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  • The Human Condition and The Black Box Society

    The Human Condition and The Black Box Society

    Frank Pasquale, The Black Box Society (Harvard University Press, 2015)a review of Frank Pasquale, The Black Box Society: The Secret Algorithms That Control Money and Information (Harvard University Press, 2015)
    by Nicole Dewandre
    ~

    1. Introduction

    This review is informed by its author’s specific standpoint: first, a lifelong experience in a policy-making environment, i.e. the European Commission; and, second, a passion for the work of Hannah Arendt and the conviction that she has a great deal to offer to politics and policy-making in this emerging hyperconnected era. As advisor for societal issues at DG Connect, the department of the European Commission in charge of ICT policy at EU level, I have had the privilege of convening the Onlife Initiative, which explored the consequences of the changes brought about by the deployment of ICTs on the public space and on the expectations toward policy-making. This collective thought exercise, which took place in 2012-2013, was strongly inspired by Hannah Arendt’s 1958 book The Human Condition.

    This is the background against which I read the The Black Box Society: The Secret Algorithms Behind Money and Information by Frank Pasquale (references to which are indicated here parenthetically by page number). Two of the meanings of “black box“—a device that keeps track of everything during a flight, on the one hand, and the node of a system that prevents an observer from identifying the link(s) between input and output, on the other hand—serve as apt metaphors for today’s emerging Big Data environment.

    Pasquale digs deep into three sectors that are at the root of what he calls the black box society: reputation (how we are rated and ranked), search (how we use ratings and rankings to organize the world), and finance (money and its derivatives, whose flows depend crucially on forms of reputation and search). Algorithms and Big Data have permeated these three activities to a point where disconnection with human judgment or control can transmogrify them into blind zombies, opening new risks, affordances and opportunities. We are far from the ideal representation of algorithms as support for decision-making. In these three areas, decision-making has been taken over by algorithms, and there is no “invisible hand” ensuring that profit-driven corporate strategies will deliver fairness or improve the quality of life.

    The EU and the US contexts are both distinct and similar. In this review, I shall not comment on Pasquale’s specific policy recommendations in detail, even if as European, I appreciate the numerous references to European law and policy that Pasquale commends as good practices (ranging from digital competition law, to welfare state provision, to privacy policies). I shall instead comment from a meta-perspective, that of challenging the worldview that implicitly undergirds policy-making on both sides of the Atlantic.

    2. A Meta-perspective on The Black Box Society

    The meta-perspective as I see it is itself twofold: (i) we are stuck with Modern referential frameworks, which hinder our ability to attend to changing human needs, desires and expectations in this emerging hyperconnected era, and (ii) the personification of corporations in policymaking reveals shortcomings in the current representation of agents as interest-led beings.

    a) Game over for Modernity!

    As stated by the Onlife Initiative in its “Onlife Manifesto,” through its expression “Game over for Modernity?“, it is time for politics and policy-making to leave Modernity behind. That does not mean going back to the Middle Ages, as feared by some, but instead stepping firmly into this new era that is coming to us. I believe with Genevieve Bell and Paul Dourish that it is more effective to consider that we are now entering into the ubiquitous computing era instead of looking at it as if it was approaching fast.[1] With the miniaturisation of devices and sensors, with mobile access to broadband internet and with the generalized connectivity of objects as well as of people, not only do we witness an increase of the online world, but, more fundamentally, a collapse of the distinction between the online and the offline worlds, and therefore a radically new socio-technico-natural compound. We live in an environment which is increasingly reactive and talkative as a result of the intricate mix between off-line and online universes. Human interactions are also deeply affected by this new socio-technico-natural compound, as they are or will soon be “sticky”, i.e. leave a material trace by default and this for the first time in history. These new affordances and constraints destabilize profoundly our Modern conceptual frameworks, which rely on distinctions that are blurring, such as the one between the real and the virtual or the ones between humans, artefacts and nature, understood with mental categories dating back from the Enlightenment and before. The very expression “post-Modern” is not accurate anymore or is too shy, as it continues to position Modernity as its reference point. It is time to give a proper name to this new era we are stepping into, and hyperconnectivity may be such a name.

    Policy-making however continues to rely heavily on Modern conceptual frameworks, and this not only from the policy-makers’ point of view but more widely from all those engaging in the public debate. There are many structuring features of the Modern conceptual frameworks and it goes certainly beyond this review to address them thoroughly. However, when it comes to addressing the challenges described by The Black Box Society, it is important to mention the epistemological stance that has been spelled out brilliantly by Susan H. Williams in her Truth, Autonomy, and Speech: Feminist Theory and the First Amendment: “the connection forged in Cartesianism between knowledge and power”[2]. Before encountering Susan Williams’s work, I came to refer to this stance less elegantly with the expression “omniscience-omnipotence utopia”[3]. Williams writes that “this epistemological stance has come to be so widely accepted and so much a part of many of our social institutions that it is almost invisible to us” and that “as a result, lawyers and judges operate largely unself-consciously with this epistemology”[4]. To Williams’s “lawyers and judges”, we should add policy-makers and stakeholders.  This Cartesian epistemological stance grounds the conviction that the world can be elucidated in causal terms, that knowledge is about prediction and control, and that there is no limit to what men can achieve provided they have the will and the knowledge. In this Modern worldview, men are considered as rational subjects and their freedom is synonymous with control and autonomy. The fact that we have a limited lifetime and attention span is out of the picture as is the human’s inherent relationality. Issues are framed as if transparency and control is all that men need to make their own way.

    1) One-Way Mirror or Social Hypergravity?

    Frank Pasquale is well aware of and has contributed to the emerging critique of transparency and he states clearly that “transparency is not just an end in itself” (8). However, there are traces of the Modern reliance on transparency as regulative ideal in the Black Box Society. One of them is when he mobilizes the one-way mirror metaphor. He writes:

    We do not live in a peaceable kingdom of private walled gardens; the contemporary world more closely resembles a one-way mirror. Important corporate actors have unprecedented knowledge of the minutiae of our daily lives, while we know little to nothing about how they use this knowledge to influence the important decisions that we—and they—make. (9)

    I refrain from considering the Big Data environment as an environment that “makes sense” on its own, provided someone has access to as much data as possible. In other words, the algorithms crawling the data can hardly be compared to a “super-spy” providing the data controller with an absolute knowledge.

    Another shortcoming of the one-way mirror metaphor is that the implicit corrective is a transparent pane of glass, so the watched can watch the watchers. This reliance on transparency is misleading. I prefer another metaphor that fits better, in my view: to characterise the Big Data environment in a hyperconnected conceptual framework. As alluded to earlier, in contradistinction to the previous centuries and even millennia, human interactions will, by default, be “sticky”, i.e. leave a trace. Evanescence of interactions, which used to be the default for millennia, will instead require active measures to be ensured. So, my metaphor for capturing the radicality and the scope of this change is a change of “social atmosphere” or “social gravity”, as it were. For centuries, we have slowly developed social skills, behaviors and regulations, i.e. a whole ecosystem, to strike a balance between accountability and freedom, in a world where “verba volant and scripta manent[5], i.e. where human interactions took place in an “atmosphere” with a 1g “social gravity”, where they were evanescent by default and where action had to be taken to register them. Now, with all interactions leaving a trace by default, and each of us going around with his, her or its digital shadow, we are drifting fast towards an era where the “social atmosphere” will be of heavier gravity, say “10g”. The challenge is huge and will require a lot of collective learning and adaptation to develop the literacy and regulatory frameworks that will recreate and sustain the balance between accountability and freedom for all agents, human and corporations.

    The heaviness of this new data density stands in-between or is orthogonal to the two phantasms of bright emancipatory promises of Big Data, on the one hand, or frightening fears of Big Brother, on the other hand. Because of this social hypergravity, we, individually and collectively, have indeed to be cautious about the use of Big Data, as we have to be cautious when handling dangerous or unknown substances. This heavier atmosphere, as it were, opens to increased possibilities of hurting others, notably through harassment, bullying and false rumors. The advent of Big Data does not, by itself, provide a “license to fool” nor does it free agents from the need to behave and avoid harming others. Exploiting asymmetries and new affordances to fool or to hurt others is no more acceptable behavior as it was before the advent of Big Data. Hence, although from a different metaphorical standpoint, I support Pasquale’s recommendations to pay increased attention to the new ways the current and emergent practices relying on algorithms in reputation, search and finance may be harmful or misleading and deceptive.

    2) The Politics of Transparency or the Exhaustive Labor of Watchdogging?

    Another “leftover” of the Modern conceptual framework that surfaces in The Black Box Society is the reliance on watchdogging for ensuring proper behavior by corporate agents. Relying on watchdogging for ensuring proper behavior nurtures the idea that it is all right to behave badly, as long as one is not seen doing do. This reinforces the idea that the qualification of an act depends from it being unveiled or not, as if as long as it goes unnoticed, it is all right. This puts the entire burden on the watchers and no burden whatsoever on the doers. It positions a sort of symbolic face-to-face between supposed mindless firms, who are enabled to pursue their careless strategies as long as they are not put under the light and people who are expected to spend all their time, attention and energy raising indignation against wrong behaviors. Far from empowering the watchers, this framing enslaves them to waste time monitoring actors who should be acting in much better ways already. Indeed, if unacceptable behavior is unveiled, it raises outrage, but outrage is far from bringing a solution per se. If, instead, proper behaviors are witnessed, then the watchers are bound to praise the doers. In both cases, watchers are stuck in a passive, reactive and specular posture, while all the glory or the shame is on the side of the doers. I don’t deny the need to have watchers, but I warn against the temptation of relying excessively on the divide between doers and watchers to police behaviors, without engaging collectively in the formulation of what proper and inappropriate behaviors are. And there is no ready-made consensus about this, so that it requires informed exchange of views and hard collective work. As Pasquale explains in an interview where he defends interpretative approaches to social sciences against quantitative ones:

    Interpretive social scientists try to explain events as a text to be clarified, debated, argued about. They do not aspire to model our understanding of people on our understanding of atoms or molecules. The human sciences are not natural sciences. Critical moral questions can’t be settled via quantification, however refined “cost benefit analysis” and other political calculi become. Sometimes the best interpretive social science leads not to consensus, but to ever sharper disagreement about the nature of the phenomena it describes and evaluates. That’s a feature, not a bug, of the method: rather than trying to bury normative differences in jargon, it surfaces them.

    The excessive reliance on watchdogging enslaves the citizenry to serve as mere “watchdogs” of corporations and government, and prevents any constructive cooperation with corporations and governments. It drains citizens’ energy for pursuing their own goals and making their own positive contributions to the world, notably by engaging in the collective work required to outline, nurture and maintain the shaping of what accounts for appropriate behaviours.

    As a matter of fact, watchdogging would be nothing more than an exhausting laboring activity.

    b) The Personification of Corporations

    One of the red threads unifying The Black Box Society’s treatment of numerous technical subjects is unveiling the oddness of the comparative postures and status of corporations, on the one hand, and people, on the other hand. As nicely put by Pasquale, “corporate secrecy expands as the privacy of human beings contracts” (26), and, in the meantime, the divide between government and business is narrowing (206). Pasquale points also to the fact that at least since 2001, people have been routinely scrutinized by public agencies to deter the threatening ones from hurting others, while the threats caused by corporate wrongdoings in 2008 gave rise to much less attention and effort to hold corporations to account. He also notes that “at present, corporations and government have united to focus on the citizenry. But why not set government (and its contractors) to work on corporate wrongdoings?” (183) It is my view that these oddnesses go along with what I would call a “sensitive inversion”. Corporations, which are functional beings, are granted sensitivity as if they were human beings, in policy-making imaginaries and narratives, while men and women, who are sensitive beings, are approached in policy-making as if they were functional beings, i.e. consumers, job-holders, investors, bearer of fundamental rights, but never personae per se. The granting of sensitivity to corporations goes beyond the legal aspect of their personhood. It entails that corporations are the one whose so-called needs are taken care of by policy makers, and those who are really addressed to, qua persona. Policies are designed with business needs in mind, to foster their competitiveness or their “fitness”. People are only indirect or secondary beneficiaries of these policies.

    The inversion of sensitivity might not be a problem per se, if it opened pragmatically to an effective way to design and implement policies which bear indeed positive effects for men and women in the end. But Pasquale provides ample evidence showing that this is not the case, at least in the three sectors he has looked at more closely, and certainly not in finance.

    Pasquale’s critique of the hypostatization of corporations and reduction of humans has many theoretical antecedents. Looking at it from the perspective of Hannah Arendt’s The Human Condition illuminates the shortcomings and risks associated with considering corporations as agents in the public space and understanding the consequences of granting them sensitivity, or as it were, human rights. Action is the activity that flows from the fact that men and women are plural and interact with each other: “the human condition of action is plurality”.[6] Plurality is itself a ternary concept made of equality, uniqueness and relationality. First, equality as what we grant to each other when entering into a political relationship. Second, uniqueness refers to the fact that what makes each human a human qua human is precisely that who s/he is is unique. If we treat other humans as interchangeable entities or as characterised by their attributes or qualities, i.e., as a what, we do not treat them as human qua human, but as objects. Last and by no means least, the third component of plurality is the relational and dynamic nature of identity. For Arendt, the disclosure of the who “can almost never be achieved as a wilful purpose, as though one possessed and could dispose of this ‘who’ in the same manner he has and can dispose of his qualities”[7]. The who appears unmistakably to others, but remains somewhat hidden from the self. It is this relational and revelatory character of identity that confers to speech and action such a critical role and that articulates action with identity and freedom. Indeed, for entities for which the who is partly out of reach and matters, appearance in front of others, notably with speech and action, is a necessary condition of revealing that identity:

    Action and speech are so closely related because the primordial and specifically human act must at the same time contain the answer to the question asked of every newcomer: who are you? In acting and speaking, men show who they are, they appear. Revelatory quality of speech and action comes to the fore where people are with others and neither for, nor against them, that is in sheer togetherness.[8]

    So, in this sense, the public space is the arena where whos appear to other whos, personae to other personae.

    For Arendt, the essence of politics is freedom and is grounded in action, not in labour and work. The public space is where agents coexist and experience their plurality, i.e. the fact that they are equal, unique and relational. So, it is much more than the usual American pluralist (i.e., early Dahl-ian) conception of a space where agents worry for exclusively for their own needs by bargaining aggressively. In Arendt’s perspective, the public space is where agents, self-aware of their plural characteristic, interact with each other once their basic needs have been taken care of in the private sphere. As highlighted by Seyla Benhabib in The Reluctant Modernism of Hannah Arendt, “we not only owe to Hannah Arendt’s political philosophy the recovery of the public as a central category for all democratic-liberal politics; we are also indebted to her for the insight that the public and the private are interdependent”.[9] One could not appear in public if s/he or it did not have also a private place, notably to attend to his, her or its basic needs for existence. In Arendtian terms, interactions in the public space take place between agents who are beyond their satiety threshold. Acknowledging satiety is a precondition for engaging with others in a way that is not driven by one’s own interest, but rather by their desire to act together with others—”in sheer togetherness”—and be acknowledged as who they are. If an agent perceives him-, her- or itself and behave only as a profit-maximiser or as an interest-led being, i.e. if s/he or it has no sense of satiety and no self-awareness of the relational and revelatory character of his, her or its identity, then s/he or it cannot be a “who” or an agent in political terms, and therefore, respond of him-, her- or itself. It does simply not deserve -and therefore should not be granted- the status of a persona in the public space.

    It is easy to imagine that there can indeed be no freedom below satiety, and that “sheer togetherness” would just be impossible among agents below their satiety level or deprived from having one. This is however the situation we are in, symbolically, when we grant corporations the status of persona while considering efficient and appropriate that they care only for profit-maximisation. For a business, making profit is a condition to stay alive, as for humans, eating is a condition to stay alive. However, in the name of the need to compete on global markets, to foster growth and to provide jobs, policy-makers embrace and legitimize an approach to businesses as profit-maximisers, despite the fact this is a reductionist caricature of what is allowed by the legal framework on company law[10]. So, the condition for businesses to deserve the status of persona in the public space is, no less than for men and women, to attend their whoness and honour their identity, by staying away from behaving according to their narrowly defined interests. It means also to care for the world as much, if not more, as for themselves.

    This resonates meaningfully with the quotation from Heraclitus that serves as the epigraph for The Black Box Society: “There is one world in common for those who are awake, but when men are asleep each turns away into a world of his own”. Reading Arendt with Heraclitus’s categories of sleep and wakefulness, one might consider that totalitarianism arises—or is not far away—when human beings are awake in private, but asleep in public, in the sense that they silence their humanness or that their humanness is silenced by others when appearing in public. In this perspective, the merging of markets and politics—as highlighted by Pasquale—could be seen as a generalized sleep in the public space of human beings and corporations, qua personae, while all awakened activities are taking place in the private, exclusively driven by their needs and interests.

    In other words—some might find a book like The Black Box Society, which offers a bold reform agenda for numerous agencies, to be too idealistic. But in my view, it falls short of being idealistic enough: there is a missing normative core to the proposals in the book, which can be corrected by democratic, political, and particularly Arendtian theory. If a populace has no acceptance of a certain level of goods and services prevailing as satiating its needs, and if it distorts the revelatory character of identity into an endless pursuit of a limitless growth, it cannot have the proper lens and approach to formulate what it takes to enable the fairness and fair play described in The Black Box Society.

    3. Stepping into Hyperconnectivity

    1) Agents as Relational Selves

    A central feature of the Modern conceptual framework underlying policymaking is the figure of the rational subject as political proxy of humanness. I claim that this is not effective anymore in ensuring a fair and flourishing life for men and women in this emerging hyperconnected era and that we should adopt instead the figure of a “relational self” as it emerges from the Arendtian concept of plurality.

    The concept of the rational subject was forged to erect Man over nature. Nowadays, the problem is not so much to distinguish men from nature, but rather to distinguish men—and women—from artefacts. Robots come close to humans and even outperform them, if we continue to define humans as rational subjects. The figure of the rational subject is torn apart between “truncated gods”—when Reason is considered as what brings eventually an overall lucidity—on the one hand, and “smart artefacts”—when reason is nothing more than logical steps or algorithms—on the other hand. Men and women are neither “Deep Blue” nor mere automatons. In between these two phantasms, the humanness of men and women is smashed. This is indeed what happens in the Kafkaesque and ridiculous situations where a thoughtless and mindless approach to Big Data is implemented, and this from both stance, as workers and as consumers. As far as the working environment is concerned, “call centers are the ultimate embodiment of the panoptic workspace. There, workers are monitored all the time” (35). Indeed, this type of overtly monitored working environment is nothing else that a materialisation of the panopticon. As consumers, we all see what Pasquale means when he writes that “far more [of us] don’t even try to engage, given the demoralizing experience of interacting with cyborgish amalgams of drop- down menus, phone trees, and call center staff”. In fact, this mindless use of automation is only the last version of the way we have been thinking for the last decades, i.e. that progress means rationalisation and de-humanisation across the board. The real culprit is not algorithms themselves, but the careless and automaton-like human implementers and managers who act along a conceptual framework according to which rationalisation and control is all that matters. More than the technologies, it is the belief that management is about control and monitoring that makes these environments properly in-human. So, staying stuck with the rational subject as a proxy for humanness, either ends up in smashing our humanness as workers and consumers and, at best, leads to absurd situations where to be free would mean spending all our time controlling we are not controlled.

    As a result, keeping the rational subject as the central representation of humanness will increasingly be misleading politically speaking. It fails to provide a compass for treating each other fairly and making appropriate decisions and judgments, in order to impacting positively and meaningfully on human lives.

    With her concept of plurality, Arendt offers an alternative to the rational subject for defining humanness: that of the relational self. The relational self, as it emerges from the Arendtian’s concept of plurality[11], is the man, woman or agent self-aware of his, her or its plurality, i.e. the facts that (i) he, she or it is equal to his, her or its fellows; (ii) she, he or it is unique as all other fellows are unique; and (iii) his, her or its identity as a revelatory character requiring to appear among others in order to reveal itself through speech and action. This figure of the relational self accounts for what is essential to protect politically in our humanness in a hyperconnected era, i.e. that we are truly interdependent from the mutual recognition that we grant to each other and that our humanity is precisely grounded in that mutual recognition, much more than in any “objective” difference or criteria that would allow an expert system to sort out human from non-human entities.

    The relational self, as arising from Arendt’s plurality, combines relationality and freedom. It resonates deeply with the vision proposed by Susan H. Williams, i.e. the relational model of truth and the narrative model to autonomy, in order to overcome the shortcomings of the Cartesian and liberal approaches to truth and autonomy without throwing the baby, i.e. the notion of agency and responsibility, out with the bathwater, as the social constructionist and feminist critique of the conceptions of truth and autonomy may be understood of doing.[12]

    Adopting the relational self as the canonical figure of humanness instead of the rational subject‘s one puts under the light the direct relationship between the quality of interactions, on the one hand, and the quality of life, on the other hand. In contradistinction with transparency and control, which are meant to empower non-relational individuals, relational selves are self-aware that they are in need of respect and fair treatment from others, instead. It also makes room for vulnerability, notably the vulnerability of our attentional spheres, and saturation, i.e. the fact that we have a limited attention span, and are far from making a “free choice” when clicking on “I have read and accept the Terms & Conditions”. Instead of transparency and control as policy ends in themselves, the quality of life of relational selves and the robustness of the world they construct together and that lies between them depend critically on being treated fairly and not being fooled.

    It is interesting to note that the word “trust” blooms in policy documents, showing that the consciousness of the fact that we rely from each other is building up. Referring to trust as if it needed to be built is however a signature of the fact that we are in transition from Modernity to hyperconnectivity, and not yet fully arrived. By approaching trust as something that can be materialized we look at it with Modern eyes. As “consent is the universal solvent” (35) of control, transparency-and-control is the universal solvent of trust. Indeed, we know that transparency and control nurture suspicion and distrust. And that is precisely why they have been adopted as Modern regulatory ideals. Arendt writes: “After this deception [that we were fooled by our senses], suspicions began to haunt Modern man from all sides”[13]. So, indeed, Modern conceptual frameworks rely heavily on suspicion, as a sort of transposition in the realm of human affairs of the systematic doubt approach to scientific enquiries. Frank Pasquale quotes moral philosopher Iris Murdoch for having said: “Man is a creature who makes pictures of himself and then comes to resemble the picture” (89). If she is right—and I am afraid she is—it is of utmost importance to shift away from picturing ourselves as rational subjects and embrace instead the figure of relational selves, if only to save the fact that trust can remain a general baseline in human affairs. Indeed, if it came true that trust can only be the outcome of a generalized suspicion, then indeed we would be lost.

    Besides grounding the notion of relational self, the Arendtian concept of plurality allows accounting for interactions among humans and among other plural agents, which are beyond fulfilling their basic needs (necessity) or achieving goals (instrumentality), and leads to the revelation of their identities while giving rise to unpredictable outcomes. As such, plurality enriches the basket of representations for interactions in policy making. It brings, as it were, a post-Modern –or should I dare saying a hyperconnected- view to interactions. The Modern conceptual basket for representations of interactions includes, as its central piece, causality. In Modern terms, the notion of equilibrium is approached through a mutual neutralization of forces, either with the invisible hand metaphor, or with Montesquieu’s division of powers. The Modern approach to interactions is either anchored into the representation of one pole being active or dominating (the subject) and the other pole being inert or dominated (nature, object, servant) or, else, anchored in the notion of conflicting interests or dilemmas. In this framework, the notion of equality is straightjacketed and cannot be embodied. As we have seen, this Modern straitjacket leads to approaching freedom with control and autonomy, constrained by the fact that Man is, unfortunately, not alone. Hence, in the Modern approach to humanness and freedom, plurality is a constraint, not a condition, while for relational selves, freedom is grounded in plurality.

    2) From Watchdogging to Accountability and Intelligibility

    If the quest for transparency and control is as illusory and worthless for relational selves, as it was instrumental for rational subjects, this does not mean that anything goes. Interactions among plural agents can only take place satisfactorily if basic and important conditions are met.  Relational selves are in high need of fairness towards themselves and accountability of others. Deception and humiliation[14] should certainly be avoided as basic conditions enabling decency in the public space.

    Once equipped with this concept of the relational self as the canonical figure of what can account for political agents, be they men, women, corporations and even States. In a hyperconnected era, one can indeed see clearly why the recommendations Pasquale offers in his final two chapters “Watching (and Improving) the Watchers” and “Towards an Intelligible Society,” are so important. Indeed, if watchdogging the watchers has been criticized earlier in this review as an exhausting laboring activity that does not deliver on accountability, improving the watchers goes beyond watchdogging and strives for a greater accountability. With regard to intelligibility, I think that it is indeed much more meaningful and relevant than transparency.

    Pasquale invites us to think carefully about regimes of disclosure, along three dimensions:  depth, scope and timing. He calls for fair data practices that could be enhanced by establishing forms of supervision, of the kind that have been established for checking on research practices involving human subjects. Pasquale suggests that each person is entitled to an explanation of the rationale for the decision concerning them and that they should have the ability to challenge that decision. He recommends immutable audit logs for holding spying activities to account. He calls also for regulatory measures compensating for the market failures arising from the fact that dominant platforms are natural monopolies. Given the importance of reputation and ranking and the dominance of Google, he argues that the First Amendment cannot be mobilized as a wild card absolving internet giants from accountability. He calls for a “CIA for finance” and a “Corporate NSA,” believing governments should devote more effort to chasing wrongdoings from corporate actors. He argues that the approach taken in the area of Health Fraud Enforcement could bear fruit in finance, search and reputation.

    What I appreciate in Pasquale’s call for intelligibility is that it does indeed calibrate the needs of relational selves to interact with each other, to make sound decisions and to orient themselves in the world. Intelligibility is different from omniscience-omnipotence. It is about making sense of the world, while keeping in mind that there are different ways to do so. Intelligibility connects relational selves to the world surrounding them and allows them to act with other and move around. In the last chapter, Pasquale mentions the importance of restoring trust and the need to nurture a public space in the hyperconnected era. He calls for an end game to the Black Box. I agree with him that conscious deception inherently dissolves plurality and the common world, and needs to be strongly combatted, but I think that a lot of what takes place today goes beyond that and is really new and unchartered territories and horizons for humankind. With plurality, we can also embrace contingency in a less dramatic way that we used to in the Modern era. Contingency is a positive approach to un-certainty. It accounts for the openness of the future. The very word un-certainty is built in such a manner that certainty is considered the ideal outcome.

    4. WWW, or Welcome to the World of Women or a World Welcoming Women[15]

    To some extent, the fears of men in a hyperconnected era reflect all-too-familiar experiences of women. Being objects of surveillance and control, exhausting laboring without rewards and being lost through the holes of the meritocracy net, being constrained in a specular posture of other’s deeds: all these stances have been the fate of women’s lives for centuries, if not millennia. What men fear from the State or from “Big (br)Other”, they have experienced with men. So, welcome to world of women….

    But this situation may be looked at more optimistically as an opportunity for women’s voices and thoughts to go mainstream and be listened to. Now that equality between women and men is enshrined in the political and legal systems of the EU and the US, concretely, women have been admitted to the status of “rational subject”, but that does not dissolve its masculine origin, and the oddness or uneasiness for women to embrace this figure. Indeed, it was forged by men with men in mind, women, for those men, being indexed on nature. Mainstreaming the figure of the relational self, born in the mind of Arendt, will be much more inspiring and empowering for women, than was the rational subject. In fact, this enhances their agency and the performativity of their thoughts and theories. So, are we heading towards a world welcoming women?

    In conclusion, the advent of Big Data can be looked at in two ways. The first one is to look at it as the endpoint of the materialisation of all the promises and fears of Modern times. The second one is to look at it as a wake-up call for a new beginning; indeed, by making obvious the absurdity or the price of going all the way down to the consequences of the Modern conceptual frameworks, it calls on thinking on new grounds about how to make sense of the human condition and make it thrive. The former makes humans redundant, is self-fulfilling and does not deserve human attention and energy. Without any hesitation, I opt for the latter, i.e. the wake-up call and the new beginning.

    Let’s engage in this hyperconnected era bearing in mind Virginia Woolf’s “Think we must”[16] and, thereby, shape and honour the human condition in the 21st century.
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    Nicole Dewandre has academic degrees in engineering, economics and philosophy. She is a civil servant in the European Commission, since 1983. She was advisor to the President of the Commission, Jacques Delors, between 1986 and 1993. She then worked in the EU research policy, promoting gender equality, partnership with civil society and sustainability issues. Since 2011, she has worked on the societal issues related to the deployment of ICT technologies. She has published widely on organizational and political issues relating to ICTs.

    The views expressed in this article are the sole responsibility of the author and in no way represent the view of the European Commission and its services.

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    Acknowledgments: This review has been made possible by the Faculty of Law of the University of Maryland in Baltimore, who hosted me as a visiting fellow for the month of September 2015. I am most grateful to Frank Pasquale, first for having written this book, but also for engaging with me so patiently over the month of September and paying so much attention to my arguments, even suggesting in some instances the best way for making my points, when I was diverging from his views. I would also like to thank Jérôme Kohn, director of the Hannah Arendt Center at the New School for Social Research, for his encouragements in pursuing the mobilisation of Hannah Arendt’s legacy in my professional environment. I am also indebted, and notably for the conclusion, to the inspiring conversations I have had with Shauna Dillavou, excecutive director of CommunityRED, and Soraya Chemaly, Washington-based feminist writer, critic and activist. Last, and surely not least, I would like to thank David Golumbia for welcoming this piece in his journal and for the care he has put in editing this text written by a non-English native speaker.

    [1] This change of perspective, in itself, has the interesting side effect to take the carpet under the feet of those “addicted to speed”, as Pasquale is right when he points to this addiction (195) as being one of the reasons “why so little is being done” to address the challenges arising from the hyperconnected era.

    [2] Williams, Truth, Autonomy, and Speech, New York: New York University Press, 2004 (35).

    [3] See, e.g., Nicole Dewandre, ‘Rethinking the Human Condition in a Hyperconnected Era: Why Freedom Is Not About Sovereignty But About Beginnings’, in The Onlife Manifesto, ed. Luciano Floridi, Springer International Publishing, 2015 (195–215).

    [4]Williams, Truth, Autonomy, and Speech (32).

    [5] Literally: “spoken words fly; written ones remain”

    [6] Apart from action, Arendt distinguishes two other fundamental human activities that together with action account for the vita activa. These two other activities are labour and work. Labour is the activity that men and women engage in to stay alive, as organic beings: “the human condition of labour is life itself”. Labour is totally pervaded by necessity and processes. Work is the type of activity men and women engage with to produce objects and inhabit the world: “the human condition of work is worldliness”. Work is pervaded by a means-to-end logic or an instrumental rationale.

    [7] Arendt, The Human Condition, 1958; reissued, University of Chicago Press, 1998 (159).

    [8] Arendt, The Human Condition (160).

    [9] Seyla Benhabib, The Reluctant Modernism of Hannah Arendt, Revised edition, Lanham, MD: Rowman & Littlefield Publishers, 2003, (211).

    [10] See notably the work of Lynn Stout and the Frank Bold Foundation’s project on the purpose of corporations.

    [11] This expression has been introduced in the Onlife Initiative by Charles Ess, but in a different perspective. The Ess’ relational self is grounded in pre-Modern and Eastern/oriental societies. He writes: “In “Western” societies, the affordances of what McLuhan and others call “electric media,” including contemporary ICTs, appear to foster a shift from the Modern Western emphases on the self as primarily rational, individual, and thereby an ethically autonomous moral agent towards greater (and classically “Eastern” and pre-Modern) emphases on the self as primarily emotive, and relational—i.e., as constituted exclusively in terms of one’s multiple relationships, beginning with the family and extending through the larger society and (super)natural orders”. Ess, in Floridi, ed.,  The Onlife Manifesto (98).

    [12] Williams, Truth, Autonomy, and Speech.

    [13] Hannah Arendt and Jerome Kohn, Between Past and Future, Revised edition, New York: Penguin Classics, 2006 (55).

    [14] See Richard Rorty, Contingency, Irony, and Solidarity, New York: Cambridge University Press, 1989.

    [15] I thank Shauna Dillavou for suggesting these alternate meanings for “WWW.”

    [16] Virginia Woolf, Three Guineas, New York: Harvest, 1966.

  • Dissecting the “Internet Freedom” Agenda

    Dissecting the “Internet Freedom” Agenda

    Shawn M. Powers and Michael Jablonski, The Real Cyber War: The Political Economy of Internet Freedoma review of Shawn M. Powers and Michael Jablonski, The Real Cyber War: The Political Economy of Internet Freedom  (University of Illinois Press, 2015)
    by Richard Hill
    ~
    Disclosure: the author of this review is thanked in the Preface of the book under review.

    Both radical civil society organizations and mainstream defenders of the status quo agree that the free and open Internet is threatened: see for example the Delhi Declaration, Bob Hinden’s 2014 Year End Thoughts, and Kathy Brown’s March 2015 statement at a UNESCO conference. The threats include government censorship and mass surveillance, but also the failure of governments to control rampant industry concentration and commercial exploitation of personal data, which increasingly takes the form of providing “free” services in exchange for personal information that is resold at a profit, or used to provide targeted advertising, also at a profit.

    In Digital Disconnect, Robert McChesney has explained how the Internet, which was supposed to be a force for the improvement of human rights and living conditions, has been used to erode privacy and to increase the concentration of economic power, to the point where it is becoming a threat to democracy. In Digital Depression, Dan Schiller has documented how US policies regarding the Internet have favored its geo-economic and geo-political goals, in particular the interests of its large private companies that dominate the information and communications technology (ICT) sector worldwide.

    Shawn M. Powers and Michael Jablonski’s seminal new book The Real Cyber War takes us further down the road of understanding what went wrong, and what might be done to correct the situation. Powers, an assistant professor at Georgia State University, specializes in international political communication, with particular attention to the geopolitics of information and information technologies. Jablonski is an attorney and presidential fellow, also at Georgia State.

    There is a vast literature on internet governance (see for example the bibliography in Radu, Chenou, and Weber, eds., The Evolution of Global Internet Governance), but much of it is ideological and normative: the author espouses a certain point of view, explains why that point of view is good, and proposes actions that would lead to the author’s desired outcome (a good example is Milton Mueller’s well researched but utopian Networks and States). There is nothing wrong with that approach: on the contrary, such advocacy is necessary and welcome.

    But a more detached analytical approach is also needed, and Powers and Jablonski provide exactly that. Their objective is to help us understand (citing from p. 19 of the paperback edition) “why states pursue the policies they do”. The book “focuses centrally on understanding the numerous ways in which power and control are exerted in cyberspace” (p. 19).

    Starting from the rather obvious premise that states compete to shape international policies that favor their interests, and using the framework of political economy, the authors outline the geopolitical stakes and show how questions of power, and not human rights, are the real drivers of much of the debate about Internet governance. They show how the United States has deliberately used a human rights discourse to promote policies that further its geo-economic and geo-political interests. And how it has used subsidies and government contracts to help its private companies to acquire or maintain dominant positions in much of the ICT sector.

    Jacob Silverman has decried the “the misguided belief that once power is arrogated away from doddering governmental institutions, it will somehow find itself in the hands of ordinary people”. Powers and Jablonski dissect the mechanisms by which vibrant government institutions deliberately transferred power to US corporations in order to further US geo-economical and geo-political goals.

    In particular, they show how a “freedom to connect” narrative is used by the USA to attempt to transform information and personal data into commercial commodities that should be subject to free trade. Yet all states (including the US) regulate, at least to some extent, the flow of information within and across their borders. If information is the “new oil” of our times, then it is not surprising that states wish to shape the production and flow of information in ways that favor their interests. Thus it is not surprising that states such as China, India, and Russia have started to assert sovereign rights to control some aspect of the production and flow of information within their borders, and that European Union courts have made decisions on the basis of European law that affect global information flows and access.

    As the authors put the matter (p. 6): “the [US] doctrine of internet freedom … is the realization of a broader [US] strategy promoting a particular conception of networked communication that depends on American companies …, supports Western norms …, and promotes Western products.” (I would personally say that it actually supports US norms and US products and services.) As the authors point out, one can ask (p. 11): “If states have a right to control the types of people allowed into their territory (immigration), and how its money is exchanged with foreign banks, then why don’t they have a right to control information flows from foreign actors?”

    To be sure, any such controls would have to comply with international human rights law. But the current US policies go much further, implying that those human rights laws must be implemented in accordance with the US interpretation, meaning few restrictions on freedom of speech, weak protection of privacy, and ever stricter protection for intellectual property. As Powers and Jablonski point out (p. 31), the US does not hesitate to promote restrictions on information flows when that promotes its goals.

    Again, the authors do not make value judgments: they explain in Chapter 1 how the US deliberately attempts to shape (to a large extent successfully) international policies, so that both actions and inactions serve its interests and those of the large corporations that increasingly influence US policies.

    The authors then explain how the US military-industrial complex has morphed into an information-industrial complex, with deleterious consequences for both industry and government, consequences such as “weakened oversight, accountability, and industry vitality and competitiveness”(p. 23) that create risks for society and democracy. As the authors say, the shift “from adversarial to cooperative and laissez-faire rule making is a keystone moment in the rise of the information-industrial complex” (p. 61).

    As a specific example, they focus on Google, showing how it (largely successfully) aims to control and dominate all aspects of the data market, from production, through extraction, refinement, infrastructure and demand. A chapter is devoted to the economics of internet connectivity, showing how US internet policy is basically about getting the largest number of people online, so that US companies can extract ever greater profits from the resulting data flows. They show how the network effects, economies of scale, and externalities that are fundamental features of the internet favor first-movers, which are mostly US companies.

    The remedy to such situations is well known: government intervention: widely accepted regarding air transport, road transport, pharmaceuticals, etc., and yet unthinkable for many regarding the internet. But why? As the authors put the matter (p. 24): “While heavy-handed government controls over the internet should be resisted, so should a system whereby internet connectivity requires the systematic transfer of wealth from the developing world to the developed.” But freedom of information is put forward to justify specific economic practices which would not be easy to justify otherwise, for example “no government taxes companies for data extraction or for data imports/exports, both of which are heavily regulated aspects of markets exchanging other valuable commodities”(p. 97).

    The authors show in detail how the so-called internet multi-stakeholder model of governance is dominated by insiders and used “under the veil of consensus’” (p. 136) to further US policies and corporations. A chapter is devoted to explaining how all states control, at least to some extent, information flows within their territories, and presents detailed studies of how four states (China, Egypt, Iran and the USA) have addressed the challenges of maintaining political control while respecting (or not) freedom of speech. The authors then turn to the very current topic of mass surveillance, and its relation to anonymity, showing how, when the US presents the internet and “freedom to connect” as analogous to public speech and town halls, it is deliberately arguing against anonymity and against privacy – and this of course in order to avoid restrictions on its mass surveillance activities.

    Thus the authors posit that there are tensions between the US call for “internet freedom” and other states’ calls for “information sovereignty”, and analyze the 2012 World Conference on International Telecommunications from that point of view.

    Not surprisingly, the authors conclude that international cooperation, recognizing the legitimate aspirations of all the world’s peoples, is the only proper way forward. As the authors put the matter (p. 206): “Activists and defenders of the original vision of the Web as a ‘fair and humane’ cyber-civilization need to avoid lofty ‘internet freedom’ declarations and instead champion specific reforms required to protect the values and practices they hold dear.” And it is with that in mind, as a counterweight to US and US-based corporate power, that a group of civil society organizations have launched the Internet Social Forum.

    Anybody who is seriously interested in the evolution of internet governance and its impact on society and democracy will enjoy reading this well researched book and its clear exposition of key facts. One can only hope that the Council of Europe will heed Powers and Jablonski’s advice and avoid adopting more resolutions such as the recent recommendation to member states by the EU Committee of Ministers, which merely pander to the US discourse and US power that Powers and Jablonski describe so aptly. And one can fondly hope that this book will help to inspire a change in course that will restore the internet to what it might become (and what many thought it was supposed to be): an engine for democracy and social and economic progress, justice, and equity.
    _____

    Richard Hill is President of the Association for Proper internet Governance, and was formerly a senior official at the International Telecommunication Union (ITU). He has been involved in internet governance issues since the inception of the internet and is now an activist in that area, speaking, publishing, and contributing to discussions in various forums. Among other works he is the author of The New International Telecommunication Regulations and the Internet: A Commentary and Legislative History (Springer, 2014). He writes frequently about internet governance issues for The b2 Review Digital Studies magazine.

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  • The Internet vs. Democracy

    The Internet vs. Democracy

    Robert W. McChesney, Digital Disconnect: How Capitalism Is Turning the Internet Against Democracya review of Robert W. McChesney, Digital Disconnect: How Capitalism Is Turning the Internet Against Democracy  (The New Press, 2014)
    by Richard Hill
    ~
    Many of us have noticed that much of the news we read is the same, no matter which newspaper or web site we consult: they all seem to be recycling the same agency feeds. To understand why this is happening, there are few better analyses than the one developed by media scholar Robert McChesney in his most recent book, Digital Disconnect. McChesney is a Professor in the Department of Communication at the University of Illinois at Urbana-Champaign, specializing in the history and political economy of communications. He is the author or co-author of more than 20 books, among the best-known of which are The Endless Crisis: How Monopoly-Finance Capital Produces Stagnation and Upheaval from the USA to China (with John Bellamy Foster, 2012), The Political Economy of Media: Enduring Issues, Emerging Dilemmas (2008), Communication Revolution: Critical Junctures and the Future of Media (2007), and Rich Media, Poor Democracy: Communication Politics in Dubious Times (1999), and is co-founder of Free Press.

    Many see the internet as a powerful force for improvement of human rights, living conditions, the economy, rights of minorities, etc. And indeed, like many communications technologies, the internet has the potential to facilitate social improvements. But in reality the internet has recently been used to erode privacy and to increase the concentration of economic power, leading to increasing income inequalities.

    One might have expected that democracies would have harnessed the internet to serve the interests of their citizens, as they largely did with other technologies such as roads, telegraphy, telephony, air transport, pharmaceuticals (even if they used these to serve only the interests of their own citizens and not the general interests of mankind).

    But this does not appear to be the case with respect to the internet: it is used largely to serve the interests of a few very wealthy individuals, or certain geo-economic and geo-political interests. As McChesney puts the matter: “It is supremely ironic that the internet, the much-ballyhooed champion of increased consumer power and cutthroat competition, has become one of the greatest generators of monopoly in economic history” (131 in the print edition). This trend to use technology to favor special interests, not the general interest, is not unique to the internet. As Josep Ramoneda puts the matter: “We expected that governments would submit markets to democracy and it turns out that what they do is adapt democracy to markets, that is, empty it little by little.”

    McChesney’s book explains why this is the case: despite its great promise and potential to increase democracy, various factors have turned the internet into a force that is actually destructive to democracy, and that favors special interests.

    McChesney reminds us what democracy is, citing Aristotle (53): “Democracy [is] when the indigent, and not the men of property are the rulers. If liberty and equality … are chiefly to be found in democracy, they will be best attained when all persons alike share in the government to the utmost.”

    He also cites US President Lincoln’s 1861 warning against despotism (55): “the effort to place capital on an equal footing with, if not above, labor in the structure of government.” According to McChesney, it was imperative for Lincoln that the wealthy not be permitted to have undue influence over the government.

    Yet what we see today in the internet is concentrated wealth in the form of large private companies that exert increasing influence over public policy matters, going to so far as to call openly for governance systems in which they have equal decision-making rights with the elected representatives of the people. Current internet governance mechanisms are celebrated as paragons of success, whereas in fact they have not been successful in achieving the social promise of the internet. And it has even been said that such systems need not be democratic.

    What sense does it make for the technology that was supposed to facilitate democracy to be governed in ways that are not democratic? It makes business sense, of course, in the sense of maximizing profits for shareholders.

    McChesney explains how profit-maximization in the excessively laissez-faire regime that is commonly called neoliberalism has resulted in increasing concentration of power and wealth, social inequality and, worse, erosion of the press, leading to erosion of democracy. Nowhere is this more clearly seen than in the US, which is the focus of McChesney’s book. Not only has the internet eroded democracy in the US, it is used by the US to further its geo-political goals; and, adding insult to injury, it is promoted as a means of furthering democracy. Of course it could and should do so, but unfortunately it does not, as McChesney explains.

    The book starts by noting the importance of the digital revolution and by summarizing the views of those who see it as an engine of good (the celebrants) versus those who point out its limitations and some of its negative effects (the skeptics). McChesney correctly notes that a proper analysis of the digital revolution must be grounded in political economy. Since the digital revolution is occurring in a capitalist system, it is necessarily conditioned by that system, and it necessarily influences that system.

    A chapter is devoted to explaining how and why capitalism does not equal democracy: on the contrary, capitalism can well erode democracy, the contemporary United States being a good example. To dig deeper into the issues, McChesney approaches the internet from the perspective of the political economy of communication. He shows how the internet has profoundly disrupted traditional media, and how, contrary to the rhetoric, it has reduced competition and choice – because the economies of scale and network effects of the new technologies inevitably favor concentration, to the point of creating natural monopolies (who is number two after Facebook? Or Twitter?).

    The book then documents how the initially non-commercial, publicly-subsidized internet was transformed into an eminently commercial, privately-owned capitalist institution, in the worst sense of “capitalist”: domination by large corporations, monopolistic markets, endless advertising, intense lobbying, and cronyism bordering on corruption.

    Having explained what happened in general, McChesney focuses on what happened to journalism and the media in particular. As we all know, it has been a disaster: nobody has yet found a viable business model for respectable online journalism. As McChesney correctly notes, vibrant journalism is a pre-condition for democracy: how can people make informed choices if they do not have access to valid information? The internet was supposed to broaden our sources of information. Sadly, it has not, for the reasons explained in detail in the book. Yet there is hope: McChesney provides concrete suggestions for how to deal with the issue, drawing on actual experiences in well functioning democracies in Europe.

    The book goes on to call for specific actions that would create a revolution in the digital revolution, bringing it back to its origins: by the people, for the people. McChesney’s proposed actions are consistent with those of certain civil society organizations, and will no doubt be taken up in the forthcoming Internet Social Forum, an initiative whose intent is precisely to revolutionize the digital revolution along the lines outlined by McChesney.

    Anybody who is aware of the many issues threatening the free and open internet, and democracy itself, will find much to reflect upon in Digital Disconnect, not just because of its well-researched and incisive analysis, but also because it provides concrete suggestions for how to address the issues.

    _____

    Richard Hill, an independent consultant based in Geneva, Switzerland, was formerly a senior official at the International Telecommunication Union (ITU). He has been involved in internet governance issues since the inception of the internet and is now an activist in that area, speaking, publishing, and contributing to discussions in various forums. Among other works he is the author of The New International Telecommunication Regulations and the Internet: A Commentary and Legislative History (Springer, 2014). He frequently writes about internet governance issues for The b2 Review Digital Studies magazine.

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  • "Internet Freedom": Digital Empire?

    "Internet Freedom": Digital Empire?

    Dan Schiller, Digital Depression: Information Technology and Economic Crisisa review of Dan Schiller, Digital Depression: Information Technology and Economic Crisis  (University of Illinois Press, 2014)
    by Richard Hill
    ~
    Disclosure: the author of this review is mentioned in the Acknowledgements section of the reviewed book.

     

     

     

     

     

    Computers and telecommunications have revolutionized and disrupted all aspects of human activity, and even behavior. The impacts are broad and profound, with important consequences for governments, businesses, non-profit activities, and individuals. Networks of interconnected computer systems are driving many disruptive changes in business practices, information flows, and financial flows. Foremost amongst those networks is the Internet, much of which is global, or at least trans-national.

    According to some, the current governance arrangement for the Internet is nearly ideal. In particular, its global multi-stakeholder model of governance has resulted in a free and open Internet, which has enabled innovation and driven economic growth and well-being around the world. Others are of the view that things have not worked out that well. In particular, the Internet has resulted in mass surveillance by governments and by private companies, in monopolization, commodification and monetization of information and knowledge, in inequitable flows of finances between poor and rich countries, and in erosion of cultural diversity; further, those with central positions of influence have used it to consolidate power and to establish a new global regime of control and exploitation, under the guise of favoring liberalization, while in reality reinforcing the dominance and profitability of major corporations at the expense of the public interest, and the overarching position of certain national interests at the expense of global interests and well being.  [1]

    Dan Schiller’s book helps us to understand how rational and well-informed people can hold such diametrically opposing views. Schiller dissects the history of the growth of recent telecommunications networks and shows how they have significantly (indeed, dramatically) affected economic and political power relations around the world. And how, at the same time, US policies have consistently favored capital over labor, and have resulted in transfers of vast sums from developing countries to developed countries (in particular through interest on loans).

    2013 Berlin PRISM Demonstrations
    Participants wearing Edward Snowden and Chelsea Manning masks at 2013 Berlin protests against NSA PRISM program (image source: Wikipedia)

    Schiller documents in some detail how US policies that ostensibly promote the free flow of information around the world, the right of all people to connect to the Internet, and free speech, are in reality policies that have, by design, furthered the geo-economic and geo-political goals of the US, including its military goals, its imperialist tendencies, and the interests of large private companies based (if not always headquartered, at least for tax purposes) in the US. For example, strict copyright protection is held to be consistent with the free flow of information, as is mass surveillance. Cookies and exploitation of users’ personal data by Internet companies are held to be consistent with privacy rights (indeed, as Schiller shows, the US essentially denies the existence of the right to personal privacy for anything related to the Internet). There should be no requirements that data be stored locally, lest it escape the jurisdiction of the US surveillance apparatus. And very high profits and dominant positions in key Internet markets do not spark anti-trust or competition law investigations, as they might in any other industry.

    As Schiller notes, great powers have historically used communication systems to further their economic and strategic interests, so why should the US not so use the Internet? Thus stated, the matter seems obvious. But the matter is rarely thus stated. On the contrary, the Internet is often touted as a generous gift to the world’s people, able to lift them out of poverty and oppression, and to bring them the benefits of democracy and (or) free markets. Schiller’s carefully researched analysis is thus an important contribution.

    Schiller provides context by tracing the origins of the current financial and economic crises, pointing out that it is paradoxical that growing investments in Information and Communication Technologies (ICTs), and the supposed resultant productivity gains, did not prevent a major global economic crisis. Schiller explains how transnational corporations demanded liberalization of the terms on which they could use their private networks, and received then, resulting in profound changes in commodity chains, that is, the flow of production of goods and services. In particular, there has been an increase in transnational production, and this has reinforced the importance of transnational corporations. Further, ICTs have changed the nature of labor’s contribution to production, enabling many tasks to be shifted to unskilled workers (or even to consumers themselves: automatic teller machines (ATMs), for example, turn each of us into a bank clerk). However, the growth of the Internet did not transcend the regular economy: on the contrary, it was wrapped into the economy’s crisis tendencies and even exacerbated them.

    Schiller gives detailed accounts of these transformations in the automotive and financial industries, and in the military. The study of the effect of ICTs on the military is of particular interest considering that the Internet was originally developed as a military project, and that it is currently used by US intelligence agencies as a prime medium for the collection of information.

    Schiller then turns to telecommunications, explaining the very significant changes that took place in the USA starting in the late 1970s. Those changes resulted in a major restructuring of the dominant telecommunications playing field in the US and ultimately led to the growth of the Internet, a development which had world-wide effects. Schiller carefully describes the various US government actions that initiated and nurtured those changes, and that were instrumental in exporting similar changes to the rest of the world.

    Next, he analyzes how those changes affected and enabled the production of the networks themselves, the hardware used to build the networks and to use them (e.g. smartphones), and the software and applications that we all use today.

    Moving further up the value chain, Schiller explains how data-mining, coupled with advertising, fuels the growth of the dominant Internet companies, and how this data-mining is made possible only by denying data privacy, and how states use the very same techniques to implement mass surveillance.

    Having described the situation, Schiller proceeds to analyze it from economic and political perspectives. Given that the US was an early adopter of the Internet, it is not surprising that, because of economies of scale and network effects, US companies dominate the field (except in China, as Schiller explains in detail). Schiller describes how, given the influence of US companies on US politics, US policies, both domestic and foreign, are geared to allowing, or in fact favoring, ever-increasing concentration in key Internet markets, which is to the advantage of the US and its private companies–and despite the easy cant about decentralization and democratization.

    The book describes how the US views the Internet as an extraterritorial domain, subject to no authority except that of the US government and that of the dominant US companies. Each dictates its own law in specific spheres (for example, the US government has supervised, up to now, the management of Internet domain names and addresses; while US companies dictate unilateral terms and conditions to their users, terms and conditions that imply that users give up essentially all rights to their private data).

    Schiller describes how this state of affairs has become a foreign policy objective, with the US being willing to incur significant criticism and to pay a significant political price in order to maintain the status quo. That status quo is referred to as “the multi-stakeholder model”, in which private companies are essentially given veto power over government decisions (or at least over the decisions of any government other than the US government), a system that can be referred to as “corporatism”. Not only does the US staunchly defend that model for the Internet, it even tries to export it to other fields of human activity. And this despite, or perhaps because, that system allows companies to make profits when possible (in particular by exploiting state-built infrastructure or guarantees), and to transfer losses to states when necessary (as for example happened with the banking crisis).

    Schiller carefully documents how code words such as “freedom of access” and “freedom of speech” are used to justify and promote policies that in fact merely serve the interests of major US companies and, at the same time, the interests of the US surveillance apparatus, which morphed from a cottage industry into a major component of the military-industrial complex thanks to the Internet. He shows how the supposed open participation in key bodies (such as the Internet Engineering Task Force) is actually a screen to mask the fact that decisions are heavily influenced by insiders affiliated with US companies and/or the US government, and by agencies bound to the US as a state.

    As Schiller explains, this increasing dominance of US business and US political imperialism have not gone unchallenged, even if the challenges to date have mostly been rhetorical (again, except for China). Conflicts over Internet governance are related to rivalries between competing geo-political and geo-economic blocks, rivalries which will likely increase if economic growth continues to be weak. The rivalries are both between nations and within nations, and some are only emerging right now (for example, how to tax the digital economy, or the apparent emerging divergence of views between key US companies and the US government regarding mass surveillance).

    Indeed, the book explains how the challenges to US dominance have become more serious in the wake of the Snowden revelations, which have resulted in a significant loss of market share for some of the key US players, in particular with respect to cloud computing services. Those losses may have begun to drive the tip of a wedge between the so-far congruent goals of US companies and the US government

    In a nutshell, one can sum up what Schiller describes by paraphrasing Marx: “Capitalists of the world, unite! You have nothing to lose but the chains of government regulation.” But, as Schiller hints in his closing chapter, the story is still unfolding, and just as things did not work out as Marx thought they would, so things may not work out as the forces that currently dominate the Internet wish they will. So the slogan for the future might well be “Internet users of the world, unite! You have nothing to lose but the chains of exploitation of your personal data.”

    This book, and its extensive references, will be a valuable reference work for all future research in this area. And surely there will be much future research, and many more historical analyses of what may well be some of the key turning points in the history of mankind: the transition from the industrial era to the information era and the disruptions induced by that transition.

    _____

    Richard Hill, an independent consultant based in Geneva, Switzerland, was formerly a senior official at the International Telecommunication Union (ITU). He has been involved in internet governance issues since the inception of the internet and is now an activist in that area, speaking, publishing, and contributing to discussions in various forums. Among other works he is the author of The New International Telecommunication Regulations and the Internet: A Commentary and Legislative History (Springer, 2014). An earlier version of this review first appeared on Newsclick.

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    1. From item 11 of document WSIS+10/4/6 of the preparatory process for the WSIS+10 High Level Event, which provided “a special platform for high-ranking officials of WSIS (World Summit on the Information Society) stakeholders, government, private sector, civil society and international organizations to express their views on the achievements, challenges and recommendations on the implementation” of various earlier internet governance initiatives backed by the International Telecommunications Union (ITU), the United Nations specialized agency for information and communications technologies, and other participants in the global internet governance sphere.

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