control which ideas and opinions are seen and shared….the fact that power is concentrated among so few companies has made it possible to weaponise the web at scale. In recent years, we’ve seen conspiracy theories trend on social media platforms, fake Twitter and Facebook accounts stoke social tensions, external actors interfere in elections, and criminals steal troves of personal data.

Additionally troubling is the fact that we’ve left these same companies to police themselves, something they can never do effectively given their incentives to maximize profits instead of social goods. “A legal or regulatory framework that accounts for social objectives may help ease those tensions,” he says.

Berners-Lee sees a similar misalignment of incentives between the tech giants and the users they have herded into their platforms.

Two myths currently limit our collective imagination: the myth that advertising is the only possible business model for online companies, and the myth that it’s too late to change the way platforms operate. On both points, we need to be a little more creative.

While the problems facing the web are complex and large, I think we should see them as bugs: problems with existing code and software systems that have been created by people – and can be fixed by people. Create a new set of incentives and changes in the code will follow. …Today, I want to challenge us all to have greater ambitions for the web. I want the web to reflect our hopes and fulfill our dreams, rather than magnify our fears and deepen our divisions.

As the late internet activist, John Perry Barlow, once said: “A good way to invent the future is to predict it.” It may sound utopian, it may sound impossible to achieve… but I want us to imagine that future and build it.

In March, 2018, most of us didn’t know what Berners-Lee had in mind when he talked about building.

This year’s letter mostly elaborated on last year’s themes. In addition to governments “translating laws and regulations for the digital age,” he calls on the tech companies to be a constructive part of the societal conversation (while never mentioning the positive role that their teams of Washington lobbyists might play). In other words, it’s more of a plea or attempt to shame them into action since their profits instead of their public interest remain their primary motivators. It is also unclear what he expects from government leaders and regulators as politics becomes more polarized, but he is plainly calling on the web’s theorizers, inventors and commentators and on its billions of users to pitch in and help.

Berners-Lee proposes a new Contract for the Web, a global collaboration that was launched in Lisbon last November. His Web Summit brought together those:

who agree we need to establish clear norms, laws and standards that underpin the web. Those who support it endorse its starting principles and together we are working out the specific commitments in each area. No one group should do this alone, and all input will be appreciated. Governments, companies and citizens are all contributing, and we aim to have a result later this year.

It’s like the founding spiritual leader convening the increasingly divergent members of his flock before setting out on the next leg of the journey.

The web is for everyone, and collectively we hold the power to change it. It won’t be easy. But if we dream a little and work a lot, we can get the web we want.

In the meantime however, while a new Contract for the Web is clearly necessary, it is not where Berners-Lee is pinning all of his hopes.

The seed came from somewhere and now it’s (maybe) making watermelons

2. An App for an App

The way that the internet was created, any webpage should be accessible from any device that has a web browser, including a smart phone, a personal computer or even an internet-enabled refrigerator. That kind of free access is blocked, however, when the content or the services are locked inside an app and the app distributor (such as Google or Facebook) controls where and how users interact with “what’s inside.” As noted recently in the Guardian: “the rise of the app economy fundamentally bypasses the web, and all the principles associated with it, of openness, interoperability and ease of access.”

On the other hand, perhaps the web’s greatest strength has been the ability of almost anyone to build almost anything on top of it. Since Berners-Lee built the web’s foundation and its first couple of floors, he’s well-positioned to build an alternative that provides the openness, interoperability and ease of access that has been lost while also serving the public’s interest in principles like personal data privacy. At the same time that he has been sponsoring a global quest for new standards to govern the internet, Berner-Lee has also been building an alternative infrastructure on top of the internet’s common foundation.

One irony is that he’s building it with a new kind of app.

Last September, Berners-Lee announced a new, open-source web-based infrastructure called Solid that he has been working on quietly with colleagues at MIT for several years. “Open-source” means that once the rudimentary structures are made public, anyone can contribute to that infrastructure’s web-based applications. Making the original internet free and widely available lead to its rapid adoption and Berners-Lee is plainly hoping that “open source” will have the same impact on Solid. Shortly after his announcement, an article in Tech Crunch reported that open-source developers were already pouring into the Solid platform “in droves.” As Fast Company reported at the time: Berner-Lee’s objective for Solid, and the company behind it called Inrupt, was “to turbocharge a broader movement afoot, among developers around the world, to decentralize the web and take back power from the forces that have profited from centralizing it.” Like a second great awakening.

First and foremost, the Solid web infrastructure is intended to give people back control of their personal data on-line. Every data point that’s created in or added to a Solid software application exists in a Solid “pod,” which is an acronym for “personal on-line data store” that can be kept on Solid’s server or anywhere else that a user chooses. Berners-Lee previewed one of the first Solid apps for the Fast Company reporter after his new platform was announced:

On his screen, there is a simple-looking web page with tabs across the top: Tim’s to-do list, his calendar, chats, address book. He built this app–one of the first on Solid–for his personal use. It is simple, spare. In fact, it’s so plain that, at first glance, it’s hard to see its significance. But to Berners-Lee, this is where the revolution begins. The app, using Solid’s decentralized technology, allows Berners-Lee to access all of his data seamlessly–his calendar, his music library, videos, chat, research. It’s like a mashup of Google Drive, Microsoft Outlook, Slack, Spotify, and WhatsAp.

The difference is that his (or your) personal information is secured within a Solid pod from others who might seek to make use of it in some way.

Inrupt is the start-up company that Berners-Lee and John Bruce launched to drive development of Solid, secure the necessary funding and transform Solid from a radical idea into a viable platform for businesses and individuals. According to Tech Crunch, Inrupt is already gearing up to work on a new digital assistant called Charlie that it describes as “a decentralized version of Alexa.”

What will success look like for Inrupt and Solid? A Wired magazine story last February described it this way:

Bruce and Berners-Lee aren’t waiting for the current generation of tech giants to switch to an open and decentralised model; Amazon and Facebook are unlikely to ever give up their user data caches. But they hope their alternative model will be adopted by an increasingly privacy-aware population of web users and the organisations that wish to cater to them. ‘In the web as we envision it, entirely new businesses, ecosystems and opportunities will emerge and thrive, including hosting companies, application providers, enterprise consultants, designers and developers,’ Bruce says. ‘Everyday web users will find incredible value in new kinds of apps that are impossible on today’s web.

In other words, if we dream a little and work a lot, we can get the web that we want.

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At this stage in his life (Berners-Lee is 64) and given his world-bending accomplishments, he could have retired to a beach or mountaintop somewhere to rest on his laurels, but he hasn’t. Instead, because he can, he heeds the call of his discomfort and is diving back in to champion his original vision. It’s the capability and commitment, hope and action that are the arc of all good work.

Telling him that Solid is a pipe-dream would be like telling my backyard encouragers to stop shouting, trumpeting and fruiting.

This post was adapted from my July 14, 2019 newsletter. When you subscribe, a new newsletter/post will be delivered to your inbox every Sunday morning.

Re-Bundling Protections and Benefits Around Our Work

May 27, 2019 By David Griesing Leave a Comment

Not so long ago, jobs came with a bundle of economic advantages beyond a paycheck. Those advantages included health insurance for you and your family and a pension or post-retirement paycheck based on your years with your employer and how much you’d been paid.

While already a vestige of days past, my job at a municipally-owned utility a little over a decade ago came with family health benefits, a matching 401(k) plan, a pension that vested after 5 years of employment, and days off for a raft of holidays including Flag Day.

That job also included additional economic benefits that I didn’t appreciate enough at the time such as the creditworthiness of my regular salary, continuous training to bolster old skills and develop new ones, regular contributions to Social Security for additional retirement security, unemployment compensation if I ever lost my job, and the stability and continuing enrichment of that job for as long as I had it.

Today, in many of our full-time jobs and nearly all of our part-time ones, between some and all of this bundle of protections and benefits has disappeared.

It is hard to overstate the significance of this unbundling.

Jacob Hacker, a political science professor at Yale calls it a shift of economic risk in his new book The Great Risk Shift: The New Economic Insecurity and the Decline of the American Dream. Hacker argues that the loss of this financial cushion around our work tests our economic resilience whenever unexpected burdens arise.

In the 50 years following the Great Depression, both employers and the government insulated workers from many of the economic risks they might confront when they weren’t working. By contrast, from the 1980s and continuing through today, there has been:

a massive transfer of risk from broad structures of insurance, including those sponsored by the corporate sector as well as the government, onto the fragile balance sheets of American families. This shift has fundamentally reshaped Americans’ relationships with their government, their employers and each other. And it has altered and sometimes dashed the most fundamental expectations associated with the American Dream: a stable middleclass income, an affordable place to live, a guaranteed pension, good health insurance coverage, greater economic security for one’s kids.

As a result of this sea change, the American worker is increasingly on his or her own when confronting whatever comes next, like sudden illness or loss of a job.

Writing this week in the New York Times, Hacker talked about how this “risk shift” is impacting the run-up to the next presidential election, particularly the fact that so many Americans feel insecure.

They may be doing well at the moment, but they fear that, however high they are on the economic ladder, a single bad step or bad event could cause them to slip. A booming economy hasn’t quieted these concerns, because insecurity remains a huge and growing problem in ways that voters and candidates instinctively get, but the sunny job numbers largely hide.

Of course, this insecurity affects not only workers but also the ability of their families, their communities and the country as a whole to flourish—an impact that I discussed a few weeks ago in the post “The Social Contract Around Our Work Is Broken.”

As more of us are “on our own” shouldering the economic risks that employers and the government once protected us from, it has become an increasingly important priority to re-bundle new versions of the benefits and protections that have been lost around working in America.

The leading edge of these rebundling efforts are perhaps most visible when it comes to the gig-economy workers who are striving to build a stable and dependable “living” out of a series of independent-contractor jobs both large and small.

As I argued last week, technological advances involving blockchain, digital currencies, on-line exchanges and markets are promising to make it possible for independent workers to preserve existing income streams while gaining new (and unexpected) ones. The needs of this growing number of gig-economy workers are stimulating efforts to re-bundle some of those traditional insulators around their work. Fortunately, these same innovations will also help to meet the needs of every insecure worker who is trying to get by in a job with few, if any, of the traditional benefits and protections.

1. Getting Paid for Jobs Both Big and Small

One of the most tantalizing possibilities of a future enabled by blockchain and digital currencies is that we could all get paid for time and effort we currently give away for free. Last week I mentioned a few of them, like providing traffic information to news outlets about roads we are already driving on at rush hour or being paid by a social media platform whenever we encourage the conversation there. I also mentioned the current backlash from the banking industry to the rise of on-line exchanges that will facilitate these payments. Part of it is an old guy-new guy turf war.

Over the past week, I’ve come upon some additional information about the hurdle that stands in the way of more seamless payments for a succession of small and big jobs. David Galbraith is a partner at Anthemis, a company seeking creative opportunities between the start-ups and financial institutions that are dedicated to reinventing financial services for the digital marketplace. In a recent interview, Galbraith remarked on the fundamental differences between on-line platforms that cater to consumers in America and their counterpart platforms in China.

In America, digital platforms like Google and Facebook are supported by advertising revenues while in China a platform’s revenue streams come directly from consumers when they buy something they’ve seen there. In other words, the payments process in China is simplified by removing advertising from the business model. Another difference is that Chinese consumers pay for consumer goods with their bank account balances, while American platforms interpose financial intermediaries like PayPal or bank-owned credit card companies that stand between the tech platforms and consumers. As Galbraith observes, the transactions costs are lower in China, “friction is taken out of the system,” and purchases are completed in a “fundamentally more fluid fashion” on the smartphones of Chinese consumers without prompting by a blizzard of ads.

When the inefficiencies imposed by banks and an advertising-based model are removed from the digital “payments system” in America, payments to gig economy workers for big and small increments of work will also be facilitated—making these new jobs more robust. At the most basic level, these changes in how we get paid will support the ways that many of us are working now and even more of us will be working tomorrow.

2. Anxiety About Retirement

When it comes to re-bundling benefits and protections around workers, none may be more significant than retirement security.

A recent article called “Why Work Has Failed Us: Because No One Can Afford to Retire Anymore” provides statistics that indicate how much the “shift in risk” from pensions to “figure out your own retirement” has impacted American workers:

66% of millennials have nothing saved for retirement. Among the working-age families that have retirement savings, the median balance is $5,000, according to the most recent data available from the Economic Policy Institute. For families approaching retirement, the median savings is $21,000–after taxes, on its own, enough to last a couple a little more than a year living at the federal poverty line.

At the same time, the enormity of these unfunded liabilities—how will all of these people with limited retirement savings support themselves?—presents a corresponding opportunity for entrepreneurs who want to help workers regain at least some of their retirement-related security. In the same interview where he discussed digital payment innovations, David Galbraith also considered the enormity of the opportunity for the new fin-tech companies that are trying to meet this need.

[R]etirement is the biggest [risk] shift anyone can possibly imagine. To put a number on it — the committed pension liability shortfalls in developing nations are 450 trillion dollars. That’s half a quadrillion dollars. So when people talk about billion dollar market opportunities — this is a half a quadrillion dollar shift in money.

Of course, no one has found a feasible way to fill the deficit for those who have nothing to retire on today, but there is opportunity in providing expertise to workers who have at least some retirement savings.

Most of us don’t know how to take what we have today and marshal it to cover uncertainties like how much income we’ll need to live after we retire, how long we’re likely to live, what Social Security elections we should make, and how much medical care we’ll need along the way. This is where a new company like Kindur comes in, according to Galbraith.

Kindur helps workers create retirement portfolios that minimize their tax burdens while ensuring that the money they do have for retirement lasts as long as possible. Unlike investment advisors who charge commissions to maximize your savings, Kindur utilizes its on-line platform and need assessment programming to help individuals design their future income. There has never been a web-based service like this before. As the company’s tagline says: “It’s like fuel efficiency for your retirement.”

Kindur isn’t the only fin-tech company that is aiming to provide more comfort (or bundling) around worker retirement. This article from the New York Times last December discusses some of the others.

For a rising gig-economy workforce and the traditional workers who are seeking supplemental income and greater autonomy in the gig economy, the empowerment of acting in more entrepreneurial ways is easily undermined by retirement anxieties. Today, both traditional advocates and new companies are finding other ways to calm those anxieties too.

3. Additional Protections and Benefits for Today’s Workforce

With the exception of supporting teachers in several high-profile confrontations with school districts and state funders recently, labor unions’ ability to protect workers in “union shops” seem to have lost much of their influence over economic decision-makers. They’ve also had a spotty record protecting their members’ bundled benefits and protections over the past 35 years. But while continuing to be the obvious champions for workers pitted against corporate profit taking, as the ways we work evolve, organized labor has other important roles to play in benefiting its changing membership.

Workers no longer stay in one locality with one employer for the course of their careers like they once did. Moreover, the average worker today takes on several different kinds of jobs. In this new world of work, services to meet these realities are desperately needed by the rank-and-file.

For example, unions could help their memberships “vote with their feet” when unbundled jobs no longer support them while providing assistance with “reskilling” when needed, help in finding new work, and housing in the new communities. Moreover, if unions were already providing these services in a tight labor market like we have today, their negotiating power with employers who are reluctant to lose workers would be enhanced significantly.

As Nicholas Colin writes in his thoughtful new book about the future of work called Hedge: A Greater Safety Net for the Entrepreneurial Age:

[I]t’s time we imagine unions that support workers as they switch jobs, unions that would provide their members with all of the resources necessary to find inspiration (“What should I do?”), train (“How can I acquire new skills?”), find a new employer (“When do I start?”), relocate (“I need an affordable house close to my new workplace”).

Labor unions should be key contributors to a re-bundled workforce in traditional companies as well as in the new gig-economy as free-lancers, for example, unionize to protect themselves.

The tremendous need among workers that has been created by the unbundling of jobs has also spelled opportunity for new service providers beyond the need for a more secure retirement. Take a company like Portify that aims to help independent workers in the gig economy who are unable to obtain affordable credit without “a regular salary” and an employment contract.

Portify is currently in the beta-phase of providing financing to independent workers whose only source today is a payday loan charging an exorbitant interest rate. With access to information about its customers’ cash flows and bank accounts, Portify is able to understand what its customers can afford to borrow and to make loans at a substantially lower rate than payday lenders. By doing so, it will provide gig economy workers with the ability to finance growth opportunities so that a succession of smaller jobs can eventually add up to a sustainable and profitable business.

Another promising start-up is Dublin-based Trezeo, which is “an income-smoothing service” for self-employed people. The company calculates its clients’ average weekly income. If that income dips because a client takes a day off or someone doesn’t pay them for their work, Trezeo “tops them up to” their average income with the understanding that it will be paid back when the client is paid again. A service like Trezeo’s allows workers to maintain a steady quality of life–some of that bundling again–despite the ups and downs of gig-economy work.

Finally, Zego is a new company that provides gig economy workers with flexible insurance. For example, if you occasionally drive for Uber, you may not earn enough to afford the additional monthly or annual car insurance coverage that you should have.

To meet this problem, Zego sells insurance by the hour. For drivers, it utilizes an app to collect data about how often they are working and where they are driving that helps it to assess their insurance risks and issue coverage more affordably. Moreover, without a product like Zego’s, independent workers could be put out of business by a single workplace loss that they are unable to cover. A start-up company like this bundles these workers in greater risk protections than were available before.

+ + +

The upside of entrepreneurial, gig-economy jobs is that they promise greater autonomy, flexibility and self-fulfillment, but these work rewards can never be realized when the jobs themselves are laced with insecurity.

The bundling of benefits and protections around these new jobs (and their re-bundling around traditional jobs) promises to reduce more of that insecurity for millions of workers.

Instead of giving up in the face of growing income inequality and job-killing automation, there are thinkers, writers and entrepreneurs who are more hopeful about the future of work because they acknowledge their own and other people’s agency to build a future where workers, their families and communities can flourish again.

Slowly but surely, that hopeful future is being built by the re-bundlers of work today.

This post was adapted from my May 26, 2019 newsletter. When you subscribe, a new newsletter/post will be delivered to your inbox every Sunday morning.

Blockchain Goes to Work

May 20, 2019 By David Griesing Leave a Comment

This week I’ve re-worked a post from last August in the first of a two-part consideration on the future of work. Today, it’s envisioning a workforce where more of us will be working for ourselves, selling increments of our time and talent in what amounts to a series of paying jobs. While it’s a response to the loss of “traditional jobs” to automation, it also holds the promise of greater autonomy, abundance and prosperity if we choose to value the right things by standing up for and safeguarding our human priorities along the way.

The future of work is being designed today. Perhaps the most exciting part is that each one of us has a role to play–is part of a broader negotiation–about how that future should unfold.

1 An Optimistic Vision

The future of work has never looked more abundant, although many don’t see it that way.

Some are busy projecting job losses from automation and brain-replacing artificial intelligence, telling us we’ll all be idled and that much poorer for it. Or they’re identifying the brainpower careers that will remain so we can point ourselves or our tuition payments in their direction. For these forecasters, the future of work is at best the pursuit of diminishing returns.

Some of the most pessimistic (or politically ambitious) among them have been formulating universal income plans to replace today’s more limited safety nets. They tell us that a stipend like this will liberate us to pursue our passions since new government checks will cover our basic necessities. This seems misguided to me. As George Orwell noted, some utopians simply cannot “imagine happiness except in the form of relief, either from effort or pain.”

An alternate vision focuses on innovations that could enable us to do more and better work while unlocking greater prosperity.

One of the enabling technologies that is already ushering in this future is blockchain. Like the protocols for transmitting data across digital networks led to the Internet, blockchain-based software applications could fundamentally change the ways that we work.

A blockchain is a web-based chain of connections, most commonly with no central monitor or regulator. The technology enables every block in the chain to record data that can be seen and reviewed by every other block, maintaining its accuracy through its security protections and transparency. Everyone with access can see what every other connection has recorded in a digital ledger or transaction log. The need for and costs of a “middleman” (like a bank) and other impediments (like legal and financial gatekeepers) are avoided. Unlike traditional recordkeeping, there is no central database for meddlers to corrupt.

Blockchain technology supports the sale and use of digital currencies (like bitcoin) and just as importantly, “smart contracts” that enforce the rules about how value is exchanged by parties when they reach agreement. Ethereum utilizes its blockchain platform to host most of the projects that attract, manage and pay for time and talent in decentralized ways today. Tantalizing glimpses into this future are also available at the social network Steemit and on the payment platform Bitwage.

Steemit’s uses a digital currency called Steem that you can redeem for cash for your contributions to the social network’s “hivemind.” For example, users are paid for posts, for the number of people liking their posts, for how quickly you spot another post that becomes popular, that is, for the value of your contributions to the network. Users are funding jobs like travel blogging while they crisscross the world and, reportedly, one early adopter has already earned more than a million dollars worth of Steem. In more traditional buying-and-selling transactions, Bitwage’s payment application allows employees or freelancers to receive their wages in bitcoin without requiring either their employers or clients to use a digital currency exchange.

For work-based ecosystems built on blockchains to evolve further, they will need to become faster and more scalable without sacrificing the security and decentralization that are their hallmarks. In this pursuit, Ethereum and a raft of competitors are experimenting with a protocol called Lightening that can settle millions of digital currency transactions more quickly and cheaply but that needs “to go off the blockchain” in order to do so. These companies are also exploring structural changes to basic blockchain technology. The prize that drives them is an online platform that is durable enough to support a global marketplace where every kind of work can be bought and sold.

Let’s call it a work2benefit exchange.

Because your time and talent has value and is in limited supply, you could sell it in a market that’s vibrant enough to buy it. A blockchain-based exchange might easily handle transactions that involve very small as well as larger, project-oriented jobs. Because you have capabilities that you’ve sold before and others that you’ve given away because there was no way to be compensated, an exchange like this could help secure prior income streams while providing you with new ones. Such a marketplace would easily dwarf Walmart’s in size without the downsides of a company middleman taking his profits, making you keep his work schedule, commute to his place of business or contribute to his overhead.

Previously unrealized income streams—even small ones—will be particularly welcome.

Suppose you’re asked to provide 5 minutes of feedback on your recent doctor’s visit. Your scarce resources are the time and judgment that you might not provide if you weren’t being paid for them. Their one-time value might be modest, but as the demands for your input keep coming, payments for it will add up. A blockchain exchange could pay you for editing a resume in 20 minutes or designing a company’s logo in 2 hours; providing traffic-cam information on heavily traveled routes you are already taking; matchmaking acquaintances with service providers that have something they need; selling your personal data to marketers who want you to buy their products; maybe even a government incentive for completing your tax returns or voting in the next election. Similarly, when I need the benefit of someone else’s work, this marketplace could connect me to it, even if the time and talent is half a world away.

Work2benefit exchanges that can handle incremental transactions like these haven’t been built yet, let alone populated by enough buyers and sellers to make them viable—but they’re coming. You’ll still need your judgment, vision and hustle, but before long it will be possible to make a living in a marketplace where you (and maybe billions of others) will each be blocks in a global blockchain. Many people will continue to work in groups. Offices and factories won’t vanish. But traditional jobs that once came with pensions, health benefits and provable credit will become increasingly scarce. The stripped-down, “independent contractor” work that’s left will almost certainly be supplemented by new ways of getting paid for your human resources.

Blockchain and related technologies will unlock new categories of personal wealth and autonomy. They could fill the future of work with greater abundance for us to share with one another. Tomorrow’s challenge won’t be finding enough work to make a living but reimagining and re-bundling job securities like health care and creditworthiness around all the new jobs we’ll be doing. Next week, I’ll introduce you to some of the people and companies that are helping to build these protections around our increasingly autonomous workforce.

2. The Future Begins With a Vision

A vision should linger and inspire for long enough that it fixes in the minds eye where it becomes part of the imagination, a cause for hope, and fuel that’s needed to overcome the obstacles that will always stand in its way. Here, in brief, are some of the challenges that a bold-enough vision will need to see us through, starting with the inevitable turf wars and technology challenges:

-There is resistance from the mainstream banking community to digital currencies and the exchanges that convert them into cash for gig economy paychecks. For example, a story in today’s Wall Street Journal chronicles the banking controversy that has already embroiled one digital currency exchange. Some of the current banking industry will need to be disrupted so that new “fin-tech” mechanisms can take their place.

-There are technology challenges to making digital platforms large enough to handle the smart contracts that will bring all these new buyers and sellers of work together. The ecosystem of applications will need to be robust enough to attract, manage and compensate the sale of goods and talent in a global marketplace. To meet these challenges, new applications are being developed outside of blockchain’s architecture (with its attendant security risks and middleman costs) while some of the fundamentals behind blockchain technology itself are being reconsidered. If you’re interested in a deeper dive, more about blockchain’s “scalability” hurdles can be found here.

-Managing yourself to a stable, reliable income from many jobs in a way that meets your needs and your family’s needs requires its own expertise. The freedom to decide when to work and how often to work is liberating, but as the recent strikes by Uber drivers illustrate, it isn’t easy to cobble a patchwork of compensated time “into a living” while also selling your services at “a market price.” We’ll all have to learn more about how to put our livelihoods together while finding new ways to bargain effectively for what we need from each one of our work-based exchanges.

-Not everyone is naturally suited to be an entrepreneur, so we’ll have to learn how to embrace additional parts of our entrepreneurial spirit too. Working for yourself involves not only doing your paying jobs but also functioning as your back and front offices by doing your own marketing, accounting, taxes, establishing and monitoring your co-working relationships, maintaining your skill levels, and determining the prices for your goods and services. Most 9-5 jobs didn’t require you to do all these things, but as jobs like this disappear, you’ll be doing more of them yourself—with both the upsides and downsides that new opportunities for growth and mastery can bring.

Thinking through the hurdles hopefully reminds us of the promises. We’ll thrive with greater freedom, convenience and efficiency by working where, when and how we want to. We’ll be paid for increments of our time that we used to give away for free. We’ll increasingly stand both behind our work and out in front of it in ways that will make “what we do” an even more powerful demonstration of who we are and what is important to us.

This future of work is being written today.

We’re building it with our ideas and conversations as new ecosystems gradually evolve around it.

What comes next will be exciting and daunting, both creative and destructive, as the familiar is replaced by something that few of us have experienced before.

This future can have a human face, an opportunity for workers, families and communities to flourish, as long as we don’t leave the ideas and conversations about how that can happen to someone else.

This post was adapted from my May 19, 2019 newsletter. When you subscribe, a new newsletter/post will be delivered to your inbox every Sunday morning.

The Human Purpose Behind Smart Cities

March 24, 2019 By David Griesing Leave a Comment

It is human priorities that should be driving Smart City initiatives, like the ones in Toronto profiled here last week.

Last week’s post also focused on a pioneering spirit in Toronto that many American cities and towns seem to have lost. While we entrench in the moral righteousness of our sides in the debate—including, for many, a distrust of collective governance, regulation and taxation—we drift towards an uncertain future instead of claiming one that can be built on values we actually share.

In its King Street and Quayside initiatives, Toronto is actively experimenting with the future it wants based on its residents’ commitment to sustaining their natural environment in the face of urban life’s often toxic impacts. They’re conducting these experiments in a relatively civil, collaborative and productive way—an urban role model for places that seem to have forgotten how to work together. Toronto’s bold experiments are also utilizing “smart” technologies in their on-going attempts to “optimize” living and working in new, experimental communities.

During a short trip this week, I got to see the leading edges of New York City’s new Hudson Yards community (spread over 28 acres with an estimated $25 billion price tag) and couldn’t help being struck by how much it catered to those seeking more luxury living, shopping and workspaces than Manhattan already affords. In other words, how much it could have been a bold experiment about new ways that all of its citizens might live and work in America’s first city for the next half-century, but how little it actually was. A hundred years ago, one of the largest immigrant migrations in history made New York City the envy of the world. With half of its current citizens being foreign-born, perhaps the next century, unfurling today, belongs to newer cities like Toronto.

Still, even with its laudable ambition, it will not be easy for Toronto and other future-facing communities to get their Smart City initiatives right, as several of you were also quick to remind me last week. Here is a complaint from a King Street merchant that one of you (thanks Josh!) found and forwarded that seems to cast what is happening in Toronto in a less favorable light than I had focused upon it:

What a wonderful story. But as with [all of] these wonderful plans some seem to be forgotten. As it appears are the actual merchants. Google certainly a big winner here. Below an excerpt written by one of the merchants:

‘The City of Toronto has chosen the worst time, in the worst way, in the worst season to implement the pilot project. Their goal is clearly to move people through King St., not to King St. For years King St. was a destination, now it is a thoroughfare.

‘The goal of the King St. Pilot project was said to be to balance three important principles: to move people more effectively on transit, to support business and economic prosperity and to improve public space. In its current form, the competing principles seem to be decidedly tilted away from the economic well-being of merchants and biases efficiency over convenience. The casual stickiness of pedestrians walking and stopping at stores, restaurants and other merchants is lost.

‘Additionally, the [transit authority] TTC has eliminated a number of stops along King St., forcing passengers to walk further to enter and disembark streetcars, further reducing pedestrian traffic and affecting areas businesses. The TTC appears to believe that if they didn’t have to pick up and drop off people, they could run their system more effectively.

‘The dubious benefits of faster street car traffic on King St. notwithstanding, the collateral damage of the increased traffic of the more than 20,000 cars the TTC alleges are displaced from King St to adjoining streets has turned Adelaide, Queen, Wellington and Front Sts. into a gridlock standstill. Anyone who has tried to navigate the area can attest that much of the time, no matter how close you are you can’t get there from here.

‘Along with the other merchants of King St. and the Toronto Entertainment District we ask that Mayor Tory and Toronto council to consider a simple, reasonable and cost-effective alternative. Put lights on King St. that restrict vehicle traffic during rush hours, but return King St. to its former vibrant self after 7 p.m., on weekends and statutory holidays. It’s smart, fair, reasonable and helps meet the goals of the King St. pilot project.

Two things about this complaint seemed noteworthy. The first is how civil and constructive this criticism is in a process that hopes to “iterate” as real time impacts are assessed. It’s a tribute that Toronto’s experiments not only invite but are also receiving feedback like this. Alas, the second take-away from Josh’s comment is far more nettlesome. “[However many losers there may be along the way:] Google certainly a big winner here.”

The tech giant’s partnership with Canada’s governments in Toronto raises a constellation of challenging issues, but it’s useful to recall that pioneers who dare to claim new frontiers always do so with the best technology that’s available. While the settling of the American West involved significant collateral damage (to Native Americans and Chinese migrants, to the buffalo and the land itself), it would not have been possible without existing innovations and new ones that these pioneers fashioned along the way. Think of the railroads, the telegraph poles, even something as low-tech as the barbed wire that was used to contain livestock.

The problem isn’t human and corporate greed or heartless technology—we know about them already—but failing to recognize and reduce their harmful impacts before it is too late. The objective for pioneers on new frontiers should always be maximizing the benefits while minimizing the harms that can be foreseen from the very beginning instead of looking back with anger after the damage is done.

We have that opportunity with Smart City initiatives today.

Because they concentrate many of the choices that will have to be made when we boldly dare to claim the future of America again, I’ve been looking for a roadmap through the moral thicket in the books and articles that are being written about these initiatives today. Here are some of the markers that I’ve discovered.

Human priorities, realized with the help of technology

1. Markers on the Road to Smarter and More Vibrant Communities

The following insights come almost entirely from a short article by Robert Kitchin, a professor at Maynooth University in Ireland. In my review of the on-going conversation about Smart Cities, I found him to be one of its most helpful observers.

In his article, Kitchin discusses the three principal ways that smart cities are understood, the key promises smart initiatives make to stakeholders, and the perils to be avoided around these promises.

Perhaps not surprisingly, people envision cities and other communities “getting smarter” in different ways. One constituency sees an opportunity to improve both “urban regulation and governance through instrumentation and data-driven systems”–essentially, a management tool. A bolder and more transformative vision sees information and communication technology “re-configur[ing] human capital, creativity, innovation, education, sustainability, and management,” thereby “produc[ing] smarter citizens, workers and public servants” who “can enact polic[ies], produce better products… foster indigenous entrepreneurship and attract inward investment.” The first makes the frontier operate more efficiently while the second improves nearly every corner of it.

The third Smart City vision is “a counter-weight or alternative” to each of them. It wants these technologies “to promote a citizen-centric model of development that fosters social innovation and social justice, civic engagement and hactivism, and transparent and accountable governance.” In this model, technology serves social objectives like greater equality and fairness. Kitchin reminds us that these three visions are not mutually exclusive. It seems to me that the priorities embedded in a community’s vision of a “smarter” future could include elements of each of them, functioning like checks and balances, in tension with one another.

Smart City initiatives promise to solve pressing urban problems, including poor economic performance; government dysfunction; constrained mobility; environmental degradation; a declining quality of life, including risks to safety and security; and a disengaged, unproductive citizen base. Writes Kitchin:

the smart city promises to solve a fundamental conundrum of cities – how to reduce costs and create economic growth and resilience at the same time as producing sustainability and improving services, participation and quality of life – and to do so in commonsensical, pragmatic, neutral and apolitical ways.

Once again, it’s a delicate balancing act with a range of countervailing interests and constituencies, as you can see in the chart from a related discussion above.

The perils of Smart Cities should never overwhelm their promise in my view, but urban pioneers should always have them in mind (from planning through implementation) because some perils only manifest themselves over time. According to Kitchin, the seven dangers in pursuing these initiatives include:

–taking “a ‘one size fits all’ approach, treating cities as generic markets and solutions [that are] straightforwardly scalable and movable”;

–assuming that initiatives are “objective and non-ideological, grounded in either science or commonsense.” You can aim for these ideals, but human and organizational preferences and biases will always be embedded within them.

–believing that the complex social problems in communities can be reduced to “neatly defined technical problems” that smart technology can also solve. The ways that citizens have always framed and resolved their community problems cannot be automated so easily. (This is also the thrust of Ben Green’s Smart Enough City: Putting Technology in Its Place to Reclaim Our Urban Future, which will be published by MIT Press in April. In it he argues for “smart enough alternatives” that are attainable with the help of technology but never reducible to technology solutions alone.)

–engaging with corporations that are using smart city technologies “to capture government functions as new market opportunities.” One risk of a company like Google to communities like Toronto’s is that Google might lock Toronto in to its proprietary technologies and vendors over a long period of time or use Toronto’s citizen data to gain business opportunities in other cities.

–becoming straddled with “buggy, brittle and hackable” systems that are ever more “complicated, interconnected and dependent on software” while becoming more resistant to manual fixes.

–becoming victimized by “pervasive dataveillance that erodes privacy” through practices like “algorithmic social sorting (whether people get a loan, a tenancy, a job, etc), dynamic pricing (whereby different people pay varying prices depending on their perceived customer value) and anticipatory governance using predictive profiling (wherein data precedes how a person is policed and governed).” Earlier this month, my post on popular on-line games like Fortnite highlighted the additional risk that invasive technologies can use the data they are gathering to change peoples’ behavior.

-and lastly, reinforcing existing power structures and inequalities instead of eroding or reconfiguring them.

While acknowledging the promise of Smart Cities at their best, Kitchin closes his article with this cautionary note:

the realities of implementation are messier and more complex than the marketing hype of corporations or city managers portray and there are a number of social, political, ethical and legal concerns with respect to the kind of society smart city initiatives seek to create. As such, whilst networked urbanism has benefits, it also poses challenges and risks that are often little explored or legislated for ahead of implementation. Indeed, the pace of development and rollout of smart city technologies is proceeding well ahead of wider reflection, critique and regulation.

Putting the cart before a suitably-designed horse is a problem with all new and seductive technologies that get embraced before their harms are identified or can be addressed—a quandary that was also considered here in a post called “Looking Out for the Human Side of Technology.”

2. The Value of Our Data

A few additional considerations about the Smart City are also worth bearing in mind as debate about these initiatives intensifies.

In a March 8, 2019 post, Kurtis McBride wrote about two different ways “to value” the data that these initiatives will produce, and his distinction is an important one. It’s a discussion that citizens, government officials and tech companies should be having, but unfortunately are not having as much as they need to.

When Smart City data is free to everyone, there is the risk that the multinationals generating it will merely use it to increase their power and profits in the growing market for Smart City technologies and services. From the residents’ perspective, McBride argues that it’s “reasonable for citizens to expect to see benefit” from their data, while noting that these same citizens will also be paying dearly for smart upgrades to their communities. His proposal on valuing citizen data depends on how it will be used by tech companies like Google or local service providers. For example, if citizen data is used:

to map the safest and fastest routes for cyclists across the city and offers that information free to all citizens, [the tech company] is providing citizen benefit and should be able to access the needed smart city data free of charge.

But, if a courier company uses real-time traffic data to optimize their routes, improving their productivity and profit margins – there is no broad citizen benefit. In those cases, I think it’s fair to ask those organizations to pay to access the needed city data, providing a revenue stream cities can then use to improve city services for all.

Applying McBride’s reasoning, an impartial body in a city like Toronto would need to decide whether Google has to pay for data generated in its Quayside community by consulting a benefit-to-citizens standard. Clearly, if Google wanted to use Quayside data in a Smart City initiative in say Colorado or California, it would need to pay Toronto for the use of its citizens’ information.

Of course, addressing the imbalance between those (like us) who provide the data and the tech companies that use it to increase their profits and influence is not just a problem for Smart City initiatives, and changing the “value proposition” around our data is surely part of the solution. In her new book Age of Surveillance Capitalism: the Fight for a Human Future in the New Frontier of Power, Harvard Business School’s Shoshana Zuboff says that “you’re the product if these companies aren’t paying you for your data” does not state the case powerfully enough. She argues that the big tech platforms are like elephant poachers and our personal data like those elephants’ ivory tusks. “You are not the product,” she writes. “You are the abandoned carcass.”

Smart City initiatives also provide a way to think about “the value of our data” in the context of our living and working and not merely as the gateway to more convenient shopping, more addictive gaming experiences or “free” search engines like Googles’.

This post is adapted from my March 24, 2019 newsletter. Subscribe today and receive an email copy of future posts in your inbox each week.