A new history of Facebook portrays the company's founder as an idealist devoted to the cause of total transparency. But the digital revolutionaries may not understand their own rhetoric, writes Evgeny Morozov
It used to be that highly idealistic young people - those starry-eyed mavericks burning to change the world - were attracted to studying politics, learning their Trotsky and Gramsci, and dreaming of the worldwide triumph of justice, if not equality.
What could seem more quaint today? In our innovation-obsessed society, political science no longer commands the respect of adolescent revolutionaries, who would rather become venture capitalists than public intellectuals. Having abandoned their Molotov cocktails for cans of Red Bull, they flock to computer science departments instead.
And for a very good reason: among recent social innovations, it is the development of the internet - rather than some new political ideology - that holds the greatest promise for reshaping how we live, vote and govern. Francis Fukuyama got it all wrong: history didn't end: it just took a temporary refuge in cyberspace.
The previous generation of digital visionaries, like Bill Gates and Steve Jobs, saw themselves as hackers fighting the system, before they launched their own multibillion-dollar empires. Their successors, having made their money much faster, still fashion themselves as genuine revolutionaries, with highly idealistic plans for the rest of us. They don't shun profits, but financial considerations often take a back seat to their ambitious agendas for social engineering.
Such rhetorical flourishes, particularly the growing buzz about "Internet freedom", are, of course, very helpful in creating a favorable political climate in Washington and Brussels: who wants to regulate the next Gutenberg or Edison? But the idealism emanating from Silicon Valley is not fake. Unfortunately, all too often it rests on a rather delusional reading of modern politics: Google's China gambit, where the company believed in its ability to outmaneuver the Communist Party and democratise the country by letting citizens search for whatever they want,is a case in point. The problem with all this digital hubris, usually wrapped in revolutionary rhetoric, is that it's matched by an uncanny ability to influence public life: today's technology giants are not just idealistic, they are well-armed.
No entity embodies this new revolutionary urge better than Facebook, the six-year-old behemoth that has come to dominate the world of social networking. The odds that it would succeed were tiny: Facebook was a late entrant into an already overcrowded market (remember Friendster?) while its main competitor, MySpace, had all of Rupert Murdoch's money to burn. Besides, a company run by nerdy college drop-outs sounds like the worst possible place to entrust one's private data.
Why did Facebook succeed? Not least because Mark Zuckerberg, the company's youthful founder, understood that in order to be popular, any social networking site needed to be a hormone stock exchange. And what better place to trade in hormones than a university campus? By initially limiting the site to college students, Facebook tapped into a market that was active, hip and very appealing to advertisers. Soon it was growing thanks to what economists call the network effect: the more users it had, the more useful it was, and the more incentives there were to join.
Facebook then took off globally, often with minimal effort from its headquarters in Palo Alto; before long the site was used for all kinds of dubious purposes, from killing time with the numerous games that have sprung up on its platform to joining Holocaust denial groups. (Facebook's management decided to let most of those stay). Other web entrepreneurs might have laughed at such serendipitous uses of their site and moved on, but Zuckerberg took Facebook's success to mean that the world had radically changed: the internet was poised to play a new and increasingly important role in our lives, and he was convinced his creature could spearhead that revolution.
According to The Facebook Effect, a new book by the technology reporter David Kirkpatrick, Zuckerberg is a strong believer in the benefits of transparency fostered by the Internet. "A more transparent world creates a better-governed world and a fairer world", Zuckerberg says. That this mission happens to be lucrative is just a coincidence. In Kirkpatrick's account, Facebook is a social phenomenon first and business phenomenon second, despite the fact that Zuckerberg, who navigated the company to its $15 billion-dollar valuation, has become the youngest self-made billionaire in history.
But if there is a tragic hitch to Zuckerberg's rise, it has less to do with his status as an accidental billionaire (to quote the title of another recent book about Facebook) than his role as an accidental revolutionary, one who lacks the intellectual grounding to wisely use the immense power he hass accrued. It's as if the president of a university "Save Darfur" club was appointed the UN envoy to the region.
Zuckerberg's refusal to acknowledge that there are negative sides to his transparency revolution is particularly glaring, if only for the banality of his excuses. His musings on politics would make even Sarah Palin blush: "These things [social networking sites] can really affect people's liberties and freedom, which is kind of the point of government." It gets worse on the subject of privacy. Zuckerberg believes that the internet will push us to be better, more honest citizens: "The days of you having a different image for your work friends or co-workers and for the other people you know are probably coming to an end pretty quickly". This is a good thing, he thinks, since "having two identities for yourself is an example of a lack of integrity".
But this is just plain wrong, even by Palo Alto standards. Those who feel it necessary to maintain two "identities" might remind Zuckerberg that old prejudices persist even in the most liberal societies. Being openly gay on Facebook, to take one example, is a luxury that people in more conservative countries (or families or offices) still can't afford. The digital revolutionaries may lack nuance, but they certainly excel at moralising.
Zuckerberg wants the world to acknowledge the revolutionary status of his company before it becomes subject to aggressive regulation, a possibility that looks increasingly likely. He often calls it a "utility", a rather risky move for any chief executive; akin, perhaps, to asking for more government oversight. But all this "utility" talk is not for nothing. Most utilities simply satisfy basic human needs; they don't create demand for them. Who would blame the electric company for climate change? They are just the middle man.
Facebook, too, wants to claim such privilege. Thanks to the internet, the world is becoming more social and people are sharing more information. According to Zuckerberg, Facebook is only facilitating what would be happening anyway. Like most digital revolutionaries, he holds technology in awe, seeing it as an autonomous force that can't be stopped or regulated. Such views are a dangerous amalgamation of social and technological determinism: Zuckerberg and his colleagues believe that neither human behaviour nor the manner in which technology unfolds can be altered (even Facebook's annual technology conference is called "f8" - read as "fate"). It's not surprising that there is no place for politics in the digital revolution: for its leaders, the state exists, if at all, merely to provide cheap broadband.
But such determinism is as dubious as the view that Facebook is an innocent and powerless player following rather than shaping privacy trends. The bouquet of barely visible behavioural modifications, ranging from narcissism to voyeurism, that the Facebook panopticon encourages would require the second coming of Michel Foucault to think through. It may very well be true that Facebook is making the society "more open" in some very limited sense of "openness", but surely it has other effects on public life. Of those Facebook's founders are conspicuously silent
Perhaps Zuckerberg is just confused about the social implications of his creation, for its intellectual complexity has outgrown his own. Alternatively, he is simply playing dumb, hoping that his talk of an impending transparency revolution will help to keep Facebook unregulated. And then there is the least plausible thesis, the one favoured by Kirkpatrick: Zuckerberg is a seer, and he peeped into the future and saw that privacy had become obsolete.
But even if the likes of Facebook do believe in the social usefulness of what they are doing, societies need more than their blind faith to assess such claims. The promises and perils of innovation need to be assessed through a value-laden prism of ethics. As it happens, this has been the bread and butter of philosophy and political science, the two disciplines that digital revolutionaries were quick to discard in favour of computer science. But one can't cook a revolution, even a digital one, out of bytes alone; ideas are still its key ingredient, and Zuckerberg's, unfortunately, seem dangerously half-baked.
Evgeny Morozov is a fellow at Georgetown University. His book about the internet and democracy will be published in November.
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
THE SPECS
Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Take Me Apart
Kelela
(Warp)
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
The%20Emperor%20and%20the%20Elephant
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3ESam%20Ottewill-Soulsby%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EPrinceton%20University%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPages%3A%20%3C%2Fstrong%3E392%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3EJuly%2011%3C%2Fp%3E%0A
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Section 375
Cast: Akshaye Khanna, Richa Chadha, Meera Chopra & Rahul Bhat
Director: Ajay Bahl
Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL
Rating: 3.5/5
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
UAE currency: the story behind the money in your pockets
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances