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International Development

    My Hearts in Accra: Crowdfunding Checkbook Journalism: Gawker’s “Crackstarter” and its implications

    Toronto mayor Rob Ford is a controversial character. 2300 words in his 7600 word Wikipedia biography make up a section titled “other controversies“. These controversies include being drunk and picking a fight at a Leafs game, insulting people with AIDS, people of Asian descent, and allegedly groping a female mayoral candidate.

    But all that colorful behavior pales in comparison to the accusations he’s now facing. The Toronto Star, a left-leaning newspaper that’s repeatedly reported on mayor malfeasance, reports that they’ve watched a video that shows mayor Ford smoking crack cocaine with Somali drug dealers. Star reporters Robyn Doolittle and Kevin Donovan were approached by a community organizer from Toronto’s Somali community, who was acting as a “broker” for the person who shot the video on a smartphone, a man who alleges that he has sold crack to the mayor previously.

    For Americans, the Ford story calls up fond memories of Marion Barry, the Washington DC mayor who was videotaped freebasing cocaine by the FBI and the DC police. (Good news for mayor Ford – after serving a prison term, Barry returned to DC politics under the campaign slogan “He May Not Be Perfect, But He’s Perfect for D.C.”, and retook the mayorship four years after his arrest.) But, if anything, the Rob Ford story is crazier and more complex than the Barry scandal, at least from a journalistic perspective.

    While Doolittle and Donovan of the Star have seen video, but when they were asked to pay a six figure sum for the recording, they refused. Their article states unambiguously: “The Star did not pay money and did not obtain a copy of the video.”

    That’s not surprising. Paying sources for stories is a controversial practice. In the English-language press, it’s often called “checkbook journalism“, and it’s frowned on in elite US media (though it’s certainly happened through history), though quite common in tabloid media. In the UK, it’s significantly more common, and underpins much of the scandal around the behavior of Rupert Murdoch’s newspapers in the UK. US journalist Jack Schafer argues that there are practical, as well as ethical, reasons to avoid paying sources – you’ll cultivate sources who want to sell you bad information as well as good information.

    Gawker's Crackstarter Campaign

    Nick Denton and the freewheeling opportunists at Gawker Media don’t spend much time worrying about these niceties. Gawker’s tech site Gizmodo paid $5000 for a prototype of a next-generation iPhone, which made some headlines as the site may have paid money for stolen goods. But the attention didn’t damage Gawker, and they are now raising a set of new questions in offering to pay $200,000 for the Rob Ford video.

    What’s interesting this time is how Gawker plans to pay for it.

    Gawker editor John Cook published an article on Friday titled “We Are Raising $200,000 to Buy and Publish the Rob Ford Crack Tape”. Cook calls the campaign a “crackstarter”, a pun on Kickstarter, but the project is raising money on Indiegogo, perhaps because Kickstarter reviews proposals and rejects many of them, while Indiegogo maintains a more open platform.

    The text associated with Gawker’s ask suggests that they might have, in passing, considered that there are some ethical issues involved with paying drug dealers $200,000 for a video recording. Gawker’s sophisticated and nuanced ethical explanations include this thoughtful passage:

    Christ, That’s a Lot of Money.
    Yes, it is. But they’ve got the video! And it’s not all about greed, though of course most of it is. The owners of this video fear for their safety, and want enough money to pay for a chance to get out of Toronto and set up in a new town. Their fear is not entirely unwarranted. Rob Ford is a powerful if buffoonish man, and he was wrapped up in a drug scene that purportedly involved many other prominent Toronto figures.

    Rather than respond to this analysis, I’ll point you to Rosalind Robinson, who notes that the $200,000 Gawker proposes to pay drug dealers, is money that could go towards healing the city of Toronto, not harming it more. In a piece titled “Fuck You, Gawker“, she observes:

    Gawker wants to write these criminals a cheque for more money than most of us can imagine having access to in our lifetime. And not a cheque of their money – of *yours*.

    All you who bitch about taxes, who need public health care, who are on a waitlist to see a doctor, who work day in and day out, who work hard in crap jobs that don’t pay well – you, joe citizen, who have never broken a law in your life – they’re asking YOU to give this huge amount of money to a group of people who are a violent plague on my city, who risk the lives of both addicts and innocent bystanders on a regular basis.

    Thus far, Gawker’s campaign has raised roughly a third of its goal, almost $67,000 at last check. With eight days to go, it’s possible that Gawker will raise the money to purchase the video. Whether they publish the video, or get robbed at gunpoint by their business partners, they’ll surely get a good story out of the experience.

    Does raising money to purchase incriminating video represent a new milestone in crowdfunding? Is it a particularly ethically cloudy example of civic crowdfunding? Or just an attention grabbing stunt by Denton and crew?

    Writing in Forbes, Maureen Henderson sees this as the latest example of the rich and powerful using crowdfunding to fund projects they could fund through other means. Much as Warner Bros. could have funded a new Veronica Mars movie without $5.7m raised online, Gawker could probably negotiate a deal with their sources to purchase the video at a price they could cover from online ad revenue, as nothing sells like a political train wreck.

    What does the Crackstarter mean for online journalism and crowdfunding? When I began working at the Berkman Center ten years ago, John Palfrey offered a helpful rule of thumb for understanding how law worked in cyberspace: “If it’s illegal offline, it’s illegal online.” I’d suggest that the same applies in the realm of ethics: paying a source for a story is ethically suspect both offline and online.

    But there’s a dimension to crowdfunding payments to a source that complicates matters. Not only has Gawker’s editorial board made the decision that it’s ethically permissible to pay for the Rob Ford video – so have 2,896 donors, who’ve given their own money to see the mayor inhale. It’s a reasonable guess that few are Rob Ford supporters. This crowdfunding campaign lets Ford opponents vote with their pocketbooks to increase the chances Ford will be forced to resign.

    I predict Ford will resign before Gawker purchases and runs the video. But the implications of the campaign are still worth considering. When asked about the ethics of paying drug dealers for the video, Gawker can point to thousands of supporters who didn’t have ethical qualms about paying for the footage. And much as civic crowdfunding raises questions about whether only rich neighborhoods will fund new parks and civic infrastructure, crowdfunding to pay for videos is a trend that seems likely to favor high-visibility politicians with wealthy opponents over lower-attention scandals. Had the city of Bell, California needed to crowdfund evidence to indict city manager Robert Rizzo, it’s unlikely the poor, majority-Spanish speaking community would have ousted corrupt leaders.

    More than one online commenter has asked whether Gawker will share revenue from pageviews with their donors if they are able to purchase the Ford video. I’m more curious whether the donors will share the credit and the blame if crowdfunding checkbook journalism becomes the next big thing.

    My Hearts in Accra: Big stories and little details: what Charles Mann misses

    Charles Mann offers a big story in the latest issue of the Atlantic. It’s 11,000 words, and it’s based around an audacious premise: the end of energy scarcity. The peg for the story is Japan’s ongoing research on methane hydrate, an amalgam of natural gas trapped in water ice that occurs in oceans around the world. If methane hydrate can be harvested, Mann tell us, the global supply of hydrocarbon fuels are virtually unlimited. This, he argues, would have massive geopolitical and strategic implications, as the history of the twentieth century can be read in part through the lens of wealthy nations without oil seeking the black stuff in less developed lands. New forms of power might center on who can extract ice that burns like natural gas.

    The bulk of the Mann piece is a debate over “peak oil”, an idea put forward by M. King Hubbert in the 1950s, when he correctly predicted that US oil production would slow. Mann’s piece pits Hubbert against Vincent E. McKelvey, his boss at the US Geological Survey for years, who argued that energy supplies are virtually inexhaustible, though the costs to extract them increase as we use up the “easy” oil ready to burst above the surface. While Hubbert’s predictions about US oil production were initially right, Mann argues, the rise of techniques like horizontal drilling and hydrofracking means McKelvey is right in the long run. If we need methane hydrate – and Japan does, as it lacks other hydrocarbon resources – we’ll find a way to pay for it. The argument only looks like a contradiction, Mann argues, because it’s an argument between geologists on one side and social scientists on the other, and from the social scientists’ point of view, so long as there’s economic demands for hydrocarbons and the means to extract it, we should expect these fuels to keep flowing.

    There’s something very attractive about Mann’s argument. He writes as an insider who’s going to let you in on what the smart guys know that poor, dumb saps like me would never imagine. It’s a tone you hear a lot in Washington policy circles, a realpolitik view of the world that suggests you can entertain yourself with solar panels as long as you’d like, but the adults in the room are deciding who gets invaded for their petrochemical wealth and whose civilizations will collapse into a new Medieval period.

    Fortunately, there are some smart responses to Mann’s article, some vitriolic, some patient and thoughtful. (To the Atlantic’s credit, they published both Mann’s piece and Chris Nelder’s excellent response.) The essence of the responses is this: yes, there’s a whole lot of methane trapped in ice. Yes, if we could extract it, we’d have a whole lot of fuel that burns with half the carbon emissions of coal. But it’s unclear we can ever extract this at an affordable cost. (Canada just dropped out of the methane hydrate race, perhaps because they see extracting oil from tar sands as a more plausible source of hydrocarbons.)

    And even if we can, then what? Methane burns cleaner than coal, but we’d be still emitting massive amounts of CO2 in a methane-based economy.

    Mann’s not wholly unaware of the environmental implications of methane hydrate for global CO2 levels, but he frames his argument simply: natural gas may be bad, but coal’s worse. He acknowledges that we’ll need to move to renewables, but worries that we won’t be able to store power during periods of low solar or wind intensity. (These are real problems, but ones where a great deal of innovation are taking place, from high tech solutions like power-storing flywheels to effective low-tech solutions like pumped storage.)

    In his cursory consideration of how a near-infinite supply of methane might have negative environmental implications, Mann dedicates 2 paragraphs of his love-song to natural gas to a minor problem: methane is a potent greenhouse gas. When a gas well leaks more than 3%, it’s worse from a climate change perspective than burning coal. And it’s not just the wells – America has a long system of pipelines that carry natural gas, and no one is sure just how leaky those pipes are.

    Mann assures us that repairing the holes in natural gas pipelines (3,356 in Boston’s pipelines alone!), is “a task that developed nations can accomplish”. It’s not as hard as changing the laws of economics, Mann asserts, which ensure that cheap natural gas will help America recover its geopolitical might.

    So let’s talk for a moment about those laws of economics. If you’re a natural gas pipeline operator, losing 3% of your supplies in transit is a rounding error, so long as the gas dissipates and doesn’t present an explosion risk. My friend at the Department of Energy who made me aware of natural gas leakage noted that current requirements for pipeline inspection largely involve flying over vast lengths of cast-iron pipe and looking for browning of vegetation from leaking gas, a method that would be humorously inexact if the environmental consequences weren’t so serious.

    The laws of economics Mann is so focused on won’t force pipeline operators to replace their leaky infrastructure. Markets don’t do a very good job of correcting for “externalities” like climate impact, unless governments force them to. The modest success of cap and trade in the northeastern US under the Regional Greenhouse Gas Initiative required nine states to spend political capital and impose new requirements on industry, requirements that were politically unpopular, especially with Republican governors, like Mitt Romney who pulled Massachusetts out of the compact. (Deval Patrick pulled us back in, thankfully.)

    The ultimate point of Mann’s essay, I think, is that environmentalists have hoped that peak oil and the threat of losing our energy supplies would push developed economies to embrace zero-emissions power. That’s not going to happen, Mann argues – so long as we’re willing to pay for it, hydrocarbon energies are inexhaustible for the foreseeable future. What Mann doesn’t say is this: if we are worried about climate change, the market won’t solve things for us – we need governments to help us.

    That’s a deeply unsexy position to hold these days. Authors like Mann are fascinated by ways in which new technologies can save us from ourselves, discovering energy sources where none existed before, and developing even more profound technological solutions to handle the waste, like sequestering CO2 deep into the ocean, where it becomes trapped in water ice much as methane is trapped in methane hydrate. The problem is that these technologies cost billions to develop, and there are always cheaper alternatives that have externalities not calculated in market equations. The market for CO2 sequestration exists only if meaningful, widespread controls on greenhouse gas emissions come into play and create “artificial” incentives to invest in these technologies.

    My friend Ivan Krastev has a smart essay – a short TED ebook – called “In Mistrust We Trust: Can Democracy Survive When We Don’t Trust Our Leaders?” Of the several problems he identifies with contemporary democracies, one of the most challenging is this: “Economic decision-making is methodically being taken out of democratic politics as the spectrum of acceptable policy choices has been dramatically narrowed. Politics has been reduced to the art of adjusting to the imperatives of the market.”

    Krastev is largely focused on the ways European economies are wrestling with austerity, trying to provide social services to their populations but facing market pressures to be globally competitive. Voters become systematically disenfranchised because their popular will is held in check by what markets “want”.

    We face similar disenfranchisement in the US. A large majority of Americans see climate change as a serious problem. But carbon taxes remain largely off the table in the US, due to fears of reducing American competitiveness in a global market.

    Mann and the Atlantic missed a great opportunity here to celebrate what’s actually working: a slow conversion towards solar and wind in parts of the world where cap and trade and other emissions controls have been put into place. It’s not as sexy as burning ice, but it’s a future far more livable than the one Mann posits.

    My Hearts in Accra: Big stories and little details: what Charles Mann misses

    Charles Mann offers a big story in the latest issue of the Atlantic. It’s 11,000 words, and it’s based around an audacious premise: the end of energy scarcity. The peg for the story is Japan’s ongoing research on methane hydrate, an amalgam of natural gas trapped in water ice that occurs in oceans around the world. If methane hydrate can be harvested, Mann tell us, the global supply of hydrocarbon fuels are virtually unlimited. This, he argues, would have massive geopolitical and strategic implications, as the history of the twentieth century can be read in part through the lens of wealthy nations without oil seeking the black stuff in less developed lands. New forms of power might center on who can extract ice that burns like natural gas.

    The bulk of the Mann piece is a debate over “peak oil”, an idea put forward by M. King Hubbert in the 1950s, when he correctly predicted that US oil production would slow. Mann’s piece pits Hubbert against Vincent E. McKelvey, his boss at the US Geological Survey for years, who argued that energy supplies are virtually inexhaustible, though the costs to extract them increase as we use up the “easy” oil ready to burst above the surface. While Hubbert’s predictions about US oil production were initially right, Mann argues, the rise of techniques like horizontal drilling and hydrofracking means McKelvey is right in the long run. If we need methane hydrate – and Japan does, as it lacks other hydrocarbon resources – we’ll find a way to pay for it. The argument only looks like a contradiction, Mann argues, because it’s an argument between geologists on one side and social scientists on the other, and from the social scientists’ point of view, so long as there’s economic demands for hydrocarbons and the means to extract it, we should expect these fuels to keep flowing.

    There’s something very attractive about Mann’s argument. He writes as an insider who’s going to let you in on what the smart guys know that poor, dumb saps like me would never imagine. It’s a tone you hear a lot in Washington policy circles, a realpolitik view of the world that suggests you can entertain yourself with solar panels as long as you’d like, but the adults in the room are deciding who gets invaded for their petrochemical wealth and whose civilizations will collapse into a new Medieval period.

    Fortunately, there are some smart responses to Mann’s article, some vitriolic, some patient and thoughtful. (To the Atlantic’s credit, they published both Mann’s piece and Chris Nelder’s excellent response.) The essence of the responses is this: yes, there’s a whole lot of methane trapped in ice. Yes, if we could extract it, we’d have a whole lot of fuel that burns with half the carbon emissions of coal. But it’s unclear we can ever extract this at an affordable cost. (Canada just dropped out of the methane hydrate race, perhaps because they see extracting oil from tar sands as a more plausible source of hydrocarbons.)

    And even if we can, then what? Methane burns cleaner than coal, but we’d be still emitting massive amounts of CO2 in a methane-based economy.

    Mann’s not wholly unaware of the environmental implications of methane hydrate for global CO2 levels, but he frames his argument simply: natural gas may be bad, but coal’s worse. He acknowledges that we’ll need to move to renewables, but worries that we won’t be able to store power during periods of low solar or wind intensity. (These are real problems, but ones where a great deal of innovation are taking place, from high tech solutions like power-storing flywheels to effective low-tech solutions like pumped storage.)

    In his cursory consideration of how a near-infinite supply of methane might have negative environmental implications, Mann dedicates 2 paragraphs of his love-song to natural gas to a minor problem: methane is a potent greenhouse gas. When a gas well leaks more than 3%, it’s worse from a climate change perspective than burning coal. And it’s not just the wells – America has a long system of pipelines that carry natural gas, and no one is sure just how leaky those pipes are.

    Mann assures us that repairing the holes in natural gas pipelines (3,356 in Boston’s pipelines alone!), is “a task that developed nations can accomplish”. It’s not as hard as changing the laws of economics, Mann asserts, which ensure that cheap natural gas will help America recover its geopolitical might.

    So let’s talk for a moment about those laws of economics. If you’re a natural gas pipeline operator, losing 3% of your supplies in transit is a rounding error, so long as the gas dissipates and doesn’t present an explosion risk. My friend at the Department of Energy who made me aware of natural gas leakage noted that current requirements for pipeline inspection largely involve flying over vast lengths of cast-iron pipe and looking for browning of vegetation from leaking gas, a method that would be humorously inexact if the environmental consequences weren’t so serious.

    The laws of economics Mann is so focused on won’t force pipeline operators to replace their leaky infrastructure. Markets don’t do a very good job of correcting for “externalities” like climate impact, unless governments force them to. The modest success of cap and trade in the northeastern US under the Regional Greenhouse Gas Initiative required nine states to spend political capital and impose new requirements on industry, requirements that were politically unpopular, especially with Republican governors, like Mitt Romney who pulled Massachusetts out of the compact. (Deval Patrick pulled us back in, thankfully.)

    The ultimate point of Mann’s essay, I think, is that environmentalists have hoped that peak oil and the threat of losing our energy supplies would push developed economies to embrace zero-emissions power. That’s not going to happen, Mann argues – so long as we’re willing to pay for it, hydrocarbon energies are inexhaustible for the foreseeable future. What Mann doesn’t say is this: if we are worried about climate change, the market won’t solve things for us – we need governments to help us.

    That’s a deeply unsexy position to hold these days. Authors like Mann are fascinated by ways in which new technologies can save us from ourselves, discovering energy sources where none existed before, and developing even more profound technological solutions to handle the waste, like sequestering CO2 deep into the ocean, where it becomes trapped in water ice much as methane is trapped in methane hydrate. The problem is that these technologies cost billions to develop, and there are always cheaper alternatives that have externalities not calculated in market equations. The market for CO2 sequestration exists only if meaningful, widespread controls on greenhouse gas emissions come into play and create “artificial” incentives to invest in these technologies.

    My friend Ivan Krastev has a smart essay – a short TED ebook – called “In Mistrust We Trust: Can Democracy Survive When We Don’t Trust Our Leaders?” Of the several problems he identifies with contemporary democracies, one of the most challenging is this: “Economic decision-making is methodically being taken out of democratic politics as the spectrum of acceptable policy choices has been dramatically narrowed. Politics has been reduced to the art of adjusting to the imperatives of the market.”

    Krastev is largely focused on the ways European economies are wrestling with austerity, trying to provide social services to their populations but facing market pressures to be globally competitive. Voters become systematically disenfranchised because their popular will is held in check by what markets “want”.

    We face similar disenfranchisement in the US. A large majority of Americans see climate change as a serious problem. But carbon taxes remain largely off the table in the US, due to fears of reducing American competitiveness in a global market.

    Mann and the Atlantic missed a great opportunity here to celebrate what’s actually working: a slow conversion towards solar and wind in parts of the world where cap and trade and other emissions controls have been put into place. It’s not as sexy as burning ice, but it’s a future far more livable than the one Mann posits.