Government by algorithm: Difference between revisions

Revision as of 01:43, 13 May 2025

Revision as of 18:07, 22 May 2025

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Since the 2000s, algorithms have been designed and used to [[Closed-circuit television#Computer-controlled analytics and identification|automatically analyze surveillance videos]].<ref>{{cite journal |last1=Sodemann |first1=Angela A. |last2=Ross |first2=Matthew P. |last3=Borghetti |first3=Brett J. |title=A Review of Anomaly Detection in Automated Surveillance |journal=IEEE Transactions on Systems, Man, and Cybernetics - Part C: Applications and Reviews|date=November 2012 |volume=42 |issue=6 |pages=1257–1272 |doi=10.1109/TSMCC.2012.2215319|s2cid=15466712}}</ref>

In his 2006 book ''Virtual Migration'', [[A. Aneesh]] developed the concept of algocracy — information technologies constrain human participation in public decision making.<ref>{{cite journal |last1=Kelty |first1=Christopher |title=Explaining IT |journal=Political and Legal Anthropology Review |date=2009 |volume=32 |issue=1 |pages=156–160 |doi=10.1111/j.1555-2934.2009.01035.x |jstor=24497537 |url=https://www.jstor.org/stable/24497537 |access-date=26 January 2022 |issn=1081-6976|url-access=subscription }}</ref><ref>{{cite journal |last1=Danaher |first1=John |title=The Threat of Algocracy: Reality, Resistance and Accommodation |journal=Philosophy & Technology |date=September 2016 |volume=29 |issue=3 |pages=245–268 |doi=10.1007/s13347-015-0211-1 |s2cid=146674621 |url=https://philarchive.org/rec/DANTTO-13 }}</ref> Aneesh differentiated algocratic systems from bureaucratic systems (legal-rational regulation) as well as market-based systems (price-based regulation).<ref>{{cite book |last1=Aneesh |first1=A. |title=Virtual Migration: the Programming of Globalization. |date=2006 |publisher=Duke University Press |isbn=978-0-8223-3669-3 |url=https://www.dukeupress.edu/Virtual-Migration/}}</ref>

In 2013, algorithmic regulation was coined by [[Tim O'Reilly]], founder and CEO of O'Reilly Media Inc.:

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[[File:Architecture-of-the-IoT-for-home-care-systems.jpg|thumb|Architecture of the [[IoT]] for home care systems]]

A [[smart city]] is an urban area where collected surveillance data is used to improve various operations. Increase in computational power allows more automated decision making and replacement of public agencies by algorithmic governance.<ref>{{cite journal |last1=Brauneis |first1=Robert |last2=Goodman |first2=Ellen P. |title=Algorithmic Transparency for the Smart City |journal=Yale Journal of Law & Technology |date=1 January 2018 |volume=20 |issue=1 |pages=103 |url=https://www.questia.com/library/journal/1G1-544510684/algorithmic-transparency-for-the-smart-city |access-date=20 September 2020 |archive-date=15 August 2022 |archive-url=https://web.archive.org/web/20220815021439/https://www.gale.com/databases/questia |url-status=dead }}</ref> In particular, the combined use of artificial intelligence and blockchains for [[Internet of things|IoT]] may lead to the creation of [[sustainable]] smart city ecosystems.<ref>{{cite journal |last1=Singh |first1=Saurabh |last2=Sharma |first2=Pradip Kumar |last3=Yoon |first3=Byungun |last4=Shojafar |first4=Mohammad |last5=Cho |first5=Gi Hwan |last6=Ra |first6=In-Ho |title=Convergence of blockchain and artificial intelligence in IoT network for the sustainable smart city |journal=Sustainable Cities and Society |date=1 December 2020 |volume=63 |pages=102364 |doi=10.1016/j.scs.2020.102364 |bibcode=2020SusCS..6302364S |s2cid=225022879 |url=https://www.sciencedirect.com/science/article/abs/pii/S2210670720305850 |access-date=24 March 2021 |issn=2210-6707|url-access=subscription }}</ref> [[Intelligent street lighting]] in [[Glasgow]] is an example of successful government application of AI algorithms.<ref>{{cite news |last1=Gardner |first1=Allison |title=Don't write off government algorithms – responsible AI can produce real benefits |work=The Conversation |url=https://theconversation.com/dont-write-off-government-algorithms-responsible-ai-can-produce-real-benefits-145895 |access-date=1 April 2021}}</ref> A study of smart city initiatives in the US shows that it requires public sector as a main organizer and coordinator, the private sector as a technology and infrastructure provider, and universities as expertise contributors.<ref>{{cite book |last1=Morrow |first1=Garrett |title=The Robot in City Hall: The Limitations, Structure, and Governance of Smart City Technology Regimes|date=2022 |url=https://www.proquest.com/openview/6785af5e14f63d5e91d47b76337e4aec/1.pdf |via=ProQuest |language=en}}</ref>

The [[cryptocurrency]] millionaire Jeffrey Berns proposed the operation of [[local governments]] in [[Nevada]] by tech firms in 2021.<ref name=nevada>{{cite news |title=Nevada smart city: A millionaire's plan to create a local government |url=https://www.bbc.com/news/world-us-canada-56409924 |access-date=24 March 2021 |work=BBC News |date=18 March 2021}}</ref> Berns bought 67,000 acres (271&nbsp;km²) in Nevada's rural [[Storey County]] (population 4,104) for $170,000,000 (£121,000,000) in 2018 in order to develop a smart city with more than 36,000 residents that could generate an annual output of $4,600,000,000.<ref name=nevada/> Cryptocurrency would be allowed for payments.<ref name=nevada/> Blockchains, Inc. "Innovation Zone" was canceled in September 2021 after it failed to secure enough water<ref>{{Cite web |last=Independent |first=Daniel Rothberg {{!}} The Nevada |title=Blockchains, Inc. withdraws 'Innovation Zone' plan for Storey County |url=http://www.nnbw.com/news/2021/oct/12/blockchains-inc-withdraws-innovation-zone-plan-sto/ |access-date=2022-11-07 |website=www.nnbw.com}}</ref> for the planned 36,000 residents, through water imports from a site located 100 miles away in the neighboring [[Washoe County, Nevada|Washoe County]].<ref name="thenevadaindependent.com">{{Cite web |title=Months before a company lobbied the Legislature to create its own county, it purchased faraway water rights that could fuel future growth |url=https://thenevadaindependent.com/article/months-before-a-company-lobbied-the-legislature-to-create-its-own-county-it-purchased-faraway-water-rights-that-could-fuel-future-growth |access-date=2022-11-07 |website=The Nevada Independent |date=12 February 2021 |language=en}}</ref> A similar water pipeline proposed in 2007 was estimated to cost $100 million and would have taken about 10 years to develop.<ref name="thenevadaindependent.com"/> With additional water rights purchased from Tahoe Reno Industrial General Improvement District, "Innovation Zone" would have acquired enough water for about 15,400 homes - meaning that it would have barely covered its planned 15,000 dwelling units, leaving nothing for the rest of the projected city and its 22 million square-feet of industrial development.<ref name="thenevadaindependent.com"/>

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===Smart contracts===

[[Smart contract]]s, [[cryptocurrencies]], and [[decentralized autonomous organization]] are mentioned as means to replace traditional ways of governance.<ref name=indiadao>{{cite news |last1=Bindra |first1=Jaspreet |title=Transforming India through blockchain |url=https://www.livemint.com/Technology/UZIex6fPPyAqVuTHqpzZiN/Transforming-India-through-blockchain.html |access-date=31 May 2020 |work=Livemint |date=30 March 2018}}</ref><ref>{{cite news |last1=Finn |first1=Ed |date=10 April 2017 |title=Do digital currencies spell the end of capitalism? |work=The Guardian |url=https://www.theguardian.com/science/political-science/2017/apr/10/do-digital-currencies-spell-the-end-of-capitalism |access-date=31 May 2020}}</ref><ref name=algocracyblockchain/> Cryptocurrencies are currencies which are enabled by algorithms without a governmental [[central bank]].<ref>{{cite web |last1=Reiff |first1=Nathan |title=Blockchain Explained |website=Investopedia |url=https://www.investopedia.com/terms/b/blockchain.asp |access-date=31 May 2020}}</ref> [[Central bank digital currency]] often employs similar technology, but is differentiated from the fact that it does use a central bank. It is soon to be employed by major unions and governments such as the European Union and China. [[Smart contracts]] are self-executable [[contract]]s, whose objectives are the reduction of need in trusted governmental intermediators, arbitrations and enforcement costs.<ref>{{cite journal |last1=Szabo |first1=Nick |author-link1=Nick Szabo |title=View of Formalizing and Securing Relationships on Public Networks |journal=First Monday |date=1997 |doi=10.5210/fm.v2i9.548 |s2cid=33773111 |url=https://firstmonday.org/article/view/548/469 |access-date=2020-05-31 |archive-date=2022-04-10 |archive-url=https://web.archive.org/web/20220410235953/https://firstmonday.org/article/view/548/469 |url-status=dead |doi-access= free|url-access=subscription }}</ref><ref name=conbook>{{cite book |last1=Fries |first1=Martin |last2=P. Paal |first2=Boris |title=Smart Contracts |year=2019 |publisher=Mohr Siebeck |jstor=j.ctvn96h9r |isbn=978-3-16-156911-1 |language=de}}</ref> A decentralized autonomous organization is an [[organization]] represented by smart contracts that is transparent, controlled by shareholders and not influenced by a central government.<ref>{{cite web |title=What is DAO - Decentralized Autonomous Organizations |url=https://blockchainhub.net/dao-decentralized-autonomous-organization/ |website=BlockchainHub |access-date=31 May 2020 |archive-date=24 May 2020 |archive-url=https://web.archive.org/web/20200524103723/https://blockchainhub.net/dao-decentralized-autonomous-organization/ |url-status=dead }}</ref><ref>{{cite book |last=Prusty |first=Narayan |date=27 Apr 2017 |title=Building Blockchain Projects |url=https://books.google.com/books?id=80EwDwAAQBAJ |___location=Birmingham, UK |publisher=Packt |page=9 |isbn=9781787125339}}</ref><ref>{{citation |last1=Chohan |first1=Usman W. |title=The Decentralized Autonomous Organization and Governance Issues |date=4 December 2017 |publisher=Social Science Research Network |ssrn=3082055}}.</ref> Smart contracts have been discussed for use in such applications as use in (temporary) [[employment contract]]s<ref>{{Cite web|url=https://papers.ssrn.com/abstract=3270867|title=The Gig Economy, Smart Contracts, and Disruption of Traditional Work Arrangements|first1=Seth|last1=Oranburg|first2=Liya|last2=Palagashvili|date=October 22, 2018|via=Social Science Research Network|doi=10.2139/ssrn.3270867|ssrn=3270867 }}</ref><ref>{{Cite web|url=https://www.researchgate.net/publication/328657407|title=A Blockchain-Based Decentralized System for Proper Handling of Temporary Employment Contracts}}</ref> and automatic transfership of funds and property (i.e. [[inheritance]], upon registration of a [[death certificate]]).<ref>[https://www.europarl.europa.eu/RegData/etudes/IDAN/2017/581948/EPRS_IDA(2017)581948_EN.pdf How blockchain technology could change our lives]</ref><ref>{{Cite web|url=https://medium.com/@illuminatesofficial/business-inheritance-in-blockchain-b3fab4613c8c|title=Business inheritance in blockchain|first=Illuminates|last=Official|date=September 11, 2019}}</ref><ref>{{Cite web|url=https://www.inc.com/chris-j-snook/4-small-business-verticals-artificial-intelligence-blockchain-will-destroy-in-coming-decade.html|title=Blockchain and AI are coming to kill these 4 business verticals}}</ref><ref>{{Cite web|url=https://silentnotary.com/#project|title=Silent Notary - Blockchain Notary Service 100% events falsification protection|website=silentnotary.com}}</ref> Some countries such as Georgia and Sweden have already launched blockchain programs focusing on property ([[Title search|land titles]] and [[real estate]] ownership)<ref name=ukrainereuteers>{{cite news |last1=Chavez-Dreyfuss |first1=Gertrude |title=Ukraine launches big blockchain deal with tech firm Bitfury |url=https://www.reuters.com/article/us-ukraine-bitfury-blockchain-idUSKBN17F0N2 |access-date=15 August 2021 |work=Reuters |date=17 April 2017}}</ref><ref>{{Cite web|url=https://bitfury.com/content/downloads/the_bitfury_group_republic_of_georgia_expand_blockchain_pilot_2_7_16.pdf|title=The Bitfury Group and Government of Republic of Georgia Expand Blockchain Pilot}}</ref><ref>[https://www.mitpressjournals.org/doi/pdf/10.1162/inov_a_00276 A BLOCKCHAIN - Journals Gateway]</ref><ref>{{Cite web|url=https://www.oecd.org/corruption/integrity-forum/academic-papers/Georg%20Eder-%20Blockchain%20-%20Ghana_verified.pdf|title=Digital Transformation: Blockchain and Land Titles}}</ref> Ukraine is also looking at other areas too such as [[Public records|state registers]].<ref name=ukrainereuteers/>

===Algorithms in government agencies===