Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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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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Timeline BC

~ 1900 BC: Egyptian writers use non-standard Hieroglyphs in inscriptions of a royal tomb; supposedly this is not the first but the first documented example of written cryptography

1500 an enciphered formula for the production of pottery is done in Mesopotamia

parts of the Hebrew writing of Jeremiah's words are written down in "atbash", which is nothing else than a reverse alphabet and one of the first famous methods of enciphering

4th century Aeneas Tacticus invents a form of beacons, by introducing a sort of water-clock

487 the Spartans introduce the so called "skytale" for sending short secret messages to and from the battle field

170 Polybius develops a system to convert letters into numerical characters, an invention called the Polybius Chequerboard.

50-60 Julius Caesar develops an enciphering method, later called the Caesar Cipher, shifting each letter of the alphabet an amount which is fixed before. Like atbash this is a monoalphabetic substitution.

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Product Placement

With television still being very popular, commercial entertainment has transferred the concept of soap operas onto the Web. The first of this new species of "Cybersoaps" was "The Spot", a story about the ups and downs of an American commune. The Spot not only within short time attracted a large audience, but also pioneered in the field of online product placement. Besides Sony banners, the companies logo is also placed on nearly every electronic product appearing in the story. Appearing as a site for light entertainment, The Spots main goal is to make the name Sony and its product range well known within the target audience.

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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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Definition

During the last 20 years the old Immanuel Wallerstein-paradigm of center - periphery and semi-periphery found a new costume: ICTs. After Colonialism, Neo-Colonialism and Neoliberalism a new method of marginalization is emerging: the digital divide.

"Digital divide" describes the fact that the world can be divided into people who
do and people who do not have access to (or the education to handle with) modern information technologies, e.g. cellular telephone, television, Internet. This digital divide is concerning people all over the world, but as usually most of all people in the formerly so called third world countries and in rural areas suffer; the poor and less-educated suffer from that divide.
More than 80% of all computers with access to the Internet are situated in larger cities.

"The cost of the information today consists not so much of the creation of content, which should be the real value, but of the storage and efficient delivery of information, that is in essence the cost of paper, printing, transporting, warehousing and other physical distribution means, plus the cost of the personnel manpower needed to run these `extra' services ....Realizing an autonomous distributed networked society, which is the real essence of the Internet, will be the most critical issue for the success of the information and communication revolution of the coming century of millennium."
(Izumi Aizi)

for more information see:
http://www.whatis.com/digital_divide.htm

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Another Question of Security

Even with the best techniques it is impossible to invent a cryptographic system that is absolutely safe/unbreakable. To decipher a text means to go through many, sometimes nearly - but never really - endless attempts. For the computers of today it might take hundreds of years or even more to go through all possibilities of codes, but still, finally the code stays breakable. The much faster quantum computers will proof that one day.
Therefore the decision to elect a certain method of enciphering finally is a matter of trust.

For the average user of computers it is rather difficult to understand or even realize the dangers and/or the technological background of electronic transmission of data. For the majority thinking about one's own necessities for encryption first of all means to trust others, the specialists, to rely on the information they provide.
The websites explaining the problems behind (and also the articles and books concerning the topic) are written by experts of course as well, very often in their typical scientific language, merely understandable for laymen. The introductions and other superficial elements of those articles can be understood, whereas the real background appears as untouchable spheres of knowledge.

The fact that dangers are hard to see through and the need for security measures appears as something most people know from media reports, leads directly to the problem of an underdeveloped democracy in the field of cryptography. Obviously the connection between cryptography and democracy is rather invisible for many people. Those mentioned media reports often specialize in talking about the work computer hackers do (sometimes being presented as criminals, sometimes as heroes) and the danger to lose control over the money drawn away from one's bank account, if someone steals the credit card number or other important financial data. The term "security", surely connected to those issues, is a completely different one from the one that is connected to privacy.
It is especially the latter that touches the main elements of democracy.

for the question of security see:
http://www-db.stanford.edu/pub/gio/CS99I/security.html

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Augustus

Gaius Julius Caesar Octavian Augustus (63 BC - 14 AD) was adopted by Julius Caesar and became the first Roman Emperor. While he was very successful in military affairs abroad, he tried to bring back law and order to the Roman population. He was most interested in arts and philosophy.

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Xerxes

Xerxes (~519-465 BC) was Persian King from 485-465 BC. He led his Army against the Greek but finally was defeated. He was the father of Alexander the Great.

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Louis XIV.

Louis XIV. (1643-1715) became King of France when he was still a young boy. He centralized all the state's power to the crown and created a state of absolutism. In this respect Louis' most famous sentence was: L'état c'est moi. (= The state am I). During his reign the most talented and respectable men in art as well as in philosophy and policy worked for the monarchy. His favor for luxury and the steady wars with other European empires ruined the state morally and financially, but for the history he is still called Roi Soleil (King of the Sun).

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UNIVAC

Built by Remington Rand in 1951 the UNIVAC I (Universal Automatic Computer) was one of the first commercially available computers to take advantage of the development of the central processing unit (CPU). Both the U.S. Census bureau and General Electric owned UNIVACs. Speed: 1,905 operations per second; input/output: magnetic tape, unityper, printer; memory size: 1,000 12-digit words in delay line; technology: serial vacuum tubes, delay lines, magnetic tape; floor space: 943 cubic feet; cost: F.O.B. factory U.S.$ 750,000 plus U.S.$ 185,000 for a high speed printer.

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Bertelsmann

The firm began in Germany in 1835, when Carl Bertelsmann founded a religious print shop and publishing establishment in the Westphalian town of Gütersloh. The house remained family-owned and grew steadily for the next century, gradually adding literature, popular fiction, and theology to its title list. Bertelsmann was shut down by the Nazis in 1943, and its physical plant was virtually destroyed by Allied bombing in 1945. The quick growth of the Bertelsmann empire after World War II was fueled by the establishment of global networks of book clubs (from 1950) and music circles (1958). By 1998 Bertelsmann AG comprised more than 300 companies concentrated on various aspects of media. During fiscal year 1997-98, Bertelsmann earned more than US$15 billion in revenue and employed 58.000 people, of whom 24.000 worked in Germany.

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to decipher/decode

to put the ciphers/codes back into the plaintext

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General Schwarzkopf

General H. Norman Schwarzkopf (* 1934) followed in his father's footsteps at the United States Military Academy at West Point.
In 1965 he applied to join the troops in Vietnam. For the next 20 years Schwarzkopf worked on his career. As Commander in Chief of the U.S. Central Command, he led U.S. and allied forces in the Gulf War (Operations Desert Shield and Desert Storm). He retired from the Army in 1992 and wrote his autobiography.

For a picture see: http://www.jesterbook.com/sections/5a_mom/gallery/schwarzkopf.htm

http://www.jesterbook.com/sections/5a_mom/gal...
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