Databody convergence

In the phrase "the rise of the citizen as a consumer", to be found on the EDS website, the cardinal political problem posed by the databody industry is summarised: the convergence of commercial and political interest in the data body business, the convergence of bureaucratic and commercial data bodies, the erosion of privacy, and the consequent undermining of democratic politics by private business interest.

When the citizen becomes a consumer, the state must become a business. In the data body business, the key word behind this new identity of government is "outsourcing". Functions, that are not considered core functions of government activity are put into the hands of private contractors.

There have long been instances where privately owned data companies, e.g. credit card companies, are allowed access to public records, e.g. public registries or electoral rolls. For example, in a normal credit card transaction, credit card companies have had access to public records in order to verify identity of a customer. For example, in the UK citizen's personal data stored on the Electoral Roll have been used for commercial purposes for a long time. The new British Data Protection Act now allows people to "opt out" of this kind of commercialisation - a legislation that has prompted protests on the part of the data industry: Experian has claimed to lose LST 500 mn as a consequence of this restriction - a figure that, even if exaggerated, may help to understand what the value of personal data actually is.

While this may serve as an example of an increased public awareness of privacy issues, the trend towards outsourcing seems to lead to a complete breakdown of the barriers between commercial and public use of personal data. This trend can be summarised by the term "outsourcing" of government functions.

Governments increasingly outsource work that is not considered core function of government, e.g. cooking meals in hospitals or mowing lawns in public parks. Such peripheral activities marked a first step of outsourcing. In a further step, governmental functions were divided between executive and judgemental functions, and executive functions increasingly entrusted to private agencies. For these agencies to be able to carry out the work assigned to them, the need data. Data that one was stored in public places, and whose handling was therefore subject to democratic accountability. Outsourcing has produced gains in efficiency, and a decrease of accountability. Outsourced data are less secure, what use they are put to is difficult to control.

The world's largest data corporation, EDS, is also among the foremost outsourcing companies. In an article about EDS' involvement in government outsourcing in Britain, Simon Davies shows how the general trend towards outsourcing combined with advances in computer technology allow companies EDS, outside of any public accountability, to create something like blueprints for the societies of the 21st century. But the problem of accountability is not the only one to be considered in this context. As Davies argues, the data business is taking own its own momentum "a ruthless company could easily hold a government to ransom". As the links between government agencies and citizens thin out, however, the links among the various agencies might increase. Linking the various government information systems would amount to further increase in efficiency, and a further undermining of democracy. The latter, after all, relies upon the separation of powers - matching government information systems would therefore pave the way to a kind of electronic totalitarianism that has little to do with the ideological bent of George Orwell's 1984 vision, but operates on purely technocratic principles.

Technically the linking of different systems is already possible. It would also create more efficiency, which means generate more income. The question, then, whether democracy concerns will prevent it from happening is one that is capable of creating

But what the EDS example shows is something that applies everywhere, and that is that the data industry is whether by intention or whether by default, a project with profound political implications. The current that drives the global economy deeper and deeper into becoming a global data body economy may be too strong to be stopped by conventional means.

However, the convergence of political and economic data bodies also has technological roots. The problem is that politically motivated surveillance and economically motivated data collection are located in the same area of information and communication technologies. For example, monitoring internet use requires more or less the same technical equipment whether done for political or economic purposes. Data mining and data warehousing techniques are almost the same. Creating transparency of citizens and customers is therefore a common objective of intelligence services and the data body industry. Given that data are exchanged in electronic networks, a compatibility among the various systems is essential. This is another factor that encourages "leaks" between state-run intelligence networks and the private data body business. And finally, given the secretive nature of state intelligence and commercial data capturing , there is little transparency. Both structures occupy an opaque zone.

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Global hubs of the data body industry

While most data bunkers are restricted to particular areas or contexts, there are others which act as global data nodes. Companies such as EDS (Electronic Data Systems), Experian, First Data Corporation and Equifax operate globally and run giant databases containing personal information. They are the global hubs of the data body economy.

Company

Sales in USD billions

Size of client database in million datasets





Equifax





1,7





360





Experian





1,5





779





Fist Data Corporation





5,5





260





EDS





18,5









(not disclosed)

(Sales and database sizes, 1998)

The size of these data repositories is constantly growing, so it is only a matter of time when everybody living in the technologically saturated part of the world will be registered in one of these data bunkers.

Among these companies, EDS, founded by the former US presidential candidate Ross Perot, known for his right-wing views and direct language, is of particular importance. Not only is it the world's largest data body company, it is also secretive about the size of its client database - a figure disclosed by the other companies either in company publications or upon enquiry. After all, the size of such a data base makes a company more attractive for potential customers.

For many years, EDS has been surrounded by rumours concerning sinister involvement with intelligence agencies. Beyond the rumours, though, there are also facts. EDS has a special division for government services. EDS does business with all military agencies of the US, as well as law enforcement agencies, justice agencies, and many others. The company also maintains a separate division for military equipment In 1984, the company became a subsidiary of General Motors, itself a leading manufacturer of military and intelligence systems. EDS is listed by the Federation of American Scientist's intelligence resource program as contractor to US intelligence agencies, and prides itself, amongst other things, to respond to the "rise of the citizen as a consumer".

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Feeding the data body

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Election campaigning and direct marketing

If direct marketing tools works for commercial purposes, why should they not be used in election campaigns? Why not gain people's votes by political statements tailor-cut to suite the attitudes and values of a voter? The Republican Party of Missouri, USA, has already tried it out. As the Washington Post reported on 10 October, 2000, the party purchased personal data from the data body company TransUnion and fed them into a computer programme capable of inferring political likes and dislikes from the kind of social, demographic and economic data warehoused by TransUnion. The software is offered by Map Applications, Inc. and has already been successfully used by the arms lobbying group National Rifle Association. The logic of customised reality of direct marketing is finally beginning to directly affect the democratic process, the consumer merges with the citizen.

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Global data bodies - intro

- Education files, insurance files, tax files, communication files, consumption files, medical files, travel files, criminal files, investment files, files into infinity ...

Critical Art Ensemble

Global data bodies

1. Introduction

Informatisation has meant that things that once were "real", i.e. whose existence could be experienced sensually, are becoming virtual. Instead of the real existence of a thing, the virtual refers to its possibility of existence. As this process advances, an increasing identification of the possible with the real occurs. Reality migrates into a dim and dematerialised grey area. In the end, the possible counts for the real, virtualisation creates an "as-if" experience.

The experience of the body is also affected by this process. For example, in bio-technology, the human body and its functions are digitised, which prepares and understanding of the body exlusively in terms of its potential manipulation, the body becomes whatever it could be. But digitisation has not only affected the understanding and the social significance of the body, it has also altered the meaning of presence, traditionally identified with the body. The advance of information and communication technologies (ICTs) has meant that for an increasing number of activities we no longer need be physically present, our "virtual" presence, achieved by logging onto a electronic information network, is sufficient.

This development, trumpeted as the pinnacle of convenience by the ICT industries and governments interested in attracting investment, has deeply problematic aspects as well. For example, when it is no longer "necessary" to be physically present, it may soon no longer be possible or allowed. Online-banking, offered to customers as a convenience, is also serves as a justification for charging higher fees from those unwilling or unable to add banking to their household chores. Online public administration may be expected to lead to similar effects. The reason for this is that the digitalisation of the economy relies on the production of surplus data. Data has become the most important raw material of modern economies.

In modern economies, informatisation and virtualisation mean that people are structurally forced to carry out their business and life their lives in such a way as to generate data.

Data are the most important resource for the New Economy. By contrast, activities which do not leave behind a trace of data, as for example growing your own carrots or paying cash rather than by plastic card, are discouraged and structurally suppressed.

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