Preventing Network Discrimination


In the last decade, and coincident with the advent of broadband Internet technology, Internet regulation has been the subject of intense public debate over network neutrality, a legislative concept designed to provide Internet consumer/producers the right to open and non-discriminatory access to the network.  At the heart of the debate is the determination of whether the Internet constitutes a commons, and if so, whether the commons needs to be regulated to protect equal and anti-discriminatory access in what is now, a largely privatized network.  Of course, the Internet is not the first privatized network that engendered the commons debate.  Arguably, while the Internet is a unique infrastructure in many respects, it also has significant similarities to earlier networks, such as roads, railroads, the telegraph, telephone networks, radio networks, and television networks (Blondheim, 2004).  Indeed, many of these networks created positive network externalities that constituted public goods, and as such were considered commons subjected to common carriage law, a form of regulating the network infrastructure to protect the public good.  Therefore, examining the Internet network neutrality debate through the lens of common carriage, while not new, is useful insofar as it centers the discussion on the firm foundation of historical precedent, and captures the essence of what is at stake.  As such, this paper will cover a brief historical background of common carriage, describe the application of common carriage principles in the early Internet, compare and contrast proposed network neutrality legislation with common carriage principles, and conclude with a considered recommendation advocating for network neutrality legislation.

Common Carriage Background

            Common carriage is a legal principle that intends “to guarantee that no customer seeking service upon reasonable demand, willing and able to pay the established price, however set, would be denied lawful use of the service or would otherwise be discriminated against (Noam, 1994, p. 436).  The origins of common carriage law predate English law and whose precursors “go back to the Roman Empire and the legal obligations of shipowners, innkeepers and stable keepers” (Noam, 1994, p. 437).  English common law supports the notion of common carriage, beginning with the 1701 case, Lane versus Cotton, in which Justice Holt asserted “that one in the public employment can not refuse the duty incumbent upon him and that there would thus be causes of action for a postmaster refusing a letter, inn keeper refusing a guest or blacksmith refusing to shoe a horse” (Moglen, 2009, p. 1).  As such, common carriage’s core principal is that of anti-discrimination.

Common carriage was applied in the United States initially as common law, most notably to regulate the activity of the railroads, in absence of specific congressional legislation governing interstate commerce (“Western Union Telegraph Co. v. Call Pub. Co.,” 1901).  In addition, common carriage was applied to the first U.S. telecommunications infrastructure, the telegraph network, as a result of discriminatory behavior by Western Union (“Western Union Telegraph Co. v. Call Pub. Co.,” 1901).  Western Union’s discriminatory practices extended far beyond choosing winners and losers in the open market; the company went so far as to practice censorship by choosing political sides and only offering the perspectives of candidates whose policies favored Western Union (Rock, 2012; Wu, 2006a).  As a result of this and other corporate abuses of monopoly power over the telecommunications network, common carriage over telecommunications was codified into law with Title II of the 1934 Communications Act (Noam, 1994).  Since then, regulated telephone companies have been generally referred to as ‘common carriers’ and as such, have the obligation to provide non-discriminatory access to telephone service across the nation, and in exchange are not held liable for the content of traffic across the network.

The Internet and Common Carriage

            To say that the Internet was created as a result of the common carriage principle of non-discrimination is not an overstatement.  There was a time, prior to the 1980s, when consumers had to purchase their telephones from a Bell company and were not allowed to attach any other device to their phone line (Wu, 2006b).  However, a series of court decisions, including the Hush-A-Phone and Carterfone decisions, led to the FCC to enact “a strong non-discrimination rule for consumer network equipment, and even blocked the regional Bell operating companies from offering such equipment” (Wu, 2006b, p. 33).  The rule sparked a new wave of commercial innovations that saw the development of fax machines and modems, antecedents of modern networking.

Moreover, principles of non-discrimination were built into the very architecture of the Internet.  According to Lessig and Lemley (2001), the design of both the Internet and it’s predecessor ARPANET were based on the end-to-end design principle which organizes the placement of intelligence at the ends, while making the communications protocols simple. “One consequence of this design is a principle of non-discrimination among applications” (Lessig & Lemley, 2001, p. 927).  In essence, the network is a highly sophisticated set of dumb pipes, in the sense that any network or device can interconnect to the Internet by following the basic communication protocols.  Of course, the last thing that cable and DSL providers want to be are ‘dumb pipes’ and therefore, many use a variety of strategies, including discrimination, to avoid becoming a commodity (Knowledge@Wharton, 2009).  Indeed, there is little to prevent broadband providers from using their monopoly power over the network to introduce discriminatory behaviors that favor their commercial interests.

The Internet and Net Neutrality

            The advent of the Internet has ushered in new era of debate over non-discrimination on the network, partly because with the Telecommunications Act of 1996, the FCC designated cable and DSL as ‘information services’, rather than telecommunications (United States. Congress., 1996), and as such, they are not designated as common carriers.  Moreover, freed from constraint, telecommunications providers have used their network power to discriminate against perceived threats.  For example, Telus Corporation blocked subscriber access to a Union website critical of their labor practices (CBC News, 2005).  In addition, Madison River Communications, a DSL provider, blocked subscriber access to Vonage, a company with voice-over-IP technology that allows subscribers to place calls over the Internet, rather than paying for traditional phone service (Sandvig, 2007).  Finally, Comcast Corporation intentionally blocked subscriber access to Bit Torrent, a popular peer-to-peer file sharing protocol (Weiser, 2009).  Nor is the discrimination likely to end any time soon.

For example, former AT&T Chairman and CEO Whitacre (BusinessWeek, 2005) described the motivation for AT&T to discriminate against Internet upstarts like Google, Vonage, and MSN, noting:

Now what they would like to do is use my pipes free, but I ain’t going to let them do that because we have spent this capital and we have to have a return on it. So there’s going to have to be some mechanism for these people who use these pipes to pay for the portion they’re using. Why should they be allowed to use my pipes? (p. 1)

It is not surprising, that when freed from the constraint of common carrier classification, broadband providers use discriminatory practices to create and sustain competitive advantage; it is in their nature to do so.

However, the Federal Communications Commission (2010) recently passed a set of Open Internet rules to address broadband discriminatory practices.  The Open Internet rules force broadband providers to be transparent about their network management practices, prevent the blocking of legal content, applications, services, or devices, and prevent unreasonable network discrimination (Federal Communications Commission, 2010).  While the rules appear to provide a basis for the FCC to deal with discriminatory practices, there are several problems worth exploring.

First, the FCC treats fixed broadband and wireless broadband differently, providing far more leeway for cellular providers to discriminate, particularly against competing services.  Second, there remains considerable question as to whether the FCC has the legal authority to enforce such rules, particularly given the FCC’s original classification of broadband as an ‘information service’.  In fact, the DC Court of Appeals, ruling on the Comcast and BitTorrent FCC decision, recently “struck down a federal rule that required broadband providers to keep their networks open” (Puzzanghera & Guynn, 2010, p. 1).  Furthermore, Senate Republicans recently attempted to put a bill on the floor to overturn the FCC’s Open Internet rules, however the bill was narrowly rejected (Puzzanghera, 2011).   It appears likely that the FCC Open Internet rules will continue to be challenged in the legislature and the judiciary until the Internet is treated legally as a commons.

Of course, the critical issue with the Open Internet rules is the lack of legal recognition of the Internet as a commons.  Instead, the emphasis is on the Internet is as an important commercial platform for innovation and growth that must be protected with administrative rules rather than law.  While the Open Internet rules are an important step in anti-discrimination, they fall short of common carriage law insofar as they fail to treat the Internet as a legal commons that produces a public good.  Moreover, the Open Internet rules are not a legislative solution and remain dependent on the support of the FCC.  This author suggests that the anti-discrimination principles inherent in network neutrality proposals come largely from the common carriage principles of earlier legislation.  Moreover, the current Open Internet rules contain important anti-discrimination principles, but lack the force of law.  This author recognizes that despite the progress inherent in the FCC rules, net neutrality legislation is required to assure a lasting solution that recognizes the importance of the Internet to public good.

Conclusion

            From the telegraph to the Internet, each new communication technology creates a similar debate.  To what degree does the network constitute a public good and require regulation as a commons?  In the past, common carriage laws have been used to assure that corporations are unable to use their network ownership to discriminate.  However, the recent net neutrality rules enacted by the FCC, while providing an administrative basis to prevent the worst forms of discrimination, falls far short of common carriage legislation of the past, and continues to be challenged by lawmakers and the judiciary.  Therefore, this author suggests that the fight against network discrimination has only just begun, until such a time where anti-discrimination law for the Internet is a reality.

 

 

 

References

Blondheim, M. (2004). Rehearsal for media regulation: Congress versus the telegraph-news monopoly, 1866-1900. Federal Communications Law Journal, 56(2), 300-328.

BusinessWeek, B. (2005). Online Extra: At SBC, It’s All About “Scale and Scope”, from http://www.businessweek.com/stories/2005-11-06/online-extra-at-sbc-its-all-about-scale-and-scope

CBC News. (2005, July 24). Telus cuts subscriber access to pro-union website, from http://www.cbc.ca/news/canada/story/2005/07/24/telus-sites050724.html

Federal Communications Commission. (2010). Report and Order: In the Matter of Preserving the Open Internet Broadband Indusrty Practices.  Washington, DC: FCC, Retrieved from http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-10-201A1_Rcd.pdf.

Knowledge@Wharton. (2009, December 9). Comcast-NBC Universal: Will the Marriage of Cable and Content Work?  , from http://knowledge.wharton.upenn.edu/article.cfm?articleid=2401

Lessig, L., & Lemley, M. (2001). The end of end-to-end: Preserving the architecture of the Internet in the broadband era. UCLA Law Review, 48, 925-987.

Moglen, E. (2009, February 2). Lane v. Cotton, from http://moglen.law.columbia.edu/twiki/bin/view/EngLegalHist/LanevCotton

Noam, E. M. (1994). Beyond liberalization II: The impending doom of common carriage. Telecommunications Policy, 18(6), 435-452.

Puzzanghera, J. (2011). Senate rejects attempt to overturn FCC’s net neutrality, from http://latimesblogs.latimes.com/technology/2011/11/senate-net-neutrality-vote-.html

Puzzanghera, J., & Guynn, J. (2010). Appeals court overturns FCC rule on net neutrality, from http://articles.latimes.com/2010/apr/07/business/la-fi-fcc-comcast7-2010apr07

Rock, R. (2012). What Hath God Wrought: Commonality Between the Telegraph and the Internet [1-6]. Essay Retrieved from https://journey24pointoh.com/2012/09/05/what-hath-god-wrought-commonality-between-the-telegraph-and-the-internet/

Sandvig, C. (2007). Network neutrality is the new common carriage. info, 9(2/3), 136-147.

United States. Congress. (1996). Telecommunications Act of 1996. (0160534887). Washington DC: U.S. G.P.O. : For sale by the U.S. G.P.O., Supt. of Docs., Congressional Sales Office Retrieved from http://transition.fcc.gov/Reports/tcom1996.pdf.

Weiser, P. J. (2009). The future of Internet regulation. University of California, Davis Law Review, 43, 529-590.

Western Union Telegraph Co. v. Call Pub. Co., No. 181 U.S. 92  (U.S. Supreme Court 1901).

Network neutrality: Competition, innovation, and nondiscriminatory access, United States Congress 1-7 (2006a).

Wu, T. (2006b). Why have telecommunications law? Anti-discrimination norms in communications. Journal on Telecom and High Tech, 5(7), 15-46.

 

 


The SEC and Madoff: The Need for Authentic Leadership in Regulatory Agencies


No scandal in recent memory highlights government regulatory ineptitude quite as clearly as the Security and Exchange Commission’s failure to uncover Bernie Madoff’s Ponzi scheme, a scheme that bilked investors “of an estimated $65 billion” (Shafritz, Russell, & Borick, 2011, p. 362).  Madoff, a wealthy, prominent, industry insider, perpetrated his scheme on unsuspecting investors beginning as early as 1992 and the SEC had received and investigated no less than six complaints between 1992 and 2008, when Madoff finally confessed (U.S. Securities and Exchange Commission Office of Investigation, 2009).   Why was the SEC so slow to respond to tips and complaints about Madoff?  More importantly, what institutional changes have been implemented at the SEC to assure that the regulatory agency is a more effective regulatory body in the aftermath of Madoff?  This author finds that while the SEC’s internal investigation has revealed some of the systematic causes of their failure, and has worked to address them, the most notable and enduring failure of the SEC was a leadership failure that remains unaddressed, prompting a call for SEC leaders to adopt the principles of authentic leadership to develop an ethical organizational identity.

On Causes of the SEC Failure

            In the wake of the SEC’s failure to catch Madoff, despite the numerous complaints, the SEC conducted an internal investigation to determine why they failed to uncover Madoff’s Ponzi scheme during the course of their many investigations (Wingfield, 2009).  The SEC (2009) report found that a) investigations and examinations went uncompleted, b) the agency failed to collaborate both internally or externally, c) the agency lacked resources,  d) the agency lacked needed expertise, and e) the agency did not have needed process, systems, or controls.  Equally important, the agency found a) no conflict of interest or impropriety in their handling of the case, and b) no attempts by senior SEC officials to influence the investigation (U.S. Securities and Exchange Commission Office of Investigation, 2009).  In addition, the report is notable for the focus on the specific SEC transactions with Madoff over the years, rather than investigation of systemic problems within the agency that contributed to the failures.  As a result, the SEC (2009) report does not address the role of organizational processes, leadership, or culture, in the failure to uncover Madoff’s scheme, rather it ends suggesting employees involved in the failure should be put on a performance plan.

In light of the SEC’s failure to identify systemic issues, it is worthwhile to review outside criticism of the notable SEC failure.  For example, Shafritz, et al. (2011) suggest the SEC was subject to the phenomenon of ‘agency capture’ whereby a government agency is overly influenced by industry economic interests.   Galbraith (2009) describes the problem endemic to most government regulatory agencies thus:

Regulatory bodies, like the people who comprise them, have a marked lifecycle.  In youth they are vigorous, aggressive, evangelical, and even intolerant.  Later they mellow, and in old age – after a matter of ten to fifteen years—they become, with some exceptions, either an arm of the industry they are regulating, or senile. (p. 166)

In the case of the SEC’s examination of Madoff, the mid-level bureaucrats that examined Madoff appeared overly cautious given Madoff’s stature as a giant in the investment world (Shafritz, et al., 2011).  In particular, because the career path of many in the SEC is in the very firms they are charged with regulating, the agency is susceptible to the ‘revolving door’ phenomenon (Barkow, 2010).  Agency capture, therefore, can be considered an individual choice of self-interest over agency purpose.  What, if anything, has the SEC done in the aftermath of their public failure, to reform the agency, and how will the agency address agency capture?


 

SEC Reforms

            Because of the intense public scrutiny following the SEC’s failure to prevent Madoff’s Ponzi scheme, the agency has published a list of reforms they have undertaken.  While the list of reforms is fairly comprehensive, this author will seek to outline reforms pertinent to the discussion in this paper.  First, the SEC (2012) reorganized their enforcement division and added industry experts to their staff.  Second, the SEC centralized the tracking and distribution of tips and complaints into a computer database (Lynch & Goldstein, 2011; U.S. Securities and Exchange Commission, 2012).  Third, the SEC (2012) has put internal process controls and a governance structure in place to assure appropriate follow-up and disposition on examinations.  Although, given the tactical nature of the reforms, this author thinks it likely that additional oversight failures are likely, primarily because organizational culture and leadership issues remain.

The Need for Authentic Leadership

            The SEC’s failure, in some respects can be considered a failure of leadership and culture.  Indeed, if you considered their failure to detect Madoff’s scheme in light of the larger regulatory responsibilities of the agency, the Madoff failure was one notable failure across two decades of similar failures.  For instance, the SEC failed to detect the widespread corporate fraud of the late 1990’s as corporate giants like Enron, WorldCom, Adelphia, and Tyco bilked investors and employees out of millions.  In addition, the SEC failed to adopt a regulatory position on mortgage lending practices that led to the subprime mortgage crisis.  When one considers the regulatory lapses of the SEC (2012) compared with their avowed mission “to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation” (p. 1), one can likely conclude the agency is in dire need of change, but change to what?

Change is, by its very nature, a leadership problem.  As a regulatory agency that has grown too ‘chummy’ with the industry as a whole, where self-interest appears to override agency purpose, the SEC needs to transform rather than simply reform.  Some argue that the institutional design is flawed, and the agency requires a new design to prevent agency capture (Barkow, 2010).  While the existing reforms and new institutional design are important, equally important is a leadership transformation.  Some would argue that the SEC needs a ‘transformational’ leader to guide them into the future.  However, this author would argue that an agency-wide focus on authentic leadership development is more appropriate, because transformational leadership lacks an ethical or moral dimension.

Authentic leadership theory was born out of the corporate scandals of the late 1990s (George, 2006), however the importance of authenticity was described by Lord Polonius in Shakespeare’s Hamlet, “This above all: to thine ownself be true,
 And it must follow, as the night the day,
 Thou canst not then be false to any man” (Shakespeare, 1986, p. 676).  “Though, the working definition of an authentic leader is true to ones self, there is an expectation that being true to one’s self is also upheld by the overarching morality of society” (Tonkin, 2010).  It is in this context, that authentic leadership applies to the problems of ethics and morality in an organization.  Moreover, an authentic leader has the opportunity to drive the ethical identity of an organization through a written code of ethics and authentic leadership behaviors (Verbos, Gerard, Forshey, Harding, & Miller, 2007).  How then, does one tell the difference between self-interested leaders and authentic leaders?

A Tale of Two Leaders

            This author will describe his experience with two organizational leaders to illustrate an example of leadership authenticity.  The first leader to discuss is Jon Doe.  Jon’s day-to-day leadership was centered on the notion of crisis, real or manufactured, given both scenarios were equally useful to drive change.  Insofar as Jon sought to transform the company, using crisis as an enabler, characterized Jon as a transformational leader.  Moreover, Jon’s focus on transformation gave the appearance of the consummate executive, working towards the greater good of the company.  However, over time, Jon would often switch positions on key topics regarding organizational change, depending on the power of the position relative to other positions.  In addition, Jon would reprioritize organizational resources depending on the crisis of the moment, effectively abandoning earlier crisis, irrespective of the state of resolution.  This author’s opinion is that Jon was an opportunist that was expert at aligning his self-interest with organizational interest, rather than an authentic leader.

Contrasted with Jon Doe is Jane Doe.  Jane was an organizational leader that was several management levels below Jon.  Jane worked tirelessly to craft the organizational mission, vision, and values with the team.  In addition, Jane aligned word and deed, being the first to live organizational values.  In this respect, Jane was truly an authentic leader.  As a result, Jane’s organization was poised to make sound, ethical, business decisions even in ambiguous situations.  Moreover, Jane’s team had greater organizational commitment and job satisfaction than Jon’s team.  In essence, Jane was able to interweave the organization’s business identity and ethical identity with the organizational purpose.

The differences between these two examples highlight the importance of understanding one’s motivation.  In dramaturgical terms, an actor or actress seeks to understand a character’s ‘through line’, the overriding motivation that drives the character’s behavior and decision-making.   A leader’s understanding of their own ‘through line’ can serve to define organizational values and ethical identity, a situation desperately need at the SEC.

Conclusion

            The SEC learned much from their self-examination of the failures that led to the biggest regulatory miss of the last twenty years.  However, like any self-examination, there are difficult to reach places and blind spots that led the SEC to reform rather than transform.  Most notably, the SEC self-examination did not recognize the contributing and enduring role played by organizational leadership and culture.  It remains to be seen whether SEC reforms will have their intended effects, however, without the development of an authentic leadership capability within the agency, and the resulting ethical organizational identity, it appears likely that the SEC will remain an agency captured by the interests of the financial industry, rather than the interests of the public.

References

Barkow, R. (2010). Insulating agencies: Avoiding capture through institutional design. Texas Law Review, 89(1), 15-79.

Commission, U. S. S. a. E. (2012, July 30, 2012). The Investor’s Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation  Retrieved August 19, , 2012, from http://www.sec.gov/about/whatwedo.shtml

Galbraith, J. K. (2009). The great crash, 1929. Boston: Houghton Mifflin Harcourt.

George, B. (2006). Truly authentic leadership. [Article]. U.S. News & World Report, 141(16), 52.

Lynch, S. N., & Goldstein, M. (2011, July 27, 2011). Exclusive: SEC builds new tips machine to catch the next Madoff  Retrieved August 19, 2012, from http://www.reuters.com/article/2011/07/27/us-sec-investigations-idUSTRE76Q2NY20110727

Shafritz, J. M., Russell, E. W., & Borick, C. P. (2011). Introducing public administration (7th ed.). Boston: Longman.

Shakespeare, W. (1986). William Shakespeare, the complete works (Original-spelling ed.). Oxford Oxfordshire ; New York: Clarendon Press ; Oxford University Press.

Tonkin, T. (2010). Authentic leadership: A literature review. Research Paper. School of Global Leadership and Entrepreneurship. Regent University. Virginia Beach.

U.S. Securities and Exchange Commission. (2012, April 4, 2012). The Securities and Exchange Commission Post-Madoff Reforms  Retrieved August 19,, 2012, from http://www.sec.gov/spotlight/secpostmadoffreforms.htm

U.S. Securities and Exchange Commission Office of Investigation. (2009). Investigation of Failure of the SEC to Uncover Bernard Madoff’s Ponzi Scheme – Public Version – U.S. Securities and Exchange Commission Office of Investigation, Retrieved from http://www.sec.gov/news/studies/2009/oig-509.pdf.

Verbos, A. K., Gerard, J. A., Forshey, P. R., Harding, C. S., & Miller, J. S. (2007). The positive ethical organization: Enacting a living code of ethics and ethical organizational identity. Journal of Business Ethics, 76(1), 17-33.

Wingfield, B. (2009, September 2, 2009). New Madoff Report Blasts SEC. The Regulators  Retrieved August 19, 2012, 2012, from http://www.forbes.com/2009/09/02/bernard-madoff-sec-business-washington-madoff.html


Framing Political Scandals: The Functioning of ‘Trial by Media’


The rise of mediated communication has fundamentally changed how the world is experienced by society, perhaps no more so than in the realm of politics.  In fact, “the media have become a main source of information and opinion for the public” (McQuail, 2010, p. 526).  As such, political actors have an increasing reliance on the media to shape their public image, set their political agenda, and to provide the arena with which political events are played out (McQuail, 2010).  While politic actors spend a great deal of time and energy using the media to provide “a basis of support for their power and policies…mediated visibility is a double-edged sword” (Thompson, 2005, p. 41), insofar as increased visibility also creates increased risk.  Of course, the most significant risk facing politicians is that of the political scandal, or ‘trial by media’.  Thompson (2000) describes a political scandal as a situation where previously invisible behaviors that violate social norms, become visible, are seen as contrary to the politician’s carefully crafted image, and are characterized by an ensuing public outcry or demand for justice.  Of course, Thompson’s (2000) definition of political scandal in a era of mediated visibility presumes that the media is the cause, in terms of increased scrutiny, visibility and construction of the scandal event, and also creates effects, in terms of audience reaction.  Arguably, Thompson (2005) does little to describe how the construction of the scandal event creates the effect on audiences.  However, recent empirical research by Kepplinger, Geiss, and Siebert (2012) describes how media-constructed frames of political scandals provide cues that determine how message recipients process the scandal information to draw conclusions and form behavioral intentions.  What follows is an analysis and critique of Kepplinger, et al.’s (2012) work to understand its explanatory power for how ‘trial by media’ affects audiences and discuss the implications of their findings.

Framing Scandals: Overview and Method

            Whereas the existing literature on framing effects infer a strong relationship between journalistic frames and audience influence, McQuail (2010) suggests that “it is not obvious how framing will work as an effect process” (p. 511).  To explore how media constructed scandal information influences the audience, Kepplinger, et al. (2012) used “three strands of research to develop a model of individual-level opinion formation in scandals: a) scandal research, b) framing theory, and c) appraisal theory” (p. 600).  The authors appear to use Scheufele’s (1999) process model of framing effects, whereby journalists construct the frames, the frames are transmitted to the audience, and the audience accepts certain frames “with consequences for their attitudes, outlook, and behavior” (McQuail, 2010, p. 511).  Moreover, the authors recognized that framing theory did not describe the link between specific media frames and the resulting inferences (Kepplinger, et al., 2012).  Therefore, Kepplinger, et al. (2012) ‘filled the gap’ with appraisal theory (Nerb & Spada, 2001) which identifies relevant cognitions that lead to the creation of opinion in negative events including five aspects, a) whether the damages are large or small, b) the degree to which the transgression was caused by human behavior, c) whether the people followed selfish or altruistic goals, d) whether they were aware of the consequences of their actions, and e) whether there was an opportunity to act differently.  These cognitions are understood to form the basis of people’s beliefs, and moreover, will influence an audience frame of guilt or excuse.  The author’s model integrating these theories were used to test how the type of frame, amount, and completeness of frames affected the audience to arrive at a guilt frame or an excuse frame (Kepplinger, et al., 2012).

With their model as the basis for the research, Kepplinger, et al. (2012) designed the research with the following hypotheses:

H1:  Media depict the cases using primarily fragmentary frames, blaming the public figure with regard to some components (e.g., selfish motives) but not with regard to all (e.g., prior knowledge).

H2:  Cognitive reactions of individuals result from a) learning from the media and b) conclusions of individuals, drawn from an overall impression.

H3:  Individuals will develop one of two polarized individual frames: a guilt frame or an excuse frame.

H4:  A person will call for more severe punishment if he or she a) believes the public figure is guilty and b) feels angry; an individual will call for milder punishment if he or she c) excuses the public figure and d) feel sad about the case.

H5:  Individuals will tend to develop a(n) (individual) guilt frame (a) the more complete guilt frames they receive and (b) the more fragmentary guilt frames they receive.

H6:  A model of opinion formation in scandals accounting for learning from the media and information processing of individuals will adequately model the relationships between cognitive reactions, emotional reactions, and calls for punishment. (pp. 662-663)

In order to test their hypotheses, Kepplinger, et al. (2012) conducted a content analysis of how the four political scandals were depicted by media according to the five aspects, damages, human agency, selfish goals, prior knowledge, and freedom of action, and combined them with individual survey data by calculating the individuals media input.  The combined data demonstrate the extent to which journalist frames influence audience information processing.

Framing Scandals: Findings

            Indeed, Kepplinger, et al. (2012) found support for much of their hypothesis.  Only rarely did the media portray complete frames across all five aspects, instead typically providing fragmentary guilt frames in one or more aspects, with human agency being the most dominant, resulting in support for H1 (Kepplinger, et al., 2012).  More importantly, the researchers found that learning accounted “for a low share of variance in cognitive reactions” (Kepplinger, et al., 2012, p. 671), whereas information processing to form a consistent impression explained as much as 92% of variance, suggesting that all five journalist frames positively and significantly influence the cognitive reaction, providing empirical support for H2.  In addition, the audience cognitions led to the formation of a guilt frame or excuse frame, depending of the audience perception of damages, which also influenced audience views on punishment, providing support for H3 (Kepplinger, et al., 2012).  The support for H4 was weaker, with some evidence of a relationship between the degree of perceived damage and calls for punishment, with cognitive variables accounting for 40% of calls for punishment, while emotional reactions of the audience did not significantly contribute to calls for punishment absent cognitions (Kepplinger, et al., 2012).

Moreover, the Kepplinger, et al. (2012) found the more guilt frames an audience received, the greater the tendency to develop their own guilt frame, with as much as 9% of the development of a guilt frame explained by guilt frames the audience received.  Furthermore, “although recipients received fragmentary frames, they complemented the picture and developed a coherent guilt frame by themselves” (Kepplinger, et al., 2012, p. 675), suggesting that audiences elaborate on fragmentary information to arrive at their own conclusions, providing support for H5.  Finally, Kepplinger, et al. (2012) were able to construct a structural equation model “spanning from media input, via cognitions and emotions, to behavioral intentions” (p. 675).

Implications

            Rather than supporting the notion of ‘trial by media’, whereby the media determine public perception of guilt during a scandal, Kepplinger, et al.’s (2012) findings suggest that the media provide fragmentary information, which is then elaborated on by an audience to create an impression of guilt or an impression that excuses the behavior.  These findings are therefore consistent with Petty and Cacioppo’s (1986) Elaboration Likelihood Model suggesting that people with will be motivated to achieve cognitive consistency drawing on both knowledge and experience, or ‘incidental cues’ to fill in information gaps.  In this sense, individuals as well as media are equally responsible for the formation of an individual guilt frame.

Insofar as the media operates on a 24-hour news cycle, scandal stories often begin with fragmentary information and are updated frequently as new information is discovered.  In such a setting, the audience is subjected to repeated fragmentary guilt frames increasing the likelihood that individual audience members will arrive at a guilt conclusion, despite the lack of a complete picture.  Therefore, in this sense, the 24-hour news cycle and associated journalistic business model contribute directly to the formation of public opinion in scandal events, contributing to the development of a ‘trial by media’.

Moreover, the initial framing of a scandal event can have serious consequences on the formation of public opinion, whereby reported levels of human agency or degree of damage can provide incidental cues to the audience that support the formation guilt or excuse audience frames.  In a situation with a perceived high degree of damage, the notion of ‘trial by media’ becomes a distinct possibility, much akin to the notion of a ‘witch hunt’, with serious potential consequences for political actors caught up in the scandal event.  Arguably, Kepplinger et al.’s (2012) findings raise serious ethical questions about the media’s coverage of scandal events, particularly in the era of 24-hour news.

Critique

            The research of Kepplinger et al (2012) is an important addition to media effects research, insofar as it demonstrates a relationship between journalistic framing of scandal events, audience cognitions and emotions, and the audience’s behavioral intentions.  However, there are opportunities to further their research to draw more conclusive findings.  First, the research focused on solely on political scandals, to the exclusion of financial, criminal, or sexual scandals.  This author wonders whether audience elaborations would exhibit the same consistency in the face of a sexual scandal, where audience morals may play a more salient role in the creation of guilt or excuse frames.  Moreover, would the same journalistic framing norms apply during a media investigation of powerful political figures, as they would for others with less power?

In addition, the research did not explore the role of confirmation bias in an individual’s elaboration process.  To what degree do political leanings affect the media effects described? Are individual’s more or less likely to elaborate according to their own established views?  To what extent are journalist more or less likely expand on the journalist guilt frames based on their bias?   In an analysis of scandal events, Puglisi and Snyder (2008) found that Democratic leaning newspapers provided relatively greater coverage to Republican scandals and Republican leaning newspapers provided greater coverage to Democratic scandals.  Given Kepplinger et al.’s (2012) findings, is greater coverage inherently biased?  More importantly, does the combination of greater coverage and the workings of confirmation bias all but assure an individual will arrive at a guilt frame?

In addition, Kepplinger, et al. (2012) suggest that their work could benefit from more investigation into how opinions form over time to understand their malleability.  Furthermore, the authors acknowledge that more work is needed to understand the sources, beside media content, upon which individual frames are based (Kepplinger, et al., 2012).  This author concludes the findings are sufficiently compelling to warrant further investigation to advance this line of media effects research.

Conclusion

            Kepplinger et al.’s (2012) research into how media-constructed frames of political scandals can cue message recipients to elaborate and draw conclusions in absence of complete information.  Moreover, the greater the number of guilt frames the audience receives, the higher the likelihood the audience will draw a guilt conclusion, a disturbing finding consider the character of the 24-hour news cycle.  Accordingly, the greater visibility of today’s heavily mediated reality is fraught with risk for political actors seeking to manage their image, where the simple association with scandal could very well minimize their ability to advance their agenda, or even destroy their career.

References

Kepplinger, H. M., Geiss, S., & Siebert, S. (2012). Framing Scandals: Cognitive and Emotional Media Effects. Journal of Communication, 62(4), 659-681.

McQuail, D. (2010). Mcquail’s mass communication theory (6th ed.). London ; Thousand Oaks, Calif.: Sage Publications.

Nerb, J., & Spada, H. (2001). Evaluation of environmental problems: A coherence model of cognition and emotion. Cognition and Emotion, 15, 521-551.

Petty, R. E., & Cacioppo, J. T. (1986). ‘The elaboration likelihood model of persuasion’. In L. Berkowitz (Ed.), Advances in Experimental Social Psychology (pp. 132-205). New York, New York: Academic Press.

Puglisi, R., & Snyder, J. M., Jr. (2008). Media coverage of political scandals. Washington DC: The National Bureau of Economic Research.

Scheufele, D. A. (1999). Framing as a theory of media effects. Journal of Communication, 49(1), 103-122.

Thompson, J. B. (2000). Political scandal : power and visibility in the media age. Cambridge

Malden, MA: Polity Press ;

Blackwell.

Thompson, J. B. (2005). The New Visibility. Theory, Culture & Society, 22(6), 31-51.


Strengthening Communities in the Internet Era: Theory and Practice


The problems facing American communities are as varied as the definition of community.  While in the midst of recovery from the greatest economic downturn since the Great Depression, local communities are struggling to promote a sense of community and increase civic engagement.  The need for community renewal arises from a desire to improve quality of life and to build community-based platforms to address a variety of social issues including urban growth, rural flight, economic growth, sustainability, inequality, and public health to name but a few.  In contrast, Fernback (2007) notes that some “social observers have documented the perceived decay of communal life in post-industrial nations” (p. 50). Indeed, dystopian views of the both the postindustrial revolution and globalization often cite the perceived erosion of community and loss of civic engagement as a serious concern for western society (Putnam, 2000; Saguaro Seminar on Civic Engagement, 2001).  In addition, Smith (2001) argues that impact of globalization “is a drive towards encouraging people to view themselves as consumers of services, rather than participants, and an associated move towards individualization from more collective concerns” (p. 1). However, postindustrial life also abounds with new capabilities including a global transportation network, global telecommunications infrastructure, the World Wide Web, and electronic social networks that offer new opportunities for community development.  How then, can communities take advantage of the capabilities inherent in a networked, globalized, world to increase civic engagement and address persistent social challenges?  The basis for answering that question lies in Putnam’s (2000) work on social capital, what Putnam considers the “features of social organization such as networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit” (Claridge, 2004, p. 1).  The formation of social capital relies on two distinct strategies, that of bridging and bonding; where bridging uses outward looking networks that connect different kinds of people, and bonding use inward-facing networks that connect similar types of people (Knudsen, Florida, & Rousseau, 2005).  Traditional American civic engagement in organizations like the Kiwanis Club, the Knights of Columbus, or even local bowling leagues, operated largely on bonding strategies, as like-minded individuals engaged in community activities.  Whereas in a networked world, bridging strategies are far easier to implement, given low barriers to entry and that communities can be disconnected from the traditional boundary of space or place.  Indeed, the many-to-many communication paradigm inherent on the World Wide Web, offers new opportunities for communities to prosper by bridging place-based communities to the wider world to increase economic prosperity and improve quality of life.  Strengthening communities in the Internet era is a matter of using technology to harness the multitude of weak ties within a diverse community towards collective actions that benefit everyone, in essence, reimagining community by discarding old boundaries and creating new ones based on community engagement.

Background

In order to describe how communities can take advantage of the capabilities inherent in a networked and globalized world to increase civic engagement and improve community outcomes, this paper will delve further into the theoretical underpinnings of the thesis.  In addition, the opportunities and benefits of a connected community will be explored.  Next, this paper will highlight what a connected community needs in order to be viable.  Finally, the role of local government is explored in forming the required policies, practices, and infrastructure to build civic engagement online.

Theory

Communities and Cyberspace

A review of the literature on sociological theory of community might reveal that a functional definition of community does not exist given the wide variety of contentious theories of community.  Indeed, Cohen (1985) recognized the difficulty, noting that community “has proved to be highly resistant to satisfactory definition in anthropology and sociology” (p. 11).  In turn, Cohen (1985) noted that the symbolic nature of community is “essentially enshrined in the concept of boundary” (p. 14); for a boundary implies that participants have something in common and at the same time that the commonalities are also a basis for how members are understood to be different from others.  It is relatively easy to apply the notion of boundary to traditional geographical interpretations of community, as geography played a central role in the formation of societal differences in language, culture, and sense of affiliation.  In Cohen’s (1985) view, it is no surprise that community has eluded definition for so long, given that people construct the social meaning of community participation based on fluid notions of boundary and affiliation.

The advent of the Internet and the World Wide Web provides additional support for the social construction of community, given the explosive growth of online communities.  Baym’s (2010) observations of early online newsgroups suggested the development of rich community-based structures. While Fernback (2007) “advocates a symbolic interactionist perspective on cybercommunity that focuses on the process of community building as an active human endeavor” (p. 50).  Communities on the Internet are built on a variety of different technological capabilities based on computer-mediated communication, from bulletin boards, to ecommerce sites, to social network sites.  boyd[RR1]  and Ellison (2007) “define social network sites as web-based services that allow individuals to (1) construct a public or semi-public profile within a bounded system, (2) articulate a list of other users with whom they share a connection, and (3) view and traverse their list of connections and those made by others within the system” (p. 1).  Thus, the ability for users to construct a personalized online community and determine boundaries is consistent with Cohen’s (1985) ideas on the symbolic construction of community.

In some respects, online communities can offer potential members more choice than their geographic counterparts, given the sheer volume of interactions on the Internet.  However, dystopian observers are often concerned with the social cost of computer-mediated communication.  Baym (2010) notes that “historical changes occurring in conjunction with and facilitated by communication technologies have led many to worry that people are losing meaningful connections to their local communities (p. 73).  Rather than view online community as a threat to traditional place-based communities, a more refined view might consider how placed-based communities could prosper by integrating with the wider world using computer-mediated communication, and in particular social network sites.

Internet access and social networking sites can increase both civic and political engagement (Baym, 2010).  Hampton and Wellman’s (2003) early study of a Toronto neighborhood that was wired for high-speed Internet access is notable insofar as “Internet use was associated with larger neighborhood networks, more recognition of neighbors, greater frequency of communication (on-and offline), and participation in the public and private realms” (p. 305). Internet use enhanced the local community and increased social capital.  In addition, a Pew Internet study found that “those who use blogs and social networking sites as an outlet for civic engagement are far more active in traditional realms of political and nonpolitical participation than are other internet users [and] they are even more active than those who do not use the internet at all (A. Smith, Scholzman, Verba, & Brady, 2009).  Indeed, Putnam’s (2000) dystopian warning of the loss of social capital rings hollow in light of recent research, perhaps relating to the differences in the types of social capital afforded by the Internet and social network sites, as compared with the bowling leagues of yesteryear.

Social Network Sites and Bridging

A recent study of Facebook, the world’s most popular social network site, found “a robust connection between Facebook usage and indicators of social capital, especially of the bridging type” (Ellison, Steinfeld, & Lampe, 2007, p. 1).  Not only were Facebook users able to accumulate bridging social capital, but Ellison, et al., (2007) also found that Facebook use helped maintain bridging social capital.  Moreover, “bridging social capital—which is closely linked to the notion of “weak ties”—seems well-suited to social software applications…because it enables users to maintain such ties cheaply and easily” (Ellison, et al., 2007, p. 1).

The emphasis on bridging is important, because much of the social capital literature finds that bridging is associated with higher economic growth, while lower growth is associated with bonding (de Souza Briggs, 2003; Knudsen, et al., 2005; Putnam, 2000).  de Souza Briggs (2003) describes the value bridging has for participants, by “connecting persons and other social ‘sites’ with distinct traits, ties often constitute bridges across roles, status differences, material and symbolic interests, space, norms, and even worldviews” (p. 2).  Not only do social network sites appear to help users accumulate and maintain bridging social capital, but also, accumulated bridging social capital may translate to economic growth, and perhaps most importantly, result in the exchange of ideas between diverse groups.

The Economy of Ideas

Neoclassical economic theory holds that trade can make everyone better off despite which trading partner holds an absolute advantage (Mankiw, 2012).  Known as the principle of comparative advantage, “trade allows people to specialize in activities in which they have a comparative advantage” (Mankiw, 2012).  Ridley (2010) considers specialization and exchange to be at the heart of human prosperity, suggesting that humans are the only species that grow more prosperous as the population grows.  The uniquely human processes of communication and cooperation are the basis for trade and extend beyond the realm of objects, into the realm of ideas; where Ridley (2010) suggests that the exchange of ideas is responsible for technological progress and prosperity.  To the extent that specialization, by its very structure, defines humanity in terms of their differences, social capital from bridging may result, in part, from the exchange of ideas between heterogeneous sources.  Indeed, a recently published studied explored the role of both bridging and bonding social capital in innovation, finding that “social capital is an important predictor of innovative performance after controlling for the ‘traditional’ knowledge inputs” (Crescenzi, Gagliardi, & Percoco, 2011, p. 31).  Moreover, Crescenzi, et al., (2011) found that “bridging’ social capital – based on weak ties – can be isolated as the key driver of the process of innovation while ‘bonding’ social capital is generally negative for innovation” (pp. 31-32).  The results are perhaps unsurprising given Ridley’s (2010) view that technological process, and hence prosperity, is based on the exchange of ideas, given that bonding groups would share similar information, while bridging groups would have different knowledge and experiences, resulting in Ridley’s notion of “ideas having sex”.

Shirky (2009) contributes to the proposition that social media may be transformational because of the many-to-many communication paradigm; when coupled with the notion of billions of connected human beings, one wonders at the possibilities.  Shirky (2010) further observes that there are existing trends that hint at future possibilities, describing how humanity’s ‘cognitive surplus’ or excess brain cycles are generously being put to use in online communities, citing notable examples like development of open-source software or Wikipedia, unexpected open market innovations that turn the traditional profit notions upside-down.  What future developments and ideas are possible when another billion people come online?  More importantly, what impact will the world’s ‘cognitive surplus’ have on economic growth and prosperity when their ideas have sex?

In the field of economics, Romer (2008) departed from neoclassical economic models with the development of endogenous growth theory, arguing that the level of technological change can be impacted by policy decisions, such as policies that promote openness, competition, encourage education, and protect intellectual property.  Notably, Romer’s model reflects the notion that ideas do not reach a point of diminishing returns like other resources, rather ideas build upon one another (Cortright, 2001; Romer, 1994).  Therefore, it appears clear that modern economic theory supports the notion that rate of growth for ideas is driven from a policy perspective.

Conceptual Model for a Connected Community

It certainly appears that Cohen’s (1985) view of community in the context of boundaries had deep implications for strengthening communities, for boundaries both bind and differentiate community members.  Where Putnam (2000) described the value and positive externalities associated with both types of social capital, numerous scholars have extolled the economic and other benefits of bridging social capital, the social capital that arises from differences (Crescenzi, et al., 2011; de Souza Briggs, 2003; Ellison, et al., 2007; Knudsen, et al., 2005; Putnam, 2000), confirming Granovetter’s (1973) perspective on the strength of weak ties.  Ridley (2010) goes a step further, envisioning all of humanity as a collective brain, connected through the Internet and social networks, observing continued innovation and technological process based on the exchange of ideas.  Whereas Crescenzi, et al., (2011) confirmed that bridging social capital is an important driver of the innovation process, again owing to differences.  In addition, the notion that innovation and technological progress are outcomes of policy decisions gives rise to the idea of what Romer (2008) calls a meta-idea, or an idea “about how to support the production and transmission of other ideas” (p. 1); in this case, driven from a local community context.

The meta-idea, is the notion that local community developers can improve community outcomes through a connected community, focused on the issues of economic growth, sustainability, public health, inequality, and urban growth/rural flight.  A connected community enables the flow of bridging social capital via exponential growth of weak ties, enabled by cooperation and communication between diverse community constituents and trading partners in the globalized world.  The exponential growth of weak ties and resulting flow of bridging social capital requires the low barriers to entry inherent in social network capabilities.  In addition, a connected community requires forward-thinking policies that promote openness, transparency, diversity, and investment in infrastructure, higher education, and R&D.  The conceptual model for the connected community is constructed visually in Figure 1:

Figure 1.  The figure presents a conceptual model for a connected that highlights how technology, public policy, and both local and global community constituents can improve community outcomes.  The model encourages diversity, investment, the growth of weak ties, and flow of social bridging capital to improve community outcomes related to economic growth, sustainability, public health, inequality, and urban growth/rural flight.

The conceptual model for the connected community is not necessarily a new meta-idea, insofar as there are several communities in the United States and elsewhere that already have some form of the model in place.  Rather, this may be one of the few times the idea is expressed with a sociological and economic theoretical foundation.  In the next section, the paper will explore the practical application of the meta-idea using existing communities as the basis for exploring the benefits and requirements of implementation, as well as risks. 

Practice

Benefits of a Connected Community

In 2004, the City of Riverside, California collaborated with Riverside Community College, to pull together a high tech task force to in order to gain a larger share of the economic prosperity afforded by California’s high technology industry.  Eight years later, Riverside was named one of the top seven intelligent communities by the Intelligent Community Forum, an acknowledgment of Riverside’s ability to build a sustainable, competitive economy and a vibrant society (Intelligent Community Forum, 2012).  The outcome of the high tech task force was a roadmap that “focused on promoting technology businesses and creating the information infrastructure they needed, fostering entrepreneurship in higher education, improving the skills of the population and demanding that city government set an example of tech-based innovation” (Intelligent Community Forum, 2012, p. 1).  Indeed, the initial roadmap included ideas similar to those found in the conceptual model for a connected community, insofar as the roadmap identified government, business, higher education, and community organizations as key constituents (Tillquist, 2004).  In addition, the roadmap targeted policy and investment goals towards strategic use of technology, assurance of advanced Internet access, policy, code and ordinance orientation around high technology, and university system R&D investment transfer into the local community (Tillquist, 2004).

While the roadmap did not call out specific uses of social network technology or include foreign trading partners as key constituents, those elements are found in practice.  For instance, there is evidence of foreign trading partner involvement in key initiatives highlighted by the Intelligent Community Forum (2012), including a testing and implementation partnership “with new technologies like thin-film solar cells with researchers at Tohoku University and rare-earth yttrium batteries with Winston Global Energy in Shenzhen, China” (p. 1).  In addition, Winston Global Energy company, and local Riverside business SolarMax, are collaborating on the development and construction of a 2MW solar generation project at University of California, Riverside, and a comprehensive 20MW solar energy strategy for Riverside Public Utilities (Intelligent Community Forum, 2012).

On the social networking front, there does not appear to be a specific focus on the use of social networking sites to encourage communication and cooperation, but one can easily image how such capabilities are being used by individuals involved in the program, absent a specific mandate.  In addition, there is evidence that the City of Riverside is attempting to engage community members with systems like the “Riverside Resident Connect system for reporting problems by phone, email, or submission of a photo taken with a smartphone” (Intelligent Community Forum, 2012, p. 1).  E-government services are also prevalent with an extensive menu of online government services (Riverside City Government, 2012b).  There remains considerable opportunity for the City of Riverside to encourage the growth of bridging social capital through more far-sight use of social networking capabilities.

The City of Riverside has proven adept at encouraging the notion of a connected community to improve community outcomes, focusing their efforts on economic growth, sustainability, and urban growth.  Their investment and collaboration has resulted in the growth of a high technology community of businesses, higher education institutions, and foreign trading partners, that have spurred economic growth and more than 6,000 new jobs in the last three years (Intelligent Community Forum, 2012; Riverside City Government, 2012a).  Of course, their journey continues with upcoming projects focused on both infrastructure improvements and digital inclusion (Intelligent Community Forum, 2012).

Needs of a Connected Community

There are significant resources available to local governments seeking to build connected communities.  Commercial technology companies like Cisco and IBM both have established business units with expertise in building digital communities and cities.  Cisco’s Smart+ Connected Communities solutions in particular, was central to the City of Riverside’s citywide deployment of Wi-Fi technology.  In addition, there are several forums with ideas to guide investments in connected communities, including the Intelligent Community Forum and the Smart Cities collaboration project.  Ovum, an international consultancy also recently released a strategy paper that provides high level guidelines for developing a smart city based on two primary strategies, a digital cities strategy for the top down development and investment by government, business, utilities, and a digital society strategy for bottoms up engagement from individuals, community groups, universities, start-up firms, and NGOs (Hodgkinson, 2011). Hodgkinson (2011) defines the critical ingredients for successful digital city initiatives:

  • leaders who inspire the pursuits of economic, social, and environmental sustainability,
  • governments, industry, cities, and citizens who collaborate,
  • cities that leverage proven ideas and solutions to build more city for less,
  • cities that consciously nurture a vibrant digital society to strengthen social capital and engender digital inclusion. (p. 3)

The focus on collaboration and the recognition of the need to strengthen social capital and create digital inclusion strategies suggests that industry strategy for connected communities rests solidly on the theoretical backbone of the sociology.

The Role of Government in Developing a Connected Community

Concerned over Putnam’s (2000) observation at the decline of civic and political engagement, leaders in local government might be tempted to direct limited information technology budgets towards increasing the affective commitment of local citizens to their communities, hoping to increase bonding social capital, a strategy at odds with innovation and growth.  Rather, local governments should seek to exponentially increase the number of weak ties to the community and oriented their services to harness weak ties of the crowd, improving the exchange of ideas, and thereby using community engagement to lower government costs.  In addition, local governments should seek to reduce information technology budgets for maintenance, support, and operations and redirect those funds toward the investments congruent with a connected community, including R&D, education, and infrastructure for advanced Internet access.

In order to lower local government IT spend for maintenance, support, and operations, government IT shops need to transform the way IT departments operate, where possible, moving away from commercial applications and technology, in favor of open source software and cloud computing.  Open source software adoption is increasingly a viable option for government entities owing to the free license distribution model and is sometimes supported by major vendors.  For example, the State of California recently authorized the use of open source software (Office of the State CIO, 2010).  In a related effort to reduce government IT costs, the federal government has adopted a “cloud first” strategy, highlighting a preference for applications and technology deployments in the cloud, thereby reducing the need to maintain IT plumbing and allowing IT departments to manage services, rather that infrastructure (Kundra, 2011).  Both the adoption of open source software and cloud computing in local government can free up much needed government IT capital and operating expenditures to fund the development and transmission of government services to community constituents.

Most local governments offer a variety of citizen services available on Internet computing technology, particularly those in large urban centers.  Many government services are built in a traditional top-down way intending to cut government labor costs, increase administrative productivity, and make government data available to the public (City and County of Denver, 2012; Riverside City Government, 2012b).  While the menu of government services continues to increase and provide incremental improvements in government services, in this author’s opinion, they fail to capture the imagination of their communities, nor leverage the cognitive surplus of their constituencies.  The City of San Francisco is notable in leveraging the cognitive surplus of the crowd, perhaps owing to the influence of nearby Silicon Valley.  The city is “leading the nation in adapting consumer technologies to improve the way citizens interact with their metro areas” (Feldman, 2010, p. 1).  The city has opened up their data sets, and made them available to the public, spurring the development of innovative new applications, deployed on mobile platforms that connect citizens and government.  The result is “more than 50 privately produced mobile apps, which work on gadgets such as iPhones and Android cell phones, that track everything in San Francisco from restaurant health codes to the most popular biking routes” (Feldman, 2010, p. 1).  San Francisco’s strategy is a live example of Hodgkinson’s (2011) digital society strategy.  The open data sets enable third parties to develop valuable IT services at little cost to the local government, while the developed apps increase the number of weak ties to the community.  Rather than determining what services community constituents want, where possible, local governments can let them build the apps that will improve their quality of life.

Of course, even given open data and crowdsourcing initiatives, local governments still need to consider how they deploy government services in a way that creates more meaningful community engagement.  Hodgkinson (2011) suggests the development of a comprehensive digital strategy that encompasses a variety of digital city services that include digitally enabled transportation, education, healthcare, grids and utilities, and urban planning.  However, local government’s role is not simply to use traditional IT planning processes, but rather to open the door to constituent collaboration to inform the planning process, and understand where the opportunities exist to build social capital and spur economic growth.  The opportunities for collaboration are numerous with a variety of innovative organizations leading efforts to increase social impact in communities, including TED’s City 2.0, OpenIdeo, the Intelligent Community Forum, Smart Cities and Metropolis.org.  In addition, the IT planning process can leverage emerging digital society initiatives including volunteering networks, urban action networks, hyper-local websites, carpooling networks, collective action forums, support networks, and mainstream social networks to “stimulate self-help and co-production behaviors in the community, strengthen social capital, and engender digital inclusion” (Hodgkinson, 2011, p. 2).  Rather than suggest there is a proscriptive approach to determining which government services should be prioritized in a planning process, it is more appropriate to assure that the right stakeholders are engaged in the planning process.  In addition, the final priorities should reflect an awareness of the need to engage constituents to grow the volume of weak ties needed to create the flow of social capital.

Risks

While there is a clear opportunity to reimagine community in the Internet era to promote economic growth, sustainability, and public health, while addressing inequality and improving quality of life, there remain considerable risks.  First, government regulations, ordinances, and legal commitments can inhibit the flexibility of local governments to fully embrace the free flow of ideas across constituents.  Second, given the importance of diversity to bridging social capital and innovation, policies that promote digital inclusion are considered table-stakes.  Yet, even forward-thinking cities like Riverside focus first on efforts that have a more direct connection to economic growth (Intelligent Community Forum, 2012).  In addition, the rise of nativist sentiment across the country has created an environment hostile to immigrants and people of color that negatively impact growth (Immigration Policy Center, 2012).  Local governments need to create an inclusive environment that encourages diversity, a necessary requirement for bridging social capital.  Third, the recent economic challenges, pervasive trade deficits, and outsourcing trends have created anti-trade sentiment in many Americans, in particular towards China.  The possibility exists that anti-trade sentiment could result in protectionist policies that could derail efforts by local governments to strengthen local communities through participation in a globalized world.  Local politicians need to assure that opportunities to communicate and collaborate with foreign trading partners are realized, a requirement of a connected community.

Conclusion

The sociological imagination is alive and well in an era of remarkable transformation, characterized by simultaneous trends of globalization and localization as community leaders seek to strengthen their communities.  Global capabilities like a worldwide transportation network, a global telecommunications network, the Internet, and the World Wide Web offer community leaders an unprecedented opportunity to improve economic growth and quality of life when directed properly.  Contributions from the fields of sociology and macroeconomics guide community leaders beyond the notion of the postindustrial revolution and towards an economy of ideas where social capital is as important as more traditional forms of capital.  In addition, societies use of technology has transformed the World Wide Web, shaping technology into a decidedly social view as a variety of new social network capabilities are brought to market.  Many social networking technologies encourage the accumulation and maintenance of bridging social capital, the type of social capital correlated with both innovation and economic growth.  Accordingly, community leaders can steer their efforts to grow bridging social capital by creating powerful, connected and diverse communities designed with the exponential growth of weak ties in mind, perhaps igniting social and economic processes described by both Ridley and Shirky.

There is no reason to hesitate, given the numerous opportunities to collaborate with forward-looking community organizations, industry, academics, and trading partners.  The roadmap to build a connected community is clear, based on a strong theoretical foundation, and the groundwork of centuries of human progress.  Leaders of vision will embrace the opportunity to drive economic growth and improve quality of life by harnessing the collective efforts of an increasingly connected and diverse constituency.  The creation of a vibrant and connected community will help community leaders redraw the boundaries of traditional place-based communities, to engage a broader, and more inclusive constituency to improve both quality of life and create economic growth.  The community of the future is here.

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Riverside City Government. (2012b). City Online Services  Retrieved March 4, 2012, from http://www.riversideca.gov/services.asp

Romer, P. M. (1994). The origins of endogenous growth. Journal of Economic Perspectives, 8(1), 3-22.

Romer, P. M. (2008). Economic Growth. The Concise Encyclopedia of Economics.  Retrieved February 12,, 2012, from http://www.econlib.org/library/Enc/EconomicGrowth.html

Saguaro Seminar on Civic Engagement. (2001). The BetterTogether Report (pp. 1-106). Cambridge, MA: Harvard University’s Kennedy School of Government.

Shirky, C. (Producer). (2009, July 23, 2011). How Social Media Can Make History. Talks. Retrieved from http://www.ted.com/talks/clay_shirky_how_cellphones_twitter_facebook_can_make_history.html

Shirky, C. (2010). Cognitive surplus : creativity and generosity in a connected age. New York: Penguin Press.

Smith, A., Scholzman, K. L., Verba, S., & Brady, H. (2009). The Internet and civic engagement Pew Internet and American Life Project (pp. 1-66). Washington DC: PewInternet.

Smith, M. K. (2001). Community. the encyclopedia of informal education  Retrieved March 3, 2012, from http://www.infed.org/community/community.htm

Tillquist, J. (2004). Recommendations of the high technology task force (pp. 1-32). Riverside, CA.


 [RR1]This is intentional, based on the author’s choice of capitalization.


Capital, Free Trade and U.S. Hypocrisy


Image from Kheel Center, Cornell University

Nearly 100 years after the infamous Triangle fire, on December 14, 2010, workers producing apparel for the Gap in the Hameen factory outside the capital of Bangladesh, became trapped by a 9th floor fire (Hammadi & Taylor, 2010).  The fire quickly became a conflagration and raged between the workers and the exit.  The workers fled to the fire exits and found locked doors, because management sought to prevent theft.  Left with no recourse, workers either jumped from the top of the building to the ground below or perished from the smoke or flames (Hammadi & Taylor, 2010).  This modern-day Triangle tragedy killed 29 workers and injured more than 100 (Griggs, 2011).

Image from Reuters/Andrew Biraj

The tragedy in Bangladesh serves to highlight the continued exploitation of labor that occurs in the developing world in order to drive down the costs for U.S. corporations.  The problem of exploitation is a complicated one that includes many factors, including the capitalist motives of growth and profit, relaxed or free trade agreements, the appeal of cheap labor and lack of regulatory standards in the developing world, and the need of developing world countries for capital investment to create economic stimulation.  These factors combine to create a vicious cycle that leads to worker exploitation and needless tragedies like the Hameen factory fire and other equally abhorrent labor practices that often impact woman and children the most.

Structural Problem with Capitalism

Hodsen and Sullivan (2008) describe Marx’s view of the structural problem inherent under capitalism:

“The exploitation and misery of workers results directly from the laws of capitalism in which the market system demands that every capitalist buy labor as cheaply as possible in order to produce and sell goods as cheaply as possible and still turn a profit.  If capitalists do not exploit their employees, they will be undercut by other capitalists who do.”  (pg. 8)

Lower costs allow U.S. corporations to return profit to shareholders, compete more effectively, and fund new initiatives to grow their business; in essence, the capitalist incentive system is designed to maximize growth and profit, in direct conflict with workers’ needs for living wages and safe working environments.

The Appeal of Global Labor Differences

            Labor costs vary widely across the globe based on a variety of factors, including the country economy, inflation rate, worker wages, overtime, benefits, and regulatory standards.  Economies without regulatory standards to protect workers, prevent worker exploitation, or protect the environment can be very attractive to corporations that can pass savings on to shareholders in the form of profits or to fuel new growth initiatives.

Free Trade Agreements

            Free trade agreements eliminate trade barriers like tariffs and quotas that historically prevented companies from moving work to countries with lower cost structures.  Advocates of free trade policies, like the WTO and the World Bank argue that free trade promotes economic growth for open economies and a resulting reduction in poverty and inequality.  In the World Bank report on globalization Collier and Dollar (2002) indicate that:

Globalization generally reduces poverty because more integrated economies tend to grow faster and this growth is usually widely diffused. As low-income countries break into global markets for manufactures and services, poor people can move from the vulnerability of grinding rural poverty to better jobs, often in towns or cities.  (p. 1)

Others argue the free trade creates a race to the bottom where industries are more likely to move across borders to countries that have different cost structures and regulatory standards (Hassoun, 2008).  While free trade agreements have opened markets and promoted trade, “these global institutions, however, have been much more reluctant to implement policies that provide protections for workers or for the environment” (Hodson & Sullivan, 2008, p. 203).  By way of example, the Hameen factory fire is indicative of lax safety standards and either poor or poorly enforced labor policies.

A Vicious Cycle

The availability of lower cost labor pools made assessable by free trade agreements have driven the trend by corporations to move work overseas to countries whose economies are in dire need of capital investments and who consequently have created a business-friendly environment.  The government of these countries, like Bangladesh, El Salvador, or Honduras, keep labor costs low to attract needed capital.  For example, El Salvador, a member nation of the International Labor Organization (ILO), one of 5 nations that participate in the Central American Free Trade Agreement (CAFTA),

Image from laurizza

has particularly egregious violations of international labor standards including discrimination against women, the worst forms of child labor and the “violation of the fundamental rights of freedom of association and collective bargaining” (Monterrosa, 2004, p. 46).  Countries with poor economies, high unemployment and free trade agreements make attractive targets for manufacturing investment, particularly when coupled with a pro-business environment that discourages labor unions and lacks effective enforcement of labor laws; the low labor costs are simply too attractive to pass up.  Large infusions of capital for new manufacturing investments can perpetuate pervasive labor problems like exploitation of women and children, low wages and occupational safety issues.

An Example: From a Sweatshop in El Salvador to CSU

            Two years after CAFTA was signed into law, Hanes Brands, a U.S. based maker of apparel across numerous brands, including the Champion Brand, announced the acquisition of the textile manufacturing operations of Industrias Duraflex, El Salvador, in order to continue to lower global supply chain costs (HanesBrands, 2007).  Hanes Brands, has been implicated in child labor violations in Bangladesh (Kernaghan, 2006), while in the Dominican Republic, Hanes used “a range of illegal means to thwart workers’ efforts to exercise their associational rights” (Worker Rights Consortium, 2007, p. 3).  A May 2009 report from the Washington Office on Latin America (WOLA) found continued institutional weakness and pervasive impunity in the enforcement of labor rights post-CAFTA in countries like El Salvador and cited numerous labor violations by Hanes Brands (2009).  Companies like Hanes Brands are able to operate largely with impunity in free trade zones, ignoring ILO labor standards and local labor laws while being applauded by the investors for their superior business management.  Meanwhile, Colorado State University, is selling CSU-branded Hanes merchandise to students and helping to support El Salvador’s sweatshop economy.

This shirt is made in El Salvador

How are we to begin to solve the labor problems associated with globalization when we reward the worst abusers with profit?

Fair Trade versus Free Trade

Free trade agreements have done much to advance the cause of trade and little to advance the cause of workers rights.  A move towards fair trade, with a linkage between international trade and basic labor standards, would do much to level the competitive labor field while improving justice (Barry & Reddy, 2005).  Linkage may also have the effect of improving wages and decreasing poverty (Barry & Reddy, 2005).  Upcoming trade agreements with Columbia and Peru are including more provisions for improved labor standards, although still may fall short in funding for enforcement projects (Washington Office on Latin America, 2009).

Improve Educated Consumer Choice

Information on ethical choices for purchased goods should be readily available to U.S. consumers whose current purchasing decisions reward corporations that exploit workers.  While there is information available for those who choose to do the research, it appears to be fragmented and lacks an appropriate framework to make it easy for a consumer to make an ethical decision.  Perhaps, were products labeled as “ethically manufactured” in the same way organic food is labeled “organic”, consumers could make an informed decision.  That knowledge would certainly have prevented my purchase of the CSU-Global apparel.

Conclusion

            The U.S. government, corporations, and consumers are equally culpable in the continued exploitation of workers and specifically the most vulnerable workers, women and children.  There are many factors contributing to the ongoing exploitation of women and children in the developing world.  Major factors include capitalist motives of growth and profit, free trade agreements that do not include provisions to enforce basic labor standards, the appeal of cheap labor and lack of regulatory standards in the developing world, and the need of developing world countries for capital investment to create economic stimulation.  These factors help create a vicious cycle where U.S companies infuse large amounts of capital into developing economies to take advantage of the opportunity of free trade and cheap labor; while the governments of developing countries allow an environment hostile to labor to perpetuate continued exploitation to attract capital investment.  It is the height of hypocrisy that the U.S. government, corporations, and workers, that insist on basic labor standards inside the U.S., have systematically help deny workers in the developing world the same basic rights.

References

Barry, C., & Reddy, S. G. (2005). Just Linkage: International Trade and Labor Standards (pp. 122). New York: Columbia University.

Collier, P., Dollar, D., & World Bank. (2002). Globalization, growth, and poverty : building an inclusive world economy. Washington, DC New York, N.Y.: World Bank; Oxford University Press.

Griggs, A. (2011, March 24). Triangle’s Fire Still Burns. Labor Notes. Retrieved May 29, 2011, from labornotes.org/2011/03/triangle’s-fire-still-burns

Hammadi, S., & Taylor, M. (2010, December 14).  Workers jump to their deaths as fire engulfs factory making clothes for Gap | World news | guardian.co.uk .  Latest news, comment and reviews from the Guardian | guardian.co.uk . Retrieved May 29, 2011, from http://www.guardian.co.uk/world/2010/dec/14/bangladesh-clothes-factory-workers-jump-to-death

HanesBrands. (2007, September 6). Hanesbrands Inc : Hanesbrands Inc. Acquires Textile Plant in El Salvador Capping Successful First Year as an Independent Company. Stock Market Quotes and Financial News | 4-Traders. Retrieved May 30, 2011, from http://www.4-traders.com/HANESBRANDS-INC-31267/news/HANESBRANDS-INC-Hanesbrands-Inc-Acquires-Textile-Plant-in-El-Salvador-Capping-Successful-First-Year–411680/

Hassoun, N. (2008). Free trade, poverty and the environment. Public Affairs Quarterly, 22(4), 353 – 380.

Hodson, R., & Sullivan, T. A. (2008). The social organization of work (4th ed.). Belmont, CA: Wadsworth.

Kernaghan, C. (2006, October 24). Child Labor Is Back: Children Again Sewing Clothing for Wal-Mart, Hanes and Other U.S. Companies. Common Dreams. Retrieved May 29, 2011, from http://www.commondreams.org/news2006/1024-01.htm

Mcclear, S. (2005, March 1). ZCommunications | Race to Bottom for Garment Workers by Sheila Mcclear | ZMagazine Article. Z Communications. Retrieved May 29, 2011, from http://www.zcommunications.org/race-to-bottom-for-garment-workers-by-sheila-mcclear

Monterrosa, A. l. E. n. C. (2004). LEGAL, POLITICAL AND PRACTICAL OBSTACLES TO THE ENFORCEMENT OF LABOR LAWS IN EL SALVADOR Fundamental Labor Rights in Central America, Latin America and the Caribbean (pp. 51). Washington DC: International Labor Rights Fund.

Washington Office on Latin America. (2009). DR-CAFTA and Worker’s Rights: Moving from Paper to Practice (pp. 28). Washington DC: WOLA.

Worker Rights Consortium. (2007). WRC ASSESSMENT re TOS DOMINICANA (DOMINICAN REPUBLIC)

FINDINGS AND RECOMMENDATIONS. Washington DC: Workers Rights Consortium.

 


Out of a Job: Offshore Labor, Outsourcing or Something Else Entirely?


Image from: vlima.com

As the United States economy rebounds from the effects of the latest recession, many in the media are calling the recovery another jobless recovery, citing the growth of the gross domestic product coupled with a high unemployment rate.  Both the media and politicians frequently suggest that the trend to outsource manufacturing and move service jobs offshore is the culprit for our economic woes.  As a result, legislators are attempting to stem the tide of offshore labor and outsourcing through protectionist policies that mandate the use of American goods and services, tax corporations that use offshore resources or other draconian measures (Sealover, 2011).  Both the media and politicians are spending their time and energy on the wrong problem.  According to some estimates, offshored jobs will only make up 2% of the jobs lost by 15 million Americans annually (Lael & Robert, 2004).  If outsourcing and offshore labor are not the cause of job loss, who or what is the real culprit?  In short, the culprit is good-old-fashioned, American know-how.

Since before the creation of the Computing- Tabulating- Recording Company in 1911, the predecessor to IBM (“IBM Archives: 1900s,”), businesses in the United States have sought the means to improve business performance through the use of technology.  From advanced robotics and computers on the factory floor to self-service kiosks at airports and grocery stores, automation has displaced far more United States workers than have migrated offshore (Collins & Ryan, 2007).   Daniel Drezner, Associate Professor of Political Science at the University of Chicago also sees technology innovation as the root cause (2004):

There is no denying that the number of manufacturing jobs has fallen dramatically in recent years, but this has very little do with outsourcing and almost everything to do with technological innovation. As with agriculture a century ago, productivity gains have outstripped demand, so fewer and fewer workers are needed for manufacturing. (p. 27)

Former Secretary of Labor, Robert Reich described a tour taken at a U.S. factory, where the entire plant was run by two employees instructing more than 400 robots on the factory floor (Reich, 2009).

The capitalistic process of creative destruction, first described by Engels and Marx is alive and well as new industries consume the flesh of the old (Marx & Engels, 1974).  For example, the newspaper business is a shadow of its former self because of Internet technologies.  It would stand to reason that if millions of jobs and whole industries were destroyed via the relentless advance of technology throughout the last 30 years, then the total number of jobs in the United States would be shrinking.  Yet, even given the current unemployment rate of 9.6% for 2010, the United States has added nearly 47 million jobs over the last 30 years of technology innovation and achievement; therefore additional contributing factors are likely at work (Bureau of Labor Statistics, 2011).

“Historically, the number of jobs has closely followed the growth of the labor force, despite major increases in foreign trade and the advent of a host of new job-displacing technologies” (Lael & Robert, 2004, p. 3).  U.S. Bureau of Labor Statistics historical data for the since 1980 confirms that the labor force has grown at an annual rate of 1.18% while the number of employed workers has grown at a corresponding rate of 1.09% (Bureau of Labor Statistics, 2011).  “When the U.S. economy gets back on track, many routine jobs won’t be returning–but new jobs will take their place. A quarter of all Americans now work in jobs that weren’t listed in the Census Bureau’s occupation codes in 1967” (Reich, 2009).

It is in the nature of journalists to make the public aware of problems.  Equally so, it is in the nature of politicians to attempt legislative solutions.  Henry Louis Mencken once wrote, “There is always an easy solution to every human problem—neat, plausible, and wrong” (Mencken, 1949, p. 443).  The backlash against offshore and outsourcing is the classic example of focusing on the wrong problem.  Instead of focusing on the relatively few jobs moving to lower cost labor pools, the United States should focus on quickly retraining workers displaced because of innovation.  So the next time your hear the media blast the evils of outsourcing or your local politician suggest some new form of protectionist policy to prevent the use of offshore labor; picture them as the Dutch boy with a finger in the dike, trying to stem the tide of innovation, progress and good-old-fashioned, American know-how.

References

Bureau of Labor Statistics, U. S. (2011). Employment status of the civilian noninstitutional population, 1940 to date. In cpsaat1.pdf (Ed.). Washington D.C.: United States Department of Labor.

Collins, D., T. , & Ryan, M. H. (2007). The strategic implications of technology on job loss. Academy of Strategic Management Journal, 6, 27.

Drezner, D. W. (2004). The outsourcing bogeyman. [Article]. Foreign Affairs, 83(3), 22-34.

. IBM Archives: 1900s. IBM – United States  Retrieved May 11, 2011, from http://www-03.ibm.com/ibm/history/history/decade_1900.html

Lael, B., & Robert, E. L. (2004). Services offshoring: Bane or boon and what to do? Brookings Policy Brief(132), 3.

Marx, K., & Engels, F. (1974). The Communist manifesto. Belmont, Mass.: American Opinion.

Mencken, H. L. (1949). A Mencken chrestomathy ([1st ed.). New York,: A. A. Knopf.

Reich, R. B. (2009). Manufacturing jobs are never coming back. Forbes. Retrieved from Forbes.com website: http://www.forbes.com/2009/05/28/robert-reich-manufacturing-business-economy.html

Sealover, E. (2011). Colorado House kills bill about overseas jobs. Denver Business Journal. Retrieved from Denver Business Journal website: http://www.bizjournals.com/denver/news/2011/05/04/house-kills-bill-about-overseas-jobs.html

 

 


Movements for Social Change in an Integrated Global Economy


Image by jaybergesen

Income inequality between the rich and the poor continues to be a significant concern in the United States, prompting national headlines and serious political debate regarding governmental policy.  Historically, economies based on capitalism tend to have a pro-business stance, implementing pro-business policies to spur economic growth (Zinn, 2010).  The typical role of the labor union has been to help improve economic equality between workers and the companies that employ them; however, unions have also helped their members pursue political action and influence the electoral process to achieve their aims as well (Hodson & Sullivan, 2008).  Beyond unions, non-governmental organizations also pursue political action to address broad social issues like income inequality.   Increasingly, both unions and NGOs are spanning national boundaries to deal with inequality issues that effect workers due to the increased influence of multinational corporations and the issues that arise from the globalization of work and trade.  As NGOs and unions grow beyond national boundaries, what advantages or disadvantages are at play, that influences their effectiveness?  How beneficial are NGO programs that attempt to deal with income inequality issues?

The rise of large multinational corporations has resulted in a situation where, “two hundred of that largest corporations control over 80 percent of the assets of the Western world” (Hodson & Sullivan, 2008, p. 388).  Multinationals have tremendous influence in both their home countries and the less developed countries where many plants are located.  Additionally, multinationals have a single duty or aim, which is “simply to maximize financial returns for investors” (Bibby, 2004, p. 16).  Their nearly singular focus on maximizing financial returns has led work being exported to countries that have lower labor costs and in many cases do not afford the same legal protections for workers as developed countries.  For example, child labor produces goods in sweatshops located in developing countries; goods that make their way into the supply chains of major multinational retailers (McDougall, 2008).  In addition, when work moves to developing countries, there is an impact on the workers in developed countries that lose their jobs to lower cost labor pools; namely costs that are transferred to the public sector like unemployment or retraining for workers (Bibby, 2004).

To more effectively deal with issues raised by multinationals operating in an integrated global economy, there are a growing number of international labor organizations including UNI Global Union, a global union that represents 900 trade unions and 20 million workers (“UNI Global Union,” 2011).  There are several advantages in using a global, federated approach to labor unions, namely a larger pool of workers that provide the basis for union influence, greater coordination on issues that span national boundaries and the resulting ability to influence the policy and business decisions of large multinationals.  The most significant disadvantage to a global, federated approach to unions is the increased scope and complexity of problem that arises from the requirement to represent a large diverse constituency with diverse needs.  For instance, in the case of outsourced jobs, the recipients of new jobs may not appreciate interference, while the workers whose jobs are moved may desire intervention.  Therefore, global unions are required to focus on larger policy issues like poverty, equality, and exploitation; and do so by negotiating principle-based, framework agreements (“UNI Global Union,” 2011).

In their focus on policy issues, global unions are much like NGOs that focus on income inequality, although NGOs like results.org, United for a Fair Economy (UFE), and inequality.org tend to focus on programs that seek to enable and build grassroots movements, educate people on inequality issues and advocate policy positions, particularly on issues of taxation.  As an example, UFE has a projects that advocate for the reintroduction of the estate tax as a mechanism to continue funding of programs to benefit the poor (“Estate and Federal Taxes | United for a Fair Economy,” 2011).  Should UFE advocate a successful policy change and influence estate tax legislation to garner additional tax revenues to continue or grow funding for government benefits programs, there could be a positive impact on low-wage workers, providing supplement benefits that help those workers survive; however, it is a significant causal chain between UFE influence and benefits being provided to workers.

Global labor unions and income inequality NGOs are needed organizations that serve to fill the representation gap left by pro-business governments and large multinationals that operate strictly on the profit motive.  Both seek to educate people and advocate for change to address a growing income gap, while global labor unions actively seek to negotiate fundamental workers rights with large multinationals.  However, neither is well suited to address individual or regional workers issues.  As a result, many organizations seek to operate on the principles of federation and collaboration, or as representatives of UNI Global Union suggest, “Act locally, organize globally” (Bibby, 2004, p. 25).

 

 

References

Bibby, A. (2004). The Global Mobiity Revolution. In U. N. International (Ed.), (pp. 25).

. Estate and Federal Taxes | United for a Fair Economy. (2011)  Retrieved 22 May, 2011, from http://faireconomy.org/estatetax

Hodson, R., & Sullivan, T. A. (2008). The social organization of work (4th ed.). Belmont, CA: Wadsworth.

McDougall, D. (2008). Child sweatshop shame threates Gap’s ethical image. The Observer. Retrieved from guardian.co.uk website: http://www.guardian.co.uk/business/2007/oct/28/ethicalbusiness.india

. UNI Global Union. (2011, 20 May 2011)  Retrieved 22 May, 2011, from http://www.uniglobalunion.org/Apps/iportal.nsf/pages/homepageEn

Zinn, H. (2010). The Twentieth Century : a people’s history. New York, NY: MJF Books.