Digifesto

Tag: supply chain analysis

Trade secrecy, “an FDA for algorithms”, a software bills of materials (SBOM) #SecretAlgos

At the Conference on Trade Secrets and Algorithmic Systems at NYU today, the target of most critiques is the use of trade secrecy by proprietary technology providers to prevent courts and the public from seeing the inner workings of algorithms that determine people’s credit scores, health care, criminal sentencing, and so on. The overarching theme is that sometimes companies will use trade secrecy to hide the ways that their software is bad, and that that is a problem.

In one panel, the question of whether an “FDA for Algorithms” is on the table–referring the Food and Drug Administration’s approval of pharmaceuticals. It was not dealt with in too much depth, which is too bad, because it is a nice example of how government oversight of potentially dangerous technology is managed in a way that respects trade secrecy.

According to this article, when filing for FDA approval, a company can declare some of their ingredients to be trade secrets. The upshot of that is that those trade secrets are not subject to FOIA requests. However, these ingredients are still considered when approval is granted by the FDA.

It so happens that in the cybersecurity policy conversation (more so than in privacy) the question of openness of “ingredients” to inspection has been coming up in a serious way. NTIA has been hosting multistakeholder meetings about standards and policy around Software Component Transparency. In particular they are encouraging standardizations of Software Bills of Materials (SBOM) like the Linux Foundation’s Software Package Data Exchange (SPDX). SPDX (and SBOM’s more generally) describe the “ingredients” in a software package at a higher level of resolution than exposing the full source code, but at a level specific enough useful for security audits.

It’s possible that a similar method could be used for algorithmic audits with fairness (i.e., nondiscrimination compliance) and privacy (i.e., information sharing to third-parties) in mind. Particular components could be audited (perhaps in a way that protects trade secrecy), and then those components could be listed as “ingredients” by other vendors.

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thinking about Naidu on Piketty and universal basic income

Multiple sources have no referred me to Suresh Naidu’s article in the “After Piketty” anthology. It’s now high on my to-read list.

A key insight from the secondary reviews is the reminder that however capital is supplied (whether it be in liquidity, or capital “goods” like factory equipment, or land, or today in intellectual property), they are priced according to the expectation of future return on ownership. Given the diverse forms that capital can take, “expected return on future ownership” may very well be what distinguishes capital from consumer goods.

Capital accumulation is then, at its most basic, the process of strategic investment to maximize return across lots of asset classes.

Let’s assume for now the most cynical possible view of political economy, in which all political agendas are just rallying will in favor of this or that kind of capital, pushing for the revaluation of capital or policies that change its distribution. In many ways, this is consistent with Bourdieusian social theory.

Then look at the push for universal basic income (UBI). I’ve though UBI is a great idea in the past. It seems humane: everybody gets enough to live on, and people can at last be free with nothing to complain about. No problem, right?

There is the sticky concern that UBI does not address equity concerns. I’m not going to write about that now.

What I’m thinking about now, just putting myself in the shoes of an arch-capitalist for once, is that giving everybody a budget for consumer goods paid out of general taxes changes the way capital is valued. Specifically, capital that is directed towards to provision of consumer products becomes higher-value with UBI, since it guarantees a greater income stream.

This analysis is perhaps neither here nor there, so to speak. But it’s the kind of thinking I’d like to do more of. I’m coming to the conclusion that a useful analysis of political classes has to be done with a solid understanding of economic supply chains, the human parts of them especially. This is not a matter of simple polarities or binaries but rather the analysis has to take the supply topology into account.