Category Archives: trade

Blockchain’s promise: trust

Pete Harris stopped by a session of the World Spins to share his take on blockchain, the software technology generally overshadowed by its trendier spawn, bitcoin and the Bitcoin network. Harris, who bears a striking resemblance to Bilbo Baggins, has a relationship to hype similar to mine with spreadsheets. That is, he is clear and takes  sticks to the facts as he sees them. Even so, it doesn’t take long to recognize blockchain’s promise. If it’s possible to transact business based on a series of permanent (i.e. they can’t be changed), transparent interactions, then our trust-starved world may have a chance of recovering its footing.

https_blogs-images.forbes.comjamiemoyfiles201802block-chain-2852998_1920-1200x534 (1)

The blockchain network: can it build trust?  Photo courtesy by Gerd Altmann via Pixabay, courtesy of Forbes

 

“We’ll have to wait and see” 

Harris’ blockchain CV dates from his Wall Street consulting days over a decade ago. These days, having sworn off airplanes, he spends much of his time with the Austin startup community where over 70 young cryptocompanies are  tackling data integrity issues where they find them — finance, healthcare, contracts.

I watched a handful present at Harris’ Monday night meetup. They ranged from Po.et, copyright/intellectual property protection, to GovernanceChain, an accounting network and CityShare, a digital shopping/hospitality network for member cities. Among the more visible is Wanchain, a Chinese nonprofit that’s figuring out to securely connect separate smart contracts, each with its own blockchain, a pivotal step in supporting a currency-agnostic global financial network. Interestingly, Wanchain’s technology is developed in China; the company’s U.S. headquarters is in Austin.

One of the best parts of these presentations is listening to company execs say, “I don’t know,” and “We’ll have to wait and see” — something I hear very often.  But I suppose that’s the beauty of a working with a nascent technology.

Privacy is implicit in the design

Speaking of wait-and-see, someone asked about blockchain’s impact on GDPR, the  European Union’s toughened privacy requirements known as the General Data Protection Rules. With the compliance deadline looming next month, that too is a wait-and-see. But since transactions are permanent, transparent and traceable, the blockchain ledger eliminates the need for centralized control. The integrity of the information is inherent in the software design.

A peek at a mobile citizenry in a digital world 

Today, 10% of the world’s GDP is in block chain. But it’s not all business. In the public sector, tiny Estonia has fashioned itself what the New Yorker magazine labelled a digital republic. Its citizens are free to live and work wherever they please while continuing to  vote, maintain their health, pay taxes using digital IDs.

Curious? Here in Austin, check out the:

World Spins series spotlights thought leaders on the cusp of disruption

I wanted to let you know about a project I’m working on with the World Affairs Council.  Its best described as a salon series showcasing some of the forces re-shaping the world we think we know — climate change, blockchain technology, the shift of global power from military to technological supremacy.  Our new series “The World Spins,”  will bring  people at the forefront of issues that are re-shaping the world we live in:  climate change, national security, blockchain technology, China and innovation. I’m thrilled to have these brilliant people — thought leaders, participants – not observers — share their time with us.  If you’re in Austin, please join us!

NATIONAL SECURITY & CLIMATE CHANGE, Dr. Joshua Busby, an associate professor,

Dr. Joshua Busby, associate professor, LBJ School of Public Affairs, University of Texas at Austin

Military leaders accept climate change as a major risk to our national security. Do we have a policy? Internationally recognized expert Dr. Josh Busby dives into a thorny issue.

the LBJ School of Public Affairs, University of Texas at Austin, has been deeply involved in climate change policy since 2008. He participated in the discussions around Paris Accord, as well as their follow-on sessions, the next scheduled to take place in Poland later this year, as well as managing multi-million dollar grants for the Dept. of Defense. Quick update:  President Trump announced the United States’ intention to withdraw last December.  Former National Security Advisor H. R. McMaster recognized the relationship between the weather and security. He’s out, and former ambassador and Fox News analyst John Bolton is in.  What’s next?   April 12 at 6:30

 

BLOCKCHAIN, Pete Harris, founder of Lighthouse Partners, works with companies who are integrating blockchain technology into their business strategy. Talk about disruption, blockchain promises to dramatically reshape our financial, supply chain and trade relationships.  Think Walmart tracking the safety of sliced papaya from Central America to a store in Iowa. Pete, who consults internationally, is part of the axis of the blockchain

Pete Harris, Lighthouse Partners

Pete Harris, founder and president of Lighthouse Partner, has been talking blockchain and innovation since it was piloted on Wall Street.  

community in Austin, Texas, where there are over 70 start ups involved in commercializing this nascent technology into our financial, health care, food safety and transportation ecosystems. A nascent technology, the growing use of blockchain is overshadowed by its trendy subset, bitcoin.  But companies like IBM and Oracle are integrating it into the way their customers do business. Pete founded the hub of Austin’s blockchain innovation, the  Austin Blockchain Collective and chairs a monthly Blockchain for Business Meetup at the Capitol Factory which is free and open to all.   March 29 at 6:30

 

CHINA AND INNOVATION, David Firestein, is the founding director of the new China

David Firestein, Founding Executive Director, China Public Policy Center; Clinical Professor of Public Affairs

 David Firestein is shaping how a world-class university uses the resources and relationships of the (other) major world power. 

Public Policy Center at the LBJ School.  From his bio: Throughout his career, Firestein has played an active role advancing U.S.-China and U.S.-Asia trade. He has also produced path-breaking thought leadership, scholarship and Capitol Hill testimony on a range of topics, including U.S. arms sales to Taiwan, U.S.-China infrastructure investment cooperation, and the role of national exceptionalism as a driver of major international conflict today. Firestein is native Austinite who speaks Mandarin at near-native level (hard to imagine in a Texan) and has published a book on what else – country music and diplomacy. May 22 at 6:30

 

 

 

If you’re in town, please join us!  All sessions are held at the historic Neill-Cochran House  where you can park right behind the building for free — speaking of a changing world.

Can tech companies do the right thing — and still make money?

Did you know Google Feud’s #1 response to the phrase, “My friend is addicted to ____” is  “phone.” But as technology continues to permeate our lives, a lot of tech companies would plug in “collecting your personal information” instead.

A few weeks ago a friend mentioned that she’s closeted her Alexa after getting a call from a vendor offering her a great price on tickets to a concert featuring country music superstar Brad Paisley.  This following a conversation among family members the day before about that very concert. They happened to be standing next to a kitchen counter where Alexa sat. Was she listening?  Who knows.

Alexa

Good deeds? Amazon’s Alexa will even donate to your favorite charity.

Unlike the Europeans who’ve been quick to cry foul, we Americans remain confused and oddly offended when we discover (if we discover) our information has been sold and used without our permission. There is no constitutional right to privacy.  In the 1970’s, the Federal Trade Commission was charged with protecting and regulating privacy rights, but the FTC has hesitated to move decisively.

Succeeding and staying ahead is a struggle for any company, particularly small tech companies.  Long ago, I took a job on the frontier of the New Economy when a venture-funded start-up hired me to roll out their personalization offering, a service that would help large brick-and-mortar retailers boost their online  loyalty (and sales) by tailoring web views to shoppers’ traits — gender, geography and shopping habits. It was a great customer service idea, one that has evolved to the point that the Zappos we admire  haunt us for days to come.

 

At the time, we jumped into the thick of it. It was an opportunistic, defensive strategy. We formed a privacy advisory council, met with Congressional representatives,  influencers and media. In 2000, we joined and participated in the FTC’s Advisory Committee on Online Access and Security.  The offering would ask people to opt in, rather than automatically including them in invisible information gathering.  But we were never able to sell a product, and the company folded 18 months later.  We were small, but if you’re big and want (or need) to feed investors and stakeholders, the temptation to step over the line to get ahead is going to be even greater. It gets hard to even see the line when you’re in the rush of generating and executing great ideas.

We did all the right things in those early days, but we ultimately failed because customers expect companies to deliver value — innovation — first.  Privacy is generally an afterthought. Amazon, Facebook and Google knew this from the get-go.

Postscript:  The Washington Post reports that the FTC has asked Facebook, whose entire business model seems to be built on selling users’ data,  to appear and an expanding Congressional probe is including Google and Twitter. Should be interesting.

Revisiting “Be Nice”: #BeNice2.0

In late July of 2017, I pushed my way into un-air conditioned warehouse-turned performance space to see an eccentric program called “Sixty by 60,” a series of 60 spoken, danced, mimed, sung one-minute performances produced by our much-loved, no-longer-local, disruptive arts nonprofit, Fusebox.

20258046_10154477548976710_6588016805002549648_n

Two performers wait to perform at “Sixty by 60.”  Sixty artistic souls expressed themselves for 60 seconds — without air conditioning.

The piece I remember most vividly featured a young African-American woman wearing a white t-shirt that read in bold, black letters, “Be Nice.”  A small woman, standing in the middle of the stage, she invited the 200 of sweating her sweating audience to pick up the white t-shirts she’d placed on their chairs and wave them over head, joining her in shouting “Be Nice!” to loud music.

Her minute landed lightly with her worn-out audience, as we shouted and laughed and clapped, and as the year passed, I realize how profound her message was, how many notes she struck.

I’m assuming the artist — why didn’t I get her name? — knew the allusion to the iconic New Orleans R&B queen Irma Thomas’ waving her white handkerchief as a sign to her audience to put their backfields in motion and acknowledge black woman power. 2017 was the year that even the most delusional among us had to recognize that all bets are off in terms of social, business and political discourse. This was not news to black women.  On more than one occasion, when the fearlessly talented Thomas invited her to  wave a white handkerchief, they also waved Confederate flags.

But 2017 brought us a new president, Travis Kalanick, Harvey Weinstein, shootings by and of policemen, fake news, children gunned down in churches, and more.  There is a lot of material to work with during 2018.

Though if it were up to me, a woman raised with the same words, I would make it BeNice2.0 to make it clear they no longer mean, “Don’t ruffle feathers, don’t offend, don’t speak up.”  We’re done with that, having discovered that it yields its flip side: anger, resentment, alienation, hurt feelings, etc.  We don’t need enemies. We need collaborators, supporters, friends, critics who are willing to listen.

The other thing I like about BeNice2.0 is that it takes us beyond “be kind,” unquestionably a necessary and admirable life rule.  To me, BeNice2.0, suggests a more active, engaging stance. Ask for what you need, point out unfair behavior, propose better approaches. Be active; #BeNice2.0

 

These amazing times and their cost

I fought my way through Friday night traffic to see my friend Shiva’s daughter perform in their Christmas play, “A Play in a Manger.”  I expected Mary, Joseph and a few shepherds.  What I saw was an hour-long rock-and-roll production built around a plot line of “bigger is not better.”  Mary and Joseph were supplanted by a production manager and a worried production crew and cast, some 20 kids in all.

Everybody got a speaking part, reaching up to the standing microphones like little gold fish getting their supper.).  Shaylee, whose family is from Iran, added what I learned later was an improvised dance number for her part.  The epilogue was this:  “Christmas is not about Walmart or Saks. ipads or iphones.”  That is, it’s not about stuff, because stuff costs a lot of money.

I thought about this when I stopped into my local Wal-Mart for socks and was astounded to find all of the cashiers were gone, erased.  In their place were scanners, waiting for a credit (or debit) card. When I asked the attendant where those workers — mostly women, mostly African-American, mostly over 40 — I got a shrug.

According Fortune, citing a McKinsey Global Institute report released in November, “between 400 million and 800 million workers around the world could be displaced by automation by 2030.”  By comparison, the 2016 population of Texas was 27.36 million.  Think about that — that’s 15 Texas’.

Most affected will be jobs that involve collecting and processing data – everything from accounting to fast food.  The report predicts the pace of displacement will be unprecedented, concluding  “There are few precedents in which societies have successfully retrained such large numbers of people.”

In a recent column, David Brooks had some suggestions for lawmakers to consider, a list that targets practical but oftentimes insurmountable barriers like making it easier for people to:

  • Get to work
  • Get a license
  • Enter fast-growing professions like health care
  • As ex-offenders, navigate the application process

It’s painful to experience the season as one of “haves” and “have nots,”  and easy to turn away we dash through the holiday fully armed.  But here’s hoping each of us has an opportunity to pause and reflect, not just on how very lucky we are, but how we can help those who are less so, navigate these times.

Skills are Our Best Renewable Strategy

I recently went to the IBM Amplify conference, which was built around IBM’s cognitive offering, Watson. It was, of course, all about knowledge and skills. Although technology majored, human skills were also a theme, and I raced around trying to keep up.

Girls who code and more

IBM Chairman Ginni Rometty closed her keynote by recognizing three young women from California who excelled in IBM P-Tech six-year high school schools, offering those lucky students jobs as IBM interns.  Skills were visible through partners:  CoffeeBean and its Soical-ID, BlueSky CloudCommerce, Bridge Solutions, Lightwell fulfillment. Rocket Fuel, and SapientRazorfish — all driving, extending, the cognitive technology into their respective sectors.

IBM has deep experience in getting the right skill sets from its people, and Marc Benioff of Salesforce was there to represent a new generation of companies that underscore the value-add of ongoing training and education.

Business and jobs policy 

Benioff — an innovation evangelist — referenced a meeting he and Rometty (among others) recently attended with President Trump:

“I want to thank all the business leaders that have joined us to discuss a subject that’s very important to me: Training our workforce for the 21st century, especially in respect to manufacturing jobs,” CNN quotes Trump as having said during that meeting. “Here in the United States, companies have created revolutionary high tech and online courses.”

More to come in this area, no doubt.

H-1B visa applications out tomorrow

H-1B visa applications are due out tomorrow. The U.S. Citizenship and Immigration Services announced quotas will remain the same despite proposed changes, and some 85,000 applications will be available to tech companies. In the past, the visas have primarily been gone to professionals from India for IT jobs, and although data shows there has been a small impact on tech sectors wages, overall the program has demonstrated it enhances innovation, lowers consumer prices and boosts company profits.

It’s good to know there’s a larger discussion on jobs and skills.  But in the end, each of us is responsible for keeping our own skills up-to-snuff, and making sure elected officials and our professional communities help in any and all ways they can.  Skills are the best renewable strategy we have.  None of us should be sitting on our hands (or laurels).

Weighing the Trans-Pacific Partnership on a Larger Scale

Two statistics alone — that 96 percent of the world’s consumers and 80 percent of the world’s purchasing power are outside the United States — should insure our attention is riveted on the first of President Obama’s signature trade deals, the Trans-Pacific Partnership (TPP), as it bobs before an un-receptive Congress in a lame-duck year.

 

charlesrivkin

Ambassador Charles Rivkin, the State Department’s assistant secretary of Bureau of Economic and Business Affairs

This week TPP evangelist Charles Rivkin was in town to talk about the state of the deal and its benefit to the small businesses and tech startups that make up 95% of Austin’s economy. Ambassador Rivkin is no empty suit. His blue-chip credentials in technology, entertainment and business include negotiating the $1B sale of the Jim Henson company. A self-effacing speaker, he cited a nickname, “Don Quixote,” for promoting causes he believes in (like President Obama).

 

Trade is a complex topic that quickly becomes emotional. But Ambassador Rivkin did something interesting:  he inched the discussion out of the “what” category (jobs) and into another, more properly labeled “how.” Framing TPP as a once-in-a blue-moon opportunity to “raise the standards of international trade” — climate change, endangered species, human rights — while also touting the benefits to specific sectors of the economy. In technology, for example, TPP is the first trade deal to address intellectual property.

Windmill alert:  Watchdog groups like the Electronic Frontier Foundation and Public Citizen oppose the deal, which doesn’t go far enough for their respective publics. EFF in particular is worried the deal will hamper investigative journalism and openness while endangering privacy. Nobel Laureate and Columbia business professor Joseph Stiglitz, an advisor to Mrs. Clinton’s campaign, is also against it, pointing out that financial industry, as always it seems, gets off lightly, as do pharmaceuticals and big business in general.

But other voices support Ambassador Rivkin’s argument. The New York Times’ Nathaniel Popper’s nonlinear look at trade deals cites  TPP supporter David Autor (“China Shock”):

global-trade_paul-windle

Courtesy of Paul Windle, the New York Timescites TPP supporter David Autor (“China Shock”): TPP:

 

“The gains to the people who benefited are so enormous — they were destitute,m and now they were brought into the global middle class…The fact that there are adverse consequences in the United States should be taken seriously, but it doesn’t tilt the balance.”

In other words, trade can be seen as a tool to offset economic aid, or as Popper concludes, the benefits of trade have to be evaluated on both sides of the transaction.

Nobel Prize winner Paul Krugman is a bit pithier: “Politicians should be honest and realistic about trade, rather than taking cheap shots. Striking poses is easy; figuring out what we can and should do is a lot harder.”

Any way you cut it, I’m glad we have a savvy Don Quixote at work on TPP.