Centre for Digital Governance
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Why do local governments create and reform public service companies, given their uncertain economic benefits and potential damage to accountability and service transparency? Taking an extended transaction cost perspective, we argue that corporatization—the provision of public services by publicly owned companies—is a function of fiscal hardship, the decision maker’s economic orientation and the level of operator transparency. Using a two-way fixed effects regression, we test this expectation on 680 investment reports of 34 German cities from 1998 to 2017, representing 11,062 year-corporatized entity combinations. We show that the drivers of corporatization are sensitive to the depth of local ownership analyzed. In doing so, we highlight the theoretical need and potential for conceptual differentiation between ownership levels along a corporation’s lineage. Exploiting the data’s panel structure, we also find that the intensity of corporatization has heightened since the late 1990s, largely due to increasingly complex corporate structures of indirect ownership.
Interdependence is typically regarded as the cause of inter-organizational collaboration. But it is also a consequence. Collaboration itself creates new interdependence as partners become more entwined in one another’s operations and experience the vetoes, compromises, delays, and risks inherent in joint working. This paradox – mitigating one set of interdependencies by creating another – renders collaborative relations inherently unstable. Dissolution may occur if “ex-post” interdependence becomes more troublesome than the original “ex-ante” trigger for the partnership. We test this proposition through comparative analysis of 13 sustained, aborted, and dissolved inter-municipal cooperations in English local government. Ex-post interdependence was most pronounced in those partnerships that ended in dissolution, and informed the design of replacement arrangements. It was also a contributory factor in the abortive cases. But ex-post interdependence was minimized in the group of sustained collaborations by management actions that streamlined the coordination burden imposed by joint working. These findings have implications for partnership design, the collaborator’s skillset, and theories of collaborative public management.
KI und datengesteuerte Kampagnen: Eine Diskussion der Rolle generativer KI im politischen Wahlkampf
(2023)
Digital technologies have substantial environmental impacts. The EU’s 2022 Digital Services Act (DSA) requires the largest platforms and search engines to regularly assess “systemic risks” to various social interests – including public health, physical wellbeing, security, and fundamental rights – and to reasonably and proportionately mitigate these risks. Climate change and other escalating environmental crises severely threaten these interests. Accordingly, this policy brief argues that the DSA requires these companies to take reasonable measures to reduce their environmental impacts.
This should notably include following best practices to minimise energy and water usage, including “sustainability by design” obligations to pursue less energy- and resource-intensive technologies, design choices, and business practices wherever possible. It should also include measures addressing platforms’ indirect environmental impacts, such as the facilitation of environmentally-damaging behaviour by third-party businesses. Since the DSA’s risk mitigation obligations apply specifically to the largest platforms – which exercise significant influence over broader technological and commercial ecosystems – regulatory pressure on these companies to take such measures could have outsized environmental benefits.
This policy brief by Rachel Griffin, PhD candidate at Sciences Po Law School, offers a legal analysis of the DSA’s relevance to environmental policy and explains why environmental risks are within its scope. It then outlines appropriate measures to mitigate platforms’ direct and indirect environmental impacts. It concludes with recommendations for platform companies, regulators, and civil society on how to realise the Digital Services Act’s potential to help secure a more sustainable tech industry.
Whilst social media platforms provide global communication environments, these platforms are not primarily designed for political debates. This may have adverse effects on democracy and contribute to democratic fragmentation. This dissertation project investigates the role of social media platforms as potential accelerators of fragmentation in established democracies. The overarching question of this dissertation explores to what extent social media platforms may contribute to fragmentation that may result in the erosion of democracy. This dissertation comprises three articles focusing on three political arenas 1) political campaigns, 2) protest movements, and 3) democratic institutions.
The first paper investigates the polarisation of online political behaviour on Twitter in democratic election campaigns. The analysis is based on Twitter data of German political parties and election hashtags during the final week of the 2017 and 2021 German Federal elections. The study’s findings suggest that the far-right party AfD seeks to polarise online discourse as a strategy and that far-right online partisans may influence the public reception of politicians and established parties.
The second paper examines the formation of protest movements on Twitter during the Covid-19 pandemic in the United Kingdom. The study monitors two established conspiracy narratives and their communities on Twitter, the anti-vaccination and anti-5G communities, before and during the first UK lockdown. The study finds that, despite content moderation efforts by Twitter, conspiracy groups were able to proliferate their messages and influence broader public discourses on Twitter, such as #Lockdown in the United Kingdom. The findings underline social platforms' potential for protest formation that can result in disinformed social movements.
The third paper inspects social platform companies’ mimicking of democratic institutions like Meta’s oversight board for content decisions that may erode existing democratic institutions. The study traces the emergence of the supreme court metaphor for Meta’s oversight board and its use in the US News discourse. The findings emphasise how private organisations and the use of constitutional metaphors can erode the legitimacy of supreme courts and other democratic institutions.
The dissertation’s findings imply that social media platforms, besides their democratically desirable function for democratic participation and deliberative potentials, contribute to democratic fragmentation in the inspected arenas of political campaigns, disinformed protest movements and democratic institutions. Thus, extended research data access is key to better understanding the social implications of social media platforms and finding adequate regulations of recommender systems, content moderation, and advertisement-based business models.
Social media campaigning is increasingly linked with anti-democratic outcomes, with concerns to date centring on paid adverts, rather than organic content produced by a new set of online political influencers. This study systematically compares voter exposure to these new campaign actors with candidate-sponsored ads, as well as established and alternative news sources during the US 2020 presidential election. Specifically, we examine how far higher exposure to these sources is linked with key trends identified in the democratic deconsolidation thesis. We use data from a national YouGov survey designed to measure digital campaign exposure to test our hypotheses. Findings show that while higher exposure to online political influencers is linked to more extremist opinions, followers are not disengaging from conventional politics. Exposure to paid political ads, however, is confirmed as a potential source of growing distrust in political institutions.
This dissertation explores corporatization–the provision of public services by publicly-owned companies–as a specific public management reform that has strongly been endorsed in the last decades. However, despite the significance of corporatization in public administration and the controversy over its viability as a strategy for enhancing public service provision, there is limited empirical research on its trajectory and associated effects. This dissertation fills this important gap in the literature by examining the causes, dynamics, and consequences of corporatization. It challenges the claim that we are witnessing a resurgence of the state in recent years, resulting in a pendulum shift from the private to the public sector. A mixed-methods approach is employed to analyze three original datasets from English and German local government contexts. Theoretical perspectives rooted in rational choice are complemented by those accounting for irrational ambiguity to capture the unique ambidexterity of corporatization. After clarifying the theoretical background in Chapter 1, this exploration unfolds across three empirical chapters. Chapter 2 investigates what drives corporatization. It reveals that ownership structures in corporatization have become increasingly complex and political–rather than economic–incentives may explain shifts toward indirect municipal ownership. Chapter 3 examines what causes corporatization to reverse. It shows that a return of services to the core local government after a company closes is less likely than other forms of service provision, while the type of service is the factor that matters most for termination decisions. Chapter 4 analyzes how local governments experience and cope with reverse corporatization. Local governments and their employees evidently and mutually impact the return process, which can induce private sector-informed change within the bureaucracy, albeit with limited transformative power. Ultimately, this dissertation finds no clear evidence of a pendulum shift toward the local public sector. This conclusion follows from conceptual and empirical differentiation and depends on how corporatization is framed, as well as on the specific country, service type, and dimension of public influence considered. It also suggests that the notion of the pendulum shift needs reevaluation. For practitioners, this holds several implications that encourage optimism about reform, and advise against an arbitrary approach to diversifying costs.
The European Union (EU) has been leading the world with its influential digital regulation. However, the EU’s legislative process is sufficiently complex and careful that some national legislation clearly influenced by the EU’s AI Regulation is already in place in other countries, before the law has even been finalized in the EU. Meanwhile, other states and regions are just beginning to develop AI policy. For both the EU and such others, we here describe the outcomes of the first round of legislative action by one of the EU’s two legislative bodies, the European Parliament, in terms of modifying the Artificial Intelligence Act. The Parliament has introduced a number of changes we consider to be enormously important, some in a very good way, and some in a very bad way. At stake is whether the AI Act really brings the power and strength of product law to continuously scale improved practice on products in the EU with intelligent components, or whether the law becomes window-dressing aimed only at attacking a few elite actors post hoc. We describe here the EU process, the changes and our recommendations.
Concerns over online hatespeech have prompted governments to strengthen social media governance. However, claims by policy-makers and political activists regarding the effectiveness and likely consequences of legal regulations remain largely untested. We rely on qualitative interviews and two expert surveys to examine the behavior of public relations professionals in response to online hatespeech when having the option of using the new user-complaint mechanism under the German Network Enforcement Act (NetzDG). Our findings reveal that strategies depend on whether professionals work at public sector institutions, business, or civil society organizations and political parties. Public sector institutions are likely to report to the platform, but not under NetzDG. Civil society organizations are likely to choose content moderation, counterspeech, and other forms of intervention. Businesses deploy a wide range of strategies. In practice, Germany's procedural approach relying on user-complaint mechanisms to deal with online hatespeech is not used by experts as a means to combat online harassment.
The EU Digital Service Acts signals a move away from self-regulation towards co-regulation of social media platforms within the European Union. To address online harms and rising platform power the DSA clarifies responsibilities of platforms and outlines a new technology regulatory framework to increase oversight. One key oversight instrument constitutes Article 40 of the DSA, which lays out data access for vetted researchers, who add value to regulators and the broader public as creators of knowledge, educators, advisors, innovators, and watchdogs. Currently, the EU Commission and national governments make important decisions regarding Digital Service Coordinators (DSCs) that play a key role in implementation. Based on expertise on European public administration and political science we lay out key challenges and success factors of DSCs that will play a role in promoting successful cooperation between DSCs and researchers. We provide three recommendations: First, we recommend to strengthen transfer of scientific knowledge into policy-making by processing publicly accessible publications within public administrative bodies. To this end, capacities of DSCs need to be increased. In addition, we also point towards the database of vetted researchers collected by the Board of DSCs as important resource in order to strengthen knowledge transfer. Second, the DSC network requires agile institutions with fast response time in order to enable researchers to play a constructive role in implementation. This also includes institutional procedures between DSCs and the Intermediary Body and Data Protection Agencies. To avoid delay in implementation agile institution-building needs to start now. Finally, institutional safeguards will help to avoid strategic choice of companies of the DSC of establishment. At the same time, the Irish DSC's capacity should be strengthened compared to other national DSCs since most large intermediary services providers have their European headquarters in Ireland.