1.7 The Cybernetic Society
7
1.7 The Cybernetic Society
This question brings us to an old concept that goes back to Norbert Wiener (1894–
1964)
9 who was known as the father of control theory (“cybernetics”). Wiener
imagined that our society could be controlled like a huge clockwork, where every
company’s and every individual’s activity would be coordinated by a giant plan of
how to run a society in an optimal way.
Many decades ago, Russia and other communist countries ran command
economies. However, they failed to be competitive, while the capitalist approach
based on free entrepreneurship thrived. At that time information systems were much
more limited in power and scope than today. This has changed. Now there is a
third approach besides communism and capitalism: socio-economic systems that
are managed in a data-driven way. In the early 70ies Chile was the first country to
attempt a “cybernetic society”.
10 It established a control center, which collected the
latest production data of major companies every week. This was a truly revolutionary
approach, but despite its obvious advantages, the government was unable to stay in
power, and Salvador Allende (1908–1973), the president of the country, had a tragic
end.
11 Nevertheless, the dream of a cybernetic society has not ceased to exist.
Today, both Singapore and China are trying to plan social and economic activities
in a top-down way using lots of data, and they enjoy larger growth rates than Western
democracies. Therefore, many economic and political leaders raise the question: “Is
democracy outdated?” Should we run our societies in a cybernetic way according to
a grand plan? Will Big Data allow us to optimize our future?
1.8 Wise Kings and Benevolent Dictators, Fueled by Big
Data
Given all the data one can now accumulate, is it conceivable that governments or big
companies might try to build “God-like”, almost “omniscient” information systems?
Could these systems then make decisions like a “benevolent dictator” or “wise king”?
Will they be able to avoid coordination failures and irrationality? Would it even
become possible to create the best of all worlds by collecting all data globally and
building a digital “crystal ball” to predict the future, as some people have suggested?
If this were possible, and given that “knowledge is power”, could a sort of digital
“magic wand” be created by a government or company to ensure that the benevolent
dictator’s master plan remains on course?
What would it take to build such powerful tools? It would require information
systems that knew us so well that they could manipulate our decisions by stimulating
9 Wiener [5, 6].
10 Medina [7].
11 He committed suicide.
7
1.7 The Cybernetic Society
This question brings us to an old concept that goes back to Norbert Wiener (1894–
1964)
9 who was known as the father of control theory (“cybernetics”). Wiener
imagined that our society could be controlled like a huge clockwork, where every
company’s and every individual’s activity would be coordinated by a giant plan of
how to run a society in an optimal way.
Many decades ago, Russia and other communist countries ran command
economies. However, they failed to be competitive, while the capitalist approach
based on free entrepreneurship thrived. At that time information systems were much
more limited in power and scope than today. This has changed. Now there is a
third approach besides communism and capitalism: socio-economic systems that
are managed in a data-driven way. In the early 70ies Chile was the first country to
attempt a “cybernetic society”.
10 It established a control center, which collected the
latest production data of major companies every week. This was a truly revolutionary
approach, but despite its obvious advantages, the government was unable to stay in
power, and Salvador Allende (1908–1973), the president of the country, had a tragic
end.
11 Nevertheless, the dream of a cybernetic society has not ceased to exist.
Today, both Singapore and China are trying to plan social and economic activities
in a top-down way using lots of data, and they enjoy larger growth rates than Western
democracies. Therefore, many economic and political leaders raise the question: “Is
democracy outdated?” Should we run our societies in a cybernetic way according to
a grand plan? Will Big Data allow us to optimize our future?
1.8 Wise Kings and Benevolent Dictators, Fueled by Big
Data
Given all the data one can now accumulate, is it conceivable that governments or big
companies might try to build “God-like”, almost “omniscient” information systems?
Could these systems then make decisions like a “benevolent dictator” or “wise king”?
Will they be able to avoid coordination failures and irrationality? Would it even
become possible to create the best of all worlds by collecting all data globally and
building a digital “crystal ball” to predict the future, as some people have suggested?
If this were possible, and given that “knowledge is power”, could a sort of digital
“magic wand” be created by a government or company to ensure that the benevolent
dictator’s master plan remains on course?
What would it take to build such powerful tools? It would require information
systems that knew us so well that they could manipulate our decisions by stimulating
9 Wiener [5, 6].
10 Medina [7].
11 He committed suicide.