scholarly journals Give us a little social credit: to design or to discover personal ratings in the era of Big Data

2020 ◽  
Vol 16 (3) ◽  
pp. 369-387 ◽  
Author(s):  
Abigail Devereaux ◽  
Linan Peng
Keyword(s):  
Big Data ◽  
Credit Rating ◽  
Credit Ratings ◽  
Personal Characteristics ◽  
The State ◽  
State Council ◽  
Credit System ◽  
Personal Credit ◽  
Social Credit ◽  
Financial Credit

AbstractIn 2014, the State Council of the Chinese Communist Party announced the institution of a social credit system by 2020, a follow-up to a similar statement on the creation of a social credit system issued by the State Council in 2007. Social credit ratings of the type being developed by the State Council in partnership with Chinese companies go beyond existing financial credit ratings in an attempt to project less-tangible personal characteristics like trustworthiness, criminal tendencies, and group loyalty onto a single scale. The emergence of personal credit ratings is enabled by Big Data, automated decision-making processes, machine learning, and facial recognition technology. It is quite likely that various kinds of personal and social credit ratings shall become reality in the near future. We explore China's version of its social credit system so far, compare the welfare and epistemological qualities of an ecology of personal ratings emanating from polycentric sources versus a social credit rating, and discuss whether a social credit system in an ideologically driven state is less a tool to maximize social welfare through trustworthiness provision and more a method of preventing and punishing deviance from a set of party-held ideological values.

scholarly journals Transforming Society for the Better?

MaRBLe ◽  
2019 ◽  
Vol 2 ◽  
Author(s):  
Nadja Aldendorff
Keyword(s):  
Moral Virtue ◽  
The State ◽  
Chinese Society ◽  
State Council ◽  
Credit System ◽  
The West ◽  
Republic Of China ◽  
Social Credit ◽  
The Government ◽  
Social Sorting

In 2014, the State Council of the People’s Republic of China released a document that called for the construction of a nationwide Social Credit System (SCS) with the goal to encourage sincerity and punish insincerity. The system uses blacklists that citizens land on for various cases of misbehavior, ranging from failing to pay a fine to being caught Jaywalking. This research explains the design process behind the SCS and in particular why many Chinese citizens are embracing this form of surveillance. It focuses on three topics to answer this question: the historical roots underlying the system, the perceived lack of trust in Chinese society and the comparison with concepts from surveillance theories developed in the West. From the analysis, following conclusions could be drawn: Historically, the state has often acted as a promoter and enforcer of moral virtue. The SCS fits perfectly into this tradition. The most prominent reason for the positive Chinese reaction is the lack of institutions in China that promote trust between citizens and businesses. There is a severe trust deficit which the government had to find a solution for. Regarding surveillance theory, Foucault’s concept of ‘panopticism’ shows similarities with the SCS and underlines its effectiveness in changing and steering people’s behavior while Lyon’s notion of ‘social sorting’ is used to demonstrate the potential dangers of the Chinese system.

scholarly journals Transforming Society for the Better?

MaRBLe ◽  
2019 ◽  
Vol 2 ◽  
Author(s):  
Nadja Aldendorff
Keyword(s):  
Moral Virtue ◽  
The State ◽  
Chinese Society ◽  
State Council ◽  
Credit System ◽  
The West ◽  
Republic Of China ◽  
Social Credit ◽  
The Government ◽  
Social Sorting

In 2014, the State Council of the People’s Republic of China released a document that called for the construction of a nationwide Social Credit System (SCS) with the goal to encourage sincerity and punish insincerity. The system uses blacklists that citizens land on for various cases of misbehavior, ranging from failing to pay a fine to being caught Jaywalking. This research explains the design process behind the SCS and in particular why many Chinese citizens are embracing this form of surveillance. It focuses on three topics to answer this question: the historical roots underlying the system, the perceived lack of trust in Chinese society and the comparison with concepts from surveillance theories developed in the West. From the analysis, following conclusions could be drawn: Historically, the state has often acted as a promoter and enforcer of moral virtue. The SCS fits perfectly into this tradition. The most prominent reason for the positive Chinese reaction is the lack of institutions in China that promote trust between citizens and businesses. There is a severe trust deficit which the government had to find a solution for. Regarding surveillance theory, Foucault’s concept of ‘panopticism’ shows similarities with the SCS and underlines its effectiveness in changing and steering people’s behavior while Lyon’s notion of ‘social sorting’ is used to demonstrate the potential dangers of the Chinese system.

scholarly journals From Bulletin Boards to Big Data

2021 ◽  
Vol 50 (1) ◽  
pp. 39-62
Author(s):  
Christian Göbel ◽  
Jie Li
Keyword(s):  
Big Data ◽  
New Technologies ◽  
Central Government ◽  
Developmental Trajectory ◽  
Credit System ◽  
Feedback Systems ◽  
Social Credit ◽  
Bulletin Boards ◽  
Local Decision ◽  
Set Up

Why do Chinese governments at various levels set up public complaint websites where citizen petitions and government responses can be reviewed by the general public? We argue that it is the result of two factors: strong signals sent by the central government to improve governance, and the availability of new technologies to promote policy innovation. To impress their superiors, local officials adopted newly available commercial technology to innovate existing citizen feedback systems, which presented a developmental trajectory from “openness,” “integration,” to “big data-driven prediction.” Drawing on policy documents and interviews with local politicians and administrators, we provide a chronological perspective of how technical development, central government’s signals and local decision-making have interacted in the past two decades to bring forth today’s public complaint websites. The contingent and non-teleological nature of this development can also be applied to other policies such as the social credit system.

The gamification of trust: the case of China’s “social credit”

2018 ◽  
Vol 36 (1) ◽  
pp. 93-107 ◽  
Author(s):  
Zahy Ramadan
Keyword(s):  
Conceptual Framework ◽  
Tax Evasion ◽  
Credit Rating ◽  
Rating System ◽  
Credit System ◽  
Content Type ◽  
Social Credit ◽  
Chinese Business ◽  
Area Of Interest ◽  
New Business

Purpose China is establishing a social credit rating system with the aim to score the trust level of citizens. The scores will be based on an integrated database that includes a vast range of information sources, rating aspects like professional conduct, corruption, type of products bought, peers’ own scores and tax evasion. While this form of gamification is expected to have dire consequences on brands and consumers alike, the literature in that particular area of interest remains non-existent. The paper aims to discuss these issues. Design/methodology/approach A conceptual framework is suggested that highlights early on the risks and implications on brands and companies operating in that particular upcoming landscape. Findings The gamification of trust that the social credit system focuses on presents potential risks on brand and consumer relationships. This in turn will affect brand sustainability vis-à-vis the expected drastic changes in the Chinese business landscape. This study suggests the strategies to follow which will be of high interest to companies, consumers, as well as to the Chinese authorities during and after implementation stage. Originality/value This paper is amongst the first to discuss the potential effects of the Chinese social credit rating system on brands. The conceptual framework fills a sizeable gap in the literature and pioneers the discussion on potential dilemmas brands will be faced with within this new business landscape.

scholarly journals Unpacking China’s Social Credit System: Informatization, Regulatory Framework, and Market Dynamics

2020 ◽  
Vol 45 (1) ◽  
Author(s):  
Lianrui Jia
Keyword(s):  
Big Data ◽  
Population Analysis ◽  
Self Regulation ◽  
The Self ◽  
Internet Technology ◽  
Credit System ◽  
Social Credit ◽  
Internet Users ◽  
Regulatory Data

Background  China, with a population of 802 million internet users, a handful of the world’s largest internet companies, and an unfolding Social Credit System (SCS), is often criticized for exerting its data power to surveil and discipline its population. Analysis  This article first provides a historical and situated analysis of the SCS as a part of China’s informatization and datafication processes. It then highlights problems in the current legal and regulatory data-protection framework and discusses the self-regulation practices of the private sector. Conclusions and implications  Overall, this case study provides a historical and contextualized understanding of China’s SCS and related big data developments and assesses the implications of these development for the globalizing Chinese internet, technology companies and the Chinese public.Contexte  Avec une population de 802 million d’utilisateurs d’Internet, avec quelques des plus grandes sociétés Internet du monde, et une Système de Crédit Sociale (SCS) en pleine développement, La Chine est souvent critiqué pour utilizer son pouvoir de données pour surveiller et discipliner sa population. Analyse  Tout d’abord, cet article fournit une analyse historique et située de la SCS comme partie des processus de informatisation et datafication de la Chine. Ensuite, il souligne les problèmes du cadre juridique et régulatoire actuel en matière de protection des données et examine les pratiques d’autorégulation du secteur privé.Conclusions et implications  En global, cette étude de cas fournit une compréhension historique et contextualisée du SCS chinois et de l’évolution du Big Data, et évalue les implications de ce développement pour l’Internet chinois en pleine mondialisation, les entreprises technologiques et le public chinois.

When Bentham Meets Big Data in Times of COVID-19

2022 ◽  
pp. 168-186
Author(s):  
Filiz Resuloğlu
Keyword(s):  
Big Data ◽  
Crisis Management ◽  
High Time ◽  
Risk Of Infection ◽  
Credit System ◽  
New Normal ◽  
Social Credit ◽  
Online Platforms ◽  
Governance Model ◽  
Short Time

2020 has been marked by a ‘once in a century crisis' that influenced the dynamics of the globe deeply. Soon after the COVID-19 pandemic, most daily practices had to be transferred to online platforms as humanity was supposed to adopt social and physical distancing to avoid the risk of infection. Even technologically illiterate people were abruptly charged with online tasks as part of their jobs or responsibilities. It suddenly turned out to be high time to go online and have a digital identity to keep pace with the new normal life. Thus, internet has taken its place among the basic needs more specifically than before. This chapter is about the technology-driven supervisory social credit system which is said to have contributed to Chinese state to manage the COVID-19 crisis in a short time. Exploring the foundations, motives, and highlights of the system, this chapter proposes a framework for a potential digital governance model coined as the Cyber Leviathan and bears importance in terms of crisis management.

Challenging Western Legal Orientalism

2021 ◽  
pp. 1-40
Author(s):  
Marta Infantino ◽  
Weiwei Wang
Keyword(s):  
Legal Framework ◽  
State Council ◽  
Credit System ◽  
The West ◽  
Chinese Cities ◽  
Chinese Law ◽  
Social Credit ◽  
Pilot Programs ◽  
Set Up ◽  
Measurement Practices

Abstract In 2014 the Chinese State Council announced the establishment of a nationwide comprehensive social credit system. Western narratives often describe the initiative as a technologically enhanced tool of autocratic control for scoring people. Yet, as the paper aims to show, similar accounts are tainted by several misunderstandings which perpetuate Western orientalist postures towards Chinese law.For the purpose of comparatively assessing the Chinese social credit system, the paper analyses the pilot programs set up to monitor people and enterprises’ behaviour by twenty-eight Chinese cities. The analysis will demonstrate that these pilot programs rely on low-tech methodologies, have limited strings attached, and are based on a relatively transparent legal framework. From a comparative perspective, our findings suggest that Chinese cities’ experiments raise problems that are similar to those posed by measurement practices widely employed in the West.

scholarly journals Possibilities of Applying the Chinese Social Credit System to Combat Terrorism

Politeja ◽  
2021 ◽  
Vol 17 (6(69)) ◽  
pp. 183-196
Author(s):  
Dominika Dziwisz
Keyword(s):  
Security Policy ◽  
The State ◽  
Assessment System ◽  
Data Sets ◽  
Negative Consequences ◽  
Credit System ◽  
Multiple Sources ◽  
Public And Private ◽  
Social Credit ◽  
The Social

2011 saw the start of the pilot phase of the Social Credit System. The societies of democratic states interpreted it as an extreme example of human rights violation. In turn, what is usually forgotten is that the SCS is not the first citizen assessment system, because similar systems have been successfully functioning since 1960s in democratic countries. Scientific analyses of SCS operations are usually limited to its negative consequences. There are fewer attempts by governments of democratic states to assess the use of elements of SCS and algorithmic data analysis, for example in order to increase the level of security of citizens. As a result, this article presents the research hypothesis that elements of the SCS may be successfully applied also in democratic states for the purpose of more effective combating of terrorism. With modern methods of analyzing Big Data sets, it is possible, for example, to accelerate recognition of terrorist networks, support identification of sources of radicalization in online communities and increase the effectiveness of anti-terrorist strategies in order to protect citizens against contemporary terrorist threats. For such a system to be as effective as possible, it should take over some assumptions of the SCS which are explained in this article: Firstly, it should be centralized and controlled by the state. Secondly, the information obtained and processed should be used solely for the purposes of the state security policy, i.e. in the scope smaller than in the case of China. Thirdly, the data should be obtained from multiple sources, public and private ones, in order to increase the accuracy of predictions. Fourthly, the violation of the principles of social coexistence might result in specific penalties, and compliance therewith – in rewards.

scholarly journals A Dependent Hidden Markov Model of Credit Quality

2012 ◽  
Vol 2012 ◽  
pp. 1-13 ◽  
Author(s):  
Małgorzata Wiktoria Korolkiewicz
Keyword(s):  
Markov Chain ◽  
Markov Model ◽  
Hidden Markov Model ◽  
Credit Rating ◽  
Hidden Markov ◽  
Credit Ratings ◽  
The State ◽  
Credit Quality ◽  
The Em Algorithm ◽  
Rating Process

We propose a dependent hidden Markov model of credit quality. We suppose that the "true" credit quality is not observed directly but only through noisy observations given by posted credit ratings. The model is formulated in discrete time with a Markov chain observed in martingale noise, where "noise" terms of the state and observation processes are possibly dependent. The model provides estimates for the state of the Markov chain governing the evolution of the credit rating process and the parameters of the model, where the latter are estimated using the EM algorithm. The dependent dynamics allow for the so-called "rating momentum" discussed in the credit literature and also provide a convenient test of independence between the state and observation dynamics.

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