Facing facebook's failure - Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools - Techonomy
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FALL 2018 facing facebook’s failure Plus: The (Browser) Cookie That Ate the World Smartphones Threaten Our Schools Also, some good news: Companies Striving $15 USD to Do Right
Life-changing technology for a healthier world. At Johnson & Johnson, we believe technology has the power to transform the delivery of health care around the world. That’s why we are a proud sponsor of Techonomy. Because changing health care changes everything. © Johnson & Johnson Services, Inc. 2018
1 Techonomists Take Center Stage Arati Prabhakar Bernard Tyson Padmasree Warrior Marc Benioff Jack Dorsey Stacy Brown-Philpot Mark Zuckerberg James Park Patrick Collison John Chambers Jessica Rosenworcel Sen. Cory Booker Marissa Mayer Peter Thiel Jaron Lanier Bill Gurley Techonomy has a history of bringing together eminent leaders for deep conversation about how tech alters the world, and how we can all be more effective. “Harnessing tech for responsible growth” is our theme this year, reflecting our passion for a better, fairer, more sustainable and inclusive world. Be a Techonomist. Join the conversation online at www.techonomy.com and at our event in New York City, May 14 & 15, 2019. TECHONOMY _ 2018
3 Meet Team Techonomy We work steps from Times Square, a place where you can find people from just about anywhere in the world. It’s the perfect home for Techonomy Media. We want to see the world through as many different lenses as we can as we seek to understand how the world is changing and how we can help make it better. Our mission—at our events, online, and in print—is to infuse more humane thinking into technology and busi- ness. Let’s create responsible growth: thinking through the impact of emerging tech, the potential of business to drive progress, and the conse- quences of getting the choices wrong. KIRSTEN CLUTHE PROGRAM DIRECTOR CAITLIN HAMILTON DIRECTOR OF EXECUTIVE RELATIONS AUDRA HEINRICHS EXECUTIVE ASSISTANT JOSH KAMPEL CEO MARY KAN D’ANDREA EDITORIAL COORDINATOR DAVID KIRKPATRICK FOUNDER/EDITOR-IN-CHIEF PHOTO: REBECCA GREENFIELD WINNIE MARION SUMMER INTERN JEFF PUNDYK CHIEF STRATEGY OFFICER/ EDITORIAL DIRECTOR TECHONOMY _ 2018
4 CONTENTS he (Browser)Cookie that Ate the World 22 T by Janet Guyon ill Technology Kill Education? by Catherine Steiner-Adair 28 W 32 Can Companies Be Good? by Jeff Pundyk 36 What’s the Purpose of Purpose? by Mike Arauz ashington Just Doesn’t Grok Tech by Tam Harbert 38 W ech Giants Aim for Healthcare 50 T by Abigail Christopher p 28 p 38 ON THE COVER 6 7 Andela Brings Is Yeast the FALL 2018 African Tech Talent Future of To The World Manufacturing? 9 10 At Novozymes, Science Fiction Sustainable Invades facing facebook’s Development Is the C-suite failure Plus: The (Browser) Cookie That Ate the World Good Business Smartphones Threaten Our Schools Also, some good news: Companies Striving $15 USD to Do Right 02 Techonomy’s Team Cover by Rohingya Muslims flee violence in 12 Voices from Techonomy NYC 2018 Mike McQuade Myanmar. 14 Offstage at Techonomy NYC Publication Design by Rob Hewitt 54 Techonomy NYC (our May conference) TECHONOMY _ 2018
EDITOR’S LET TER 5 FA C E B O O K FA I L : SPECIAL SECTION 16 Facing Facebook’s Failures Tech, for Good or Bad by David Kirkpatrick 20 An Iranian Rights Campaign Struggles With Social Media OUR LENS HERE IS TECH-DRIVEN CHANGE, by Kambiz Foroohar but these days it’s easy to get blinded and lose our way. In some ways much of 21 Five Ways Facebook Can Do the tech industry seems to have done that, as this issue of Techonomy Magazine Right by Its Next Billion demonstrates. by Bhaskar Chakravorti Our belief is that tech is the key to more rapid progress for mankind, and for achieving the U.N.’s Sustainable p 20 Development Goals for 2030. But alongside transformative progress, tech has also caused serious social harm. Facebook made terrible errors it is only belatedly trying to remedy. And those smartphones that have transformed our daily lives? They are also putting our schools in crisis. Since government fails to understand tech, effective legislative remedies seem unlikely. You’ll read about all these topics. Still, business is starting to step into the breach, as our own Jeff Pundyk ex- plains. And articles here about companies like Amyris, Andela, and Novozymes may restore your hope for humanity’s future, hard as that is these days. We’re also proud to publish ideals-driven articles by leaders from our new partners at Copperfield Advisory, PA RT N E R I N S I G H T S Ascent Leadership Networks, and The Second Shift. We have now become part of Clarim Holdings. So we’re entering a new phase, more dedicated than ever 43 Resilience is Key to Modern Leadership to the proposition that tech and business must be forces for good. 46 Fake News is a Business Crisis Too Enjoy our magazine, come to our conferences, and send us your ideas, so we can improve and learn together. 47 Tech Bridges the Gender Equality Gap 48 The Marriage of Power and Leadership DAVID KIRKPATRICK, editor-in-chief TECHONOMY _ 2018
6 C O M PA N I E S D O I N G G O O D “BRILLIANCE IS EVENLY DISTRIB- UTED,” said Andela co-founder Christina Sass onstage at Techonomy NYC in May 2018. She was talking about people. Her company aims to be the answer to a software development and programming talent shortage, widening the search so employers can P H OTO : A N D E L A / M O H I N I U F E L I find employees in new places. In the process, Andela is creating economic opportunity in developing countries. According to Code.org and sta- tistics from The Conference Board, there are more than 544,000 open computing jobs in the United States, more positions than the nation’s universities and colleges can hope to Tolu Komolafe, one of Andela’s most senior developers and co-founder of the Ladies fill with recent graduates. Andela’s in Tech organization, at work in EPIC Tower in Lagos, Nigeria. response is to identify talented young people in Africa, train them in soft- budding developers are then con- part of our team.” ware development, and place them in tracted out to companies across the Andela has attracted $81 million jobs at companies around the world globe, working remotely. At times the in funding from investors including without requiring them to move. developers head to lengthy, on-site South African-based venture capital Andela offers a window into a visits at their contract companies in firm CRE Venture Capital, the Chan promising possible future for work: the United States, Europe, and else- Zuckerberg Initiative, and Spark a distributed workforce that is more where, building work relationships Capital, among others. And the diverse and creates economic oppor- and solidifying ties. company is swimming in qualified tunity where there was little before. Andela serves as the employer of applicants, enabling it to hire only Founded in 2014 and record but assigns each the most talented coders. It now has venture funded, Andela worker full-time to the more than 1,200 employees, many serves as a recruiter, filling Techonomy.com client. Some now have based in African urban hubs, includ- open developer roles at Christina Sass spoke at already worked for their ing Lagos, Nigeria; Nairobi, Kenya; partner companies. But it Techonomy NYC. companies for more than and Kampala, Uganda, with more to does so by turning to the You can see her talk two years. come. Andela’s Kigali, Rwanda office largely untapped talent here: techonomy.com/ Since July 2016, Andela is slated to open in January 2019. nyc18 pool of Africa, home to has partnered with The This company’s aspirations go some of the world’s most inter- Zebra, a car insurance comparison beyond its own profits. Andela hopes net-savvy populations and sophisti- site, which has brought 13 engineers that the jump-start it gives trainees cated tech enclaves. onto its team in Austin, Texas. “In will not only give them work experi- Using tests and boot camps, the addition to [their] technical contribu- ence but inspire them to found local company selects coders and pro- tions, they’ve also brought an energy or global startups of their own. grammers and then trains them for that is infectious,” Meetesh Karia, six months. These young coders CTO of The Zebra, says of the Andela MARY KAN D’ANDREA is Techonomy’s often have educational backgrounds engineers. “They’ve become a core editorial coordinator. in computer science, though they Andela Brings African generally lack the practical experience needed to turn their studies into a career. With Andela, they don’t get your usual workplace training experi- Tech Talent To The ence. On top of receiving a computer, salary, and professional training, the package includes subsidized housing Rest of The World and regular meals. The company’s by Mary Kan D’Andrea TECHONOMY _ 2018
C O M PA N I E S D O I N G G O O D 7 JOHN MELO BELIEVES THAT THE path to sustainable development is to create environmentally friendly products that are so appealing that demand forces the replacement of traditional manufacturing methods. He hopes this will eliminate pollu- tion and environmental degradation, as he builds synthetic genomics firm Amyris, where he is CEO. “For the average consumer in 10 years, P H OTO : C O U RT E SY O F A M Y R I S sustainably made products should become the new normal, and harmful products will be the exception.” Amyris achieved prominence in the genomics field long before consumers heard its name. The company’s first endeavor, funded by a $42.5 million grant in 2004 from the Bill & Melinda Gates Foundation, Amyris labs near Berkeley, California was to find an alternative means of producing an antimalarial drug that from the livers of sharks, led to the development of a sweetener based until then had required isolating launch of the company’s Biossance on natural sucrose but that has no chemicals from a rare tree. skincare line. “[It] has become the calories. “Your taste receptors think But the yields from that process fastest-growing skincare brand in you’re eating sugar,” Melo says. It had been unreliable. the U.S. by delivering may sound too good to be true, but Amyris’ solution offered a sustainably sourced Melo is confident Amyris has the Techonomy.com some of the first proof that moisturizer that is healthy science perfected. He says the product synthetic genomics—re-en- John Melo spoke at for the consumer,” says will start shipping commercially Techonomy NYC. You gineering the genomes of Melo. He claims the shift to this year. The hard part will be can see his talk here: living things to produce techonomy.com/nyc18 yeast-generated squalene scaling up manufacturing to create desired compounds in a is saving as many as 3 mil- thousands of tons per year in giant safe, reliable manufactur- lion sharks per year. vats of special yeast. ing process—could be commercially Synthetic genomics might sound “So why does biotech matter?” viable. Amyris scientists fine-tuned a like a niche field, but Melo says the asks Melo. “Because with biotech strain of yeast to produce artemisinic potential for creating more sustain- and fermentation you can have acid, a precursor component to the able products is huge. Strides in the sustainable and healthy products antimalarial drug. lab are helping to drive further prog- for everyone on the planet.” The yeast-derived compound went ress. Each new, sustainably grown to market in 2013. Since then, Melo product requires company scientists MEREDITH SALISBURY is a journalist estimates, steady availability of the to engineer and perfect a new strain focused on genomics and life sciences. drug has saved the lives of 1 million of yeast, but the time they take to do children each year, reducing the that is getting much shorter. DAVID KIRKPATRICK is Techonomy’s death toll by more than 60 percent. Now the company is finalizing editor-in-chief. Today, Amyris is working to ex- pand the portfolio of compounds its strains of yeast can generate. But its focus remains on products that have Is Yeast the Future of Manufacturing? traditionally been extracted from rare or difficult-to-access sources in nature. Yeast-based manufac- turing of squalene, a skin-softening Amyris is betting it is. emollient previously extracted by Meredith Salisbury and David Kirkpatrick TECHONOMY _ 2018
9 TO HEAR NOVOZYMES CEO Peder Holk Nielsen tell it, humans are on the verge of making the transition from a petroleum-powered era to what he calls the “Age of Biology.” The Danish company he leads focus- es on adapting enzymes for commer- cial utility, replacing manufacturing processes that previously relied on fossil fuels. “Through the use of nature’s own technology, we can produce a wide variety of bio-based chemicals, materials, pharmaceu- ticals, food, feed, and fuels,” Holk Nielsen says. “We will replace our Tremella mesenterica is a fungal par- Mycologists from Novozymes, Sara polluting past and oil dependence asite used to make enyzmes. Enzymes Landvik, left, and Mikako Sasa look with a green future based on renew- are used across a range of industries, for wood-degrading fungi on dead including in laundry detergents where trunks in Hareskoven Forest, near able inputs.” they enable low-temperature washing. Copenhagen. Novozymes’ enzymes It’s an audacious goal, but one originate from either bacteria or fungi. the company has already begun to C O M PA N I E S D O I N G G O O D demonstrate as feasible. An enzyme engineered by Novozymes scientists is now widely added to laundry detergent to make it possible to clean microbes that help plants grow, while world—they are also clear business fabrics without hot water. By reduc- using others to improve yields in drivers for the decades to come.” He ing the required water temperature animal husbandry and farming. All contends that more robust devel- from 140 degrees Fahrenheit to 80 this makes for good business: Novo- opment practices will lead to more degrees, Holk Nielsen says, this prod- zymes brought in $2.2 billion in 2017 sustainable societies, potentially uct alone has dramatically lowered revenue and employs nearly 6,500 helping to stabilize economies and the energy consumption needed for employees. environments. P H OTO : N O V OZ Y M E S / C A R ST E N S N E J B J E R G a common task. Depending on the The Novozymes agenda dovetails That outlook lets Holk Nielsen see power source, it also reduces gen- nicely with the United Nations’ Sus- potential where others see looming eration of carbon dioxide (CO2) that tainable Development Goals, which catastrophe. “Some of the world’s contributes to climate change. Holk Nielsen credits with helping most pressing challenges—climate Holk Nielsen estimates that in to establish “strong momentum in change, dwindling natural resources, total, the company’s products have the private sector” for innovative rising population—represent some of reduced global CO2 output by 76 approaches like his. “Increasingly, the biggest future business opportu- million tons. That’s the equivalent of companies are realizing that they nities,” he says. getting 35 million cars off the road. can do well—by doing good,” he says. Other Novozymes programs involve “We believe the Global Goals are not MEREDITH SALISBURY is a journalist boosting crop output by applying only necessary and important for the focused on genomics and life sciences. At Novozymes, Techonomy.com Sustainable Peder Holk Nielsen spoke at Techonomy NYC in Development Makes May 2018. You can see his talk here: techonomy.com/ nyc18 for Good Business by Meredith Salisbury TECHONOMY _ 2018
10 ST R AT E GY IN 1961, PRESIDENT JOHN F. KENNEDY called for a moon shot. Sensing a crisis in national confidence, he laid down a challenge: put Americans on the moon and return them safely to Earth before the end of the decade. Just a little more than eight years later, Apollo 11 landed on the moon. Kennedy’s call to action was a strat- egy that was rooted in science fiction. The idea of landing on the moon captured the national imagination precisely because it was so audacious, like something out of Flash Gordon. Now corporate and societal leaders need a similar aspirational mindset to inspire their organizations—and to help imagine a future that can seem unimaginable. They are turning to science fiction. “We’re all struggling with what will the future become and be like,” said Brenda Cooper, the CIO of the city of Kirkland, Washington, in a recent podcast. “Scenario planning is be- ginning to be written out as a science fiction story.” Cooper should know. She is also the author of nine science fiction and fantasy books. Technology is disrupting our notion of what’s possible in ways that would have seemed far-fetched only a short time ago. More and more, reality can be read as science fiction, and what seemed outlandish in the past can be seen as a portent of what has now actually happened. People first heard of the flip phone on Star Trek, the smartwatch in Dick Tracy Sunday comics and self-driv- ing (and self-cleaning) cars in Isaac Asimov and Arthur C. Clarke stories. Something like artificial intelligence goes back at least to 1872, in Samuel Butler’s novel Erewhon. Science Fiction The very term ‘moon shot’ has been adopted by Google and others to mean a project that addresses a Invades the C-suite huge problem or proposes a radical solution. It is meant to free employees to aspire to what might otherwise Faced with an unimaginable future, seem impossible. Google’s moon corporate strategists are drawing on their shots, some successful and some not, imaginations to help guide them. could come right out of science fiction: by Jeff Pundyk Illustration by Toma Vagner TECHONOMY _ 2018
ST R AT E GY 11 Google Glass and other augment- military is chiefly fighting “opera- The session was led by sci-fi writers ed-reality glasses, a balloon-based tions other than war,” it is critical who created a comic-book vision of internet service, driverless cars, an to reward creative thinking and the future meant to inspire Lowe’s ambitious neural network, and even a new ideas, he told a roomful of West executives. life extension project. Point cadets earlier this year. Leiter says executives have always “Great strategists dream about the And, of course, science fiction had to be futurists, but now technolo- future as part of their job,” says Mark does come to life. Customers at select gy is in the foreground of every strat- Leiter, a consultant and the former Lowe’s hardware and home equip- egy debate. He recently interviewed chief strategy officer for Nielsen. ment stores, for example, can now 45 fellow chief strategy officers in the “Their nightstand is stacked high enter the Holoroom, like something course of writing a book about strategy with books by futurists and science out of the sci-fi thriller Minority as business moves at breakneck speed. fiction writers. Strategy is where Report. Its purpose is a bit more “Many executives don’t feel they fiction meets nonfiction. We now just prosaic, though; Lowe’s interactive are futurists,” he says. “Yet when assume science fiction becomes real system aims to teach DIY skills to the future arrives, they are rarely faster than we imagine.” home remodelers and tinkerers. The surprised.” Science fiction-style storytelling, virtual reality tool emerged from Science fiction master Arthur Cooper says, can relieve the fear a Lowe’s strategy session aimed at C. Clarke famously said that “any of change—or at least animate the addressing a big opportunity: how sufficiently advanced technology is inevitability of change in ways that to win a piece of what the compa- indistinguishable from magic.” are engaging. That’s why Max Brooks, ny calculates is $70 billion in lost Perhaps, but Clarke also knew that the author of the zombie novel World spending when people reject a home with a little imagination we can make War Z, lectures at West Point’s Modern improvement project because they a pretty good guess at what that next War Institute. In a time when the U.S. cannot imagine how it will turn out. trick will be. ● From roofing to building materials, from waterproofing to aggregates, people around the world depend on Standard’s products to protect what matters most in their daily lives.
12 T EC H O N O M Y N YC 1 5 3 4 2 1. “Create your own opportu- 3. “[Airbnb is] taking a big 4. “We have made a world nities. Don’t wait for opportu- commitment and making a that is wealthy and a world nities to be handed to you.” big pledge to house 100,000 that is really teched up, and ANJALI SUD, CEO, Vimeo displaced people over the we’re destroying the planet.” next five years.” JEFFREY SACHS, Director, 2. “I’m going to start KIM RUBEY, Global Head of Center for Sustainable Devel- again…I’m not going to go Social Impact and Philanthropy, opment, Columbia University into voluntary or involuntary Airbnb retirement.” 5. “If you’re in San Francisco MARTIN SORRELL , S4 Capital or Silicon Valley, you should try to get a U-Haul…They’ve created a culture and a soci- ety that frankly isn’t open. It’s far too expensive, and it’s not what the future is going to look like.” More at Techonomy.com AMY NELSON, CEO, Venture for See more about the America conference including video at techonomy.com/nyc18 TECHONOMY _ 2018
T EC H O N O M Y N YC 13 7 8 6 6. “No one should be above 7. “I think we should all worry 8. ”What I try to do is decon- the law—no individual, no when a single company struct that myth that you get government, no company.” effectively owns the public to have it all, all at once.” BRAD SMITH, President and square of the 21st century.” GINA HADLEY, Co-Founder, Chief Legal Officer, Microsoft CHRIS HUGHES, Co-Founder, The Second Shift (which helps Economic Security Project executive women re-enter the (and Facebook co-founder) economy for part-time and temporary work) Voices on Tech, PHOTOS: REBECCA GREENFIELD Business, and Society at Techonomy NYC 2018 TECHONOMY _ 2018
Offstage at 14 Techonomy NYC Some of the best conversations are impromptu Author Rich Benjamin moderated T E C H O N O M Y N Y C , M AY 2 0 1 8 two sessions. Attendees joined speakers for an evening reception. Techonomy.com See more about the conference including video at techonomy. com/nyc18 PHOTOS: REBECCA GREENFIELD Conference host David Kirkpatrick talks leadership with Johnson & Johnson’s Healthcare expert Will Greene (foreground) Lowinn Kibbey at the speaker dinner. contributes frequently to Techonomy from his base in Singapore. He traveled across the world to participate in Techonomy NYC. TECHONOMY _ 2018
15 Advertising pioneer Martin Sorrell chats during a break with Merit Janow, dean of Columbia’s School of International and Public Affairs. T E C H O N O M Y N Y C , M AY 2 0 1 8 SELFIE: LER ATO MOTSAMAI Petrolink’s Lerato Motsamai snaps a selfie with presidential candidate Andrew Yang. The result is at right. Yang’s campaign centers around providing for displaced workers in an automated age. TECHONOMY _ 2018
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17 NEVER BEFORE HAS ONE COMPANY’S aggregating more power globally. as so critical to the future of my managerial failure had such a This is a very profitable company.” country. It is intertwined with devastating impact on the world. Facebook received repeated elections and democracy. It is the Facebook’s presence is truly warnings for at least six years primary driver of news and infor- global, as are the consequences from informed observers around mation. It has no equal here.” of its failure to anticipate how its the world that things were going There is tragedy and irony in platform could be misused and wrong. But it mostly disregarded this company’s history. Face- abused. But never before, either, them. Gaining more users in book empowers those who use has a single company been asked any and all geographies was the it. That’s why so many of us to fix a global political problem. company’s overarching priority, found its emergence heartening. Racists, autocrats, and purvey- and it succeeded. The service has (I wrote a generally laudatory ors of hate have found Facebook grown at an incredible pace. It is history in 2010, entitled The the perfect medium for peddling now a dominant medium of com- Facebook Effect.) But the compa- poison, normalizing it, and munications, typically the most ny’s leaders—particularly its gaining adherents. Facebook is dominant, in about 190 countries. all-powerful leader Mark Zucker- a broadcast platform for anyone, It expanded at full tilt into in- berg—have been so enamored of including those who would break numerable areas where it lacked how it gave ordinary people new the rules, fake the news, lie, and local expertise. But how could tools and contributed to building mislead the community. Societies it possibly ensure its rules were communities that they over- around the world are reeling from being followed when nobody at looked how much it also could the consequences. Politics and the company spoke the local lan- undermine or even destroy those democracy are under duress. And guage or understood the nuances communities. The company badly thus far, Facebook does not have of the local culture? It couldn’t. underestimated what it would an effective way to fight back. Yet Facebook suddenly became take to govern a “community” of What mystifies many is why what amounts to the global town 2.25 billion people. Facebook does Facebook did not act sooner. “I square. Sanjana Hattotuwa, engender connection, friendship, am disappointed in how slowly a longtime human rights and community building, and user they acted,” says Wael Ghonim, digital activist based in Colombo, empowerment for billions. But the Egyptian citizen who, as a Sri Lanka, is appalled at Face- that does not reduce the gravity of Google employee, helped catalyze book’s persistent failures, which the disastrous epidemic of misuse. the Facebook-driven revolt there have periodically led to chaos Finally, this year, Facebook during the Arab Spring in 2011. and bloodshed in his country. recognized just how badly its “They should have been paying But, he says, “I remain engaged platform was being abused by more attention as their system was with Facebook because I see it evil politicians and the worst facing facebook’s failure by David Kirkpatrick Illustration by Mike McQuade TECHONOMY _ 2018
18 FA C E B O O K ’ S FA I L U R E kind of rabble-rousers. The company had zero—zero— oversight capability Hattotuwa. “I get fucking pissed insists it is going all out to remedy on the platform in my language. I off when Sheryl Sandberg and the the weaknesses it has identified and started telling them that back then.” company constantly repeat that they improve oversight. Activists en- But Facebook didn’t listen, even were slow to respond. That suggests gaged in countering online hate and as Hattotuwa and the Centre for they had identified the problem and disinformation mostly agree that it is Policy Alternatives where he worked for some reason did not do what they trying hard to address the problems. began periodically issuing well-doc- should have. But I saw no response at But nobody except Mark Zuckerberg umented and detailed formal reports all until this past March. That to me is and Sheryl Sandberg seems to believe about system abuses. One in 2013 a moral failure.” the measures being adopted now are was on Islamophobia, a second in Asked about Hattotuwa saying sufficient. 2014 on extreme nationalism, and a Facebook didn’t remove the call to kill Facebook only finally began admit- third in 2015 on Facebook’s negative mothers and babies, Debbie Frost, who ting there was a serious problem after impact on Sri Lankan elections. “We for over a decade has headed Facebook the U.S. presidential elections, and never heard back from the company,” communications and public affairs even then only reluctantly, and slowly. Hattotuwa says. He was not alone outside the United States, acknowl- The public heat grew unbearable once in raising warnings. Other activists edged the company’s failure. “I can’t it became clear that false Russian and experts in Vietnam, the Philip- explain that to you,” she says. “I wish government-sponsored propaganda pines, India, the Balkans, and Mexico, we had done a better job and not been and paid advertising on Facebook had among other places, were warning so slow and had paid closer attention. flowed unimpeded, and may have even that Facebook was being weaponized. He’s exactly right. Only recently have helped alter the election’s outcome. “It was like giving knives to toddlers,” we been deploying the full weight of (The new book Cyberwar: How Russian says Hattotuwa. our integrity efforts to do a better job.” Hackers and Trolls Helped Elect a President Over time, he says, the company’s Sri Lanka was particularly vul- makes this argument.) The scrutiny response actually became worse nerable to voices of hate because of a of Congressional investigations, than nothing. By 2018 Facebook had history of ethnic division and a horrif- hearings, and the probing of Special finally hired at least some moderators ic recent civil war. But its experience Counsel Robert Mueller forced the in Sinhala, the language of the mostly was not unique. In Myanmar, India, company to pay attention. Buddhist people who constitute and Indonesia there have also been For all that, Facebook’s public rhet- Sri Lanka’s majority. But they were repeated incidents of ethnic violence oric has up until recently implied that not doing their job. A series of false and killings encouraged by incendi- this was primarily a U.S. problem. and incendiary posts on Facebook ary and dishonest posts on Facebook. In fact, it is a momentous crisis in demonized the country’s Muslim mi- And Facebook’s ungoverned just about every country. The service nority and helped precipitate a hor- platform has harmed society in is being manipulated by evildoers rific outbreak of ethnic fighting. “At another disturbing and parallel way. in many of the 133 languages in the height of the violence, a Facebook In country after country, dishonest, which the service operates. In many post called for a pregnant mother to corrupt, and anti-democratic political less-affluent countries a gigantic be killed—it was very explicit—‘cut parties and leaders have been coming number have come onto the inter- open her womb and kill her unborn to the fore, with few scruples about net for the first time only recently, children like dogs,’” says Hattotuwa. using any means to gain and retain on mobile phones, and are naively “We complained, and Facebook got power. People like Recep Erdogan in credulous when faced with digital back a couple of days later and said it Turkey, Rodrigo Duterte in the Phil- fiction. Facebook’s future growth will was perfectly fine. That said to us that ippines, Viktor Orban in Hungary, be greatest among the inexperienced not only was the company’s oversight and ultra-right or neo-fascist leaders and previously disconnected. (See insufficient, but that its moderators in Poland, Slovenia, Austria, and story on page 21.) were themselves racist.” elsewhere all are aggressive users of Hattotuwa has been involved Only when Hattotuwa and other Facebook, both in the electoral fray in both human rights and internet activists in Sri Lanka and other and once in office. Using both paid issues ever since he set up the first countries wrote a series of open advertising and unceasing propagan- Facebook page in South Asia devoted letters to Mark Zuckerberg in the da posts, such leaders and parties use to media, in 2007. “But after the spring of 2018, at the time of the U.S. Facebook to advance their agenda, civil war in Sri Lanka ended, around congressional hearings, did Facebook slander opponents, and typically seek 2012,” he says, “people began coming finally respond. “The company did to whip up a nationalist frenzy. onto the platform and using it to pro- not want to look at what was happen- To the company’s credit, it does not mote hate and harm. The company ing beyond user growth,” continues deny it has done a poor job prevent- TECHONOMY _ 2018
FA C E B O O K ’ S FA I L U R E 19 ing abuse. Facebook spokesperson But for all the progress, Facebook’s everything at Facebook to be on top Frost spent over an hour on the phone excessive caution in admitting mis- of all the content issues and security being confronted with many of these takes and taking aggressive remedies issues.” The reality is that given the points. She did not argue. “I accept has become a problem in itself, which resourcefulness of miscreants, this everything you’ve said. We can only undermines its credibility and raises will never be solved, which even he move forward and move quickly,” she came close to admitting. said. “There were gaps in our offering Abuse on Zuckerberg, as I know from numer- that made it very difficult for people ous and extensive interviews with him to understand our rules, for them to Facebook has since 2006, is meticulous and method- report things, and for us to effectively deal with the reports.” created a ical, and not prone to looking back at errors. Rather, he focuses on what’s Facebook is now hiring more con- tent reviewers, especially in countries momentous next. The evidence suggests he is putting this effort as a top priority. But where oversight failures until now crisis in just to continue battling the problems with have been grievous, like Sri Lanka and Myanmar. It has embarked on new about every necessary urgency will be extreme- ly expensive, and almost certainly ways to promote digital literacy and to educate users about the platform’s country. continue to reduce company earnings. Luckily for Facebook, advertisers still policies. (Previously, it hadn’t even have no better medium to target their had its community standards trans- serious questions about how fast messages at consumers. It will likely lated into many languages until years problems can be resolved. In her Sep- remain extremely profitable for some after use took off in those regions.) It tember testimony to the Senate Intel- time to come. has committed to increasing the num- ligence Committee, Sandberg bragged The last 150 years of global prog- ber of Sinhalese-language moderators about being able to combat fake news ress towards universal democracy in Sri Lanka sevenfold, though Hatto- and hate speech in 50 languages. That may be imperiled. But it’s not only tuwa complains the company will not sounds good, except that Facebook Facebook’s fault. And the company give his group their number, location, users speak 133 languages. The com- can’t fix the problems alone. Karen or even gender. In Sri Lanka, it tempo- pany’s own initial reports suggested Kornbluh served as U.S. ambassador rarily put its “community standards” that only 10 million Americans had to the Organization for Economic Co- at the top of every single user’s news seen fake Russian campaign ads and operation and Development (OECD) feed, in three languages. In Myanmar disinformation about the presiden- under President Barack Obama and it created a cartoon-style version of the tial election. It later upped the figure is now senior fellow for digital policy standards for people with low literacy. to 126 million. In Sri Lanka, it only at the Council on Foreign Relations. It’s taken similar measures in the responded to repeated complaints “The leaders of Facebook are being Philippines. To the extent that these about its role in ethnic violence in ear- asked by the market to generate help, it may deploy them in countries ly 2018 after the government actually growth and profits,” Kornbluh ex- and languages around the world. turned off the service in the entire plains, “but so far there’s no clear The company has made it easier to country. In Myanmar, it removed the ask from society or government to report abuse and to get a response. In ruling general’s Facebook account do anything different. Their motto Facebook Messenger in Myanmar, for for promoting ethnic hatred, but only of ‘move fast and break things’ made example, the company made it possi- after the United Nations had issued a sense for an internet that was a tiny ble for the first time to report abusive series of scathing reports and recom- piece of the economy and society. But group messages directly inside the mended the general be prosecuted at when our whole lives moved online, service. For political advertising, it the International Criminal Court. we needed to have a societal conversa- has in several countries introduced And some of Zuckerberg’s own tion. And we didn’t have that. Shame new transparency requirements claims have smacked of naivete, even on all of us. So the question, really, that make clear who placed the ads. self-congratulation. He has enormous is what is society going to do?” Let’s It has increased security for political confidence in the powers of artificial hope civil society, government, the pages. And it has set up what it calls intelligence to help govern speech tech industry, and Facebook can all a “war room,” so engineers and other and prevent abuse, and let’s hope he’s come together to find an answer. employees at the company’s head- right. But in a July interview with quarters in Menlo Park, California, Kara Swisher of Recode, he suggested DAVID KIRKPATRICK is can monitor and protect electoral that by the end of 2019 the company Techonomy’s editor-in-chief, and author campaigns around the world. will have been able to “fully retool of The Facebook Effect. TECHONOMY _ 2018
20 FA C E B O O K ’ S FA I L U R E One Human Rights Campaign’s Social Media Struggles by Kambiz Foroohar RIGHTS ACTIVISTS AROUND THE WORLD Facebook, has become the biggest civil track down women and arrest them. who use social media are frequently disobedience campaign in the Islamic (The identity of posters on the real on the receiving end of propaganda Republic’s history. Within two weeks it page is carefully protected.) Facebook campaigns, designed in most cases had 200,000 followers. A month later employees took action only when we by repressive governments to spread it had attracted half a million, amid argued that copycat pages were violat- misinformation, divert attention, and global media coverage. But nobody in- ing our copyright. undermine support. I serve as a media side Facebook knew anything about it. Finally, following repeated requests, advisor to one of the biggest such cam- Almost immediately, the Islamic Facebook awarded MSF its blue tick of paigns in Iran, and our painful experi- Republic hit back. Within days of the authenticity, indicating the site had ence illuminates the harsh challenges. campaign’s launch, a Facebook page been validated by the company. That The Islamic Republic of Iran is one of affiliated with the government pub- took care of the copycats. And to deal the most prolific promoters of shad- lished a post which said Masih Alinejad with the now-daily cyberattacks and owy groups and an expert at creating had been raped in London after disrob- spam campaigns against the page, fake sites. Some of these groups are ing in public. It was “fake news,” meant Facebook assigned a dedicated moder- controlled by the country’s intelligence to shame Alinejad and warn other ator and contact person. services and the Iranian Revolutionary women against joining her campaign. We also had to deal with several Guards. But it was not easy to figure out how Facebook pages created with the ex- My Stealthy Freedom (MSF), the to complain to Facebook about this press aim of identifying the protesting group I advise, is an Iranian women’s violation of its rules. Eventually, we sent women, threatening them with arrest, rights campaign against compulsory an email to Facebook support. Face- and worse. Some even encouraged hijab laws. It is a thorn in the side of book dismissed the complaint, arguing acid attacks against them. Still, the the Islamic Republic and has been that it was a freedom of speech issue. campaign continued to grow. Its real the victim of sustained cyberattacks, Soon fake pages also emerged that strength was women inside Iran who hoaxes, misinformation and abuse for pretended to be MSF. As the popularity were not scared of these tactics. Every morning, an activist would search Facebook for fake accounts, report them, and ensure they were deleted. But the Islamic Republic’s operatives are a creative bunch. One new tactic was to bombard a post with thou- sands of spam comments from stolen identities. It was bizarre reading the same comment, often in Persian, over and over from accounts in Colombia, Argentina, China, and Singapore. It took Facebook engineers months to stop such attacks. By mid-2016, MSF’s Instagram account began to take off after both Facebook and Twitter were blocked inside Iran. Once again, Alinejad faced Iranian women post pictures of of the MSF Facebook page grew, so did spam attacks and misinformation themselves without headscarves on the number of copycat pages created campaigns from pages devoted to the the My Stealthy Freedom facebook by supporters of the regime. Some fake rape story. Some of our Instagram page. mixed in pornographic photographs; videos received as many 12 million views others copied all the photos from the and more than 10,000 comments. the past four years. authentic page in order to siphon off Monitoring all of them became difficult. MSF was created in May 2014 by jour- members and induce people to upload Luckily Instagram, which is owned by nalist and campaigner Masih Alinejad. photos to those pages instead. Facebook, also provided dedicated Since the Iranian Revolution, the Islamic When we complained, Facebook engineers to respond to issues. Republic’s compulsory hijab laws have again argued against deleting the Other social media sites have been required women to always cover their copycat and fake accounts. We tried to less helpful. On Twitter, it is almost hair. MSF calls on women to show their explain that the fake accounts posed a impossible to reach a real human to opposition to those laws by sending or security risk to women who sent them resolve issues. And for the past few posting photographs of themselves in their photographs, thinking it was the months, the campaign’s posts have public without a headscarf. real page. The operators of those pag- often not been visible to supporters. The campaign, which started on es—the government or its allies—could But the women of MSF will not be TECHONOMY _ 2018
FA C E B O O K ’ S FA I L U R E 21 deterred—and understand the power forced three Iranian ministers to issue an “#AyatollahYoutube” on Twitter. of social media. Last April, four female apology. The video was reposted by multi- We contacted other activists and university students celebrating their ple news organization around the world. #AyatollahYoutube became a graduations were attacked by Iranian Soon, YouTube removed the video trending hashtag. Within hours, morality police operatives. One of the and issued an email warning to Alinejad YouTube unblocked the video. students filmed the attack on her mobile that she had violated the site’s rules. phone and sent it to the campaign. After We desperately tried to reach out to the KAMBIZ FOROOHAR is a longtime Alinejad posted it on YouTube, the video company, but it was impossible to reach journalist and a media adviser for the received more than 5 million views. That a human. So, we created the hashtag My Stealthy Freedom campaign. Five Ways for Facebook to Help its Next Billion Users By Bhaskar Chakravorti AFTER A GREAT RISE, GRAVITY MAY other “light” features—Instant Articles, Lanka, Facebook was similarly slow to have caught up with Facebook. Despite with 10 times faster loading times than remove content and ban users when its sizzling growth and 2.5 billion users standard articles. Instagram Lite and platform was used to organize violence across all its services, it has recently Messenger Lite are also designed for against Muslims. had to grapple with concerns about places with weak data connections and Facebook-owned messaging app misinformation, the safety of user data, low-bandwidth networks. WhatsApp has been the primary carrier and scrutiny around its leadership. Despite these strategic moves, Face- of fake news and divisive rumors in Embedded in its still stratospheric book has struggled with socio-cultural India. Recently, India has experienced a valuation is the stock market’s expec- and political nuances in these coun- spate of lynchings instigated by rumors tation for continued growth. But such tries. But despite some fumbles, Free spread over WhatsApp. For months, growth isn’t coming from the U.S. and Basics has expanded into 63 countries Facebook did nothing other than make Europe. At the Fletcher School at Tufts, and municipalities, covering more than small tweaks. where I teach, we call that the “Digital 100 million new users. Facebook needs a proactive, con- North.” The emerging Asian, African, The biggest contextual challenge text-aware strategy for tackling the and Latin American markets, the “Dig- in the Digital South is that Facebook mushrooming fake news problem in the ital South,” will instead be the source becomes a de facto carrier of rumors Digital South. Here are five suggestions: of Facebook’s growth. Users here not and misinformation, which come at a only spend more time on the mobile heavy human cost. Rumor campaigns 1. Own the reality of its own success: internet, but an average user spends targeting the Rohingyas in Myanmar Facebook with its family of apps is more time on social media than one in were spread on Facebook, spark- an opinion shaper and de facto news the Digital North—almost 4 hours a day ing violence. (See story pg 16.) In Sri source—and increasingly so in the in the Philippines, for example, versus Digital South. It has outlived its original 48 minutes in Japan. role as a “public square.” As an influ- Of the top 10 countries with the ential media company, it must take most Facebook users, eight are in the FACEBOOK’S FUTURE IS IN THE responsibility for the content it carries. Digital South, accounting for 41 percent “DIGITAL SOUTH” It can combine both human and of users worldwide. Facebook’s North artificial intelligence to sort through American and European revenues in the content, classify, and filter it. It the last quarter fell $75 million relative Daily active user growth in the should partner with grassroots orga- to the same quarter in 2017, while past year nizations around the world dedicated revenue from other markets rose $51 to local fact-checking. Examples from Q2 2018 vs. Q2 2017 million. North America and Europe India alone include Altnews.in, accounted for only 4 percent of daily SM Hoax Slayer, and Check4Spam.com, active user growth over that period, each dedicated to de-bunking rumors while Asia-Pacific and non-Western +21% and stopping misinformation. It is markets accounted for 31 percent of currently labeling WhatsApp mes- Rest of the World daily active user growth. sages as “forwarded” or “suspicious”. US & Canada Asia-Pacific Facebook’s Digital South strategy But it needs to go beyond such subtle thus far has focused on access. To +10% markers. Eventually, Facebook must Europe close the connectivity gap, it launched develop transparent policy guidelines to the Free Basics initiative aimed at label, de-prioritize, even block, different developing world users. It extends free +3% categories of content. internet access through a stripped- +1% down mobile application, including a 2. Establish on-the-ground operations: version of Facebook. Its Facebook Lite Source: Facebook via Statista Facebook had no formal offices in product uses less data and pairs with Myanmar or Sri Lanka. CONTINUED PAGE 37 TECHONOMY _ 2018
22 CO OKIE T H AT ATHE TE EARLY WEB ENGINEERS THOUGHT A BROWSER “COOKIE” WOULD BE A SIMPLE AND FRIENDLY WAY FOR SITES TO KNOW YOU HAD RETURNED. THEY MISCALCULATED. by Janet Guyon Illustration by Giacomo Bagnara
TOXIC CO OKIES 23 E TECHONOMY _ 2018
24 TOXIC CO OKIES BACK IN THE LATE 1990S, MANY OF wonders if he should have seen it all Montulli, who would later be granted us felt a thrill when a website first coming. Lou Montulli was 23 years a patent for his idea. (His employer, welcomed us back by name. Until old in 1994 and working on what Netscape, actually owned the patent then, every time we went to a site we would later become the Netscape and never collected royalties.) “Prior previously visited, we’d have to tell browser. He came up with what he to cookies, the web had no method it all over again who we were and go thought was a pretty good idea. He of remembering a user at all, with through the tedious task of logging had recently moved to Northern Cali- the exception of logging in again in. Like a waiter who can’t recall fornia from the University of Kansas, directly.” who ordered the omelet, the internet where he had created a pre-Netscape Montulli and the Netscape crew back then had no memory of who did browser called Lynx while working considered a few other ways to give what. Sites had no way to know you at the university’s computer center. websites memory, but all had signifi- were a returning visitor, or even to As a founding engineer at Netscape, cantly more ability to track a user record when you visited another one he was charged in the summer of across the entire World Wide Web, of its many pages. 1994 with figuring out a way for which they wanted to avoid. “Cookies Behind those first messages of websites to remember information were designed to prevent tracking, “Welcome” was a tiny piece of invisi- about visitors who had previously because only the originating website ble text, no more than a few hundred visited them. The main problem was can set and receive that cookie,” says characters long. Your web browser how to create a shopping cart on the Montulli, who now runs JetInsight, could see it, but you couldn’t. It web, a place where you could keep an aircraft software company. was called a “cookie.” Its job was to adding stuff you wanted to buy after What none of the early browser remember whether you had previ- choosing the first item. inventors foresaw, however, was the ously visited so you wouldn’t have Montulli came up with the cookie. ability of other websites and services to bother logging in all over again. It It was just a small piece of text to insert their own cookies into a was initially designed to maintain downloaded to your browser when browser whenever someone visited your privacy and your security; that you visited a particular website. Like a specific website or viewed specific little bit of text wasn’t software code a ticket from a coat check, it would content. Partly that’s because the way and it didn’t know your name or identify you when you returned. the web works now is very different. what you did elsewhere on the web. It could recall what pages you had Webpages today are created not just It just knew that the browser in your already seen or what products you’d by accessing a single server, but by computer had once visited that par- already decided to buy. But the cookie drawing material from many differ- ticular website, so it could be referred in effect introduced and enabled the ent servers to assemble what looks to to if you returned. idea of recording “web sessions,” or the user like one page. That humble computer cookie the period of time you spend on a Early on, the advertising commu- has today morphed into something particular website. That concept has nity deduced that when a webpage far more ubiquitous, capable, and now become essential to the way the loaded on a user’s computer, a nefarious. It now sits at the center entire web works. separately operated server that put of a multibillion-dollar digital ad “What we were trying to do was ads on that page could also insert a industry that has blanketed the support a variety of applications, one cookie on the user’s browser. “It was world. Massive worries have emerged of which was the shopping cart,” says natural to say, ‘Why don’t we make around the world about what that the ad server use the cookie?’” says means. Use of this tool is dominated Dave Morgan, a New York-based en- by a few tech giants whose behavior has become the cause of rising con- The humble trepreneur who founded RealMedia, one of the first companies to develop cern over personal privacy, security, browser software that placed ads on websites. and more. The cookie is the enabler of a grand cookie has If the ad server could identify a specific user—or rather, that user’s bargain we all make: free access to the web in return for our eyeballs on morphed into computer and browser software—us- ing a cookie, it could personalize the often highly targeted advertising. Yet something more ads. But the ad server also needed to the data collection and analytics that this once-modest tool now enables ubiquitous, know on which sites users saw its ads. To do that, it exploited an exist- could end up threatening the future of democracy itself. capable, and ing piece of code called the “referer header” (the name had been mis- The man who invented the cookie nefarious. spelled by early web coders), which TECHONOMY _ 2018
TOXIC CO OKIES 25 edented access to troves of data on consumer behavior, as well as control over a huge chunk of the web’s $200 billion in advertising inventory. As one Federal Trade Commissioner who objected to the merger put it at the time, Google obtained “a massive database of desires, needs, wants, and likes that can be discovered, subpoenaed, archived, tracked, and exploited to all sorts of ends.” Facebook similarly has gained enormous power to monitor user behavior. It has 2.25 billion users around the globe who have voluntarily given it in most cases their names, locations, likes, dislikes, job titles, photographs, ages, and personal history, as well as insight into their browsing history on Facebook. But the social networking and media colossus doesn’t just know what you look at on Facebook. It can could identify the site on which an ad for the development of advertising see what you do on as many as 11 mil- had landed. specifically targeted at all of us, the lion other websites around the world. The referer header sat in the unsuspecting web surfers. That’s because so many of them allow browser, part of the network protocol Behind the systems that managed you to “login with Facebook” or carry used by web browsers and servers to ad-based cookies were giant databases Facebook’s “Like” button. It contains transfer information. Ad servers sent that also tracked websites and con- code, or a pixel, that, along with its requests for referer headers when tent. Cookies correlated with technol- third-party cookie, can tell what you they sent cookies, thus figuring out ogy that could tell what content users are looking at. “People don’t under- on which originating site users saw saw, or which items they searched for, stand that because all these ‘Like’ specific ads. enabled the ad community to develop buttons are everywhere, they are Pretty soon, the many servers that those ubiquitous ads that follow you being tracked when they are not on delivered content to a webpage began around as you go from site to site. Facebook,” says Morgan. to also load cookies to track users, When you visit The New York Times’ “Facebook is a machine like noth- target ads and generally observe automotive section, for instance, you ing else ever created,” John Sculley, behavior. The simplicity of the cookie might also be served ads for cars, or the former CEO of Apple, told CNBC protocol “created the ability to create even be told that you are 23.5 miles in March 2018. “It is a beautiful a lot of cookies,” says Morgan. Com- from the nearest dealer. If that ad is model for selling ads.” Its vast data bined with other web technologies, served by an ad network, it can follow pool, however, has also made it, he so-called “third party cookies” could you to the next site you visit. said, into a “computational propa- track users even if they weren’t on By the millennium, one of the ganda” machine that allows others the originating website. “Companies world’s first big adtech firms, Double- to “manipulate public opinion.” figured out how to game the system,” Click, founded in 1996, was serving It is as if, during the pre-internet is how Montulli puts it. up cookies that tracked visits to the era, the phone company used your As ad networks grew and consol- millions of websites that used its calling patterns—where you placed idated, they began buying, selling, technology to display ads. Google, calls, how long you talked, who you and sharing information about the which already placed its own cookies chatted with, when you ordered new users they had “cookied,” to use a on a user’s computer to track their goods—to sell ads to Russian bots term that became widely used in searches, bought DoubleClick in that could also jump into your con- the industry. That allowed them to 2007 for $3.1 billion, in a deal seen at versations. (Facebook didn’t respond build detailed profiles of individual the time as a historic doubling down to questions about its cookie and web users, which became invaluable on advertising. That gave it unprec- tracking abilities.) TECHONOMY _ 2018
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